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