Legislature(1993 - 1994)
04/12/1993 09:20 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 128 An Act relating to legislative audits. Co-chair Pearce directed that SB 128 be brought before committee, referenced the Senate State Affairs committee substitute for the bill, and noted the presence of Senator Phillips, the Legislative Auditor, and staff from the Office of Management and Budget. SENATOR RANDY PHILLIPS again came before committee. He explained that the bill was introduced at the request of the Legislative Budget and Audit Committee. It provides systematic follow-up procedures for recommendations made by the Legislative Auditor. In the past, when audits were conducted, there was no formal follow-up to ensure that recommendations for accounting or procedural improvements were effected. RANDY WELKER, Legislative Auditor, next came before committee. He explained that the legislation provides recognition that ultimate responsibility for implementation of audit recommendations rests with the administration. To enhance implementation, a structured follow-up processes is needed. The proposed bill would effect that process. It allows the Legislative Budget and Audit Committee to select which items warrant follow-up. It would then become OMB's responsibility to undertake follow-up on those items, resolve differences of opinion between the agency and the Legislative Audit Division, and report the status of the recommendations to LBA. Senator Rieger noted language indicating that the committee could direct the Office of Management and Budget to continue to monitor implementation. He then asked if the Legislative Budget and Audit Committee actually has that power. Mr. Welker explained that some audit recommendations may take time to implement. The foregoing language recognizes that "not everything can be satisfied in a one-year time . . . ." The Office of Management and Budget is thus to continue monitoring as the recommendation is implemented. Senator Rieger noted that direction from committee would not carry the force of law. Mr. Welker concurred. At the request of Co-chair Pearce, Mr. Welker provided a step-by-step description of action under various sections of the bill, using recommendations from the recent audit of the Division of Elections as an example. SHELBY STASTNY again came before committee accompanied by GARY ANDERSON, Director, Division of Audit and Management Services, Office of Management and Budget, came before committee. Mr. Anderson said that the bill presents difficulties for OMB. He explained that, on one hand, the office is sympathetic to legislative concerns. The problem is that the legislation requires the Office of Management and Budget to perform follow-up functions. OMB is approximately one-third the size of the Legislative Audit Division. Major resources would have to be devoted to the effort. The executive branch already performs follow-up on audits conducted by the administration. Mr. Anderson then suggested that Legislative Audit perform follow-up procedures for its audits as well. He noted that many audits are complex. For OMB to follow up on recommendations made by another branch of government would be difficult. OMB staff would need access to Legislative Audit work papers and have to develop an understanding of the recommendations to provide implementation oversight. That is not the most efficient or effective means of follow up. In his closing comments, Mr. Anderson expressed OMB willingness to work with Legislative Audit on oversight. Mr. Stastny concurred in remarks by Mr. Anderson. He said an even more overriding concern involves the issue of separation of powers. There is a reason for separation of legislative functions from those of the administration. Senator Phillips said he had not before been made aware of OMB concerns. Co-chair Pearce called for additional questions or testimony relating to the legislation. She then queried members on disposition of the bill. Senator Rieger MOVED, for the purpose of discussion, that SB 128 (STA) pass from committee. Co-chair Frank OBJECTED, seeking clarification of concerns relating to separation of powers. Senator Phillips said that he foresaw no territorial domain problems occasioned by the bill. He noted that the legislature establishes public policy, and the burden is upon the executive branch to execute that policy. End, SFC-93, #57, Side 2 Begin, SFC-93, #59, Side 1 Co-chair Frank WITHDREW his OBJECTION. CSSB 128 (STA) was REPORTED OUT of committee with a zero Senate State Affairs Committee fiscal note for the Office of the Governor/OMB. Co-chair Pearce and Senators Jacko, Rieger, Sharp, and Kerttula signed the committee report "no rec." Co-chair Frank signed "do pass." [NOTE - The foregoing action on CSSB 128 (STA) was rescinded 4/13/93. See committee minutes of 4/13/93 and 4/14/93]
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