Indiana government accounting principles

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Indiana does not have a state controller, but rather fiscal duties are split among the Office of Management & Budget (OMB), State Auditor and State Treasurer.[1]

Ryan Kitchell has been Indiana’s OMB Director since 2007.[2] The Legislature, at the Governor's request, created a new organization within state government called the Office of Management and Budget ("OMB"). The OMB brings together the financial and auditing functions of Indiana. The Director of the OMB is the state's CFO.[3]

Tim Berry has been Indiana State Auditor since 2007. The Indiana State Auditor is responsible for:[4]

  • Accounting for all of the State's funds
  • Overseeing and disburse county, city, town, and school tax distributions
  • Paying the State's bills
  • Paying the State's employees
  • Administrating Indiana’s Deferred Compensation Plan.

In a report published in May 2012, The Institute for Truth in Accounting (IFTA) rated Indiana “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 23 states timely, 24 states tardy, and 3 states excessively tardy. IFTA does not consider the state's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[5] Indiana’s CAFRs are published online by the Indiana State Auditor.[6]

Accounting transparency checklist

Truth 2.png

Comprehensive Y
600px-Yes check.png
Balanced budget Y
600px-Yes check.png
Timeliness P
Usability P

The good

  • The website has Comprehensive Annual Financial Reports (CAFR) dating back to 1999.[7]
  • An independent auditor’s report is published on page 3 of the document.[8]
  • It provides supplements to the budget workup, such as non-major Governmental funds, starting on page 121 of the document.
  • The budget is posted using organized and consistent methods of financial reporting.
  • Indiana law requires a balanced budget, but it allows a deficit.[9]
  • It includes all costs incurred by the government, including future liabilities, starting on page 92 of the document.
  • The CAFR compares estimated and actual budgetary numbers, such as on page 112 of the document.
  • The Indiana office was timely in submitting the budget.

The bad

  • The CAFR is posted in PDF format, so it’s not searchable online.

Richard Mourdock has been Indiana State Treasurer since 2007. The treasurer of state is responsible for the safekeeping and investment of moneys and securities paid into the state treasury. (Indiana Code 4-8.1-2-1)[10]

"These ratings reaffirm that Indiana is in far better fiscal shape than many other states because we continue to carefully manage our spending and maintain a reserve," said Ryan Kitchell, director of the Office of Management and Budget.[11]

External links