123rd MAINE LEGISLATURE
		LD 342		LR 1667(01)
	An Act To Contract Out the State Single Audit
	Fiscal Note for Original Bill
	Sponsor: Rep. McKane of Newcastle
	Committee: State and Local Government
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$0	$372,000	$372,000	$372,000
Appropriations/Allocations
	General Fund		$0	$372,000	$372,000	$372,000
	Other Special Revenue Funds		$0	($1,107,220)	($1,107,220)	($1,107,220)
Revenue
	Other Special Revenue Funds		$0	($1,519,720)	($1,519,720)	($1,519,720)
Fiscal Detail and Notes
	This bill requires the Office of the State Controller within the Department of Administrative and Financial Services to contract with an independent auditor to conduct the state single audit every year beginning in fiscal year 2008-09.  The State Controller will annually require a General Fund appropriation of $337,500 and an Other Special Revenue Funds allocation of $412,500 (for a total of $750,000) to contract out for these services.  Removing the responsibility for the single audit from the Department of Audit will eliminate 17 audit positions funded by audit charges currently assessed to federal programs, requiring a deallocation of $1,519,720 to reflect the position losses and the corresponding reduction of federal revenue.  The Department of Audit will also require a General Fund appropriation of $34,500 annually to fund "all other" General Fund costs previously charged to federal programs.
	This fiscal note assumes that the responsibilities of the Audit Department that existed in statute before the single audit began will still be required and, therefore, no General Fund deappropriation to the Audit Department is made.