Legislature(2001 - 2002)
02/28/2001 12:50 PM Senate BUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT
February 28, 2001
12:50 p.m.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Randy Phillips
Senator Jerry Ward
Senator Dave Donley
Senator Gary Wilken, alternate
Representative Hugh Fate, Vice Chair
Representative Eldon Mulder
Representative Ken Lancaster
Representative Reggie Joule
MEMBERS ABSENT
Senator Lyman Hoffman
Representative John Harris
Representative William Williams, alternate
Representative John Davies, alternate
COMMITTEE CALENDAR
Approval of Minutes
Executive Session
Audit Reports
Other Committee Business
WITNESS REGISTER
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
333 Willoughby Avenue
Post Office Box 113300
Juneau, Alaska 99811-3300
POSITION STATEMENT: Spoke on behalf of the Division of
Legislative Audit.
ELMER LINDSTROM, Special Assistant
Office of the Commissioner
Department of Health & Social Services
Post Office Box 110601
Juneau, Alaska 99811-0601
POSITION STATEMENT: Presented proposed legislation by the
Department of Health & Social Services.
ACTION NARRATIVE
TAPE 01-02, SIDE A
Number 001
CHAIR THERRIAULT called the Joint Committee on the Legislative
Budget and Audit meeting to order at 12:50 p.m. Present at the
call to order were Senators Ward, Wilken, Therriault, and
Representatives Joule, Lancaster, Mulder and Fate. Senators
Donley and Phillips arrived after the call to order.
CHAIR THERRIAULT stated that there would be a short itinerary
for today's meeting. He apologized for the late start of the
meeting.
APPROVAL OF MINUTES
CHAIR THERRIAULT indicated the first order of business would be
the approval of minutes from the Legislative Budget and Audit
meeting held on January 24, 2001.
Number 0116
VICE CHAIR FATE made a motion to approve the minutes from the
January 24, 2001 meeting.
CHAIR THERRIAULT asked whether there were any objections. There
being none, the minutes from the January 24, 2001 meeting were
approved as read.
EXECUTIVE SESSION
Number 0139
VICE CHAIR FATE made a motion to move to executive session for
the purpose of discussing confidential audit reports under
Alaska Statute 24.23.01. There being no objection, the
committee went into executive session at 12:52 p.m.
CHAIR THERRIAULT made a motion to move back into regular
session. There being no objection, the committee reconvened
regular session at approximately 1:04 p.m.
AUDIT REPORTS
Number 0200
VICE CHAIR FATE made a motion to release the following
preliminary audits to the agencies for response: Department of
Education and Early Development, Alaska Commission on Post
Secondary Education, ACPE/WWAMI; Department of Community and
Economic Development/Grants to Deltana Community Corporation;
and Department of Public Safety/Batterer Intervention Programs.
There being no objection, those preliminary audits were released
to the departments for review.
Number 0224
VICE CHAIR FATE made a motion to release the following final
audit report to the public: Department of Corrections, Board of
Parole Sunset Review. There being no objection, this audit was
released to the public.
CHAIR THERRIAULT mentioned that the Senate Judiciary Standing
Committee would probably be taking up that audit extension soon.
OTHER COMMITTEE BUSINESS
CHAIR THERRIAULT commented that there was concern regarding
informal memos that some committee members received from the
auditor when they requested information and it fell short of
requiring a formalized audit.
Number 0271
PAT DAVIDSON, Legislative Auditor, Alaska Division of
Legislative Audit, explained that the Division of Legislative
Audit has instituted a standard introduction in memorandums.
This introduction identifies that this [request of information]
is a result of a limited review. There will be a specific
statement that states it is not an audit. She said that a copy
of the memorandum would be sent to the requestor, chair of the
Joint Committee on Legislative Budget and Audit, and the
relevant agency. The memorandum also states that the agency
should consider responding directly to the requestor. She
mentioned that she receives a lot of information requests, of
which many relate only to information from the accounting
system. The above procedures would only pertain to those
requests that contain an evaluation component.
CHAIR THERRIAULT requested that committee members who receive
memos be more sensitive in the audit process. He said "we don't
want to drag our auditors into headlines in the paper if an
audit hasn't been done." There is a formalized process in which
the agency gets to respond. He said he did not want to
discourage these quick responses because they are useful. He
went on to say, "It's not portrayed as an audit because its
not."
CHAIR THERRIAULT indicated the next item of business pertained
to the Division of Legislative Audit's existing operating
budget. The division would like to use additional money to
purchase computer equipment.
Number 0405
MS. DAVIDSON confirmed this statement. Legislative procurement
requires committee approval for any expenditure over $25,000.
The division is interested in replacing 26 computer
workstations, with a total cost of under $40,000. The existing
budget contains funds for this expenditure. The division has
looked into replacing the computers by streaming them in.
However, the division has a "good contract award" with Compaq
for a bulk purchase. She asked the Joint Committee on
Legislative Budget and Audit's support for this request.
CHAIR THERRIAULT stated that since the expenditure is in excess
of $25,000, committee approval is required. This would give the
division authorization to sign off on the appropriation. He
asked if there was any objection to this request.
VICE CHAIR FATE made a motion [to approve the Division of
Legislative Audit to purchase computer equipment for an amount
not to exceed $39,300].
SENATOR WILKEN asked Ms. Davidson for a list of vendors who were
contacted and their respected bids.
MS. DAVIDSON said this information is mostly from an on-line
search, but she would obtain it.
SENATOR WILKEN remarked that he would be voting no on the
motion. He said that one of his constituents has had difficulty
in having the state recognize him as a vendor for computers.
Therefore, instead of holding up this motion, he will be voting
no. But, he is fully supportive of [the Legislative Audit
Division] upgrading its equipment. He then said, "I'll make
sure that he [constituent] was treated in the appropriate manner
in this deal."
A roll call vote was taken. Senators Donley, Phillips, Ward,
Therriault and Representatives Joule, Lancaster, Mulder, and
Fate voted in favor of this motion. Senator Wilken, alternate
voted against it. Therefore, the motion does pass.
Number 0616
CHAIR THERRIAULT stated that the final item to be discussed
dealt with finished audits and confidentiality.
MS. DAVIDSON explained that the recently released report on the
Department of Health and Social Services, Divisions of Mental
Health and Developmental Disabilities and Medical Assistance,
Community Mental Health Center Programs, Follow-Up Report,
showed that a continuing problem is the department's inability
to collect client information and services being provided for
state funded services. She said that Medicaid funded services
get the information, but state funded grants in these programs,
are not receiving the client data. In essence, "they" will not
be able to be accountable for this program until they can get
client data. She pointed out that this specific recommendation
is addressed in the report.
CHAIR THERRIAULT explained that he brought this forward due to
audits that indicate there should be some consideration of a
policy by the legislature. He said that the Joint Committee on
Legislative Budget and Audit should consider whether "we" want
to have a LB&A [Legislative Budget & Audit] bill introduced.
This would allow the item to at least be brought before the
legislature and its committees for "possible policy call."
Number 0712
ELMER LINDSTROM, Special Assistant, Office of the Commissioner,
Department of Health & Social Services, stated that he agrees
with the legislative auditor's [Pat Davidson] statement. After
having worked with them on several audits on this subject, a
potential bill was drafted for introduction, ["An Act relating
to release of, notification of, and access to certain mental
health information and records; and providing for an effective
date," located in committee packet].
MR. LINDSTROM said, "We would be very pleased to support the
legislation should the committee introduce it."
CHAIR THERRIAULT asked why the administration wasn't introducing
this legislation.
MR. LINDSTROM replied that he did not know. However, this is
not unusual. He said he has a number of bills that "they" chose
not to put forward and for which he has been seeking sponsors.
He stated that this legislation is an accountability bill.
Therefore, the Joint Committee on Legislative Budget and Audit
would be an obvious sponsor of the bill. At the same time, the
administration would be supporting the legislation.
Number 0807
SENATOR PHILLIPS asked if Governor Tony Knowles "promises not to
veto this bill."
MR. LINDSTROM replied that he would "never speak for the
governor but I have no reason to believe that would ever be
considered in this instance."
CHAIR THERRIAULT asked if this bill is [sponsored by the
Legislative Budget & Audit Committee], if the department [of
Health & Social Services] is prepared to back it up with the
research and testimony that would be needed.
MR. LINDSTROM confirmed this statement.
Number 0870
CHAIR THERRIAULT asked if there were any objections to the Joint
Committee on Legislative Budget and Audit sponsoring the
proposed legislation. There being no objection, this motion was
approved.
ADJOURNMENT
Number 0890
There being no further business before the committee, the
Legislative Budget & Audit Committee meeting was adjourned at
1:17 p.m.
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