Introduced Version
SENATE BILL No. 203
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-5-1.1-21.
Synopsis: Audit of state agencies. Requires the legislative council to
oversee the audit, by an independent public accounting firm, of all
accounts, financial affairs, and compliance related matters of all state
agencies. Requires the legislative council to direct the legislative
services agency to issue requests for proposals for an independent
public accounting firm or firms, as necessary, to audit the state
agencies. Requires the legislative council to determine which and how
many state agencies will be audited each year. Requires the legislative
council to provide notice to a state agency that will be subject to audit
30 days prior to the audit. Provides that the legislative council may not
authorize a subsequent audit of a state agency until all state agencies
have been audited at least once. Provides that when all of the state
agencies have been audited at least once, the legislative council may
determine which and how many agencies will be audited annually for
each calendar year thereafter on a random basis. Provides that the
legislative council may authorize a subsequent audit of a state agency
that the legislative council determines to be high risk. Requires the
legislative council to determine the scope of an audit during the request
for proposal process. Lists the state agencies that are subject to audit.
Requires the legislative council to publish the results of the audit of
each state agency on the general assembly's website.
Effective: July 1, 2025.
Tomes, Becker, Dernulc
January 8, 2025, read first time and referred to Committee on Appropriations.
2025 IN 203—LS 6677/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 203
A BILL FOR AN ACT to amend the Indiana Code concerning the
general assembly.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 2-5-1.1-21 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 21. (a) This section applies only to calendar years
4 beginning after December 31, 2025.
5 (b) Before July 1 of each year, the legislative council shall direct
6 the legislative services agency to issue requests for proposals,
7 consistent with the request for proposal procedures established
8 under IC 5-22-9, for an independent public accounting firm or
9 firms, as necessary, to audit all accounts, financial affairs, and
10 compliance related matters for a number of the state agencies
11 listed in subsection (i).
12 (c) The legislative council shall annually determine which and
13 how many state agencies shall be audited each year by an
14 independent public accounting firm based on cost effective and
15 efficiency guidelines as determined by the legislative council.
16 (d) The legislative council shall provide notice to a state agency
17 that will be subject to audit by an independent public accounting
2025 IN 203—LS 6677/DI 134 2
1 firm during a calendar year at least thirty (30) days prior to the
2 audit.
3 (e) The legislative council may not authorize a subsequent audit
4 of a state agency by an independent public accounting firm until all
5 state agencies listed in subsection (i) have been audited by an
6 independent public accounting firm at least once.
7 (f) When all of the state agencies listed in subsection (i) have
8 been audited at least once by an independent public accounting
9 firm, the legislative council may determine which and how many
10 agencies will be audited annually by an independent public
11 accounting firm for each calendar year thereafter on a random
12 basis.
13 (g) Notwithstanding subsection (e), the legislative council may
14 authorize a subsequent audit by an independent public accounting
15 firm of a state agency that the legislative council determines to be
16 high risk.
17 (h) The legislative council shall determine the scope of an audit
18 under this section during the request for proposal process
19 described in subsection (b).
20 (i) The following state agencies are subject to audit by an
21 independent public accounting firm under this section:
22 (1) State board of accounts.
23 (2) Adjutant general's office.
24 (3) Indiana department of administration.
25 (4) Alcohol and tobacco commission.
26 (5) Indiana archives and records administration.
27 (6) Indiana arts commission.
28 (7) Indiana state board of animal health.
29 (8) Budget agency.
30 (9) Office of management and budget.
31 (10) Bureau of motor vehicles.
32 (11) Department of child services.
33 (12) Civil rights commission.
34 (13) Commission for higher education.
35 (14) Criminal justice institute.
36 (15) Indiana economic development corporation.
37 (16) Department of correction.
38 (17) Department of education.
39 (18) Department of state revenue.
40 (19) Department of workforce development.
41 (20) Indiana education employment relations board.
42 (21) Indiana office of energy development.
2025 IN 203—LS 6677/DI 134 3
1 (22) Department of environmental management.
2 (23) Family and social services administration.
3 (24) Department of financial institutions.
4 (25) Indiana gaming commission.
5 (26) Governor's council for people with disabilities.
6 (27) Governor's office.
7 (28) Indiana department of health.
8 (29) Department of homeland security.
9 (30) Indiana horse racing commission.
10 (31) Indiana housing and community development authority.
11 (32) Department of insurance.
12 (33) Indiana destination development corporation.
13 (34) Division of disability and rehabilitative services.
14 (35) Indiana finance authority.
15 (36) Indiana public retirement system.
16 (37) Indiana state department of agriculture.
17 (38) Office of the inspector general.
18 (39) Integrated public safety commission.
19 (40) Department of labor.
20 (41) Law enforcement training board.
21 (42) Law enforcement academy.
22 (43) Indiana professional licensing agency.
23 (44) Lieutenant governor's office.
24 (45) Department of local government finance.
25 (46) Indiana state lottery.
26 (47) Management performance hub.
27 (48) Department of natural resources.
28 (49) Northwest Indiana regional development authority.
29 (50) Office of administrative law proceedings.
30 (51) State personnel department.
31 (52) Ports of Indiana.
32 (53) Office of the public access counselor.
33 (54) Office of community and rural affairs.
34 (55) Indiana School for the Blind and Visually Impaired.
35 (56) Indiana School for the Deaf.
36 (57) State fair commission.
37 (58) Indiana state library.
38 (59) Indiana state museum.
39 (60) State police department.
40 (61) Indiana board of tax review.
41 (62) Office of technology.
42 (63) State department of toxicology.
2025 IN 203—LS 6677/DI 134 4
1 (64) Indiana department of transportation.
2 (65) Office of the utility consumer counselor.
3 (66) Indiana utility regulatory commission.
4 (67) Indiana department of veterans' affairs.
5 (68) Indiana war memorials commission.
6 (69) Indiana White River state park development commission.
7 (70) Worker's compensation board.
8 (71) Any newly created, reorganized, or merged agency.
9 (j) Within a reasonable time following the audit of an agency by
10 an independent public accounting firm under this section, the
11 legislative council shall publish the results of the audit of the
12 agency on the general assembly's website.
2025 IN 203—LS 6677/DI 134