The Wyoming Department of Audit told the Joint Appropriations Committee on Jan. 7 that several near-term staffing and contract costs are driven by rising regulated entities and aging audit tools.

Justin Chavis, director of the Department of Audit, said the Collection Agency Board uses 100% special revenue and that the $160,000 labeled “non operating expenditures” reimburses the department for licensing position salaries and benefits. “Those salaries and benefits are then reimbursed to the department from those funds,” he said when asked by co-chair Baer.

Chavis asked the committee to consider an exception request for three entry-level bank examiner positions, citing a large increase in the number of banks, trust companies and “speedy banks” since 2020 (he said trusts have grown by more than 100% and the total number of regulated entities by about 50%). He told lawmakers the banking division is 100% fee-supported and that “current revenues would already support this,” meaning fees would not need to rise to pay for the hires.

On the statewide financial audit — a statutorily required annual audit and single audit for federal money — Chavis said the base cost runs about $1.1 million per year and that the next contract cycle drew two proposals. He described a separate exception request to cover an external peer review required every three years under generally accepted government audit standards.

The department also asked for funding to cover vendor-driven increases in its data-analytics software (IDEA), which Chavis said the vendor is bringing up to market rates after grandfathered licenses. He said those license increases are being phased in at roughly 10% annually.

Committee members pressed the department on rising special-revenue balances and whether boards that set licensing fees should reduce rates or use rebates. Chavis said the statute and board rules determine fees and recommended the department work with the collection agency board and other divisions on whether fee waivers or adjustments are appropriate. He added the department plans more public outreach to explain its role and how members of the public can report red flags.

The department presented these items as exception requests; no formal vote was taken in the hearing. The committee asked for follow-up materials on hiring classifications, equipment needs for new positions, and historical hiring trends.