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F I S C A L I M P A C T R E P O R T

SPONSOR Lunstrum

ORIGINAL DATE

LAST UPDATED

1/22/07

HB 155

SHORT TITLE

Reducing Audit Requirements for Certain State

Agencies

SB

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Office of the State Auditor

Responses Received From

Office of the State Auditor (OSA)

SUMMARY

Synopsis of Bill

House Bill 155 is Reducing Audit Requirements for Certain State Agencies. House Bill 155

places annual budget thresholds on how certain state agencies should be audited. The bill adds

language that requires individual state agencies with total annual budgets in excess of one

million dollars ($1,000,000) to have audits conducted in accordance with general accepted

auditing standards and rules issued by the State Auditor. The bill further states that individual

state agencies with total annual budgets of one million dollars ($1,000,000) or less may have

audit reviews conducted in accordance with generally accepted auditing standards and rules

issued by the State Auditor.

FISCAL IMPLICATIONS

The State Auditor does not report any fiscal implications.

House Bill 155 – Page

2

SIGNIFICANT ISSUES

The State Auditor reports that the majority of judicial branch court units have budgets that total

more than one million dollars ($1,000,000). The only court units that have annual budgets less

than or equal to one million dollars ($1,000,000) are the Supreme Court Building Commission,

the Judicial Standards Commission, and the Tenth Judicial District Court. The bill does not

indicate whether or not the annual audit cost will be reduced for these court units as a result of

less formal audit requirements

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The State Auditor reports no consequences of not enacting this bill.

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