IC 5-11-5
    Chapter 5. Reports of Examinations by State Board of Accounts;Recovery of Public Funds

IC 5-11-5-1
Reports of examination; copies; disclosure of examination resultsprohibited; attorney general actions
    Sec. 1. (a) Whenever an examination is made under this article, areport of the examination shall be made. The report must include alist of findings and shall be signed and verified by the examinermaking the examination. A finding that is critical of an examinedentity must be based upon one (1) of the following:
        (1) Failure of the entity to observe a uniform complianceguideline established under IC 5-11-1-24(a).
        (2) Failure of the entity to comply with a specific law.
A report that includes a finding that is critical of an examined entitymust designate the uniform compliance guideline or the specific lawupon which the finding is based. The reports shall immediately befiled with the state examiner, and, after inspection of the report, thestate examiner shall immediately file one (1) copy with the officer orperson examined, one (1) copy with the auditing department of themunicipality examined and reported upon, and one (1) copy in anelectronic format under IC 5-14-6 of the reports of examination ofstate agencies, instrumentalities of the state, and federal fundsadministered by the state with the legislative services agency, as staffto the general assembly. Upon filing, the report becomes a part of thepublic records of the office of the state examiner, of the office or theperson examined, of the auditing department of the municipalityexamined and reported upon, and of the legislative services agency,as staff to the general assembly. A report is open to public inspectionat all reasonable times after it is filed. If an examination disclosesmalfeasance, misfeasance, or nonfeasance in office or of any officeror employee, a copy of the report, signed and verified, shall beplaced by the state examiner with the attorney general. The attorneygeneral shall diligently institute and prosecute civil proceedingsagainst the delinquent officer, or upon the officer's official bond, orboth, and against any other proper person that will secure to the stateor to the proper municipality the recovery of any fundsmisappropriated, diverted, or unaccounted for.
    (b) Before an examination report is signed, verified, and filed asrequired by subsection (a), the officer or the chief executive officerof the state office, municipality, or entity examined must have anopportunity to review the report and to file with the state examinera written response to that report. If a written response is filed, itbecomes a part of the examination report that is signed, verified, andfiled as required by subsection (a).
    (c) Except as required by subsections (b) and (d), it is unlawfulfor any deputy examiner, field examiner, or private examiner, beforean examination report is made public as provided by this section, tomake any disclosure of the result of any examination of any public

account, except to the state examiner or if directed to give publicityto the examination report by the state examiner or by any court. If anexamination report shows or discloses the commission of a crime byany person, it is the duty of the state examiner to transmit and presentthe examination report to the grand jury of the county in which thecrime was committed at its first session after the making of theexamination report and at any subsequent sessions that may berequired. The state examiner shall furnish to the grand jury allevidence at the state examiner's command necessary in theinvestigation and prosecution of the crime.
    (d) If, during an examination under this article, a deputyexaminer, field examiner, or private examiner acting as an agent ofthe state examiner determines that the following conditions aresatisfied, the examiner shall report the determination to the stateexaminer:
        (1) A substantial amount of public funds has beenmisappropriated or diverted.
        (2) The deputy examiner, field examiner, or private examineracting as an agent of the state examiner has a reasonable beliefthat the malfeasance or misfeasance that resulted in themisappropriation or diversion of the public funds wascommitted by the officer or an employee of the office.
    (e) After receiving a preliminary report under subsection (d), thestate examiner may provide a copy of the report to the attorneygeneral. The attorney general may institute and prosecute civilproceedings against the delinquent officer or employee, or upon theofficer's or employee's official bond, or both, and against any otherproper person that will secure to the state or to the propermunicipality the recovery of any funds misappropriated, diverted, orunaccounted for.
    (f) In an action under subsection (e), the attorney general mayattach the defendant's property under IC 34-25-2.
    (g) A preliminary report under subsection (d) is confidential untilthe final report under subsection (a) is issued, unless the attorneygeneral institutes an action under subsection (e) on the basis of thepreliminary report.
(Formerly: Acts 1917, c.115, s.1.) As amended by Acts 1980, P.L.30,SEC.16; P.L.3-1986, SEC.18; P.L.39-1996, SEC.5; P.L.28-2004,SEC.57; P.L.176-2009, SEC.4.

IC 5-11-5-2
Action for recovery of money
    Sec. 2. Upon the written request of the attorney-general, theprosecuting attorney of the circuit having jurisdiction of such actionshall appear with the attorney-general in all causes begun by theattorney-general for the recovery of monies or for whatever purposesgrowing out of such examination or report, and said prosecutingattorney shall comply with all orders of the attorney-general relatingto the prosecution of such suits.
(Formerly: Acts 1917, c.115, s.2.) As amended by Acts 1978, P.L.2,

SEC.511.

IC 5-11-5-3
Compromise and adjustment of actions; discretion of attorneygeneral; appeal
    Sec. 3. (a) The attorney general, by and with the consent of thestate examiner and the deputy examiners, may compromise andadjust any action brought by the attorney general as required in thisarticle. In all cases where any money comes into the attorneygeneral's hands, the attorney general shall immediately pay themoney into the treasury of the state or of the municipality to whichit belongs, and shall have the money distributed among the properfunds. The attorney general may, in the attorney general's discretion,and shall, upon the order of the governor, appeal any such causes tothe court of appeals or the supreme court, or both, as the case maybe.
    (b) The state examiner, and the field examiners and any privateexaminer shall use reasonable diligence in the making ofinvestigations and in furnishing and securing evidence in connectionwith the prosecution of suits concerning examination reportswhenever requested by the attorney general. Reasonable per diemand expenses incurred by the examiner shall be paid in the amountand in the manner provided by law in case of examinations.
(Formerly: Acts 1917, c.115, s.3.) As amended by Acts 1980, P.L.30,SEC.17; P.L.3-1986, SEC.19.

IC 5-11-5-4
Party to actions; plaintiff's right of recovery
    Sec. 4. Any action brought by the attorney general, as provided inthis article, may be brought in the name, as plaintiff, of the state ofIndiana, or such municipality or subdivision of the state of Indianaas it may appear is entitled to recover moneys or to secure otherrelief under such action. If the action is brought on an official bondor official bonds, the cause may be brought in the name of the stateof Indiana on the relation of such plaintiff. In an action against atownship trustee, or ex-township trustee, or upon his official bond,both the civil and school corporations may be named as plaintiff orrelator in the same action, and recovery may be had for the aggregateamount due both corporations, but the court or jury trying the caseshall, in the finding or verdict, state the amount due each corporation.In an action where a board of commissioners is plaintiff or relator,the plaintiff shall be entitled to recover against the delinquent officeror ex-officer, or upon his official bond or bonds, all such amounts aswould be recoverable under all the laws of this state, including thischapter, in any or all actions by or upon the relation of the board ofcommissioners, or by or upon the relation of any county officer orother person authorized to sue for whatever funds, or for any fundsof which it is the custodian and with which it is chargeable, and incase any of the funds so recovered are school funds, the court or jurytrying the case shall find and state the amount thereof. In any action

brought under this article, the plaintiff shall be entitled to recover, inaddition to the amount misappropriated, diverted or unaccounted for,all such penalties and interest as might be recoverable under lawsother than this chapter.
    The term municipality, as used in this article, shall be construedto extend to, include and mean any county, township, city, town,school corporation, special taxing district or other politicalsubdivision of Indiana.
(Formerly: Acts 1917, c.115, s.4.) As amended by Acts 1980, P.L.30,SEC.18.

IC 5-11-5-5
Cumulative remedies
    Sec. 5. The remedies provided for in this chapter are cumulative,and this chapter shall not be construed to abridge the rights of otherofficers to sue on behalf of municipalities, except to the extent thatwhere the attorney general has brought an action under the authorityof this chapter no other action shall be brought for the same matterwhile such action brought by the attorney general is pending, andexcepting as other statutes relating thereto are expressly repealed byActs 1917, c.115, s.7.
(Formerly: Acts 1917, c.115, s.5.) As amended by P.L.25-1986,SEC.39.

IC 5-11-5-6
Repealed
    (Repealed by Acts 1980, P.L.30, SEC.19.)

IC 5-11-5-7
Collecting fines, costs, and fees for statutory violations, bondforfeitures, and user's fees; compromises; collection costs;disposition of collected money
    Sec. 7. (a) The state board of accounts or a person designated inwriting by it may collect any of the following:
        (1) Unpaid fines, costs, or fees that are imposed for violationsof statutes defining a crime or infraction and are owed to thestate or its political subdivisions.
        (2) Money owed resulting from bond forfeitures underIC 35-33-8-7.
        (3) Unpaid user's fees incurred under a pretrial diversionagreement by a person charged with a misdemeanor, infraction,or ordinance violation.
    (b) The state board of accounts or its agent may compromise theamount of money owed in collecting money under this section.
    (c) The costs of collection, including but not limited to reasonableattorney's fees, may be added to money that is owed and collectedunder this section. However, the costs of collection may not exceedan amount that is equal to the amount of money that is owed.
    (d) When money is collected under this section, the state board ofaccounts or its agent shall deposit the money, less the costs of

collection, in accounts to the credit of the state or a politicalsubdivision as required by law.
    (e) The costs of collecting money under this section shall bedetermined by the state board of accounts and shall be paid frommoney collected.
As added by P.L.43-1986, SEC.1. Amended by P.L.64-1989, SEC.1.

IC 5-11-5-8
Copies of reports filed with library upon request; publicinspection; renewal of request
    Sec. 8. (a) Upon request of a public library, the state examinershall file with the library (without cost to the library) a copy of eachreport of an examination concerning a municipality, state agency,public hospital, license branch, or other entity that is located in thesame county as the library. The request must be in writing.
    (b) This section does not require the state examiner to:
        (1) file copies of reports completed before the receipt of arequest; or
        (2) file a copy of any report with more than one (1) publiclibrary located in the same county.
    (c) Copies of reports filed under this section are open to publicinspection during hours that the library is open to the public.
    (d) After a library has been granted a request to receive copies ofreports under this section, the library may continue as the repositoryfor those reports if it files an annual renewal of its request in writingwith the state board of accounts before January 15 of each year.
As added by P.L.65-1987, SEC.1.