Colorado Legislative Council Staff

LOCAL

CONDITIONAL FISCAL NOTE

No State General Fund Impact

Local Government Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-237

Rep. Taylor

Sen. Reeves

Date:

Bill Status:

Fiscal Analyst:

January 2, 1998

House Local Government

Steve Tammeus (866-2756)

 

TITLE:          CONCERNING THE MODIFICATION OF REQUIREMENTS FOR THE EXEMPTION OF CERTAIN LOCAL GOVERNMENTS FROM AUDITS.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

              General Fund

              Other Fund



 



 

State Expenditures

              General Fund

              Other Fund


 


 

FTE Position Change

None

None

Local Government Impact — The provisions of this bill may affect local government expenditures. The provisions that increase the exemption limits may reduce some local government audit expenditures. The provisions that specify the qualifications of the persons filing the audit may increase some local government expenditures for personal services or audit services. The resulting fiscal impact, if any, is dependent upon whether the current local government audit practices comply with the provisions of the bill.


            This bill increases the local government audit exemption threshold for revenue and expenditures from $50,000 to $100,000 in any fiscal year commencing on or after January 1, 1998. The bill requires the person who files the application for such exemption to be skilled in governmental accounting.


            The bill also allows any local government with annual revenues or expenditures more than $100,000 but not more than $300,000 to be exempt, with approval of the State Auditor. Current law provides for a threshold minimum of $50,000 but not more than $125,000. The bill requires the application for such exemption to be filed by an independent accountant with knowledge of governmental accounting. The bill deletes provisions regarding exemptions for more than two consecutive years.





Summary of Assessment


            The provisions of this bill will not affect state revenue or expenditures. However, the bill may affect local government expenditures, if the local government audit practices do not currently comply with the provisions of the bill. Therefore, the bill is assessed as having a conditional local government impact.


            The bill would take effect at 12:01 a.m. on the day following the expiration of the 90-day period after final adjournment of the General Assembly; or upon proclamation of the Governor if a referendum petition is filed against this act and approved by a vote of the people.



State Expenditures


            The provisions of this bill will not affect the workload or resources of the Office of the State Auditor or any other state agency.



Local Government Impact


            The provisions of this bill may affect local government expenditures. The provisions that increase the exemption limits may reduce some local government audit expenditures. The provisions that specify the qualifications of the persons filing the audit may increase some local government expenditures for personal services or audit services. The resulting fiscal impact, if any, is dependent upon whether the current local government audit practices comply with the provisions of the bill.



Spending Authority


            This fiscal note would imply that no new appropriations or spending authority are required to implement the provisions of this bill in FY 1998-99.



Departments Contacted


            Local Affairs              State Auditor