Tuesday, May 08, 2012

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

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