If any examination or investigation made by the state examiner personally or through a deputy examiner, field examiner, or private examiner under this chapter or under any other statute discloses:

1. (1) malfeasance, misfeasance, or nonfeasance in office or of any officer or employee;

2. (2) that any public money has been:

   1. (A) unlawfully expended, either by having been expended for a purpose not authorized by law in an amount exceeding that authorized by law, or by having been paid to a person not lawfully entitled to receive it; or
   2. (B) obtained by fraud or in any unlawful manner; or

3. (3) that any money has been wrongfully withheld from the public treasury;

   a duly verified copy of the report shall be submitted by the state examiner to the attorney general, who shall institute and prosecute civil proceedings as provided in section 1 of this chapter, and to the inspector general.

As amended by P.L.3-1986, SEC.21; P.L.126-2012, SEC.19; P.L.136-2012, SEC.5.