00SENATE BILL NO. 128                                                                                                     
01 "An Act relating to legislative audits."                                                                                
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 24.20.311 is amended to read:                                                                       
04  Sec. 24.20.311.  REPORTS.  The Legislative Budget and Audit Committee                                               
05 [COMMITTEE] shall file copies of its approved audit reports including any committee                                     
06 recommendations with the governor, the agency concerned, and the legislature.  A                                       
07 committee recommendation may identify an item for monitoring under                                                      
08 AS 24.20.312.  An annual report summarizing the audit reports and committee                                            
09 recommendations made during the year shall be filed with the governor and with the                                      
10 legislature within the first five days of each regular session of the legislature.  Reports                             
11 shall be approved by a majority of the committee before their release and shall be open                                 
12 to public inspection after their release to the legislature.                                                            
13    * Sec. 2.  AS 24.20 is amended by adding a new section to read:                                                      
14  Sec. 24.20.312.  MONITORING OF AUDIT RECOMMENDATIONS.  (a)                                                            

01 The office of management and budget shall review each item identified for monitoring                                    
02 in a recommendation contained in an audit report filed with the governor under                                          
03 AS 24.20.311.  The office shall monitor the implementation of a recommended item                                        
04 if the audited agency agrees with it.  If the agency disagrees in whole or in part with                                 
05 a recommended item, the office shall, within 60 days after the audit report containing                                  
06 the item is filed with the governor (1) request the governor to direct the agency to                                    
07 implement the item, or (2) submit a report to the legislative auditor proposing an                                      
08 alternative resolution or indicating a final position of opposition to the item.  A copy                                
09 of the report shall be supplied by the office to each member of the Legislative Budget                                  
10 and Audit Committee.                                                                                                    
11  (b)  By January 31, the office of management and budget shall submit a report                                         
12 to the legislative auditor and a copy of the report to each member of the committee.                                    
13 The report must explain the results during the previous calendar year of the monitoring                                 
14 of each item under (a) of this section.  The legislative auditor shall review the report                                
15 and, as to each item, recommend to the committee that the matter be closed, that                                        
16 implementation be wholly or partially waived by the committee, or that the committee                                    
17 direct the office to continue to monitor implementation.                                                                
18    * Sec. 3.  AS 44.19.145(a) is amended by adding a new paragraph to read:                                             
19   (12)  monitor audit recommendations under AS 24.20.312.