State Board of Accounts
Township Annual Meeting
September 2013
Contact Us
317-232-2520
State Board of Accounts
302 West Washington Street
Room E418
Indianapolis, IN 46204-2765
Tammy L. Baker, CPA, School Supervisor
tbaker@sboa.in.gov
Ryan Preston, School Supervisor
rpreston@sboa.in.gov
State Board of Accounts Website
www.in.gov/sboa
Township Manual
Regulatory Reporting Manual
Township Bulletins
Filed Audit Reports
Meeting Materials
Report Filings
Annual
Report & TA-7
100R
• 1004 of 1006
townships have filed
2012 Annual Report
• 1004 of 1006
townships have filed
2012 100R
TA-7 (Township Assistance Annual
Statistical Report)
• SBOA compiles a statewide statistical report from
each TA-7 filed
• The statewide statistical report is filed with the
legislative services agency before July 1 each year
and may be viewed at:
http://www.in.gov/legislative/igareports/agency/sbac.html
• SBOA required to forward copy of individual TA-7s
and statewide statistical report to DLGF and
Division of Family Resources
Annual Financial Report, TA-7 and 100-R
• Failure to file report(s) in a timely manner may
result in removal from office
• Reminder email from Gateway system
• Certified letter from SBOA with subpoena to
appear in SBOA office
• If there is non-compliance with the subpoena, the
matter will be referred to the Attorney General in
order for him to file an action in circuit court as
provided in IC 5-11-1-9(g)
Nepotism and Contracting Policies
• The township board shall adopt a
nepotism policy that includes, at a
minimum, the requirements set forth in
IC 36-1-20.2 and adopt a contracting
policy that includes, at a minimum, the
requirements set forth in IC 36-1-21.
Policies may include requirements that
are more stringent or detailed.
Nepotism and Contracting Policies
• There are no SBOA prescribed forms for the
contracting or nepotism policies. However,
some associations have created templates for
their members.
• Townships are not required, and should not,
send a copy of the policies to SBOA. They
should be retained locally.
• There is no requirement that new policies be
adopted annually.
Nepotism and Contracting Policies
• If a township has not implemented a nepotism
and/or contracting policy, DLGF may not
approve:
(1) the unit's budget; or
(2) any additional appropriations for the unit;
for the ensuing calendar year until the state
board of accounts certifies to the department
of local government finance that the unit is in
compliance.
Nepotism and Contracting Policies
• Townships must answer unit questions
regarding whether they have implemented a
nepotism policy and a contracting policy as
defined in IC 36-1-20.2 and IC 36-1-21 when
completing the 100R.
• 170 townships indicated they had not
implemented a nepotism policy and 274
townships indicated that they had not
implemented a contracting policy on the 2012
100R.
Nepotism and Contracting Policies
ting a nepotism or contracting policy on the 100R
• If the township board implements a nepotism
policy after the trustee has completed the Form
100R, the trustee should send an email to
annualreports@sboa.in.gov and ask for the
report to be unlocked.
• After the report is unlocked, the trustee should go
back into the report and indicate that a policy has
been adopted. The trustee must submit the report
again in order for this change to be effective.
Nepotism and Contracting Certifications
• In addition to the polices required, each
elected officer of the unit (trustee and
township board members) shall annually
certify in writing, subject to the penalties
for perjury, that the officer has not violated
IC 36-1-20.2 and IC 36-1-21.
Nepotism and Contracting Certifications
• An officer shall submit the certification to
the executive of the unit (trustee) not later
than December 31 of each year.
• There are no SBOA prescribed forms for
these certifications. However, some
associations have created templates for
their members.
Nepotism (IC 36-1-20.2)
• Any individual that was employed by a
"unit" on July 1, 2012, is not subject to IC
36-1-20.2 and any individual hired on or
after July 2, 2012, is subject IC 36-1-20.2.
Nepotism (IC 36-1-20.2)
• If the township trustee's office is located in the
township trustee's personal residence, unless the
nepotism policy adopted provides otherwise, the
township trustee may hire one (1) employee who is
a relative. The employee:
(1) may be hired to work only in the township
trustee's office;
(2) may be in the township trustee's direct
line of supervision; and
(3) may not receive total salary, benefits, and
compensation that exceed five thousand
dollars ($5,000) per year.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-4)
• An individual who is serving as a volunteer firefighter
for a volunteer fire department or a fire department
that provides fire protection services to a unit:
(1) under a contract, excluding a mutual aid
agreement; or
(2) as the unit's fire department;
may not assume or hold an elected office (township
board member or trustee) of a unit that receives fire
protection services from the department in which the
volunteer firefighter serves.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-4)
• An individual who:
(1) is an employee of a unit, serving as a fulltime, paid firefighter; or
(2) serves as a volunteer firefighter;
in a department that provides fire protection services
to more than one (1) unit, excluding fire protection
services provided under mutual aid agreements, may
not assume or hold an elected office of any unit that
receives fire protection services from the
department.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-5)
• An individual is considered to have
resigned as a government employee when
the individual assumes an elected office of
the unit that employs the individual.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-6)
IC 3-5-9 does not prohibit:
(1) a government employee from assuming or holding an
elected office of a unit other than the unit that employs the
government employee;
(2) a full-time, paid firefighter or volunteer firefighter from
assuming or holding an elected office of a unit other than a unit
that receives fire protection services from the department in
which the volunteer firefighter serves; or
(3) an individual who assumes or holds an elected office from
also being appointed to and serving on a board, commission, or
committee of the unit.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-7)
• A volunteer firefighter who assumes or holds an
elected office on January 1, 2013, may continue to
hold the elected office and serve as a volunteer
firefighter; and
• A government employee who assumes or holds an
elected office on January 1, 2013, may continue to
hold the elected office and be employed as a
government employee;
until the term of the elected office that the
volunteer firefighter or government employee is
serving on January 1, 2013, expires.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-7)
• After the expiration of the term of the
elected office that the volunteer firefighter
is serving on January 1, 2013, the volunteer
firefighter is subject to IC 3-5-9-4 with
respect to serving as a volunteer firefighter
and assuming or holding an elected office
of the unit that receives fire protection
services from the department in which the
volunteer firefighter serves.
Government Employees and Volunteer
Firefighters Holding Office (IC 3-5-9-7)
• After the expiration of the term of the
elected office that the government
employee is serving on January 1, 2013, the
government employee is subject to IC 3-59-5 with respect to assuming or holding an
elected office and being employed by the
unit that employs the government
employee.
Miscellaneous
Indiana Codes
for Townships
Township Board Pay (IC 36-6-8-13)
A member of the township board who holds office on December 31
of any year is entitled to his salary on that day.
A member of the township board who leaves office before
December 31 of any year is entitled to his salary on the day he
leaves office.
** A W-2 must be issued for all salary paid to township board
members. Elected officials are employees for income tax purposes
under the section 3401(c) provision that applies to public officials.
They are subject to a degree of control that typically makes them
employees under the common law, and are subject to social
security and Medicare taxes.
Annual meeting; report of receipts and expenditures
of preceding calendar year; failure to file; penalty
(IC 36-6-4-12)
Within ten days after the township board’s action under IC 36-66-9, the trustee shall file a copy of the report and its
accompanying vouchers, as adopted by the township board, in
the county auditor's office.
The township board may, for the benefit of the township, bring a
civil action against the trustee if the trustee fails to file the report
within ten days after the township board’s action. The township
board may recover five dollars ($5) for each day beyond the time
limit for filing the report, until the report is filed.
Office Rent & Telephone Expenses (IC 36-6-8-3)
The annual appropriations to a township trustee for the
expenses of renting an office and telephone and telegraph
expenses must, as nearly as is possible, be equal to the
actual cost of those items.
If the township trustee uses a part of the trustee's residence
for an office, the township board shall appropriate a
reasonable sum for that office space.
Mileage Reimbursement (IC 36-6-8-3)
The township trustee is entitled to a sum for mileage in the
performance of official duties equal to the sum per mile paid to
state officers and employees. **
The township trustee is not entitled a sum for mileage when the
township trustee uses a township vehicle in the performance of
official duties.
** Current rate for state officers and employees is $0.44.
Mileage Claim Form Number 101 shall be properly completed,
listing dates of authorized travel, details of travel, miles traveled,
nature of business, etc., for reimbursements for mileage before
payment is made.
Vacations and Other Benefits for Township Employees
(IC 5-10-6-1)
Employees of townships may be granted a vacation with pay, sick
leave, paid holidays, and other similar benefits by resolution of the
township board.
We have received questions concerning the authority (or need) for
elected officials to be included in the township's vacation leave, sick
leave, death leave, or other leave policies.
Our audit position is that an elected official's compensation goes with
the office. This means that the elected official receives his (or her)
salary as long as the office to which the official was elected performs
the duties and responsibilities of this office. Whether the elected
official personally does the work, whether the elected official personally
maintains office hours, or whether the elected official shows up at the
office are matters to be determined locally and have no bearing on the
trustee’s right to be compensated.
Vacations and Other Benefits for Township Employees
(IC 5-10-6-1)
Keep in mind our audit position relates only to elected officials. We
recommend the township attorney provide specific written guidance that
conflicts do not exist with IC 35-44.1-1-3, Ghost Employment.
IC 35-44.1-1-3, prohibits payment to other township employees if they did
not properly perform township duties assigned and maintain hours as
directed.
In those few instances where elected officials choose to be included in an
employee benefit policy (and were included in the authorizing resolution),
the officials must maintain proper attendance records (the same as all
other township employees) which clearly disclose days worked, days
missed, type of leave taken, etc.
We are of the audit position the requirement for keeping proper attendance
records would require that these decisions should not be made just prior
to the close of the official's term.
Advance Payment of Salaries Prohibited
(IC 5-7-3-1)
Public officers may not draw or receive their salaries in advance.
Important Due Dates
Filing of Annual Personnel Report (100-R) with SBOA (IC 5-11-13-1)
Meeting of township board to elect officers (IC 36-6-6-7)
Meeting of township board to organize as board of finance (IC 5-13-7-6)
Meeting of township board to approve Financial Report (IC 36-6-6-9)
Filing of Financial Report and vouchers in county auditor’s office (IC 36-6-4-12)
Publishing of Financial Report (IC 36-6-4-13)
Filing of Annual Financial Report (AFR) and TA-7 with SBOA (IC 5-11-1-4)
Filing list of township employees with county treasurer (IC 6-1.1-22-14)
Posting of statement of indebtedness of township (IC 36-6-4-10)
Filing list of township employees with county treasurer (IC 6-1.1-22-14)
Filing of certification to the trustee that elected officials (board members
and trustee) have not violated nepotism policy (IC 36-1-20.2-16)
Filing of certification to the trustee that elected officials (board members
and trustee) have not violated contracting policy (IC 36-1-21-6)
January 31 (during the Month of January)
On the first Tuesday after the first Monday in January
After the first Monday and on or before the last day of January
On or before the third Tuesday after the first Monday in February ***
Within 10 day after the meeting to approve the Annual Financial Report
Within 4 weeks after the third Tuesday following the first Monday in January
March 1** (no later than 60 days after the close of the fiscal year)
June 1 (On or before June 1 of each year)****
First Monday in August
December 1 (On or before December 1 of each year)****
December 31
December 31
** February 29 in leap years
*** Prior to 7/1/13 the board was to meet on or before the third Tuesday after the first Monday in January
**** Or more frequently if the county legislative body adopts an ordinance requiring additional certifications
For dates regarding the adoption of the township budget please contact your local DLGF representative.
Financial Assistance to
Non-Governmental
Entities
Financial Assistance to
Non-Governmental Entities
Amounts disbursed to non-governmental entities
must be reported in the Annual Report.
Common township disbursements to nongovernmental entities include:
Volunteer Fire Departments
Emergency Medical Services
Financial Assistance to
Non-Governmental Entities
Consider including language in contracts with
non-governmental entities that require them to file
the Entity Annual Report with the State Board of
Accounts.
The Entity Annual Report is used to determine the
audit requirements of non-governmental entities.
Financial Assistance to
Non-Governmental Entities
As of May 10, 2011, IC 5-11-1-9 requires an
organization-wide audit of an entity when the public
funds disbursed by that organization are $200,000 or
more and equal to or greater than 50% of their total
disbursements for the period.
Indiana Code
Township Board
IC 36-6-6
Township Board & Term of Office
IC 36-6-6-2
The township board shall consist of three members*
Term of office is 4 years beginning January 1 after
election until a successor is elected
*Seven members for a board in a county containing a consolidated city
Merged townships have special provisions contained in IC 36-6-6-2.1
Township Board Residency Requirement
IC 36-6-6-3
A member of the Board must reside within the
township.
If a member of the Board ceases to be a resident of
the township, the office becomes vacant.
Township Board Quorum/Adjournment
IC 36-6-6-4
Two (2) members of the Board constitute a quorum.*
*4 members for a Board in a county containing a consolidated city
A majority of members for merged townships
IC 36-6-6-5
A meeting of the Board may be adjourned from day to
day until its business is completed.
Appearance at meetings by taxpayer
IC 36-6-6-6
A taxpayer of the township may appear at any meeting of
the Board and be heard as to:
(1) an estimate of expenditures;
(2) a proposed levy of taxes;
(3) the approval of the trustee's annual report; or
(4) any other matter being considered by the
legislative body.
Township Board Meeting; Election of
chairman and secretary
IC 36-6-6-7
The Board shall meet at the office of the Trustee on
the first Tuesday after the first Monday in January of
each year.
At this meeting the Board shall elect one member as
chairman for that year and one member as secretary
for that year.
Township Board; Special Meeting
IC 36-6-6-7
If a newly elected Board holds a special meeting before
the first Tuesday after the first Monday in the January
following its election, it shall elect a chairman and a
secretary before conducting any other business.
The chairman and secretary elected at the special
meeting retain those positions until the first Tuesday
after the first Monday in January of the year following
the special meeting.
Township Board; Recording of proceedings
IC 36-6-6-8
The Board shall keep a permanent record of its proceedings
in a book furnished by the trustee.
The secretary of the Board shall, under the direction of the
Board, record the minutes of the proceedings of each meeting
in full and shall provide copies of the minutes to each
member of the Board before the next meeting is convened.
After the minutes are approved by the Board, the secretary of
the Board shall place the minutes in the permanent record
book. The chairman of the Board shall retain the record in his
custody.
Township Board; Meeting for consideration and
approval of annual report of trustee; disposition of
funds
IC 36-6-6-9
The Board shall meet on or before the third Tuesday after the first
Monday in February** of each year. At this meeting it shall consider and
approve, in whole or in part, the annual report of the trustee presented
under IC 36-6-4-12.
The Board may send for persons, books, and papers necessary in the
examination of the report. A member may administer oaths necessary in
the examination of the report.
Any sum in the control of the trustee that remains unexpended and is
subject to no liability shall be credited in favor of the fund for which it
was appropriated.
** Prior to 7/1/13 the board was to meet on or before the third Tuesday after the first Monday in
January
Township Board; Meeting for consideration and
approval of annual report of trustee; disposition
of funds
IC 36-6-6-9
Any fund expended, in whole or in part, for a purpose for which it
was not appropriated shall be considered unexpended and in the
control of the trustee, who is liable on his bond for such an
expenditure.
When its examination of the report is completed, the Board shall
take action on the report, specifying the parts of the report that are
altered or disallowed. The report remains under the control of the
Board and in custody of its chairman, who shall keep it open to
inspection by taxpayers of the township.
Compensation of officers and employees
IC 36-6-6-10
The township board shall fix the:
(1) salaries;
(2) wages;
(3) rates of hourly pay; and
(4) remuneration other than statutory allowances;
of all officers and employees of the township.
The township board may not alter the salaries of elected or
appointed officers during the fiscal year for which they are fixed,
but it may add or eliminate any other position and change the
salary of any other employee, if the necessary funds and
appropriations are available.
Compensation of officers and employees
IC 36-6-6-10
The township board may reduce the salary of an elected or
appointed official. However, the official is entitled to a salary that
is not less than the salary fixed for the first year of the term of
office that immediately preceded the current term of office.
In a year in which there is not an election of members to the
township board, the township board may vote to reduce the
salaries of the members of the township board body by any
amount.**
** Prior to 7/1/13 a unanimous vote was required, now only
requires a majority vote.
Compensation of officers and employees
IC 36-6-6-10
The township board may not reduce the salary of the trustee without
the consent of the trustee during the term of office of the trustee.
If a trustee dies or resigns from office, the person filling the vacancy of
the trustee shall receive at least the same salary the previous trustee
received for the remainder of the unexpired term of office of the trustee,
unless the person consents to a reduction in salary.
If a change in the mileage allowance paid to state officers and
employees is established by July 1 of any year, that change shall be
included in the compensation fixed for the trustee, to take effect
January 1 of the next year. However, the township board may by
ordinance provide for the change in the sum per mile to take effect
before January 1 of the next year.
Resolution Establishing Salaries
of Township Officers And Employees
(Township Form No. 17 – Revised 2008)
The Township Board is required to set the salaries and
wages for each township employee every year. Listings
of positions on budget forms are not considered
sufficient for documentation of approved salaries and
wages. The State Board of Accounts has provided a
prescribed form, Township Form No. 17, to document
the approved salaries and wages.
Resolution Establishing Salaries
of Township Officers And Employees
(Township Form No. 17 – Revised 2008)
Please remember the Township Board should
record the salaries so fixed in the township board
minutes. We recommend the board set the salaries
of township officials and employees, in conjunction
with the preparation and completion of the township
budget.
Meeting; adoption of annual budget
IC 36-6-6-11
The township board shall meet annually to adopt the township's
annual budget.
The township board body shall consider the estimates of
expenditures made by the trustee under IC 36-6-4-11, and may
approve or reject all or part of any estimate or any item within an
estimate.
The township board may require the trustee to further itemize an
estimate not sufficiently itemized.
Meeting; adoption of annual budget
IC 36-6-6-11
The township board may not appropriate for any purpose an
amount more than the trustee's estimate of the amount required for
that purpose.
The township board shall include in the budget:
(1) provisions for the payment of existing debt of the
township as it becomes due; and
(2) the salaries fixed under section 10 of this chapter.
In making levies for the township general fund, the township board
may include an amount not more than the amount necessary to
compensate its members for their services during the year for
which the levies are made.
Meeting; adoption of annual budget
IC 36-6-6-11
After the township board has taken action on the trustee's
estimates, it shall levy taxes for the township funds on property
in the township and fix rates of taxation sufficient to provide that
revenue during the next year.
On the assessment date, the rates of taxation adopted become a
levy and a lien on all taxable property in the township, including
property in municipalities in the township. The levy constitutes
an appropriation for the specific items in the trustee's estimates.
Membership of township in county, state, or national
associations; appropriations; expenses
IC 36-6-6-12
The township board may appropriate money for membership of
the township in county, state, or national associations that:
(1) are of a civic, educational, or governmental nature; and
(2) have as a purpose the improvement of township
governmental operations.
The township representatives may participate in the activities of
these associations, and the township board may appropriate
money to defray the expenses of township representatives in
connection with these activities.
Membership of township in county, state, or national
associations; appropriations; expenses
IC 36-6-6-12
Each representative of the township attending any meeting,
conference, seminar, or convention approved by the township
trustee shall be allowed reimbursement for all necessary and
legitimate expenses incurred while representing the township.
Expenses shall be paid to each representative in accordance with
the township's reimbursement policy, which may include an
established per diem rate, as recommended by the trustee and
adopted by the township board.
Appropriation and transfer of money to county;
interlocal agreements
IC 36-6-6-13
The township board may appropriate and transfer money to the
county treasurer for use throughout the county under
agreements made by the township and the county under
IC 36-1-7 (interlocal cooperation).
Special meeting by township board; notice
IC 36-6-6-13.5
A special meeting may be held by the township board if the
trustee, the chairman of the township board, or a majority of the
members of the township board issue a written notice of the
meeting to each member of the township board.
The notice must state the time, place, and purpose of the
meeting.
The township board may consider any matter at a special
meeting. However, the only matters that may be acted on at the
special meeting are the matters set forth in the notice.
Special meeting; determination of need for fire and
emergency services
IC 36-6-6-14
At any special meeting, if two or more members give their consent, the
township board may determine whether there is a need for fire and
emergency services or other emergency requiring the expenditure of
money not included in the township's budget estimates and levy.
If the township board finds that a need for fire and emergency services
or other emergency exists, it may issue a special order, entered and
signed on the record, authorizing the trustee to borrow a specified
amount of money sufficient to meet the emergency.**
** Effective July 1, 2013, the township board may not authorize the trustee to borrow money in more
than three calendar years during any five year period.
Special meeting; determination of need for fire and
emergency services
IC 36-6-6-14
Notwithstanding IC 36-8-13-4(a), the township board may
authorize the trustee to borrow a specified sum from a township
fund other than the township firefighting fund if the township
board finds that the emergency requiring the expenditure of
money is related to paying the operating expenses of a township
fire department or a volunteer fire department.
At its next annual session, the township board shall cover the
debt created by making a levy to the credit of the fund for which
the amount was borrowed.
Special meeting; determination of need for fire and
emergency services
IC 36-6-6-14
In determining whether a fire and emergency services need
exists requiring the expenditure of money not included in the
township's budget estimates and levy, the township board and
any reviewing authority considering the approval of the
additional borrowing shall consider several factors listed in IC
36-6-6-14(d).
In the event the township received additional funds under this
chapter in the immediately preceding budget year for an
approved expenditure, any reviewing authority shall take into
consideration the use of the funds in the immediately preceding
budget year and the continued need for funding the services and
operations to be funded with the proceeds of the loan.
Objection by taxpayers; department of local
government finance hearing and action; appeal
IC 36-6-6-14.5
If the township board issues a special order authorizing the
trustee to borrow money, not less than ten taxpayers in the
township who disagree with the special order may file a petition
in the office of the county auditor not more than thirty (30) days
after notice of the special order is given.
The petition must state the taxpayers' objections and the
reasons why the taxpayers believe the special order to be
unnecessary or unwise.
Objection by taxpayers; department of local
government finance hearing and action; appeal
IC 36-6-6-14.5
The county auditor shall immediately certify a copy of the
petition, together with other data necessary to present the
questions involved, to the department of local government
finance.
Upon receipt of the certified petition and other data, the
department of local government finance shall fix a time and place
for the hearing of the matter.
The hearing shall be held not less than five (5) and not more than
thirty (30) days after the receipt of the certified documents.
Objection by taxpayers; department of local
government finance hearing and action; appeal
IC 36-6-6-14.5
The hearing shall be held in the county where the petition arose.
Notice of the hearing shall be given by the department of local
government finance to the township and to the first ten (10)
taxpayer petitioners listed on the petition by letter.
The letter shall be sent to the first ten (10) taxpayer petitioners at
the taxpayer's usual place of residence at least five (5) days
before the date of the hearing.
Objection by taxpayers; department of local
government finance hearing and action; appeal
IC 36-6-6-14.5
A taxpayer who signed a petition or a township against which a
petition is filed may petition for judicial review of the final
determination of the department of local government finance.
The petition must be filed in the tax court not more than forty-five
(45) days after the date of the department's final determination.
Temporary loans to meet current expenses;
resolution; time warrants
IC 36-6-6-15
If the township board finds that an emergency requires the
borrowing of money to meet the township's current expenses, it
may take out temporary loans in an amount not more than eighty
percent (80%) of the total anticipated revenue for the remainder
of the year in which the loans are taken out.
Temporary loans to meet current expenses;
resolution; time warrants
IC 36-6-6-15
The township board must authorize the temporary loans by a
resolution:
(1) stating the nature of the consideration for the loans;
(2) stating the time the loans are payable;
(3) stating the place the loans are payable;
(4) stating a rate of interest;
(5) stating the anticipated revenues on which the loans
are based and out of which they are payable; and
(6) appropriating a sufficient amount of the anticipated
revenues on which the loans are based and out of
which they are payable for the payment of the loans.
Temporary loans to meet current expenses;
resolution; time warrants
IC 36-6-6-15
The loans must be evidenced by time warrants of the township
stating:
(1) the nature of the consideration;
(2) the time payable;
(3) the place payable; and
(4) the anticipated revenues on which they are based and
out of which they are payable.