Pursuant to Indiana Code §5-1.4-3-5, the Bond Bank is required to complete an annual audit of its books and accounts. The Bond Bank submits the audit and a report of its activities for each fiscal year to the Mayor. The objective of the audit is to express an opinion of whether the Bond Bank’s financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States. The audit is conducted in accordance with auditing standards generally accepted in the United States established by the AICPA Auditing Standards Board and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. It includes tests of the Bond Bank’s accounting records and other procedures considered necessary to enable the auditors to express such an opinion. The audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. The audit also evaluates the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements. The goal is to obtain a reasonable, rather than absolute, assurance that the financial statements are free of material misstatement, whether that be from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the Bond Bank or to acts by management or employees acting on behalf of the Bond Bank.
The auditors also provide an impartial report on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements. Noncompliance could have a material effect on the financial statements as required by Government Auditing Standards. The purpose of the report is solely to describe the scope and result of testing of internal control over financial reporting and compliance, and does not provide an opinion on the effectiveness of internal controls or compliance. It is an integral part of an audit performed in accordance with Government Auditing Standards.
Links to recent Bond Bank Audits can be found below.