OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5273
AN ACT CONCERNING THE RECOMMENDATIONS OF THE
INTERGOVERNMENTAL POLICY AND PLANNING DIVISION
WITHIN THE OFFICE OF POLICY AND MANAGEMENT.
AMENDMENT
LCO No.: 5772
File Copy No.: 227
House Calendar No.: 168
Primary Analyst: LG 5/6/24
Contributing Analyst(s): (FN)
Reviewer: RW
OFA Fiscal Note
See Fiscal Note Details
The amendment increases the threshold for which a State Single
Audit or program-specific audit is required from $300,000 to $500,000 in
annual expenditures of state financial assistance. It also provides
clarification that the extension due date granted for submitting the State
Single Audit or program-specific audit cannot exceed twelve months
from the grant recipient’s fiscal year end. The amendment results in
savings to municipalities and regional school districts (RSDs) that spend
less than $500,000 of state funds annually, as the municipality will not
be required to conduct certain audits per the amendment's updated
provisions. Currently, this is expected to impact eight municipalities
and six RSDs.
The amendment also makes various changes to the procedure and
criteria for municipal tier designation by the Municipal Accountability
Review Board (MARB) or the Municipal Finance Advisory Commission
(MFAC). Any fiscal impact to municipalities is dependent on changes to
tier designation. Under current law, the Office of Policy and
Management (OPM) may distribute money from the Municipal
Restructuring Fund to tier II, III, and IV municipalities.
The amendment makes the following changes to municipal auditing 2024HB-05273-R00LCO05772-FNA.DOCX Page 2 of 2
requirements; (1) increases from the maximum penalty that OPM can
assess on a municipality for missing an audit filing deadline from
$10,000 to $50,000, (2) allows OPM to assess the penalty as a reduction
in one or more grants, and (3) limits the amount of additional time OPM
may grant a municipality to file its audit.
This results in a potential cost or revenue loss to municipalities
beginning in FY 25 to the extent that a penalty is assessed on a
municipality for missing an audit filing deadline.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.