|Date Requested:March 06, 2013
Time Requested:02:15 PM
| FUND(S) |
Local government funds
Sources of Revenue
|Other Fund Funds of local government|
Legislation creates:A New Program
Effect this measure will have on costs and revenues of state government.
|The Chief Inspector Division conducts audits on local governments in the state and charges fees based on the actual cost of the service. Over the years, a significant amount of unpaid audit fees have accumulated for smaller governments (primarily Class 3 and 4 municipalities). The amnesty program would allow the Chief Inspector to forgive audit fees for financially troubled governments. Currently, the accounts receivable for municipalities is approximately $984,000 and approximately $650,000 of that balance may be eligible for consideration of fee forgiveness. The division also has approximately $174,000 in receivables for small miscellaneous boards and authorities; approximately $70,000 in those fees would be eligible for the program. The remaining government types (i.e. County Commissions; Boards of Education; Magistrate Courts; Boards of Health) regularly pay thier audit bills so the amount of fees eligible for the program would be negligible.|
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
The overall effect on revenue for the Chief Inspector Fund cannot be estimated since the collectibility of these past fees is uncertain due to the poor financial condition of a number of these governments.