FISCAL NOTE
FUND(S):
Departmental budget’s employee account service reserve due to unfilled positions.
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to require an independent audit be done for performance and efficiency in the Division of Highways. The legislation states that the cost shall not exceed $500,000. The Department of Administration estimates the cost of such an audit to be approximately $300.000. This is based upon the Department of Administration, Finance Division’s, experience with having audits performed and overseeing those audits. However, the exact costs are unknown as it would depend upon the number of individuals working on the audit, the length of time to complete, and the complexity of the audit
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2014 Increase/Decrease (use"-") |
2015 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
300,000 |
300,000 |
300,000 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The Department of Administration’s Purchasing Division does approve contracts for services in conjunction with performing audits. However, those contracts are reviewed based upon an hourly rate for the number of individuals performing the audit. The Purchasing Division does not have knowledge as to the total spent upon completion of the audit.
Memorandum
The West Virginia Auditor may be able to provide additional information as that office must process payments to the vendors who perform the audits.
Person submitting Fiscal Note: Donna Lipscomb Spano
Email Address: donna.m.lipscombspano@wv.gov