County Auditors

The Constitution of Indiana imposes no duties upon the auditor. It only provides that he/she shall "perform such duties as may be directed by law." (Art. 6, Sec. 6 of Constitution of Indiana; Jones v. Cavins, 4 Ind. 305)

The auditor shall, therefore, perform such duties as may be directed by law.

The following terms are used throughout this manual. Each is defined herein for the purpose of clarity and to prevent misunderstanding or misinterpretation. Unless the context clearly states otherwise, such terms shall have the following meanings:

Quietus or Receipt shall mean the quietus issued by the auditor upon a person depositing in his/her office the receipt of the treasurer for money paid into the county treasury.

Warrant shall mean an order or check issued by the auditor or the treasurer for the payment of money from the county treasury.

Fund shall mean the cash belonging to a specific named account. It shall also mean investments of cash in securities belonging to such fund or account.

Examples of funds include: General Fund, Welfare Fund, Highway Fund, Health Fund and Congressional School Fund.

Appropriation means authorization given by the council by ordinance to incur obligations and dis-burse funds for a specific purpose, in those instances where an appropriation is required. This term is associated with the terms "Major Budget Classification" and "Object of Expenditure," also defined herein. The term differs from "fund" in that it does not represent cash but is merely the authority to expend the cash in a specific fund up to a stated amount.

Major Budget Classification means one of the four major classifications of expense for which appropriations are made under the uniform budget system prescribed for counties. The major classifications are: Personal Services, Supplies, Other Services and Charges and Capital Outlays.

Object of Expenditure or Minor Budget Classification means one of the detail or minor classifications of expense under a major budget classification, as prescribed in the uniform budget system for counties. It also refers to appropriations where required to be made by minor object.

Encumbrance means an obligation incurred in the form of a purchase order or contract to be paid from an appropriation or fund, for which a part of the appropriation or fund is reserved, or set aside on the records, for that purpose. An encumbrance ceases when the obligation is paid.

Unencumbered Appropriation means that portion or balance of an appropriation not expended or encumbered.

Claim or Accounts Payable Voucher, as used herein Claims and Allowances, shall have the broad meaning of any request, order or demand for payment of money out of the county treasury. It is not intended that the term be limited solely to claims filed for allowance by the board of county commissioners, unless the discussion so indicates.

Disbursement means the actual payment of money by the issuance of a warrant against the county treasury.

Expenditure means the incurring of an obligation against a fund or appropriation, for which the money may or may not be disbursed. It is actually a total of encumbrances and disbursements.

Ledger Account means the accounting form on which the financial transactions pertaining to a particular fund, appropriation or detail account are recorded.

Ledger means the composite or summary of a group or of all individual "ledger accounts" into a single book or record. For example, a "Funds Ledger" will consist of the ledger accounts for all funds and an "Appropriation Ledger" will consist of the ledger accounts for all appropriations. It is sometimes referred to as the "General Ledger," in which all ledger accounts are kept in a single record; however, the term also includes subsidiary ledgers of financial transactions required to be kept.

General Duties of All Months

1. Post and balance all ledgers.
2. Prepare monthly financial statement and reconcile to statement prepared by County Treasurer.
3. Receive claims against the county; audit and check to contracts or statutory authority; verify approval or allowance by proper officer or board, where required as a condition for payment.
4. Publish claims to be considered by Board of Commissioners.
5. Publish allowances by the courts.
6. Issue warrants for claims properly payable from county treasury; verify that funds and appropriations are available before issuing warrants.
7. Make remittances of federal and state withholding taxes and other payroll deductions to appropriate agencies.
8. Issue quietuses for funds paid into the county treasury upon persons presenting receipts of the Treasurer.
9. Pay to County Treasurer all Auditor's fees collected.
10. Receive reports from county officials, clerks of courts and other officers of fees and collections paid into the county treasury.
11. Attend meetings and, as secretary or clerk, record the proceedings of the Board of Commissioners, County Council, and County Board of Tax Adjustment, when in session.
12. Receive bids for supplies, materials and equipment on behalf of the Board of Commissioners. In counties having established a purchasing Agency this duty may be delegated by the board to the Purchasing Agent.
13. Receive bids for public works projects (construction or repairs), upon direction of Board of Commis-sioners.
14. Transfer and enter for taxation all deeds, plats and other documents affecting ownership and descriptions of real estate; also, make necessary transfers of ownership and description changes in plat books.
15. Prepare tax duplicate, ditch duplicate and similar tax and assessment records; also, enter all neces-sary additions and corrections to such records.
16. Receive license excise tax reports and registration forms from State Bureau of Motor Vehicles and State Aeronautics Commission; verify amounts so reported and paid to County Treasurer and allocate tax to proper taxing districts.
17. Receive petitions, appeals and other documents required to be filed in the office.

January

1. File Annual Financial Report with State Board of Accounts. [IC 5-11-1-4]
2. File report with Board of Commissioners listing all real property acquired by tax sale for determination of board as to whether any such property should be retained for use of county; any property not retained shall be sold without unnecessary delay. [IC 6-1.1-25-9]
3. Make reports and payments to Public Employees' Retirement Fund for the fourth quarter of the pre-ceding year for Public Employees' Retirement contributions, if county participates in the retirement plan - Due by January 15.
4. Prepare Employer's Quarterly Federal Tax Return for fourth quarter of preceding year to Internal Revenue Service - Due by January 31. NOTE: State withholding tax is required to be reported and paid by the 15th of each month for the preceding calendar month; no quarterly report is required.
5. Township Trustees required to file annual reports and vouchers within ten days after meeting of Township Boards held on the third Tuesday after the first Monday in January. [IC 36-6-4-12]
6. Report of Names and Compensation of Officers and Employees (Form 100R) to be filed with State Board of Accounts. [IC 5-11-13-1]
7. Make semiannual distribution of interest on congressional school fund - last Monday in January. [IC 21-1-1-54]
8. Make annual distribution of interest on cemetery trust funds last Monday in January. [IC 23-14-70-3]
9. Begin to prepare for annual personal property assessment period which begins on March 1. See that forms and records required to be furnished assessors are available by that date. [IC 6-1.1-3-5] Also, forms for use of taxpayers in claiming deductions and exemptions should be available by March 1.
10. Prepare withholding statements for employees (W-2) and make annual reports to Internal Revenue Service and Indiana Department of Revenue, as soon as possible after year end.

February

1. Submit Annual Financial Report to Board of Commissioners for approval; publish the report one time in each qualified newspaper. [IC 36-2-2-19; 5-3-1]
2. County Highway Annual Operational Report to be filed with the State Board of Accounts, Board of County Commissioners, and Indiana Department of Transportation by February 15.

March

1. Complete tax duplicate and prepare Abstract of Valuations and Taxes levied to be filed with the Auditor of State and the County Treasurer on or before March 15. [IC 6-1.1-22-3 and IC 6-1.1-22-5]
2. nnual assessment of property begins on first day of March. [IC 6-1.1-1-2] Assessors' Books, listing owners and descriptions of real estate and, except for year of periodical reassessment of real estate, the assessed valuations, shall be delivered to Township Assessors by March 30. [IC 6-1.1-5-8]
3. Township Trustees file reports of dog funds and pay surplus into county treasury - first Monday in March. [IC 15-5-9-10]
4. Distribute surplus dog fund to townships reporting unpaid claims - second Monday in March. [IC 15-5-9-10]
5. In years in which a periodical reassessment of real estate is begun or completed give notice of meeting of County Property Tax Assessment Board.
6. Mail a notice by certified mail before March 31 of each year to each person who resides or conducts business on property the county has acquired under IC 6-1.1-24. [IC 6-1.1-25-9]

April

1. Two weeks previous notice of the annual meeting of the County Property Tax Assessment Board shall be given. [IC 6-1.1-28-6]
2. Make reports and payments to Public Employees' Retirement Fund for the first quarter of year for Public Employees' Retirement contributions, if county participates in the retirement plan - Due by April 15.
3. Prepare Employer's Quarterly Federal Tax Return for first quarter of year to Internal Revenue Serv-ice - Due by April 30.
4. Appointments to County Board of Tax Adjustment to be made by fifteenth day of month. [IC 6-1.1-29-2]
5. Prepare inventory of loans from school funds. [IC 21-1-7-29]

May

1. Prepare report of condition of school funds as of April 30 and submit to Board of Commissioners for approval. After approval mail copy to State Superintendent of Public Instruction and to Auditor of State. [IC 21-1-7-29 to 21-1-7-32]
2. Prepare report of school funds to Auditor of State and make payment to Treasurer of State of principal and interest due on the common and permanent endowment funds and all fines and forfeitures on hand on April 30, as shown in the report. [IC 21-1-3-5; 21-1-3-7]
3. Make report to Auditor of State of condition of County Dog Fund, showing unpaid claims not covered by distributions to townships in March, and issue warrant to Treasurer of State for any surplus in the fund - second Monday in May. [IC 15-5-9-11]
4. First installment of taxes due by May 10. [IC 6-1.1-22-9] Immediately after the County Treasurer has entered all credits for collections in the tax duplicate and special assessment duplicates proceed to audit the duplicates, verify collections with Treasurer's Certificate of Collections and make settlement and distribution. The settlement shall include not only tax and special assessment collections but also demand fees, tax sale costs and any other items for which the treasurer is chargeable. [IC 6-1.1-27-2]
5. Enter penalty on tax duplicate for first installment taxes returned delinquent. [IC 6-1.1-37-10]
6. Even though applications for deductions and exemptions may be filed at any time throughout the year, applications for the following deductions and exemptions from assessments and/or taxation must be filed on or before May 10 to entitle the filer to a deduction or exemption for the current years' taxes payable in the immediate following year:

1. *Mortgage Indebtedness. [IC 6-1.1-12-2]
2. *Veterans and Widows of Veterans. [IC 6-1.1-12-15; 6-1.1-12-17 and 6-1.1-12-17.5]
3. *Persons Age 65. [IC 6-1.1-12-9]
4. *Blind or Disabled Persons. [IC 6-1.1-12-12]
5. Rehabilitated Property. [IC 6-1.1-12-20; 6-1.1-12-24]
6. Solar Energy Systems. [IC 6-1.1-12-27.1]
7. **Educational, Literary, Scientific, Religious and Charitable Organizations [IC 6-1.1-11-3] may be filed any time after January 1 of each year.

7. Normal period for filing applications for exemptions (Educational, Literary, Scientific, Religious and Charitable Organizations) expires May 15.
8. Mail copies of mortgage deduction applications to county auditor of any other county, if residence of applicant is located in such other county or applicant has applied for a mortgage deduction in such other county. [IC 6-1.1-12-6]

* This only applies to those persons who have not previously filed for these deductions. [IC 6-1.1-12-17.8] ** If the use of the property exempted under (g) above remains unchanged and if the property remains eligible for the exemption, the application is only required to be filed every four (4) years.

June

1. Complete semiannual settlement with County Treasurer by June 20. [IC 6-1.1-27-1] Prepare Settle-ment Sheet to be submitted to Auditor of State for approval and make distribution of funds due local governmental units and the Treasurer of State by June 30. [IC 6-1.1-27-3]
2. Receive list certified by county treasurer of real property eligible for tax sale - on or before July 1. [IC 6-1.1-24-1]
3. Prepare list of persons owing delinquent taxes and believed to have money due from Auditor of State, State Highway Commission or any state institution or state school and furnish the list to those agencies on or before June 1. [IC 6-1.1-22-16]
4. Assessor's Books, listing real estate and personal property assessments, shall be filed in the office by Township Assessors on or before the first of June for personal property and not later than May 15 for real property. [IC 6-1.1-3-17; 6-1.1-5-14]
5. Enter on Assessor's Books amounts allowable on applications for deductions and exemptions. Appli-cations for mortgage deductions and tax exemptions of religious, educational and charitable organiza-tions are to be acted upon by the County Property Tax Assessment Board; other deductions and exemptions are subject only to allowance by the county auditor.
6. Give notice to any tax exempt organization which failed to file an application for exemption on property for which an exemption was effective for the preceding year - on or before June 15. [IC 6-1.1-11-5] Applicant may file the application within fifteen days after sending the notice.

July

1. Receive from officers, boards, commissions and agencies, statements of salaries and wages proposed to be paid officers and employees, County Forms No. 144 - Due by July 1. [IC 36-2-5-4]
2. Submit to the Board of Commissioners, at its July meeting, the statement of salaries and wages pro-posed to be paid, County Forms No. 144. The board shall on or before August 20 make its recom-mendations thereon to the county council. [IC 36-2-5-4]
3. Make reports and payments to Public Employees' Retirement Fund for the second quarter of year for Public Employees' Retirement contributions, if county participates in the retirement plan - Due by July 15.
4. Prepare Employer's Quarterly Federal Tax Return for second quarter of year to Internal Revenue Service - Due by July 31.
5. Make distributions to township trustees of the amount received from the Auditor of State for unpaid dog claims. [IC 15-5-9-11]
6. Make semiannual distribution of interest on congressional school fund - second Monday in July. [IC 21-1-1-54]
7. County Assessor shall certify the assessment value of the personal property in every taxing district – on or before July 1. [IC 6-1.1-3-17]
8. Furnish forms to officers and department heads for use in submitting budget estimates for ensuing year; prepare budget estimates for auditor's office, for poor relief, and for the Board of Commissioners under direction of the board. [IC 36-2-5-5 to 36-2-5-7]

August

1. Furnish estimates of net assessed valuation and of taxes to be distributed during last six months of year to proper officer of each municipal corporation for use in preparing budget for ensuing year - not later than August 1. [IC 6-1.1-17-1]
2. Receive budget estimates from officers and department heads (including assessing officials) - not later than Thursday following first Monday in August. [IC 36-2-5-9; IC 36-6-8-10]
3. Publish county budget - at least ten (10) days before the public hearing on the budget. [IC 6-1.1-17-3; 6-1.1-17-5]
4. Furnish duplicate copies of all applications for tax exemption, showing action taken by County Property Tax Assessment Board, to State Board of Tax Commissioners - on or before August 1. [IC 6-1.1-11-8]
5. Begin or complete preparation of Tax Duplicate as soon as possible after County Property Tax Assessment Board adjourns, to show names of owners, descriptions, assessed valuation, exemptions and deductions, and net valuation. This will enable early completion of the duplicate when tax rates are finally fixed.

September

1. Receive budgets from other municipal corporations. If applicable, submit to County Board of Tax Adjustment - at least two days before meeting of County Board of Tax Adjustment. [IC 6-1.1-17-5]
2. Meeting of County Board of Tax Adjustment on September 22 or on the first business day after Sep-tember 22, if September 22 is not a business day. [IC 6-1.1-29-4] Immediately after adjournment publish notice of tax levies and rates as fixed by the board [IC 6-1.1-17-12] and furnish copy of minutes and copies of all budgets to State Board of Tax Commissioners. [IC 6-1.1-17-10]
3. Hold public hearing on budget at any time after introduction of the budget. [IC 6-1.1-17-3; 6-1.1-17-5]
4. Regular meeting of County Council - on any date not later than the last meeting in September. [IC 6-1.1-17-5)] At this meeting the county council shall adopt ordinances fixing the appropriations and tax levies for the ensuing year and a separate ordinance fixing the salaries and wages of officers and employees paid from county funds and subject to the provisions of IC 36-2-5-2 and 36-2-5-3.

October

1. County Board of Tax Adjustment must complete its duties by October 1. [IC 6-1.1-29-4; 6-1.1-17-9]
2. Make reports and payments to Public Employees' Retirement Fund for the third quarter of year for Public Employees' Retirement contributions, if county participates in the retirement plan - Due by October 15.
3. Prepare Employer's Quarterly Federal Tax Return for third quarter of year to Internal Revenue Service - Due by October 31.
4. Upon receipt of orders from county board of tax adjustment and State Board of Tax Commissioners on the budgets, tax levies and rates, notify proper officer of each municipal corporation of action taken thereon. [IC 6-1.1-17-6; 6-1.1-17-16] Compute taxes to be entered in the tax duplicate.

November

1. Issue tax sale certificates to county for real property offered for tax sale for two consecutive years and remaining unsold on the day after the last date on which the tract or item was offered for sale the second time. [IC 6-1.1-24-6]
2. Issue tax deeds to county for real property for which tax sale certificates were issued and not redeemed within one (1) year after the date of the sale. [IC 6-1.1-25-4]
3. Second installment of taxes due by November 10. [IC 6-1.1-22-9] Immediately after the County Treasurer has entered all credits for collections in the tax duplicate and special assessment duplicates proceed to extend and audit the duplicates, verify collections with Treasurer's Certificate of Collections and make settlement and distribution. The settlement shall include not only tax and special assessment collections but also demand fees, tax sale costs and any other items for which the Treasurer is chargeable. [IC 6-1.1-27-2]
4. Enter penalties on November installment returned unpaid and on prior years' delinquencies and carry forward all delinquent taxes and penalties to succeeding year's tax duplicate.
5. Prepare report of school funds to Auditor of State and make payment to Treasurer of State of principal and interest on the common and permanent endowment funds and of all fines and forfeitures on hand as of October 31, as shown in the report. [IC 21-1-3-5; 21-1-3-7; 21-1-10-1]
6. Other notices will be required in November or December for receiving bids on other supplies and materials, including the needs of the County Highway Department, depending upon the date fixed for the meeting of the Board at which such bids are to be received.

December

1. Complete semiannual settlement with County Treasurer by December 20. [IC 6-1.1-27-1] Prepare Settlement Sheet to be submitted to Auditor of State for approval and make distribution of funds due local governmental units and the Treasurer of State by December 31. [IC 6-1.1-27-3]
2. Prepare list of persons owing delinquent taxes and believed to have money due from Auditor of State, Indiana Department of Transportation or any state institution or state school and furnish the list to those agencies on or before December 1. [IC 6-1.1-22-16]

Forms and records prescribed by the State Board of Accounts for use of county auditors are listed in this section. In addition, a number of other forms prescribed by law or from use of other agencies, which are related to the duties of the auditor, are listed.

The forms and records are listed under four classifications, namely: (1) county forms; (2) general forms; (3) county budget forms; and (4) other forms. The "general forms" are prescribed for use of all local governmental units, including counties, while all other forms are prescribed for a specific office or unit of government.

Those forms listed in the first three classifications are directly related to the business of the county and should be supplied by the auditor. The "other forms" should be supplied as noted on the list:

County Forms

* These are forms prescribed or approved pursuant to law and do not bear a form number, since they are not prescribed by the State Board of Accounts.

General Forms

* These forms are prescribed for use, if needed, by any organizational unit of the county, such as Park and Recreation Department, Health Department, Planning Commission, etc.

County Budget Forms

Other Forms

The following forms are required to be filed with the auditor in support of the receipt or disbursement of county funds or for other purposes, but most of such forms are prescribed or approved for use of other offices:

Note: The forms designated "Co." are county forms, to be purchased at the expense of the county, but are generally supplied by the office or department for which prescribed. The other forms are supplied by the governmental units indicated by the form number prefix. Forms indicated by asterisk (*) are not prescribed by the State Board of Accounts.

The following forms and records prescribed by the State Board of Tax Commissioners have been grouped into two classes, namely: (1) forms used by or filed with auditor and (2) forms used by or filed with assessors.

The forms in the first group, except as noted, should be purchased by the auditor and, where required, should be furnished through that office to taxpayers and assessing officials. The forms in the second group, except as noted, should be purchased for use of local assessors or made available through the assessors' offices to taxpayers.

IC 6-1.1-3-5 makes it the duty of the county auditor to deliver to township assessors "the proper assessment books and necessary blanks for the listing and assessment of personal property." This would include many of the assessment forms in the second group; however, in some counties such forms are ordered under direction or authority of the auditor by the county assessor.

Forms Used By Or Filed With Auditor

Forms Used By Or Filed With Assessors

* Forms 14 and 15 are furnished by the State Board of Tax Commissioners.

The forms listed below have been prescribed or approved for use of county auditors in making reports to state agencies or are otherwise required in connection with the duties of the office. Such forms are furnished and in most instances are mailed in advance by the state agency under which they are listed; if not received or a supply of any form is needed, you should write direct to the agency at the address shown.

Auditor of State, 240 State House, Settlement Clerk

Public Employees' Retirement Fund, Suite 800 Harrison Building, Indianapolis, Indiana, 46204

PERF

State Superintendent of Public Instruction, 229 State House

State Board for Depositories, 101 West Washington Street

NOTE: The above forms are usually furnished direct to banks by the State Board for Depositories.

Family and Social Services Administration, Indiana Government Center South

A number of forms used by the Division of Family and Children’s Services in submitting claims and allowance schedules to the auditor for payment are prescribed and furnished by the Family and Social Services Administration. The following listed forms, although not a complete list of forms used by the Family and Social Services Administration are used to support the payments indicated:

Claim Form 17, Mileage Claim Form 101 and Payroll Schedule and Voucher Form 99 are used for payment of salaries and other welfare department expenses.

Special Tax Division, Department of Revenue, Room 202, Indiana Government Center North

NOTE: Federal Form W-2 is also required to be used. Form W-2 is the 6-part statement of income and tax withheld required to be furnished each employee, which contains copies for state tax purposes. Federal Form 1099 may also be used in lieu of State Form 12A, providing copies of Form 1099 are furnished the Department of State Revenue and are accompanied by Form 11A.

State Bureau of Motor Vehicles, Room N440, Indiana Government Center North

The following forms are furnished by the State Bureau of Motor Vehicles and are used by their branch managers in reporting vehicle license excise tax:

*These two forms are computer generated forms.

Unclaimed Property Section, Office of the Attorney General, Indiana Government Center South

The following forms are prescribed and furnished by the Internal Revenue Service in connection with wages and other payments subject to withholding and reporting for federal tax purposes:

There are other forms applicable to reporting for federal tax purposes but the forms listed above are those generally affecting counties. For further instructions in withholding, depositing, paying and reporting federal taxes a county auditor should have available at all times a current issue of "Circular E- Employer's Tax Guide" which is also available from the Internal Revenue Service.

Forms may be obtained from any local office of the Internal Revenue Service or ordered from the Indianapolis District Office, Federal Building, Indianapolis, 46204.

A chart of accounts is a listing of account titles, with numerical symbols, employed in the compilation of financial data. It also serves to facilitate processing of claims, warrants and other documents and as a convenience in posting ledgers.

A numerical coding system has been established for use in accounting for funds, revenues, appropriations and expenditures, which is adaptable to all counties having a manual or mechanized accounting system, as distinguished from electronic data processing. The coding system and its application is more fully discussed below and on the pages that follow in this section.

The chart of accounts described herein will be used in all counties unless a double entry accounting system is implemented requiring the chart of accounts specified in subsequent sections.

Those counties utilizing electronic data processing may find it necessary to adopt a chart of accounts and numerical coding system different from that set out herein. This is particularly true with respect to fund account numbers and departmental account numbers which are consolidated in the chart of accounts described herein, but which may have to be separated in an electronic data processing system to provide a separate series of account numbers for funds and a separate series of account numbers for departments. The number of digits used in coding revenue and expenditure accounts may also need to be expanded in an electronic data processing system and, if necessary, this is permissible; however, all such systems must provide for separate accounting for each fund, and for the revenues, appropriations and expenditures related to such fund. Also, the basic numerical system prescribed for appropriation and expenditure accounts, as set out in the prescribed budget forms, must be used in all counties, whether the records are kept manually or by electronic data processing.

A three-digit number has been established to account for each fund and, within the County General Fund, the appropriations and disbursements for each department.

Under this coding system, the County General Fund has been assigned account number 100, with the second and third digits identifying the specific office or department within that fund. All other funds have been assigned numbers in groups beginning with 200, as they appear on the monthly financial statement, for convenience in preparing that statement.

The following illustrates the manner in which the fund and departmental account numbers should be assigned, although the actual numbers may differ between counties because of the various departments and funds which exist:

• 100 County General Fund
  • 101 Clerk of Circuit Court
  • 102 County Auditor
  • 103 County Treasurer
  • 104 County Recorder
  • 105 County Sheriff
  • 106 County Surveyor
  • 107 County Coroner
  • 108 Prosecuting Attorney
  • 109 County Assessor
  • 110 Bean Blossom Township Assessor/Trustee
  • 111 Benton Township Assessor/Trustee
  • 112 Bloomington Township Assessor
  • 113 Clear Creek Township Assessor/Trustee
  • 114 Indian Creek Township Assessor/Trustee
  • 115 Perry Township Assessor
  • 116 Polk Township Assessor/Trustee
  • 117 Richland Township Assessor
  • 118 Salt Creek Township Assessor/Trustee
  • 119 Van Buren Township Assessor
  • 120 Washington Township Assessor/Trustee
  • 121 County Election Board
  • 122 Registration of Voters
  • 123 County Cooperative Extension Service
  • 124 Plan Commission
  • 125 Board of Review
  • 126 Drainage Board
  • 127 Veterans Service Officer
  • 128 Weights and Measures Inspector
  • 129 Board of Education
  • 130 Board of County Commissioners
  • 131 Court House
  • 132 Jail
  • 133 County Home
  • 134 Children's Home
  • 135 Juvenile Detention Home
  • 136 Circuit Court
  • 137 Superior Court No. 1
  • 138 Superior Court No. 2
  • 139 Superior Court No. 3
  • 140 Probate Court
  • 141 Criminal Court
  • 142 Juvenile Court
  • 143 Probation Department
• 200 Other County Funds
  • 201 County Highway
  • 202 County Bond Redemption
  • 203 Cumulative Bridge
  • 204 County Welfare
  • 205 County Welfare Trust
  • 207 * County Poor
  • 208 * County Poor Bond Redemption
  • 209 County Hospital Operating
  • 210 County Hospital Bond Redemption
  • 211 County Hospital Cumulative
  • 212 * General Drain Improvement
  • 213 * Drainage Maintenance
  • 214 County Health
  • 215 County Aviation
  • 216 County Park and Recreation
  • 217 Local Road and Street Fund
  • 218 County Payroll
  • 219 Withholding Tax - Federal
  • 220 Withholding Tax - State
  • 221 Withholding - OASI
  • 222 Withholding - Insurance
  • 223 Withholding - Public Employees Retirement
  • 224 Withholding Tax - County Local Option
  • 225 Principal Congressional
  • 226 Interest Congressional
  • 227 * Principal Cemetery Trust
  • 228 * Interest Cemetery Trust
  • 229 Surplus Tax
  • 230 Tax Sale Redemption
  • 231 Tax Sale Surplus
  • 232 Dog Tax Collections
  • 233 Surplus Dog
  • 234 Cumulative Reassessment
  • 235 County Welfare Administration
  • 236 County Hospital Care for the Indigent
  • 237 Supplemental Public Defender Services Fund
  • 238 Guardian Ad Litem and Special Advocate Services Fund
  • 239 County Medical Assistance to Wards Fund
  • 240 Children With Special Health Care Needs Fund
  • 241 County Extradition Fund
  • 242 Plat Book Fund

* The detail fund accounts under these fund controls should be identified through the assignment of sub-account numbers, using either a point system or second series of digits. For example, detail township poor relief accounts may be identified either as 207.1, 207.2, 207.3 or as 207-01, 207-02, 207-03, etc.

• 300 State Funds (Funds distributed or payable to the State)
  • 301 Fines and Forfeitures
  • 302 Gross Tax on Real Estate
  • 303 Inheritance Tax
  • 304 Overweight Vehicle Fines
  • 305 Family Violence and Victim Assistance
  • 306 Infraction Judgments
  • 307 Special Death Benefit
  • 308 State Fair Board Tax
  • 309 State Forestry Tax
• 400 Local Tax Distribution Funds
  • 401 Township Tax
  • 402 Township Civil Bond Tax
  • 403 Township Recreation Tax
  • 404 Township Fire Fighting Tax
  • 405 Township Cumulative Fire Equipment Tax
  • 406 Library Tax
  • 407 School General Tax
  • 408 School Debt Service Tax
  • 409 School Cumulative Building Tax
  • 410 Corporation Tax
  • 411 Corporation Bond Tax
  • 412 Corporation Cumulative Building Tax
  • 413 Motor Vehicle Highway - Street Tax
  • 414 Park and Recreation Tax
  • 415 Police Pension Tax
  • 416 Firemens' Pension Tax
  • 417 Conservancy District Tax
• 500 Federal Funds
  • 501 Crime Control (LEA)
  • 502 Federal Revenue Sharing Trust
• 600 Other Funds
  • 601 Sewage Charge Collections
  • 602 Barrett Law Collections
  • 603 Dog Tax Collections

As stated, the foregoing is only to illustrate the manner in which the code numbers should be assigned to each fund and, in the case of the County General Fund, the numbers assigned to each office or department within that fund. It is not necessary, except for the County General Fund (100 series), that the funds bear the same numbers as those listed herein; however, to facilitate posting ledgers and preparing the monthly financial statement they should be arranged in substantially the order listed.

The "500" group for Federal Funds is to be used where a federal grant requires that a separate fund be established. This group should not be confused with federal reimbursements on specific projects or programs where expenditures are made from a county fund and the fund reimbursed from a federal grant.

Under this prescribed uniform accounting system it is required that detail revenue (receipt) accounts be kept for the County General Fund, the County Welfare Fund and any other fund having a number of sources of receipts.

A two-digit series of account numbers has been established to identify the source of each type of receipt, within the following categories:

• 01-10 Taxes
• 11-30 Revenue From State and Federal Sources
• 31-80 Revenue From Local Sources
• 81-90 Revenue From Other Sources
• 91-99 Other Receipts

In small counties where the receipts from any source are limited in number it will be permissible to delete a separate account for each source with the receipts being accounted for as "other revenue" or "other receipts" under each of the foregoing classifications. Also, it will be permissible in any county to maintain a single ledger account for "taxes" providing the source of such tax is indicated on that ledger sheet in keeping with the detail revenue accounts. It will be required, however, that detail receipt accounts be kept within the County General Fund and the County Welfare Fund for those sources of receipts having a number of transactions, such as those covering monthly receipts from county officials, since such details are necessary in connection with the preparation of budgets, preparing the annual financial report and in the audit of the records of county offices and departments.

The chart of accounts which follows illustrates the manner in which the detail revenue accounts might be assigned. It will not be required under the system that the same numbers be assigned as shown in the chart of accounts, since the sources of receipts will vary considerably from one county to another; however, as stated, the revenue should be categorized in the manner set out in the chart of accounts, with detail revenue or receipt accounts maintained in substantially the manner shown.

• 01 to 10 Taxes
  • 01 Property Tax
  • 02 ________________________________
  • 03 License Excise Tax
  • 04 Local Option Tax
  • 05 In Lieu of Tax - Housing Authorities
  • 06 Financial Institutions Tax
• 11 to 30 Revenue From State and Federal Sources
  • 11 Alcoholic Beverage Excise License Fees
  • 12 Inheritance Tax - County's Share
  • 13 Intangibles Tax - County's Share
  • 14 Surplus State Dog Fund
  • 15 ________________________________
  • 16 Board of Education - Tuition Support
  • 17 Motor Vehicle Highway Distribution
  • 18 Local Road and Street Distribution
  • 19 Highway Engineer's Salary
  • 20 Care of Federal Prisoners
  • 21 Civil Defense - Federal Matching Funds
  • 22 ________________________________
  • 23 ________________________________
  • 24 ________________________________
  • 25 ________________________________
  • 26 ________________________________
  • 27 ________________________________
  • 28 ________________________________
  • 29 Welfare Department
    • 29.1 Dependent Children in Custody of Relatives
    • 29.2 Burial Allowance
    • 29.3 Federal Child Welfare
    • 29.4 ___________________________
    • 29.5 ___________________________
    • 30 Other State and Federal Revenue
  • 31 to 80 Revenue From Local Sources
    • 31 Clerk of Circuit Court
    • 32 County Auditor
    • 33 County Treasurer - Demand Fees
    • 34 County Treasurer - Tax Sale Costs
    • 35 County Recorder
    • 36 County Sheriff
    • 37 County Surveyor
    • 38 Prosecuting Attorney
    • 39 Plan Commission
    • 40 Building Department
    • 41 County Home - Care of Residents
    • 42 County Home - Other Revenue
    • 43 County Health Department (Health Fund)
    • 44 Rental of County Property
    • 45 Sale of County Property
    • 46 Unclaimed Surplus Tax
    • 47 Unclaimed Tax Sale Surplus
    • 48 to 79 (Reserved for Other Detail Sources)
    • 80 Other Revenue From Local Sources
  • 81 to 90 Revenue From Other Sources
    • 81 Change of Venue
    • 82 Examination of Records
    • 83 Tax Refunds
    • 84 Interest on Investments
    • 85 Repayments of Welfare Assistance
      • 85.1 Old Age Assistance and Burials
      • 85.2 Assistance to Dependent Children in Custody of Relatives and Burials
      • 85.3 Disabled Assistance and Burials
      • 85.4 Blind Assistance and Burials
      • 85.5 Refunds of Medicaid
      • 85.6 Other Repayments
      • 86 Warrants Returned to Fund
      • 87 ________________________________
      • 88 ________________________________
      • 89 Other Refunds and Reimbursements
      • 90 Other Revenue
    • 91 to 99 Other Receipts
      • 91 Investments Matured or Sold (Principal)
      • 92 Repayment of Petty Cash and Change Funds
      • 93 Repayment of Loans and Advances to Other Funds
      • 94 Temporary Loans and Advances (Principal)
      • 95 Repayment of Poor Relief Advances
      • 96 ________________________________
      • 97 ________________________________
      • 98 ________________________________
      • 99 Other Receipts

Under the prescribed budget system, the following four (4) major budget classifications have been established:

• 100 Personal Services
• 200 Supplies
• 300 Other Services and Charges
• 400 Capital Outlays

Each of the above major budget classifications is further divided into minor expense classifications, herein referred to as "expenditure accounts."

The major budget classifications are described in the section entitled "Budgets and Appropriations" and, since the expenditure account numbers are listed in the budget forms, they are not included in the manual.

In addition to the expenditure account numbers listed in the budget forms, account numbers have also been assigned to "non-budgeted expenditures," covering items which may be disbursed without appropriation. The following numbers have been assigned to these accounts:

• 500 Non-Budgeted Expenditures
  • 510 Investments Purchased
  • 520 Petty Cash and Change Fund Advances
  • 530 Loans and Advances to Other Funds (Except Poor Relief)
  • 540 Repayment of Temporary Loans and Advances (Principal)
  • 550 Poor Relief Advances
  • 560 Refunds of Repayments (Welfare Department)
    • 561 Old Age Assistance and Burials
    • 562 Assistance to Dependent Children in Custody of Relatives and Burials
    • 563 Disabled Assistance and Burials
    • 564 Blind Assistance and Burials
    • 565 Refunds of Medicaid
    • 566 Other Refunds of Repayments
  • 570 Refunds of Revenue
  • 580 _____________________________________
  • 590 Other (Detail)
    • 591 ________________________________
    • 592 ________________________________
    • 593 ________________________________

It is important that detail accounts for all disbursements be maintained within each budgeted fund, so that the total of all such accounts will agree with the disbursements entered in the fund control account. Therefore, where an expenditure is made for any non-budgeted purpose, it must be classified and posted to one of the accounts under the "500" classification.

Poor Relief Appropriations

The foregoing chart of accounts does not include a numerical coding system for appropriations for township poor relief, since the appropriations are accounted for in the Register of Poor Relief Claims, County Form PR-4; however, it is permissible to assign numbers to the appropriation accounts, if deemed desirable in any county.

Federal Projects

On some federal projects it may be required that detail budget and/or expenditure accounts be set up for each project budget item. The chart of accounts does not include a numerical coding system for federal projects since the detail budget accounts and their terminology will vary on each project; however, in all such instances, the detail budget accounts should be assigned expenditure account numbers in the same manner as other expenditure accounts. Also, the amount allotted under each such budget classification should be accounted for in the same manner as an appropriation from county funds, to insure that the allotment is not exceeded.

The Ledger of Receipts, Appropriations and Disbursements, or "General Ledger," as the title indicates, is the record in which an accounting is made for all receipts, appropriations, disbursements and fund balances. While subsidiary ledgers are prescribed to account for certain funds, this in no way lessens the requirement that controls over such funds also be carried in the General Ledger. This is more fully covered in the instructions that follow.

The forms prescribed to be kept as a part of the General Ledger consist of the following:

Fund Ledger and Ledger of Receipts (Form 24B) - This form serves a dual purpose. It serves as a cash control account reflecting the receipts, disbursements and balances in each fund and also as a detail receipt account or as a subaccount where the system provides for supporting accounts in any fund.

Ledger of Appropriations, Encumbrances, Disbursements and Balances (Form 24A) - This form is used to account for appropriations, encumbrances and disbursements in those funds where expenditures are limited by law to appropriations lawfully made and approved.

Detailed Ledger of Disbursements (Form 24C) - This form is used to account for disbursements by minor expense classifications under the major budget and appropriation accounts for which detail accounts are required to be kept.

Allocation of License Excise Tax (Form 24ET) - This form is used to record the allocation of license excise tax to the respective taxing districts and the totals available for distribution at the close of each month. The totals must at all times agree with the collections recorded on Form 24F discussed below. These ledger sheets should immediately follow ledger Form 24F, with a separate ledger sheet or sheets to be used for each month's collections. Counties with machine accounting systems may maintain these ledger sheets in a subsidiary ledger, if deemed desirable.

Record of Annual License Excise Tax (Form 24F) - This form is used to account for collections of license excise tax received from the State Bureau of Motor Vehicles branch offices and the State Aeronautics Commission and for the distribution of such collections at each semiannual settlement. It also serves as a control account over ledger Forms 24ET. This record serves only as a memorandum ledger account, to be reconciled with the county treasurer's records at the time of each settlement, and is not to be confused with the fund accounts carried in the General Ledger on Form 24B.

Surplus Tax Fund Ledger (Form 65-STF) - This form serves a dual purpose, in that it serves as a report from the county treasurer of surplus tax collected and settled for at each semiannual settlement and also as a county auditor's detail ledger account of the items received and disbursed. When surplus tax is reported and settled for by the treasurer the ledger sheet or sheets shall be inserted in the General Ledger immediately following the control account (Form 24B) for the Surplus Tax Fund.

Dividing General Ledger

Where, because of the large number of ledger accounts, it is deemed desirable to divide the General Ledger into two or more ledgers, it is permissible to do so; however, it should be so divided that all of the accounts pertaining to a particular fund be included in the same ledger. For example, it may be desirable to have one General Ledger for the County General Fund, because of the large number of appropriation and detail expense accounts, with a second General Ledger for all other funds and accounts; but, do not divide the ledgers in such a manner that parts of the County General Fund accounts will be in both ledgers.

The foregoing applies only to manually kept records. In those counties where machine accounting systems have been installed it may be necessary to segregate the accounts into separate groups to facilitate posting, such as (1) Fund (Cash) Accounts; (2) Detail Receipt Accounts; (3) Appropriation, Encumbrance and Disbursement Accounts; and (4) Detail Disbursement Accounts. Any systematic arrangement of the accounts which may be necessary to facilitate posting with the accounting machines in use will meet with approval of this board, providing it produces the same records as required in a manual system.

In addition to the General Ledger, the following subsidiary ledgers are required to be kept, sup-porting accounts in the General Ledger.

Township Poor Relief Ledger (Form PR-1) - This form is used to account for the receipts, disbursements, and balances in each township poor relief fund. A separate ledger sheet must be set up for each township and the totals of the detail accounts for all townships must agree with the "County Poor Fund" control account carried in the General Ledger.

Township Poor Bond Redemption Ledger (Form PR-2) - This form is to be kept in the same manner as the township poor relief ledger, except that it is to be used only to account for the redemption of bonds issued for poor relief purposes. A separate account is to be kept for each township and the total of all such accounts should agree with the "County Poor Bond Redemption Fund" control account in the General Ledger.

Ledger - Sale of Poor Bonds (Form PR-3) - This form is to be used to account for funds received from the sale of poor bonds. A separate account is to be set up for each township and the totals of the receipts, disbursements, and balances for all townships should agree with the "Sale of Poor Bonds Fund" control account in the General Ledger.

The law contemplates that when advancement fund bonds are issued by the county the funds be advanced only as needed by the townships. For that reason this form has been prescribed to account for the bond proceeds and for transfers to the Township Poor Relief Fund as funds are needed.

Register of Poor Relief Claims (Form PR-4) - This form is used to register claims submitted by township trustees for payment. While it is not strictly a ledger form, it is used to account for the detail appropriations supporting disbursements from the Township Poor Relief Fund. A separate register is required for each township and the total disbursements posted to the register should agree with the disbursements in payment of claims posted to the Township Poor Relief Fund (Form PR-1).

General Drain Improvement Fund Ledger (Form 63C) - This form is used to account for receipts, disbursements, and balances for each lawfully established drain, which is a part of the General Drain Improvement Fund. It is also used to account for assessments and collections on each drain. The totals of receipts, disbursements, and balances of all such drains must agree with the "General Drain Improvement Fund" control account carried in the General Ledger. Detail instructions for keeping this ledger will be found in the "Accounting Manual for Public Drainage Funds."

Drainage Maintenance Fund (Form 63CM) - This form is used to account for the receipts, disbursements, and balances for each drainage maintenance fund. It is also used to account for assessments and collections for maintenance. The totals of receipts, disbursements, and balances in all such accounts must agree with the "Drainage Maintenance Fund" control account in the General Ledger.

Register of Investments (Form 350) - This form is used to account for investments purchased and the receipts from such investments. The accounting system provides for "memorandum" accounts to be carried in the Auditor's General Ledger for investments purchased, matured or sold, using Form 24B, and this register should contain details supporting the investment accounts in the General Ledger.

A new ledger must be set up at the beginning of each calendar year. Do not remove and bring forward any ledger sheets from the prior year's ledger, except for the detail accounts supporting the balance in the Surplus Tax Fund (Form 65-STF). The latter exception is made only to enable a complete record of the surplus items of each settlement to be maintained as a part of the General Ledger until all items are disbursed and to eliminate the need to recopy the detail items each year.

Fund Ledger Accounts

A separate ledger sheet (Form 24B) must be set up for each fund appearing on the Financial Statement (Form 61). In addition, where the fund carried on the financial statement is a control account over detail "funds" a separate ledger sheet will also be required for each detail fund account. An example is cemetery trust funds where the financial statement should carry only the control account, with separate ledger accounts being maintained for the detail cemetery trust funds.

In opening the ledger the balance in each fund at the close of the prior calendar year shall be brought forward and entered in the "Balance" column of the corresponding sheet of the new ledger, showing the date of "January 1" and entering in the description column the words "Brought Forward." (See Exhibits 1 and 2, Page 6-12) The same procedure must be followed for any detail fund accounts over which a fund control account is maintained.

Detail Receipt Accounts

Detail receipt accounts shall be set up on Form 24B for each source of receipts in keeping with the chart of accounts.. Detail receipt accounts will be required for the County General Fund, the County Welfare Fund and any other fund having a number of sources of receipts. (See Exhibit 3, Page 6-13)

Appropriation Accounts

A separate ledger sheet (Form 24A) must be set up for each appropriation appearing in the Ordinance for Appropriations adopted by the county council, or as modified as a result of action taken thereon by the county board of tax adjustment and the State Board of Tax Commissioners. It is not permissible under the budget laws to combine two or more appropriations appearing in the ordinance into a single appropriation account.

In opening each ledger sheet enter the amount of the appropriation in the "Amount" column of the section headed "Appropriation" showing the date "January 1." If any appropriations for the prior year were lawfully encumbered by contract, bring forward the amounts thereof to the extent of the encumbrances and enter such amounts in the same manner, except that you should also enter in the description column the words "Brought Forward" and enter a detail of the purchase orders "issued" and the total "outstanding" in the encumbrances section of each ledger sheet affected. (See Exhibit 6, Page 6-14)

Appropriation Control Account

In all funds where expenditures are controlled by appropriations, an "Appropriation Control" account shall be set up for each such fund in the General Ledger. This control account will carry the total appropriations, including appropriations brought forward to cover encumbrances, for the particular fund.

The purpose of this account is not only to control the accuracy of postings and the extension of balances in the appropriation accounts but will also serve to show at all times the total unexpended appropriations for the calendar year. The account is also useful in preparing budgets and in preparing financial statements required to be submitted in support of additional appropriations requested for each fund. (See Exhibit 4, Page 6-13)

Detail Disbursement Accounts

A separate ledger sheet (Form 24C) must be set up for each appropriation where the prescribed budget estimate forms provide for detail expenditure accounts. Since this form will be used only to account for "disbursements" for each expenditure account, all that is necessary is to enter the headings on the form showing the expenditure account number and a brief description of its purpose. In setting up the ledger you should be guided by the detail accounts carried in the prior year's ledger, although additional detail accounts may need to be added during the year. (See Exhibits 7 and 8, Page 6-15)

Where expenditures from an appropriation fall entirely within a single detail expenditure classification it is not required that the appropriation account be supported by a ledger Form 24C. For example, if an appropriation for "200-Supplies" is used entirely for office supplies or an appropriation for "100- Personal Services" is used only for the officer's salary the appropriation account need not be supported by this form. However, where disbursements from an appropriation fall within two or more detail expenditure classifications the form must be used.

In those counties where a machine accounting system has been installed, either a subsidiary "Detailed Ledger of Disbursements" shall be maintained on County Form 24C or a separate ledger sheet shall be maintained for each expenditure account using the same form as used for appropriations, encumbrances, and disbursements; however, as previously stated, the detail expenditure accounts will record only the disbursements and not the appropriations and encumbrances.

Other General Ledger Accounts

The surplus tax fund ledger sheets, Form 65-STF, as previously mentioned, should be removed from the prior year's ledger and transferred to the new ledger, to provide a continuous record of detail surplus tax items. Where the volume of such items is such as to make it desirable to maintain a subsidiary ledger of all such ledger sheets this is permissible; however, in all instances a "Control" account of the Surplus Tax Fund shall be maintained in the General Ledger on Form 24B.

Arrangement of General Ledger Accounts

All ledger accounts should be systematically arranged in the ledger to facilitate locating and posting the accounts. The accounts should be arranged in the following manner for each fund:

• Fund Control Account
• Detail Receipt Accounts - arranged in accordance with the numerical coding system in the chart of accounts.
• Appropriation Control
• Appropriation Accounts - with each such appropriation account being followed by detail disbursements accounts where the appropriation requires detail accounts to be kept.

As previously stated, all ledger sheets should be arranged in the same manner as the funds appear on the financial statement and, in the case of the County General Fund, in the order the offices and departments are listed in the ordinance for appropriations.

The ledger sheets for license excise tax should appear at the close of the fund ledger accounts.

Subsidiary Ledgers

The procedure set out herein shall also be followed for the subsidiary ledgers discussed on pages 6-2 and 6-3, in that the balance in each such fund shall be brought forward from the prior year's ledger. The only exception is the investments ledger, Form 350, which is a continuing register and is not to be opened with a new set of accounts or register sheets at the beginning of the year; however, it will be required that a "Memorandum" account of investments be carried in the General Ledger for funds invested, with the principal balance of such investments to be brought forward on January 1.

Divider Sheets and Index Tabs

The use of divider sheets and index tabs for each fund (or group of funds), for the revenue (receipts) section of the ledger, and for each office or department within the County General Fund, is strongly recommended. Not only will this facilitate locating and posting the ledger accounts but will materially assist others who have reason to refer to the ledger. Accounts should also be set up on Forms 24ET and 24F, described on pages 6-1 and 6-2 for bank, building and loan and license excise tax. In opening the account, any balance not settled for in the prior calendar year shall be brought forward and entered in the applicable ledger accounts. As previously mentioned, these accounts are not "fund" accounts, within the definition of that term, and do not appear on the monthly financial statement, but are used only to account for such receipts and the amounts settled for by the county treasurer at each semiannual settlement. The divider sheets and tabs should be left in each ledger and not transferred and used in a succeeding year, at least until the records are audited. The use of inexpensive plastic (acetate) index tabs is recommended instead of gold leaf leather tabs because of the limited expense involved.

Posting to ledger accounts should be made directly from the source documents, such as copies of purchase orders, copies of applications to pay (receipts) and duplicate copies of warrants; however, in the case of payrolls, where a payroll fund has been established for convenience in issuing payroll warrants, posting will be made from the detail payroll vouchers and the payroll summaries for each fund. There may also be other instances where it will be necessary to refer to the claims or other documents in posting warrants and such practice is acceptable, providing the posting entries are proved to the amount of each warrant issued.

Receipts

In all instances, receipts should be posted directly from the copies of the applications to pay (receipts). The receipts should clearly show thereon the source and the applicable funds and accounts, including the numerical codes for such funds and accounts, to be posted.

In the case of the County General Fund, the County Welfare Fund and any other fund for which detail revenue (receipt) accounts are maintained, posting will be made only to the detail accounts, with the total receipts posted to all such accounts to be entered on the fund control at the close of the calendar month. (See Exhibits 1 and 3, Pages 6-12 and 6-13) Where no detail revenue accounts are required to be kept, posting of the receipts will be made directly to the fund account. (See Exhibit 2, Page 6-12) Receipts may be grouped and posted in one amount if issued on the same date and are in numerical sequence; however, if a fund has two or more sources of receipts and detail revenue accounts are not maintained for the fund, the source of the receipt should be entered in the column headed "Description" following the receipt number, as shown in Exhibit 2.

Purchase Orders

Where a purchase order is issued against an appropriation, it will be posted as an encumbrance to the appropriation account (Form 24A). When the purchase order is later paid, it will then be liquidated in the same amount for which the order was issued, notwithstanding that the actual disbursement may be more or less than the amount for which the order was issued. This is illustrated in Exhibit 6, Page 6-14.

The encumbrance section of the appropriation account is merely to record the purchase orders issued and liquidated, showing the outstanding encumbrances at the close of any period. To determine the unencumbered appropriation balance at any time, it is necessary to deduct the total of "outstanding" encumbrances from the "balance" of the appropriation shown on the ledger account.

Disbursements

As stated, disbursements should be posted from the duplicate warrants and, where necessary, from the claims supporting such warrants. In those funds subject to appropriations the disbursement shall be posted directly to the appropriations and non-budgeted accounts of the applicable fund. At the close of the month the amounts posted to all such amounts will then be added, footed and posted to the fund control. (See Exhibit 1, Page 6-12) The totals posted to the budget classifications, 100 to 400 accounts, will also be posted to the appropriation control account for that fund. (See Exhibit 4, Page 6-13)

In posting disbursements to appropriation accounts, warrants may be grouped and entered in a single amount, provided they were issued on the same date and are in a continuous numerical sequence. (See Exhibits 5 and 6, Page 6-14) However, where purchase orders are issued against an appropriation and the encumbrance section of the ledger sheet is used, the warrants will have to be posted in detail to identify the specific purchase order liquidated by the payment, as illustrated in Exhibit 6.

Detail Disbursements Accounts

In addition to posting the appropriation account, disbursements shall also be posted to the detail disbursement accounts (or minor expenditure accounts) under each appropriation for which such detail is required. Posting may be in detail by each warrant, or warrants may be group posted if issued on the same date and are in numerical sequence. (See Exhibits 7 and 8, Page 6-15)

Subsidiary Ledgers

The posting instructions in this section equally apply to all subsidiary ledgers supporting the General Ledger (Ledger of Receipts, Appropriations and Disbursements) such as the Township Poor Relief Ledgers and the Drainage Ledgers; however, the following instructions should be observed with respect to the latter ledgers:

1. Township Poor Relief Ledgers - Posting of receipts and disbursements should be made directly to each individual township account (Ledger Forms PR-1, PR-2 or PR-3), with only a "Control" account to be carried in the General Ledger on Form 24B over each applicable fund. Posting to the fund control may be made in total for each month, from the totals posted to the detail township accounts, as shown in Exhibit 1 for the County General Fund, or may be posted from the receipts and duplicate warrants. Appropriations for township poor relief are accounted for in the "Register of Poor Relief Claims," Form PR-4, and are not accounted for by the use of appropriation ledger Form 24A. See Exhibit 9, Page 6-16, for instructions in posting poor relief accounts.
2. Drainage Ledgers - The General Ledger should contain a "Control" account on ledger Form 24B for the General Drain Improvement Fund and for the Drainage Maintenance Fund. The detail drainage accounts for each drain will be maintained on drainage ledger Forms 63C and 63CM, and the totals of all such detail accounts must agree with the respective fund control account in the General Ledger. The manner in which drainage funds should be handled and accounted for are fully covered in the "Accounting Manual for Public Drainage Funds" and, therefore, are not covered in this manual.

Posting Appropriations

The opening of appropriation ledger accounts is discussed on Pages 6-4 and the posting to such accounts is illustrated in Exhibits 4, 5, and 6, Pages 6-13 and 6-14.

The posting of appropriations from the "Ordinance of Appropriations" adopted in conjunction with the annual budget and the posting of emergency (additional) appropriations should offer no problem if the discussion on Pages 6-4 and 6-5 and the exhibits are carefully observed. Experience has shown, however, that there is a lack of uniformity in posting transfers from the appropriation account to another appropriation account.

Pursuant to IC 6-1.1-18-6 transfers of appropriations may be made from one major budget classification to another within a department or office; also, pursuant to this law, additional appropriations may be made which are wholly or partially covered by reductions in existing appropriations.

In all instances where transfers or additional appropriations are made and existing appropriations reduced, entries should be made of the additional or increased appropriations and the reductions in the "Amount" column of the appropriation section of the ledger sheet. Simply enter the additional or increased appropriation in that column, with the reductions to be entered either in red ink or by a minus (-) entry. This is illustrated in Exhibit 4, Page 6-13. Do not make any appropriation entries in the disbursements column or handle transfers and/or reductions in appropriations in any other manner.

Posting Refunds of Expenditures

Pursuant to IC 6-1.1-18-9, when a refund of an erroneous or excess disbursement is made within the current budget year, such refund may be credited to the appropriation from which the disbursement was made; however, where the refund is for an expenditure made in a prior year, there is no authority to credit the appropriation.

Pursuant to IC 6-1.1-18-7, when any funds are received from an insurance company because of any damage to the property of the county and when the appropriating body (county council) approves the expenditure of such proceeds to repair or replace said property, such proceeds are considered to be appropriated for such purpose provided the funds are expended within twelve months following their receipt.

When refunds are made of excess or erroneous disbursements within the same current budget year, or funds are received from an insurance company, and the use of such funds is authorized to be used to repair or replace the damaged property, pursuant to the law cited, the receipt should be posted in the same manner as any other receipt, by entering it in the detail receipt accounts and to the fund control; and, in addition thereto, the receipt should be posted to the applicable appropriation account and appropriation control account. This is illustrated in Exhibit 4, Page 6-13.

Correcting Entries

Errors made in posting records will fall in two categories: (1) those made in the current fiscal (calendar) year and (2) those made in a prior fiscal year. Errors made also affect appropriation accounts, receipt accounts or fund accounts and require different handling in each instance.

Where an error is made and the increase affects only appropriation, detail disbursement or detail receipt accounts, without affecting the fund (cash) account, correction should be made under the current date of correction by posting the item in the correct account and by reversing the entry in the account to which it was erroneously posted by entering the amount in red ink or as a minus (-) amount. In addition, proper notation should be made to show that the entry is to "correct posting error," making a cross reference to each applicable account and, if necessary, the source document from which the entry was originally posted should be noted to show the error and the date it was corrected. Do not attempt to correct such errors by changing the original entries and all footings and balances to date; a better record is shown if the correction is enter under the current date it is made.

Where an error is made in posting the fund (cash) accounts, the correcting entry will affect the records of the county treasurer and require a different handling than for appropriation and detail receipt accounts. If the error is made and corrected in the same current budget year, it may be corrected in the same manner as outlined for appropriation and receipt accounts, providing the correcting entry to be made is given the county treasurer and can be handled on the treasurer's records without the issuance of a warrant and receipt. In such instances, the correcting entry may be made by posting the amount under current date to the proper account and by reversing the erroneous posting by entry in red ink or as a minus (-) amount, in the same manner as outlined for corrections in appropriation and receipt accounts. If, however, the correction cannot be handled in this manner by the treasurer, because of the entries affecting more than one bank account or other reason, the correction should be made by the issuance of a warrant and receipt in the same manner as discussed under "Transfers Between Funds" in Section G.

Where an error is made in a prior year and it affects the fund accounts, it can only be corrected by the issuance of a warrant and receipt. Errors found in posting appropriation and receipt accounts of a prior year should not be corrected after the records for that year are closed and the financial statements and reports have been made. In such instances, simply enter a note on each of the applicable ledger sheets of the existence of the error and, if it affected the fund accounts, show the date the fund accounts were corrected.

All ledgers must be footed and proved at the close of each month. The footings should be entered in pencil on all ledger sheets, showing the totals for the month and the totals for the year to date, except that only year to date totals need be entered on the detail disbursement accounts, Form 24C. (See Exhibits 1 to 9, Pages 6-12 to 6-16) In proving the ledger at the close of each month, the following steps should be taken:

1. Add the detail receipt accounts in those funds where such details are kept and enter the total receipts in the fund control.
2. Add the receipts entered in the controls of all funds and see that the total agrees with the total applications to pay (receipts) issued during the month. In making such proof, add the applications to pay and enter the total thereof after the last application issued for the month.
3. Add the disbursements posted to all appropriation accounts and to the non-budgeted accounts for each fund and see that it agrees with the total posted to the fund control.
4. Add the disbursements posted to the fund controls of all funds and see that the total agrees with the total of the warrants issued. In making such proof, the duplicate warrants should be added and the total thereof entered in the register of warrants after the last warrant issued for the month.
5. In those funds subject to appropriation verify that the total disbursements from the appropriation accounts (account numbers 100 through 400) agree with the amount posted to the appropriation control account. Additional appropriations or reductions in appropriations should also be added and proved to entries in the appropriation control account. After this proof is made, also verify that the balances in all appropriations agree with the unexpended balance shown on the appropriation control account.
6. Verify that the totals of the detail disbursement accounts agree with the total disbursements posted to each appropriation account.
7. Prepare the monthly financial statement from the Funds Ledger (Form 24B), proving the totals of receipts and disbursements for the month to the register of receipts (application to pay) and the registers of warrants. Verify the financial statement with the statement prepared by the county treasurer.

If a political subdivision receives state grant money requiring local matching money, the political subdivision shall create a special fund and deposit the grant money and matching money into the special fund. The money in the fund may be used only for the purposes of the grant.

If a political subdivision completes the project for which the grant money was provided and money remains in the fund:

1. The political subdivision shall transfer the state’s share of the remaining money to the Treasurer of State for deposit in the fund from which the grant was made; and
2. The political subdivision’s pro rata share of the remaining money reverts to the political subdivision’s general fund. [IC 36-1-18-12]

All money payable to the county treasury must be received and deposited by the county treasurer. The only money the auditor is authorized to accept is fees for services, discussed in this section under "Auditor's Fees," which are deposited monthly with the treasurer.

All money, except for taxes and special assessments paid direct to the treasurer, shall be receipted into the records by the use of the four-part Form 20-21, "Combination Quietus, Application to Pay, Treasurer's Receipt and Auditor's Copy." This form, which serves as the media for posting to the fund ledger accounts, is sometimes referred to in this manual as an "application to pay and quietus," as a "quietus" and as a "receipt."

The form is designed to meet the requirements of IC 36-2-9-12 and IC 36-2-10-10 and to insure proper accountability for all such receipts. The following steps should be followed:

1. The county auditor prepares the four-part form, to show the date, fund or funds to be credited, amount, the person applying to pay the money into the county treasury, and in the space "on account of" shall show the source of the payment and the specific account number or numbers to be credited.
2. The auditor hands to such person the "Application to Pay" and "Receipt" copies and the person makes payment direct to the treasurer, receiving from the treasurer the signed receipt copy. The treasurer retains the application to pay for the records of that office.
3. The person returns the receipt copy to the auditor who thereupon issues the "Quietus" to such person to complete the transaction. The receipt copy is retained for the auditor's records.

There will be instances, such as state distributions and payments received by mail, where the auditor will have to deliver the payment to the treasurer. However, this procedure should be avoided where possible to not only comply with the law but to effect proper internal control over all such receipts.

The form of Quietus, Application to Pay, Treasurer's Receipt and Auditor's Copy is required to be prenumbered by the printer. Under no circumstances shall unnumbered receipts be purchased or used, nor shall any other form of receipt be used by the auditor.

Reports of Officials

When any public official pays fees or other collections into the county treasury, the remittance must be accompanied with a prescribed report form. The forms required to be used by the city and town courts are listed on page 4-5. All other county offices and departments should report collections on General Form 362. It is important such reports be filed, not only to meet statutory requirements but so the sources of receipts are identified for proper posting to the fund and detail receipt accounts.

Many other payments are also supported by reports or will be accompanied with some other type of remittance advice. All reports or other supporting documents which accompany payments must be carefully preserved and filed in a systematic manner as a part of the records of the office.

When a payment is not supported by a report or other document, be sure to enter in the space "on account of" a complete description of the source of the receipt. For example, if it is a refund, refer to the specific claim or warrant on which the refund is based or show the reason for the refund.

Transfers Between Funds

When funds are transferred from one fund to another fund, such as loans, advances, reimbursements and payroll deductions, a warrant should be issued in favor of the "Treasurer of _______ County" and an application to pay, receipt and quietus should be immediately issued in favor of the treasurer for the receipt of such funds. Both the warrant and the receipt must clearly show the funds and accounts to be charged and credited and the reason for the transfer.

The use of "Journal Vouchers" to effect fund transfers is not authorized. Experience has shown that a clearer and more accurate record is provided where transfers are made by warrant and receipt and this procedure materially assists in reconciling receipts and disbursements in the treasurer's office with the records of depositories; also, there are instances where a transfer will affect depository accounts which precludes the use of a journal voucher.

Auditor's Fees

All fees received by the county auditor for services of that office are the property of the county and shall be paid into the county treasury at the close of each month. [IC 36-2-7-2]

The laws provide for fees to be charged by the auditor for the following services:

1. For each application for exemption filed on Form No. 136 prescribed by State Board of Tax Commissioners, two dollars ($2.00). [IC 6-1.1-11-10]
2. The fiscal body shall establish a fee schedule for the certification, copying, or facsimile machine transmission of documents. The fee may not exceed the actual cost of certifying, copying, or facsimile transmission of the document by the agency and the fee must be uniform throughout the public agency and uniform to all purchasers. [IC 5-14-3-8]
3. If authorized by an ordinance enacted by the Board of County Commissioners, not to exceed $5.00 for each endorsement made on a deed to be recorded to be receipted to the Plat Book Fund. [IC 36-2-11-14 and IC 36-2-9-18]

Auditor's Fee Book

All fees collected shall be entered in the Auditor's Fee Book, Form No. 1, the fees totaled at the close of the month and paid into the county treasury by application to pay and quietus. Fees collected may be paid in more often, if desired, such as during the period of collecting fees for applications for mortgage deductions.

All disbursements must be made on warrants issued by the county auditor and countersigned by the county treasurer.

Warrant Forms

The following warrant forms have been prescribed for use of counties:

• Form 16 Warrant and Warrant Register
• Form 16PR Payroll Warrant and Register Form
• 16W Welfare Warrant and Register

Form 16 is to be used for all disbursements, except for payrolls and disbursements from county welfare funds; Form 16PR is to be used for payrolls; and Form 16W for all welfare disbursements, except for payrolls of the welfare department which shall be paid on Form 16PR. These forms shall be used in all counties, unless alternate forms have been approved for use of the county.

Forms 16 and 16W are three-part forms consisting of the original for the payee, duplicate for the county treasurer and auditor's copy. Form 16PR is a four-part form, consisting of the original for the payee, a non-negotiable duplicate for the payee as an earnings statement, triplicate for the county treasurer and auditor's copy. The auditor's copies are to be placed in a post binder and such bound copies are generally referred to as the "Register of Warrants."

Where two or more banks have been designated as depositories for county funds, a separate series of warrants may need to be printed for each depository to meet Federal Reserve Board requirements for encoding bank routing numbers and this is permissible, providing the format of the prescribed or approved form is not changed. In such instances, a prefix number or letter should be used with the warrant numbers of each series to distinguish the warrants from other series."

Each series of warrants shall be prenumbered by the printer and issued in numerical sequence. It is not necessary to begin a new series of numbers each calendar year; in fact, less confusion will exist if a continuous numerical series is used for three or more years before beginning a new series with number one (1). The numerical series may be changed at any time during a year, if desired. Under no circum-stances should unnumbered warrants be purchased and care should be taken to safeguard the supply of warrants to avoid their falling into unauthorized hands.

Authority for Issuance

The auditor is responsible for the issuance of each warrant and must determine that it is supported by a proper claim, duly filed and allowed in the manner provided by law, or that other statutory authority exists for its issuance. The statutory requirements to be met in the issuance of warrants are more fully covered in other sections.

Funds and Appropriations

Each warrant must show the fund on which it is drawn and, if applicable, the appropriation account or accounts to be charged. It is unlawful to overdraw any fund or to issue a warrant in excess of the appropriation available, where an appropriation is required. Penalties are provided in IC 36-2-6-12 where an auditor is convicted of violating these requirements.

For further information regarding appropriations, including instances where warrants may be issued without appropriation, see the section entitled "Budgets and Appropriations."

Transfers Between Funds

When funds are transferred from one fund to another fund, it should be made by issuance of a warrant and a receipt. See page 6-18 for instructions in handling transfers between funds.

Transfers Between Bank Accounts

Occasionally it may be necessary for the county treasurer to transfer funds from one depository to another. If such a situation occurs and a request is made by the treasurer, a county warrant should be used to effect the transfer. The warrant should be made payable to "(Name of Depository) for deposit only to the account of the Treasurer of ______________ County," and should clearly show on its face that it is for "Transfer of Funds Between Depositories." The warrant is not to be posted to the ledger accounts as a receipt or a disbursement, since its only purpose is to transfer funds between banks. The warrant will, however, affect the records of the county treasurer and shall be entered as a withdrawal and as a deposit in the Daily Balance of Cash and Depositories record in that office, to the accounts of the applicable depositories.

Cancellation of Warrants

When a warrant is not to be used for the purpose intended or for any other reason is to be canceled or voided, it must be receipted back to the fund on which it was drawn by the use of an Application to Pay, Receipt and Quietus and accounted for on the records of the auditor and treasurer in the same manner as any other receipt. The receipt, in addition to showing the fund and account to be credited, must also show the warrant number or numbers.

In the case of a payroll warrant, from which deductions have been made, it will also be necessary that a warrant be drawn against each applicable payroll deduction fund. The warrant should be issued in favor of the county treasurer, describing thereon "Cancellation of Payroll Warrant No. _____" and must show the amount disbursed from each payroll deduction fund. The "net" payroll warrant and the warrant issued for the deductions must then be receipted into the records by application to pay and quietus, in the same manner as any other receipt, and credited to the fund from which the payroll was paid. In addition, appropriate entries must be made in the detail and control accounts of the "Employee's Earnings Record." The entries should be made in this record as of the date the warrant or warrants are receipted into the records and should be entered in red ink or as a minus (-) amounts.

If the payroll warrant was issued in a prior year, after withholding statements have been prepared and/or deductions remitted, the same procedure should be observed; however, in such case it will also require corrected withholding statements being issued and proper documents being submitted to the appropriate federal and state agencies to obtain credit for the excess deductions remitted.

Warrants Outstanding and Unpaid

Pursuant to IC 5-11-10.5 all warrants outstanding and unpaid for a period of two or more years, as of the last day of December of each year, are void. This law further provides that the county treasurer within 60 days thereafter shall prepare a list in triplicate of all such warrants, showing the date of issue of each warrant, the fund upon which it was drawn, the name of the payee, the amount of the warrant, and the total amount of the warrants for each fund. The original copy of such list shall be filed with the county board of finance, the duplicate filed with the auditor and the triplicate copy retained by the treasurer. Upon receipt of such list, the auditor shall issue an Application to Pay, Receipt and Quietus for such warrants, in the same manner as for any other receipt, and the warrants shall thereupon be removed by the treasurer from the outstanding list.

Warrants to be canceled pursuant to IC 5-11-10.5 will fall in two categories: (1) those that have not been claimed and are in physical custody of the auditor, and (2) those that have been lost or misplaced or for some other reason have never been submitted for payment by the depository. Regardless of the category in which the warrants fall, they shall be handled in the same manner on the treasurer's records by simply crediting the depository account of each of the depositories on which the warrants are outstanding, on the Treasurer's Daily Balance of Cash and Depositories record, and by removing the warrants from the outstanding list. Those warrants in physical custody of the auditor should then have entered on their face the words "Canceled and Receipted to Fund on Which Originally Drawn" showing the date and receipt number, and be firmly attached to the copy of each warrant in the auditor's Register of Warrants.

If any warrant shall be presented for payment which has been canceled pursuant to IC 5-11-10.5, the holder of the warrant shall deliver it to the auditor and shall file a claim stating that he/she is the owner of the warrant, that the money is justly due him/her and relating the circumstances that prevented the warrant from being presented for payment within a reasonable time. If the auditor shall find the claim in order, he/she shall issue a warrant against the fund to which the original warrant was receipted, without appropriation being made therefor.

Warrants Voided

The foregoing applies only to warrants issued and posted to the records and thereafter canceled. It does not apply to a warrant erroneously written which is voided before being issued and posted. In the latter case the word "VOID" should be written across the face of the warrant and each copy, the treasurer's copy given to that office, and the original warrant firmly attached to the copy of the Register of Warrants. It is also recommended that the signature of the auditor be torn-off to prevent the possible misuse of a voided warrant.

Issuance of Duplicate Warrant

When a county warrant is lost or for some other reason has not been presented for payment by the depository on which drawn, and evidence of this fact is submitted, the county auditor is authorized to issue a duplicate warrant to replace the original warrant; however, certain safeguards should be exercised before the duplicate warrant is issued, as recommended in the following outline:

1. The person, firm or corporation requesting the duplicate warrant should submit to the county auditor an affidavit setting out all pertinent information with reference to such war-rant. A separate affidavit should be furnished by the payee and by each party to whom it was endorsed. A suggested form of affidavit will be found on page 6-23.
2. Immediately upon receipt of the affidavit, the auditor should request the county treasurer to issue a stop payment order on the original warrant to the bank on which it was drawn.
3. Delay issuing the duplicate warrant until the warrants for the month in which the stop payment order was issued are returned by the bank and the county treasurer has verified that the original warrant has not been cashed.
4. Issue the duplicate warrant on the next warrant number of the current series, under current date (not the date it was originally issued), bearing the payee's name, amount and other details shown on the original warrant, but clearly indicate thereon that it is "issued to replace warrant number ___, dated ________, 20__." In this manner no problems should arise when the warrant is presented to the bank for payment, which sometimes happens when it is given the date and number of the original warrant on which payment was stopped. It is not permissible to have unnumbered warrants furnished by the printer for this purpose; always use the next warrant number in the current series but show thereon the warrant number it replaces.
5. The duplicate warrant is not to be posted to the auditor's ledgers since it is issued only for the purpose of replacing the original warrant. To identify it as a duplicate so it will not be posted and added with the disbursements for the month, simply circle the copy in the warrant register or otherwise identify it as a "Duplicate."

A duplicate warrant might, under emergency conditions, be issued within a short time after the stop payment order is given the bank where the bank furnishes a statement that they have checked the paid warrants to date and the warrant in question has not been paid; however, a safe position is to wait until the canceled warrants for the month in which the stop payment order was issued are returned by the bank and the county treasurer has verified the warrant has not been paid.

PROCEDURES
Replacement of Lost, Stolen, or Forged Assistance (AFDC, IV E Foster Care and Adoption Assistance) Warrants

Whenever a recipient notifies the county department of the loss or theft of his/her assistance warrant, the county bookkeeper should:

1. Issue a stop-payment order within seventy-two (72) hours of the notification of loss or theft from the recipient.
2. Inform the recipient that he must immediately complete and sign DPW Form 204, Affidavit for Issuance of Duplicate Warrant before a replacement warrant will be issued, and that failure to immediately execute said affidavit will delay the replacement of the warrant.
3. Request a replacement warrant from the county auditor within twenty-four (24) hours after DPW Form 204 is executed and notarized by the recipient.
4. Inform the recipient of the right to appeal to the State Department of Family and Social Services if a replacement warrant is not issued within seventeen (17) working days after the date the recipient signed the DPW Form 204. (470 IAC 2-4-12)

During the seventy-two (72) hour period allowed county departments for issuance of the stop-payment order, it should be determined that a warrant was actually mailed to the recipient and that adequate time for delivery of the warrant has passed. Under no circumstances should the county department refuse to allow the recipient to execute the affidavit when he/she requests to do so.

If the warrant has been cashed and the recipient believes that the signature is not his/her own (forged), a hand written letter stating this fact must be delivered to the county department.

If fraud is suspected, the county department should conduct an investigation. However, the issuance of a replacement warrant is NOT to be delayed because of the fraud investigation.

Note: If the payee did not receive payment, strike out paragraph 3b. If the payee and any subsequent endorser received payment, strike out paragraph 3a. In the latter instance the last party to whom the warrant was endorsed should complete paragraph 3a. A separate affidavit should be obtained from the payee and from each party to whom the warrant was endorsed.

The following forms have been prescribed for use of counties in connection with the payment of salaries and wages of county officers and employees:

County Highway Payroll Schedule (Form No. 2) - This form shall be used by the county highway department in submitting payrolls, regardless of the fund from which the payroll is to be paid. The form contains printed instructions to be observed in its preparation and use. (See page 6-33 for copy of form.)

Payroll Schedule and Voucher (Form No. 99) - This form shall be used by all offices and departments, except the county highway department. A separate payroll shall be submitted by each office or department and for each fund from which payable. (See page 6-31 for copy of form.)

Employee's Service Record (Form 99A) - This record is required to be kept by each office or department to support the preparation of payrolls. A separate form shall be kept on a calendar year basis for each employee. The record is designed to show for each calendar date whether the employee worked, was absent, or was on vacation, sick or other authorized leave. (See page 6-30 for copy of form.)

If it is deemed desirable to centralize the keeping of all employees' service records in the auditor's office this may be done, with the posting to such records to be made from the payroll schedules filed for payment; however, this will in no way eliminate the need for such records to be kept by offices and departments having a large number of employees, such as the county highway department, to support the preparation of payrolls.

Employee's Earnings Record (Form 99B) - This record is required to be kept by the county auditor for each county officer and employee. It is so designed that it may accommodate all payrolls, whether employees are paid weekly, bi-weekly, semimonthly or monthly. Totals shall be entered for each quarter and for the calendar year, and all entries in such record shall agree with the totals of payroll warrants issued. The record is the basis for reporting earnings and payroll deductions of employees and for preparing earnings statements required to be furnished employees, the Federal Internal Revenue Service and the Indiana Department of Revenue at the close of each year. (See pages 6-36 and 6-37 for copy of form.)

Employee’s Weekly (Work Period) Earnings Records (Form 99C) - This record is required to be kept by the county auditor for county employees who are not exempt from the Fair Labor Standards Act and who are not on a fixed work schedule and when the county pays other than weekly. (See page 6-35 for copy of form.)

Payroll Warrant and Register (Form 16PR) - This form shall be used for the payment of all payrolls covering salaries, wages and other compensation for personal services of "county officers and employees," including within that term officers and employees of townships and other governmental units whose salaries and wages are paid by the county auditor.

The term "other compensation for personal services" will include such items as per diem of the regular judge, bailiff and court reporter in change of venue actions, compensation of the clerk of the circuit court for services on the election board and board of canvassers, per diem of board members and similar items, when such payments are made for personal services. The payment of such items on payroll warrants is necessary to insure that all earnings of officers and employees are reported for tax, social security and retirement purposes and to this end should be paid on payrolls submitted by the officer or department. The payroll should be supported by an attached schedule, where necessary to support the compensation claimed, such as per diem allowances of the court.

Items Not Payable on Payroll Warrants

The following items are not considered to be compensation for personal services or do not represent payments to "officers and employees" of the county and, therefore, should not be paid on payroll warrants:

1. Mileage and travel expense allowances.
2. Per diem of jurors, compensation of pauper attorneys (unless serving as an officer or employee of the court), and witness fees.
3. Compensation of precinct election boards.
4. Payments to attorneys, engineers and other professional persons, when serving on a contractual basis, as distinguished from being an officer or employee of the county.

All of the foregoing items, as well as any other items not representing payments to county officers and employees for personal services, should be paid on regular county warrants and not on payroll war-rants. This is true even though the items might be budgeted under the personal services classification.

Leave Benefits

Pursuant to IC 5-10-6-1, the vacation leave, sick leave, holiday leave or other leave benefits to which a county employee is entitled must be fixed by ordinance of the board of county commissioners. While this law was enacted to apply to hourly paid employees, it is generally followed in establishing leave benefits for all other employees, since there is no other law specifically governing leave for county employees.

The foregoing will not apply to those officers and departments for which some other board or agency is given authority to establish leave benefits. Included in this category are employees of the county extension service office whose employees are considered to be a part of the staff of Purdue University.

Payroll Deductions

Salaries and wages of officers and employees are subject to withholding for federal, state and county (local option) income taxes, social security and contributions to retirement programs established pursuant to Indiana laws. In addition, deductions may be made for insurance premiums, charitable contributions, purchase of United States bonds and securities and for certain other purposes enumerated in IC 22-2-6-2, where agreed to by the employer and a written assignment is personally signed by the employee.

Provision is made on all payroll forms, including the payroll warrant, for showing the gross wages of the employee, the amount and purpose of such deduction, and the net amount payable. The prescribed payroll warrant also contains a statement (non-negotiable copy of warrant) showing the employee's earnings and deductions which is required to be furnished the employee each pay period, pursuant to IC 22-2-2-8.

A separate fund shall be established for each type of payroll deduction, to which deductions shall be transferred at the time payroll warrants are issued. The handling of deductions is more fully covered in the instructions and exhibits that follow.

Garnishments of Salaries and Wages

Where the earnings of an employee are subject to garnishment, the deduction should be listed on the employee's payroll warrant and should be accounted for in the same manner as any other deduction. In this manner a "Garnishment Fund" will be established, to which deductions will be receipted and disbursed from that fund to garnishment plaintiffs, thus providing a complete record of the transactions.

Payroll Accounting Procedures

To properly account for payroll earnings and deductions and to facilitate posting of records, it is important that a systematic payroll accounting procedure be established.

Two methods of issuing payroll warrants have been prescribed for counties, either of which may be adopted by the county auditor. The two methods provide either for:

1. Establishment of a "Payroll Fund" to which gross amounts required to meet the payrolls are transferred and from which fund payroll warrants will be issued. Under this method, at the option of the county, a separate bank account may also be established for the payroll fund.
2. Issuance of payroll warrants directly from the fund or funds affected, without the establishment of a payroll fund.

Where method (1) is adopted, the payroll warrant shall have printed thereon the name "Payroll Fund." Where method (2) is adopted, the payroll warrants shall be printed with the name of the fund in blank, "__________ Fund."

Method No. 1 - With Payroll Fund

1. Establish a "Payroll Fund" in addition to all other funds. This fund shall be used for the payment of all personal services regardless of the office or department in which a person is employed or the fund or appropriation account to be charged for such expense.
2. Payroll Schedule and Voucher, Form 99, shall be filed by each office or department, except for the county highway department whose payrolls shall be submitted on County Highway Payroll Schedule, Form 2. The payroll shall include not only the salaries and wages of officers and employees but shall also include per diem allowances and other compensation for personal services of such officers and employees. Where per diem or other compensation is included it should be described and there shall be attached thereto a separate claim or itemized statement showing the dates and cases for which per diem or other compensation is claimed.
3. Prepare a summary of the individual payrolls, using Form 99, but indicating thereon the word "SUMMARY." This will compile in total the payrolls for all offices and departments, showing the name of the office or department, total gross pay, the payroll deductions and the net amount of warrants to be issued. The summary should first list the offices and departments whose payrolls are chargeable to the County General Fund, followed by the payrolls chargeable to other funds.
4. From the totals shown on the payroll "SUMMARY" issue a regular county warrant (not a payroll warrant) for the TOTAL GROSS PAY (before deductions), and receipt such amount to the "Payroll Fund." The warrant or warrants issued must show the amount chargeable to each fund for proper posting by the auditor and treasurer to the respective fund accounts.
5. Issue payroll warrants from the Payroll Fund, based upon the individual payroll schedules and vouchers. Each warrant must be completed in full showing the gross pay and applicable payroll deductions.
6. PAYROLL DEDUCTIONS - Immediately following the issuance of the payroll warrants for the pay period, issue a warrant to the "Treasurer of ___________ County" for the payroll deductions, entering the total amount of each type of deduction in the applicable spaces on the payroll warrant. The warrant shall then be receipted in by application to pay and quietus and the amounts credited to each of the applicable payroll deduction funds. Do not attempt to accumulate and account for payroll deductions within the payroll fund; instead, transfer the deductions to the separate funds for each type of deduction on the records of the auditor and treasurer.
7. PROOF OF PAYROLLS - For each pay period and at the close of each month, the payroll warrants must be totaled and proved to the totals of the payroll summaries. Enter the totals of the warrants on the warrant register after the last warrant issued, showing separately the totals of gross pay, each of the payroll deduction columns, and net amount of warrants. These totals should then be carried to a "Control Account" over employees' earnings and payroll deductions, in the Employees' Earnings Record, Form 99B.
8. POSTING TO LEDGER - All payroll warrants will be posted to the payroll fund. Posting to appropriation and other fund accounts will be made from the individual payroll schedules and vouchers, in GROSS AMOUNT, making reference to the warrant issued for transfer of funds to the payroll fund. The totals of amounts posted to the appropriation accounts and the respective fund accounts must agree.
9. POSTING TO EMPLOYEES' EARNINGS RECORDS (Form 99B) - Posting to this record should be made from the individual payroll warrants issued. A "control account" using the same form should be placed in the front of all employees' earnings records to insure that proper posting is made to the indi-vidual records. Posting to the control account will be made from the totals shown on the payroll warrant register, as discussed in paragraph (g).
10. FILING - The individual payroll vouchers shall be filed in the regular manner. The payroll "summary" may be filed with the payroll vouchers; however, if the payroll vouchers of all county offices and departments for the payroll period are not filed in a single place, it is recommended that the summaries be filed together or bound in a suitable post binder.

Method No. 2 - Without Payroll Fund

1. Payrolls shall be submitted on Payroll Schedule and Voucher, Form 99, and County Highway Payroll Schedule, Form 2, in the same manner as shown in paragraph (b) under Method No. 1.
2. Issue payroll warrants based upon the individual payroll schedules and vouchers, showing on each warrant the name of the fund on which it is drawn. Each warrant must be completed in full, showing the gross pay and applicable payroll deductions. It is not necessary to show on the warrant the appropriation and/or expenditure account to be charged; however, provision may be made on the payroll warrant for showing the account number, if desired.
3. PAYROLL DEDUCTIONS - Immediately following the issuance of payroll warrants, issue a warrant to the "Treasurer of __________ County" for the payroll deductions and receipt such deductions into the applicable payroll deduction funds, in the same manner as discussed in paragraph (f) under Method No. 1.
4. PROOF OF PAYROLLS - For each pay period and at the close of each month the payroll warrants must be totaled and the totals entered on the warrant register after the last warrant issued, showing separately the totals of gross pay, each of payroll deductions, and the net amount of warrants. These totals should then be carried to a "Control Account" over employees earnings and payroll deductions in the Employees' Earnings Record, Form 99B.
5. POSTING TO LEDGER - Posting to the fund accounts will be made from the warrant register (copies of warrants issued). Posting to the appropriation and expenditure accounts will be made from the individual payroll schedules and vouchers, in GROSS AMOUNT, making reference to the warrant or warrants issued; however, if the account number is carried on the warrant, posting may be made from the warrant register. The totals of amounts posted to the appropriation accounts and the respective fund accounts must agree.
6. POSTING TO EMPLOYEES' EARNINGS RECORDS - Posting to this record will be made in the same manner as discussed in paragraph (i) under Method No. 1.
7. FILING - It is recommended that payroll vouchers be separately filed from other claims and vouchers paid. It is also recommended that payroll claims be entered in the Commissioners Claim and Allowance Docket in a group separate from other claims to facilitate proof of payrolls. If desired, a summary of all payrolls may be prepared in the manner discussed in paragraph (c) under Method No. 1, as a further proof of payroll warrants issued.

Accounting for Payroll Deductions

Experience has shown that one of the most difficult problems encountered by public officials is accounting for payroll deductions. That is the reason the prescribed accounting procedures provide for transfers of payroll deductions into separate funds, with a separate fund to be established for each type of deduction. Also, the establishment of such funds provides a further proof of the correctness of the deductions and remittances since the entries in each fund can be reconciled to the control account in the employees' earnings records, to the earnings statements furnished employees at the close of the year and to the reports and remittances required to be made to the various federal, state and other agencies.

Deductions for federal, state and county (local option) taxes should offer no difficulty, since remittances to the Internal Revenue Service and to the State Department of Revenue should be equal to the amounts withheld from employees. The same is true where the entire amount deducted from employees' earnings for any purpose is paid by the employees; however, where a part of the expense, such as social security contributions or group insurance, is payable by the county a different handling is required.

In all instances only the deductions from employees' payrolls should be receipted to the payroll deduction funds. When a remittance is made for such items as social security and group insurance and a part is payable by the county, the county's portion should be charged directly to the county fund or funds affected and only the employees' portion charged to the payroll deduction fund.

It is not required that a claim or voucher be filed by a state or federal agency to which withholding taxes, retirement contributions, social security or other payments are required to be made, nor is it required that claims be allowed prior to their payment, since such payments must be made in accordance with applicable laws. It is suggested, however, that reports and other information supporting each payment be attached to a claim, Form 17, so that it can be processed and filed in an orderly manner and preserved for future reference and audit.

In the case of social security contributions, where the remittance is required to be based upon the total taxable payroll, with one-half to be contributed by employees from the "Social Security Deductions" fund and one-half contributed by the county, it will usually result in there being a small difference between the amounts withheld from employees and the amount required to be contributed by the county. Also, when remittances are made, the county's contribution will be payable from the County General Fund, County Highway Fund and certain other funds, depending upon the fund to which the county's contribution is chargeable. The county's portion chargeable to each fund may be arrived at by determining the amounts withheld from employees either from: (1) the payroll summaries; (2) the totals of the payroll warrants charged to each fund; or (3) from the Employee's Earnings Record control accounts, if maintained by fund from which paid. After the amounts withheld from employees are determined, charge each fund (other than the County General Fund) with an amount equal to the amounts withheld from employees and charge the General Fund with the remaining portion of the county's contribution. This will result in any difference between the employees' and the county's contributions being reflected in the General Fund but the difference should be minimal.

State Withholding Tax

If a political subdivision’s tax liability exceeds $10,000, the taxpayer shall pay taxes due by electronic funds transfer or by delivering in person or by overnight courier a payment by cashier’s check, certified check, or money order to the Indiana Department of Revenue. The transfer or payment shall be made on or before the date the tax is due. [IC 6-2.1-5-1.1]

Temporary Loans (Tax Anticipation Notes or Warrants)

A county may borrow funds by temporary loans, in an amount not exceeding the revenue for the current year, pursuant to IC 36-2-6-18, but all such loans shall be evidenced by "Tax Anticipation Notes or Warrants" of the county and be issued in accordance with the provisions of IC 36-2-6-18 to 36-2-6-20.

The tax anticipation notes or warrants shall be authorized by ordinance of the county council and shall be sold by the county auditor to the highest bidder therefor, but in no event at less than par and accrued interest to date of delivery, after giving notice of sale thereof by publication in accordance with IC 5-3-1-2. Where the interest rate exceeds 8%, approval of such rate must be obtained from the State Board of Tax Commissioners, pursuant to IC 6-1.1-20-7.

The notes or warrants must show the funds and revenues in anticipation of which they are issued and out of which they are payable. The principal of a temporary loan may be paid without an appropriation, but an appropriation is required for payment of the interest, where it is borrowed for a fund subject to the provisions of the budget laws.

IC 36-2-6-20 makes it the duty of the auditor, with the advice of the county attorney, to prepare the notes or warrants and deliver them to the county treasurer to complete the loan. The form of notice to be given bidders and the contents of the ordinance and notes or warrants are legal matters in which county officials should be advised by the county attorney. However, to assist in this matter, suggested forms of the notice to bidders and tax anticipation time warrant are set out on the following pages.

Loans Other Than Temporary

The county fiscal body may, by ordinance, make loans for the purpose of procuring money to be used in the exercise of county powers and for the payment of county debts other than current running expenses, and issue bonds or other county obligations to refund those loans.

The county fiscal body may, by ordinance, make loans of money for not more than five (5) years and issue notes for the purpose of refunding those loans. The loans may be made only for the purpose of procuring money to be used in the exercise of the powers of the county, and the total amount of outstanding loans may not exceed five percent (5%) of the county's total tax levy in the current year (excluding amounts levied to pay debt service and lease rentals). The ordinance authorizing the loans must pledge to their payment a sufficient amount of tax revenues over the ensuing five (5) years to provide for refunding the loans. The loans must be evidenced by notes of the county in terms designating the nature of the consideration, the time and place payable, and the revenues out of which they will be payable.

Temporary Advances (Loans) Between Funds

Whenever it becomes necessary to borrow money to enhance any depleted fund of the county and there is sufficient money on deposit to the credit of any other fund of the county which can be temporarily advanced or transferred to such depleted fund, it shall be lawful, upon the adoption of an ordinance or resolution by the county council, to make such advance for such period of time as may be prescribed in the ordinance or resolution, providing it does not extend beyond the budget year of the year in which the advancement and transfer is made. [IC 36-1-8-4] The only limitation is that any such advancement shall be made only from funds derived from the levying and collection of taxes on property, the levying and collection of special taxes, and from other revenue derived from any operation of the county. This limitation restricts advances from the proceeds of a bond issue, from trust and endowment funds, from federal grants and similar sources not meeting the authorized sources.

If the fiscal body determines that an emergency exists that requires an extension of the prescribed period of a transfer, the prescribed period may be extended for not more than six (6) months beyond the budget year of the year in which the transfer occurs if the fiscal body does the following:

1. Passes an ordinance or a resolution that contain the following:

1. A statement that the fiscal body has determined that an emergency exists.
2. A brief description of the grounds for the emergency.
3. The date the loan will be repaid that is not more than six (6) months beyond the budget year in which the transfer occurs.

2. Immediately forwards the ordinance or resolution to the State Board of Accounts and the State Board of Tax Commissioners.

Upon adoption of the ordinance or resolution by the county council the auditor is authorized to make such advance. The advance should be made in the manner outlined in Section H of this section under "Transfers Between Funds" and the repayment of the advance should be handled in the same manner.

Welfare Fund Advance

If the amount of money in the County Welfare Fund is not sufficient to meet the requirements of that fund, funds may be provided by borrowing and the issuance of bonds, pursuant to IC 12-19-5 or IC 12-19-7 and other provisions of the welfare laws. Temporary loans, through the issuance of tax anticipation notes or warrants, and advances (loans) from other funds previously discussed in this section, may also be made, if authorized by the county council, where such loans and advances are repayable from current revenues.

Bond Issues

As indicated herein, bonds may be issued to meet welfare requirements. In addition, there are many other laws authorizing bonds to be issued for construction of or improvements to county buildings and structures, as well as for other purposes. Where bonds are issued there are specific statutory requirements to be met in which county officials should be guided by the advice of bond counsel, with the proceeds to be accounted for in the manner provided in the bond ordinance or in the applicable law under which the bonds are issued.

There are, however, certain uniform requirements in accounting for such funds which must be observed. These include:

1. Principal of Bond Issue - Only the principal of the proceeds of the bond issue may be receipted to the "____________ Construction Fund," or to such other fund as designated in the applicable ordinance or law under which the bonds were issued.
2. Premium and Accrued Interest - The premium and accrued interest received from the sale of the bonds must be receipted into the "_______________ Bond Redemption Fund" or such other fund designated for the retirement of the bonds and interest.
3. Appropriations - Where the proceeds (principal) of the bonds are required to be appropriated, such as general obligation bonds of the county for any purpose, not more than the appropriation may be expended, regardless of the cash available in the fund for such purpose. An appropriation ledger sheet, Form 24A, should be set up back of the fund (cash) account in all instances where appropriations are required. Appropriations made from the proceeds of a bond issue do not lapse at the end of the year but remain in force, and the balance is carried forward each year, until the purpose for which the appropriations were made has been accomplished or abandoned. [IC 5-1-2-1]
4. Investments - The proceeds of a bond issue may be invested in the same manner as other county funds. [IC 5-13-9-1] The interest thereon shall be receipted to the county general fund unless otherwise provided in the bond ordinance. The interest may be applied to the appropriate bond interest or sinking fund. [IC 5-13-9-6] The interest may not, however, be expended without appropriation as discussed in the preceding paragraph (3).
5. Surplus Bond Proceeds - Any balance remaining after the purpose for which the bonds were issued has been accomplished or abandoned shall, by an order of the county council entered of record, be transferred to the bond and interest redemption fund or may be used by a political subdivision for the same purpose or type of project for which the bonds were originally issued if the fiscal officer of the political subdivision certifies before or at the time of that use that the surplus was not anticipated at the time of the issuance of the bonds and the legislative body responsible for issuing the bonds takes action approving the use of surplus bond proceeds or investment earnings for the same purpose or type of project for which the bonds were originally issued.

The following claim and voucher forms have been prescribed for use in county offices and departments and, unless an alternate form has been approved, shall be used in all counties:

* These are approved forms prescribed by law or by another state agency.

All of the above listed forms, by their titles, are self-explanatory as to their uses. Form 17 is required to be used for the payment of all claims against the county, except expenses for which a special claim form has been prescribed or where disbursements are authorized to be made on the basis of other supporting documents.

A claim or voucher, to be properly itemized, must show kind of service, where performed, dates service rendered, by whom rendered, rate per day, number of hours, rate per hour, price per foot, per yard, per hundred, per pound, per ton, etc.

The Attorney General held in Official Opinion No. 13 (1968) that the attachment of a properly itemized and certified invoice to the front side of a prescribed claim form, in lieu of manual completion of the front side of the claim form, is consistent with the provisions of IC 5-11-10-1. In view of the foregoing opinion certified invoices may be used subject to the following conditions:

1. Invoice is fully itemized, in the manner described on the prescribed Accounts Payable Voucher Form.
2. Invoice is firmly attached to and becomes a permanent part of the prescribed claim and is processed in the same manner as other claims.

One of the most important duties of the county auditor, as the title of the office implies, is to audit all claims and vouchers prior to their allowance and payment. It is not expected that the county auditor personally supervise the performance of all work or the delivery of all goods, but to insure a claim or voucher is proper, the following minimum audit steps should be observed:

1. Determine the claim or voucher is properly itemized and verified and, where required, that it is properly supported by freight bills, delivery tickets, or other supporting documents acknowledging delivery of the goods or services.
2. If for personal services, determine that salaries or rates of wages are in strict accordance with those fixed by the county council or by the board or officer having jurisdiction.
3. Determine that prices charged are in accordance with contracts awarded, where applicable, and that statutory authority exists for payment of the claim or voucher.
4. Verify the correctness of the extension on each item, where based on quantity and unit price, and add the detail items to see that the total is correct.
5. Be sure the claim or voucher has been approved by the officer or department head receiving the goods or services and allowed by the board of county commissioners, the court, or such other board or officer authorized by law to allow the claim or voucher.
6. Determine that sufficient funds and appropriations are available from which to make payment; also, that the claim or voucher has not been previously paid.

It is important that the foregoing audit procedures be observed to insure that all claims or vouchers are paid in good faith and thereby minimize the possible liability for payment of a wrongful or unlawful claim or voucher.

Auditor's Certification

It is the duty of the county auditor after auditing each claim or voucher to certify to the correctness of the claim or voucher in the space provided thereon before such claim or voucher is submitted to the board of county commissioners for its consideration or, in the case of other claims or vouchers, before such claims or vouchers are paid. [IC 5-11-10-2]

Approval of Claims

Each claim or voucher must be approved by the officer or department head receiving the merchandise or services in the space provided on the claim or voucher. In counties having a purchasing department, where a signed receiving memorandum is furnished the auditor and becomes a part of the claim or voucher, further approval is not required. [IC 5-11-10-2]

Filing Claims

All claims or vouchers against the county, unless otherwise expressly provided by law, are required to be filed with the county auditor for consideration by the board of county commissioners. Claims or vouchers must be filed at least five days before the session of the board when such claims or vouchers are to be considered. If a claim or voucher is properly certified and timely filed, the county auditor is without authority to withhold the claim or voucher from the board's consideration, even though the claim or voucher may appear to be improper or incorrect, or for some other reason cannot be paid. [IC 36-2-6-2] [IC 36-2-6-4]

At the close of each filing period, after the reverse side of each claim or voucher has been completed to show the fund name and appropriation and expenditure accounts to be charged, the claims and vouchers should be arranged in the same order as the funds and appropriation accounts are listed in the funds ledger, and should be so entered in the Register of Claims or Accounts Payable Voucher to facilitate processing, payment and posting to ledgers.

Register of Claims

Prior to submission to the board of county commissioners, all claims or vouchers must be entered in claim number order in the Accounts Payable Register, General Form No. 364 (1996). This is a loose-leaf form and contains columns to show the date each claim or voucher was filed, the claim or voucher number, the name of the claimant, the office, department or fund, the amount of the claim or voucher, the amount allowed and the warrant number. [IC 5-11-10-2]

If a claim or voucher is not allowed by the board of commissioners, the word "Disallowed" shall be inserted in the column headed "Amount Allowed"; if a claim or voucher is continued for later consideration, by the board, the word "Continued" shall be inserted in that column. When a claim or voucher is continued it shall be reentered on the Accounts Payable Register for the next meeting of the board under the original assigned claim or voucher number.

The board of county commissioners is permitted to sign the "Allowance of Claims" or "Accounts Payable Register" in lieu of signing each individual claim or voucher.

Publication of Claims Prior to Allowance

It shall be the duty of every county auditor to publish all claims or vouchers filed for consideration of the board of county commissioners at least three days prior to the meeting date when the claims or vouchers are to be considered and acted upon by the board. [IC 36-2-6-3]

Allowance of Claims

No claim or voucher shall be allowed by the board of county commissioners unless such claim or voucher has been duly itemized.

The board of county commissioners shall examine the merits of all claims or vouchers so presented and may, in its discretion, allow such claim or voucher, in whole or in part, as they may find to be valid. [IC 36-2-6-2] It is unlawful for any board of commissioners of any county or for any member thereof to make any allowance or to allow any claim or voucher against the county, or order the issuance of any county warrant for the payment of any sum of money, except at a regular or special session of the board. [IC 36-2-6-4] Each claim or voucher must show the date and amount allowed. If a claim or voucher is disallowed in whole or in part, this should be clearly shown on the claim or voucher and on the docket or register.

The judge of each circuit, superior, probate, juvenile, criminal and county court is empowered to allow claims or vouchers of the court, including offices, departments and institutions under jurisdiction of the court, such as court administrator, probation department and juvenile detention center.

Claims or vouchers should be filed on the applicable prescribed claim or voucher forms listed on page 7-1 and should be itemized and verified in the same manner as other claims or vouchers against the county. The court's allowance should appear on the face of each claim or voucher in the space normally used by the board of county commissioners in allowing claims or vouchers. In some counties a form of court order or court allowance is used, listing claim or vouchers allowed by the court accompanied with supporting claims or vouchers and invoices, in lieu of each claim or voucher being individually allowed, and this procedure is acceptable.

Claims or vouchers of the court are not subject to allowance by the board of county commissioners.

Publications of Claims Prior to Issuance of Warrant

It shall be the duty of every county auditor to publish all allowances made by the judge of any of the courts of the county at least three days before the issuance of warrants in payment of such allowances. [IC 36-2-6-3]

The provisions of IC 36-2-6-3 do not apply to claims or vouchers for statutory salaries, per diem of jurors and salaries of officers of the courts.

Publication of Court Allowances

It shall be the duty of every county auditor to publish all allowances made by a circuit or superior court within sixty (60) days after the allowances are made. [IC 36-2-6-3]

All county hospital claims or vouchers must be allowed and approved by the governing board before payment by the disbursing officer. However, the board may, subject to review and approval at the board’s next regular meeting, authorize the compensation of hospital employees upon certification of payrolls by the executive director or payment of invoices for materials, services, equipment, and supplies required for the operation and maintenance of the hospital upon certification by the executive director. [IC 16-22-3-7]

In those counties where the county treasurer serves as treasurer and the county auditor serves as disbursing officer for the hospital, Payroll Schedule and Voucher, Form 99 (Rev. 1985), should be submitted to support payment of salaries and Schedule of Claims, Form GH-15 (1950), should be submitted to support payment of all other expenses. Both of these forms should show approval of the governing board of the hospital and/or certificate of the executive director. County hospital claims or vouchers should not be submitted to the board of county commissioners for allowance nor advertised prior to or after payment. [IC 16-22-2-9]

County boards of aviation commissioners are authorized to allow county aviation department claims or vouchers by the provisions of IC 8-22-2-4 and 8-22-2-5. In those counties where the county board of aviation commissioners meet on a regular basis and allow aviation department claims or vouchers, it is not necessary to submit the claims or vouchers to the board of county commissioners for allowance nor is it necessary to advertise the claims or vouchers prior to allowance or after payment; however, in those counties where the board of aviation commissioners does not meet on a regular basis or does not allow the aviation department claims or vouchers, the claims or vouchers should be submitted to the board of county commissioners for allowance and should be advertised in the same manner as other commissioners' claims or vouchers are advertised.

County boards of parks and recreation are authorized to allow park and recreation department claims or vouchers by the provisions of IC 36-10-3-11. In those counties where the county board of parks and recreation meet on a regular basis and allow parks and recreation department claims or vouchers, it is not necessary to submit the claims or vouchers to the board of county commissioners for allowance nor is it necessary to advertise the claims or vouchers prior to allowance or after payment; however, in those counties where the board of parks and recreation does not meet on a regular basis or does not allow the county parks and recreation department claims or vouchers, the claims or vouchers should be submitted to the board of county commissioners for allowance and should be advertised in the same manner as other commissioners' claims or vouchers are advertised.

All claims or vouchers covering salaries and expenses of the county agricultural extension office shall be submitted to Purdue University for approval. [IC 20-12-42.1-4] These claims or vouchers should not be submitted to the board of county commissioners for allowance nor advertised prior to or after payment.

Claims or vouchers for the expense of examination of records by the State Board of Accounts are certified by the State Examiner to the auditor of each county periodically throughout the year. The claim or voucher covers the number of days actually served by field examiners in examining the records of each taxing unit in the county at the rate per day set by IC 5-11-4-3. The provisions of this statute require that immediately upon receipt of the certified statement, the county auditor shall issue a warrant on the county treasurer payable to the Treasurer of State out of the general fund of the county for the amount stated in the certificate. The expense paid for all units, except county offices, is to be deducted from the next semiannual tax settlement to each of such units and reimbursed to the county general fund.

In all cases where a change of venue is taken from one county to another, the county in which the cause originated shall pay all expenses incurred by the county to which the case was venued. [IC 34-35-5-1]

The change of venue claim or voucher shall be prepared by the clerk of the circuit court in duplicate and must be signed by the judge and the clerk and issued under the seal of the court.

The chargeable items of expense to be audited and allowed by the court are set out in IC 34-35-5-1.

Upon receipt of a change of venue claim or voucher from another county, the county auditor shall check with the clerk of the circuit court to insure that the claim or voucher is properly payable by the county, that the chargeable items of expense are correct, and shall present the claim or voucher to the board of county commissioners for allowance.

The auditor's "Venue Record," County Form No. 56 (Rev. 1953) shall be used to record change of venue claims or vouchers received, or payable by other counties. A separate sheet should be kept in this record for each county.

When a claim or voucher against another county is received from the clerk of the circuit court it shall be entered in the venue record, one copy of the claim or voucher mailed to the auditor of the county from which payment is due, and one copy filed in the county auditor's office.

Upon receipt of payment from another county the amount received shall be receipted into the county general fund by quietus, and the date, quietus number, and amount received shall be entered in the venue record. The auditor shall also enter or cause this information to be entered in the change of venue record in the office of the clerk of the circuit court. If a claim or voucher is not paid within a reasonable time after it is mailed to another county, the county auditor should follow-up the nonpayment by contacting the auditor of such county.

The payment of bonds and interest coupons is governed by terms of the bond ordinance and no further allowance or authority is required to pay such indebtedness. The same is true of notes or other indebtedness.

If the bond ordinance provides for payment of bonds and coupons at the office of the county auditor or county treasurer, a warrant should be drawn on the appropriate bond or sinking fund in an amount equal to the face value of the bonds and coupons presented for payment.

If the bond ordinance provides for payment of bonds and coupons at a certain bank as "Paying Agent," payment should be made to the bank, on or immediately prior to each due date, as specified in the ordinance, for the total amount of bonds and coupons due and payable on such due date, plus the paying agent's fees, if any. The paying agent should render a statement of such account and turn over paid bonds and coupons periodically, preferably at the end of each month.

The county auditor is required to keep a record of bonds and coupons paid in the prescribed Bond Register, Form No. 53. The Bond Register should at all times show the unpaid bonds and coupons. In the case of a paying agent, the balance on the statement furnished by the paying agent should equal the matured bonds and coupons not yet surrendered and paid by the paying agent.

The statements and all bonds and coupons (properly canceled or stamped to show payment) must be carefully preserved. The bonds and coupons represented by each warrant should be filed in a separate jacket (or envelope) and the date, warrant number and amount paid shown on the jacket. If bonds and coupons are paid by a paying agent, they should be filed with the statement of the paying agent's account in a separate jacket and the date of the statement shown on the jacket.

Within a reasonable time after the due date of the last maturing bond any balance in a paying agent's account resulting from bonds or coupons not presented for payment should be returned by the paying agent to the county. The balance should then be receipted into the appropriate bond or sinking fund and held for payment of the outstanding bonds and coupons.

If the bond ordinance specifically provides for payment of bonds and coupons at the office of the county auditor, there is no authority for a bank to act as paying agent.

All warrants in payment of funds due the State of Indiana should be made payable to the Treasurer of State, unless specifically instructed by the applicable state agency. The warrants should, however, be mailed to the state agency to insure proper credit.

The statutes provide for reports to be prepared to accompany remittances for such items as: surplus dog tax, gross income tax on real estate, inheritance tax, unclaimed warrants, fines and forfeitures and common school fund interest. Family violence and victim assistance fees and infraction judgment fees will be remitted in this manner beginning in June, 1988. The clerk of the circuit court will remit the state's portion of court costs directly to the auditor of state semiannually. No further authority, or allowance by the board of county commissioners, is required to pay such funds to the State of Indiana.

When a certified statement is received from a state agency for funds due the State of Indiana for services, materials, equipment or contractual obligations, the claim or voucher should be submitted to the board of county commissioners or other board having jurisdiction over the allowance of the claim or voucher. If the certified statement is not submitted on a prescribed claim or voucher form, it should be attached to Accounts Payable Voucher Claim Form No. 17 to be filed and processed in the same manner as other claims or vouchers. An exception to this requirement is the statement received from the State Board of Accounts for examination of records, which IC 5-11-4-3 provides shall be paid "immediately upon receipt of such certified statement."

The county auditor is authorized to make distributions of funds due the State of Indiana and local governmental units within the county without allowance or approval of the board of county commissioners. Distributions of property taxes, bank, building and loan taxes, license excise taxes and any other distribution which includes two (2) or more funds or sources shall be accompanied by a Certificate of Tax Distribution, Form No. 22 (Rev. 1985). If a distribution (other than property tax settlement) includes only one fund or source and the fund or source is shown on the warrant, it is not necessary to furnish a certificate of tax distribution.

Warrants for all distributions should be made payable to the fiscal officer or treasurer of the governmental unit by title, for example: Trustee, Washington Township; Clerk-Treasurer, Town of Rockville, Treasurer, North Putnam Community School Corporation. The personal name of a public official should not be shown on any warrant payable to a state agency or local governmental unit.

Any person may redeem the tract or real property sold under IC 6-1.1-24 at any time before the expiration of the period of redemption. [IC 6-1.1-25-1]

When real property is redeemed and the certificate of sale is surrendered to the county auditor, the auditor shall issue a warrant to the purchaser or purchaser's assignee surrendering the certificate in an amount equal to the amount received by the county treasurer for redemption. [IC 6-1.1-25-3]

The portion of a tax or special assessment payment which exceeds the amount actually due shall be receipted into a special fund to be known as the "Surplus Tax Fund." Amounts receipted into this fund shall first be applied to the taxpayer's delinquent taxes in the manner provided in IC 6-1.1-23-5(b); the taxpayer may then file a verified claim for money remaining in the surplus tax fund. The county treasurer or county auditor shall require reasonable proof of payment by the person making the claim. If the claim is approved by the county auditor and the county treasurer, the county auditor shall issue a warrant to the taxpayer for the amount due the taxpayer. [IC 6-1.1-26-6] No allowance by the board of county commissioners is required.

To properly account for the remittance of payroll deductions, it is recommended that each electronic transfer be supported by an Accounts Payable Voucher Form No. 17; that there be firmly attached thereto remittance reports and other documents supporting the electronic transfer; and that the claim or voucher be filed in an orderly manner for reference and audit purposes.

If the remittance is for tax or other funds payable to an agency of the State of Indiana or the Federal Government, such as Federal Withholding Tax, Social Security (FICA Tax), State Withholding Tax, County Adjusted Gross Income Tax or employees' contributions to Public Employees' Retirement Fund, the claim or voucher need not be signed by the agency to which the payment is made nor allowed by the board of county commissioners prior to payment. The same is true with respect to assignments of wages for other purposes, such as insurance programs, United Fund contributions, purchase of government bonds, membership dues, etc., if fully paid by employees. Except for Social Security, however, if county funds are to be disbursed in support of an employee's benefit program, such as group insurance, the claim or voucher should be submitted to the board of county commissioners for allowance. A claim or voucher should also be submitted to the board for the county's portion of contributions payable to Public Employees' Retirement Fund.

In addition to the foregoing, the county auditor is authorized to issue other warrants for such items as a loan from one fund for the benefit of another fund, transfer of money between funds for the correction of errors, congressional school fund and cemetery fund loans and investment of county funds, which are supported by law or by ordinance or resolution of the county council or board of county commissioners.

Care should be taken, however, before any county warrant is issued, to see that such warrant is properly supported by a duly allowed claim or voucher and in instances where a claim or voucher is not required that it is supported by statutory authority as outlined in this section.

The following budget forms have been prescribed for use of county offices and departments and, unless an alternate form has been approved, shall be used in all counties.

A preliminary step to preparing the budget estimate for each office or department is to determine the salaries and rates of wages proposed to be paid officers and employees in the ensuing budget year.

The following form has been prescribed for use of county and township assessing officials in sub-mitting their proposals:

County Form No. 144 - Statement of Salaries and Wages
Proposed to be Paid Officers and Employees

County Form No. 144 is required to be filed by each officer, board or commission, whose officers or employees are paid from county funds, except for judges of courts. This includes township assessors and township trustees serving as assessors for salaries and wages of assessors, deputy assessors and employees, but not the salaries of township trustees. The form must be filed with the county auditor by not later than July 2 each year. [IC 36-2-5-4]

The county auditor shall present the statements, County Form No. 144, to the board of county commissioners at the July meeting of the board. The board of county commissioners shall review the statements and make their recommendations, for the consideration of the county council, prior to August 20. [IC 36-2-5-4]

The county council shall, at its annual budget meeting, consider and act on the statements and the recommendations of the board of county commissioners. [IC 36-2-5-11] A SEPARATE ORDINANCE FIXING THE SALARIES OF COUNTY OFFICERS, DEPUTIES, ASSISTANTS AND EMPLOYEES SHALL BE ADOPTED BY THE COUNTY COUNCIL. This ordinance shall also fix the number of deputies, assistants and other employees for each office, department, commission or agency, except part-time and hourly rated employees for which employment is limited only by the amount of funds appropriated to pay their compensation. The salary ordinance is a separate and distinct ordinance and should in no way be combined with the ordinance for appropriations.

The salaries of elected county officers shall not be changed in the year for which fixed except as may be required by statute. The salaries of other officers, deputies, assistants and employees or the number of each may be changed at any time pursuant to application of the affected officer, department, commission or agency and upon the affirmative vote of two-thirds (2/3) of the county council members. [IC 36-2-5-13]

The county council shall meet no later than their last meeting in September and adopt a separate ordinance fixing the salaries to be paid to township officers and employees in those townships where the township trustee serves as ex-officio township assessor. The county shall pay the assessing portion of their salary from the county general fund in an amount that is not below the salary level set for the year 1984. The remaining amount is to be paid from the township fund. [IC 36-6-8-10]

To facilitate the setting of salaries for assessing officials and employees and for the portion of the township trustee's salary to be paid by the county, we have recommended to county and township officials that the following procedures be followed:

1. Each township trustee/assessor should submit a County Form No. 144 to the county auditor by July 2, requesting the rates of pay and amounts to be paid to trustee/ assessors, deputy assessors and other assessing employees for the county's portion of assessing salaries. County Form No. 144 should be sent each trustee/assessor by the county auditor with the request that this information be shown thereon.
2. A single County Form No. 144 will be prepared by the county auditor showing the portion of the salaries of all the township trustee/assessors to be paid by the county. These salaries should be not below the level that prevailed on January 1, 1984.

A budget estimate must be prepared by each officer, board or commission, on forms supplied by the county auditor. (IC 36-2-5-5) The estimates shall be completely itemized in conformity with the printed estimate forms, showing the anticipated expenditures under each of the minor expenditure classifications.

All county officers, boards and commissions, except those for which specific budget estimate forms have been prescribed, shall file their estimate on County Budget Form No. 1. This will include without limitation the clerk of the circuit court, county auditor, county treasurer, county recorder, county sheriff, county surveyor, county coroner, prosecuting attorney, county assessor, each township assessor, each township trustee serving as ex-officio township assessor, registration of voters, county cooperative extension service, plan commission, county board of review, county drainage board, veterans service officer, weights and measures inspector, county board of education, and probation department when so directed by the court. This form shall also be used by the county health board, park and recreation board and board of aviation commissioners, even though financed from a separate fund and tax levy.

Institutions, such as the court house, county jail, county home, county children's home and juvenile detention home; the election board; each court; the county commissioner's budget; the county highway department; and the county department of public welfare shall submit their budgets on Budget Form No. 1.

All budget estimates, when completed, shall be presented to the auditor before the Thursday following the first Monday in August. [IC 36-2-5-9]

There are four (4) major budget classifications of expense, which are defined as follows:

Personal Services (Includes Items Formerly Recorded Under Personal Services as Well as Employee Benefits)

Salaries and wages should include anticipated expenditures for salaries and wages for all persons employed by the office, board, commission, department, institution, etc., including elected officers, appointed officers, deputies, etc.

It is suggested that the salary of the elected official or the department head and the account number be shown on the first line under salaries and wages. This would be followed by the salaries of deputies, clerical assistants and other employees.

Employee benefits should include anticipated expenditures for employer contributions to a retirement system (PERF), insurance, sick leave, etc.

Other personal services should include anticipated expenditures for any other compensation such as fees, per diem, etc.

Supplies (Includes Items Formerly Separately Reported Under Supplies and Materials)

Office supplies should include anticipated expenditures for stationery, printing, forms, official records, etc.

Operating supplies should include anticipated expenditures for sanitation supplies, institutional supplies, gasoline, oil, lubricants, tires, tubes, and other garage and motor supplies.

Repair and maintenance supplies should include anticipated expenditures for building materials and supplies, repair parts for various equipment, etc.

Other supplies should include anticipated expenditures for any supplies not listed under one of the above three (3) subcategories, such as small tools, hardware, paint, etc.

Other Services and Charges (Includes Items Formerly Recorded Under Contractual Services, Current Charges, Except for Fringe Benefits, Current Obligations, and Debt Service)

Professional services should include anticipated expenditures for legal, engineering, architectural services, etc.

Communication and transportation should include anticipated expenditures for freight, express, postage, travel, telephone, telegraph, drayage, etc.

Printing and advertising should include anticipated expenditures for printing other than office sup-plies, publications of legal notices, photocopying, blueprinting, etc.

Insurance should include anticipated expenditures for all insurance other than that related to personal services and should also include official bonds.

Utility services should include anticipated expenditures for electricity, gas, water, sewage, etc.

Repairs and maintenance should include anticipated expenditures for repairs and maintenance of buildings, structures, improvements, equipment, etc.

Rentals should include anticipated expenditures for hydrant, land, building, machinery and equipment rentals.

Debt service should include anticipated expenditures for retirement of all principal and interest payments on general long-term debt.

Other services and charges should include anticipated expenditures for services and charges not listed in one of the categories above. Examples would include, dues, subscriptions, memberships, taxes, awards, grants, public assistance, refunds, indemnities, judgments, etc.

Capital Outlay (Includes Items Formerly Reported Under Properties)

Should include anticipated expenditures for the acquisition of or addition to the following assets:

• Land
• Buildings
• Improvements Other Than Buildings
• Machinery and Equipment

Each of the foregoing major budget classifications may be further divided into minor expenditure classifications and the budget estimate submitted by each office, board, or commission shall be itemized in conformity with such minor expenditure classifications, if required.

The board of county commissioners shall prepare separate estimates of expenditures to be made by the board. [IC 36-2-5-7] Estimates required by IC 36-2-5-7 to be prepared by the board shall embrace each of the following items:

1. Each building or institution maintained or supported by the county, such as court house, county home, jail or other building or institution maintained or supported from county funds. A separate estimate shall be prepared for each such building or institution.
2. The amount required for building bridges, itemizing the location and amount of each bridge; also, the amount required for repair of bridges.
3. Amounts required for paying principal and interest of bonds and loans maturing during the ensuing calendar year.
4. Expenses of commissioner's court, including those items of expense provided for in IC 36-2-5-7, except for those expenses which later laws enacted give jurisdiction to other boards, such as the county election board and the county board of health.

In addition to the foregoing, the board of county commissioners has jurisdiction over the budget for the county highway department, for which separate estimates should be prepared for the county highway fund, the cumulative bridge fund and for any other fund under jurisdiction of the board.

In an Official Opinion of the Attorney General (OAG 1943, Page 512) it was held that the board of county commissioners has jurisdiction only over their own budgets and not over the budgets of other county offices and departments. Therefore, unless expressly provided for by law, the budgets of other offices and departments should not be submitted to the board of county commissioners for approval or action thereon.

County Budget Form No. 33A, Estimate of Fees and Other Revenues Payable to County, is required to be filed by each county officer or department receiving fees or other revenues payable to the county general fund. This form shall be completed to show estimated amounts to be received from July 1 to December 31 of the current year, from January 1 to December 31 of the year for which the budget estimate is prepared and from January 1 to June 30 of the year next following the year for which the budget estimate is prepared. These estimates of fees and revenues shall be filed with the county auditor on or before the Wednesday following the first Monday in August, and form the basis for assisting the auditor in preparing the Estimate of Miscellaneous Revenue discussed in Section H of this section.

The Estimate of Fees and Other Revenues, Form No. 33A, should also be prepared by each department financed from a separate fund other than the county general fund, including without limitation the county park and recreation department, the board of aviation commissioners and the county health department.

County Budget Form No. 2, Estimate of Miscellaneous Revenue, is to be prepared for each fund. Column A shall show estimated amounts to be received from July 1 to December 31 of the current year; and Column B shall show estimated amounts to be received in the year for which the budget estimates are prepared.

Great care should be taken in the preparation of the Estimate of Miscellaneous Revenue. An overestimate of funds to be received will result in a shortage of cash to meet necessary expenditures, while an underestimate will cause an excessive tax levy and an undue burden on taxpayers. The estimate shall include receipts from every source, except property taxes and the portion of local option tax designated as "property tax replacement credit" to be received in the ensuing year, as further discussed in this Section.

The ledgers of receipts for the last two (2) preceding years and the first six months of the current year should be carefully reviewed and a worksheet, showing the source and amount of all receipts, should be prepared, as a guide in projecting receipts to be included in the estimate for each fund. The Estimate of Fees and Other Revenues, Form No. 33A, filed by each county office or department should also be considered in preparing the estimates. Any large differences between the receipts, as taken from the ledger, and the receipts shown on the estimates submitted by departments should be discussed with the particular county officer or department head, in order to obtain an accurate estimate.

In those counties which have adopted the local option tax, the Estimate of Miscellaneous Revenue must include the amounts to be received for County Option Income Tax (COIT) and for the "certified shares" portion of County Adjusted Gross Income Tax (CAGIT) and must also include the amount to be received in the remainder of the current year from the "property tax replacement credit" portion of CAGIT. Do not include in the estimate the amount to be received for property tax replacement credit in the ensuing year (year for which budget is being prepared), since this credit is to be entered on line 13 of the Budget Estimate of Funds to be Raised and Proposed Tax rates, Budget Form 4-B (1997). Amounts to be received from certified shares and from the property tax replacement credit may be applied to one fund, such as the county general fund, or may be allocated to two or more funds.

Pursuant to IC 6-1.1-17, it is the duty of the county auditor, on or before August 1 of each year, to send a certified statement, under the seal of the board of county commissioners, to the fiscal officer of each political subdivision of the county, containing:

1. Information concerning the assessed valuation in the political subdivision for the next budget year.
2. An estimate of the taxes to be distributed to the political subdivision during the last six (6) months of the current budget year. The estimate of taxes to be distributed shall be based on the abstract of taxes levied and collectible for the current year, less any taxes previously distributed for the year, and any other information at the disposal of the county auditor which might affect the estimate.
3. The current assessed valuation as shown on the abstract of charges.
4. The average growth in assessed valuation in the political subdivision over the preceding three (3) budget years, excluding years in which a general reassessment occurs, deter-mined according to procedures established by the state board of tax commissioners.
5. Any other information at the disposal of the county auditor that might affect the assessed value used in the budget adoption process.

The county budget is to be prepared and published on County Budget Form No. 3, Notice to Tax-payers of Tax Levies. Sufficient copies shall be prepared to file two copies with the county board of tax adjustment, one copy of which is to be transmitted to the State Board of Tax Commissioners; one copy for each publisher; and one copy retained on file in the auditor's office. Detailed instructions to county auditors and publishers are printed on County Budget Form No. 3 and should be carefully studied prior to preparing the notice.

The total of the budget estimate submitted by each officer, board or commission is to be entered on the left side of the budget form. The total of the budget estimates for the county general fund and the total of the budget estimates for each separate fund for which budget estimates are submitted must be entered in this section and must agree with line 1 under "Estimate of County Funds to be Raised."

The Budget Estimate of Funds to be Raised and Proposed Tax Rates, Budget Form 4-B (1997) contains sixteen (16) lines and five (5) columns. While the column headings are intended to be self-explanatory, care should be taken to be sure the figures are entered in the appropriate columns. An explanation of the entries to be made on each line is as follows:

Line 1 - Enter the total budget estimate for the incoming year. The figures entered on this line must agree with the total of the budget estimates for each fund.

Line 2 - Enter the necessary expenditures to be made from appropriations unexpended from July 1 to December 31 of the present year. Before entering these figures care should be taken to see that the appropriation ledger accounts are in balance and, if an appropriation control account is maintained for each fund it will represent the balance in the appropriation control account, less appropriations which will not be expended during the balance of the current year. If the appropriation ledger accounts are maintained to account for encumbrances, be sure to use the appropriation balances including encumbrances, since this line should show the amounts to be "disbursed" during the remainder of the current year, July 1 to December 31. It is suggested that a worksheet be prepared to show the total unexpended appropriations for each fund as of June 30, a list of the appropriations or portions thereof not expected to be expended during the remainder of the year, leaving the "necessary expenditures" to be made from appropriations unexpended as of June 30.

Line 3 - Enter the total amount of additional appropriations estimated to be needed from July 1 to December 31 of the current year. This should be determined from a review of the appropriation ledger accounts and, to support the amounts entered on this line, a list of such appropriations should be prepared. In addition, each officer, board or commission should be contacted to determine what additional appropriations might be needed during that period.

Line 4 - Enter all temporary loans outstanding (unpaid) on June 30 of the current year. Be sure to include loans from other funds in addition to loans from financial institutions. If a loan is payable to a fund for which a tax levy is proposed, also be sure to include the receipt from such loan in the Estimate of Miscellaneous Revenue for the fund from which the loan was made. Do not include on this line any loan which you contemplate making on or after July 1; enter only loans outstanding (unpaid) on June 30 of the current year.

Line 5 - Enter the total of lines 1, 2, 3 and 4 to obtain the total amount of funds required to meet expenses for the eighteen month period, July 1 of the current year to December 31 of the ensuing year.

Line 6 - Enter the actual fund balance for each fund as of June 30 of the current year as shown in the funds ledger. If any portion of a fund has been invested, be sure to enter the total fund balance including cash and investments. It is most important that each fund account be in balance and reconciled with the county treasurer as of June 30, since an error on this line, as well as errors on other lines of the budget, may seriously affect the amount of funds to be raised and the resultant tax levy.

Line 7 - Enter the estimated amount of property taxes to be received in the December settlement for each fund. This figure may be obtained by deducting the property taxes received in the June settlement from the total shown for each fund on the abstract of taxes collectible in the current year. If the June settlement is not made on or before June 30, this figure should be obtained by deducting any property tax advances from the total taxes collectible in the current year as shown on the abstract. Do not include financial institutions and license excise taxes on this line, since these distributions are to be entered in the Estimate of Miscellaneous Revenue for each fund.

Line 8 - Enter on lines 8a and 8b the amounts estimated to be received from special taxes and from all other revenues, for the period July 1 of the present year to December 31 of the ensuing year, from the Estimate of Miscellaneous Revenue, Form No. 2, prepared for each fund.

Line 9 - Enter on this line the total of lines 6, 7, 8a and 8b to obtain the amount of funds estimated to be available to meet expenses for the eighteen month period, July 1 of the current year to December 31 of the ensuing year.

Line 10 - Enter the difference between line 9 and line 5, which represents the net amount to be raised by property taxes to meet expenses to December 31 of the ensuing year.

Line 11 - Enter on this line the amount of operating balance needed or to be requested. The amount entered on this line is to provide operating funds extending for a period of not to exceed six months beyond the year for which the budget is prepared and the amount must not exceed actual expenses (disbursements), less the miscellaneous revenue, for that period. If no amount is entered on this line it will simply mean, based upon the estimates, that the amount to be raised by taxes (line 10) plus other revenues available (line 9) will only meet the total funds required (line 5) and result in there being no cash balance available for operating purposes at the close of the year for which the budget is prepared. As a guide, it is well to review the cash balance in each fund as of January 1 of the current year, the projected cash balance at the close of the current year, and the published budgets for prior years, to determine the amount to be included for each fund. The projected cash balance at the close of the current year, based upon the estimate, may be obtained by adding lines 2, 3, and 4 and deducting therefrom the total of lines 6, 7 and Column A of the Estimates of Miscellaneous Revenue included on line 8a.

Line 12 - Enter on this line the total of lines 10 and 11, which will be the amount to be raised by tax levy in those counties which have not adopted local option tax. (Strike out lines 13 and 14 if county has not adopted local option tax.)

Line 13 - In those counties which have adopted the County Adjusted Gross Income Tax (CAGIT) enter on this line the "property tax replacement credit" to be applied to reduce the amount to be raised by tax levy. The State Board of Tax Commissioners computes the distributions to be made each year and will furnish this information to county auditors in advance of preparing and publishing the budget. The distributions are divided into two portions, one known as "certified shares" which must be included in the Estimates of Miscellaneous Revenue, and the other known as "property tax replacement credit" which must be entered on line 13 of the published budget. Only the portion of the property tax replacement credit to be received in the year for which the budget is prepared is to be entered on line 13; the portion of the property tax replacement credit to be received between July 1 and December 31 of the current year must be entered in Column A of the Estimates of Miscellaneous Revenue, since that portion was applied to reduce the tax levy for the preceding year. As noted in Section H of this section, the amounts distributed for certified shares and for property tax replacement credit may be applied all to one fund or portions thereof to two or more funds; however, when received, care must be taken to see that the distributions are credited to such fund or funds in the amounts provided in the budget estimate for that year.

Line 15 - For State Board of Tax Commissioners use only.

Lines 14 and 16 - Enter on these lines the difference between line 12 and line 13, which will represent the amount to be raised by tax levy in those counties adopting the local option tax.

After completing the sixteen line statement under Estimate of County Funds to be Raised enter the amount of "net taxable property" of the county in the space provided, on which property taxes will be levied and collected in the ensuing year. Extreme care should be taken to determine the correctness of the amount, from the assessors' books and other records in the auditor's office. The State Board of Tax Commissioners will request a statement listing the assessments by taxing district to support the amount entered and also to provide that Board with the amounts furnished to other taxing units in the county, and these statements should be submitted with the budget papers. The term "net taxable property" will be the assessed valuations for the assessment year in which the budget is being prepared, adjusted for changes by the county board of review and State Board of Tax Commissioners, less exemptions and deductions from the assessed valuations.

The Notice to Taxpayers of Budget Estimates and Tax Rates shall be published twice in two (2) newspapers, published in the county. If only one (1) newspaper is published in the county then publication in that newspaper alone is sufficient. [IC 5-3-1-4 and IC 6-1.1-17-3] The first publication shall be made at least ten (10) days before the date fixed for the public hearing on the budget. [IC 6-1.1-17-3]

There shall be a meeting of the county council not later than the last meeting in September, of every year, for the purpose of fixing the rate of the tax levy and making appropriations. [IC 6-1.1-17-5]

The Ordinance for Appropriations and the Ordinance of Tax Levies must be read upon at least two (2) separate days before adoption. [IC 36-2-5-11] Therefore, the council must be in session for at least two (2) days at the regular annual meeting.

At the meeting of the council the auditor shall present all of the budget estimates. It is also the auditor's duty, before such meeting, to prepare ordinances to be adopted by the council. The council at this meeting shall act upon the ordinances fixing the tax levies and rates within the limits prescribed by law and make the necessary appropriations. [IC 36-2-5-11] Ordinance Form 4, listed in Section B of this section, has been prescribed for use of county auditors in complying with this law.

The county board of tax adjustment is composed of seven (7) members, who are required to be appointed before April 15 of each year and the appointments shall continue in effect until April 15 of the following year. The board shall hold its first meeting of each year on September 22 or on the first business day after September 22, if September 22 is not a business day, at which meeting it shall elect a chairman and a vice-chairman and proceed to perform its duties, as prescribed in IC 6-1.1-29.

The county auditor shall serve as clerk of the county board of tax adjustment and shall keep a complete record of all the board's proceedings. (IC 6-1.1-29-5)

The proper officers of each political subdivision shall file two (2) copies of the budget adopted by the appropriating body, two (2) copies of any findings adopted concerning objections in a petition, and a statement of the tax rate and levy fixed by the political subdivision with the county auditor at least two (2) days prior to the first meeting of the county board of tax adjustment. [IC 6-1.1-17-5]

The county board of tax adjustment shall review the budget, tax rate and tax levy of each political subdivision. The board shall revise or reduce, but not increase any budget, tax rate or tax levy. [IC 6-1.1-17-6] The county board of tax adjustment shall complete the duties assigned to it on or before October 1 of each year. If the county board of tax adjustment fails to complete its duties by October 1, the county auditor shall complete these duties. [IC 6-1.1-17-9]

After adjournment of the county board of tax adjustment the county auditor shall submit a copy of the minutes and one (1) copy of the budgets of the various political subdivisions to the State Board of Tax Commissioners. One (1) copy of each budget shall also be kept on file in the county auditor's office.

Note: IC 6-1.1-29-9 allows county council, through an ordinance, to abolish such board.

As soon as the budgets, tax rates and tax levies are approved or modified by the county board of tax adjustment, the county auditor shall within fifteen (15) days prepare a notice of the tax rates to be charged on each one hundred dollars ($100) of assessed valuation for the various funds in each taxing district. The county auditor shall post the notice at the county court house and publish it in two (2) news-papers which have general circulation in the county. [IC 6-1.1-17-12] If only one newspaper is published in the county, publication in that newspaper shall be sufficient. [IC 5-3-1-4]

A political subdivision may appeal to the State Board of Tax Commissioners for an increase in its tax rate or tax levy as fixed by the county board of tax adjustment or the county auditor. To initiate the appeal, the political subdivision must file a statement with the board within ten (10) days after publication of the notice required by the provisions of IC 6-1.1-17-12. The legislative body of the political subdivision must authorize the filing of the statement by adopting a resolution. The resolution must be attached to the statement of objections, and the statement must be filed by the following officers:

1. In the case of counties, by the board of county commissioners and by the president of the county council; or
2. In the case of all other political subdivisions, by the highest executive officer and by the presiding officer of the legislative body. [IC 6-1.1-17-15]

Ten (10) or more taxpayers may initiate an appeal from the action of the county board of tax adjustment on the budget of a political subdivision by filing a statement of their objections with the county auditor. The statement must be filed within ten (10) days after the publication of the notice required by the provisions of IC 6-1.1-17-12. The statement shall specifically identify the provisions of the budget and tax levy to which the taxpayers object. The county auditor shall forward the statement, with the budget, to the State Board of Tax Commissioners. [IC 6-1.1-17-13]

The county auditor shall initiate an appeal to the State Board of Tax Commissioners if the county board of tax adjustment reduces a poor relief tax rate below the rate necessary to meet the estimated cost of poor relief. [IC 6-1.1-17-14]

The State Board of Tax Commissioners may review, revise, reduce, or increase a political sub-division's budget, tax rate or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision. Before the State Board of Tax Commissioners reviews, revises, reduces or increases a political subdivision's budget, tax rate or tax levy, the board must hold a public hearing in the county in which the political subdivision is located. At least five (5) days before the date fixed for a public hearing, the board shall give notice of the time and place of the hearing and of the budgets, levies and tax rates to be considered at the hearing. The board shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general circulation is published in the county, the notice shall be published in that newspaper. [IC 6-1.1-17-16]

After all budgets have been finalized by the State Board of Tax Commissioners, the order showing the action of that board should be carefully reviewed to determine the rates to be used in computing property taxes. The budgets and the order of the State Board of Tax Commissioners should be carefully checked and rechecked to eliminate the chance of any error in determining the tax rates.

The proper officers of a political subdivision shall appropriate funds in such a manner that the expenditures for a year do not exceed the budget for that year as finally determined. [IC 6-1.1-18-4]

Immediately upon receipt of the order showing final action on the budgets by the State Board of Tax Commissioners, the county auditor, as secretary of the county board of tax adjustment, must notify the proper officers of each political subdivision of any revision, reduction or increase made in any budget, tax levy or rate by either the State Board of Tax Commissioners or the county board of tax adjustment, so that the officers may comply with the provisions of IC 6-1.1-18-4. This is most important not only to insure compliance with the law but so that deficit spending does not result from failure of the auditor to properly notify the affected officers.

If it is desired that more money be appropriated for a particular year than provided in the budget, as finally determined, the provisions of IC 6-1.1-18-5 must be observed. Notice of the meeting of the county council at which the proposed additional appropriations will be considered shall state the time and place at which the hearing will be held and given once at least ten (10) days before the date fixed for the meeting.

A sample notice to taxpayers of additional appropriations is shown on the following page. All pro-posed appropriations should be listed in the notice showing the name of each fund from which appropria-tions are to be made, the name of the office or department, the name of the appropriation account, the amount and the total appropriations requested for each fund, if two or more items are listed under any fund. Do not include the appropriation account numbers, since the account numbers are required only for accounting purposes.

The county council may authorize additional appropriations at a special meeting of the council by an ordinance passed by a majority vote of all the members of the council. The county council may adopt an ordinance that requires an additional appropriation to be passed by an affirmative vote of a certain number of members greater than a majority of all elected members of the county council. An ordinance adopted requiring an affirmative vote of a certain number of members greater than a majority of all elected members of the fiscal body to pass an additional appropriation must be adopted or repealed by a majority vote of all elected members of the county council. [IC 36-2-5-12]

After the public hearing is completed:

For all funds that received property taxes, except the Cumulative Bridge Fund, and for the County Highway Fund and the Local Road and Street Fund, the County Auditor shall file a Certified Copy of Additional Appropriations and any other relevant information with the State Board of Tax Commissioners.

For all funds that do not receive property taxes, other than the County Highway Fund and the Local Road and Street Fund, the County Auditor shall report the additional appropriations to the State Board of Tax Commissioners in the form of a certified copy.

The county council may approve the transfer of money from one major budget classification to another within a department or office, if the transfer does not require the expenditure of more money than the total amount set out in the budget as finally determined and if the transfer is approved at a regular public meeting and by proper ordinance. The transfer may be made without notice and without the approval of the State Board of Tax Commissioners. [IC 6-1.1-18-6]

Notice to Taxpayers of Additional Appropriations

Notice is hereby given the taxpayers of Parke County, Indiana, that the County Council of said County will meet at the Court House, Rockville, Indiana, at 10:00 o'clock A.M., on the 17th day of August, 1992, to consider the following additional appropriations in excess of the budget for the current year.

Taxpayers appearing at the meeting shall have a right to be heard. The additional appropriations as finally made will be referred to the State Board of Tax Commissioners. The Board will make a written determination as to the sufficiency of funds to support the appropriations made within fifteen (15) days of receipt of a Certified Copy of the action taken.

________________________________
(County Auditor)

*NOTE: It is not required by statute that appropriations to be reduced be specifically named in the published notice. It is essential, however, that they be included in the ordinance or resolution of appropriations adopted by the appropriating body.

By the provisions of IC 6-1.1-18-7, insurance recoveries resulting from damage to property of the county may be appropriated by the council without notice to taxpayers and without action thereon by the State Board of Tax Commissioners, if the funds are appropriated for the purpose of repairing or replacing the damaged property; however, under this section, the funds must be expended to repair or replace the property within the twelve (12) month period after receipt. When appropriated by the council the amount should be added to the appropriation account to which the expense of repairing or replacing the damaged property will be charged.

When the State Board of Tax Commissioners receives a Certified Copy of a proposal for an additional appropriation from funds including revenue from property taxes, motor vehicle highway or local road and street accounts, the Board shall determine whether sufficient funds are available or will be available during the calendar year for the proposal. The Board shall issue a written determination within 15 days of receipt of the proposal. The Board shall limit the amount of additional appropriation approval to revenues available, or to be made available, that have not previously been appropriated. The Certified Copy will include the appropriation encumbered from last year. The accuracy of these figures will be cer-tified by the County Auditor to the State Board of Tax Commissioners.

If an appropriation is to be funded with income in excess of revenue estimates made at the time of the annual State Tax Board budget hearing, then information supporting such additional revenue must be provided at the time of submission. If revenue is available from carryover cash that is not encumbered from the previous year or the current budget, supportive evidence is not necessary. Additional miscellaneous revenue should be shown by completing a revised Budget Form 2 detailing increases.

In some instances statutory authority is given the county auditor to make disbursements without an appropriation having been previously made for the specific purpose. Examples, which are not all inclusive, are as follows:

1. Premiums on official bonds. [IC 5-4-5-3]
2. Tax refunds. [IC 36-2-9-14]
3. Any money belonging to the state, school fund, or any fund of any township, town or city and commanded by law to be paid to such municipality. [IC 36-2-9-14]
4. Any money due a taxpayer which has been paid on a public improvement such as ditches and drains. [IC 36-2-9-14]
5. Redemption of property sold at tax sale. [IC 36-2-9-14]
6. Lodging, meals purchased, and mileage for conferences called by State Board of Accounts. [IC 5-11-14-1]
7. Examination of records. [IC 5-11-4-4]
8. Line fence assessments. [IC 32-10-9-4]
9. Federal grants, if advanced and not received as a reimbursement of expenditures.
10. Advances to conservancy districts on order of court. [IC 14-33-7-15]
11. Surplus tax. [IC 6-1.1-26-6]
12. Refund of money erroneously received. [IC 6-1.1-18-9]
13. Correction of errors in posting. [IC 6-1.1-18-9]
14. Jail commissary fund. [IC 36-8-10-21]
15. Investment of funds.
16. Title IV-D fund (clerk and prosecuting attorney portions).
17. Repayment of temporary loans.
18. Recorder's records perpetuation fund. [IC 36-2-7-10]
19. Firearms Training Fund. [IC 35-47-2-3]
20. Accident Report Fund. [IC 9-29-11-1]
21. County Law Enforcement Continuing Education Fund. [IC 5-2-8-1]
22. Community Corrections Grants. [IC 11-12-2]
23. Community Corrections Project Income. [IC 11-12-2-12]
24. Military Fines. [IC 10-2-5]

There may be other laws under which funds may be disbursed without appropriation; however, appropriations are required before disbursements may be made from any fund subject to the Budget Laws unless specific authority to disburse without appropriation is provided by law.

Although the statutes cited authorize disbursements to be made without appropriations, where any such expenses are payable from a fund supported by property taxes, the estimated expense of each item should be included in the budget in order to raise the necessary funds to meet such expense.

Warrants written without an appropriation should be posted on Form 24A, Ledger of Appropriations, Encumbrances, Disbursements and Balances, if the purpose for which the warrant was issued appears on the budget estimate forms. Other warrants written without an appropriation will be classified as "Non-Budgeted Expenditures" and posted in the manner prescribed on pages 5-8 and 5-9.

The following is a list of funds which require county council approval of an appropriation. Due to the nature of the funds, the State Board of Tax Commissioners does not require submission of an additional appropriation request before the local appropriation can be approved.

1. County Supplemental Adult Probation Services Fund. [IC 35-38-2-1]
2. County Supplemental Juvenile Probation Services Fund. [IC 31-6-4-18]
3. County User Fee Fund. [IC 33-19-8-6]
4. Plat Book Fund. [IC 36-2-9-18]
5. Local Emergency Right to Know Fund. [IC 6-6-10]
6. Pretrial Diversion Fund (Excess). [IC 33-19-8-7]
7. Community Corrections Home Detention Fund. [IC 11-12-7; IC 35-38-2.5-8]
8. County Extradition Fund. [IC 35-33-14]
9. County Misdemeanant Fund. [IC 11-12-6-6]
10. Supplemental Public Defender Services Fund. [IC 33-9-11.5-2]
11. Emergency Telephone System Fund. [IC 36-8-16-14]*
12. Local Health Maintenance Fund. [IC 16-46-10]

*County Commissioners appropriate this fund.

The first step in the levy and collection of property taxes is the assessment of real estate and personal property. The State Board of Tax Commissioners is empowered by law to establish the standards, as well as the forms and records related to assessments, and has published a "Personal Property Assessment Manual" and an "Indiana Real Property Assessment Manual." Therefore, instructions con-cerning the assessment of property by assessors are not included herein; however, forms and records related to the assessment of property will be found on pages 4-5 and 4-6 and the duties of the county auditor with the respect to accounting for assessments are discussed in this section.

Transfer Books

The county auditor shall keep a transfer book, arranged by townships, cities, and towns (taxing districts). In the transfer book the auditor shall enter a description, for the purpose of taxation, of land that is conveyed by deed or partition, the date of the conveyance, the names of the parties, and the post office address of the grantee. In addition, the auditor shall endorse on the deed or instrument of conveyance the words "duly entered for taxation subject to final acceptance for transfer," "not taxable," "has already been listed for taxation," "or duly entered for taxation." [IC 6-1.1-5-4]

County Form No. 55, Transfer Book, prescribed by the State Board of Accounts, commonly referred to as a real estate ownership record, is designed to contain a list of all real estate located in each taxing district, showing for each parcel: (1) name or names of owner; (2) description of lands and lots, including names of addition, lot and block number, or section, township and range and number of acres; (3) value of land or lot; (4) value of improvements; and (5) value of additional improvements and the year improvements were added. Some counties also include in this book the current addresses of owners for use in preparing the tax duplicate; however, most counties maintain separate records for this purpose or, in the case of counties using mechanized or computer equipment, the addresses are maintained through the use of special equipment.

The book also contains spaces for recording changes in ownership, showing: (1) from whom transferred; (2) to whom transferred, including the address of the grantee; (3) the type and date of instru-ment from which the transfer was made; and (4) the date of the transfer.

Transfer books may be either loose-leaf or a bound record. There are no statutory requirements as to how often the transfer books should be recopied; however, it is recommended that new transfer books be prepared after each periodical reassessment of real property is completed.

The transfer books are used in preparing the real estate assessors' books discussed in this section.

In those counties which have installed a mechanized tax accounting system, under which real estate is identified by a parcel number, usually referred to as a "key number," this board has approved an alternate form of transfer book, or ownership record, for use of such counties in lieu of the prescribed form. However, its use is limited to those counties for which specifically approved.

Control of Assessments - Because many persons who are not employees of the county auditor frequently use the transfer books, such as abstractors, attorneys and other persons seeking information, many county auditors maintain a "control" account over the assessed valuation of real estate for each taxing district to insure that no unauthorized changes are made in the assessments, and this practice is encouraged by the State Board of Accounts.

Such a control can be maintained by use of a simple three-column ledger or journal, with a separate sheet for each taxing district, to show in the first column any "additions," in the second column any "reductions" and in the third column the "net total assessments." To open the control account for each district, the total assessments (before deductions and exemptions) upon which the tax duplicate is prepared would be entered in the column headed "net total assessments." After each succeeding assessment period, the total value of additional assessments would be entered in the column headed "additions" and any reductions in assessment (upon petition for reassessment) would be entered in the column headed "reductions." Usually, these figures can be determined from the real estate assessors' books returned by the assessors after action thereon by the county property tax assessment board. After the assessments are fixed, should assessments be made for omitted property or reductions be made for errors in assessments, any changes made in the transfer book would be entered in this record, making reference to the particular real estate affected.

Not only does such a record control unauthorized changes being made in the assessments entered in the transfer books, but it also materially assists in preparing the tax duplicate for the succeeding year by having a predetermined total for each taxing district, to insure that no property has been omitted.

Plat Books

Except in civil townships having a population of 35,000 or more and in civil townships in which a city of the second class is situated, the auditor, or, if authorized by county ordinance, the surveyor of each county shall maintain a plat of each civil township of the county the auditor or surveyor serves. The plats shall be divided in such a manner that they clearly exhibit the ownership and assessed value of each parcel of real property. The plats shall be in the form and shall contain the information prescribed by the State Board of Tax Commissioners, and they shall be kept current. [IC 6-1.1-5-1]

Notwithstanding the foregoing provisions most county auditors maintain plat books for all taxing districts and, if being maintained by the county auditor, this practice is encouraged as an effective control over the ownership of assessment records.

When deeds are presented for transfer the legal description should be checked to the description shown in the plat books and, to comply with the provisions of IC 6-1.1-5-1 requiring the books to be kept current, the name or names of the owners should be changed each time real property is transferred. If an error is found in the deed presented for transfer, such error should be called to the attention of the person presenting the deed and, if necessary, correction should be made prior to transferring the property for taxation.

Assessors' Books and Supplies

Before the assessment date of each year, the county auditor shall deliver to each township assessor the proper assessment books and necessary blanks for the listing and assessment of personal property. [IC 6-1.1-3-5]

The State Board of Tax Commissioners has prescribed County Form No. 29, Real Estate Assessor's Book, and County Form No. 29A, Personal Property Assessor's Book, for use of township assessors in making assessments and filing the assessment lists with the county auditor at the close of the assessment period. In addition, the State Board of Tax Commissioners has prescribed County Form No. 29B, Township Assessor's Supplemental List of Personal Property Assessments, for use of township assessors in reporting personal property assessments filed after the assessor's book has been filed with the county auditor.

Real Estate Assessor's Book

The county auditor of each county shall annually prepare and deliver to the township assessor of each township, County Form No. 29, Real Estate Assessor's Book, within thirty (30) days after the assessment date, except for civil townships having a population of 35,000 or more and in civil townships in which a city of the second class is situated, where the books are prepared by the township assessor. [IC 6-1.1-5-8] The "assessment date" is March 1 which means the book is to be delivered by March 31.

A separate real estate assessor's book should be prepared for each taxing district, from the transfer book (real estate ownership record) and, pursuant to the law cited, shall be delivered to the township assessor responsible for the assessment of the real estate in such taxing district.

In preparing the assessor's book care should be taken to observe the instructions issued by the State Board of Tax Commissioners. Of particular importance is real estate transferred to a new owner on the transfer book since the last assessment period, where there is a change in the "land usage" or where land has been subdivided or rezoned, which requires the real estate to be reassessed, pursuant to the provisions of IC 6-1.1-4-12. For example, where a deed is presented for transfer of a portion of a tract of land assessed for agricultural purposes and it is to be used for another purpose, such as for construction of a residence, a proportionate reduction should be made in the assessed valuation of the land of the seller for agricultural purposes but no assessment should be entered in the name of the purchaser, since the law cited requires the land be reassessed. The same is true with respect to transfers of land from agricultural or residential to industrial or commercial. To assist assessors in maintaining current valuations according to the land usage, county auditors should be constantly alert to such changes when deeds are transferred for taxation.

Not later than May 15, each assessing official shall prepare and deliver to the county assessor a detailed list of the real property listed for taxation in the township. On or before July 1 of each year, each county assessor shall, under oath, prepare and deliver to the county auditor a detailed list of the real property listed for taxation in the county. The assessing officials and the county assessor shall prepare the list on the form prescribed by the State Board of Tax Commissioners. [IC 6-1.1-5-14] The Real Estate Assessor's Book has been prescribed to comply with this law, in which the assessments shall be listed. Any additional assessments or changes in assessments during such assessment period shall then be subject to review by the county property tax assessment board and the State Board of Tax Commissioners, as provided for by law.

The Real Estate Assessor's Book also contains columns in which all deductions and exemptions from assessments shall be entered. After the property tax assessment board has adjourned, the changes in assessments shall be entered in the transfer books and in the "controls" over real estate assessments, discussed on page 9-3, if maintained by the auditor.

After all entries have been completed in this book and the Personal Property Assessor's Book discussed herein, the books shall be totaled for use in (1) preparing the abstract of assessments required to be furnished the State Board of Tax Commissioners, (2) for compiling the net assessed valuation of taxable property required to be furnished each governmental unit for the preparation of budgets, and (3) for preparing the tax duplicate.

Personal Property Assessor's Book

On or before June 1 of each year, each township assessor of a county shall deliver to the county assessor the Personal Property Assessor's Book, which states by taxing district the personal property assessments filed with the assessor on or before the filing date of that year. [IC 6-1.1-3-17] The prescribed form is designed to show the name, address and assessment of each taxpayer for use in preparing the tax duplicate and mailing notices and statements to each taxpayer.

On or before July 1 of each year, each county assessor shall certify to the county auditor Form No. 29B, Township Assessor's Supplemental List of Personal Property Assessments. This list shall contain, by taxing district, the personal property assessments as shown on returns filed with the assessor after the filing date and before July 1 of that year and any assessment changes made before July 1 of that year by the assessor. [IC 6-1.1-3-17]

All personal property assessments are subject to review by the county property tax assessment board and by the State Board of Tax Commissioners.

Assessment of Public Utilities

The property owned or used by a public utility company, including without limitation, railroads, pipe line companies, electric, gas, steam and water utilities, telephone, telegraph and cable companies and bus companies, shall be assessed by the State Board of Tax Commissioners in the manner prescribed in IC 6-1.1-8.

As soon as the State Board of Tax Commissioners determines its final assessments of distributable property, the board shall certify to the county assessor and county auditor of each county: (1) the distributable property assessed values which the board determines are distributable to the taxing districts of the county; and (2) the assessed values, according to the board's records, of fixed property located in the taxing districts of the county. [IC 6-1.1-8-27]

In addition, if a public utility company has appealed the board's final assessment of the company's distributable property, the board shall notify the county auditor of the appeal. [IC 6-1.1-8-27]

The county assessor shall review the State Board of Tax Commissioners' certification to determine if any of a public utility company's property which has a definite situs in the county has been omitted. The county auditor shall enter for taxation the assessed valuation of a public utility company's distributable property which the board distributes to a taxing district of the county. [IC 6-1.1-8-27]

Public utility assessments are usually certified by the State Board of Tax Commissioners to each county auditor during the month of August so that the assessments will be available in compiling the net assessed valuations to be certified by the county auditor to local governmental units for use in preparing budgets. The assessments for each public utility are listed by taxing unit (district) on Form No. 11A for all utilities, except for railroads which are listed on Form No. 32-10. The assessments are also accompanied with a memorandum from the State Board of Tax Commissioners clearly explaining the manner of handling the assessments on the records. 2002 10-6

Assessment of Mobile Homes

The assessment of mobile homes is governed by 50 IAC 3.1 issued by the State Board of Tax Commissioners and IC 6-1.1-7.

The Notice of Assessment of Mobile Home, Form No. 2, shall be prepared in quadruplicate by the township assessor and the pink copy forwarded to the county auditor. Upon receipt of mobile home assessments from the township assessor, the county auditor shall enter the assessments in a separate section of the tax duplicate for each taxing district titled "Mobile Homes." The mobile homes section should be placed immediately following the regular section of the duplicate for real estate and personal property assessments and taxes reported on the March abstract. By observing this procedure, delinquencies from prior years on mobile homes, which must be reported on the previous December settlement and brought forward to the current year's duplicate, will be included on the March abstract.

The tax on a mobile home is due and payable in the same year as the assessment is made. For example, the tax on a mobile home assessed as of January 15, 2002, is due and payable in two (2) installments on May 10, 2002, and November 10, 2002, unless the entire amount of the tax is less than twenty-five dollars ($25.00) and council has adopted an ordinance requiring the owner to pay the entire tax liability in the May installment. The same penalties for delinquencies apply to mobile home taxes as apply to property taxes.

The collection of taxes on mobile homes shall be enforced by the county treasurer in the same manner as delinquent personal property taxes, by making a demand for payment and either by levy on and sale of the mobile home or other personal property of the taxpayer, or by certification of the delinquencies to the clerk of the circuit court where they become a judgment against the taxpayer.

Additional Assessments

Pursuant to IC 6-1.1-9-1, the township assessor, county assessor, or county property tax assessment board may assess any real or personal property which has been omitted from, or undervalued on, the assessment rolls or the tax duplicate for any year or years, by following the provisions of that law and subject to the limitations and further provisions of IC 6-1.1-9.

The State Board of Tax Commissioners has prescribed Form No. 122, Report of Assessment for Omitted or Undervalued Property, which form should be filed with the county auditor when a township assessor or county official assesses any omitted or undervalued property. The form provides a media for entering or changing assessments in the records of the auditor's office and in entering such assessments and the taxes due thereon in the tax duplicate.

The report is designed to show the year for which the assessment was made or, in the case of a personal property assessment return, the due date for filing the return, so that penalties which might be due for failure to file a personal property return by the due date, or interest which might be payable on the taxes charged, may be computed and entered in the tax duplicate. The State Board of Tax Commissioners has also prescribed Form No. 122A, Report of Assessment Penalties, for use of township assessors in reporting penalties on personal property returns filed after the due date.

These forms are not required when additional assessments are made by the county property tax assessment board, upon appeal to or upon action by that board, since changes in assessments will be shown in the minutes of the board. If desired, however, Form No. 122 may be used to provide a posting media for all additional assessments to insure that they are properly entered in the records.

The matter of entering additional assessments on the tax duplicate and instructions pertaining to the penalties and interest for late assessments are discussed in Section F of this section.

Reductions in Assessments

After the lists of assessments (assessors' books) are filed with the county auditor, changes in the assessments, except for omitted or undervalued property previously discussed, may be made only upon appeal to the county property tax assessment board or by filing Form No. 133, Petition for Correction of Error, which form must be approved by two of the following three officials: township assessor, county assessor, and county auditor. If less than two sign, the county auditor shall refer the matter to the county property tax assessment board of appeals for determination. There is no authority for changes to be made upon the sole request of a township assessor or other official. This matter is further discussed in Section F under "Certificates of Error."

The State Board of Tax Commissioners has also prescribed two other forms to be used in correcting (reducing) assessments. The forms are: Form No. 91A, Petition for Correction of Assessment of Property Appropriated for Public Use, and Form No. 135, Affidavit of Destroyed or Removed Property. Upon following the instructions and requirements set out on Form No. 135, the auditor is authorized to accordingly reduce the assessment on the property affected. In the case of Form No. 91A, however, this form must be attached to Form No. 134, Petition for Real Estate Reassessment, to be acted upon by the State Board of Tax Commissioners.

All such petitions must be carefully filed by the auditor to support reductions made in assessments.

Petitions for Reassessment of Real Estate

A petition for the reassessment of real property may be filed with the State Board of Tax Commissioners on or before March 31 of any year which is not a general election year and in which no general reassessment of real property is made. [IC 6-1.1-4-5] The petition must be filed on Form No. 134, Petition for Real Estate Reassessment, prescribed by the State Board of Tax Commissioners, and may be filed by the assessor of the township, the assessor of the county, or by the owner or owners of the parcel or parcels of real property.

In addition, IC 6-1.1-4 contains other provisions with respect to filing petitions for reassessment of real property, including property partially or totally destroyed as a result of a disaster. A "137R" (Petition for Survey and Reassessment - Real and Personal Property Partially or Totally Destroyed by Disaster) is used for this purpose.

Appeals to Property Tax Assessment Board

A taxpayer may obtain a review by the county property tax assessment board of a county or township official's action with respect to the assessment of the taxpayer's tangible property if the official's action requires the giving of notice to the taxpayer. In order to appeal a current assessment and have a change in the assessment effective for the most recent assessment date, the taxpayer must file a petition with the assessor of the county in which the action is taken within forty-five (45) days after the notice of a change is given the taxpayer or May 10 of that year, whichever is later. The county assessor shall notify the county auditor that the assessment is under appeal. [IC 6-1.1-15-1]

A change in assessment made as a result of an appeal filed in the same year that notice of a change in the assessment is given to the taxpayer and after the time mentioned in the previous paragraph becomes effective for the next assessment date.

A taxpayer may appeal a current real estate assessment in a year even if the taxpayer has not received a notice of assessment in the year. If an appeal is filed on or before May 10 of a year in which the taxpayer has not received notice of assessment, a change in the assessment resulting from the appeal is effective for most recent assessment date. If the appeal is filed after May 10, the change becomes effective for the next assessment date.

The petition (appeal) to the county property tax assessment board shall be filed on Form No. 130RA (Residential and Agricultural), 130CI (Commercial and Industrial), and 130PP (Personal Property), Petition to the County Property Tax Assessment Board for Review of Assessment, prescribed by the State Board of Tax Commissioners.

The organization of the county property tax assessment board, the duration of the session of the board and the notice required to be given by the county auditor of the time, place and purpose of the annual session are discussed in IC 6-1.1-28. The powers and duties of the board with respect to assessments are set out in IC 6-1.1-28 and 6-1.1-13. Prior to convening the board, each member of the board shall take and subscribe to the oath prescribed in IC 6-1.1-28-2, which oath shall be administered by and filed with the county auditor.

The powers granted to the county property tax assessment board under IC 6-1.1-13 apply only to the tangible property assessments made with respect to the last preceding assessment date. Before a county property tax assessment board changes any valuations or adds any tangible property and the value of it to a return or the assessment rolls under this Chapter, the board shall give prior notice by mail to the taxpayer. The notice must state a time when and place where the taxpayer may appear before the board. The time stated in the notice must be at least ten (10) days after the date the notice is mailed. [IC 6-1.1-13-1] It is important to note that this section restricts the powers of the board only to assessments made during the last preceding assessment period; the board has no authority to reduce an assessment made in a prior year, although the board does have the power to assess omitted or undervalued property for any year or years, pursuant to IC 6-1.1-9-1, by following the provisions in IC 6-1.1-9 and subject to the limitations in that chapter.

When the county property tax assessment board convenes, the county auditor shall submit to the board the assessment list of the county for the current year as returned by the township assessors and as amended and returned by the county assessor. The county assessor shall make recommendations to the board for corrections and changes in the returns and assessments. The board shall consider and act upon all the recommendations. [IC 6-1.1-13-2]

A county property tax assessment board shall, on its own motion or on sufficient cause shown by any person, add to the assessment list the names of persons, the correct assessed valuation of under-valued or omitted personal property, and the description and correct assessed valuation of real property undervalued on or omitted from the lists. [IC 6-1.1-13-3]

The board has other powers and duties enumerated in IC 6-1.1-13, 6-1.1-9, 6-1.1-15 and 6-1.1-28 and these chapters of the Code should be carefully reviewed when the board convenes.

In addition to the board's duties with respect to assessments, the board also has the duty to act upon all applications for tax exemptions, pursuant to IC 6-1.1-11, and shall also act upon all applications for mortgage deductions, pursuant to IC 6-1.1-12-4 through 6-1.1-12-7. This matter is more fully covered in Section D of this section.

The county assessor, as secretary of the board, shall keep full and accurate minutes of the proceedings of the board. A majority of the board constitutes a quorum for the transaction of business. Any question properly brought before the board may be decided by the agreement of the majority of the whole board. [IC 6-1.1-28-1] It is most important, since the board speaks from its minutes, that the minutes show the action by the board on each assessment or matter before the board.

Appeals to State Board of Tax Commissioners

A taxpayer may obtain a review by the State Board of Tax Commissioners of a county property tax assessment board's action with respect to the assessment of that taxpayer's tangible property if the county board's action requires the giving of notice to the taxpayer.

A township assessor or county assessor may obtain a review by the State Board of Tax Commissioners of any assessment which he/she has made, upon which he/she has passed, or which has been made over his/her protest.

In order to obtain a review by the State Board of Tax Commissioners under this section, the party must file a petition for review with the appropriate county assessor within thirty (30) days after notice of the county property tax assessment board's action is given to the taxpayer.

When a petition for review is filed under this section, the county assessor shall transmit the petition to the State Board of Tax Commissioners within ten (10) days after the petition for review is filed. [IC 6-1.1-15-3]

The State Board of Tax Commissioners has prescribed Form No. 131PP and 131RP, Petition to the State Board of Tax Commissioners for Review of Assessment, which should be used in filing appeals under the above cited law.

In addition, pursuant to IC 6-1.1-11-7, where an application for tax exemption has been disapproved by the county property tax assessment board, the owner may, in the manner prescribed in IC 6-1.1-15-3, within thirty (30) days after notice of disapproval is mailed, petition the State Board of Tax Commissioners to review the county board's determination. The State Board of Tax Commissioners has prescribed Form No. 132, Petition to the State Board of Tax Commissioners for Review of Exemption, for filing appeals under that law.

Powers and Duties

The State Board of Tax Commissioners has broad powers in the administration of the property tax laws. Included, without limitation, are the following:

1. Promulgate rules and regulations concerning the assessment of tangible property; pre-scribe or promulgate the property tax forms and returns which taxpayers are to complete and on which the taxpayer's assessments will be based; and prescribe or promulgate the forms to be used to give taxpayers notice of assessment actions.
2. Assess the property of all public utilities, including railroads.
3. Hold hearings and act upon all petitions and appeals filed with the board.
4. Review approved exemption applications filed with the board and to deny an exemption if the board determines the property is not tax exempt under the laws of this state.
5. Review and equalize assessments, both real and personal property.
6. Review the assessment or reassessment of any tangible property and to reassess the property.
7. Hold hearings and review the budgets of all governmental units, following action thereon by the county board of tax adjustment, and to fix the budgets, tax levies and rates for such units.

Orders From Tax Board

When the State Board of Tax Commissioners makes a determination on any matter before the board a notice or order of the board's action, or a copy thereof, will be furnished the county auditor, if it affects the records in that office. Upon receipt, the auditor is authorized to comply with such order or notice and to accordingly make necessary changes in the records.

Appeals to Courts

The rights of taxpayers to appeal assessments are provided by IC 6-1.1-15. Pursuant to Section 5 of that Chapter, IC 6-1.1-15-5, a person may appeal the State Board of Tax Commissioners' final determination regarding an assessment to the Indiana Tax Court within forty-five (45) days after the date of the notice.

Effect of Appeals Upon Assessments

If a petition for review to any board or a proceeding for judicial review in the tax court regarding an assessment or increase in assessment is pending, the taxes resulting from the assessment or increase in assessment are, notwithstanding the provisions of IC 6-1.1-22-9, not due until after the petition for review, or the proceeding for judicial review, is finally adjudicated and the assessment or increase in assessment is finally determined. However, even though a petition for review or a proceeding for judicial review is pending, the taxpayer shall pay taxes on the tangible property when the property tax installments come due. The amount of taxes which the taxpayer is required to pay, pending the final determination of the assessment or increase in assessment, shall be based on:

1. The assessed value reported by the taxpayer on his or her personal property return if a personal property assessment, or an increase in such an assessment, is involved; or
2. An amount based on the immediately preceding year's assessment of real property if an assessment, or increase in assessment, of real property is involved.

If the petition for review or the proceeding for judicial review is not finally determined by the last installment date for the taxes, the taxpayer, upon showing of cause by a taxing official or at the tax court's discretion, may be required to post a bond or provide other security in an amount not to exceed the taxes resulting from the contested assessment or increase in assessment.

Each county auditor shall keep separate on the tax duplicate each contested assessment and each contested increase in assessment. The State Board of Tax Commissioners shall not consider contested assessments or contested increases in assessments when establishing rates and calculating state school support. [IC 6-1.1-15-10]

If a review or appeal authorized under this chapter results in a reduction of the amount of an assessment or if the State Board of Tax Commissioners on its own motion reduces an assessment, the taxpayer is entitled to a credit in the amount of any overpayment of tax on the next successive tax install-ment, if any, due in that year. If, after the credit is given, a further amount is due the taxpayer, he may file a claim for the amount due. If the claim is allowed by the board of county commissioners, the county auditor shall, without an appropriation being required, pay the amount due the taxpayer. The county auditor shall charge the amount refunded to the taxpayer against the accounts of the various taxing districts to which the overpayment has been paid. [IC 6-1.1-15-11]

Where taxes on an assessment are not paid while an appeal is pending and they were "not due until after the petition for review, or the appeal, is finally adjudicated," pursuant to the law quoted herein, no penalty shall attach to such taxes until the next succeeding May 10 or November 10 when such taxes are due and payable; however, the taxpayer is obligated to pay 10% interest thereon from the date the taxes for each installment would have been payable to the date of payment, or to the due date for payment of such taxes, pursuant to IC 6-1.1-37-9, which is further discussed in Section F of this section.

The auditor of each county shall, before March 15 of each year, prepare a roll of property taxes payable in that year for the county. This roll shall be known as the "Tax Duplicate" and shall show:

1. The value of all the assessed property of the county;
2. The person liable for the taxes on the assessed property; and
3. Any other information that the State Board of Accounts, with the advice and approval of the State Board of Tax Commissioners, may prescribe.

The county auditor shall comply with the instructions issued by the State Board of Accounts for the preparation, preservation, alteration, and maintenance of the tax duplicate. The county auditor shall deliver a copy of the tax duplicate to the county treasurer before March 1st of each year. [IC 6-1.1-22-3]

County Form No. 9, Tax Duplicate, has been prescribed by the State Board of Accounts, in which record all assessments and taxes shall be entered and which record shall be used in accounting for all charges, credits and taxes returned unpaid. The prescribed form of tax duplicate is illustrated on pages 9-21 and 9-22.

The State Board of Accounts has approved alternate forms of the tax duplicate, unit ledger card system and computerized systems for many counties, in lieu of the prescribed form; however, where any alternate form or system has been approved, it is required that such form or system produce the same information as the prescribed form.

The tax duplicate should be prepared from the real estate assessors' books (real estate ownership records), the personal property assessors' books and the public utility and railroad assessments certified by the State Board of Tax Commissioners, giving consideration to the modification of such assessments upon appeal or action thereon by the county property tax assessment board or by the State Board of Tax Commissioners. A separate duplicate must be prepared for each taxing district.

The initial work in preparing the duplicate, if desired, may begin as early as the assessment date (March 1) by entering the names of owners and descriptions of the real estate therein at the time the real estate assessors books are prepared for township assessors. After the property tax assessment board adjourns they may then be completed by entering the assessments, exemptions and deductions and net value of taxable property on which taxes will be computed and billed. In those counties having mechanized equipment the initial preparation of the tax duplicate may begin at a later date but every effort should be made to enter all information on the duplicate to and including the "net value of taxable property" prior to receiving the final tax rates from the State Board of Tax Commissioners, in order to expedite delivery of the duplicate to the county treasurer for collection.

The State Board of Tax Commissioners will furnish the county auditor with the tax rates on which taxes for each taxing district are to be computed and will also furnish the percentage of state property tax replacement credit and homestead credit to be given taxpayers in each such taxing district. After computing the gross tax for each installment (column 5 of the duplicate), the state property tax replacement credit and homestead credit (column 6) and the net tax for each installment (column 7), the late assessment penalties shall be entered in columns 8 and 9 and the total current tax for the year, including late assessment penalties, shall be entered in column 10. Delinquencies from former years shall be entered in columns 11 and 12 and the total of all tax, penalties and interest extended into column 13. (See page 9-21)

Each column of the duplicate shall be added to arrive at the total assessments and taxes charged for each taxing district and the accuracy of each column proved. The proof should include multiplying the net value of taxable property times one-half of the tax rate for such taxing district to verify the correctness of the tax computed for each installment. Because of fractions of cents (mills) involved in computing each item of taxes there may be a variation between this computation and the total taxes in column 5; however, such variation should be minimal and if a large difference exists, the computations should be checked. It is well to make these computations as each page of the duplicate is completed and balanced to insure the correctness of the final totals. The same proof should be made of the state property tax replacement credit and homestead credit (column 6), as applied to the gross tax for each installment.

Notice to Taxpayers of Tax Rates

Immediately upon the receipt of the tax duplicate, the county treasurer shall give notice of the rate of tax per one hundred dollars ($100) of assessed valuation to be collected in the county for each purpose and the total of the rates in each taxing district. This notice shall be published in the form prescribed by the State Board of Tax Commissioners three (3) times with each publication one (1) week apart.

The notice required by this section shall be printed in two (2) newspapers which are published in the county. However, if two (2) newspapers are not published in the county, the notice shall be printed in one (1) newspaper. [IC 6-1.1-22-4]

Abstract Filed With Auditor of State

On or before March 15 of each year, the county auditor shall prepare and deliver to the Auditor of State and the county treasurer a certified copy of an abstract of the property, assessments, taxes, deduc-tions, and exemptions for taxes payable in that year in each taxing district of the county. The county auditor shall prepare the abstract in such a manner that the information concerning property tax deductions reflect the total amount of each type of deduction. The abstract shall also contain a statement of the taxes and penalties unpaid in each taxing district at the time of the last settlement between the county auditor and county treasurer and the status of these delinquencies. The county auditor shall prepare the abstract on the form prescribed by the State Board of Accounts. The Auditor of State, county auditor, and county treasurer shall each keep a copy of the abstract in his or her office as a public record. [IC 6-1.1-22-5]

The abstract is filed on Form No. 1-A, Abstract of Property Valuations and Amount and Kind of Taxes Levied Thereon, prescribed by the State Board of Accounts. The abstract forms will be furnished county auditors by the Auditor of State at the time the December settlement forms are furnished by that office.

Taxes on Additional Assessments and Taxes Recharged

Taxes on additional assessments made or received after the tax duplicate has been completed and delivered to the county treasurer shall be entered in a separate section of the duplicate for each taxing district titled "Additional Assessments." Such assessments should not be commingled with mobile homes and tax judgments collected. This section of the duplicate will also be used for any taxes, penalties and interest recharged, resulting from certificates of error or tax refunds for assessments and taxes improperly listed in the regular tax duplicate.

Taxes on Mobile Homes

The assessment of mobile homes is discussed on page 9-6 of this manual. Taxes on mobile homes shall be entered in a separate section of the tax duplicate for each taxing district titled "Mobile Homes."

The taxes on mobile homes shall be accounted for and reported in the same manner as taxes on additional assessments. The total charges shall be reported in the December settlement and any taxes returned unpaid shall be reported in the December settlement and carried forward to the succeeding year's tax duplicate.

The enforcement of the collection of taxes on mobile homes is discussed on page 9-6.

Delinquent Tax Judgments Collected

Collections on delinquent tax judgments and the interest thereon shall be entered on the tax duplicate by the county treasurer, in a "separate section" for each taxing district reserved for that purpose. The county treasurer is also required to enter the satisfaction of all judgments paid in the tax judgment record maintained in the office of the clerk of the circuit court and in the office of the treasurer.

The entries in the duplicate for each taxing district need only show the name of the taxpayer, reference to the judgment docket, the charge for the total judgment and interest collected in the "Delinquent Tax" column, and the date of payment and amount collected. The total of amounts collected for both settlements will be entered on line 19 of the apportionment sheets and the settlement sheet for the December settlement.

When a judgment is collected, interest thereon is required to be charged and collected by the treasurer and computed from the date of certification of the judgment to the clerk of the circuit court to the date of payment. Interest on judgments shall be computed at the rate of 6% per annum to and including September 2, 1971; at the rate of 8% per annum from September 3, 1971 through December 31, 1981; at the rate of 12% per annum from January 1, 1982 through June 30, 1988; at the rate of 10% per annum from July 1, 1988 through December 31, 1993; and at the rate of 8% per annum on or after January 1, 1994. [IC 24-4.6-1-101]

Penalties and Interest on Assessments

Penalties - If a person fails to file a required personal property return on or before the due date, the county auditor shall add a penalty of twenty-five dollars ($25.00) to the person's next property tax installment. The county auditor shall also add an additional penalty to the taxes payable by the person if he fails to file the personal property return within thirty (30) days after the due date.

The amount of the additional penalty is twenty percent (20%) of the taxes finally determined to be due with respect to the personal property which should have been reported on the return.

A personal property return is not due until the expiration of any extension period granted by the township assessor under IC 6-1.1-3-7.

The penalties prescribed in this section do not apply to an individual or his or her dependents if he or she is in the military or naval forces of the United States on the assessment date; and is covered by the Federal Soldiers' and Sailors' Civil Relief Act. [IC 6-1.1-37-7]

If a person fails to include on a personal property return the information, if any, that the State Board of Tax Commissioners requires under IC 6-1.1-5-13, the county auditor shall add a penalty to the property tax installment next due for the return. The amount of the penalty is twenty-five dollars ($25.00).

If the total assessed value that a person reports on a personal property return is less than the total assessed value that the person is required by law to report and if the amount of the undervaluation exceeds five percent (5%) of the value that should have been reported on the return, then the county auditor shall add a penalty of twenty percent (20%) of the additional taxes finally determined to be due as a result of the undervaluation. The penalty shall be added to the property tax installment next due for the return on which the property was undervalued. If a person has complied with all of the requirements for claiming a deduction, an exemption, or an adjustment for abnormal obsolescence, then the increase in assessed value that results from a denial of the deduction, exemption, or adjustment for abnormal obsolescence is not considered to result from an undervaluation for purposes of this subsection.

A penalty is due with an installment whether or not an appeal is filed under IC 6-1.1-15-5 with respect to the tax due on that installment.

Interest - When an assessment is made or increased after the date or dates on which the taxes for the year for which the assessment is made were originally due, the taxpayer shall pay the taxes thereon and interest on such taxes at the rate of ten percent (10%) per year from the original due date or dates of the installment or installments to the date of payment or, if not paid, to the date on which the taxes thereon are due and payable.

The taxpayer shall pay the taxes on such assessment and the 10% interest thereon on or before the due date of the next installment, May 10 or November 10, whichever occurs first. If, however, the taxpayer did not voluntarily sign and file an assessment return for the taxes, a notice of the assessment action must be received by the taxpayer at least thirty (30) days before the payment date. If not given the assessment notice within thirty (30) days before May 10 and November 10, the taxes shall be payable on the due date of the next succeeding installment.

If the taxpayer does not pay the taxes resulting from the assessment by the due date fixed for payment thereof, 10% penalty shall attach thereto and such tax will be subject to the further penalties prescribed by law. [IC 6-1.1-37-9] No interest is to be charged after the due date when the penalties for nonpayment accrue.

Certificates of Error

Corrections of errors in the tax duplicates are to be made by the issuance of Certificates of Error, County Form No. 127-CE, and posted as a noncash credit on the tax duplicate. In addition, the certificates are required to be accounted for on County Form No. 127-CER, Register of Certificates of Error, and a copy of the register must be furnished to the Auditor of State with the December settlement.

A certificate of error may be issued for any one or more of the following reasons:

1. The description of the real property was in error;
2. The assessment was against the wrong person;
3. Taxes on the same property were charged more than one time in the same year;
4. There was mathematical error in computing the taxes or penalties on the taxes;
5. There was an error in carrying delinquent taxes forward from one (1) tax duplicate to another;
6. The taxes, as a matter of law, were illegal;
7. There was a mathematical error in computing an assessment; or
8. Through an error of omission by any state or county officer, the taxpayer was not given credit for an exemption or deduction permitted by law.

The county auditor shall correct an error described under items (1), (2), (3), (4), or (5) when he finds that the error exists.

If the tax is based on an assessment made or determined by the State Board of Tax Commissioners, the county auditor shall not correct an error described under items (6), (7), or (8) until after the correction is either approved by the State Board of Tax Commissioners or ordered by the tax court.

If the tax is not based on an assessment made or determined by the State Board of Tax Commissioners, the county auditor shall correct an error described under items (6), (7), or (8) only after Form No. 133, Petition for Correction of Error, has been filed in duplicate by the owner of the property or his or her authorized representative and the petition is approved by at least two (2) of the following officials: the township assessor, the county assessor, and the county auditor. If two (2) of these officials do not approve such a correction, the county auditor shall refer the matter to the County Property Tax Assessment Board for determination. The County Property Tax Assessment Board shall provide a copy of the determination to the taxpayer and to the county auditor. A taxpayer may appeal a determination of the County Property Tax Assessment Board to the Indiana board for a final administrative determination. An appeal must be filed with the Indiana board not more then thirty (30) days after the determination by the County Property Tax Assessment Board. The Indiana board shall review the determination of the County Property Tax Assessment Board and send a final administrative determination to the taxpayer, the county auditor, the county assessor, and the township assessor. The certificate of error should not be issued until after the order of the Indiana board or Property Tax Assessment Board, approving the correction, has been received.

If a correction or change is made in the tax duplicate after it is delivered to the county treasurer, the county auditor shall transmit a certificate of error to the county treasurer. The county treasurer shall keep the certificate as his/her voucher for settlement with the county auditor. [IC 6-1.1-15-12]

Where a certificate of error is issued under item (2) or where taxes are refunded by reason of being assessed against and paid by the wrong person, be sure such taxes are recharged in the "additional assessments" against the person from whom the taxes are due.

Vehicle License Excise Tax

The provisions of IC 6-6-5 impose an annual license excise tax upon any vehicle subject to annual registration as a condition of its operation on the public highways pursuant to the motor vehicle registration laws of the State of Indiana, except:

1. Vehicles owned or leased and operated by the governments of the United States, the State of Indiana and its political subdivisions.
2. Mobile homes and motor homes.
3. Vehicles assessed under the public utility tax law.
4. Trucks, the declared gross weight of which exceeds eleven thousand (11,000) pounds, trailers, semitrailers, tractors and buses.
5. Vehicles owned or leased and operated by an institution of higher education as defined in IC 6-3-3-5(d).
6. Vehicles owned, or leased and operated by a volunteer fire company.
7. Vehicles owned, or leased and operated by a volunteer emergency ambulance service.
8. Vehicles exempt from the payment of registration fees under IC 9-18-3-1.
9. Farm Wagons

The amount of tax due on each vehicle is based on the list price and age of the vehicle. IC 6-6-5-4 sets out seventeen (17) classifications of vehicles according to list price and IC 6-6-5-5 establishes the amount of tax due for each classification from the first year of manufacture through the tenth year and thereafter. The tax is computed and billed annually on the preregistration application forms by the State Bureau of Motor Vehicles, or computed by the local license branch offices, and is collected and accounted for by the branch offices of the bureau.

Monies collected by the local license branch offices are transmitted electronically to the county treasurer twice each week. Each county auditor and each county treasurer should receive a REGFUDET and REGFUTOT report from each auto license branch in the county for each day's business. The county treasurer should prepare a worksheet to reconcile the amounts shown on the REGFUTOT report to the electronic transfers of funds.

The following steps should be taken by the county auditor to record, balance, and distribute excise tax:

1. Compare reported totals from REGFUTOT to deposits in the county treasurer's excise tax account. For counties without wheel tax/surtax, this will be the county tax column. For counties with wheel tax/surtax, this will be the total of the county tax column, and the surtax column.
2. Review the REGFUDET report, which is the detail of the registrations by taxing unit. Look for registrations that have been reported on the wrong taxing unit. We would suggest just showing your adjustments at the bottom of the unit's page, subtracting from the totals the registration(s) that does not belong in that unit and adding to the totals the registration(s) that belong in that unit.
3. Post County Tax total, as adjusted in Step 2, from the REGFUDET report to County Form 24F, County Auditor's Record of Annual License Excise Tax. This should be posted in the Received From Branches column. There should be one page per taxing unit.
4. Post Lottery Amount Due total, as adjusted in Step 2, from the REGFUDET report to an accumulation worksheet. This can be on any developed application that you need to use for your county. The example used in this discussion was put on the spreadsheet in Lotus 123. It could also be done manually using columnar pads. This form is not a prescribed form nor does it need to be approved. This is just a tool to help accumulate the totals to apportion the lottery distribution.
5. Post County Tax total from the REGFUTOT report to County Form 24F, Control page. This form will show the county as a whole. At all times the total of all the taxing units County Form 24F should agree with the total on the County Form 24F, Control. Other terms for this would be that the Form 24F's are the subsidiary ledgers and the Form 24F, Control is the control ledger. The subsidiary ledgers should always equal the control ledger.
6. The cumulative worksheet, the individual taxing units 24Fs and the 24Fs, Control, should be posted by report date from the Bureau of Motor Vehicles printout. This is not necessarily by the week or the month as was done in the past. Since two reports are supposed to be issued each week, these forms should be posted twice a week.
7. You will be receiving a lottery credit check from the Auditor of State each month. This will more than likely not be for the full amount of the lottery credit that is reported by the BMV. This is just a situation that we must deal with due to the way the laws are written and the computation the Auditor of State must make. Therefore, we need to keep another work-sheet apportioning the lottery credit check to the proper taxing units. Again, this example was done on a Lotus 123 spreadsheet but may be done by you in a way that fits your county situation. This form also is not prescribed nor does it need to be approved. Post the cumulative total from your accumulating worksheet to an apportionment worksheet using the report dates of the tax cut check. Multiply the gross lottery by the factor which will be given to you by the Auditor of State. This will compute the portion of the tax cut check that will go to that taxing unit. Subtract the tax cut distribution from the gross lottery which gives you the amount of undistributed lottery credit not included in the tax cut check. It will be important to keep track of this amount for later use. The total of the lottery distribution for all taxing units should equal the amount of the check. You will probably have to round the amount up or down to equal the check, so we recommend applying that to the largest taxing unit.
8. Post the apportioned lottery distribution by taxing units to the appropriate County Form 24F in the column Received From Lottery Proceeds.
9. Add and foot across the collections on the Form 24F which will be the amount of excise tax that you have available for distribution either through an advance draw or the semi-annual distributions.
10. Post the total tax cut check to the County Form 24F, Control and again when all the postings are made to this form and Form 24F, the total of the individual taxing units Form 24Fs equal the balance on the Form 24F, Control.

Prior to such determination, the county assessor of each county shall, from copies of registration forms, cause information pertaining to legal residence of persons owning taxable vehicles to be verified from his/her records, to the extent such verification can be so made. He/she shall further identify and verify from his/her records the several taxing districts within which such persons reside. [IC 6-6-5-10]

County Form No. 24F, County Auditor's Record of Annual License Excise Tax, has been designed to account for the amounts received, the amounts distributed at each semiannual tax settlement and the balance of license excise tax on hand.

At the time of each semiannual tax settlement the county treasurer shall report such tax collections, together with the auto rental excise tax and aircraft license excise tax collections discussed in this section, on County Form No. 49TC, County Treasurer's Certificate of Tax Collections, and the total shown by the auditor's records shall be verified with the treasurer's certificate before distribution is made.

In accordance with the provisions of IC 6-3.5-4 and IC 6-3.5-5 the county council of each county may, by ordinance, impose a County Motor Vehicle Excise Surtax and a County Wheel Tax.

Collection Tax

Both the county motor vehicle excise surtax and the county wheel tax will be collected by the Bureau of Motor Vehicles and transmitted electronically to the county treasurer twice each week along with the auto license excise tax.

Upon receipt of the Bureau of Motor Vehicles, REGFUTOT Report, the county auditor shall issue a quietus to transfer the net amount of surtax and wheel tax from the county treasurer's collections of license excise tax to the "________ County Surtax Fund" and to the "________ County Wheel Tax Fund."

Allocation and Distribution of the Tax

Before the twentieth day of each month, the county auditor shall allocate the money deposited in both the County Surtax Fund and the County Wheel Tax Fund among the county and the cities and towns in the county.

The county auditor shall allocate the money to counties, cities and towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3) as follows:

1. In counties having a population of more than 50,000, 60% of the monies shall be distributed on the basis of population of the city or town as a percentage of the total population of the county and 40% distributed on the basis of the ratio of city and town street mileage to county road mileage.
2. In counties having a population of 50,000 or less, 20% of the monies shall be distributed on the basis of population of the city or town as a percentage of the total population of the county and 80% distributed on the basis of the ratio of city and town street mileage to county road mileage.
3. For the purposes of allocating funds as provided in this section, towns which become incorporated as a town between the effective dates of decennial censuses shall be eligible for allocations upon the effectiveness of a corrected population count for the town under IC 1-1-3.5.

To allocate and distribute monies received the following steps should be taken when preparing a worksheet similar to the worksheet on page 9-30:

1. Enter receipts from each license branch for the month in the proper column.
2. Deduct any refunds from the preceding month on excise surtax or wheel tax only in the proper column.
3. Enter the "Net Amount for Allocation" on Line A. Then enter the appropriate percentages of the net figure on Lines B and C. See Items I and II for the percentages to be used. Add Lines B and C. Total should equal Net Amount for Allocation shown on Line A.
4. Enter the name, the population and the road mileage for each incorporated city and town in the county and the population and road mileage of the county outside all incorporated areas in the appropriate spaces.
   (NOTE: The official population and road mileage figures for each unit may be obtained by writing to the Settlement Clerk, Auditor of State, Room 240 State House, Indianapolis, Indiana, 46204.)
5. Divide the population of each unit by the total population of the county to obtain the percentage of the total. (It is recommended that the decimal fraction (percentage) be carried out to at least six (6) places to insure fair and equitable distribution of the monies.)
6. Divide the road mileage of each unit by the total road mileage of the county to obtain the percentage of the total. This should be done in the same manner as the population percentages were figured in Item 5 above.
   (NOTE: Percentages of the total population and road mileage will only have to be refigured when there is a change in one or the other.)
7. Multiply percentage of total population for each unit times the applicable percentage of the net amount for allocation shown on Line B for both vehicle excise surtax and county wheel tax.
8. Multiply the percentage of total road mileage for each unit times the applicable percentage of the net amount for allocation shown on Line C for both vehicle excise surtax and county wheel tax.
9. Add the amounts of vehicle excise surtax computed on the basis of population and on the basis of road mileage to obtain the total vehicle excise surtax due each taxing unit. Repeat this same procedure for county wheel tax.
   (NOTE: Once the population and mileage factors are obtained they may be used each month until either the mileage or population changes. Therefore, you may wish to include the actual factors in a separate place on the worksheet for easy reference. New highway mileage certifications are done in April and take effect with the May state highway distributions.)

Miscellaneous Provisions

The distributions of surtax and wheel tax to the county should be receipted to the County Highway Fund and cities and towns should receipt the distributions to the Motor Vehicle Highway Fund (Street Fund), since a county, city or town may only use the surtax and wheel tax revenues it receives to construct, reconstruct, repair or maintain streets and roads under their jurisdiction.

Refunds

Refunds of overpaid or erroneously paid county motor vehicle excise surtax and county wheel tax should be paid from the County General Fund. Such refunds can be made without an appropriation having been made for that specific purpose. However, great care should be taken to insure that the amounts so refunded are recorded in the non-budgeted expenditures and are easily distinguishable so that they can be properly deducted from the surtax and wheel tax (see Step 2 of worksheet instructions) and returned to the County General Fund.

Aircraft License Excise Tax

Pursuant to IC 6-6-6.5 all taxable aircraft, except aircraft owned by a dealer and aircraft owned and operated by an air carrier certified under the Federal Air Regulations, shall be registered by the owner with the Aeronautics Commission and an annual excise tax shall be paid in lieu of the ad valorem property tax.

The aircraft license excise tax will be collected by the Indiana Department of Revenue and remitted to the counties quarterly. The distribution shall be made on or before the fifteenth of the month following each quarter and the first distribution each year shall be made in April. In remitting the tax the Department of Revenue will submit an "Aircraft Excise Tax Report" to each county treasurer and county auditor. The state warrant remitting the tax will be mailed to the county treasurer along with the report. The report will show the taxing district in which the aircraft is usually located.

Upon receipt of the warrant from the Auditor of State, the county treasurer shall issue an Excise Tax Receipt, County Form No. 18E, and shall post the receipt to the Treasurer's Daily Balance of Cash and Depositories, in the section "Other Sources" to an account titled "Aircraft Excise Tax Fund," to comply with the provisions of IC 6-6-6.5-21(c). The county treasurer shall also furnish a copy of the receipt to the county auditor.

The county auditor, upon receipt of the report, shall allocate the tax collected in the same manner as used to allocate vehicle license excise tax. The amount received shall be posted to the County Auditor's Record of Annual License Excise Tax, County Form No. 24F, and allocated on County Form No. 24-ET, in the same manner as vehicle license excise tax. In entering the collections on County Form No. 24-ET, one of the columns in that record shall be headed "Aircraft License Excise Tax" to record separately the amount received from that source. The vehicle license excise tax, auto rental excise tax and the aircraft license excise tax shall be combined into one total and apportioned and distributed as "License Excise Tax" in making settlement, and should be so reported by the county treasurer on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC.

Auto Rental Excise Tax

An excise tax, known as the auto rental excise tax, is imposed upon the rental of passenger motor vehicles and trucks in Indiana for periods of less than thirty (30) days. The tax is four percent (4%) of the gross retail income received by retail merchants for the rentals.

The auto rental excise tax will be collected by the Department of Revenue in the same manner that gross retail tax is collected. On or before May 20 and November 20 of each year, all amounts held by the state in the auto rental excise tax account shall be distributed to the county treasurers of Indiana.

The amount to be distributed to a county treasurer equals that part of the total auto rental excise taxes being distributed that were initially imposed and collected from within that treasurer's county. The Department of Revenue shall notify each county auditor of the amount of taxes to be distributed to the county treasurer. At the same time each distribution is made to a county treasurer, the Department of Revenue shall certify to the county auditor each taxing district within the county where auto rental excise taxes were collected and the amount of the county distribution that was collected with respect to each taxing district. [IC 6-6-9-11]

The county auditor, upon receipt of a copy of the certification report from the Department of Revenue, shall allocate the tax collected in the same manner as used to allocate vehicle license excise tax. The amount received shall be posted to the County Auditor's Record of Annual License Excise Tax, County Form No. 24F, and shall be allocated on County Auditor's Allocation of License Excise Tax, County Form No. 24ET. One of the columns in the latter record headed "Branch No." shall be changed to read "Auto Rental Excise Tax" to record separately the amount received from that source. The vehicle license excise tax, aircraft license excise tax, and auto rental excise tax shall be combined into one total and apportioned and distributed as "License Excise Tax" in making settlement.

The provisions of IC 6-6-11-1 impose an annual excise tax on boats. Boats are defined to include any device in which a person may be transported upon water. This includes every motorboat, sailboat, pontoon boat, rowboat, skiff, dinghy, or canoe, regardless of size.

A boat may not be operated, used, docked or stored in a county unless the boat excise tax, the Department of Natural Resources fee, and the lake and river enhancement fee for that boat have been paid for that boating year, and a valid boat excise tax decal is affixed to the boat.

The following boats are exempt from the boat excise tax:

1. Boats owned by the United States, the state, or one of its political subdivisions.
2. Boats owned by an organization exempt from federal income taxation under 501(C)(3) of the Internal Revenue Code.
3. A human powered vessel, as determined by the Department of Natural Resources.
4. Boats held by a boat manufacturers, distributor or dealer for sale in the ordinary course of business and subject to assessment under IC 6-1.1.
5. Boats used for the production of income and subject to assessment under IC 6-1.1.
6. Boats stored in Indiana for less than twenty-two consecutive days and not operated, used, or docked in Indiana.
7. Boats registered outside Indiana and operated, used, or docked in Indiana for a combined total of less than twenty-two consecutive days during the boating year.
8. Boats subject to the commercial vessel tonnage tax.

The amount of the tax due on each boat is based on the boat's class and age. IC 6-6-11-10 sets out fourteen classifications for boats based on the value of the boat when it was new and IC 6-6-11-11 provides for reductions based on the age of the boat. The tax is paid to the Bureau of Motor Vehicles and license branches may be used for the collection of the tax.

Before the eleventh day of the month following the month in which the collections are made, the Bureau of Motor Vehicles shall report the excise taxes collected to the county treasurer. The Bureau shall also forward a copy of the excise tax report to the county auditor.

Upon receipt of the report and copies of the registration certificates, the county auditor shall determine the total amount of boat excise taxes collected for each taxing district in the county. The amount so collected shall be apportioned and distributed among the respective funds of each taxing district in the manner and at the same time as property taxes are apportioned and distributed. Such determination shall be made from copies of boat registration forms furnished by the Bureau of Motor Vehicles.

Collections received should be recorded in a separate section of County Form Nos. 24F, County Auditor's Record of Annual License Excise Tax, and 24-ET, County Auditor's Allocation of License Excise Tax, in the same manner as vehicle license excise tax is recorded.

At the time of each semiannual tax settlement the county treasurer shall report such tax collections on County Form No. 49BC, Report of Boat Excise Tax Received, and the total shown by the auditor's records shall be verified with the treasurer's certificate before distribution is made.

If a boat owner sells his (her) boat they are entitled to a credit of the remainder of the tax in accor-dance with the formula outlined in IC 6-6-11-17. However, no refund can be made on a credit issued because of the sale of a boat.

Tax Refunds

Every owner of a boat that is destroyed in a year in which the owner paid the tax imposed by this chapter and is not replaced by a replacement boat for which a credit is issued under this chapter, is entitled to a refund in an amount equal to ten percent (10%) of the excise tax paid for each full calendar month remaining in the registrant's tax payment year after the date of destruction.

To receive a refund, a boat owner must present and return to the Bureau of Motor Vehicles the following:

1. A request for refund on a form furnished by the bureau.
2. A statement of proof of destruction on an affidavit furnished by the bureau.
3. The tax payment form for the boat.

A refund under this section may not exceed ninety percent (90%) of the tax paid on the destroyed boat. The amount shall be refunded by a warrant issued by the auditor of the county that received the excise tax revenue and shall be handled in the same manner as property tax refunds are handled.

The provisions IC 6-5.5-2 include the procedure for imposing and collecting taxes on banks and savings and loan associations. These financial institutions will pay a financial institutions' tax to the Indiana Department of Revenue. Taxes collected will be receipted to a financial institutions' tax fund by the Auditor of State.

IC 6-5.5-8-2 contains a formula for determining the amount of tax to be distributed to each taxing unit. This section provides for a guaranteed distribution and a supplemental distribution to each taxing unit.

On or before February 1, May 1, August 1 and December 1 of each year the Auditor of State shall transfer to each county auditor for distribution to the taxing units (as defined in IC 6-1.1-1-21) in the county, an amount equal to one-fourth (1/4) of the sum of the guaranteed amounts for all the taxing units of the county. On or before August 1 of each year the auditor of state shall transfer to each county auditor the supplemental distribution for the county for the year.

The county auditor shall distribute to each taxing unit the taxing unit's guaranteed and supplemental distributions at the same time that the county auditor makes the semiannual distribution of real property taxes to the taxing units.

Each year the taxpayers of each county shall receive a credit for property tax replacement. The credit shall be applied to each installment of taxes. The dollar amount of the credit for each taxpayer shall be determined by the county auditor, based on data furnished by the State Board of Tax Commissioners. The "tax liability" of a taxpayer for the purpose of computing the credit for a particular year shall be based upon the taxpayer's tax liability as is evidenced by the tax duplicate for the taxes payable in that year, plus the amount by which the tax payable by the taxpayer had been reduced due to the application of county adjusted gross income tax revenues to the extent the county adjusted gross income tax revenues were included in the determination of the total county tax levy for that year. [IC 6-1.1-21-5] This credit should in no way be confused with the property tax replacement credit derived from the local option tax discussed on pages 8-6 and 8-11 of this manual.

State distributions to counties from the property tax replacement fund are based on the amounts as shown on the March abstract. 16.70% of the amount is required to be distributed in each of the months of March, April, September and October and 16.60% in each of the months of July and November.

When received by the county treasurer, tax receipts shall be issued for each taxing district to which the credit is due, equal to the total received, and such receipts shall be accounted for in the Treasurer's Register of Taxes Collected and Daily Balance Records, in the same manner as other taxes.

At each semiannual settlement the amounts credited to each taxing district shall be reported by the treasurer on County Form No. 49TC, County Treasurer's Certificate of Tax Collections, and will be accounted for, apportioned and distributed, in the manner described in Section L.

The provisions of IC 5-13-6-3 require the county treasurer to make advance draws of taxes col-lected to the proper officers of any municipal corporation of the county not to exceed the lesser of 95% of the total collected at the time of the advance or 95% of the amount to be distributed at the semiannual distribution. The term "taxes collected" includes property tax, license excise tax, auto rental excise tax, and boat excise tax.

Upon receipt of a written request for an advance draw the following procedure should be followed:

1. The collections for each taxing district within the municipal corporation, as shown by the records of the county treasurer, should be multiplied by 95%.
2. Divide the answer under (1) by the total tax rate for the taxing district to obtain the factor to be used in apportioning the tax.
3. Multiply the factor by the tax rate for the fund for which the advance draw is requested, to arrive at the maximum amount which can be advanced.
4. Issue an application to pay and quietus in favor of the county treasurer for the amount to be advanced to the credit of the fund for which advanced and issue a warrant therefor in favor of the proper officer of the municipal corporation.

By the provisions of IC 6-1.1-27-1 and 6-1.1-27-2 the county auditor and the county treasurer, on or before June 20th and December 20th of each year, shall meet to make settlement of taxes and special assessments collected during the preceding six months periods ending May 10 and November 10, respectively, and at that time the treasurer shall also make settlement of any other collections required by law to be paid to the county treasurer. These sections are then followed by provisions in IC 6-1.1-27-3 that on or before June 30th and December 31st of each year the auditor shall send a copy of the certificate of settlement (Settlement Sheet) to the Auditor of State and pay to the Treasurer of State the money due the state as shown by the certificate of settlement.

To meet the deadlines fixed in the laws cited, there must be complete cooperation between the offices of the auditor and the treasurer. A delay in the delivery of the tax duplicate by the auditor to the treasurer and subsequent mailing of the statements by the treasurer will, of course, materially delay the collection process and closing of the treasurer's books. Conversely, delays will result by failure of the treasurer to expedite the collection process and to close and balance the books promptly at the close of each taxpaying period, so that the tax duplicate may be returned to the auditor for audit and settlement.

Some of the steps which can be taken by the auditor to expedite the process are:

1. Prepare the tax duplicate well in advance of receiving the final tax levies and rates, so the only steps required for completion will be to compute and enter the current taxes, bring forward delinquencies and total and balance the duplicate, for delivery to the treasurer.
2. In advance of receiving the duplicate and making settlement, prepare apportionment sheets and assemble all workpapers which will be needed.
3. In the December settlement, when the duplicate must be extended and balanced for the two settlement periods, extend the duplicate only to column 27 headed "Total Delinquency at November Settlement." The after settlement penalties and amounts to be carried to the new duplicate, columns 28 through 31, can be completed after the December settlement has been made.
4. Request the treasurer to turn over the duplicate after each taxing district is completed rather than after all districts are completed so that the work may begin in auditing and balancing the duplicate.

The various tax accounting systems in use will alter steps which might be taken in preparing and completing the duplicate but, as stated, careful planning and cooperation are most important and auditors and treasurers should be constantly alert to procedures which will expedite the collection and settlement process.

The procedures to be observed in accounting for and making settlement and distribution of collec-tions are covered in the sections that follow.

Treasurer's Certificate of Tax Collections

Pursuant to the provisions of IC 6-1.1-27-2 the county treasurer at each semiannual settlement is required to certify to the county auditor on the form prescribed by the State Board of Accounts the correct-ness of:

1. The credits for cash collected for each taxing unit (district) appearing on the tax duplicate; and
2. Any other amounts collected by the county treasurer as required by law.

The State Board of Accounts has prescribed County Form No. 49TC, County Treasurer's Certificate of Tax Collections, for use of county treasurers in complying with the provisions of this law. Complete instructions in the use of this form will be found on the form and in the illustrated entries in Exhibit 18, page 9-44.

June Settlement

After the county treasurer has completed posting collections in the duplicate and has reconciled the collections with the treasurer's register of taxes collected and the daily balance of cash and depositories record, which records reflect the collections by taxing district, the duplicate should be immediately submitted to the auditor. As previously stated, this should be done after the treasurer completes each taxing district.

In the event differences exist in the treasurer's records which the treasurer feels cannot be identified until all taxing districts are completed and the county treasurer's certificate of tax collections is completed and filed, this should not preclude a taxing district being turned over to the auditor for audit which might well assist in locating the differences. However, the apportionment and distribution of taxes should not be made until the treasurer is in agreement with the settlement figures.

Upon receipt of the duplicate, the collections shall be added by the auditor and the totals verified with the totals shown on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC. If differences exist, they should be discussed with the treasurer, any errors located and corrected, and the collections reconciled with the treasurer's records, before settlement and distribution is made.

If errors cannot be found and it will delay the June settlement beyond the June 30th deadline, and the differences involved are minimal, settlement can be made on the basis of the county treasurer's certificate of collections, since the differences will be taken into consideration and adjusted in the December settlement. However, every effort should be made to locate such differences before the June settlement and, if not located at that time, they must be located before the December settlement is made.

The amounts collected in the June settlement, for each taxing district, as shown on the county treasurer's certificate of tax collections and verified, will be entered in Section A of County Form No. 102, Apportionment of Taxes Collected, and distributed in Section B of that form. The totals for all taxing districts in the county will likewise be entered in Sections A and B of the June settlement sheet and Section C of the settlement sheet shall be completed showing amounts due the state.

A copy of the apportionment sheet is illustrated in Exhibit 19, page 9-43. Instructions in completing the settlement and making distribution of taxes collected, which are applicable to both settlements, are discussed in this Section under "December Settlement."

In the June settlement and before the duplicate is returned to the treasurer, it is the further duty of the auditor to enter the 10% penalty on May installment delinquencies and the 10% penalty on prior years taxes which are delinquent. Such penalties should also be added and their correctness proved before returning the duplicate to the treasurer.

December Settlement

Proof of Tax Duplicate - After the treasurer has completed posting the collections in the tax duplicate and has reconciled the collections with other records in that office, the duplicate must be submitted to the auditor. The instructions with respect to the duplicate being returned for audit in the "June Settlement" likewise apply to the December settlement.

Upon receipt of the duplicate, the auditor shall extend the unpaid taxes into columns 21 through 27, add all columns in which figures are entered, and prove the correctness of the charges, credits and taxes and penalties returned unpaid. The proof is obtained by adding columns 13, 14, 17 and 18 (charges), deducting therefrom columns 15, 16, 19 and 20 (credits) and the results should agree with column 27; also, the total of columns 22 through 26 should agree with column 27. The totals should be entered on each page of the duplicate, grand totals entered at the close of the duplicate for each taxing district, and separate totals entered for: (1) Regular Duplicate (as reported on December Abstract); (2) Additional Assessments; (3) Mobile Homes; and (4) Delinquent Tax Judgments Collected. The totals should then be summarized at the end of the tax duplicate for each taxing district, in the manner illustrated in Exhibit 17, pages 9-39 and 9-40, for proof of the "grand totals" and for use in arriving at the amounts to be entered on lines 1 through 34, Section A-1, of the Apportionment Sheet, Form No. 102. The collections, as shown in the summary, must also be verified with the county treasurer's certificate of tax collections before proceeding further.

In some counties it is the practice to compile the charges, credits and collections for all taxing districts in a manner similar to the foregoing, for use in preparing the December Settlement Sheet, through the use of tax duplicate sheets or the use of columnar sheets. However, by entering the summary in the duplicate for each taxing district the totals are preserved and the grand totals for the settlement sheet can be obtained by simply adding each line in each column of the apportionment sheets. Either method of obtaining the totals for the settlement sheet is acceptable.

Apportionment Sheets - After the tax duplicate extensions have been proved and collections verified, lines 1 through 34, Section A-1, of the apportionment sheet for each taxing district should be completed from the summary totals of the tax duplicate; the amount settled for in the June settlement, line 2, Section A, shall be entered on line 35, with the amount to be apportioned in the December settlement to be entered on line 36.

After completing lines 1 through 36, enter on line 38 any tax refunds made from the general fund of the county since the previous December settlement and chargeable to the taxing district. A worksheet should be prepared for use in arriving at the amounts to be charged to each district and it is required that County Form No. 17TC, Certificate of Tax Refund Claims, accompany the December settlement sheet filed with the Auditor of State for credits taken on line 38. Any other deductions before apportionment shall be entered on line 39, the total deductions entered on line 40, and line 41 will show the "Net Total Property Tax for Apportionment."

The total license excise taxes collected in such taxing district, after verification of the correctness of the taxes collected, shall be entered on line 42 and the total of all taxes to be apportioned shall be entered on line 46.

The local property tax and license excise tax, as shown in Section A-1, lines 41 and 43, shall be apportioned in Section B, in the following manner:

1. Divide the total amount to be apportioned by the total tax rate for the taxing district, to obtain a percentage factor. (Equal in dollars to the amount a $1.00 tax levy produces.)
2. Multiply the percentage factor by the tax rate for each fund to obtain the amount due each fund.
3. Total the amounts apportioned to each fund to see that such total equals the collection shown in Section A. Where fractions of cents results in a few cents difference, add or deduct such difference from the amount apportioned to the county general fund.

A copy of Form No. 102, Apportionment of Taxes Collected, is illustrated in Exhibit 19, page 9-43.

Settlement Sheet

The Settlement Sheet, State Form No. 105 (Sections A and B), is a compilation, or summary, of the apportionment sheets for all taxing districts. The line numbers and descriptions on each line are also identical to the Apportionment Sheets, County Form No. 102.

Many county auditors find it helpful to prepare a recapitulation of the apportionment sheets on a multi-column columnar sheet to obtain the totals to be entered on each line of the settlement sheet. How-ever, such totals may be obtained by simply adding the amounts on each line in each column of all apportionment sheets, if desired.

Section C of the settlement sheet is a statement to be completed showing amounts to be remitted to the Treasurer of State at each semiannual settlement. The State Fair Board tax and the State Forestry Fund tax must equal the total of the three (3) columns in Section B, lines 1 and 2, respectively. The amounts to be reported for the other accounts should be equal to the balance on hand in each such fund account, as shown by the auditor's and treasurer's ledgers. Enter on line 14 the total amount due the state for which a warrant will be issued to the Treasurer of State.

The settlement sheet shall also be accompanied by State Form No. 105A, Report of Settlement of State Property Tax Replacement and Homestead Credit, a copy of which is illustrated in Exhibit 20, page 9-44.

When the settlement sheet is completed you should carefully observe the "INSTRUCTIONS" in the lower right corner, listing the reports and number of copies of Report Form No. 105A which must accompany the settlement sheet filed with the auditor. Be sure to add and prove the settlement sheet and reports, retain one copy of each for your files, and furnish a copy of the settlement sheet to the county treasurer.

Settlement by Treasurer and Quietus - After approval of the settlement sheet by the Auditor of State, the amounts of taxes to be settled by the treasurer, less any advances made for which quietuses have been issued, shall be receipted into the fund ledger accounts of the auditor and treasurer by application to pay and quietus.

To provide a posting media for the ledger accounts of the auditor and treasurer and to further insure the correctness of the settlement figures and subsequent distribution of taxes collected, it is recommended that a worksheet be prepared in duplicate in the form illustrated in Exhibit 21, page 9-45.

Issue a single quietus for the total settlement and firmly attach the worksheet to the register of receipts (quietus) and furnish a copy thereof to the treasurer.

Distribution of Taxes - The amounts to be distributed to the State of Indiana and to the various county funds will be equal to the amounts shown on the settlement sheet, less any amounts which may have been advanced. In the case of other local governmental units, however, where two or more taxing districts are located within a governmental unit, it is suggested that worksheets be prepared for use in compiling the amounts to be distributed to each such governmental unit.

Such worksheets are usually referred to as "Unit Distribution Sheets." There are many ways of preparing the worksheets and any method used to arrive at the final result is acceptable. However, for the purpose of these instructions, the use of a standard columnar pad of sufficient columns is suggested. An illustration of a unit distribution sheet for a school corporation composed of a civil town and two townships is as follows:

Rockville Community School Corporation

After the unit distribution sheets are compiled, County Form No. 22, County Auditor's Certificate of Tax Distribution, shall be prepared for each local governmental unit to which a distribution is due and for which a warrant will be issued. The figures for each fund and from each source (property taxes; bank and building and loan taxes; and license excise taxes) will be obtained from the unit distribution sheets or, in the case of governmental units located in a single taxing district, the figures will be obtained from the apportionment sheet of such taxing district. County Form No. 22 may be completed for state funds, which are covered by the settlement sheet, and for county funds retained in the county treasury, at the discretion of the county auditor.

Each column of County Form No. 22, if applicable, shall be completed to show the taxes distributed, amounts advanced, the amount due the county for examination of records and the net distribution for which a warrant is to be issued. The amount chargeable to each local governmental unit for examination of records is obtainable from the voucher submitted by the State Board of Accounts and, except for the cost of examining county offices and departments, the amounts should be deducted from the distributions and reimbursed to the county at the next semiannual settlement. The manner in which examination of records should be handled is detailed in Exhibit 21, page 9-45.

After all certificates of distribution have been completed be sure to add the amounts entered thereon, the totals of which can be proved to the worksheet prepared in support of the quietus issued (See Exhibit 21, page 9-45) and warrants may then be issued to each such governmental unit.

Issuance and Posting of Warrants - Before warrants are issued, the county treasurer should be consulted as to the bank or banks on which each warrant should be drawn, in order that the treasurer may comply with the depository law. If two or more warrants must be issued, covering the distribution to a single governmental unit, this may be done. In such instances, both warrant numbers will appear on the certificate and be referred to in posting the funds ledger.

In posting warrants to the funds ledger, it will be necessary to refer to the distribution certificates, Form No. 22, to determine the amounts to be posted to each fund. The amounts to be posted to each fund, in the case of the state warrant, will be taken from the settlement sheet unless listed on the warrant or unless a Form No. 22 was completed for state funds.

At the time of making the semiannual settlement of taxes the treasurer shall also account for and settle the following collections which do not appear on the settlement sheet:

1. Excess (Surplus) Tax.
2. Demand Fees.
3. Tax Sale Costs.
4. Delinquent Dog Tax.
5. Conservancy District - Special Benefits Tax.
6. Conservancy District - Exceptional Benefits Assessments.
7. Drainage Assessments.
8. Delinquent Sewer Charges.
9. Delinquent Barrett Law Assessments.
10. Other Special Assessments Collected.

A separate quietus should be issued for each of the foregoing items and the further instructions herein should be observed.

Excess (Surplus) Tax

Excess (surplus) tax shall be reported by the treasurer on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC. The county treasurer is also required to file Ledger Form No. 65-STF, Surplus Tax Fund Ledger, listing in detail by taxing district each item of surplus tax collected, the total of which shall be receipted into the "Surplus Tax Fund." The detail ledger sheets shall be placed in the county auditor's ledger and be disbursed in the manner discussed on page 7-9.

If an excess payment is not claimed within the three (3) year period after November 10 of the year in which the payment was made and the county treasurer has given the written notice, the county auditor shall transfer the excess from the surplus tax fund to the general fund of the county. If the county treasurer has given written notice concerning the excess, the excess may not be refunded after the expiration of that three (3) year time period. [IC 6-1.1-26-6(c)]

Demand Fees and Tax Sale Costs

Demand fees and tax sale costs collected by the county treasurer will be reported on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC, and shall be receipted into the county general fund.

Delinquent Dog Tax

Collections of delinquent dog tax are reported by the county treasurer on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC, and the amount reported and settled by the treasurer should be verified by the auditor from the collections shown on the tax duplicate. The collections shall be receipted into a separate fund titled "Delinquent Dog Tax" and, upon receipt, a warrant shall be issued to the township trustee of each township for which the collections were made. This matter is further discussed on page 10-5.

Conservancy District

Conservancy district collections shall be reported and accounted for separately for "Special Bene-fits Tax" and "Exceptional Benefits Assessments."

Prior to settlement by the treasurer the county auditor should audit the conservancy district tax duplicate, in the same manner as the property tax duplicate, and should verify the correctness of the special benefits tax collections reported by the treasurer. The auditor should also verify collections entered in the "Exceptional Benefits Assessments Duplicate," if the district imposes assessments for exceptional benefits.

At the time of filing the abstract of property valuations and taxes with the Auditor of State the county auditor is required to complete Section 5A titled "Abstract of Conservancy District Tax Duplicate" listing for each district the special benefits tax levied on property within the district, and the collections, penalties added, and taxes and penalties returned unpaid should be reconciled with the abstract, in the same manner as the property tax duplicate.

The special benefits tax levied on property within a conservancy district and the exceptional benefits assessments which may be established by a district, and the accounting requirements related thereto, are discussed on pages 10-1 through 10-3.

Upon settlement of collections by the county treasurer a warrant should be issued to the treasurer of each conservancy district showing separately thereon the total amount collected from the special benefits tax and the total amount collected from the exceptional benefits assessments, so that such collections may be properly accounted for in the records of the conservancy district.

Drainage Assessments

The county treasurer is required to report drainage collections on County Form No. 49DC, County Treasurer's Certificate of Collections of Drainage Assessments, prescribed by the State Board of Accounts. The collections should be reported for each drain and shall show in the columns provided on the form the amount of "principal" collected and the amount of "interest and penalty" collected for each fund to which the collections are to be receipted.

The county auditor should audit and extend the Ditch Duplicate for Maintenance Assessments, County Form No. 63M, in the same manner as the property tax duplicate, to verify the correctness of col-lections on maintenance assessments and should also audit the Ditch Tax Duplicate, County Form No. 63, to verify collections.

The amounts settled by the treasurer shall be receipted into the respective funds shown on the treasurer's certificate of collections and shall be posted to the subsidiary ledger account of each affected drain, in accordance with the instructions set out in the "Accounting Manual for Public Drainage Funds" issued by the State Board of Accounts. Further instructions pertaining to the accounting requirements are set out in that manual.

Delinquent Sewer Charges

Collections of delinquent sewer charges should be reported on the County Treasurer's Certificate of Tax Collections, County Form No. 49TC, and such collections should be verified by the county auditor from an audit of the tax duplicate. The manner in which such charges and collections should be accounted for is set out on pages 10-4 and 10-5.

When collections are remitted to each city or town, it should be accompanied with a list showing the name, description of the real property and amount collected from each owner, in order that the proper officer of the city or town may credit the account of each such owner and release the lien recorded in the county recorder's office.

Delinquent Barrett Law Assessments

Collections of delinquent Barrett Law assessments should be reported and accounted for in the same manner as delinquent sewer charges, with the collections to be receipted into a "Delinquent Barrett Law Assessments" fund and remitted to the city or town for which collected. The assessments are further discussed on page 10-4.

Other Special Assessments

Any other special assessments, placed on the tax duplicate for collection, including line fence assessments, shall also be settled for by the county treasurer at each semiannual settlement. Line fence assessments are discussed on page 10-4 and weed cutting assessments and other special assessments on page 10-5.

Immediately after the December settlement has been made, or prior thereto if time will permit, the auditor shall enter in columns 28 and 29 of the tax duplicate, 10% penalty on the November installment of taxes returned delinquent and 10% penalty on prior years' taxes returned delinquent.

After the penalties have been entered in the duplicate the "Total Delinquent Tax" shall be entered in column 30 and the "Total Penalties and Interest" shall be entered in column 31. These two columns, as well as columns 28 and 29, should be added and the total of each column proved to the respective columns of tax, penalties and interest, as indicated on the duplicate. The correctness of the penalty computations should also be verified by multiplying the total November installment of tax returned delinquent (column 21) by 10% and the total prior years' delinquent tax unpaid (column 25) by 10%. While there will be a slight variation between the total of the penalties added and the computations for each column, this proof will help insure the correctness of the computations of the penalties.

Immediately after completing the tax duplicate the delinquencies shown in column 30 and 31 shall be carried forward to the new tax duplicate and be entered in columns 11 and 12, respectively. The abstract filed with the Auditor of State provides for reconciling delinquencies carried forward to the amounts returned delinquent in the December settlement and, therefore, care must be taken to insure there is no difference between the tax, penalties and interest reported in columns 30 and 31 and the amounts carried forward to the new duplicate in columns 11 and 12.

A person, or his/her heirs, personal representative, or successors, may file a claim for refund of all or a portion of a tax installment which he has paid. The claim must be filed with the auditor of the county in which the taxes were originally paid, within three (3) years after the taxes are first due, on County Form No. 17T, Claim for Refund of Taxes, prescribed by the State Board of Accounts.

The claim shall be based upon one of the following grounds: (1) taxes on the same property have been assessed and paid more than once for the same year; (2) the taxes, as a matter of law, were illegal; or (3) there was a mathematical error either in the computations of the assessment upon which the taxes were based or in the computation of the taxes. [IC 6-1.1-26-1]

If the claim is for refund of taxes paid on an assessment made or determined by the Department of Local Government Finance and the claim is based upon the grounds provided in items (2) and (3) of the above cited statute [IC 6-1.1-26-1], the county auditor shall forward the claim to the Department of Local Government Finance for approval or disapproval. [IC 6-1.1-26-2]

A refund claim which is not subject to review by the Department of Local Government Finance under IC 6-1.1-26-2 shall be either approved or disapproved by the county auditor, the county treasurer, and the county assessor. If the claim for refund is disapproved by either the county auditor, the county treasurer, or the county assessor, the claimant may appeal that decision to the Indiana Board. The claimant must initiate the appeal and the Indiana Board shall hear the appeal in the same manner as assessment appeals are initiated and heard. [IC 6-1.1-26-3]

The county auditor shall submit a refund claim to the board of county commissioners for final review after the appropriate county officials either approve or disapprove the claim. The county board of commissioners shall disallow a refund claim if one of the appropriate county officials does not approve the claim. The county board of commissioners may either allow or disallow a refund claim which is approved by the county auditor, the county treasurer and the county assessor. When the county board of commissioners disallows a claim, the claimant may appeal that decision to the Indiana Board. [IC 6-1.1-26-4]

When a claim for refund is allowed either by the county board of commissioners, the department of local government finance, the Indiana Board, or the Indiana tax court on appeal, the claimant is entitled to a refund. The amount of the refund shall equal the amount of the claim so allowed plus, with respect for claims filed after June 30, 2001, interest at four percent (4%) from the date on which the taxes were paid or payable, whichever is later, to the date of refund. The county auditor shall, without an appropriation being required, issue a warrant to the claimant payable from the county general fund for the amount due the claimant. In the June or December settlement and apportionment of taxes, or both the June and December settlement and apportionment of taxes, immediately following a refund the county auditor shall deduct the amount refunded from the gross tax collections of the taxing units (districts) for which the refunded taxes were originally paid and shall pay the amount so deducted into the general fund of the county. [IC 6-1.1-26-5] A refund of taxes resulting from invalid tax sales is discussed in Section Q, page 9-67.

The foregoing does not apply to excess (surplus) tax refunds discussed on page 9-47, which are refunded from the surplus tax fund.

All tax refunds (except surplus tax), whether made under the provisions of the laws cited in this section or as a result of invalid tax sales, shall be made without appropriation. The amounts disbursed from this account shall, at each December settlement, be scheduled by taxing district, the amount for each taxing district deducted on line 38 of the apportionment sheet for such district, and the total deducted on line 38 of the settlement. The manner of handling tax refunds in the December settlement is discussed in Section M of this section.

When a refund claim is for the full amount of taxes paid, the tax receipts, tax sale certificate or other documents supporting the payments should be surrendered by the claimant and be attached to the claim. If only a portion of the tax is refunded, this is not required; however, it is suggested a copy of the receipt be attached to the claim and when the refund is made, it is recommended the auditor enter on the taxpayer's copy a note of the date and amount claimed or refunded to preclude the possibility of a subsequent refund claim being filed for the same item.

On or before July 1 of each year, the county treasurer shall certify to the county auditor, a list of real property on which either any property taxes or special assessments certified to the county auditor for collection by the county treasurer from the prior years spring installment or before are delinquent as determined under IC 6-1.1-37-10 or any unpaid costs from a prior tax sale.

The county auditor shall maintain a list of all property eligible for sale. Unless the taxpayer pays to the county treasurer all the amounts listed in the preceding paragraph, the taxpayer shall remain on the list.

The list must:

1. described the real property by parcel number and common address, if any;
2. for a track or item or real property with a single owner, indicate the name of the owner; and
3. for a tract of item with multiple owners, indicate the name of at least one (1) of the owners.

Not later than fifteen (15) days after the date of the county treasurer's certification, the county auditor shall mail by certified mail a copy of the list to each mortgagee who requests from the county auditor by certified mail a copy of the list. [IC 6-1.1-24-1]

A tract or item of real property may not be removed from the list certified before the tax sale unless all delinquent taxes, special assessments, penalties due on the delinquency, interest, and costs directly attributable to the tax sale have been paid in full. A county treasurer may accept partial payments of delinquent property taxes, assessments, penalties, interest, or costs after the list of real property is certified. [IC 6-1.1-24-1.2]

The county auditor shall prepare a notice which shall contain:

1. A list of all tracts or real property eligible for sale.
2. A statement that the tracts or real property included in the list will be sold at public auction to the highest bidder, subject to the right of redemption.
3. A statement that the tracts or real property will not be sold for an amount which is less than the sum of:

1. The delinquent taxes and special assessments on each tract or item of real property.
2. The taxes and special assessments on each tract or item of real property that are due and payable in the year of the sale, whether or not they are delinquent.
3. All penalties which are due on the delinquencies.
4. An amount prescribed by the county auditor that equals the sum of:

1. Twenty-five dollars ($25.00) for postage and publication costs;
2. Any other actual costs incurred by the county that are directly attributable to the tax sale.

5. Any unpaid costs from a prior tax sale.

4. A statement that a person redeeming each tract or item of real property after the sale must pay:

1. one hundred ten percent (110%) of the amount of the minimum bid for which the tract or item of real property was offered at the time of sale if the tract or item of real property is redeemed not more than six (6) months after the date of the sale;
2. one hundred fifteen percent (115%) of the amount of the minimum bid for which the tract or item of real property was offered at the time of the sale if the tract or item of real property is redeemed more than six (6) months after the date of the sale;
3. the amount by which the purchase price exceeds the minimum bid on the tract or item of real property plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid; and
4. all taxes and special assessments on the tract or item of real property paid by the purchaser after the tax sale plus interest at the rate of ten percent (10%) per annum on the amount of taxes and special assessments paid by the purchaser on the redeemed property.

5. A statement, for information purposes, only, of the location of each tract or item of real property by key number, if any, and street address, if any, or a common description of the property other than a legal description.

The township assessor, upon written request from the county auditor, shal provide the information to be in such notice. A misstatement of the key number or street address does not invalidate an otherwise valid sale

6. A statement that the county does not warrant the accuracy of the street address or common description of the property.
7. A statement indicating: (A) the name of the owner of each tract or item of real property with a single owner; or (B)the name of at least one (1) of the owners of each tract or item of real property with multiple owners.

8. A statement that the county auditor and treasurer will apply on or after a date designated in the notice for a court judgment against the tracts or real property for an amount that is not less than the amount set under three (3), and for an order to sell the tracts or real property at public auction to the highest bidder, subject to the right of redemption; and indicating the date when the period of redemption will expire.

A statement that any defense to the application for judgment must be filed with the court before the date designated as the earliest date on which the application for judgment may be filed.

A statement that the court will set a date for hearing at least seven (7) days before the advertised date and that the court will determine any defenses to the application for judgment at the hearing.

9. A statement that the sale will be conducted at a place designated in the notice and the sale will continue until all tracts and real property have been offered for sale.
10. A statement that the sale will take place at the times and dates designated in the notice. The sale must take place on or after August 1 and before November 1 of each year.
11. A statement that a person redeeming each tract or item of real property after the sale must pay the costs described in IC 6-1.1-25-4.6.
12. If a county auditor and county treasurer have entered into an agreement under IC 6-1.1-25-4.7, a statement that the county auditor will perform the duties of the notification and title search under IC 6-1.1-25-4.6.
13. A statement that, if the tract or item or real property is sold for an amount more than the minimum bid and the property who is divested of ownership at the time the tax deed is issued may have a right to the tax sale surplus.

If within sixty (60) days before the date of the tax sale, the county incurs costs set under (3) and those costs are not paid, the county auditor shall enter the amount of costs that remain unpaid upon the tax duplicate of the property for which the costs were set. The county treasurer shall mail notice of unpaid costs entered upon a tax duplicate to the owner of the property identified in the tax duplicate.

The amount of unpaid costs entered upon a tax duplicate must be paid no later than the date upon which the next installment of real estate taxes for the property is due. Unpaid costs entered upon a tax duplicate are a lien against the property described in the tax duplicate, and amounts remaining unpaid on the date the next installment of real estate taxes is due may be collected in the same manner that delinquent property taxes are collected. [IC 6-1.1-24-2]

When real property is eligible for sale, the county auditor shall post a copy of the notice required by IC 6-1.1-24-2 and IC 6-1.1-24-2.2 at a public place of posting in the county courthouse or in another public county building at least twenty-one (21) days before the earliest date of application for judgment. In addition, the county auditor shall publish the notice required in IC 6-1.1-24-2 and IC 6-1.1-24-2.2 in the manner prescribed in IC 5-3-1-4 once each week for three (3) consecutive weeks before the earliest date on which the application for judgment may be made. The expenses of this publication shall be paid out of the county general fund without prior appropriation.

At least twenty-one (21) days before the application for judgment is made, the county auditor shall mail a copy of the notice required by IC 6-1.1-24-2 and IC 6-1.1-24-2.2 by certified mail, return receipt requested, to any mortgagee who annually requests a copy of the notice. However, the failure of the county auditor to mail this notice or its nondelivery does not affect the validity of the judgment and order.

The advertisement published under IC 6-1.1-24-4(b) is considered sufficient notice of the intended application for judgment and of the sale of real property under the order of the court. [IC 6-1.1-24-3]

Not less than twenty-one (21) days before the earliest date on which the application for judgment and order for sale of real property eligible for sale may be made, the county auditor shall send a notice of the sale by certified mail to the owner of record of real property with a single owner; or to at least one (1) of the owners of real property with multiple owners; at the last address of the owner for the property as indicated in the records of the county auditor. The county auditor shall prepare the notice in the form prescribed by the State Board of Accounts. The notice must set forth the key number, if any, of the real property and a street address, if any, or other common description of the property other than a legal description. The notice must include the statement set forth in IC 6-1.1-24-2(a)(4). The county auditor must present proof of this mailing to the court along with the application for judgment and order for sale. Failure by an owner to receive or accept the notice does not affect the validity of the judgment and order. The owner of real property shall notify the county auditor of the owner's correct address. The notice required under this section is considered sufficient if the notice is mailed to the address required by this section.

On or before the day of sale, the county auditor shall list, on the tax sale record required by IC 6-1.1-25-8, all properties that will be offered for sale. [IC 6-1.1-24-4]

The county auditor shall also provide those agencies under IC 36-7-17, in that county, with a list of real property on which one (1) or more installments of taxes is delinquent by June 15 of the year following the date the delinquency occurred. [IC 6-1.1-24-4.5]

On the day on which the application for judgment and order for sale is made, the county treasurer shall report to the county auditor all of the tracts and real property listed in the notice required by IC 6-1.1-24-2 upon which all delinquent taxes and special assessments, all penalties due on the delinquencies, any unpaid cost due from a prior tax sale, and the amount due under IC 6-1.1-24-2(a)(3)(D) have been paid up to that time. The county auditor, assisted by the county treasurer, shall compare and correct the list, removing tracts and real property for which all delinquencies have been paid, and shall make and subscribe an affidavit in substantially the following form:

Application for judgment and order for sale shall be made as one (1) cause of action to any court of competent jurisdiction jointly by the county treasurer and county auditor. The application shall include the affidavit and corrected list as provided in IC 6-1.1-24-4.6(a).

Any defense to the application for judgment and order of sale shall be filed with the court on or before the earliest date on which the application may be made as set forth in the notice. [IC 6-1.1-24-4.6]

No later than fifteen (15) days before the advertised date of the tax sale, the court shall examine the list of tracts and real property as provided under IC 6-1.1-24-4.6.

No later than three (3) days before the advertised date of the tax sale, the court shall enter judgment for those taxes, special assessments, penalties and costs that appear to be due. This judgment is considered as a judgment against each tract or item of real property for each kind of tax, special assessments, penalty, or cost included in it. The affidavit provided under IC 6-1.1-24-4.6 is prima facie evidence of delinquency for purposes of proceedings under this section. The court shall also direct the clerk to prepare and enter an order for the sale of those tracts and real property against which judgment is entered.

Not later than seven (7) days before the advertised date of the tax sale, the court shall conduct a hearing. At the hearing, the court shall hear any defense offered by any person interested in any of the tracts or items of real property to the entry of judgment against them, hear and determine the matter in a summary manner, without pleadings, and enter its judgment. The court shall enter a judgment not later than three (3) days before the advertised date of the tax sale. The objection must be in writing, and no person may offer any defense unless the writing specifying the objection is accompanied by an original or duplicate tax receipt or other supporting documentation. At least seven (7) days before the date set for the hearing, notice of the date, time, and place of the hearing shall be provided by the court to any person filing a defense to the application for judgment and order of sale.

If judgment is entered in favor of the respondent under these proceedings, or if judgment is not entered for any particular tract, part of a tract, or items of real property because of an unresolved objection made under IC 6-1.1-24-4.7(b), the court shall remove those tracts, parts of tracts, or items of real property from the list of tracts and real property provided under IC 6-1.1-24-4.6.

A judgment and order for sale shall contain the final listing of affected properties and shall substantially follow this form:

"Whereas, notice has been given of the intended application for a judgment against these tracts and real property, and no sufficient defense has been made or cause has been shown why judgment should not be entered against these tracts for taxes, and real property special assessments, penalties, and costs due and unpaid on them, therefore, it is considered by the court that judgment is hereby entered against the below listed tracts and real property in favor of the state of Indiana for the amount of taxes, special assessments, penalties, and costs due severally on them; and it is ordered by the court that the several tracts or items of real property be sold as the law directs. Payments for taxes, special assessments, penalties, and costs made after this judgment but before the sale shall reduce the judgment accordingly."

The order of the court constitutes the list of tracts and real property that shall be offered for sale under IC 6-1.1-24-5. The court that enters judgment shall retain exclusive continuing supervisory jurisdiction over all matters and claims relating to the tax sale.

No error or informality in the proceedings of any of the officers connected with the assessment, levying, or collection of the taxes that does not affect the substantial justice of the tax itself shall invalidate or in any manner affect the tax or the assessment, levying, or collection of the tax.

Any irregularity, informality, omission, or defective act of one (1) or more officers connected with the assessment or levying of the taxes may be, in the discretion of the court, corrected, supplied, and made to conform to law by the court, or by the officer (in the presence of the court). [IC 6-1.1-24-4.7]

In the conduct of the tax sale the following shall be observed:

1. The sale shall be held at the times and place stated in the notice of sale, and except as provided in IC 6-1.1-24-5.5, not extend beyond October 31 of the year of the sale.
2. A tract or item of real property may not be sold for the purpose of collecting delinquent personal property taxes or for the purpose of collecting taxes or special assessments which are chargeable to other real property.
3. A tract or item of real property may not be sold under this chapter if all the delinquent taxes, penalties, and special assessments and tax sale costs incurred under IC 6-1.1-24-2(a)(3)(D) on the tract or item of real property are paid before the time of sale.
4. The county treasurer shall sell the tract or item of real property, subject to the right of redemption, to the highest bidder at public auction. However, a tract or item of real property may not be sold for an amount which is less than the sum of:

1. the delinquent taxes and special assessments on each tract or item of real property;
2. the taxes and special assessments on each tract or item of real property;
3. all penalities which are due on the delinquencies;
4. the amount prescribed by IC 6-1.1-24-2(1)(3)(D) reflecting the costs incurred by the county due to the sale;
5. any unpaid costs which are due under IC 6-1.1-24-2(b) from a prior tax sale; and
6. other reasonable expenses of collection, including title search expenses, uniform commercial code expenses, and reasonable attorney's fees incurred by the date of the sale.

For the purposes of the sale, it is not necessary for the county treasurer to first attempt to collect the real property taxes or special assessments out of the personal property of the owner of the tract or real property.

The county auditor shall serve as the clerk of the sale. [IC 6-1.1-24-5]

A person who owes delinquent tax, special assessments, penalties, interest, or costs directly attributable to a prior tax sale on a tract of real property or a person who is an agent of that person may not purchase a tract offered for sale. If a person purchases a tract that the person was not eligible to purchase, the sale of the property is void. The county treasurer shall apply the amount of the person's bid to the person's delinquent taxes and offer the real property for sale again. [IC 6-1.1-24-5.3]

The provisions of IC 6-1.1-24-10 make it the duty of the county treasurer to endorse upon or attach to the certificate of sale a written guarantee, signed by the treasurer, warranting that the taxes and special assessments upon the real property described in the certificate of sale are delinquent and were unpaid at the time of sale and that the real property is, therefore, eligible for sale. If the county treasurer, before the time of making the guarantee required by IC 6-1.1-24-10, received payment of the delinquent taxes or special assessments for which the real property was sold, the holder of the certificate is entitled to the amount due for an invalid sale under IC 6-1.1-25-10.

If a tract or an item of real property is offered for sale and an amount is not received that is at least equal to the minimum sale price required, then the tract or an item of real property may be offered for sale a second time consistent with the provisions of IC 6-1.1-24-1 through IC 6-1.1-24-5 or the following. Notwithstanding any other law, if a tract or an item of real property is offered for sale under IC 6-1.1-24-1 through IC 6-1.1-24-5 and an amount is not received that is at least equal to the minimum sale price required and the county treasurer and the county auditor jointly agree to an expedited tax sale then the tract or item of real property may be offered for sale a second time on a date that is on or after January 1 and before March 31 of the year immediately following the year in which the property was initially offered for sale and at least ninety (90) days after the date of the initial sale. All notice and judgment requirements set forth in this chapter and IC 6-1.1-25 are applicable to the second expedited tax sale. [IC 6-1.1-24-5.5]

When a tract is offered for sale for two (2) consecutive years and no bid is received in an amount equal to or in excess of the minimum sale price, the county acquires a lien in the amount of the minimum sale price. The lien attaches on the day after the last date on which the tract is offered for sale the second time. The county auditor shall issue a tax sale certificate to the county dated the day the county acquires the lien. Upon issuance of the certificate, the county has the same rights as a purchaser; however, no money shall be paid by the county. [IC 6-1.1-24-6] All sales to the county shall be entered in the tax sale record and also in the Register of Tax Sales to the County, County Form 9S.

After each tax sale conducted, the county auditor shall prepare and deliver to the county com-missioners a list of all properties that have been offered for sale in two (2) consecutive tax sales, that have not received a bid for at least the amount required, that are not subject to the provisions of IC 6-1.1-24-6.5, on which the county has acquired a lien, and for which the county is eligible to take title. The county commissioners shall by resolution, identify the property that the county commissioners desire to transfer to a nonprofit corporation for use for the public good; and set a date, time, and place for public hearing to consider the transfer of the property to a nonprofit corporation.

Notice of the list prepared and the date, time, and place for hearing on the proposed transfer of the property on the list shall be published in accordance with IC 5-3-1. The notice must include a description of the property by:

1. legal description; and
2. parcel number or street address, or both.

The notice must specify that the county commissioners will accept applications submitted by nonprofit corporations and hear any opposition to a proposed transfer.

After the hearing, the county commissioners shall by resolution make a final determination concerning:

1. the properties that are to be transferred to a nonprofit corporation:
2. the nonprofit corporation to which each property is to be transferred; and
3. the terms and conditions of the transfer.

To be eligible to receive property, a nonprofit corporation must file an application with the county commissioners. The application must state the property that the corporation desires to acquire, the use to be made of the property, and the time period anticipated for implementation of use. The application must be accompanied by documentation verifying the nonprofit status of the corporation and be signed by an officer of the corporation. If more than one (1) application for a single property is filed, the county com-missioners shall determine which application is to be accepted based on the benefit to be provided to the public and the neighborhood and the suitability of the stated use for the property and the surrounding area.

After the hearing and the final determination of properties to be transferred, whichever is applicable, the county commissioners, on behalf of the county, shall cause all delinquent taxes, special assessments, penalties, interest, and costs of sale to be removed from the tax duplicate and the county auditor to prepare a deed transferring the property to the nonprofit corporation. The deed shall provide for:

1. the use to be made of the property;
2. the time within which the use must be implemented and maintained;
3. any other term and conditions that are established by the county commissioners;and
4. the reversion of the property to the county if the grantee nonprofit coporation fails to comply with the terms and conditions.

If the grantee nonprofit coporation fails to comply with the terms and conditions of the transfer and title to the property reverts to the county, the property may be retained by the county or disposed of under any of the provisions of this chapter or IC 6-1.1-24 or both. [IC 6-1.1-24-6.7]

When real property is sold, the purchaser at the tax sale shall immediately pay the amount of the bid to the county treasurer. [A purchaser who fails to pay his/her bid shall pay a penalty of twenty-five percent (25%) of the amount of his/her bid (IC 6-1.1-24-8)]. The treasurer shall apply the payment in the following manner: First, to the taxes, special assessments, penalties, and sale cost described in IC 6-1.1-24-5(e); second, to other delinquent property taxes; and third, to a separate "tax sale surplus fund."

The owner of record of the real property at the time the tax deed is issued who is divested of ownership by the issuance of a tax deed; or tax sale purchaser or purchaser's assignee, upon redemption, may file a verified claim for money deposited in the tax sale surplus fund. If the claim is approved by the county auditor and the county treasurer, the county auditor shall issue a warrant to the claimant for the amount due.

Any amount deposited in the tax sale surplus fund and remaining unclaimed for a period of three (3) years shall be transferred to the county general fund. [IC 6-1.1-24-7]

Immediately after a tax sale purchaser pays his/her bid, as evidence by the receipt of the county treasurer, or immediately after the county acquires a lien, the county auditor shall deliver a certificate of sale to the purchaser or to the county. The certificate shall be signed by the auditor and registered in his/her office. The certificate shall contain:

1. a description of real property which corresponds to the description used on the notice of sale;
2. the name of:

1. the owner of record at the time of the sale of real property with a single owner; or
2. at least one (1) of the owners of real property with multiple owners;

3. the mailing address of the owner of the real property sold as indicated in the records of the county auditor;
4. the name of the purchaser
5. the date of sale;
6. the amount for which the real property was sold;
7. the amount of the minimum bid for which the tract or real property was offered at the time of sale;
8. the date when the period of redemption specified in IC 6-1.1-25-4 will expire;
9. the court cause number under which judgment was obtained; and
10. the street address, if any, or common description of the real property.

When a certificate of sale is issued, the purchaser acquires a lien against the real property for the entire amount that he paid. The lien of the purchaser is superior to all liens against the real property which exist at the time the certificate is issued.

A certificate of sale is assignable. However, an assignment is not valid unless it is endorsed on the certificate of sale, acknowledged before an officer authorized to take acknowledgments of deeds, and registered in the office of the county auditor. When a certificate of sale is assigned, the assignee acquires the same rights and obligations that the original purchaser acquired. [IC 6-1.1-24-9]

Whenever a tract is offered for sale and no bid is received for the minimum sales price, the county auditor shall prepare a certified statement of the actual costs incurred by the county. The county auditor shall place the amount specified in the certified statement on the tax duplicate of the tract offered but not sold at the sale. The amount shall be collected as real property taxes are collected and paid into the county general fund. [IC 6-1.1-24-13]

Duties of the county treasurer or county auditor, in regards to the selling of real property at tax sale, are the responsibility of the respective officer and may not be preformed under contract or by a person or entity, unless consented to in writing by the respective officers. [IC 6-1.1-24-14]

Redemption From Tax Sale

Any person may redeem the tract at any time before the expiration of the period of redemption, specified in IC 6-1.1-25-4 by paying to the county treasurer the amount required for redemption under IC 6-1.1-25-2. [IC 6-1.1-25-1]

The total amount of money required for the redemption of real property equals the sum of (a) through (d) reduced by any amounts held in the name of the taxpayer or purchaser in the tax sale surplus fund:

1. 1.   If redeemed in less than six months after the tax sale one hundred ten percent (110%) of the minimum bid for which the tract was offered at the time of sale as required by IC 6-1.1-24-5.
2.   If redeemed more than six months but less than one year after the tax sale one hundred fifteen percent (115%) of the minimum bid for which the tract was offered at the time of sale as required by IC 6-1.1-24-5.
2. In addition to the amount required in (a), the total amount required for redemption includes the amount by which the purchase price exceeds the minimum bid on the real property plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid.
3. In addition to the amount required in (a) and (b), the total amount required for redemption includes all taxes and special assessments upon the property paid by the purchaser after the sale, plus ten percent (10%) interest per annum on those taxes and special assessments.
4. In addition to the amounts required in (a), (b), and (c), the total amount required for redemption includes the following costs, if certified before redemption by the payor to the county auditor on a form prescribed by the State Board of Accounts, that were incurred and paid by the purchaser or the purchaser's assignee or the county before redemption:

1. The attorney's fees and costs of giving notice under IC 6-1.1-24-4.5.
2. The costs of a title search or examining and updating the abstract of title for the tract or item of real property. [IC 6-1.1-25-2]

A county auditor may petition a court issuing judgments and orders for sale in the county to establish a schedule of reasonable and customary attorney's fees and costs that apply to a purchaser or purchaser's assignee who submits a claim for reimbursement upon redemption.

When a court provides a schedule, the county auditor may not reimburse attorney's fees and costs in an amount higher than the attorney's fees and costs provided in the schedule, except as provided in IC 6-1.1-25-2.5(c).

A purchaser or purchaser's assignee may petition the court for a higher rate of reimbursement than the rate found on the schedule. The court shall grant the petition if the court finds that the claim is based on reasonable and customary attorney's fees and costs. [IC 6-1.1-25-2.5]

When real property is redeemed, a quietus shall be issued by the county auditor in favor of the person paying the money to the treasurer and the amount receipted into the "tax sale redemption" fund shall be held in trust for the purchaser. The county auditor shall issue a warrant to the purchaser or purchaser's assignee upon the surrendering of the certificate of sale, in an amount equal to the amount received by the treasurer for redemption. The county auditor shall endorse the certificate and preserve it as a public record. If a certificate of sale is lost and the county auditor is satisfied the certificate did exist, the county auditor may make payment to the purchaser or purchaser's assignee in the manner provided in IC 6-1.1-25-3. The name of the person who redeems the property, the date of redemption and the amount for which the property is redeemed shall also be entered in the Tax Sale Record (Form 137).

When the county acquires a lien and a tax sale certificate is issued to the county, pursuant to IC 6-1.1-24-6, the redemption should be handled in the same manner as property sold to other purchasers, by issuing a quietus for the amount required for redemption and by crediting the amount to the tax sale redemption fund. A warrant from that fund should then be issued to the "Treasurer of ______ County" for payment of the taxes, penalties, interest and costs for which a lien was acquired by the county, together with the statutory redemption penalty of ten percent (10%), fifteen percent (15%) or twenty-five percent (25%), depending upon the date of redemption. The amount of the penalty added on redemption should then be entered in the "additional assessments" section of the duplicate in the column provided for "delinquent tax" and payment thereof entered by the treasurer when the warrant is processed and a receipt (or receipts) issued for the taxes, penalties, interest and costs.

Any costs incurred by the county as described in IC 6-1.1-25.2(d) would also be required to be paid by the redeeming party.

The redemption should also be entered in the tax sale record and in the register of tax sales to the county.

If a certificate of sale is issued to a purchaser under IC 6-1.1-24-9 and the real property is not redeemed within:

1. one (1) year after the date of sale;
2. one hundred twenty (120) days after the county acquires a lien on the property under IC 6-1.1-24-6;
3. one hundred twenty (120) days from the date of sale to a purchasing agency qualified under IC 36-7-17;
4. one hundred twenty (120) days from the date of sale of real property on the list prepared under IC 6-1.1-24-1.5; or
5. one hundred twenty (120) days after the date of sale under IC 6-1.1-24-5.5(b);

as extended by compliance with the notice provisions in IC 6-1.1-25-4.5, the county auditor shall, upon receipt of the certificate and subject to the limitations contained in this chapter, execute and deliver a deed for the property to the purchaser. If a certificate of sale is issued to a county under IC 6-1.1-24-9 and the real property is not redeemed within one (1) year after the date of sale, the county auditor shall, upon receipt of the certificate and subject to the limitations contained in this chapter, issue a deed for the property to the county. The county auditor shall execute deeds in the name of the state under the county auditor's name and seal. If a certificate of sale is lost before the execution of a deed, the county auditor shall, subject to the limitations in this chapter, execute and deliver a deed if the court has made a finding that the certificate did exist.

When a deed for real property is executed, the county auditor shall cancel the certificate of sale and file the canceled certificate in his/her office. If real property that appears on the list prepared under IC 6-1.1-24-1.5 is offered for sale and an amount that is at least equal to the minimum sale price required under IC 6-1.1-24-5(e) is not received, the county auditor shall issue a deed to the real property in the manner provided in IC 6-1.1-24-6.5.

When a deed is issued to a county, the taxes and special assessments for which the real property was offered for sale, and all subsequent taxes, special assessments, interest, penalties, and cost of sale shall be removed from the tax duplicate in the same manner that taxes are removed by certificate of error.

A tax deed executed vests in the grantee an estate in fee simple absolute, free and clear of all liens and encumbrances created or suffered before or after the tax sale except those liens granted priority under federal law and the lien of the state or a political subdivision for taxes and special assessments which accrue subsequent to the sale and which are not removed. However, the estate is subject to all easements, covenants, declarations, and other deed restrictions and laws governing land use including all zoning restrictions and liens and encumbrances created or suffered b the purchaser at the tax sale. The deed is prima facie evidence of:

1. the regularity of the sale of the real property described in the deed;
2. the regularity of all proper proceedings; and
3. valid title in fee simple in the grantee of the deed

Notwithstanding IC 6-1.1-25-4(a), a county auditor is not required to execute a deed to the county if the county executive determines that the property involved contains hazardous waste or another environmental hazard for which the cost of abatement or alleviation will exceed the fair market value of the property. The county may enter the property to conduct environmental investigations.

If the county executive makes the determination under IC 6-1.1-25-4(e) as to any interest in an oil or gas lease or separate mineral rights, the county treasurer shall certify all delinquent taxes, interest, penalties, and costs assessed under IC 6-1.1-24 to the clerk following the procedures in IC 6-1.1-23-9. After the date of the county treasurer's certification, the certified amount is subject to collection as delinquent personal property taxes under IC 6-1.1-23. Notwithstanding IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6 the assessed value of such an interest shall be zero (0) until production commences.

Property Containing Hazardous Waste or other Environmental Hazards

If the county auditor does not issue a deed to the county for property for which a certificate of sale has been issued to the county under IC 6-1.1-24-9 because the county executive determines that the property contains hazardous waste or another environmental hazard for which the cost of abatement or alleviation will exceed the fair market value of the property, the property may be transferred.

A person who desires to obtain title to and eliminate the hazardous conditions of property containing hazardous waste or another environmental hazard for which a county holds a certificate of sale but to which a deed may not be issued to the county may file a petition with the county auditor seeking a waiver of the delinquent taxes, special assessment, interest, penalties, and costs assessed against the property and transfer of the title to the property to the petitioner. The petition must:

1. be on a form prescribed by the state board of accounts and approved by the state board of tax commissioners;
2. state the amount of taxes, special assessments, penalties, and costs assessed against the property for which a waiver is sought;
3. describe the conditions existing on the property that have prevented the sale or the transfer of title to the county;
4. describe the plan of the petitioner for elimination of the hazardous condition on the property under IC 13-25-5 and the intended use of the property; and
5. be accompanied by a fee established by the county auditor for completion of a title search and processing.

Upon receipt of a petition, the county auditor shall review the petition to determine whether the petition is complete. If the petition is not complete, the county auditor shall return the petition to the petitioner and describe the defects in the petition. The petitioner may correct the defects and file the completed petition with the county auditor. Upon receipt of a completed petition, the county auditor shall forward a copy of the petition to:

1. the assessor of the township in which the property is located;
2. the owner;
3. all persons who have, as of the date of the filing of the petition, a substantial interest of public record in the property;
4. the county property tax assessment board of appeals; and
5. the state board of tax commissioners.

Upon receipt of a petition, the county property tax assessment board of appeals shall, at the county board's earliest opportunity, conduct a public hearing on the petition. The county property tax assessment board shall, by mail, give notice of the date, time, and place fixed for the hearing to:

1. the petitioner;
2. the owner;
3. all persons who have, as of the date the petition was filed, a substantial interest of public record in the property; and
4. the assessor of the township in which the property is located.

In addition, notice of the public hearing on the petition shall be published one (1) time at least ten (10) days before the hearing in a newspaper of county wide circulation and posted at the principal office of the county property tax assessment board or at the building where the meeting is to be held.

After the hearing and completion of any additional investigation of the property or of the petitioner that is considered necessary by the county property tax assessment board, the county board shall give notice, by mail, to the parties of the county board's recommendation as to whether the petition should be granted. The county board shall forward to the state board of tax commissioners a copy of the county board's recommendation and a copy of the documents submitted to or collected by the county board at the public hearing or during the course of the county board's investigation of the petition.

Upon receipt by the state board of tax commissioners of a recommendation by the county property tax assessment board, the state board of tax commissioners shall review the petition and all other materials submitted by the county board and determine whether to grant the petition. Notice of the determination by the state board of tax commissioners and the right to seek an appeal of the determination shall be given by mail to:

1. the petitioner;
2. the owner;
3. all persons who have, as of the date the petition was filed, a substantial interest of public record in the property;
4. the assessor of the township in which the property is located; and
5. the county property tax assessment board.

Any person aggrieved by a determination of the state board of tax commissioners may file an appeal seeking additional review by the state board of tax commissioners and a public hearing. In order to obtain a review, the aggrieved person must file a petition for appeal with the county auditor in the county where the tract or item of real property is located not more than thirty (30) days after issuance of notice of the state board of tax commissioners' determination. The county auditor shall transmit the petition for appeal to the state board of tax commissioners not more than ten (10) days after the petition is filed. Upon receipt by the state board of tax commissioners of an appeal, the state board of tax com-missioners shall set a date, time, and place for a hearing. The state board of tax commissioners shall give notice, by mail, of the date, time, and place fixed for the hearing to:

1. the person filing the appeal
2. the petitioner;
3. the owner;
4. all persons who have, as of the date the petition was filed, a substantial interest of public record in the property;
5. the assessor of the township in which the property is located; and
6. the county property tax assessment board.

The state board of tax commissioners shall give the notices at least ten (10) days before the day fixed for the hearing.

After the hearing, the state board of tax commissioners shall give the parties notice by mail of the state board's final determination.

If the state board of tax commissioners decides to:

1. grant the petition submitted under subsection (b) after initial review of the petition under subsection (f) or after an appeal under subsection (h); and
2. waive the taxes, special assessments, interest, penalties, and cost assessed against the property;

The state board of tax commissioners shall issue to the county auditor an order directing the removal from the tax duplicate of the taxes, special assessments, interest, penalties, and costs for which the waiver is granted.

After: (1) at least thirty (30) days have passed since the issuance of a notice by the state board of tax commissioners to the county property tax assessment board granting a petition filed under subsection (b), if no appeal has been filed; or (2) not more than thirty (30) days after receipt by the county property tax assessment board of a notice of a final determination of the state board of tax commissioners granting a petition filed under subsection (b) after an appeal has been filed and heard under subsection (h); the county auditor shall file a verified petition and an application for an order on the petition in the court in which the judgment of sale was entered asking the court to direct the county auditor to issue a tax deed to the real property. The petition shall contain the certificate of sale issued to the county, a copy of the petition filed under subsection (b), and a copy of the notice of the final determination of the state board of tax commissioners directing the county auditor to remove the taxes, interest, penalties, and costs from the tax duplicate. Notice of the filing of the petition and application for an order on the petition shall be given, by mail, to the owner and any person with a substantial interest of public record in the property. A person owning or having an interest in the property may appear to object to the petition.

The court shall enter an order directing the county auditor to issue a tax deed to the petitioner if the court finds that the following conditions exist:

1. The time for redemption has expired.
2. The property has not been redeemed before the expiration of the period of redemption.
3. All taxes, special assessments, interest, penalties, and costs have been waived by the state board of tax commissioners or, to the extent not waived, paid by the petitioner.
4. All notices required by law have been given.
5. The petitioner has complied with all the provisions of law entitling the petitioner to a tax deed.

A tax deed issued is uncontestable except by appeal from the order of the court directing the county auditor to issue the tax deed. The appeal must be filed not later than sixty (60) days after the date of the court's order. [IC 6-1.1-25-4.1]

Issuance of Tax Title Deeds

A purchaser, purchaser's assignee, or a county is entitled to a tax deed to the property that was sold only if:

1. the redemption period specified in IC 6-1.1-25-4 has expired;
2. the property has not been redeemed within the period of redemption specified in IC 6-1.1-25-4; and
3. not later than nine (9) months after the date of the sale:

1. the purchaser or purchaser's assignee; or
2. in a county where the county auditor and county treasurer have an agreement under IC 6-1.1-25-4.7, the county auditor;

gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.

The purchaser or assignee or, in a county where the county auditor and county treasurer have an agreement under IC 6-1.1-25-4.7, the county auditor shall give the notice required by subsection (a) by sending a copy of the notice by certified mail to: (1) the owner of record at the time of sale at the last address of the owner for the property sold, as indicated in the records of the county auditor; and (2) any person with substantial property interest of public record at the address for the person included in the public record that indicates the interest. However, if the address of the person with a substantial property interest of public record is not indicated in the public record that created the interest and cannot be located by ordinary means by the purchaser or assignee, a county where the county auditor and county treasurer have an agreement under IC 6-1.1-25-4.7, the county auditor may give notice by publication in accordance with IC 5-3-1-4 once each week for three (3) consecutive weeks.

The notice that this section requires shall contain the following:

1. A statement that a petition for a tax deed will be filed on or after a specified date.
2. The date on or after which the petitioner intends to petition for a tax deed to be issued.
3. The description of the tract or real property shown on the certificate of sale.
4. The date the tract or real property was sold at a tax sale.
5. The name of the purchaser or purchaser's assignee.
6. A statement that any person may redeem the tract or real property.
7. The components of the amount required to redeem the tract or real property.
8. A statement that the purchaser or the purchaser's successors or assignees are entitled to reimbursement for additional taxes or special assessments on the tract or real property that were paid by the purchaser subsequent to the tax sale and before redemption, plus interest.
9. A statement that the tract or real property has not been redeemed.
10. A statement that the purchaser or the purchaser's assignee is entitled to receive a deed for the tract or real property if it is not redeemed before the expiration of the period of redemption specified in IC 6-1.1-25-4.
11. A statement that the purchaser or the purchaser's assignee is entitled to reimbursement for costs described in IC 6-1.1-25-2(e).
12. The date of expiration of the period of redemption.
13. A statement that if the property is not redeemed, the owner of record at the time the tax deed is issued may have a right to the tax sale surplus, if any.
14. The street address, if any, or a common description of the tract of property.
15. The key number or parcel number of the tract or real property.

The notice under this section must include not more than one (1) tract or item of real property listed and sold in one (1) description. However, when more than one (1) tract or item of real property is owned by one (1) person, all of the tracts or real property that are owned by that person may be included in one (1) notice. A single notice may be used to notify joint owners of record at the last address of the joint owners for the property sold, as indicated in the records of the county auditor. The notice is considered sufficient if the notice is mailed to the address required under IC 6-1.1-25-4.5(b). The notice under this section and the notice under IC 6-1.1-25-4.6 are not required for persons in possession not shown in the public records. [IC 6-1.1-25-4.5]

After the expiration of the redemption period specified in IC 6-1.1-25-4 but not later than six (6) months after the expiration of the period of redemption, the purchaser or the purchaser's assignee, or the county may; or, in a county where the county auditor and county treasurer have agreement under IC 6-1.1-25-4.7, the county auditor shall, upon the request of the purchaser or the purchaser's assignee; file a verified petition in the same court and under the same cause number in which the judgment of sale was entered asking the court to direct the county auditor to issue a tax deed if the real property is not redeemed from the sale. Notice of the filing of this petition shall be given to the same parties and in the same manner as provided in IC 6-1.1-24-4.5, except that only one (1) publication is required. The notice required is considered sufficient if the notice is sent to the address required by IC 6-1.1-24-4.5(b). Any person owning or having an interest in the tract or real property may file a written objection to the petition with the court not later than thirty (30) days after the date the petition was filed. If a written petition is timely filed, the court shall conduct a hearing on the objection.

Not later than sixty-one (61) days after the petition is filed, the court shall enter an order directing the county auditor (on the production of the certificate of sale and a copy of the order) to issue to the petitioner a tax deed if the court finds that the following conditions exist:

1. The time of redemption has expired.
2. The tract or real property has not been redeemed from the sale before the expiration of the period of redemption specified in IC 6-1.1-25-4.
3. All taxes and special assessments, penalties, and costs have been paid.
4. The notices required by law have been given.
5. The petitioner has complied with all the provisions of law entitling the petitioner to a deed.

The county auditor shall execute deeds issued in the name of the state under the county auditor's name. If a certificate of sale is lost before the execution of a deed, the county auditor shall issue a replacement certificate if the county auditor is satisfied that the original certificate existed.

Upon application by the grantee of a valid tax deed in the same court and under the same cause number in which the judgment of sale was entered, the court shall enter an order to place the grantee of a valid tax deed in possession of the real estate. The court may enter any orders and grant any relief that is necessary or desirable to place or maintain the grantee of a valid tax deed in possession of the real estate.

If the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure of the purchaser or purchaser's assignee to fulfill the requirements of IC 6-1.1-25-4.6, the court shall order the return of the purchase price minus a penalty of twenty-five percent (25%) of the amount of the purchase price. Penalties paid shall be deposited in the county general fund.

The sale shall be treated as an invalid sale in all cases in which the purchaser or the purchaser's assignee or in a county having a consolidated city, a county having a population of more than 200,000 but less than 400,000 or a county where the county auditor and county treasurer have an agreement under IC 6-1.1-25-4.7, the county auditor has made a bona fide attempt to comply with the statutory requirements for the issuance of the tax deed and the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure to comply with these requirements, the county auditor shall not execute the deed but shall refund the purchase money plus six percent (6%) interest per annum to the purchaser or purchaser's successors or assignees. The tract, if it is then eligible for sale under IC 6-1.1-24, shall be placed on the delinquent list as an initial offering.

The court shall not order the return of the purchase price if:

1. the purchaser has failed to provide notice or has provided insufficient notice as required by IC 6-1.1-25-4.5; and
2. the sale is otherwise valid.

A tax deed is incontestable except by appeal from the order of the court directing the county auditor to issue the tax deed filed not later than sixty (60) days after the date of the court's order. [IC 6-1.1-25-4.6]

A person may, upon appeal, defeat the title conveyed by a tax deed executed by IC 6-1.1-24-4 only if:

1. Tract or real property described in a deed was not subject to the taxes for which it was sold;
2. The delinquent taxes or special assessments for which the tract or real property was sold were paid before the sale;
3. The tract or real property was not assessed for the taxes and special assessments for which it was sold;
4. The tract or real property was redeemed before the expiration of the period of redemption (as specified in section 4 of this chapter);
5. The proper county officers issued a certificate within the time limited by law for paying taxes or for redeeming the tract or real property, which states either that no taxes were due at the time the sale was made or that the tract or real property was not subject to taxation;
6. The description of the tract or real property was so imperfect as to fail to describe it with reasonable certainty; or
7. The notices required by IC 6-1.1-24-2, IC 6-1.1-24-4, IC 6-1.1-24- 4.5 and IC 6-1.1-24-4.6 were not in substantial compliance with the manner prescribed in those sections. [IC 6-1.1-25-16]

A county auditor and county treasurer may enter into a mutual agreement for the county auditor to perform the following duties instead of the purchaser:

1. Notification and title search under IC 6-1.1-25-4.5
2. Notification and petition to the court for the tax deed under IC 6-1.1-25-4.6. [IC 6-1.1-26-4.7)

If the certificate was issued to the county and the property is not redeemed within one (1) year a deed shall be issued to the county. When a deed is issued to the county, the delinquent taxes and special assessments and all subsequent taxes, special assessments, interest, penalties, and cost of sale shall be removed from the tax duplicate in the same manner as taxes are removed by certificate of error. [IC 6-1.1-25-4]

However, if the board of county commissioners determines that the property involved contains hazardous waste or another environmental hazard which the cost of abatement or alleviation will exceed the fair market value of the property, a county auditor is not required to execute a deed to the county. [IC 6-1.1-25-4(e)]

If the purchaser, or the purchaser's successors or assigns, fails to file the petition within the period provided in IC 6-1.1-25-4.6, the purchaser's lien against the real property terminates at the end of that period. However, this does not apply if the county is the holder of a certificate of sale. [IC 6-1.1-25-7]

If the purchaser does not provide notice prior to the period provided in IC 6-1.1-25-4.5(a)(3), the purchaser's lien against the real property terminates at the end of that period. [IC 6-1.1-25-7]

When a deed is issued, the date of such deed and the name of the grantee in the deed shall be entered in the tax sale record.

Sale of Real Property Acquired by County

When a county acquires title to real property under IC 6-1.1-24 and IC 6-1.1-25, the county may dispose of the real property under IC 36-1-11 or IC 6-1.1-25-9(e). The proceeds of any sale under IC 36-1-11 shall be deposited as follows:

1. First, to the cost of the sale or offering of sale of the real property, including the cost of maintenance; preservation; administration of the property before sale or offering of sale of the real property; unpaid costs of sales or offering of sale of the real property; preparation of the property for sale; advertising; and appraisal.
2. Second, to any unrecovered cost of the sale or offering for sale of other real property in the same taxing district acquired by the county under IC 6-1.1-24 and IC 6-1.1-25, including the cost of maintenance; preservation; administration of the property before the sale or offering for sale of property; unpaid costs of the sale or offering for sale of the property; preparation of the property for sale; advertising; and appraisal.
3. Third, to the payment of the taxes on the real property that were removed from the tax duplicate under IC 6-1.1-25-4(c).
4. Fourth, any surplus remaining into the county general fund.

The county auditor shall file a report with the board of commissioners before January 31 of each year. The report must: (1) list the real property acquired under IC 6-1.1-24 and IC 6-1.1-25; and (2) indicate if any person resides or conducts a business on the property.

The county auditor shall mail a notice by certified mail before March 31 of each year to each person listed in the report. The notice must state that the county has acquired title to the tract the person occupies.

If the county determines under IC 36-1-11 that any real property so acquired should be retained by the county, the county shall not dispose of the real property. The county commissioners may repair, maintain, equip, alter and construct buildings upon the real property so retained in the same manner pre-scribed for other county buildings. [IC 6-1.1-25-9]

The county may transfer title to real property described in IC 6-1.1-25-9(a) to the redevelopment commission at no cost to the commission for sale or grant under IC 36-7-14-22.1 or IC 36-7-15.1-15.1. [IC 6-1.1-25-9)

Sale to Person Eligible to Redeem Tract Under IC 6-1.1-25-1 or Agent of the Person

A person who owes delinquent taxes, special assessments, penalties, interest, or costs directly attributable to a prior tax sale on a tract of real property listed under IC 6-1.1-24-1 or a person who is an agent of such person may not purchase, receive, or lease a tract that is offered in a sale, exchange, or lease.

If a person purchases, receives, or leases a tract that the person was not eligible to purchase, receive or lease, the sale, transfer or lease of the property is void and the county retains the interest in the tract it possessed before the sale, transfer, or lease of the tract. (IC 36-1-11-16)

The Register of Tax Sales to the County, County Form No. 9S, should be used to prepare the list required to be furnished the board of county commissioners.

Invalid Tax Sale - Refund of Purchase Money

If, before the court issues an order directing the county auditor to issue a tax deed to a tract or item of real property sold under IC 6-1.1-24, it is found by the county auditor and the county treasurer that the sale was invalid, the county auditor shall refund the purchase money and all taxes and special assessments on the property paid by the purchaser or the purchaser's assigns after the tax sale plus six percent (6%) interest per annum and, subject to any limitation under IC 6-1.1-25-2.5 any costs paid by the purchaser or the purchaser's assigns from the county treasury to the purchaser, or the purchaser's successors or assigns. The real property, if it is then eligible for sale, shall be placed on the delinquent list as an initial offering. A political subdivision shall reimburse the county for interest paid by the county if the validity of the sale resulted from the failure of the political subdivision to give adequate notice of a lien to property owners and the existence of the lien resulted in the sale of the property. [IC 6-1.1-25-10]

Subsequent to the issuance of the order directing the county auditor to issue a tax deed to real property sold, a county auditor shall refund the purchase money plus six percent (6%) interest per annum from the county treasury to the purchaser, or his/her successors or assigns, if it is found by the court that entered the order for the tax deed that: (1) The real property described in the deed was not subject to the taxes for which it was sold; (2) the delinquent taxes or special assessments for which the real property was sold were properly paid before the sale; or (3) the legal description of the real property in the tax deed is void for uncertainty. [IC 6-1.1-25-11]

The grantee of an invalid tax deed, including the county, to whom a refund is made under this section shall execute, acknowledge, and deliver to the owner a deed conveying whatever interest the purchaser may have acquired by the tax sale deed. If a county is required to execute a deed under this section, the deed shall be signed by the board of county commissioners and acknowledged by the clerk of the circuit court. [IC 6-1.1-25-11]

A refund may not be made under this section while a court action initiated under IC 6-1.1-25-14 or 6-1.1-25-16 is pending. [IC 6-1.1-25-11]

The Indiana Drainage Code, IC 36-9-27, governs the construction, reconstruction and maintenance of ditches and drains. The "Accounting Manual for Public Drainage Funds" prepared by the State Board of Accounts, a copy of which should be available in the county auditor's office, should be consulted on all questions pertaining to drainage funds.

The provisions of IC 36-9-23-33 require delinquent sewer rates, charges, penalties and service fees to be certified to the county auditor for collection. Provisions of this law are as follows:

1. The officer charged with the collection of sewer charges shall, as often as the officer determines is necessary in a calendar year, prepare a list of delinquent fees and penalties and record a copy of such list with the county recorder, who shall charge a fee for recording in accordance with the fee schedule established in IC 36-2-7-10. Except in Marion County, a service fee of five dollars ($5.00) shall be added to each delinquent fee that is recorded.
   
   Using the list recorded after September 1 of the preceding calendar year and before September 1 of the current calendar year, the officer shall, before December 15 of each year, certify to the county auditor a list of liens remaining unpaid for collection in the next May when property taxes are due.
   
   The officer shall release any recorded lien when the delinquent fees, penalties, service charges, and recording fees have been fully paid. The county recorder shall charge a fee for releasing the lien in accordance with IC 36-2-7-10.
2. On receipt of the list to be certified, the county auditor shall add a fifteen dollar ($15.00) certification fee for each lot or parcel of real property on which fees are delinquent. The fee is in addition to all other fees. The county auditor shall immediately enter on the tax duplicate all delinquent sewer charges.
3. The amount shall be due and payable not later than the due date of the next May installment of property taxes and the county treasurer shall then include any unpaid charges for the delinquent fee, penalty, service charge, recording fee, and certification fee to the owner or owners of each lot or parcel of property, at the time the next cycle's property tax installment is billed.
4. After the date of certification, in each year, the officer may not collect or accept delinquent fees, penalties, service charges, recording fees, or certification fees from property owners whose property has been certified to the county auditor.
5. If a delinquent fee, penalty, service charge, recording fee, and certification fee are not paid, they shall be collected by the county treasurer in the same way that delinquent property taxes are collected.
6. At the time of each semiannual tax settlement the county treasurer shall certify to the county auditor all fees, charges, and penalties that have been collected. The county auditor shall deduct the service charges ($5.00 each) and the certification fees ($15.00 each) and pay over to the municipal fiscal officer the remaining fees and penalties. The county treasurer shall deposit service charges and certification fees in the county general fund.

In order for the county treasurer to pay over the collections to the city or town under (6), the col-lections should be receipted into a separate fund titled "Delinquent Sewer Assessments" on the records of the county auditor and county treasurer and remitted by county warrant.

Whenever any Barrett Law principal and interest or any part thereof is not paid when due, the proper fiscal officer charged with the collection of the assessment for the city or town shall, before the first day of June of each year, certify to the county auditor a list of all delinquent assessments, together with a penalty of ten percent (10%) interest per annum (five percent (5%) for each six month period or fraction thereof). The list shall show the name or names of the present owner or owners of each parcel of real estate, the description of the property as shown by the records in the office of the county auditor, and the total amount of principal, interest and penalty due. [IC 36-9-37-20 to IC 36-9-37-23]

It shall be the duty of the county auditor upon receipt of such list to enter the same in a special duplicate and transmit the same to the county treasurer for collection. After the county treasurer receives the list, payments on the delinquent assessments shall be made only to the county treasurer and may not be accepted by the municipal fiscal officer. The real property on the list is subject to collection by the county treasurer in the same way that delinquent property taxes are collected and may be sold in the manner that property is sold for taxes. [IC 36-9-27-23 and IC 36-9-27-24]

Delinquent Barrett Law assessments should be entered in a separate section of the tax duplicate immediately following the taxing unit in which the real property is located.

Upon collection of delinquent Barrett Law assessments and settlement by the county treasurer the collections shall be receipted into a separate fund titled "Delinquent Barrett Law Assessments" on the records of the county auditor and county treasurer and remitted by county warrant to the city or town officer originally charged with such collection.

The provisions of IC 32-10-9-3 require a partition (line) fence to be built and maintained by the landowners whose lands are separated by such fence. This law further provides, under certain procedures, for the township trustee to construct or maintain the fence, if not constructed or maintained by one of the landowners.

Where a township trustee has had such fence built, rebuilt or repaired, the trustee shall make out a certified statement in triplicate of the actual cost incurred in the building, rebuilding or repairing of such fence, one (1) copy to be handed to or mailed to the landowner affected by the work, one (1) copy to be retained by the trustee as a record for the township, and the other to be filed in the auditor's office of the county wherein said fence is located and where the lands of the landowner affected by said work are located. At the same time, the trustee shall also file with the county auditor, a claim against the county for the amount shown in the statement so filed with the county auditor. The county auditor shall examine said claim and statement as other claims are examined, and shall present the same to the board of com-missioners at their next regular meeting and, unless there is an apparent error in such statement of claim, the board of commissioners shall make allowance and the county auditor shall issue a warrant therefor to the township trustee submitting the same, out of the county general fund, without any appropriation being made therefor by the county council. The amount so paid out of the county general fund shall be placed by said auditor on the tax duplicate against the lands of the landowner affected by said work, in a separate section titled "Line Fence," and shall be collected as taxes are collected, and when so collected, shall be paid into the county general fund. [IC 32-10-9-4]

Within ten (10) days after the completion of the assessing period, the township trustee shall assess against each person who failed to pay dog tax, the amount of fees so owing and the amount of such fees shall be placed upon the tax duplicate, in a separate section, by the county auditor and collected as other taxes are collected. [IC 15-5-9-2]

Collection of the assessments, if not paid, shall be enforced in the same manner as delinquent personal property taxes and certified to the clerk of the circuit court where they become a judgment, at the same time and in the same manner as delinquent personal property taxes.

Collections by the county treasurer shall be receipted into a separate fund titled "Delinquent Dog Tax" on the records of the auditor and treasurer at the time of making the June and December settlements. Upon receipt, the county auditor shall issue a warrant to the township trustee of each township for which the collections were made.

Common School Fund The common school fund consists of funds derived from a number of sources, enumerated in Article 8, Section 2 of the Constitution of Indiana, which under the constitution must remain a perpetual fund and the income therefrom used for the support of common schools. For the most part, current accretions to the fund are derived from fines and forfeitures and from unclaimed property and escheated estates.

In 1943 a law was enacted making the Treasurer of State the official custodian of this fund, as well as the permanent endowment fund, and made provision for a county to elect to surrender such funds to the state. [IC 21-1-3-1] Later, in 1953, IC 21-1-10-1 was enacted to require these funds to be surrendered and currently only a few counties have any common school or permanent endowment funds in trust.

Those counties having funds in trust are required to report to the Auditor of State and pay the interest thereon to the Treasurer of State, semiannually on May 1 and November 1. The interest so received by the Treasurer of State, together with interest earned on other common school funds held in trust, is then distributed by the state to local public school corporations.

Permanent Endowment Fund

The permanent endowment fund of Indiana University was established under the provisions of an 1883 Act, IC 21-7-3. As mentioned under the common school fund, the Treasurer of State is now the official custodian of the fund, with funds held in trust by any county required to be surrendered and paid to the state.

Those counties having permanent endowment funds in trust must report and pay the interest thereon at the same time and in the same manner as provided for the common school fund. The interest earned on the fund is distributed by the state to Indiana University.

Congressional School Fund

The congressional school fund was derived from the sale of the sixteenth section of land in each congressional township, or land equivalent thereto, granted or reserved to the inhabitants of each township by an Act of Congress, passed on April 19, 1816. The principal of the fund of each congressional township must be perpetually held in trust.

Semiannually, on the second Monday of July and the last Monday in January, the auditor of each county shall make distribution of the interest on the congressional fund to the treasurer of each school corporation. The interest is computed at the rate of 4% per annum on the amount held in trust for each congressional township and apportioned and distributed on the basis of the enumeration of children, pursuant to IC 21-1-1-54. The last enumeration of children was made in the year 1932 and the amounts held in trust by the respective townships have not changed since that time. Therefore, the basic apportionment and distribution formula has been affected in recent years only by the reorganization of school corporations.

Unsold Congressional Lands

The custody and care of all unsold lands belonging to the congressional township fund is vested in the township trustee of the township in which the same shall be situated. The trustee of any such township is required to file a report with the county auditor by the fourth Monday in March showing the income derived from the rental of such lands. [IC 21-1-1-15] The distribution of the income from unsold lands is governed by IC 21-2-1.

Interest on Funds Held in Trust

The county is liable for the payment of interest to the state on the common and permanent endowment funds and to the school corporations on the congressional school fund, on the amounts held in trust, whether or not the funds are loaned or invested. [IC 21-1-1-2]

Deficiencies in Funds

The county is liable for the preservation of the principal of funds held in trust and, except for cemetery trust funds deposited with the county on and after March 11, 1959, is liable for payment of interest thereon, whether or not the funds are loaned or invested. [IC 21-1-1-2; OAG No. 3-1960]

Any deficiency occurring in the principal or interest on any fund shall be made up from the county general fund.

Cemetery Trust Fund

This fund consists of money deposited with the county under the conditions enumerated in IC 23-14-29, to be held in trust under such terms as designated in writing.

The law cited above contains the following provisions with respect to the deposit of any such fund:

1. Deposit is permissive only and subject to acceptance by board of commissioners.
2. Permits acceptance only from or on behalf of any cemetery corporation, church, association or organization which is dissolved or is to be dissolved; does not permit individual deposits nor deposits from any active cemetery corporation, church, association or organization.
3. Authorizes return of deposit to any active cemetery organization, upon request of the proper officers of the cemetery or upon initiative of board of commissioners.

The income derived from the loan or investment of the fund shall be used for keeping in good condition the cemetery, lot or lots, monuments, mausoleums, vaults or other burial structures for which the fund was deposited.

Where money was deposited prior to March 11, 1959, the county is liable for payment of interest thereon at 4% per annum regardless of the amount earned and whether or not it is loaned or invested. Where deposited on and after March 11, 1959, the county is liable only for the interest earned thereon. (OAG No. 3-1960)

Distribution of the interest shall be made by the county auditor on the last Monday in January for the prior calendar year to the treasurer of the board of directors of any incorporated cemetery or, if the cemetery is abandoned or unincorporated, to the trustee of the township in which the cemetery is located. The treasurer or trustee shall take a receipt or voucher for any money paid out, stating the amount paid, the purpose for which expended and the fund from which paid and the receipts or vouchers shall be filed with the auditor on or before January 1 of each year to be presented to the board of commissioners for examination and approval at their January meeting. [IC 23-14-70-3]

Ledger Accounts

A separate ledger account shall be established and kept for the "principal" and for the "interest" of each fund, using Form 24B; however, where a number of cemetery funds are held in trust it is recommended that a "control" account over the principal and a similar control over the interest of all such funds be established, with detail accounts back of each control. This will facilitate preparation of the monthly financial statement by requiring only that the control accounts for the cemetery principal fund and the cemetery interest fund be listed. The control accounts, as well as the detail accounts, shall be kept on Form 24B.

Inventory and Reports

On April 30 of each year a complete inventory of loans shall be made, using Form No. 39 prescribed for that purpose. Although the form is designed for school funds it may also be used for cemetery funds by inserting the name of the cemetery in the heading or in the left margin of the form. After listing loans unpaid, any investments and the cash balance in the principal fund should be added thereto and the total verified with the principal held in trust.

At the May session of the board of commissioners in each year the auditor shall prepare a report to the board of the condition of the school funds as of April 30. After approval by the board copies shall be transmitted to the State Superintendent of Public Instruction and the Auditor of State. The report is prepared on Form No. 6 furnished by the State Superintendent. [IC 21-1-7-29 to 21-1-7-32]

On May 1 and November 1 of each year a report of school funds shall be filed with the Auditor of State on forms furnished by that office. The report also includes fines and forfeitures collected during the preceding six-months period. The report shall be accompanied with a warrant payable to the Treasurer of State for amounts due the state as shown by the report. [IC 21-1-3-5; 21-1-3-7; 21-1-10-1]

The statutes governing the loan of school funds, except as specifically noted, are also applicable to cemetery funds, since IC 23-14-70-1 provides that cemetery funds be loaned in like manner and at the same rate of interest as school funds.

County Borrowing

The county is authorized to borrow unloaned funds for a period not to exceed five years, pursuant to an ordinance of the county council specifying the amount to be borrowed and the time for which the loan is to be made. [IC 21-1-7-3 to 21-1-7-5]

The general law governing the creation of indebtedness by the county, as found in IC 6-1.1-20, must be complied with before the loan is made. This requires a published notice to be given of the intention to create the debt. A period of thirty days must elapse after publication of the notice, during which time taxpayers may remonstrate, before the board of commissioners can execute the written obligation of the county for the amount to be borrowed.

The loan shall be entered in the Register of School Fund Loans in the same manner as any other loan. The required contents of the written obligation executed by the board of commissioners are set out in IC 21-1-7-4. The written obligation shall be deposited with the auditor and preserved in the same manner as mortgages.

1. General Fund - records the financial transactions for the general operation of the governmental unit, and accounts for the transactions not properly accounted for in another fund.
2. Special Revenue Funds - are funds used to account for revenues from specific taxes or other dedicated revenue or to finance specific activities as required by law or administrative regulations.
3. Debt Service Funds - are funds that are established to account for the payment of long-term debt and interest thereon.
4. Capital Projects Funds - are created to account for moneys used for the acquisition of designated fixed assets.
5. Enterprise or Utility Funds - are established to account for the acquisition, operation, and maintenance of governmental services and facilities to the public where the customers are charged for such services.
6. Trust and Agency Funds - are composed of resources received and held by the governmental unit for others.
7. Internal Service Funds - are created to finance and account for services and commodities furnished by a certain department to other departments within the governmental unit.

When complete double entry systems are kept by the bookkeeping department of a utility or enterprise, it will not be necessary for the chief disbursing officer of the governmental unit to maintain similar accounts for the utility or enterprise. However, the chief disbursing officer of the governmental unit must maintain at a minimum a cash account for each fund of the utility or enterprise plus a fund balance account. This procedure will result in the cash balance(s) being equal to the fund balance(s). If this procedure is followed, the bookkeeping department of the utility or enterprise must maintain the records in accordance with generally accepted accounting principles.

It is however, acceptable for the chief disbursing officer to keep within his records a complete double entry system for a utility or enterprise, if desired.

For the present time all of the existing prescribed or approved records will be continued. For some counties additional records will be necessary to summarize financial transactions to develop monthly totals for posting to the general ledger. Counties using data processing equipment can probably develop this monthly summary information with little, if any, changes in the programs. New records, or program revisions, may be necessary to provide the following:

1. General Ledger - is to be established, posted monthly on the double entry basis with a self-balancing group of accounts for each fund. The general ledger will usually contain only control accounts if detail accounts are maintained in subsidiary ledgers.
2. Cash Receipts Journal - is to be kept for each fund and will provide a systematic means of accumulating cash receipt information to be posted to the general ledger. If detail receipt (revenue) accounts are maintained in the present accounting records from which the receipts for each month can be obtained for posting to the general ledger, the use of this form will not be required; however, counties may use this journal in lieu of the present ledger accounts, if desired.
3. Accounts (Claims) Payable Journal - is designed to accumulate expenditure and accounts payable information month to month for posting to the General Ledger and Appropriation Ledger or at year end if expenditures are recorded on a cash basis throughout the year.
4. Cash Disbursements Journal - provides a means for summarizing cash expenditures for posting to the general ledger. If the present ledger contains appropriation, encumbrance and expenditure accounts in the ledger currently prescribed by this board, which record will provide the information for summarizing cash expenditures for posting to the general ledger, and accounts payable are recorded only at year end, this journal will not be required.
5. Purchase Order Register - This form provides the monthly totals of encumbrances (purchase orders issued) and purchase orders liquidated for posting to the general ledger. If encumbrances and liquidations are recorded in the present prescribed ledgers, from which the monthly totals may be obtained for posting to the general ledger, the use of this register will not be required.
6. General Journal - This form is to be used to make entries into the general ledger that are not made from other journals, ledgers or registers.
7. Assets Ledger - This ledger is to provide a record of the capital assets of the governmental unit.

The accounting system provides for estimated property taxes to be received in the calendar year to be recorded in the entries of each county fund, such as the County General Fund, County Welfare Fund, County Health Fund, etc. The entry for each fund should be equal to the amount shown on line 12 or in counties adopting the local option tax to the amount on line 14 of the county budget, as finally fixed by the State Board of Tax Commissioners.

At the outset it has been determined by this board not to establish separate accounts in each fund for delinquent taxes, allowance for uncollectible taxes and other charges and credits, since budgets and tax levies are established on the basis of 100% of current taxes levied, giving consideration to collections as delinquencies, mobile home taxes, judgments, penalties, interest and other items. Experience has also shown this basis reflects the estimate of property taxes to be received during the calendar (budget) year. Later, when the system is fully developed, consideration will then be given to expanding the general ledger accounts; however, since the Abstracts and Settlement Sheets reflect all charges, credits and collections, those source documents can be used for reporting purposes, if the information is needed, without detail accounts being maintained in the general ledger.

The system also provides for local option tax-certified shares, bank and building and loan tax, license excise tax and payments in lieu of tax to be received in the calendar year, as shown in column "B" of the Estimate of Miscellaneous Revenue for each fund, to be included in the "Estimated Revenues." The entries will also include, as estimated revenues, the property tax replacement credit from local option tax, as shown on line 13 of the published budget, which will not appear in column B of the Estimate of Miscellaneous Revenue.

To account for property tax, local option tax (both certified shares and property tax replacement credit), financial institute tax, license excise tax and payments in lieu of tax, a separate fund should be established for each of these types of taxes. The following is a brief description of each fund:

Property Tax

There should be established in the county auditor's and county treasurer's funds ledgers a "Property Tax Distribution Fund" to which all property tax collections will be receipted and from which all distributions will be made, including distributions to county funds. In addition, there is to be a separate "Property Tax Distribution Fund" established as a trust and agency account in the general ledger of the county auditor to record the receipt and distribution of all tax collections.

The fund in the general ledger will contain the following accounts:

• Assets
  • Cash
• Liabilities
  • Distributable to Governmental Units

When settlement is made, or when an advance is made to a governmental unit, a quietus shall be issued and the amount distributable shall be receipted into the Property Tax Distribution Fund in the general ledger as a debit to "Cash" and a credit to "Distributable to Governmental Units." The warrant issued for the distribution will be posted as a credit to Cash and a debit to Distributable to Governmental Units. Thus, the accounts will merely represent a clearing account through which property taxes settled by the county treasurer, including advances, will be accounted for in the general ledger.

Other Taxes

As previously stated, a separate fund shall be established in the funds ledger of the county auditor and county treasurer and in the general ledger of the county auditor for each of the following taxes:

• License Excise Tax Distribution Fund
• Payments in Lieu of Tax Distribution Fund
• Local Option Tax - Certified Shares Distribution Fund
• Local Option Tax - Property Tax Replacement Credit Distribution Fund
• County Option Income Tax

The general ledger accounts for these taxes will be the same as the accounts in the Property Tax Distribution Fund, with the transactions to be posted in the same manner. The accounts shall likewise be classified as trust and agency accounts.

"Payments in Lieu of Property Tax" are made direct by quietus and, while distributed to govern-mental units and a separate fund established therefor, such payments are not a part of the semiannual settlement. Such receipts as demand fees, tax sale costs, surplus tax, delinquent sewage charges, Barrett Law assessments, drainage assessments and similar collections, which do not appear on the Settlement Sheet, likewise shall not be receipted into the distribution funds but shall be receipted directly to the fund or funds affected.

With all property tax and license excise tax being receipted into and distributed from the distribution funds, this will eliminate the former practice of establishing a separate fund for each type of property tax levy, such as State Forestry Tax, State Fair Board Tax, Corporation Tax, School Corporation Tax, Library Tax, etc. Instead, all tax will be accounted for in the five distribution funds and only those funds will appear in the general ledger, the funds ledgers and in the financial statements prepared by the auditor and treasurer at the close of each month.

The amount of local option tax-certified shares and local option tax-property tax replacement credit received from the Auditor of State are to be quietused directly to funds named. These amounts are not a part of the semiannual settlement but are to be distributed immediately upon receipt from the Auditor of State by the county auditor.

The following chart of accounts is prescribed for those counties establishing a double entry accounting system. The chart includes account numbers preceded by fund numbers since the fund must be identified.

The fund numbers, the revenue account numbers and the expenditure account numbers used in this system differ somewhat from those suggested on pages 5-3 through 5-9 of the manual. To distinguish the revenue accounts, each number is prefixed by the digit "3" and to distinguish expenditure accounts each number is prefixed by the digit "4", in order to distinguish the revenue and expenditure accounts from the fund and general ledger accounts used in the system. The following further illustrates the numbering system:

• 01 to 99 Funds
• 101 to 199 Asset and Other Debit Accounts
• 201 to 299 Liabilities and Other Credit Accounts
• 301 to 399 Revenue Accounts
• * 4100 to 4999 Expenditure Accounts
• * An exception will be the County Highway Fund, where the digit "4" will be prefixed to each of the four-digit expenditure account numbers assigned to the budget of the County Highway Department, making it a five-digit expenditure account number.

It follows that any source posting document should identify the fund and the accounts within that fund to which posting is made. For example: Property tax money received for the County General Fund will be coded 01-101-301. The first series "01" represents the General Fund, the second series "101" indicates the digit to the debit account cash, the third series "301" indicates the credit to the property tax revenue account. Another example would be a motor vehicle highway distribution check received for the County Highway Fund 02-101-317. The first series "02" represents the County Highway Fund, the second series "101" indicates the debit to the cash account, the third series "317" indicates the credit to the revenue account motor vehicle highway distribution.

The county should continue with all existing records and establish in addition a general ledger. The general ledger should include in each fund only one revenue control account and only one expenditure control account. The records currently being kept would provide the detailed information for the revenue and expenditure accounts of the general ledger.

The following list of revenue accounts may be included in the general ledger. If they are included in the general ledger, the Account No. 172 Revenues should not be used and the following revenue accounts will take its place. If the revenue accounts are kept in the existing ledgers, then Account No. 172 Revenues will serve as a control over the revenue ledgers.

The revenue accounts and numbers are substantially the same as listed on pages 5-7, 5-8, and 5-9. The revenue account numbers have been prefixed by the digit "3" to distinguish the account numbers used in the double entry system.

The system provides for expenditure accounts to be kept in the existing ledgers with Account No. 242, Expenditures, to be kept in the general ledger to serve as a control over the expenditure ledgers.

The chart of expenditure accounts and numbers will be the same as shown on pages 5-8 and 5-9 of this manual and as shown on the budget forms.

In the County General Fund, expenditures will be made for more than one department. In this case a department number shall be assigned and will be shown immediately following the fund number, as illustrated on pages 5-3 an 5-4 of this manual.

In order to show the interrelationship of the balance sheet accounts and the method of posting them, some typical journal entries are illustrated below for the General Fund. Entries would be similar for other budgetary funds.

The first group of entries are those that would be required to initially set up the double entry system.

The second group illustrates various transactions. These entries are presented in summary form for an entire period. Actual entries would be made from totals of postings to subsidiary ledgers or journals on a monthly basis.

The third group illustrates the method of closing the nominal or temporary accounts at the end of the year.

The following accounts have been selected from the chart of accounts to present the illustrated entries:

Asset and Budgetary Accounts That Carry Debit Balances

Liability, Budgetary, and Fund Balance Accounts That Carry Credit Balances

* Optional Accounts.

# These are control accounts for which detailed subsidiary accounts are provided in the budgetary accounting system previously prescribed.

NOTE: Rather than recording encumbrances and accounts payable throughout the year in the general ledger, the encumbered balance and the amount of accounts payable may be recorded at year end only. This would be done by the following entries:

If this procedure is followed cash disbursements throughout the year would be debited to expenditures. It is expected that most counties will use this method initially.

NOTE: It may be desirable for the governmental unit to set up a separate appropriation sheet in the appropriation ledger in the new year in the amount of the encumbrance carried forward from the prior year for each expenditure classification. By doing this all expenditures would be matched with an appropriation rather than the expenditures relating to prior year encumbrances being charged directly to Reserve for Encumbrances.

NOTE: Amounts shown in parenthesis ( ) denotes credit balance.

The transactions of the special revenue funds would be recorded quite similar to those illustrated for the General Fund.

Capital projects funds would generally have the following chart of accounts. These accounts are taken from the chart included in this section of the manual. Other accounts from the chart may be added as needed.

• 101 Cash
• 131 Due From Other Funds
• 151 Investments
• 171 Estimated Revenue
• 172 Revenues
• 201 Accounts Payable
• 206 Contracts Payable
• 241 Appropriations
• 242 Expenditures
• 243 Encumbrances
• 245 Reserve for Encumbrances
• 271 Fund Balance

Capital projects funds are used to account for the construction and acquisition of fixed assets. The revenues are generally from bond issues, grants received for construction, appropriations for construction, etc. The expenditures are for the acquisition and construction of fixed assets.

It should be kept in mind that payments for fixed assets are recorded as expenditures in the capital projects funds. The fixed assets, such as land, buildings, land improvements, etc., acquired are recorded in the general fixed asset group of accounts.

Accounting for trust and agency funds is generally a matter of properly recording the cash receipts and disbursements. An exception would be employee pension funds which must be on the accrual basis. Most trust and agency funds are not subject to budgetary control and will not require the recording of estimated revenue and appropriations.

With some exceptions the following accounts will accommodate the recording of trust and agency fund transactions:

• 101 Cash
• 151 Investments
• 172 Revenues
• 216 Accrued Wages Payable
• 225 Payroll Taxes Payable
• 226 Other Payroll Withholdings
• 242 Expenditures
• 271 Fund Balance

Although the general fixed assets group of accounts is not a fund in a strict sense, it is a group of accounts in which are recorded acquisition of all fixed assets. Listed below are the "General Fixed Assets Group of Accounts":

Assets

• 161 Land
• 162 Buildings
• 164 Improvements Other Than Buildings
• 166 Equipment

Fund Balance (Investment in General Fixed Assets)

• 280.1 Investment From General Fund
• 280.2 Investment From Cumulative Building Fund
• 280.3 Investment From Bond Issue
• 280.4 Investment From ______________________

The entries in these accounts are made in addition to the normal posting to the regular budgetary fund accounts. For example, the purchase of equipment costing $10,000 would be recorded in the General Fund as follows:

• 01-242 Expenditures $ 10,000.00
• 01-101 Accounts Payable* $ 10,000.00

*May be credited to cash if accounts payable are recognized at year end only.

The corresponding entry in the general fixed assets group of accounts is:

• 96-166 Equipment $ 10,000.00
• 96-280.1 Investment From General Fund $ 10,000.00