The 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. Additionally, the bill specifies that the Board of Internal Control will provide guidelines and standards for internal control officers designated by state agencies, ensuring compliance with the chapter's provisions.

Furthermore, the bill modifies the composition of the State Board of Internal Control, which will now include four individuals appointed by the Governor, the commissioner of the Bureau of Finance and Management as chair, the state auditor, and an appointee from the Board of Regents. The bill also clarifies the board's responsibilities, including establishing guidelines for internal control systems, maintaining a code of conduct, and evaluating the effectiveness of internal controls within state agencies. Notably, the term of the individual appointed by the chief justice of the Supreme Court to the Board 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