Legislature(2013 - 2014)ANCH LIO Rm 210

10/16/2013 09:00 AM LEGISLATIVE BUDGET & AUDIT

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Audio Topic
09:04:27 AM Start
09:05:09 AM Approval of Minutes
09:05:40 AM Revised Program - Legislative (rpls)
09:14:28 AM Executive Session
11:22:58 AM Other Committee Business
11:37:24 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Approval of Minutes TELECONFERENCED
RPLs
DEC - Contaminated Sites Program
DHSS - Alaska Parntership Project
Executive Session
Audits
Other Committee Business
Consideration of Performance Review Contract
Revised Committee Handbook Procedures
Juneau Teleconference Site - Beltz Rm 105 (TSLOB)
This meeting will be streamed on akl.tv
                    Other Committee Business                                                                                
                                                                                                                                
11:22:58 AM                                                                                                                   
                                                                                                                                
[Contains discussion of HB 30.]                                                                                                 
                                                                                                                                
CHAIR FAIRCLOUGH  announced that the committee  would now discuss                                                               
the  consideration  of  the Performance  Review  Contract.    She                                                               
reminded  the  committee  that she  had  previously  appointed  a                                                               
subcommittee   consisting   of   herself,  Senator   Bishop   and                                                               
Representatives  Hawker,  Herron, and  Kawasaki  to  work on  the                                                               
scope of work for the contract.   The subcommittee held a lengthy                                                               
meeting on October 1, 2013, to  discuss the scope of work for the                                                               
contract;  Representatives  Olson  and  Josephson  were  also  in                                                               
attendance at the subcommittee meeting.   Chair Fairclough opined                                                               
that the  subcommittee settled  on a  thorough and  balanced work                                                               
product, which Ms. Curtis will explain.                                                                                         
                                                                                                                                
11:23:35 AM                                                                                                                   
                                                                                                                                
KRISTIN  CURTIS,  Legislative  Auditor, Division  of  Legislative                                                               
Audit, Alaska  State Legislature, explained the  division intends                                                               
to  request approval  to  solicit  and award  a  contract not  to                                                               
exceed  $300,000   to  conduct  the  Department   of  Corrections                                                               
performance  review.   The contractor  will lead  the performance                                                               
review  team,  which  will  also   be  made  up  of  Division  of                                                               
Legislative  Audit employees.   She  reminded the  committee that                                                               
performance  reviews of  state departments  were authorized  this                                                               
past session and  will begin with the  Department of Corrections.                                                               
During the course of the  review, the department will be required                                                               
to provide a  list of programs or elements  of programs supported                                                               
by general  funds that can  be cut without impacting  the ability                                                               
of  the department  to  fulfill its  mission  or reduce  required                                                               
services to the public.  A  review team lead by a contractor will                                                               
conduct   a  systematic   assessment   of  the   appropriateness,                                                               
effectiveness,  and   efficiency  of   the  department   and  its                                                               
programs.    The  review,  she   related,  is  meant  to  provide                                                               
information that can improve the  entity's performance and assist                                                               
legislators in evaluating the department  and its budget.  One of                                                               
the  first  steps  in  the  performance  review  process  is  the                                                               
Legislative  Budget  and   Audit  Committee's  consideration  and                                                               
approval of the  performance review scope.  She  explained that a                                                               
scope describes the nature and expense  of the work that needs to                                                               
be  done  in order  to  complete  the  review.   The  scope  this                                                               
committee approves  will serve as  the basis for the  request for                                                               
proposal for the  contractor.  Once the  contractor completes the                                                               
review  a report  is prepared  and submitted  to the  Division of                                                               
Legislative  Audit  and then  the  Legislative  Budget and  Audit                                                               
Committee.   The  Department of  Corrections' performance  review                                                               
report must be  sent to this committee by December  16, 2014, and                                                               
is required  to be confidential  until finalized and  released by                                                               
the committee.   Statutes  require that copies  of the  report be                                                               
sent to the chairs and co-chairs  of the House and Senate Finance                                                               
Committees one week prior to the legislative session beginning.                                                                 
                                                                                                                                
11:25:49 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HAWKER  moved  that  the  committee  approve  the                                                               
performance review  scope of work  as presented.  There  being no                                                               
objection, it was approved.                                                                                                     
                                                                                                                                
11:26:11 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HAWKER moved  that  the  committee authorize  the                                                               
legislative  auditor   to  solicit  and  award   a  contract  for                                                               
performance review services in an  amount not to exceed $300,000.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
11:26:31 AM                                                                                                                   
                                                                                                                                
CHAIR FAIRCLOUGH announced that  the committee would now consider                                                               
the revised committee handbook procedure.                                                                                       
                                                                                                                                
11:26:36 AM                                                                                                                   
                                                                                                                                
MS.  CURTIS  informed  the  committee that  the  changes  in  the                                                               
committee handbook  were necessitated by the  performance reviews                                                               
of HB  30.  The  new statutes created by  HB 30 were  inserted in                                                               
the  committee handbook.   The  revised  committee handbook  also                                                               
includes revised  procedures, which were modeled  after the audit                                                               
procedures.  The  bulk of the new procedures begin  on page 41 of                                                               
the committee handbook.                                                                                                         
                                                                                                                                
11:29:22 AM                                                                                                                   
                                                                                                                                
CHAIR  FAIRCLOUGH mentioned  her  appreciation  of the  proactive                                                               
approach  the  division  has  taken  in  terms  of  revising  the                                                               
committee handbook.                                                                                                             
                                                                                                                                
11:29:44 AM                                                                                                                   
                                                                                                                                
SENATOR OLSON asked from where the bulk of these changes come.                                                                  
                                                                                                                                
MS.  CURTIS  explained  that she  contracted  with  the  previous                                                               
legislative auditor  to draft the  changes, which  originate from                                                               
HB 30.     The new procedures  were modeled in  terms of  how the                                                               
audits  work,  which  she  recalled  was the  intent  of  HB  30.                                                               
Therefore, there  are specifications  relating to the  release of                                                               
the audit,  the number of days  in which the agency  can respond,                                                               
the  number of  times  it  comes before  the  committee, and  the                                                               
confidentiality of the work papers.                                                                                             
                                                                                                                                
11:30:36 AM                                                                                                                   
                                                                                                                                
SENATOR  MEYER  said   he  had  no  concerns   with  Ms.  Curtis'                                                               
recommendations.    However,  he mentioned  the  backlog  of  the                                                               
Division  of Legislative  Audit and  inquired as  to the  current                                                               
size of it.                                                                                                                     
                                                                                                                                
MS. CURTIS answered that the  division's current backlog consists                                                               
of three special audits and four sunset audits coming next year.                                                                
                                                                                                                                
SENATOR MEYER then inquired as to  how long it would take a newly                                                               
requested audit to be completed.                                                                                                
                                                                                                                                
MS. CURTIS  opined that  no new audits  would be  considered next                                                               
year but rather they would be considered the year after.                                                                        
                                                                                                                                
CHAIR FAIRCLOUGH related her  understanding that completion dates                                                               
would be a full year out.                                                                                                       
                                                                                                                                
11:33:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HAWKER   moved  that  the  updated   and  revised                                                               
Legislative Budget  and Audit Committee  handbook as  provided to                                                               
the  committee  today  be  adopted  as  the  currently  effective                                                               
committee  handbook. There  being no  objection, the  updated and                                                               
revised  Legislative  Budget  and Audit  Committee  handbook  was                                                               
adopted.                                                                                                                        
                                                                                                                                
11:33:34 AM                                                                                                                   
                                                                                                                                
CHAIR FAIRCLOUGH  announced the appointment of  a subcommittee on                                                               
occupational licensing and boards, which  would hold a meeting in                                                               
January for the  full committee to attend.  She  appointed to the                                                               
subcommittee the following members:   Senators Fairclough, chair,                                                               
Giessel  and Representatives  Hawker,  Austerman, and  Josephson.                                                               
There being no objection, the subcommittee was formed.                                                                          
                                                                                                                                
11:35:18 AM                                                                                                                   
                                                                                                                                
CHAIR FAIRCLOUGH thanked Laura  Pierre, Staff, Legislative Budget                                                               
and  Audit Committee,  for  her work  in  bringing the  committee                                                               
together and  keeping the  meeting organized.   She  also thanked                                                               
Ms. Curtis  and her staff  for their work  as auditing is  not an                                                               
easy  job,   particularly  when   working  in  less   than  ideal                                                               
surroundings during their office renovation.                                                                                    
                                                                                                                                
MS. CURTIS highlighted  the dedication of her  staff, noting that                                                               
performing nine  sunsets in one  year is an incredible  amount of                                                               
work along with two special audits.                                                                                             

Document Name Date/Time Subjects
LB&A Agenda 10.16.13.pdf JBUD 10/16/2013 9:00:00 AM
2013-10-16_RPLCompletedPacket.pdf JBUD 10/16/2013 9:00:00 AM