This bill proposes modifications to the internal control system of state agencies in South Dakota, aiming to enhance the implementation, review, and oversight processes. Key amendments include redefining "internal control" to specifically refer to state agencies rather than organizations, and introducing the role of an "internal control officer" designated by each state agency to oversee compliance with internal control systems. The bill also establishes that the State Board of Internal Control will create guidelines for effective internal control systems, a code of conduct, and a conflict-of-interest policy for state agencies, while allowing for the Unified Judicial System to implement its own policies in accordance with its existing standards.

Additionally, the bill mandates that each state agency conduct an annual review of its risk and control matrix to evaluate the effectiveness of its internal controls and risk mitigation strategies. The results of this review, along with any updates to the risk and control matrix, must be submitted to both the statewide internal control officer and the State Board of Internal Control. The board is granted the authority to examine relevant data and records from state agencies to ensure compliance and effectiveness of internal controls, thereby strengthening oversight and accountability within state operations.

Statutes affected:
Introduced, 01/09/2025: 1-56-1, 1-56-3, 1-56-6, 1-56-8