HB 665-FN-LOCAL - AS INTRODUCED

2003 SESSION

03-0590

08/09

HOUSE BILL 665-FN-LOCAL

AN ACT relative to municipal and county audits.

SPONSORS: Rep. Marple, Merr 37; Rep. N. Johnson, Straf 68

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill extends municipal and county audit duty of the municipal services division, department of revenue administration to all departments within the municipality and county.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0590

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to municipal and county audits.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Municipal and County Audits. Amend RSA 21-J:15, II to read as follows:

II. Performing [general] municipal and county audits including audits of all departments within the municipality and county.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

03-0590

Revised 3/4/03

HB 665 FISCAL NOTE

AN ACT relative to municipal and county audits.

FISCAL IMPACT:

The Department of Revenue Administration states this bill will increase state expenditures by $1,272,147 in FY 2004 and $1,335,754 in FY 2005 and each year thereafter. The Association of Counties and New Hampshire Municipal Association state this bill will increase county and local expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will be no fiscal impact on state, county and local revenue.

METHODOLOGY:

The Department of Revenue Administration states this bill will extend the municipal and county audit duty of the Department's Municipal Services Division to all departments within a municipality or county. The Department states it is not currently staffed to support such duties, and would require 18 positions at labor grade 24, and 2 positions at labor grade 28 to carry out the responsibilities contained in this bill. The Department did not estimate the fiscal impact in FY 2006 and FY 2007. Assuming benefits at 37%, associated costs, equipment, and a 5% annual increase, the fiscal impact in FY 2004 and FY 2005 is as follows:

FY 2004 FY 2005

18 LG 24 positions $ 708,880 $ 744,324

2 LG 28 positions 93,960 98,658

Benefits at 37% 297,051 311,903

Associated Costs 72,256 75,869

Equipment 100,000 105,000

Total $1,272,147 $1,335,754

The Association of Counties states this bill would expand the audit responsibilities of the Municipal Services Division at the Department of Revenue Administration (DRA) to all county departments. State audits at the county level would require an indeterminable amount of personnel time to support DRA's work. As a result, the Association states this bill would increase county expenditures by an indeterminable amount.

The New Hampshire Municipal Association states this bill would require the DRA to conduct municipal and county audits in a more detailed manner than current practice. This bill may require local officials to provide additional information and spend more time responding to DRA requests, and as a result could increase local expenditures by an indeterminable amount.