LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6677 NOTE PREPARED: Dec 16, 2024
BILL NUMBER: SB 203 BILL AMENDED:
SUBJECT: Audit of State Agencies.
FIRST AUTHOR: Sen. Tomes BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: This bill requires the Legislative Council to oversee the audit, by an independent
public accounting firm, of all accounts, financial affairs, and compliance related matters of all state agencies.
It requires the Legislative Council to direct the Legislative Services Agency (LSA) to issue requests for
proposals for an independent public accounting firm or firms, as necessary, to audit the state agencies and
requires the Legislative Council to determine the scope of an audit during the request for proposal process.
The bill requires the Legislative Council to determine which and how many state agencies will be audited
each year and requires the Legislative Council to provide notice to a state agency that will be subject to audit
30 days prior to the audit. The bill provides that the Legislative Council may not authorize a subsequent audit
of a state agency until all state agencies have been audited at least once.
This bill provides that when all of the state agencies have been audited at least once, the Legislative Council
may determine which and how many agencies will be audited annually for each calendar year thereafter on
a random basis and provides that the Legislative Council may authorize a subsequent audit of a state agency
that the Legislative Council determines to be high risk. It also requires the Legislative Council to publish the
results of the audit of each state agency on the General Assembly's website.
This bill lists the state agencies that are subject to audit.
Effective Date: July 1, 2025.
Explanation of State Expenditures: This bill’s requirements will result in an increase in both the
administrative workload and expenditures for LSA. LSA will be required to issue requests for proposals for
an independent public accounting firm that will be tasked with auditing all accounts, financial affairs, and
compliance related matters of 70 different state agencies referenced in the bill, as well as any newly created,
reorganized, or merged agency. Each state agency will be subject to audit at least once. Upon completion of
the initial audit of all state agencies referenced in the bill, the Legislative Council may determine the number
of agencies that will be audited annually on a random basis. Additionally, the Legislative Council will be
required to publish the completed audits on the General Assembly's website.
SB 203 1 The actual fiscal impact will be contingent on the outcome of the request for proposals, namely the contract
amount of the selected independent public accounting firm.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Legislative Services Agency; the 70 state agencies referenced in the legislation
that are subject to audit, as well as any newly created, reorganized, or merged agency.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 203 2