HOUSE BILL REPORT

HB 515

BYRepresentatives H. Sommers,  Belcher and B. Williams 

Removing cost restriction for annual audit of liquor control board.

House Committe on State Government

Majority Report:     Do pass.  (8)

     Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Sayan and Walk.

House Staff:Pam Madson (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT FEBRUARY 24, 1987

BACKGROUND:

The State Auditor is required by statute to audit the State Liquor Control Board annually.  The audit must be paid for out of the Liquor Revolving Fund.

Since the legislature began setting a lid on the allowable cost of this audit in 1935, the lid has been raised from $5,000 to $10,000 in 1937, and from $10,000 to the current maximum of $30,000 in 1981. The State Auditor feels that the current lid is no longer realistic because of inflationary pressures, increased costs of automated auditing systems, and new statutory auditing requirements such as the auditing of statewide financial statements.

The Governor's proposed budget for the 1987-1989 biennium includes a request of approximately $42,000 for each of two annual audits of the Liquor Control Board -- $12,000 more per year than the current $30,000 statutory lid.

SUMMARY:

The $30,000 cost lid on the State Auditor's annual audit of the State Liquor Control Board is removed.

Fiscal Note:    Requested February 19, 1987.

House Committee ‑ Testified For:     Jack Heinricher, Office of State Auditor; and Jim Hoing, State Liquor Control Board.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     By removing cost restrictions on the State Liquor Control Board's annual audit, the bill would treat the Board like all other state agencies.

House Committee - Testimony Against: None Presented.