Bill > SB53

This bill modifies the state's internal control system by updating definitions and expanding the responsibilities of the State Board of Internal Control. The bill introduces a new definition for "internal control officer" as an individual responsible for overseeing internal control systems within a state agency. It expands the board's powers to not only establish guidelines for internal controls, but also to manage and provide oversight of these systems. The bill requires each state agency to designate an internal control officer who will ensure the agency's compliance with internal control standards, and allows for two or more agencies to share a single internal control officer. A significant new provision mandates that state agencies conduct an annual review of their risk and control matrix, assessing the effectiveness of internal controls and risk mitigation strategies, and submit the results to the statewide internal control officer and the board. The bill also gives the board broader examination rights, allowing it to review and retain (but not disclose) relevant agency documents to evaluate internal control effectiveness. The overall aim is to strengthen financial oversight and prevent potential malfeasance within state agencies.

Government Affairs

https://sdlegislature.gov/#/Session/Bill/25825