SB 0771 - Fiscal Note

Fiscal Note - SB 0771 - Officials Must Comply With State Auditor Reports

                                FISCAL NOTE

L.R. NO.  2498-03
BILL NO.  SB 771
SUBJECT:  Audit Compliance
TYPE:     Original
DATE:     January 19, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED             FY 1997             FY 1998            FY 1999
General Revenue               ($0                 ($0                ($0
                               to                  to                 to
                        $100,000)           $100,000)          $100,000)


Total Estimated               ($0                 ($0                ($0
Net Effect on All              to                  to                 to
State Funds             $100,000)           $100,000)          $100,000)



                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED             FY 1997             FY 1998            FY 1999
None                           $0                  $0                 $0

Total Estimated
Net Effect on All
Federal Funds                  $0                  $0                 $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED             FY 1997             FY 1998            FY 1999
Local Government               $0                  $0                 $0


                              FISCAL ANALYSIS

ASSUMPTION
Officials from the Office of State Auditor (SAU) assume the proposed
legislation would have no fiscal impact on their agency.

However, Oversight assumes the provisions of this proposal could increase the
workload of the SAU, because it could expand their audit responsibilities to
local governments and could cause audits to be performed on state agencies on
a more frequent basis than currently occurs.  Any increase in workload would
be dependent on the incidence of reported shortages or discrepancies.  The
proposal would also require the SAU to perform a six-month follow up report
on any audits performed as a result of this proposal.  Oversight assumes the
proposal could be implemented with minimal additional resources, less than
$100,000 per fiscal year.


FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

GENERAL REVENUE FUND

Costs-Office of State Auditor (SAU)
   Additional audit costs            ($0       ($0       ($0
                                      to        to        to
                               $100,000) $100,000) $100,000)


ESTIMATED NET EFFECT TO              ($0       ($0       ($0
GENERAL REVENUE FUND                  to        to        to
                               $100,000) $100,000) $100,000)



FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0



DESCRIPTION
The proposed legislation would require the State Auditor to investigate sums
of money greater than $500 that are unaccounted for.  Additionally, state,
county or municipal officials who would be aware of any shortage of funds or
discrepancy which results in sums of money greater than $500, would be
required to report such to the State Auditor.  The Auditor would then be
required to investigate and report on any lack of prudent internal accounting
or management controls which allowed the shortage to occur or remain
undetected.  Further, such officials would be required to address and correct
the lack of internal accounting or management controls, as reported by the
State Auditor, within six months of the date the report was issued.
Officials who fail to do so would be deemed guilty of a class A misdemeanor.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION
Office of State Auditor