121st Maine Legislature
		Office of Fiscal and Program Review
		LD 606
		An Act To Improve State Accounting Procedures
		LR 1215(01)
		Fiscal Note for Original Bill
		Sponsor: Sen. Douglass of Androscoggin
		Committee: State and Local Government
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$2,000,000	$2,050,000	$2,101,250	$2,153,781
Appropriations/Allocations
	General Fund		$2,000,000	$2,050,000	$2,101,250	$2,153,781
Fiscal Detail and Notes
	Requiring the Department of Audit to account for federal grants at the end of each fiscal year to the Legislature could require General Fund appropriations of up to $1,500,000 annually based on the expected need of approximately 20 additional auditors.  In addition, requiring all audits over 1,000,000 to be performed by a certified public accountant could cost approximately $500,000 due to the need to replace 60% of the current staff with CPA's.  It is assumed that a stipend similar to the 20% stipend provided to other certified public accountant staff in other departments would be required to recruit and retain the required number.  A 20% increase in Personal Services will cost the Department of Audit approximately $500,000 annually.