Compliance Report for City of North Vernon Redevelopment Authority

Vault Summary

The Indiana State Board of Accounts performed an audit of the City of North Vernon Redevelopment Authority covering the period January 1, 2024 to December 31, 2025. The audit identified multiple instances of noncompliance and deficiencies in internal controls, including lack of documented internal controls and oversight on cash and investments, receipts, disbursements, and financial reporting. The Authority failed to properly submit Annual Financial Reports, hold required organizational meetings, adopt and train personnel on internal control standards, use prescribed accounting forms, approve claims properly, comply with statutory requirements for contracts and public works bidding, and complete required financial system uploads. These issues are detailed in the report and require follow-up by the Officials to ensure compliance with Indiana statutes and accounting standards.

Key Facts

• Authority lacked effective internal controls over cash, investments, receipts, and disbursements with no documented reconciliation reviews or segregation of duties.
• Annual Financial Reports submitted contained errors in beginning and ending fund balances for 2024 and 2025.
• No evidence of annual organizational meetings or board minutes for 2024 and 2025 was provided.
• The Authority had not adopted or conducted training on Indiana State Board of Accounts prescribed internal control standards as required by law.
• Certifications made regarding adoption of internal control standards were incorrect due to actual non-adoption.
• Prescribed forms such as Ledger of Receipts, Disbursements and Balances (Form 358), Claim (Form 354), and General Receipt (Form 352) were not properly used.
• Disbursements were made without documentation of approval or certification by the fiscal officer or board.
• Monthly funds ledgers, bank reconcilements, and required annual uploads were not submitted on the Indiana Gateway for Government Units financial reporting system.
• Contracts for quarry and pickleball court projects were not provided for audit review, indicating noncompliance with contract requirements.
• Public works projects over $150,000 were not subjected to required formal bidding processes, change orders not approved by board, and contracts unsigned as mandated by Indiana Code.

Money Amounts

• $72,733 beginning cash and investments (2024)
• $494,461 receipts (2024)
• $484,779 disbursements (2024)
• $82,415 ending cash and investments (2024)
• $82,415 beginning cash and investments (2025)
• $495,289 receipts (2025)
• $489,089 disbursements (2025)
• $88,615 ending cash and investments (2025)
• $150,000 public works bidding threshold

Deadlines

• Annual Financial Reports to be filed annually
• Organizational meeting to be held after January 15 annually

Watch Items

• Implementation of internal control procedures and oversight
• Proper adoption and training on internal control standards
• Submission of accurate Annual Financial Reports
• Proper use and documentation of required forms
• Compliance with Indiana public works bidding laws and contract documentation

Documents to Request Next

• Board meeting minutes for 2024 and 2025
• Copies of contracts related to quarry and pickleball court projects
• Documentation of internal control policies and training materials
• Annual Financial Reports filed for 2024 and 2025 via Indiana Gateway
• Records of claims approvals and fiscal officer certifications
• Public works bidding documents and related correspondence

Possible Public-Safe Article Angle

The Indiana State Board of Accounts released a compliance audit for the City of North Vernon Redevelopment Authority covering 2024-2025, identifying deficiencies in financial oversight and statutory compliance. The report highlights areas for improvement in financial controls, accurate reporting, board organization, use of required forms, and adherence to public works bidding laws, aiming to promote transparency and accountability in local government operations.

Draft Notes

The Indiana State Board of Accounts recently audited the City of North Vernon Redevelopment Authority for the years 2024 and 2025. The audit report, filed in April 2026, points out multiple concerns including incomplete internal controls, inaccuracies in financial reports, lack of proper board meetings and minutes, and failures to follow required processes for bidding and contracts on public projects. The report notes the Authority did not submit all required financial data online, did not use prescribed accounting forms, and did not obtain proper approval for payments. Officials are expected to address these findings to improve governance and ensure compliance with Indiana laws.