SB 366-FN - AS INTRODUCED
2000 SESSION
SENATE BILL 366-FN
AN ACT requiring an external financial audit of the university system of New Hampshire when the university system requests an appropriation that exceeds the prior appropriation by more than one percent.
SPONSORS: Sen. Krueger, Dist 16; Sen. Brown, Dist 17; Sen. Roberge, Dist 9; Sen. Francoeur, Dist 14
This bill requires an external financial audit of the university system of New Hampshire when an institution within the university system requests an appropriation that exceeds the prior fiscal year's appropriation by more than one percent or when an institution within the university system requests a tuition increase that exceeds by more than one percent the tuition assessed in the immediately preceding fiscal year. The bill also provides that any cost associated with an external audit shall be paid from general fund moneys.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
00-2606
04/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT requiring an external financial audit of the university system of New Hampshire when the university system requests an appropriation that exceeds the prior appropriation by more than one percent.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; University System; Funding Accountability. Amend RSA 187-A by inserting after section 25-a the following new section:
187-A:25-b University System; Funding Accountability.
I. An institution within the university system, as defined in RSA 187-A:2, that requests an appropriation from the state that exceeds by more than one percent any moneys received in the prior fiscal year, except for cost-of-living increases, shall submit to an external financial audit to determine if the additional increase in funding is necessary and prudent to meet the financial needs of the institution.
II. An institution within the university system, as defined in RSA 187-A:2, that requests authorization for a tuition increase that exceeds by more than one percent the tuition assessed in the immediately preceding fiscal year, shall submit to an external financial audit to determine if the tuition increase is necessary and prudent to meet the financial needs of the institution.
III. Any costs associated with an external audit required under this section shall be paid from general fund moneys.
IV. The provisions of this section shall not apply if the governor declares an emergency relative to the university system and upon a 2/3 vote of each house of the legislature voting separately.
V. For the purposes of this section, the definition of "cost-of-living" shall be determined by the university system board of trustees.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
00-2606
11/19/99
SB 366-FN - FISCAL NOTE
AN ACT requiring an external financial audit of the university system of New Hampshire when the university system requests an appropriation that exceeds the prior appropriation by more than one percent.
FISCAL IMPACT:
The University System of New Hampshire (USNH) states this bill will have an indeterminable increase in state general fund expenditures beginning in FY 2001 and each year thereafter. There will be no fiscal impact on state, county and local revenue or county and local expenditures.
METHODOLOGY:
The USNH indicates this bill will probably result in an audit of each institution within the System each biennium, since it is the policy of the Board of Trustees, that non-resident tuition rates cover the cost of education and cost of education has been rising at a rate that exceeds 1% audit trigger rate per year.
The System states additional staff would be hired to work with the auditors. The cost of the additional staff, including office expenses, is estimated to be $100,000 to $150,000.
The System states the cost of the audit itself, based on estimated fees from major nationwide accounting firms, will be $100,000 to $150,000.