Audit Finds $300 Million In Uncounted Indiana State Funds

by Rick Howlett on December 6, 2011

A software error has resulted in a financial surprise for Indiana state government leaders.

Governor Mitch Daniels says the state budget will get an unexpected infusion of $300 million cash from corporate income tax collections that were not properly transferred into the general fund.

The software glitch dating back to 2007 resulted in the funds not being automatically routed from one account to another. The state was always earning interest on the money; it just wasn’t showing up in the general fund.

An internal audit led to the discovery.

“As far as I’m concerned we just drew the Community Chest card—‘bank error in your favor: collect not $200 but something much more,'” said Daniels, referring to the Monopoly board game.

Daniels says he’ll consult with lawmakers on what to do with the money, but he’d like to use it to build up a budget surplus, which could eventually trigger a taxpayer refund.

(Information for this story also came from the Associated Press)

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