Date Requested: February 03, 2015
Time Requested: 02:32 PM
Agency: Technology, Office of
CBD Number: Version: Bill Number: Resolution Number:
2822 Introduced SB404
CBD Subject: Finance and Administration


FUND(S):

2220, 2531

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.


    This measure will require an increase in project management staffing of six mid to senior level project managers, as well as an increase of current expenses to cover the cost of an independent third party post audit reviewer.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 600,000 900,000
Personal Services 0 480,000 720,000
Current Expenses 0 120,000 180,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 600,000 900,000


Explanation of above estimates (including long-range effect):


    Personal services are estimated to increase by six full time employees to perform audits of all major information technology projects. Currently a major information technology project is defined as any information technology project costing over $100,000. In addition, current expenses are estimated to increase by approximately $180,000 per year based on the cost of post audit reviews. This total is based on an estimated 95 projects per year needing audited with approximately 12 requiring post-audit reviews. The expenses for post-audit review will vary based on the number of post-audit reviews required per year.



Memorandum


    The fiscal impact associated with this bill would affect any agencies performing major information technology projects $100,000 +) requiring the Office of Technology to audit the project and have an independent audit review on of any information technology projects over $1,000,000. The Office of Technology operates as a bill for services agency, therefore these costs would be billed back to the agency executing the project.
    
    If the dollar limit for what was considered to be a major information technology project was increased to $500,000 from the current $100,000 the number of major information technology projects requiring audit would decrease from approximately 95 per year to approximately 35 per year, causing the fiscal impact to decrease from the estimated $900,000 to an estimated $420,000.
    



    Person submitting Fiscal Note: Justin T. McAllister
    Email Address: justin.t.mcallister@wv.gov