LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 18, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB609 by Hochberg (Relating to internal auditing of
state agencies.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB609, Committee Report 1st House, Substituted: negative impact *
* of $(870,680) through the biennium ending August 31, 2003. *
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The bill would amend Section 2102.004, Government Code, to require all
agencies receiving appropriations to appoint an internal auditor and
conduct internal audits.
General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(435,340) *
* 2003 (435,340) *
* 2004 (435,340) *
* 2005 (435,340) *
* 2006 (435,340) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from General from from Federal *
* Revenue Fund Revenue Interagency Funds - Federal *
* 0001 Dedicated Contracts 0555 *
* (Described 0777 *
* Below) *
* 2002 $(435,340) $(73,440) $(63,280) $(38,010) *
* 2003 (435,340) (73,440) (63,280) (38,010) *
* 2004 (435,340) (73,440) (63,280) (38,010) *
* 2005 (435,340) (73,440) (63,280) (38,010) *
* 2006 (435,340) (73,440) (63,280) (38,010) *
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from from Other from Research from Fire *
* Appropriated Funds and Oversight Fighter's *
* Receipts 0997 Council Relief and *
* 0666 Workers' Retirement Fund *
* Compensation 0976 *
* Fund Account/ *
* GR-Dedicated *
* 5016 *
* 2002 $(37,750) $(17,100) $(4,850) $(1,720) *
* 2003 (37,750) (17,100) (4,850) (1,720) *
* 2004 (37,750) (17,100) (4,850) (1,720) *
* 2005 (37,750) (17,100) (4,850) (1,720) *
* 2006 (37,750) (17,100) (4,850) (1,720) *
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* State Pension Review Auctioneer Education FY 2001 *
* Board Fund and Recovery Trust *
* 0662 Fund *
* 0898 *
* 2002 $(330) $(180) 4.5 *
* 2003 (330) (180) 4.5 *
* 2004 (330) (180) 4.5 *
* 2005 (330) (180) 4.5 *
* 2006 (330) (180) 4.5 *
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Fiscal Analysis
The smallest 56 state agencies would be required by the provisions of
this bill to establish a program of internal auditing.
Methodology
Total costs were based on current average costs ($75 per hour) to
contract for internal audit services, assuming that each agency would
require an annual average of 160 hours of internal audit services. Total
costs were distributed among funding sources based on agency
appropriation amounts and method of finance for fiscal year 2001 .
General Revenue-Dedicated (above) includes the following funds: #0334
Comm. on the Arts Operating; #0664 Texas Preservation Trust; #0036 Dept.
of Insurance Operating; #0116 Law Enforcement Officer Standards; #0337
Peace Officers Memorial; #0523 Pharmacy Board Operating; #0541
Children's Trust Fund Operating.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 308 State Auditor's Office
LBB Staff: JK, RB, SM