Date Requested: January 15, 2015
Time Requested: 03:31 PM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
2093 Introduced HB2015
CBD Subject: Legislature


Joint Committee on Government and Finance

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

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

This bill will require the Office of the Legislative Auditor to audit each state agency and constitutional officer every 4 years. As a result, the workload for the Office will increase significantly, thus requiring the addition of new employees. The Legislative Auditor's Office is authorized for 8 audit managers and 51 auditors. Currently, the Office has 8 audit managers and 31 auditors. In 2014, the Office released a total of 25 reports. With an estimated 189 state agencies, the Office would have to average about 47 reports per year just to meet the statutory mandate. To meet this workload increase, it is estimated that the Office would have to increase the number of auditors by 25. This projected estimate of new auditors is based on the current average of auditors/managers it took to complete the 25 audit reports in 2014. Estimates are also assuming that the Office is fully staffed.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 2,650,000 3,562,443
Personal Services 0 2,500,000 3,359,200
Current Expenses 0 150,000 203,243
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):

The Office of the Legislative Auditor would have to increase its size by approximately 25 auditors to meet the statutory mandate, and continue other audit and research functions. It is estimated that a portion of the auditors would be hired in 2016, and then the rest of the auditors would be hired in 2017. This would increase the size of the Office to a total of 76 auditors. As explained in the memorandum below, high turnover has prevented the Office of the Legislative Auditor from being fully staffed. Thus, the increase in personal services includes salary increases to $50,000 per year for the current auditors, increases for the current managers and directors, bringing the Office to full staff at its currently approved number, plus the additional 25 auditors needed to fulfill the objectives of the bill. Office expenses would increase by $203,243. Estimated office expenses are projected based on the current staff and expenses. Start-up costs including purchasing new office furniture and computers are estimated to be expended in 2016.


The Office of the Legislative Auditor has been unable to maintain staffing levels primarily due to noncompetitive salaries over the past several years, thus turnover is a significant issue. For the Post Audit Division, the turnover for 2012 was 25%; for 2013 it was 39%; and for 2014 it was 40%. Three employees have resigned thus far in 2015. The Performance Evaluation and Research Division has had turnover issues as well, 22.2%; 11.1%; and 33.3% for 2012 - 2014. Thus, with current turnover rates, the objectives of this bill will be hard to meet. The above analysis includes salary levels which will be more competitive, and would drop the turnover rate allowing for a more experienced staff.

    Person submitting Fiscal Note: Denny Rhodes
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