Legislature(1997 - 1998)
04/30/1998 08:00 AM House BUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
Legislative Budget and Audit
April 30, 1998
8:00 a.m.
House Finance Committee Room
Capitol Building
Juneau, Alaska
Tape: LBA-983004 Tape 1 Side 1
CALL TO ORDER
Chairman Phillips convened the meeting of the Legislative Budget
and Audit Committee on April 30, 1998, at approximately 8:00 a.m.
in the House Finance Committee Room of the State Capitol, Juneau,
Alaska.
PRESENT
The following members were present:
Senators Representatives
Chairman Phillips Representative Martin
Senator Adams Representative Bunde
Senator Donley Representative James
Senator Halford
Senator Torgerson (alternate)
ALSO PRESENT
Pat Davidson, Chief Legislative Auditor; Mike Greany, Legislative
Fiscal Analyst
CONSIDERATION OF AUDITS, RELEASE OF SPECIAL AUDIT REQUESTS AND
PRELIMINARY AUDIT REQUESTS
Pat Davidson - The agenda for today's meeting from Legislative
Audit is to discuss the audit report of the Department of Natural
Resources Agricultural Revolving Loan Fund to go final and to
discuss a preliminary audit of the Department of Commerce and
Economic Development the Alaska Railroad Corporation Land
Appraisals and to give the Committee an interim briefing on our
audit of the Department of Commerce and Economic Development and
Department of Law related to the World Plus investment fraud.
I would recommend to the Committee that they consider going into
Executive Session to discuss audits.
Representative Martin MOVED to go into Executive Session
specifically for audits and other confidential matters.
Chairman Phillips - Hearing no objection, the motion was
APPROVED.
EXECUTIVE SESSION
Chairman Phillips re-convened the meeting to the public at 9:07
a.m.
Representative Martin MOVED to release to the public the special
audit on the Department of Natural Resources, Agricultural
Revolving Loan Fund, within 24 hours by 5:00 p.m. tomorrow (May
1); to release the audit on the Alaska Railroad Corporation and
ask them to get the response from the Railroad so it can be
included as it is released tomorrow automatically; to allow the
Department of Education Vocational Rehabilitation audit be
released immediately for its 9:00 a.m. meeting in the Senate
(urgency on that due to pending legislation); and to acceptance
of the special request of Senator Green of the Department of
Administration, Pioneer Homes, the special request of Senator
Duncan of the Department of Administration Central Duplication,
and the special request of Representative Hodgins, Department of
Revenue, Child Support Enforcement Division.
Pat Davidson - In Representative Hodgins' request, he asked that
the audit be finalized by December of 1998. In order to meet
that, it would have to displace other audits that have already
been requested. I have talked with the Representative's aide and
while he believes it is important to get it so that there can be
legislative action if necessary in the next session, he does
understand that it might not be possible. I would ask if the
Committee wants it with that specific deadline?
Representative Martin - I would recommend that we not honor that
date because once we start that policy then everyone will put a
date.
Chairman Phillips - I would suggest that we delete the last
sentence of his request.
Representative Martin AMENDED the motion to delete the last
sentence of Representative Hodgins' request for audit relating to
the due date.
Chairman Phillips - But with the intent that we will do our best
to meet that December 1998 deadline.
Chairman Phillips - Hearing no objection, the amended motion was
APPROVED.
Senator Halford MOVED that Budget and Audit request that the
Administration appoint a special prosecutor to investigate the
World Plus situation in cooperation with the Federal
investigators so they do not do any damage to the Federal
investigation, but with a particular look at State charges and
any action that can be taken to toll the statute of limitations
so State charges remain able to be prosecuted once we have the
interaction with Federal charges taken care of.
Chairman Phillips - Hearing no objection, the motion was
APPROVED.
Chairman Phillips asked Pat Davidson to draft a letter which
would be circulated around the members.
Senator Halford replied to the question that the letter should go
to the Governor's office.
Senator Pearce - Could you please go through your backlog of
audit requests and estimate the time it would take to catch up,
i.e., hours, days, weeks, months, whatever and estimate the man
power you would need. Let's say the legislature decided to give
you money to catch up, bring on contract people to get caught up
by January 1 or some set date.
Pat Davidson - I did a rough calculation estimating the number of
hours some of these audits would take and I calculated last month
that if we had no additional requests that we should be able to
get every audit that I have back to the Legislature by the first
of next session, excluding these. So everything that I have I
believe that I can give back. That still gives us a backlog on
these of eight to ten months, but I believe we are making
progress on that backlog.
Chairman Phillips - I believe you are sending out a progress
report on the audits to all members of the Legislature tomorrow
so each member of the Legislature knows where we are at as far as
our audits. Do we have close to 50?
Pat Davidson - Those that are active; those that are requested.
Senator Halford - When are we going to have another meeting with
regard to the Department of Military and Veterans Affairs'
question?
Chairman Phillips - I would think we should before the end of
session. Do you have concern on the timing?
Senator Halford - Two concerns. One I think his basic premise is
absolutely right. I am concerned right now with the internal
dispute going on in the Department of Military Affairs. Although
I don't necessarily want to get into the middle of that, I would
very much like to see someone come up with a recipe to revitalize
the Guard in Western Alaska. I think the question is a very good
one.
Chairman Phillips - Obviously, we will have a few more like these
requests. I suspect we will have a couple more before the end of
session and we will try to get all that taken care of before we
leave town. That way, we will get all those requests taken care
of before May 12.
ADJOURNMENT
Chairman Phillips adjourned the meeting at 9:10 a.m.
(End, LB&A-983004 Tape 1, Side 1, #378)
LB&A 4 04/30/98
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