04/06/1994 09:07 AM Senate STA

 CHAIRMAN LEMAN brings up SB 357 (REQUIRED REPORTS OF STATE                    
 AGENCIES) as the first order of business before the Senate State              
 Affairs Committee today.  The chairman asks why, under section 13             
 of SB 357, would it be desirable to shift the reports two months.             
 He has heard that it is recommended practice by a national                    
 organization of auditors that audits be performed within six months           
 of the end of a fiscal year.  His initial reaction to shifting                
 reports two months is that it is not an appropriate action.                   
                                                                               
 Number 030                                                                    
                                                                               
 LINDA REXWINKEL, Budget Analyst, Office of Management & Budget                
 (OMB) introduces Ms. Barton, and says Ms. Barton will answer                  
 questions on that particular section.                                         
                                                                               
 Number 035                                                                    
                                                                               
 SHARON BARTON, Director, Division of Administrative Services,                 
 Department of Administration (DOA) states some of the reports                 
 needed from other state agencies are not available until October.             
 Therefore, the DOA is unable to meet the October 16 deadline.                 
                                                                               
 CHAIRMAN LEMAN asks if a deadline of December 16 is needed, or if             
 a deadline in November would be acceptable.  Why is two months                
 needed?                                                                       
                                                                               
 MS. BARTON responds that, as the chairman is aware, DOA was even              
 later in getting out the report this year due to staffing                     
 requirements.  The combination of the lateness of reports from                
 other state agencies to DOA and the staffing levels within the                
 Division of Finance require at least two months to prepare the                
 report.                                                                       
                                                                               
 Number 057                                                                    
                                                                               
 CHAIRMAN LEMAN asks Ms. Barton what her projection is for reports             
 becoming available.                                                           
                                                                               
 Number 061                                                                    
                                                                               
 MS. BARTON replies it would be sometime after December 16, but she            
 cannot answer as to a definite time.                                          
                                                                               
 Number 065                                                                    
                                                                               
 MS. REXWINKEL adds the audits are done for the previous fiscal                
 year, so they are actually a year behind.  The current year's audit           
 is not done within that period of time.  What is in this report is            
 merely the financial statement from the Division of Finance.  These           
 are not the audited statements that originate from Legislative                
 Audit.                                                                        
                                                                               
 Number 085                                                                    
                                                                               
 CHAIRMAN LEMAN states he was told by the commissioner of the                  
 Department of Revenue that it was the policy guideline of a                   
 national organization of auditors, that audits be completed within            
 six months of the end of a fiscal year.  He wonders if that is                
 something that should be important to the State of Alaska.                    
 Number 097                                                                    
                                                                               
 MS. REXWINKEL responds, as she understands it, one of the concerns            
 the Department of Revenue has relates to the bond underwriters.               
 The underwriters review those financial statements in underwriting            
 and rating the State of Alaska for bond issues.  So the timeliness            
 of those reports is of concern to them.                                       
                                                                               
 Number 102                                                                    
                                                                               
 MS. BARTON adds that the situation is that, in order for the                  
 state's annual financial report to comply with government                     
 accounting standards, the state must have previously audited                  
 reports going into that annual financial report.  Those previously            
 audited reports are not available, particularly on federal                    
 programs, until after October 16.  So if the state proceeds with              
 the October 16 deadline, the state would not be using materials to            
 compile the annual report that comply with GASBY (?) requirements.            
                                                                               
 Number 125                                                                    
                                                                               
 CHAIRMAN LEMAN asks if there are further questions or if anyone               
 else wishes to testify on SB 357.  Hearing none, the chairman asks            
 the pleasure of the committee.                                                
                                                                               
 Number 127                                                                    
                                                                               
 SENATOR MILLER makes a motion to discharge SB 357 from the Senate             
 State Affairs Committee with individual recommendations.                      
                                                                               
 Number 129                                                                    
                                                                               
 CHAIRMAN LEMAN, hearing no objection, orders SB 357 released from             
 committee with individual recommendations.