I sent a letter to Governor  Holcomb on Dec 12, 2023, questioning Indiana’s internal control statutes and policies that were applied to approve the Brown County Regional Sewer District’s (BCRSD) application for funding ($39 million) to expand sewers throughout the county.

Indiana’s internal control statutes were derived from guidance provided by the federal government.  “Standards for Internal Control in the Federal Government, known as the “Green Book.”   “The Federal Managers Financial Integrity Act (FMFIA)  requires that federal agency executives periodically review and annually report on the agency’s internal control systems.”

• • Federal Govt.  “The Green Book may also be adopted by state, local, and quasi-governmental entities, as well as not-for-profit organizations, as a framework for an internal control system.”
    • Updated Green Book Standards (Executive  Overview)
    • GAO WatchBlog
  • Indiana – Internal Control Standards, State Board of Accounts (SBOA).
    • Indiana – Office of Inspector General (OIG)
  • Counties.  “Internal controls are designed by the county offices based on the identified risks of not achieving their objectives and the available resources to address those risks.”

The purpose of internal controls is to help improve the efficiency and effectiveness of operations and to help prevent waste, fraud, abuse, and mismanagement of taxpayer-provided funds.

This year (2023), the State Legislature voided county septic system ordinances that included requirements that exceeded state standards.  The BCRSD in justifying the need for their project, also included conclusions that contradict state standards.

• • June  1, 2023 – IDOH – Briefing Slides on the changes
  • MAR 29, 2023. House bill would let property owners ‘supersede’ Indiana health officials over septic systems – Indianapolis Business Journal
    • Now, House Bill 1402, authored by Rep. Jim Pressel, R-Rolling Prairie, intends to transfer authority over residential onsite sewage systems from IDOH to a Technical Review Panel, or TRP, made up of various state officials, scientists, academics and industry professionals. That panel would then be “in total control of Indiana’s septic code,” Pressel said, making it responsible for amending the existing state requirements and authorizing new sewage system technology.

Correspondence – State and Federal Elected Officials

Dec 22, 2023.  Inquiry to the Indian Department of Health (IDOH)

• • New state legislation that voided county septic-related requirements that exceeded state standards also created a Technical Review Panel (TRP). The TRP is to review any new septic system standards proposed by the counties.
  • The Brown County Regional Sewer District (BCRSD) has received initial approvals for its $39 million dollar sewer expansion project from the IFA/SRF. 
  • The BCRSD Preliminary Engineering Report (PER) justified a need derived from the BCRSD Wastewater Strategic Plan and Watershed Study. This plan and study did reference novel approaches for determining the effectiveness and useful life of a septic system, the adequacy of soils, and the interpretation and relevance of water samples in projecting the extent and scope of a problem.   Their strategy is available at the following: https://browncountyregionalsewerdistrict.wordpress.com/strategic-plan/
  • If counties cannot develop septic system-related standards that exceed what the state has identified, then why should county RSDs be allowed to develop new methods and standards without first being reviewed and approved by IDEM, IDOH, Others?   

Dec 18, 2023 – Cover Letter and Transmittal – State and Federal Elected Officials:
20231218 Letter Elected Reps – State and Federal

Dec 12, 2023 – 20231212 e Governor – Suggestion  Internal Control Policy
Extracts:

• • I have concerns with Indiana’s statutes and policies regarding the management of Internal Controls. State and federal statutes provide guidance regarding the development, application, and review of controls. The purpose of internal controls is to help prevent waste, fraud, abuse, and mismanagement of taxpayer-provided funds.
  • It is not evident that the State’s internal control program as it applies to funding of a wastewater treatment project in Brown County Indiana, is at the level that provides citizens with assurance regarding the effective and efficient use of tax dollars.
  • Note that locally developed septic system standards included in ordinances were voided by the state in 2023 and now require an independent review and approval process. Why isn’t this process being applied to locally developed standards that are being used to justify the replacement of functional septic systems for a sewer system?[1]
    • [1] Indiana Dept of Health, 2023 Legislative Update – County Septic Ordinances Voided on July 1, 2023. https://independentvotersofbrowncountyin.com/2023/06/20/indiana-dept-of-health-2023-legislative-update-septic-ordinance/

• • In summary, I request that your office direct an independent and objective assessment of IFAs internal control program in respect to their review and approval of the BCRSD wastewater projects. I also request that this review clarify the role of the state vs the county in the clarification of state standards. This would the adequacy of soils, soil testing, septic system permitting, RSD oversight, and clarification on methodologies regarding water sampling that justifies the level of funding that is provided.

Encl 1 Indiana Office of Inspector General (OIG)

Encl 2 State Board of Accounts (SBOA)

Encl 3 Indiana Finance Authority, State Revolving Fund

Encl 4 BCRSD Response to Comments provided by Lynda Sandow and Tim Clark

 Project Context:

• • BCRSD Sewer Expansion Project on “Trial” – For The Record
  • Sewer Expansion -Phase I PERs – Initial Submission
  • Nov 14, 2023. Helmsburg RSD (HRSD) Updated Preliminary Engineering Report (PER) as of Sep 21, 2023. SRF Approved. (No updated PERs available from the Brown County RSD and posted on their website.