September 25, 2020

Deloitte Informs Indiana Officials That When You Let $526 Million Go Missing That, Yeah, It Can Take Awhile to Find It

Maybe you're not aware of this, but the state of Indiana lost track of $320 million in corporate taxes. Yep! They know that "state workers did not properly enter changes in the state's tax collection system" but why it took them four years to discover the problem is anybody's guess. Oh, and they also owe various counties another $206 million. A bit of a pickle. 

But they're trying to fix things! They've called in some professionals – Deloitte, to be precise – to hatch a plan to track down the missing money. Only problem is that this isn't quite as simple as pulling all the cushions out of your couch:

Representatives of the international account firm Deloitte told members of the state budget committee Wednesday they are still developing a plan for what would be audited, saying it could take through the end of August to complete the task.

Step 1 – come up with a plan. Step 2 –  sell them on the plan: 

Bari Faudree and Kathi Schwerdtfeger told lawmakers Wednesday that they have been working with other Deloitte auditors over the last few weeks to determine what should be reviewed. Once the assessment is completed, Schwerdtfeger said Deloitte will deliver a "detailed audit plan." "This is not simply an audit issue, this is not simply an accounting issue, this is hitting a whole variety of other areas," Faudree said of Deloitte's preliminary work. Asked by Budget Committee Chairman Jeff Espich if she expected the state to adopt their recommendations, Schwerdtfeger said "absolutely." 

Then, and only then, can they actually get to work:

She said the audit could take "months" after the plan is approved by the panel, but said it was hard to give a specific timeline.

So get comfortable, Hoosiers. You're going to be seeing green spots for awhile.

Audit of $526M in tax errors could take months yet [AP]

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