This bill amends several sections of the South Dakota law regarding the State Board of Internal Control, enhancing its authority and responsibilities. Key amendments include the establishment of a new requirement for each state agency to conduct an annual review of its documented 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 the Board of Internal Control. Additionally, the bill clarifies the composition of the Board, which includes representatives from state agencies, the Bureau of Finance and Management, the state auditor, and the Board of Regents.

The bill also outlines the responsibilities of the Board, which include establishing guidelines for internal control systems, maintaining a code of conduct and conflict-of-interest policy, evaluating the effectiveness of internal controls, and accessing relevant records from state agencies. Furthermore, it specifies that each state agency must designate an internal control officer to ensure compliance with the chapter's provisions. Notably, the bill states that the term of the individual appointed to the Board by the chief justice of the Supreme Court will expire on July 1, 2025.

Statutes affected:
Introduced, 01/10/2025: 1-56-3, 1-56-6, 1-56-8
Senate State Affairs Engrossed, 02/03/2025: 1-56-1, 1-56-2, 1-56-3, 1-56-6, 1-56-8
House State Affairs Engrossed, 02/26/2025: 1-56-1, 1-56-2, 1-56-4, 1-56-5, 1-56-6, 1-56-8, 1-56-3
House Engrossed, 03/03/2025: 1-56-1, 1-56-2, 1-56-3, 1-56-6, 1-56-8
Enrolled, 03/06/2025: 1-56-1, 1-56-2, 1-56-3, 1-56-6, 1-56-8