FISCAL NOTE
Date Requested: February 19, 2026
Time Requested: 01:55 PM |
| Agency: |
Legislative Auditor |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4274 |
Introduced |
SB1011 |
|
|---|
| CBD Subject: |
Legislature; Public Safety |
|---|
|
FUND(S):
General
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill would require the Legislative Auditor's Office to accept all required documents for an audit electronically from volunteer fire departments (VFDs). Examples of documents required in the course of an audit include complete bank statements including check images, credit card invoices, itemized receipts, loan documents, utility bills, etc..
There are over 420 VFDs in West Virginia, each of which submit bank statements and check images to the Legislative Auditor annually by February 1st per existing law, with approximately 80 per year also submitting supporting documentation when selected for an audit. Currently, all documents are submitted in paper format by mail or delivered in person to our offices.
To allow for the secure transmission of financial documents it would likely require the use of a third-party vendor service, such as Dropbox, to ensure the files are kept secure when transmitted electronically to us. This would allow each department who wishes to submit electronically to have its own separate account where it can then submit documentation to us securely, separate of all other departments.
We do not anticipate all departments to opt to submit electronically, and based on our experience dealing with departments since 1994, an estimate that 50% of departments would opt into this would be a reasonable estimate in our judgement. However, as time goes on and the shift to electronic communication is more widely adopted and becomes more common, this would likely increase.
For the purpose of this Fiscal Note it is assumed that any cost would be paid by the Legislative Auditor's Office as currently we do not charge departments to conduct an audit or require the expenditure of funds to comply with applicable provisions of law beyond the cost of mailing documents.
The estimates below are based on the following:
420 VFDs in WV
25% participation year 1
50% participation year 2
50% participation full implementation
Cost per Dropbox per user per month - $24
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
30,240 |
60,480 |
60,480 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
30,240 |
60,480 |
60,480 |
| 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):
420 VFDs in WV (approximate)
25% participation year 1
50% participation year 2
50% participation full implementation
Cost per Dropbox per user per month - $24
Year 1 - 25% of VFDs Opt-in
105 VFDs x $24 per VFD per month x 12 months = $30,240
Year 2 - 50% of VFDs Opt-in
210 VFDs x $24 per VFD per month x 12 months = $60,480
The current per year per department cost estimate is $288.
Memorandum
The current per year per department cost estimate is $288. While it is estimated 50% of departments would submit documents electronically, this would fluctuate based on the actual number and could be less or more depending on the actual number who choose to opt in.
There is also the possibility that a method could be developed in-house to allow for the electronic submission of documents which could avoid some or all of these costs, however we are unable to determine the possibility for this with the time available to provide this fiscal note and would likely require significantly more time to make that determination.
While the electronic submission of documents would be an operational benefit to the Legislative Auditor and the VFDs, ensuring that the submission of this information is secure is critical as this increases the risk for exposure for each department submitting electronically if proper security and safeguards are not in place.
Person submitting Fiscal Note: Justin Robinson
Email Address: justin.robinson@wvlegislature.gov