Legislature(2013 - 2014)ANCH LIO Rm 220
08/22/2013 01:30 PM LEGISLATIVE BUDGET & AUDIT
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|Approval of Minutes|
|Revised Program - Legislative (rpls)|
|Release of Audits|
|Other Committee Business|
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
[Contains discussion of HB 30.] 3:42:30 PM CHAIR FAIRCLOUGH turned the committee's attention to the Subcommittee on Performance Review, which is necessary due to the work the Legislative Budget and Audit Committee was tasked with as a result of HB 30. She inquired as to what the subcommittee might do. 3:43:02 PM MS. CURTIS explained that HB 30 requires performance reviews of every state department over a 10-year span of time. The first performance review is the Department of Corrections (DOC) and it's already behind schedule. The Subcommittee on Performance Review is tasked with approving the scope of the review, which must occur prior to a request for proposals (RFP) for experts to lead the review team. Therefore, some form of structure is necessary in order to review the proposed scope, which will be the main purpose of the subcommittee. Also, the Legislative Budget and Audit Committee handbook must be amended in order to establish formal procedures related to how to conduct these reviews, including the report process. Currently, the division is in the process of drafting - with the assistance of the prior legislative auditor - the formal procedures for HB 30. Over the next month, she explained, that the draft scope and procedures need to be reviewed in order to take them up at the next meeting in October. Upon completion of the aforementioned, the division hopes to put out an RFP enabling the review team to be in place and working by the beginning of the next year. She explained that [the subcommittee] needs to have its reports drafted by September and released in December since the reports have to be provided to the chairs of the House and Senate Finance Committees a week or two prior to the beginning of session. The hope is to establish a process by which the division can perform the work, which is all new work, and start earlier for the next department. 3:45:38 PM REPRESENTATIVE AUSTERMAN inquired as to how Ms. Curtis prioritizes the audits. He further inquired as to whether [the division] is mandated by regulation or statute. MS. CURTIS related her approach that audits and HB 30 are separate and different matters because HB 30 reviews aren't audits, aren't connected to standards, and won't use auditing staff. The division has hired an individual who will lead this process and with whom Ms. Curtis will work to draft the scope. With regard to prioritizing, Ms. Curtis pointed out that the statue drives and guides all of the division's work. On the audit side, the Comprehensive Annual Financial Report (CAFR) that needs to be audited with an opinion out by December 15. Therefore, the CAFR is the priority. She informed the committee that there is a federal requirement for a single audit by the end of March and then the sunset audits are statutorily required to be complete. When the division has resources it performs special audit requests, which she characterized as the lowest on the priority list. She pointed out that HB 30 is statutorily driven in terms of the timeline. REPRESENTATIVE AUSTERMAN recalled a presentation by New Mexico regarding its audit system at the recent Council of State Governments (CSG). The New Mexico [audit system] focused more on the savings in dollars for the state. He expressed interest in having such a conversation at the upcoming October meeting. Representative Austerman expressed his concern with underfunding the Division of Audit because of the requirements in place. 3:49:35 PM CHAIR FAIRCLOUGH appointed the following members to the Subcommittee on Performance Review: Senator Fairclough, Senator Bishop, Representative Hawker, Representative Herron, and Representative Kawasaki. Upon a poll she determined the willingness of the appointed members to the subcommittee in attendance, and noted she had also spoken with Representative Hawker who is willing to serve as well. She then informed the committee that the release of documents for review will occur at the October meeting. There was then discussion regarding the date of the next meeting.