Date Requested: January 15, 2018
Time Requested: 11:52 AM
Agency: Administration, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1710 Introduced SB271
CBD Subject: Governor -- Bills Requested By



Sources of Revenue:

Special Fund

Legislation creates:

Creates New Revenue, Creates New Fund:

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

The bill would authorize the Finance Division within the Department of Administration to provide accounting and financial reporting services to other state spending units through a Shared Services Section. Currently, the Finance Division performs these services for most Department of Administration agencies and some boards and commissions that have requested the services. The bill would provide the structure for other state spending units to contract with the Shared Services Section for the services. The Department of Administration will develop a metric to measure the cost of accounting services such as accounts payable/accounts receivable transactions, budget planning, and financial reporting by the Shared Services Section. By July 1, 2019, other spending units will be required to perform a cost analysis if the spending unit is performing those services in-house. If the services can be performed by the Shared Services Section at a lower cost, the Shared Services Section will contract with the spending unit to provide those services if its demonstrated that such an agreement would be feasible and provide cost savings. If spending units continually fail to provide required information the Consolidated Annual Financial Report in a timely manner, the Shared Services Section would be authorized to provide the services to the spending unit. The Shared Services Section shall report annually on cost savings generated by the contracted accounting services. The bill creates a special revenue account to collect funds received through the contracts for services.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

In FY 2019, there is expected to be a slight increase in revenues, as agencies may voluntarily contract with the Shared Services Section for accounting services. Some small spending units and those agencies with vacancies in accounting positions may utilize these services in FY 2019, rather than trying to fill accounting positions in-house or contracting with a private entity for the services. The Finance Division anticipates that it will not require any increase in positions or incur any additional cost in FY 2019, unless a very large number of agencies elect to utilize the services. In FY 2020, an increase in revenue and anticipated corresponding increase in cost is expected, as more agencies are included in the agencies that contract for the services. As the need for positions increase with the volume of services, it is anticipated that accounting positions from other agencies will be migrated into the Shared Services Section, and that additional staff will be offset with additional billing to agencies receiving the services. Upon full implementation, the goal of the proposed legislation is to realize a reduction in costs across state government, as Shared Services Section will be required to demonstrate a cost savings annually to continue to provide services through contracts with other state spending units.


The bill is also designed to address the timely compilation of the Consolidated Annual Financial Report, and provide efficiencies to both the Department of Administration and the state spending units in that process. Deadlines for required information are provided in the bill, and agencies not utilizing the Shared Services Section for financial reporting will be required to designate a liaison to oversee the compilation of information required for the Consolidated Annual Financial Report from that spending unit to the Finance Division.

    Person submitting Fiscal Note: Jennelle H. Jones
    Email Address: