NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC file

Office of State Auditor

Administrative Office of the Courts

SUMMARY

Synopsis of House Judiciary Committee Amendment

The House Judiciary Committee amendment HB432 to clarify that the metropolitan court be treated as a single agency for audit purpose and cost of the audit be paid from the appropriation to the metropolitan court.

Synopsis of Original Bill

House Bill 432 amends Section 12-6-4 NMSA 1978 to require that the reasonable cost of all audits be borne by the agency audited, except that the Administrative Office of the Courts shall bear the cost of auditing magistrate and metropolitan courts. This bill also deletes the requirement to have the annual audit of the State Treasury be borne by the special appropriations to the State Board of Finance.

PERFORMANCE IMPLICATIONS

Regardless of which agency borne costs of audit, metropolitan court and the State Treasury audits needs to be completed on an annual basis.

FISCAL IMPLICATIONS

This bill does not contain an appropriation to audit the metropolitan court. However, it is assumed that the general appropriation act provides for such expenses in the base budget of that entity. Similarly, costs to audit the State Treasury is usually included as a special appropriation ($52.0) to the Department of Finance and Administration for that purpose. Passage of this bill will require moving the appropriation from the Department of Finance and Administration to the State Treasurer.

MP/ar:prr