Legislature(2021 - 2022)ANCH LIO DENALI Rm
09/06/2022 01:00 PM House LEGISLATIVE BUDGET & AUDIT
| Audio | Topic |
|---|---|
| Start | |
| Revised Program Legislative (rpl) | |
| Special Audit Request | |
| Executive Session | |
| State Medical Board (sunset) | |
| 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
September 6, 2022
1:02 p.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Chair
Representative Chris Tuck, Vice Chair
Senator Peter Micciche
Senator Lora Reinbold
Representative Ivy Spohnholz
Representative James Kaufman
Representative Dan Ortiz (alternate)
MEMBERS ABSENT
Senator Bert Stedman
Senator Lyman Hoffman
Representative Andy Josephson
Representative Neal Foster
Senator Click Bishop (alternate)
OTHER LEGISLATORS PRESENT
Representative Bryce Edgmon
Representative Sara Hannan
Senator Jesse Kiehl
Senator David Wilson
COMMITTEE CALENDAR
REVISED PROGRAM LEGISLATIVE (RPL)
SPECIAL AUDIT REQUEST
EXECUTIVE SESSION
STATE MEDICAL BOARD (SUNSET)
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ALEXEI PAINTER, Director
Legislative Finance Division
Legislative Agencies and Offices
Juneau, Alaska
POSITION STATEMENT: Presented the RPL and answered questions.
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Legislative Agencies and Offices
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on
the Special Audit Request.
ACTION NARRATIVE
1:02:57 PM
CHAIR NATASHA VON IMHOF called the Legislative Budget and Audit
Committee meeting to order at 1:02 p.m. Representatives
Spohnholz, Kaufman, Ortiz (Alternate; via teleconference),
Josephson, and Tuck and Senators Reinbold, Micciche (via
teleconference), and von Imhof were present at the call to
order. Also present were Representative Edgmon and Senators
Kiehl and Wilson (via teleconference.)
^Revised Program Legislative (RPL)
Revised Program Legislative (RPL)
1:03:46 PM
CHAIR VON IMHOF announced that the first order of business would
be Revised Program, Legislative (RPL).
1:04:22 PM
ALEXEI PAINTER, Director, Legislative Finance Division,
Legislative Agencies and Offices, introduced RPL 11-2023-035;
Pink Salmon Disaster - 2016 Gulf of Alaska; Statutory Designated
Program Receipts (1108) Capital; $1,000,000. He stated that the
RPL, if approved, would increase the appropriation that had been
established in fiscal year 2020 (FY 20). He explained that the
original capital budget had been in the amount of $3.63 million
and of which some unspent funds had been reallocated to research
projects and would include the requested $1 million. He noted
that funds had originated from statutory designated funds and
had passed through the National Marine Fisheries Service for
distribution by the Pacific States Marine Fisheries Commission
and could appear to be federal funds. He added that no match
requirement exists for the proposed funding and activities
should reach completion by the end of the year.
1:06:27 PM
REPRESENTATIVE TUCK moved that the Legislative Budget and Audit
Committee approve the following RPL:
#11-2023-035; Pink Salmon Disaster - 2016 Gulf of
Alaska; Statutory Designated Program Receipts (1108)
Capital; $1,000,000
There being no objection, the RPL was approved.
^Special Audit Request
-Special Audit Request
1:07:14 PM
CHAIR VON IMHOF announced that the next order of business would
be the Special Audit Request. She reminded the committee that
it had authorized a preliminary audit review of the Office of
Information Technology (OIT).
1:07:52 PM
REPRESENTATIVE SPOHNHOLZ said that communications had taken
place with OIT leadership, and that additional review of the
state's security was warranted. She referred to the Legislative
Budget and Audit Committee's November 21, 2021 meeting and
suggested that the committee put forth a motion with a clear
statement of intent to conduct a full audit, so that the
auditors have the necessary resources with which to proceed.
She explained that OIT had some successful execution of large-
scale capital projects and that a full review would be timely in
approximately the next two years. She recommended that the
committee authorize a full security audit as requested in a
memorandum that had been submitted to the chair's office.
1:10:33 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, stated that the disclosure to
the agency and authorization for a full audit would be necessary
to ensure that the auditors have full access to the areas of
review.
REPRESENTATIVE KAUFMAN asked for an explanation of what would
constitute a cost of $1 million to conduct the audit.
MS. CURTIS cautioned that the estimate had been made [as a
placeholder amount] and that actual costs would be determined
after development of the scope and identification of available
resources. She added that the expertise required to conduct a
security review would result in a procurement and that supply
and demand of such expertise would drive cost.
REPRESENTATIVE KAUFMAN asked whether the need for additional
resources would be needed to effectively develop the scope of
the procurement.
MS. CURTIS answered that the agency would be asked to provide
information and documentation and the auditors would proceed
according to the plan in the audit request.
SENATOR REINBOLD stated that she had become aware of complaints
regarding the vulnerability of the state's data security. She
encouraged the protection of citizen privacy in the context of
the audit. She asked what timeframe would be required to
complete the audit.
MS. CURTIS estimated that the audit would be completed within
approximately two years and that factors such as federal
funding, contractor availability, and available resources would
have an impact on the timeline.
CHAIR VON IMHOF asked for ongoing updates at future meetings on
the progress of the audit.
MS. CURTIS estimated that [a meaningful update] would be
available to the committee in early spring [2023].
1:16:33 PM
REPRESENTATIVE TUCK moved that the Legislative Budget and Audit
Committee approve the Special Audit Request for the Office of
Information Technology as presented.
1:16:57 PM
The committee took an at-ease from 1:16 to 1:18 p.m.
1:18:42 PM
REPRESENTATIVE TUCK moved that the Legislative Budget and Audit
Committee approve the special audit request of the Office of
Information Technology as presented, with the understanding that
this is a full audit and not a review. There being no
objection, the motion was approved.
^Executive Session
Executive Session
1:19:26 PM
CHAIR VON IMHOF announced that the final order of business would
be Executive Session for the purpose of the review and
consideration of the preliminary audit of the State Medical
Board (Sunset), the final FY 21 Statewide Single Audit, and the
Alaska CARES Act Special Audit.
REPRESENTATIVE TUCK moved that the Legislative Budget and Audit
Committee go into Executive Session under Uniform Rule 22(b)(3)
for the discussion of matters that may, by law, be required to
be confidential. He asked that the following persons remain in
the room or online: the legislative auditor and necessary staff
for the auditor, any legislators not on the committee, and staff
for legislators who are members of the committee, and House
Finance Committee staff.
There being no objection, it was so ordered.
1:20:21 PM
The committee took an at-ease from 1:20 to 2:48 p.m. for the
purpose of executive session.
2:48:38 PM
CHAIR VON IMHOF called the Legislative Budget and Audit
Committee meeting back to order at 2:48 p.m. Representatives
Spohnholz, Kaufman, and Ortiz (alternate, via teleconference)
and Senators Reinbold and von Imhof were present at the call
back to order. Also present were Representatives Hannan and
Edgmon (via teleconference), and Senators Wilson, Micciche, and
Kiehl (via teleconference).
^State Medical Board (Sunset)
State Medical Board (Sunset)
2:49:13 PM
REPRESENTATIVE KAUFMAN moved that the following Preliminary
Audit be released to the agencies for their formal comment:
State Medical Board Sunset. There being no objection, the
motion passed.
2:49:39 PM
REPRESENTATIVE KAUFMAN moved to release the FY 21 Statewide
Single Audit and the Alaska CARES Act Grants Special Audit as
final audit reports.
SENATOR REINBOLD objected and expressed her gratitude to the
committee and to the auditors. She expressed her concern that
accountability for individuals responsible for audit findings
may be lacking. She removed her objection.
CHAIR VON IMHOF sought any further objection and, there being
none, the motion passed.
2:50:55 PM
REPRESENTATIVE KAUFMAN stated that his office had prepared a
top-10 audit findings process section of language for inclusion
in the Legislative Budget and Audit handbook and encouraged
feedback from the committee.
2:52:02 PM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
2:52 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 9.06.22 LBA RPL Packet.pdf |
JBUD 9/6/2022 1:00:00 PM |
RPL 9.6.22 |
| renaming LBA IT Security Audit Request 7.19.22.pdf |
JBUD 9/6/2022 1:00:00 PM |
OIT Audit |
| 30105-LBA-IT-Security-Request-11.1.21.pdf |
JBUD 9/6/2022 1:00:00 PM |
OIT Review |