Appropriation; Audit, Department of.

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To: Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Hopson, DeBar, DeLano,
Barnett, McLendon, Sparks, Suber

SENATE BILL NO. 3087
(As Sent to Governor)

AN ACT MAKING AN APPROPRIATION FOR THE PURPOSE OF DEFRAYING 1
THE EXPENSES OF THE STATE DEPARTMENT OF AUDIT FOR FISCAL YEAR 2
2027. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 4
SECTION 1. The following sum, or so much thereof as may be 5
necessary, is hereby appropriated out of any funds in the State 6
General Fund not otherwise appropriated, for the purpose of paying 7
salaries and defraying the expenses of the State Department of 8
Audit in making the audits and investigations of public offices of 9
the state and counties as provided by Section 7-7-201 et seq., 10
Mississippi Code of 1972, for the fiscal year beginning 11
July 1, 2026, and ending June 30, 2027......... $ 8,149,947.00. 12
SECTION 2. The following sum, or so much thereof as may be 13
necessary, is hereby appropriated out of any special funds in the 14
State Treasury to the credit of the State Department of Audit's 15
special fund account for the purpose of paying salaries and 16
defraying the expenses of the State Department of Audit in making 17
the audits and investigations of public offices of the state and 18
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counties as provided by Section 7-7-201 et seq., Mississippi Code 19
of 1972, for the fiscal year beginning July 1, 2026, and ending 20
June 30, 2027.................................. $ 5,174,719.00. 21
SECTION 3. Of the funds appropriated under the provisions of 22
this act, not more than the following amount of funds, with the 23
exception of the provisions in this section, shall be expended 24
only for "Personal Services," which includes "Vacancy Funding," 25
for the following authorized number of employment headcount: 26
FUNDING: 27
General Funds: $ 7,956,322.00 28
Special Funds: $ 4,684,388.00 29
Total Funds: $ 12,640,710.00 30
PERSONAL SERVICES: 31
Employee Salaries, Wages and 32
Fringe Benefits: $ 11,613,915.00 33
Progressions: $ 0.00 34
Vacancy Funding: $ 1,026,795.00 35
Total Personal Services: $ 12,640,710.00 36
AUTHORIZED HEADCOUNT: 37
Permanent: 147 38
Time-Limited: 0 39
As used in this section, the term "Personal Services" shall 40
mean funds provided under the major object of expenditure category 41
Personal Services for Salaries, Wages, and Fringe Benefits. Funds 42
in this category shall not be transferred to any other category. 43
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It is the intention of the Legislature to ensure compliance 44
with the Variable Compensation Plan, as outlined in Section 45
25-9-147, Mississippi Code of 1972. Payment from these funds 46
shall be in accordance with the Variable Compensation Plan 47
promulgated by the Mississippi State Personnel Board. It is the 48
Legislature's intention that no employee's salary falls below the 49
minimum salary established by the Mississippi State Personnel 50
Board. 51
The State Personnel Board shall determine and publish the 52
projected annual cost of "Personal Services" based on monthly and 53
year-to-date payroll expenditures in compliance with the 54
provisions of this act. 55
With the funds herein appropriated, it shall be the agency's 56
responsibility to ensure that no single personnel action or 57
combination of personnel actions, when annualized, exceeds the 58
Fiscal Year 2027 appropriation for "Personal Services" with the 59
exception of escalated funds. Further, it shall be the agency's 60
responsibility to ensure that funds required to be appropriated 61
for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal 62
Year 2027 funds appropriated for that purpose unless programs or 63
positions are added to the agency's Fiscal Year 2027 budget by the 64
Mississippi Legislature. 65
If, at the time the agency takes any action to change 66
"Personal Services," the State Personnel Board determines that the 67
agency has taken or will take an action that would cause the 68
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agency to exceed the funds appropriated in this act when 69
annualized for Fiscal Year 2027 or increase the need for "Personal 70
Services" for Fiscal Year 2028, when annualized, the State 71
Personnel Board shall process no salary actions until such time as 72
the requirements of the provisions of this section are met with 73
the exception of new hires determined to be essential for the 74
agency. 75
When used in this section, "Vacancy Funding" shall mean funds 76
included in the Total Personal Services amount listed above and 77
designated for approved vacancies in Fiscal Year 2027. These 78
funds are to be utilized to increase the number of filled 79
headcounts that were authorized but unfilled as of the last day of 80
Fiscal Year 2026. If the agency fills additional headcounts after 81
March 1, 2026, until the end of Fiscal Year 2026, the amount of 82
available Vacancy Funding may be proportionally adjusted to 83
reflect the updated number of filled headcounts. The agency shall 84
be responsible for ensuring that "Vacancy Funding" is used to 85
increase headcounts and not for promotions, title changes, 86
in-range salary adjustments, or any other mechanism for increasing 87
salaries for current employees. 88
Any transfers or escalations shall be made in accordance with 89
the terms, conditions, and procedures established by law or 90
allowable under the terms set forth within this act. The State 91
Personnel Board shall not escalate positions or increase the 92
Personal Services total without written approval from the 93
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Department of Finance and Administration. The Department of 94
Finance and Administration shall not provide written approval to 95
escalate any funds for salaries and/or headcounts without proof of 96
availability of new or additional funds above the appropriated 97
level. Unless specifically noted, all Fiscal Year 2026 escalated 98
headcounts have been accounted for and shall be converted to 99
authorized time-limited headcounts. 100
No general funds authorized to be expended herein shall be 101
used to replace federal funds and/or other special funds used for 102
salaries authorized under the provisions of this act and which are 103
withdrawn and no longer available. 104
None of the funds herein appropriated shall be used in 105
violation of the Internal Revenue Service's Publication 15-A 106
relating to the reporting of income paid to contract employees, as 107
interpreted by the Office of the State Auditor. 108
If the agency's total authorized headcount decreases from 109
Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's 110
discretion as to what headcounts are removed. 111
SECTION 4. In compliance with the "Mississippi Performance 112
Budget and Strategic Planning Act of 1994," it is the intent of 113
the Legislature that the funds provided herein shall be utilized 114
in the most efficient and effective manner possible to achieve the 115
intended mission of this agency. Based on the funding authorized, 116
this agency shall make every effort to attain the targeted 117
performance measures provided below: 118
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FY2027 119
Performance Measures Target 120
Finance & Compliance 121
County Government Audits- Percent 122
Audited by CPA Firms 60.00 123
County Government Audits- Percent 124
Audited by OSA 40.00 125
Single Audit Federal Program Coverage - 126
Percent Audited by CPA Firms 60.00 127
Single Audit Federal Program Coverage - 128
Percent Audited by OSA 40.00 129
ACFR Opinion Units - Percent General 130
Fund Assets 75.00 131
ACFR Opinion Units - Percent General 132
Fund Reserves 75.00 133
Technical Assistance 134
Number of Technical Assistance Inquiries 6,400 135
Cost per Technical Assistance Inquiry 15.00 136
Percent Customer Satisfaction Rating of 137
70% or Higher 75.00 138
Investigations 139
Recovered Embezzled and/or Misspent 140
Funds as a Result of Investigations 141
Conducted by this Office 600,000.00 142
Recovered Funds as a Percent of Total 143
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Misspent Funds 18.00 144
Performance Audits 145
Number of Performance Audit Reports 146
Completed 10 147
Number of Positive Changes Recommended 148
in Performance Audits or Bond Monitoring 149
Reports 25 150
A reporting of the degree to which the performance targets 151
set above have been or are being achieved shall be provided in the 152
agency's budget request submitted to the Joint Legislative Budget 153
Committee for Fiscal Year 2028. 154
SECTION 5. It is the intention of the Legislature that 155
whenever two (2) or more bids are received by this agency for the 156
purchase of commodities or equipment, and whenever all things 157
stated in such received bids are equal with respect to price, 158
quality and service, the Mississippi Industries for the Blind 159
shall be given preference. A similar preference shall be given to 160
the Mississippi Industries for the Blind whenever purchases are 161
made without competitive bids. 162
SECTION 6. Of the funds appropriated in Section 2 of this 163
act, it is the intention of the Legislature that Thirty Thousand 164
Dollars ($30,000.00) is provided for the purpose of paying fees 165
for a CPA Review Course for the Office of the State Auditor's 166
employees to be reimbursed over a 12-month period by the employee 167
taking the course. 168
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SECTION 7. It is the intention of the Legislature that the 169
State Auditor is hereby authorized to escalate, budget and expend 170
funds from any source made available to comply with the Single 171
Audit Act of 1984 for the purpose of employing staff, paying 172
related expenses, or to engage private accountants, as necessary, 173
to comply with the provisions of the act, in accordance with rules 174
and regulations of the Department of Finance and Administration in 175
a manner consistent with the escalation of federal funds not to 176
exceed One Million Five Hundred Thousand Dollars ($1,500,000.00). 177
SECTION 8. No more than One Million Dollars ($1,000,000.00) 178
may be provided to defray expenses incurred by the Office of the 179
State Auditor pursuant to the rules and regulations of the United 180
States Department of Justice Federal Equitable Sharing Program. 181
These funds may only be used for nonbudgeted law enforcement 182
purposes by the Office of the State Auditor. 183
SECTION 9. It is the intention of the Legislature that the 184
State Department of Audit shall maintain complete accounting and 185
personnel records related to the expenditure of all funds 186
appropriated under this act and that such records shall be in the 187
same format and level of detail as maintained for Fiscal Year 188
2026. It is further the intention of the Legislature that the 189
agency's budget request for Fiscal Year 2028 shall be submitted to 190
the Joint Legislative Budget Committee in a format and level of 191
detail comparable to the format and level of detail provided 192
during the Fiscal Year 2027 budget request process. 193
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ST: Appropriation; Audit, Department of.
SECTION 10. Of the funds appropriated in Section 2 of this 194
act, it is the intention of the Legislature that Two Hundred 195
Thousand Dollars ($200,000.00) is provided for the purpose of the 196
Accountancy Fellowship Program as provided by Section 7-7-204 et 197
seq., Mississippi Code of 1972. 198
SECTION 11. The money herein appropriated shall be paid by 199
the State Treasurer out of any money in the State Treasury to the 200
credit of the proper fund or funds as set forth in this act, upon 201
warrants issued by the State Fiscal Officer; and the State Fiscal 202
Officer shall issue his warrants upon requisitions signed by the 203
proper person, officer or officers in the manner provided by law. 204
SECTION 12. This act shall take effect and be in force from 205
and after July 1, 2026. 206