LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 17, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1016 by Madla (Relating to the review of financial audits of regional planning commissions.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1016, As Introduced: negative impact of $(133,098) through the * * biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(66,549) * * 2003 (66,549) * * 2004 (66,549) * * 2005 (66,549) * * 2006 (66,549) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(66,549) 0.5 * * 2003 (66,549) 0.5 * * 2004 (66,549) 0.5 * * 2005 (66,549) 0.5 * * 2006 (66,549) 0.5 * *************************************************************************** Technology Impact None. Fiscal Analysis This bill would require the regional planning commissions to send the State Auditor, the Comptroller, and the Legislative Budget Board a copy of each report and audit required. This bill would also require the State Auditor to review each audit and report and be given access to working papers and other supporting documentation that the State Auditor determines is necessary to perform the review. If the State Auditor finds significant issues, the findings and related recommendations must be reported to the Legislative Audit Committee, the Governor, and the commission. The Governor would be authorized to direct the commission to prepare a corrective action plan, and the Legislative Audit Committee would be authorized to direct the State Auditor to perform any additional audits. This bill would take effect September 1, 2001. Methodology The State Auditor's Office estimates that implementation of the provisions of the bill would require adding approximately one-half FTE for the reviews. The agency estimates that review of each of the 24 Councils of Government (COGs) would take 40 hours for a total of 960 hours per year. Local Government Impact No significant fiscal implication to units of local government is anticipated. Surveyed COGs estimated average costs of $100 per hour and that each review would require 8 to 10 contact hours with SAO staff for a total of $800 to $1,000 per review. Source Agencies: 308 State Auditor's Office, 304 Comptroller of Public Accounts, 301 Office of the Governor LBB Staff: JK, DB, MF