This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0563 - Audits of school district enrollment and attendance by the Department of Elementary and Secondary Education
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2364-02
BILL NO. SB 563
SUBJECT: Education, Elementary and Secondary: Audits of School Districts
TYPE: Original
DATE: January 13, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
$0
$0
$0 Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | ($0 to $883,327) | ($0 to $971,660) | ($0 to $1,068,826) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Elementary and Secondary Education (DESE) assume the audit procedures would cost approximately one dollar per pupil. For the 1996-97 school year school districts had 883,327 pupils. DESE assumes enrollment increases 10% annually.
The Oversight Division has ranged the cost from zero to $883,327 the first year and increased the cost 10% annually because audits would be contracted at the discretion of the Commissioner of Education.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| GENERAL REVENUE FUND | |||
| Savings-DESE | |||
| State Aid Withheld as Reimbursement for Audits | $0 to | $0 to | $0 to |
| $883,327 | $971,660 | $1,068,826 | |
| Cost-DESE | |||
| Audits | ($0 to | ($0 to | ($0 to |
| $883,327) | $971,660) | $1,068,826) | |
| ESTIMATED NET EFFECT ON STATE | |||
| GOVERNMENT | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| Loss-School Districts | |||
| State Aid Withheld as Reimbursement for Audits | ($0 to | ($0 to | ($0 to |
| $883,327) | $971,660) | $1,068,826) | |
FISCAL IMPACT - Small Business
Certified Public Accounting firms could be contracted to perform audits of school districts' enrollment and attendance.
DESCRIPTION
The proposal would allow the Commissioner of Education to contract with a Certified Public Accounting firm to perform an audit of the enrollment and average daily attendance records of any school district in order to come to an informed opinion on enrollment, attendance and
DESCRIPTION (Continued)
reporting. A physical count of students would be part of the audit. The count would occur on a
date randomly selected without notice to the district.
The actual costs of the audit would be paid by the Department, and as reimbursement by the district, the same amount would be withheld from the district's payment of state aid over twelve months.
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
Department of Elementary and Secondary Education
Jeanne Jarrett, CPA
Director
January 13, 1998