SENATE BILL REPORT

SB 5541

BYSenators Halsan, Zimmerman and Moore

Removing cost restrictions for the annual audit of the liquor control board.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 19, 1987

Majority Report:  Do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7405)

                  March 10, 1987

AS PASSED SENATE, MARCH 9, 1987

BACKGROUND:

The State Constitution provides that all state agencies are subject to audit by the State Auditor.  The appropriation process controls the costs of those audits.  When the audit services revolving fund was implemented in 1981, it incorporated a formula of consistent rates to recover the costs of auditing state agencies and units of local government.

For many years, the maximum dollar amount for auditing the Liquor Control Board (LCB) has been specified in statute; the current limit is $30,000.  The Liquor Board is the only agency with such a restriction in its statutes.

The State Auditor has requested that the maximum be deleted, to make treatment of the LCB consistent with other agencies and because the $30,000 amount is no longer sufficient to provide an adequate audit for an agency the size of the Board.  In addition the reference to the liquor revolving fund is not needed, since it is covered by another statute.

SUMMARY:

The maximum amount of $30,000 to cover the annual audit of the Liquor Control Board and the reference to the liquor revolving fund are removed from statute.

Fiscal Note:      none requested

Senate Committee - Testified: James E. Hoing, Controller, Liquor Control Board; Jack Heinricher, Assistant State Auditor