00                      CS FOR HOUSE BILL NO. 316(STA)                                                                    
01 "An Act providing for a standardized improvement tracking system for state agencies."                                   
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 44.66 is amended by adding a new section to read:                                                    
04              Article 2. Standardized Improvement Tracking System.                                                       
05            Sec. 44.66.100. Standardized improvement tracking system. (a) The                                            
06       governor shall implement a standardized improvement tracking system for state                                     
07       agencies.                                                                                                         
08            (b)  The standardized improvement tracking system must enable management                                     
09       of the status, progress, and closure of actions arising from audit findings, corrective                           
10       and preventive action requests, and other valid improvement opportunities identified                              
11       by agency employees, internal or external auditors, customers, and stakeholders.                                  
12            (c)  The standardized improvement tracking system must                                                       
13                 (1)  provide that each improvement opportunity for each state agency                                    
14       be uniquely tracked using the system;                                                                             
15                 (2)  validate each improvement to ensure that it can be logged and                                      

01       tracked as a unique improvement opportunity rather than an addition to or                                         
02       modification of an existing improvement opportunity;                                                              
03                 (3)  screen each improvement opportunity and designate certain                                          
04       improvement opportunities as critical improvement items for resolution;                                           
05                 (4)  identify the following elements for each improvement opportunity:                                  
06                      (A)  description of improvement opportunity;                                                       
07                      (B)  source identifier; and                                                                        
08                      (C)  other elements as necessary;                                                                  
09                 (5)  identify the following elements for each critical improvement item:                                
10                      (A)  description of improvement opportunity;                                                       
11                      (B)  criticality designation;                                                                      
12 (C)  source identifier, including audit finding or corrective or                                                        
13            preventive action;                                                                                           
14 (D)  identity of persons responsible for completion of the                                                              
15            improvement;                                                                                                 
16                      (E)  important dates for tracking status and completion;                                           
17 (F)  estimated cost, value, and savings of the improvement                                                              
18            expressed as an annual, one-time, or other cost as may be applicable;                                        
19 (6)  provide a mechanism for each critical improvement item that will                                                   
20       be progressed for state agencies to                                                                               
21 (A)  analyze each improvement opportunity by reviewing                                                                  
22            causes, characteristics, and frequency of occurrence;                                                        
23 (B)  review the findings of the analysis to determine specific                                                          
24            programmatic or other root causes;                                                                           
25 (C)  determine the actions to be implemented that address the                                                           
26            root cause to prevent reoccurrence or to proceed with improvement;                                           
27 (D)  develop an implementation schedule for each action and                                                             
28            implement those actions in accordance with the schedule;                                                     
29 (E)  evaluate effectiveness of improvement action plans and                                                             
30            implementation;                                                                                              
31 (7)  ensure evaluation of the effectiveness of an improvement action                                                    

01       plan and assess improvements in operations and efficiencies; and                                                  
02                 (8)  provide for quarterly status reporting to the head of an agency and                                
03       annual status reporting from the governor to the legislature; quarterly and annual                                
04       status reports must include the following:                                                                        
05                      (A)  quantity of open items;                                                                       
06                      (B)  quantity of closed items;                                                                     
07                      (C)  aging of items approaching or beyond scheduled                                                
08            completion date;                                                                                             
09                      (D)  cost or benefit of items closed during the reporting period                                   
10            and fiscal year to date;                                                                                     
11 (E)  details of higher criticality items that have been closed                                                          
12            within the reporting period;                                                                                 
13 (F)  details of higher criticality items that have already extended                                                     
14            or are projected to extend beyond their original due date; and                                               
15 (G)  action plan for closure of higher criticality items that are                                                       
16            beyond their scheduled closure date.                                                                         
17 (d)  Each state agency shall publish the annual status report required under this                                       
18       section on a publicly available Internet website.                                                                 
19            (e)  In this section,                                                                                        
20 (1)  "improvement" means a systematic action taken to correct or                                                        
21       prevent defects;                                                                                                  
22 (2)  "state agency" means the University of Alaska and a department,                                                    
23 institution, board, commission, division, authority, public corporation, or other                                       
24       administrative unit of the executive branch.