STATE BOARD OF ACCOUNTS 2010 AUDIT DINGS PROSECUTOR LEGAL EXPENSES AND COUNCIL'S DONATIONS OF RIVERBOAT MONEY
PROSECUTOR:
TO: THE OFFICIALS OF DEARBORN COUNTY
We have audited the records of the
County Prosecuting Attorney for the period from January 1,
2010 to December 31, 2010, and certify
that the records and accountability for cash and other assets are
satisfactory to the best of our
knowledge and belief, except as stated in the Audit Result and Comment.
The financial transactions of this
office are reflected in the Annual Report of Dearborn County for the year
2010.
STATE BOARD OF ACCOUNTS
July 27, 2011
COUNTY PROSECUTING ATTORNEY
DEARBORN COUNTY
AUDIT RESULT AND COMMENT
LEGAL SERVICES
RELATED TO DISCIPLINARY PROCEEDINGS
A payment to Bose, McKinney, and Evans
in the amount of $23,828.53 was made on December
23, 2010. The invoice presented for
examination showed the payment was for legal services in connection
with "Matter 022105-0001 2009
Disciplinary Grievance." The legal services were on behalf of Frank
Aaron Negangard, Prosecuting Attorney,
in connection with a disciplinary grievance filed with the
Disciplinary Commission of the Supreme
Court of Indiana.
No Home Rule Ordinance providing the
conditions authorizing the County to pay the cost of legal
services in connection with a
professional disciplinary matter was presented for audit.
Indiana Code 36-1-3-6 states in part:
"(a) If there is a constitutional
or statutory provision requiring a specific manner for exercising
a power, a unit wanting to exercise
the power must do so in that manner.
(b) If there is no constitutional or
statutory provision requiring a specific manner for
exercising a power, a unit wanting to
exercise the power must either:
(1) if the unit is a county or
municipality, adopt an ordinance prescribing a specific
manner for exercising the power; . . .
(3) comply with a statutory provision
permitting a specific manner for exercising the
power.
(c) An ordinance under subsection
(b)(1) must be adopted as follows:
(1) In a municipality, by the
legislative body of the municipality.
(2) In a county subject to IC 36-2-3.5
or IC 36-3-1, by the legislative body of the
county.
(3) In any other county, by the
executive of the county. . . ."
Payments or transfers which are not
authorized by statute, ordinance, resolution, or court order
must be reimbursed or transferred to
the proper fund. (Accounting and Uniform Compliance Guidelines
Manual for Counties of Indiana,
Chapter 1)
Public funds may not be used to pay
for personal items or for expenses which do not relate to the
functions and purposes of the
governmental unit. Any personal expenses paid by the governmental entity
may be the personal obligation of the
responsible official or employee. (Accounting and Uniform
Compliance Guidelines Manual for
Counties of Indiana, Chapter 1)
County officials will be requested on
the next audit to present for audit a Home Rule Ordinance
providing a specific manner
authorizing the payment of legal services in connection with a job related
professional disciplinary matter.
COUNTY PROSECUTING ATTORNEY
DEARBORN COUNTY
EXIT CONFERENCE
The contents of this report were
discussed on July 27, 2011, with Frank Aaron Negangard,
Prosecuting Attorney.
( Note- this was also in the Council and the Commissioner's audit reports and discussed with them at their respective exit conferences 3 months later in October 2011.)
COUNCIL:
COUNTY COUNCIL
DEARBORN COUNTY
AUDIT RESULT(S) AND COMMENT(S)
DONATIONS OF
RIVERBOAT ADMISSION TAX FUNDS
The County receives admission taxes
derived from a riverboat gaming facility. In 2010, the
County gave $1,864,893 of riverboat
admissions tax to various governmental entities pursuant to revenue
sharing agreements. The County also
donated $372,978 of riverboat admissions taxes to various not-for profit
organizations.
Indiana Code 4-33-12 (Admission Taxes)
does not contain provisions authorizing a county to
enter into agreements with units of
local government to share a County's share of admission taxes.
Governmental funds should not be
donated or given to other organizations, individuals, or governmental
units unless specifically authorized
by statute. (Accounting and Uniform Compliance Guidelines
Manual for Counties of Indiana,
Chapter 1)
A similar comment was reported in the
prior Reports B31158, B32742, B34942, and B37354.
DONATIONS OF
RIVERBOAT REVENUE SHARING FUNDS
The County receives riverboat revenue
sharing funds from the City of Lawrenceburg. In 2010,
the County donated $189,849 of
riverboat funds to various not-for-profit organizations
Indiana Code 36-1-8-9(a) states:
"Each unit that receives:
(1) tax revenue under IC 4-33-12-6 or
IC 4-33-13;
(2) revenue under an agreement to
share the tax revenue receive under IC 4-33-12 or IC
4- 3-13 by another unit; or
(3) revenue under a development
agreement (as defined in section 9.5 of this chapter);
may establish a riverboat fund. Money
in the fund may be used for any legal or corporate
purpose of the unit."
This statute does not authorize a
county to make donations from the fund.
Governmental funds should not be
donated or given to other organizations, individuals, or governmental
units unless specifically authorized
by statute. (Accounting and Uniform Compliance Guidelines
Manual for Counties in Indiana,
Chapter 1)
A similar comment was reported in the
prior Reports B31158, B32742, B34942, and B37354.
COUNTY COUNCIL
DEARBORN COUNTY
EXIT CONFERENCE
The contents of this report were
discussed on June 20, 2011, with Maynard Barrett, Vice
President of the County Council, and Gayle L. Pennington,
Auditor
