June 14 2017 Newsletter (888) 516 9594
State Board of Accounts Releases Guidance on MVH 50% Spending Requirement

On June 12, the Indiana State Board of Accounts (“SBOA”) released guidance on the provision in HEA 1002 that requires that at least 50% of the state distribution for Motor Vehicle Highway (“MVH”) be used for construction, reconstruction, and maintenance of highways. The SBOA provides a direct response to a question that most of us have been asking…can personnel expense be included as part of the 50% requirement?

According to the guidance “The SBOA will not take audit exception to the payment of personnel expense that can be tied directly to one of these defined expenditure types (construction, reconstruction, and maintenance of highways) through the use of a prescribed or approved form and adequate supporting documentation.” Documentation is required to support that at least 50% of the MVH distribution is used for the restricted purposes which will require a more detailed tracking of expenditures from the MVH Fund. The SBOA has developed prescribed forms to use to track and allocate expenditures. Samples of these forms were made available with the Memo from the State Examiner emailed to County Auditors, City Controllers, and Clerk-Treasurers on June 12, 2017.

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