Legislature(2013 - 2014)ANCH LIO Rm 210
10/16/2013 09:00 AM Joint LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
|---|---|
| Start | |
| Approval of Minutes | |
| Revised Program - Legislative (rpls) | |
| Executive Session | |
| Other Committee Business | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
Anchorage, Alaska
October 16, 2013
9:04 a.m.
MEMBERS PRESENT
Senator Anna Fairclough, Chair
Representative Mike Hawker, Vice Chair
Senator Kevin Meyer (via teleconference)
Senator Click Bishop
Senator Cathy Giessel
Senator Donald Olson
MEMBERS ABSENT
Representative Alan Austerman
Representative Bob Herron
Representative Kurt Olson
Representative Andy Josephson
Senator Mike Dunleavy
Representative Scott Kawasaki
Representative Bill Stoltze
OTHER LEGISLATORS PRESENT
Representative Mike Chenault
Representative Eric Feige
COMMITTEE CALENDAR
APPROVAL OF MINUTES
REVISED PROGRAM - LEGISLATIVE (RPLS)
EXECUTIVE SESSION
OTHER COMMITTEE BUSINESS
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
LACEY SANDERS, Fiscal Analyst
Legislative Finance Division
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Reviewed RPL 18-4-0380, Department of
Environmental Conservation, Contaminated Sites Program and RPL
06-4-0241, Department of Health and Social Services, Alaska
Partnership Project.
KRISTIN RYAN, Director
Division of Spill Prevention and Response
Department of Environmental Conservation
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to RPL 18-4-
0380.
KRISTIN CURTIS
Legislative Auditor
Division of Legislative Audit
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on the performance
review audit request.
ACTION NARRATIVE
9:04:27 AM
CHAIR ANNA FAIRCLOUGH called the Legislative Budget and Audit
Committee meeting to order at 9:04 a.m. Senators Giessel,
Bishop, Olson, Meyer (via teleconference), and Fairclough and
Representative Hawker were present at the call to order.
^Approval of Minutes
Approval of Minutes
9:05:09 AM
REPRESENTATIVE HAWKER made a motion to approve the minutes of
August 22, 2013. There being no objection, the minutes from the
meeting of August 22, 2013, were approved.
^Revised Program - Legislative (RPLs)
Revised Program - Legislative (RPLs)
9:05:40 AM
CHAIR FAIRCLOUGH announced that the committee would now discuss
the two RPLs before it.
9:05:59 AM
LACEY SANDERS, Fiscal Analyst, Legislative Finance Division,
Legislative Affairs Agency, began with the Department of
Environmental Conservation (DEC) RPL 18-4-0380, which is a
request for $959,500 in federal receipt authority to issue
contracts for cleanup and oversight of cleanup activity of
military facilities, formerly used defense sites, and other
federally contaminated sites. The state must exercise
regulatory oversight over cleanup activities in order to ensure
compliance with state standards. The funds will come primarily
from the U.S. Department of Defense, U.S. Coast Guard, Federal
Aviation Administration, and the Bureau of Land Management
(BLM). She informed the committee that the military has cleanup
plans for Galena, Eielson Air Force Base, Fort Wainwright, and
the Joint Base Elmendorf-Richardson. This work requires no
general funds or response funds, but corresponding federal
receipt authority may be requested in the 2015 budget.
Furthermore, no new positions are required at this time. Ms.
Sanders reported that there are no technical issues with this
RPL, federal funds have already been awarded, and availability
of federal funds is not impacted by sequestration or the federal
shutdown.
9:07:35 AM
SENATOR GIESSEL requested confirmation that the funds were
appropriated prior to sequestration.
MS. SANDERS confirmed that is the understanding and noted the
DEC representative in attendance agrees with that understanding
as well.
9:07:59 AM
REPRESENTATIVE HAWKER inquired as to why funds that are largely
coming from U.S. Department of Defense agencies to cleanup U.S.
Department of Defense sites is passing through Alaska's DEC
rather than the U.S. Department of Defense dealing with the
[cleanup] directly.
9:08:34 AM
KRISTIN RYAN, Director, Division of Spill Prevention and
Response, Department of Environmental Conservation, explained
the funds are primarily used to hire contractors to perform
oversight of the cleanup. The federal agencies are performing
the cleanup.
9:09:03 AM
REPRESENTATIVE HAWKER asked whether the state has jurisdiction
and oversight over federal property.
MS. RYAN replied yes, and added that the federal government has
to comply with the state's cleanup rules and regulations. She
emphasized the importance of working with the federal government
in these cleanup projects because sometimes the state's
standards differ from those of the federal government.
9:09:48 AM
SENATOR BISHOP remarked that the state's 402 primacy might be
part of the equation in this situation.
9:10:03 AM
REPRESENTATIVE HAWKER inquired as to whether the BLM funds
involved in this cleanup are part of the funds the state hopes
will address the legacy fields on the North Slope.
MS. RYAN clarified that the funds are not those that the federal
government will use to clean up the sites on the North Slope but
rather are funds that provide the state the ability to oversee
that cleanup and pay contractors to review the plans to ensure
they are adequate.
9:10:41 AM
REPRESENTATIVE HAWKER moved to report RPL 18-4-0380 for the
Department of Environmental Conservation to receive $959,500 of
federal receipt authority. There being no objection, RPL 18-4-
0380 was approved.
9:11:07 AM
MS. SANDERS then turned to the Department of Health and Social
Services (DHSS), Division of Behavioral Health, RPL 06-4-0241,
Alaska Partnership, which requests $949,912 in federal
authorization for a multi-year grant with the Substance Abuse
and Mental Health Services Administration Center for Substance
Abuse Treatment (SAMHSA). These funds will be used to expand
the Parenting with Love and Limits (PLL) and the Transition to
Independence Process (TIP). The project will deliver treatment,
family therapy, and in-home services to adolescents and their
families. The target population is rural and Alaska Native
youth as well as youth at-risk of moving into treatment that is
more restrictive or out of their homes and communities. Ms.
Sanders informed the committee that about $950,000 of the
federal funds per year, with no match requirement, will be
available for four fiscal years, fiscal year (FY) 2014-FY 2017.
Behavioral Health Administration's component FY14 budget of $11
million includes $2.9 million in federal authorization. The
services for severely emotionally disturbed youth component
budget of $15.8 million has no federal authorization.
Therefore, this new multi-year federal award can't be absorbed
with an existing authorization. Ms. Sanders pointed out that
the RPL does have a minor technical issue since it addresses two
allocations rather than one. However, the issue should be
resolved because the language clearly specifies that the
Legislative Finance Division will create the following two
transactions: $904,000 in the Severely and Emotionally
Disturbed Youth allocation, $45,900 in the Behavioral Health
Administration allocation.
9:13:52 AM
REPRESENTATIVE HAWKER moved to report RPL 06-4-0241 for the
Department of Health and Social Services in the amount of
$959,912 in federal receipt authority. There being no
objection, RPL 06-4-0241 was approved.
^Executive Session
Executive Session
9:14:28 AM
CHAIR FAIRCLOUGH announced the committee would now proceed to
executive session in order to discuss confidential audit
reports.
9:14:31 AM
REPRESENTATIVE HAWKER made a motion that the committee under
Uniform Rule 22 go into executive session for the purpose of
discussing confidential audit reports under AS 24.20.301 and for
discussion of a confidential request for proposal.
The committee took a brief at-ease.
9:15:03 AM
REPRESENTATIVE HAWKER withdrew his prior motion. Representative
Hawker then made a motion for the committee under Uniform Rule
22 to move into executive session for the purpose of discussing
confidential audit reports under AS 24.20.301, a confidential
request for proposal, and the HB 30 performance review audit
scope of work. There being no objection, the committee went
into executive session at 9:16 a.m.
11:20:32 AM
CHAIR FAIRCLOUGH called the Legislative Budget and Audit
Committee back to order at 11:20 a.m. She noted that
Representatives Feige and Chenault joined the committee during
the executive session. She also noted that Senators Bishop,
Olson, Giessel, Meyer (via teleconference), and Fairclough and
Representative Hawker were in attendance.
11:21:05 AM
REPRESENTATIVE HAWKER made a motion for the following final
audits to be released to the public for response:
a) Department of Commerce, Community & Economic
Development, Regulatory Commission of Alaska, Sunset
Review;
b) Department of Commerce, Community & Economic
Development, Board of Chiropractic Examiners, Sunset
Review;
c) Department of Commerce, Community & Economic
Development, Board of Marital and Family Therapy,
Sunset Review;
d) Department of Commerce, Community & Economic
Development, Board of Optometry, Sunset Review;
e) Department of Commerce, Community & Economic
Development, State Physical Therapy and Occupational
Therapy Board, Sunset Review;
f) Department of Commerce, Community & Economic
Development, Board of Certified Real Estate
Appraisers, Sunset Review;
g) Department of Public Safety, Council on Domestic
Violence and Sexual Assault, Sunset Review;
h) Department of Health and Social Services, Alaska
Health Care Commission, Sunset Review;
i) Department of Natural Resources, Agriculture
Revolving Loan Fund, Select Issues.
There being no objection, the above-listed final audits were
released to the public for response.
REPRESENTATIVE HAWKER made a motion for the following
preliminary audits to be released to the appropriate agency for
response: Department of Administration, Alaska Land Mobile
Radio System; Department of Commerce, Community & Economic
Development, Alaska Seismic Hazards Safety Commission, Sunset
Review. There being no objection, the aforementioned
preliminary audits were released to the appropriate agency for
response.
^Other Committee Business
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.
11:37:24 AM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
11:37 a.m.
| 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 |