FISCAL NOTE
Date Requested: January 31, 2024
Time Requested: 01:36 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3172 |
Introduced |
HB5399 |
|
|---|
| CBD Subject: |
Insurance; Taxation |
|---|
|
FUND(S):
State Funds
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed House Bill 5399 is to modify state auditing practices and requirements to facilitate efficient financial management of volunteer and part-volunteer fire departments; directing state audit functions of these departments to the State Auditor; freezing state funding to any fire departments that fail to cooperate with a state audit; requiring that both the fire chief and treasurer sign any sworn statements required to be submitted to the state auditor; requiring that volunteer and part-volunteer fire departments be audited at least once every 5 years; providing for restitution be paid to volunteer and part-volunteer fire departments double the amount of property unlawfully stolen or embezzled; requiring posting a notice of this penalty in volunteer and part-volunteer fire departments; and establishing a pilot project to evaluate how volunteer and part-volunteer fire departments implement the State Auditor’s Checkbook accounting system.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
136,740 |
136,740 |
| Personal Services |
0 |
115,240 |
115,240 |
| Current Expenses |
0 |
21,500 |
21,500 |
| 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):
After reviewing the proposed legislation, the State Auditor’s Office believes the provisions contained within the proposed Bill, specifically those provisions requiring the State Auditor to conduct an audit of all volunteer and part-volunteer fire departments receiving formula distributions at least once every five years will require the hiring, training, equipping and travel costs of at least two additional staff auditors. Accordingly, the costs associated with those proposed new staff positions are included as costs within this Fiscal Note Response totaling $86,000 in salary, plus $29,240 in fringe benefits. In addition, we believe there will be additional travel expenses incurred by these new staff members to carry out their audit duties which we estimate will total $21,500 annually. Therefore, we believe implementing the provisions of the proposed Bill will result in total implementation costs of $136,740 annually. It should be noted the State Auditor in accordance with the requirements set out in Chapter 8, Article 15, Section 7a of the West Virginia Code is not permitted to submit billing invoices for audit services to the volunteer and part-volunteer fire departments. Therefore, our fiscal note submission assumes the full implementation costs of $136,740 annually as set out earlier with respect to the Bill will be funded by an appropriation from the State General Revenue Fund for such purposes. Otherwise, the State Auditor believes the remainder of the provisions of the proposed legislation can be implemented utilizing existing staff and resources already available.
Memorandum
We have no additional comments regarding the proposed legislation.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov