GIFT OF 
 
ECONOMIC! 
 
 STATE OF INDIANA 
 
 Public Accounting Law 
 
 Officers 
 
 THE STATE BOARD OF ACCOUNTS 
 
 JAMES P. GOODRICH Governor 
 
 OTTO L. KLAUSS Auditor of State 
 
 GILBERT H. HENDREN State Examiner 
 
 GEORGE M. CRANE Secretary of the Board 
 
 DEPARTMENT OF INSPECTION AND SUPERVISION 
 OF PUBLIC OFFICES 
 
 GILBERT H. HENDREN State Examiner 
 
 LAWRENCE F. ORR Deputy Examiner 
 
 WALTER G. OWENS Deputy Examiner 
 
 GEORGE M. CRANE Clerk of Department 
 
 FT. WAYNE PRINTING CO. FT. WAYNE, 1ND. 
 
PUBLIC ACCOUNTING LAW 
 
 Public Accounts Officials Appointments by Gov- 
 ernor. 
 
 1. There is hereby created and established a depart- 
 ment of inspection and supervision of public offices. The 
 principal officer of said department shall be known as 
 state examiner, who shall be appointed by the governor, 
 within ten days from the time this amendment becomes 
 effective, and who shall hold office for a term of four years 
 from the date of such appointment. His successor shall 
 be appointed for a term of four years. The state examiner 
 shall receive an annual salary of four thousand dollars, 
 and shall be a skilled accountant. There shall also be 
 appointed by the governor two deputy examiners who 
 shall have like qualifications as the state examiner, and 
 who shall be of different political parties, and each deputy 
 examiner shall receive an annual salary of three thousand 
 dollars, and such deputy examiners shall be subordinate 
 to the state examiner. One of such deputy examiners 
 shall be appointed for two years and the other for four 
 years, and their successors shall be appointed for four 
 years. The state examiner and the deputy examiners 
 shall be subject to removal by the governor for incom- 
 petency or for misconduct of the office, after a hearing 
 upon due notice and upon stated charges in writing. An 
 appeal may be taken by the officer affected, from the ac- 
 tion of the governor in removing him, to the circuit or 
 superior courts of Marion county. The clerk of said 
 department shall be appointed by the state examiner, and 
 shall be responsible to the state examiner, and shall 
 receive an annual salary of two thousand dollars. Said 
 salaries provided by this section shall be paid monthly 
 out of any moneys of the state not otherwise appropriated. 
 The department of inspection and supervision of public 
 
 420644 
 
* with suitable quarters in the 
 state house. (Sec. 1, Act of 1909 as amended, Acts 1915, 
 p. 138.) 
 
 State Board of Accounts Powers Duties. 
 
 2. The governor, the auditor of state and state 
 examiner shall constitute the state board of accounts and 
 as such shall formulate, prescribe and install a system of 
 accounting and reporting in conformity with the pro- 
 visions of this act, which shall be uniform for every public 
 office and every public account of the same class, and 
 which shall exhibit true accounts and detailed statements 
 of funds collected, received and expended for or on ac- 
 count of the public for any and every purpose whatever, 
 and by all public officers, employes or other persons, 
 and which shall show the receipt, use and disposition of 
 all public property, and the income, if any, derived there- 
 from; and shall show all sources of public income and the 
 amounts due and received from each source, and shall 
 show all receipts, vouchers and other documents kept, or 
 that may be required to be kept, necessary to separate 
 to itself and prove the validity of every transaction; and 
 they shall formulate all statements and reports made or 
 required to be made for the internal administration of the 
 office to which they pertain, and all reports published or 
 that may be required to be made or published for filing 
 in the office 'of state examiner or for the information of 
 the people, regarding any and all details of the financial 
 administration of public affairs; and they shall from time 
 to time make and enforce such changes in the system and 
 foims of accounting and reporting as shall by them be 
 deemed wise or as may become necessary in order to con- 
 form to law. (Sec. 2, Acts 1909, p. 136; Sec. 7546b Burns' 
 R. S. 1914.) 
 
 Separate Accounts. 
 
 3. Separate accounts shall be kept for every ap- 
 propriation or fund made by or accruing to any munici- 
 
pality, showing date and manner of each payment made 
 out of the funds provided for [by] such appropriation, 
 the name, address and vocation of each person, firm, or- 
 ganization, corporation or association to whom paid, and 
 for what paid, such name, vocation and address to be 
 embodied in and verified in all claims by law required to 
 be filed for payment. Separate accounts shall be kept 
 for each department, undertaking, institution and public 
 service industry. Accounts of public service industries 
 shall show the true and entire cost of the ownership and 
 operation thereof, the amount collected annually by gen- 
 eral or special taxation for service rendered to the public 
 and the amount and character of the service rendered 
 therefor, and the amount collected annually from private 
 users, if any, for service rendered to them, and the amount 
 and character of the service rendered therefor. (Sec. 3, 
 Acts 1909. p, 136; Sec. 7546c Burns' R. S. 1914.) 
 
 State Examiner Reports to Contents. 
 
 4. The state examiner shall require from every 
 municipality and every public institution, financial re- 
 ports covering the full period of each fiscal year, said 
 reports to be made respectively by the county auditor, 
 township trustee, city clerk, town clerk and secretary of 
 the board of school trustees or commissioners for their 
 respective municipalities, and by the superintendents of 
 public institutions, in accordance with the forms and 
 methods herein provided for, which shall be uniform for 
 all accounts of the same class, which said reports shall be 
 prepared, verified and filed with the state examiner 
 within thirty days after the close of each fiscal year, which 
 shall be December 31st of each year in all cases in which 
 the fiscal year is not otherwise fixed by law. Such re- 
 ports shall contain an accurate statement, in summarized 
 form, of all collections made by or receipts received by 
 such municipalities and institutions from all sources, all 
 accounts due the public treasury but not collected and of 
 
all expenditures for every purpose and by what authority 
 authorized, and also: 
 
 (a) A statement of all costs of ownership and opera- 
 tion and of all income of every public service industry, 
 owned by any municipality. 
 
 (b) A statement of the entire public debt of each 
 municipality and such other and further or more specific 
 information in relation to the cost of any branch of the 
 municipal service or any improvement therein as may be 
 required by the state examiner. 
 
 (c) A statement of all revenues received from the 
 payments of liquor licenses and in addition thereto an 
 itemized statement of all amounts remaining unpaid 
 upon any liquor licenses theretofore granted or then in 
 force. 
 
 (d) A statement showing the amount of the common 
 school funds in the custody of each county, including an 
 itemized statement showing the investment of all such 
 funds, of delinquent school fund mortgages, and of lands 
 forfeited for non-payment of school fund mortgages. 
 (Sec. 4, Acts 1909, p. 136; Sec. 7546d Burns R. S. 1914.) 
 
 Examiner Comparative Statistics. 
 
 5. The substance of the reports required by the pro- 
 visions of this act shall be arranged by the state examiner 
 in such form as shall indicate the comparative receipts 
 of the various sources of revenue and the comparative 
 costs of the several branches of government in the speci- 
 fied municipalities and shall be published in an annual 
 statement of comparative statistics, which shall be issued 
 for each class of municipalities at the expense of the state 
 as a public document, and shall be submitted by the state 
 examiner annually to the governor and to the legislature 
 at each regular session. Copies thereof shall also be 
 furnished by him to each municipality named therein. 
 (Sec. 5, Acts 1909, p. 136; Sec. 7$46e Burns R. S. 1914-) 
 
Forms for Reports Blanks, Etc. 
 
 6. The governor, auditor of state and state examiner 
 shall formulate, prescribe and approve the forms for 
 reports herein required to be made, and the state exam- 
 iner shall annually furnish to the officers required to make 
 reports by the provisions of this act, at least ninety days 
 before the time such reports are required to be filed with 
 him, such printed blanks and forms on which shall be 
 indicated the information required, together with suit- 
 able printed instructions for filling out the same. In 
 formulating, prescribing and installing a uniform system 
 of accounting and reporting, the governor, auditor of 
 state and state examiner may employ necessary clerical 
 assistants and one or more expert assistants at a reason- 
 able compensation to be by them determined, and such 
 compensation shall be paid out of any moneys not other- 
 wise appropriated, upon vouchers certified as to correct- 
 ness by the state examiner, and complying in all respects 
 with the law relating to disbursements by the state 
 government. (Sec. 6, Acts 1909, p. 136; Sec. 7 5 46 f Burns 
 R. S. 1914). 
 
 Field Examiners - - Appointment - - Duty - - Com- 
 pensation. 
 
 7. The state examiner shall appoint assistants not 
 exceeding such number as in the judgment of the gover- 
 nor, the auditor and the state examiner may be required 
 to administer the provisions of an act entitled "An act 
 concerning public accounting and reporting and super- 
 vision thereof, and providing penalties for violation of 
 this act," approved March 4, 1909. Such assistants shall 
 be known as "field examiners" and shall at all times be 
 subject to the order and direction of the state examiner 
 and shall be charged with the duty of inspecting and 
 examining accounts of any officer, ex-officer, institution 
 or municipality. Such field examiners shall be paid the 
 sum of eight dollars per day for each day actually em- 
 
ployed, and one railroad fare each way between their 
 respective homes and the place of examination. A day 
 under the provision of this act shall mean a period of 
 eight hours of actual service rendered in the inspection 
 or examination of the accounts of any officer, ex-officer, in- 
 stitution or municipality and no allowance shall be made 
 for the time in traveling to and from the place of exam- 
 ination. No field examiner shall receive more than one 
 per diem for work performed in any one day, and no 
 other allowance shall be made to such field examiners 
 other than that provided herein. (Sec. 1, Acts 1911, p. 
 195; Sec. 7 5 46 x Burns R. S. 1914.} 
 
 Competitive Examinations. 
 
 8. Such field examiners shall be appointed from ap- 
 plicants who shall have successfully passed an open, com- 
 petitive examination for testing their fitness for appoint- 
 ment. Such examinations shall be made at stated periods 
 by the chief examiner and deputy examiners after due 
 announcement in the public press, and shall be practical 
 in their character, and as far as may be shall relate to 
 those matters which will fairly test the relative capacity 
 and fitness of the persons examined to discharge the duties 
 of the office, and all appointments of field examiners shall 
 be made solely upon the ground of fitness and without 
 regard to the political affiliation of the appointee, except- 
 ing that no more than one-half of the number of field 
 examiners employed at any one time shall belong to any 
 one political party. The state board of accounts is em- 
 powered to make and establish, and from time to time 
 alter and amend by-laws, rules and regulations for the 
 proper enforcement of the provisions of this section. 
 (Sec. 9, Acts 1909, p. 136; Sec. 7546k Burns R. S. 1914-} 
 
 State Examiners Duties Powers. 
 
 9. It shall be the duty of the state examiner, and he 
 is given full power to examine personally or through the 
 deputy examiners and field examiners, all accounts and 
 
all financial affairs of every public office and officer and 
 of every public institution, including all state offices and 
 state institutions, and shall make such examinations at 
 least one each year. On every such examination inquiry 
 shall be made as to the financial condition and resources 
 of each municipality or institution, whether the laws of 
 the state and the requirements of the department of 
 inspection and supervision of public offices have been 
 complied with, and into the methods and accuracy of 
 the accounts and reports of the office examined. Such 
 examinations shall be made without notice. The state 
 examiner, deputy examiners or any field examiner when 
 engaged in making any examination as provided in this 
 act, or when engaged in any official duty devolved upon 
 them as such, shall have the right to enter into any state, 
 county, city, or township or other public office or offices 
 in this state, or any public institution, and examine any 
 books, papers or documents contained therein or belong- 
 ing thereto for the purpose of making such examination, 
 and shall have access, in the presence of the custodian 
 thereof or his deputy, to the cash drawers and cash in 
 the custody of such officer, and they shall also have the 
 right, during business hours to examine the public ac- 
 counts in any depository which has public funds in its 
 custody pursuant to the laws of this state. The state 
 examiner, deputy examiner or any field examiner, when 
 engaged in making any examination of any office, officer, 
 board or institution, or any other examination authorized 
 by this act, may issue subpoenas for witnesses to appear 
 before him in person or to produce books and papers 
 before him for inspection and examination. They shall 
 have the authority to administer oaths and to examine 
 such witnesses under oath orally or by interrogatories 
 propounded touching the matters under investigation and 
 examination, and under authority of the state examiner, 
 such oral examination may be taken in shorthand and 
 transcribed, and the reasonable expense thereof shall be 
 paid by the municipality in the same manner as the com- 
 
8 
 
 pensation of the field examiner is paid. Such subpoenas 
 shall be served by any person authorized to serve civil 
 process from any court in this state. In case any witness 
 duly subpoenaed refuses to attend, or refuses to produce 
 documents, books and papers as required in such sub- 
 poena, or shall attend and refuse to make oath or affir- 
 mation, or being sworn or affirmed, shall refuse to testify 
 when called upon so to do, then such person shall be by 
 such examiner reported to the prosecuting attorney of 
 the county or judicial district where the offense is com- 
 mitted for proceedings by that officer under section 504 
 of an act entitled "An act concerning public offenses," 
 approved March 10, 1905, and such examiner may apply 
 to the circuit court having jurisdiction thereof for the 
 enforcement of attendance and answers to questions as 
 provided by law in the matter of taking depositions. 
 Wilful false swearing in such examination shall be perjury 
 and shall be punishable as such. A report of such ex- 
 amination shall be made, signed and verified in duplicate 
 by the officer making the examination, one copy to be 
 filed with the state examiner, one copy to be filed 
 with the officer or institution examined, and one copy to 
 be filed with the auditing department of the municipality 
 examined and reported upon. If any such examination 
 discloses malfeasance, misfeasance or nonfeasance in office 
 on the part of any officer or employe, an additional copy of 
 such report shall be so made, signed and verified, and it shall 
 be the duty of the state examiner to place 'such report with 
 the governor, and the governor shall transmit the same to the 
 attorney-general and the attorney-general shall institute and 
 prosecute such civil proceedings against such delinquent 
 officer, or upon his official bond or both, as will carry into 
 effect the findings resulting from such examination and 
 secure to the proper municipality the recovery of any funds 
 misappropriated. Any such report as is described in this 
 section or a copy thereof duly certified by the state ex- 
 aminer shall be taken and received in any and all the 
 courts of this state, as evidence of the facts in such 
 
reports stated and contained. It shall be unlawful for 
 any deputy examiner or field examiner to make any dis- 
 closure of the result of any examination of any public 
 account excepting as he shall make the same to the state 
 examiner, or as he shall be directed to give publicity to 
 any such matter by the state examiner, or by any court. 
 (Sec. 9, Acts 1909, p. 136 '; Sec. 7546i Burns R. S. 1914. 
 The portion of the above section in italics has been re- 
 pealed by subsequent acts.) 
 
 Failure to Report Penalty. 
 
 10. Any public officer who shall fail or neglect to 
 make, verify and file with the state examiner any such 
 report .as is required by this act, or who shall fail or 
 neglect to follow the directions of the state examiner in 
 keeping the accounts of his office, or who shall refuse the 
 state examiner, deputy examiner or field examiner access 
 to the books, accounts, papers, documents or cash drawer 
 or cash of his office, or who shall in any way interfere with 
 such examiners in the discharge of their official duties 
 shall be guilty of a misdemeanor and shall be fined not 
 less than one hundred dollars nor more than one thousand 
 dollars, and shall forfeit and be removed from his office 
 in the manner now or hereafter provided by law. (Sec. 
 10, Acts 1909, p. 136; Sec. 7 5 46 j Burns R. S. 1914.) 
 
 Fee Records Fee and Salary Book Open to Pub- 
 lic. 
 
 11. There shall be kept in the office of each public 
 officer, board, commission and institution in this state, a 
 record of fees collected for the public treasury, and in 
 addition a separate fee and salary book, both of which 
 shall at all times be subject to public inspection, the forms 
 for which, for each class of offices, shall be devised and 
 formulated by the governor, auditor and state examiner 
 provided in this act. It shall be the duty of all public 
 officers in this state, all boards, commissioners, commis- 
 
10 
 
 sions, superintendents of institutions, constables, justices 
 of the peace, town and city marshals and mayors, city 
 judges and mayors who act as city judges, and all other 
 persons who collect fees for their services or as otherwise 
 provided by law or in the course of their official duty, to 
 keep a complete record of all such fees collected from any 
 and every source whatever, and such officers and persons 
 shall keep a separate record of all such fees as are payable 
 into the public treasury, and a separate record showing 
 all fees and salaries received by any officer or person, and 
 it shall be the duty of all such officers who employ depu- 
 ties, assistants, clerks, stenographers or other employes 
 who receive a salary, fees from any source whatever, or 
 other compensation, paid with public funds, to enter in 
 such fee and salary book the names of all such officers and 
 persons, including himself, as receive any such compensa- 
 tion, and the amount thereof, from time to time, as the 
 same accrues, and to show upon each book the particulars 
 of each item and from whom and on what account the 
 same accrues and when the same was paid to the officer 
 or other person, and by whom paid. The intention and 
 purpose of this section is declared to be that such book 
 shall contain separately the items and totals of all sums 
 collected for the benefit of the public treasury and of all 
 sums received by the respective persons for all services 
 rendered and which accrues to them respectively on ac- 
 count of their exercising the duties of such position so 
 held by them respectively, and that this section shall be 
 construed to apply to all state officers, state institutions, 
 state commissioners or commission, and to all county, 
 city, town, township and school officer in this state. 
 Such records as are provided for in this section shall be 
 public records and shall always be accessible to the public. 
 (Sec. 11, Acts 1909, p. 136; Sec. 7546k Burns R. S. 1914.) 
 
 Fines or Forfeitures Record Book Reports Pen- 
 alty. 
 
 12. It shall also be the duty of any officer who col- 
 lects or receives fines or forfeitures belonging^to the State 
 
11 
 
 of Indiana, to keep in a separate book a record of all sums 
 received from such fines and forfeitures, the amount of 
 each and from whom and when received. It shall be the 
 duty of the clerk of every court possessing criminal juris- 
 diction, and of every justice of the peace, mayor or city 
 judge who assesses fines, to make report forthwith to the 
 auditor of state of any and all fines assessed in such courts 
 or by such justices of the peace, mayors or city judges for 
 violation of the criminal statutes of the State of Indiana, 
 and upon payment of any such fines forthwith to report 
 such payment to the auditor of state, and it shall be the 
 duty of such officers immediately upon the occurrence 
 thereof, to report to the auditor of state the forfeiture of 
 all bonds and recognizances in which the principals have 
 defaulted, and for the purpose of making such report a 
 forfeiture shall be deemed to have occurred whenever 
 and as soon as the principal in said bond or recognizance 
 shall have defaulted therein, and upon payment of any 
 such forfeiture the same shall be by such officer reported 
 forthwith to the auditor of state, and it shall be the duty 
 of the auditor of state to keep an account of all such fines 
 and forfeitures and payments thereof and to charge such 
 officers therewith as debtors to the common school fund 
 immediately upon the report of payment thereof. The 
 examination in this act provided for shall extend to the 
 offices of justice of the peace and all mayors and city 
 judges who collect and receive such fines and forfeitures. 
 The expense of such examinations shall be paid for by the 
 township in and for which such person is justice of the 
 peace, or by the city or town for which such person is 
 mayor or judge, as the case may be, and as provided in 
 section 14 of this act. Any public officer who shall violate 
 any of the provisions of sections 11 and 12 of this act or 
 fails to comply therewith shall be guilty of a misdemeanor, 
 and upon conviction thereof shall be fined not less than 
 one hundred dollars, nor more than five hundred dollars, 
 and shall forfeit and be removed from his office as now or 
 hereafter provided by law. (Sec. 12, Acts 1909, p. 136; 
 Sec, 7 5 461 Burns R. S. 1914.) 
 
12 
 
 Audit of Bills Warrants Quietus. 
 
 13. It shall be the duty of every officer having 
 authority to draw the warrant of the state or of any 
 municipality referred to in this act in disbursing its funds, 
 or who has authority to execute the receipt and quietus 
 of the state or of such municipality in settlement with 
 public officers or with debtors, before presenting the same 
 for allowance to the board or other authority required to 
 pass upon the same, to make an examination of all claims 
 as to their form, the authentication thereof as required by 
 law, whether they are based upon contract or statutory 
 authority, and as to their apparent correctness, and upon 
 presenting the same to file therewith his certificate in 
 writing as to such matters in respect to each and all of 
 such claims; and where the authority to pass upon and 
 allow such claim is lodged in such officer, he shall, before 
 drawing a warrant therefor, certify to the correctness 
 thereof over his official signature, and it shall be his duty 
 before issuing the receipt or quietus of the state or munici- 
 pality to any debtor or any officer making settlement 
 with the state or municipality to examine the report, 
 account ot settlement sheet upon which settlement is 
 made, and to require of such debtor or officer, or to other- 
 wise secure all such information, accounts, vouchers or 
 exhibits as shall be necessary to satisfy such officer is- 
 suing such receipt or quietus of the correctness of such re- 
 port, account or settlement sheet, and to certify thereon 
 that he has made such examination and is satisfied as to 
 its correctness, and no such warrant or quietus shall be 
 issued by any such officer until such certificate shall have 
 been executed and filed with such claim, report, account 
 or settlement sheet. (Sec. 13, Acts 1909, p. 136; Sec. 
 7546m Burns R. S. 191 4.) 
 
 Expense of Examinations How Paid. 
 
 14. The expense of examination and investigation of 
 public accounts, provided for herein, shall be paid by 
 
13 
 
 each municipality for the examination and investigation of 
 its accounts, including those of its public service indus- 
 tries, and when any field examiner shall file with the state 
 examiner his voucher in form prescribed by law relating 
 to state expenditures, the state examiner, if he approve 
 the same, is hereby authorized and empowered to certify 
 the expense of such examination and investigation to 
 the auditor of the county in which such municipality 
 is situate, who shall forthwith and without any appropria- 
 tion being made therefor, issue his warrant for the amount 
 stated in such certificate on the county treasurer, payable 
 to the person named in such certificate, out of the general 
 fund of the county, said fund, except as to expense for 
 examining and investigating the financial affairs of the 
 county and its offices and officers, to be reimbursed by the 
 county auditor out of the moneys due such municipality 
 at the next semi-annual settlement of the collection of 
 taxes, in case of school corporations the same to be de- 
 ducted from the special school fund. In the event the 
 county to whom such claim may be made shall not have 
 possession or collection of funds due or to be due to any 
 municipality the affairs of which are examined, then such 
 certificates shall be filed with, and such warrant shall be 
 drawn by the disbursing officer of such municipality 
 having authority to draw warrants upon its funds, and 
 said warrant shall be paid forthwith without any appro- 
 priation being made therefor. In case it shall be neces- 
 sary to employ such field examiners in the investigation of 
 state offices or state institutions then such certificate of 
 expense shall be made to the auditor of the State of In- 
 diana, who shall draw the warrant of the state to cover 
 the same, which warrant shall be paid out of funds not 
 otherwise appropriated. (Sec. H, Acts 1909, p. 136 ; Sec. 
 7546n Burns R. S. 1914.) 
 
 Traveling Expenses. 
 
 15. The necessary traveling expenses of the state 
 examiner and his deputies when engaged in the business 
 
14 
 
 of the state, shall, when approved by the governor and 
 duly itemized and accompanied with vouchers, as re- 
 quired by the law relating to state expenditures, be paid 
 out of moneys not otherwise appropriated. (Sec. 15, 
 Acts 1909, p. 136; Sec. 7456o Burns R. S. 1914.) 
 
 Bonds Required. 
 
 16. The officers provided for by this act shall each 
 give bond for the faithful performance of his duties, as fol- 
 lows: The state examiner in the sum of five thousand 
 dollars, to be approved by the governor; each deputy 
 examiner in the sum of three thousand dollars, to be ap- 
 proved by the governor; ard each field examiner in the 
 sum of one thousand dollars, to be approved by the state. 
 (Sec. 16, Acts 1.909. p. 136; Sec. 7546p Burns R. S. 1914.) 
 
 Definitions. 
 
 17. The term- "municipality" as used in this act, 
 shall be construed to extend to, include and mean any 
 county, township, city, town, school town, school town- 
 ship, or school city in this state. The term "public office," 
 as used in this act, shall be construed to extend to, include 
 and mean the office of any and every person who for or 
 on behalf of the state or any municipality or any public 
 service industry, holds, receives, disburses or keeps the 
 accounts of the receipts and disbursement of any public 
 funds. The term "public officer," as used in this act, 
 shall be construed to extend to, include and mean any 
 person who holds, receives, disburses or is required by 
 law to keep any account of public funds. The term 
 "public institution," as used in this act, shall be construed 
 to extend to, include and mean any institution or public 
 service industry maintained in whole or in part at public 
 expense or supported in whole or in part by appropriations 
 or public funds or by taxation. The term "public ser- 
 vice industries," as used in this act, shall be construed to 
 extend to, include and mean any and all public service 
 industries owned either directly by the municipality or 
 
15 
 
 to the support of which the municipality contributes from 
 public funds, or the capital stock of which the munici- 
 pality may be the owner of any part, or the bonds of 
 which may be owned or guaranteed by the municipality. 
 (Sec. 17, Acts 1909, p. 136; Sec. 75J i .6q Burns R. S. 1914.) 
 
 Bribe Offer or Acceptance Penalty. 
 
 18. If any person shall give or offer to any state 
 examiner, deputy examiner, field examiner, clerk or other 
 employe of the department of inspection and supervision 
 of public offices, any money, gift, emolument, compensa- 
 tion or thing of value in order to influence the action of 
 such examiner or other person in any matter pending in 
 said department or in the matter of the examination of 
 any public account, or for the purpose of preventing or 
 delaying the examination of any public account or for the 
 purpose of influencing the action of such examiner or 
 other person in framing, changing, withholding or de- 
 laying any report of any examination of any public ac- 
 count, he shall, upon conviction thereof, be fined in any 
 sum not more than five thousand dollars or shall be im- 
 prisoned in the state prison for not less than one year nor 
 more than fourteen years, or both, and any state examiner, 
 deputy examiner, field examiner, clerk or other employe of 
 the department of inspection and supervision of public 
 offices who shall receive or solicit any money, gift, emolu- 
 ment, compensation or thing of value for the purpose of 
 being influenced in any matter pending in said depart- 
 ment or in the matter of the examination of any public 
 account, or for the purpose of being influenced to prevent 
 or delay the examination of any public account or for 
 the purpose of being influenced to change, delay or with- 
 hold any report of the examination of any public account, 
 shall, upon conviction thereof, be fined in any sum not 
 more than five thousand dollars, or shall be imprisoned 
 in the state prison for not less than one year nor more than 
 fourteen years, or both. For the purpose of this section 
 the term "public account" shall be construed to extend 
 
16 
 
 to, include and mean any account, the examination of 
 which is provided for in this act. (Sec. 18, Acts 1909, p. 
 136; Sec. 7546r Burns R. S. 1914.) 
 
 Examinations Without Notice Penalty. 
 
 19. All examinations provided for in this act or 
 made under or pursuant to the provisions of this act shall 
 be made without notice to the officers whose accounts 
 are to be examined, and without notice to any clerk, 
 deputy, employe or other person employed in or connected 
 with the office or the business of such officer, and any 
 person who shall give or cause to be given directly or 
 indirectly any notice or knowledge of any proposed ex- 
 amination of any public account to the officer in charge 
 of such account or to any other person other than as such 
 notice or knowledge shall be communicated as between 
 the state examiner, deputy examiners and field examiners, 
 shall, upon conviction thereof, be fined in any sum not 
 exceeding five hundred dollars, or shall be imprisoned in 
 the county jail for not less than six months, or both. 
 (Sec. 19, Acts 1909, p. 136; Sec. 7546s Burns R. S. 1914.) 
 
 Books, Records and Forms. 
 
 20. No system for uniform bookkeeping or any 
 book, record or form which may hereafter be adopted shall 
 be copyrighted unless it shall be deemed expedient by the 
 governor that a copyright be procured in the name of 
 the state; and, if any such copyright be procured, the 
 acceptance by the state or by any municipality of any 
 bid for printed supplies of any sort shall operate as a 
 license from the state to the successful bidder to manufac- 
 ture any such copyrighted books, records or forms in- 
 cluded in such bid for public use without payment of 
 royalty. All public books, records and stationery used 
 in the offices for which examination is provided in this act, 
 shall be purchased by the state, municipality or institu- 
 tion after the manner now provided by law. (Sec. 20, 
 Acts 1909, p. 136; Sec. 7 5 46 1 Burns R. S. 1914.) 
 
17 
 
 When Act in Effect. 
 
 21. The uniform system of accounting and reporting 
 and inspection provided therefor shall be installed as 
 far as possible in all the offices referred to in this act, at 
 the beginning of the next fiscal year of the municipality 
 subsequent to the taking effect of this act. The exam- 
 ination provided for in this act under authority of the 
 state examiner shall not extend back more than one year 
 prior to the beginning of such fiscal year except on au- 
 thority of the governor. (Sec. 21, Acts 1909, p. 136; 
 Sec. 7546u, Burns R. S. 1914.) 
 
 Officers Duties as to Books, Etc. Penalty. 
 
 22. It is hereby made the duty of the various officers 
 of the state and its institutions and municipalities to 
 adopt and use the books, forms, records and systems of 
 accounting and reporting that shall be adopted by the 
 board of accounts, when directed so to do by said board, 
 and all forms, books, and records necessary thereto shall 
 be purchased by said officers and in the manner now pro- 
 vided by law. Any officer or person who shall refuse to 
 provide such books, forms, or records, or who shall fail 
 or refuse to use them, or who shall fail or refuse to keep 
 the accounts of his office as directed by said board as 
 provided herein, shall be guilty of a misdemeanor, and 
 upon conviction shall be fined not less than one hundred 
 ($100) dollars and removed from such office. (Sec. 22, 
 Acts 1909, p. 136; Sec. 7546v Burns R. S. 1914.) 
 
 Repeal. 
 
 23. All laws and parts of laws in conflict with this 
 act are hereby repealed to the extend of such conflict; 
 provided, that the provisions of this act shall not be con- 
 strued to relieve any officer of any duties now required 
 by law of him with relation to the auditing of public 
 accounts or the disbursement of public funds, but the pro- 
 visions of this act shall be construed to be supplemental 
 
18 
 
 to all existing provisions of law safe-guarding the care 
 and disbursement of public funds: and, Provided fur- 
 ther, That the provisions of this act shall not be construed 
 to limit or curtail the power of the governor of the state, 
 under existing laws, to make examination or investigation 
 of any public office or to require reports therefrom. 
 (Sec. 23^ Acts 1909, p. 136', Sec. 75^6w Burns E. S. 1914.) 
 
 Board of Accounts Examination Reports Pub- 
 licity. 
 
 24. From and after the taking effect of this act (May 
 31, 1917), whenever an examination shall have been made 
 under the authority of the state board of accounts of 
 the State of Indiana, of, by or under the authority of 
 the state examiner, deputy examiners, or field examiners, 
 now provided by law, a report of such examination shall 
 be made, signed and verified in quadruplicate by the 
 officers making such examination, and said quadrupli- 
 cate report shall immediately be filed with the state 
 examiner, and after inspection thereof the state examiner 
 shall immediately file one copy thereof with the officer 
 or institution examined, and one copy with the auditing 
 department of the state, or of the municipality examined 
 and reported upon and said report shall thereupon im- 
 mediately become a part of the public records of the office 
 of the state examiner, of the office or institution examined, 
 and of the auditing department of the state or of the 
 municipality examined and reported upon, and at all 
 times thereafter shall be open to public inspection: 
 Provided, however, That on special order executed in 
 writing by the governor of the State of Indiana, any 
 specified report or reports shall be retained in the custody 
 of the state examiner, and withheld from publicity for such 
 time as may to the state board of accounts appear neces- 
 sary. If any such examination discloses malfeasance, 
 misfeasance, or nonfeasance in office or of any officer, or 
 employe, a copy of such report so made, signed, and 
 verified shall be placed by the state examiner with the 
 
19 
 
 governor, and the governor shall transmit the same to the 
 attorney-general, and the attorney-general thereupon 
 shall diligently institute and prosecute such civil proceed- 
 ings against such delinquent officer, or upon his official 
 bond, or both, and against any other proper person, as 
 will carry into effect the findings resulting from such 
 examination, and secure to the state or to the proper 
 municipality the recovery of any funds misappropriated, 
 diverted or unaccounted for. 
 
 It shall be unlawful for any deputy examiner or field 
 examiner, before the same shall be made public as herein 
 provided, to make any disclosure of the result of any 
 examination of any public account excepting as he shall 
 make the same to the state examiner, or as he shall be 
 directed to give publicity to any such matter by the state 
 examiner or by any court. In case such report shall 
 show or disclose the commission of a crime or crimes by 
 any person, or persons, it shall be the duty of the state 
 examiner to cause the same to be transmitted and pre- 
 sented to the grand jury of the county in which said 
 crime or crimes were committed, at their first session 
 after the making of such report, and at such subsequent 
 sessions as may be required, and it shall be the duty of 
 the state examiner to furnish said grand jury any and all 
 evidence at his command necessary in the investigation 
 and prosecution thereof. (Sec. 1, Acts 1917, p. 347.) 
 
 Prosecutions Duty of Prosecutor Docket Fee. 
 
 25. Upon the written request of the attorney-general 
 the prosecuting attorney of the circuit having jurisdiction 
 of such action shall appear with the attorney-general in 
 any and all causes begun by the attorney-general for the 
 recovery of moneys or for whatever purposes growing 
 out of any such examination or report, and said prose- 
 cuting attorney shall obey and comply with all directions 
 and orders of the attorney-general relating to the prose- 
 cution of such suit or suits, and in each case where the 
 prosecuting attorney does so appear a docket fee of 
 
20 
 
 twenty-five ($25.00) dollars for his use and benefit shall 
 be taxed as costs in said cause 'and shall be recovered as a 
 part of the judgment rendered therein. (Sec. 2, Acts 
 1917, p. 347.) 
 
 Authority of Attorney-General Duty of Examiner 
 Per Diem. 
 
 26. The attorney-general by and with the consent 
 of the state examiner and the deputy examiners, shall 
 have power to compromise and adjust any action brought 
 by him as required in this act. In all cases where any 
 money comes into his hands he shall immediately pay 
 the same into the treasury of the state or of the munici- 
 pality to which it belongs, and shall cause the same to 
 be distributed among the proper funds. The attorney- 
 general may, in his discretion, and upon the order of the 
 governor shall, appeal any such causes to the appellate 
 and supreme courts, or both, as the case may be. 
 
 It shall be the duty of the state examiner and of the 
 field examiners making any such report to use reasonable 
 diligence in the making of investigations and in fur- 
 nishing and securing evidence in connection with the 
 prosecution of suits brought on such reports, when and 
 as requested by the attorney-general, and reasonable per 
 diem and expenses incurred therein shall be paid in the 
 amount and in the manner now provided by law in case 
 of examinations. (Sec. 3, Acts 1917, p. 347.) 
 
 State or Sub-division as Plaintiff. 
 
 27. Any action brought by the attorney-general as 
 provided in this act may be brought in the name, as 
 plaintiff, of the State of Indiana or such municipality, 
 or sub-division of the State of Indiana as it may appear 
 is entitled to recover moneys or to secure other relief 
 under such action. If the action is brought on an official 
 bond or official bonds, the cause may be brought in the 
 name of the State of Indiana on the relation of such 
 plaintiff. In an action against a township trustee, or 
 
21 
 
 ex-township trustee, or upon his official bond, both the 
 civil and school corporations may be named as plaintiff 
 or relator in the same action, and recovery may be had 
 for the aggregate amount due both corporations, but the 
 court or jury trying the case shall in the finding or verdict 
 state the amount due each corporation. In an action 
 where a board of commissioners is plaintiff or relator, the 
 plaintiff shall be entitled to recover against the delinquent 
 officer or ex-officer, or upon his official bond, or bonds, 
 all such amounts as would be recoverable under all the 
 laws of this state, including this act, in any or all actions 
 by or upon the relation of the board of commissioners, 
 or by or upon the relation of any county officer or other 
 person authorized to sue for whatever funds or for any 
 funds of which it is the custodian, and with which it is 
 chargeable, and in case any of the funds so recovered are 
 school funds, the court or jury trying the case shall find 
 and state the amount thereof. In any action brought 
 under this act the plaintiff shall be entitled to recover in 
 addition to the amount misappropriated, diverted, or 
 unaccounted for, all such penalties and interest as might 
 be recoverable under laws other than this act. The 
 term municipality as used in this act shall be construed to 
 extend to, include and mean any county, township, city, 
 town, school town, school township, or school city in this 
 state. (Sec. 4, Acts 1917, p. 347.) 
 
 Remedies Cumulative. 
 
 28. The remedies provided for in this act are cumu- 
 lative, and this act shall not be construed to abridge the 
 rights of other officers to sue on behalf of municipalities, 
 except to the extent that where the attorney-general 
 has brought an action under the authority of this act, no 
 other action shall be brought for the same matter while 
 such action brought by the attorney-general is pending, 
 and excepting as other statutes relating thereto are herein 
 expressly repealed. (Sec. 5, Acts 1917, p. 347.) 
 
22 
 
 Attorney-General Must Enter Appearance. 
 
 29. It shall be the duty of the attorney-general upon 
 the taking effect of this act to immediately enter his ap- 
 pearance for the plaintiff in all causes heretofore brought 
 by prosecuting attorneys in the State of Indiana, to en- 
 force causes of action disclosed by reports transmitted 
 by the state examiner to the governor, and by the gover- 
 nor to the attorney-general, and it shall be the duty of the 
 attorney-general to prosecute all of said suits to final 
 determination. Otherwise said suits shall be prosecuted 
 to final determination in all respects under the laws 
 existing at the time of the institution of such suits, and as if 
 this act had not been passed, and none of the provisions of 
 this act, or of any section thereof, shall otherwise affect 
 any suit now pending. (Sec. 6, Acts '1917, p. 347.) 
 
 Repeal. 
 
 30. All laws in conflict with this act are hereby re- 
 pealed, and sections 2, 3, 4, 5, 6, 8, 9, 10, 11 and 12 of an 
 act entitled "An act concerning the collection and re- 
 covery of public funds of the State of Indiana, and of 
 counties, townships, cities and towns therein, and other 
 matters properly connected therewith," approved March 
 3, 1911, and an act to amend section 7 of an act entitled 
 'An act concerning the collection and recovery of public 
 funds of the State of Indiana, and of counties, townships, 
 cities, and towns therein, and other matters properly 
 connected therewith, approved March 3, 1911, and 
 declaring an emergency," approved March 14, 1913, are 
 hereby expressly repealed. (Sec. 7, Acts 1917, p. 347.) 
 
Gaylord Bros, 
 
 Maker* 
 Syracuse. N. Y. 
 
 PAT. J AH. 2 1J 908 
 
 YD 0592! 
 
 420644 
 
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