The bill proposes specific actions that the auditor of state must take concerning these funds, as it requires the audit of internal controls associated with administering and distributing federal funds. It obliges the auditor to gather findings and report annually to both the governor and the legislative council. By appropriating $800,000 for this purpose from the Coronavirus State and Local Fiscal Recovery Funds, the bill aims to enhance fiscal accountability and transparency at state and local levels as Indiana navigates funding stemming from federal relief efforts.
Summary
House Bill 1600, introduced in the Indiana General Assembly, aims to bolster the oversight of pandemic relief funding by requiring specified procedures for risk assessments and audits related to federal funds. Under this bill, the Office of Management and Budget (OMB) is mandated to ensure that both executive branch agencies and local government units that receive pandemic relief, economic stimulus, or loan funds engage independent third parties for risk assessments. This measure is proposed to ensure that these entities maintain robust internal controls and proper fund disbursement practices.
Contention
While the bill generally enjoys bipartisan support for its objectives, points of contention may arise regarding the allocation of resources and the effectiveness of imposing additional auditing requirements. Some legislators might argue that the processes introduced could delay the disbursement of crucial funds to local governments at a time when swift support is needed. Others may challenge whether the proposed oversight will genuinely enhance public trust and accountability or if it simply imposes bureaucratic hurdles.