Legislature(2001 - 2002)

05/10/2002 06:20 PM Senate BUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
        JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT                                                                       
                          May 10, 2002                                                                                          
                           6:20 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Randy Phillips                                                                                                          
Senator Gene Therriault, Chair                                                                                                  
                                                                                                                                
Representative Hugh Fate, Vice Chair                                                                                            
Representative Eldon Mulder                                                                                                     
Representative John Harris                                                                                                      
Representative Ken Lancaster                                                                                                    
Representative William K. "Bill" Williams                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Jerry Ward                                                                                                              
Senator Lyman Hoffman                                                                                                           
Senator Dave Donley                                                                                                             
Senator Gary Wilken, alternate                                                                                                  
                                                                                                                                
Representative Reggie Joule                                                                                                     
Representative John Davies, alternate                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EXECUTIVE SESSION                                                                                                               
AUDIT REPORTS                                                                                                                   
OTHER COMMITTEE BUSINESS                                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
PAT DAVIDSON, Legislative Auditor                                                                                               
Division of Legislative Audit                                                                                                   
Alaska State Legislature                                                                                                        
333 Willoughby Avenue                                                                                                           
PO Box 113300                                                                                                                   
Juneau, Alaska  99811-3300                                                                                                      
POSITION STATEMENT:  Spoke on behalf of the Division of                                                                         
Legislative Audit.                                                                                                              
                                                                                                                                
HEATHER BRAKES, Staff                                                                                                           
to Senator Gene Therriault                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 121                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   As  committee aide,  testified on  an audit                                                               
request   made  by   Representative  Joe   Green,  Alaska   State                                                               
Legislature.                                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-4, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIR GENE  THERRIAULT called the Joint  Committee on Legislative                                                               
Budget and  Audit at 6:20  p.m.  Members  present at the  call to                                                               
order were  Representatives Fate, Mulder, Harris,  Lancaster, and                                                               
Williams, and Senators Phillips and Therriault.                                                                                 
                                                                                                                                
EXECUTIVE SESSION                                                                                                             
                                                                                                                                
Number 0046                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE  made a motion  to move to  executive session                                                               
for the  purpose of discussing  confidential audit  reports under                                                               
AS 24.20.301.  There being  no objection, the committee went into                                                               
executive session at 6:21 p.m.                                                                                                  
                                                                                                                                
CHAIR  THERRIAULT brought  the committee  back to  order at  6:40                                                               
p.m.                                                                                                                            
                                                                                                                                
[The committee went back into regular session.]                                                                                 
                                                                                                                                
AUDIT REPORTS                                                                                                                 
                                                                                                                              
Number 0120                                                                                                                   
                                                                                                                                
REPRESENTATIVE FATE made a motion  to release the final audit for                                                               
the  Department of  Labor  and  Workforce Development,  Northstar                                                               
Unit  Alaskan-Hire and  Contracting.   There being  no objection,                                                               
the final audit was released to the public.                                                                                     
                                                                                                                                
Number 0142                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  made  a motion  to  release  the  following                                                               
preliminary audits to the agencies  for response:  the Department                                                               
of   Transportation   and    Public   Facilities,   Ted   Stevens                                                               
International Airport  Terminal Improvements; and  the Department                                                               
of   Transportation   and    Public   Facilities,   Ted   Stevens                                                               
International Airport Seismic Design Dispute.                                                                                   
                                                                                                                                
Number 0200                                                                                                                     
                                                                                                                                
PAT  DAVIDSON,  Legislative   Auditor,  Division  of  Legislative                                                               
Audit, Alaska  State Legislature,  suggested the  committee might                                                               
want  to  authorize the  division  to  release  a report  on  the                                                               
seismic dispute  to the  Municipality of  Anchorage in  order for                                                               
the division  to get the  municipality's input  for incorporation                                                               
into the audit.                                                                                                                 
                                                                                                                                
Number 0223                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE also  moved to  release [the  audit for  the                                                               
Department of  Transportation and Public Facilities,  Ted Stevens                                                               
International   Airport   Seismic    Design   Dispute,   to   the                                                               
Municipality of Anchorage].                                                                                                     
                                                                                                                                
Number 0237                                                                                                                     
                                                                                                                                
CHAIR THERRIAULT asked  if there was objection  to either motion.                                                               
There  being no  objection,  the audits  were  released to  their                                                               
respective entities.                                                                                                            
                                                                                                                                
CHAIR THERRIAULT said the committee  had a large number of audits                                                               
to approve.   He asked if  all of the requests  required an audit                                                               
instead of other means.                                                                                                         
                                                                                                                                
MS. DAVIDSON said she could  not make a preliminary assessment on                                                               
the scope  or time required  for the request  from Representative                                                               
Green concerning  the Department  of Natural  Resources, Division                                                               
of Forestry.                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT asked if she was  confident that it could not be                                                               
handled quickly.                                                                                                                
                                                                                                                                
MS.  DAVIDSON said  the last  sentence of  the request  makes her                                                               
pause.   She  quoted  it  as saying,  "There  is some  additional                                                               
information regarding  this issue that  I'd like to  discuss with                                                               
you in more detail."  She said  she did not know where that would                                                               
go.                                                                                                                             
                                                                                                                                
CHAIR  THERRIAULT asked  Heather  Brakes  about her  conversation                                                               
[with  the  staff in  Representative  Green's  office] about  the                                                               
sentence Ms. Davidson had mentioned.                                                                                            
                                                                                                                                
Number 0460                                                                                                                     
                                                                                                                                
                                                                                                                                
HEATHER BRAKES,  Staff to Senator  Gene Therriault,  Alaska State                                                               
Legislature,  speaking  as  the  committee  aide  for  the  Joint                                                               
Committee on  Legislative Budget and Audit,  said they understood                                                               
it might not be approved.                                                                                                       
                                                                                                                                
Number 0500                                                                                                                     
                                                                                                                                
SENATOR PHILLIPS  asked approximately how many  audits there were                                                               
for the committee to deal with.                                                                                                 
                                                                                                                                
MS.  DAVIDSON  told  the  committee  there  wasn't  an  extensive                                                               
backlog.  The audits that  have been requested are significant in                                                               
size, however.   She gave  the examples  of a Medicaid  audit and                                                               
two  for Division  of Family  and Youth  Services, among  others.                                                               
She  also said  the state  has adopted  new accounting  standards                                                               
that would increase the workload for the division.                                                                              
                                                                                                                                
SENATOR PHILLIPS asked if the  Medicaid audit is "a program audit                                                               
or a number-crunching audit."                                                                                                   
                                                                                                                                
MS.  DAVIDSON  said it  is  a  little of  both.    It asks  about                                                               
internal  controls,  but  also  gets  down  to  cost  containment                                                               
issues.                                                                                                                         
                                                                                                                                
SENATOR PHILLIPS reminded Ms. Davidson  that there is $200,000 in                                                               
the current budget for  a "Medicaid socioeconomic-whatever study"                                                               
and suggested  she might want to  "tie that in with  that, rather                                                               
than operate in a vacuum."                                                                                                      
                                                                                                                                
CHAIR  THERRIAULT stated  that he  would  prefer to  hold off  on                                                               
Representative  Green's  audit request  until  there  is time  to                                                               
discuss it  more.  He asked  Ms. Davidson how she  determines the                                                               
order in which to take up audits when she has several.                                                                          
                                                                                                                                
Number 0820                                                                                                                     
                                                                                                                                
MS. DAVIDSON told the committee she  looks to see where the audit                                                               
needs to  be conducted - statutory  audits come first -  and then                                                               
determines  what office  will perform  the audit.   She  said she                                                               
tries to match the proper auditor with the particular audit.                                                                    
                                                                                                                                
Number 0958                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE   moved  that  the  committee   approve  the                                                               
following audit requests:   Departments of Administration, Public                                                               
Safety, and  Military and Veterans'  Affairs, Alaska  Land Mobile                                                               
Radio   Project;   Department   of   [Community]   and   Economic                                                               
Development, Commercial  Fishing Revolving Loan  Fund; Department                                                               
of  Health and  Social  Services, Division  of  Alcohol and  Drug                                                               
Abuse;   Department   of   Corrections,   Administration   Hiring                                                               
Discrimination;   and  Department   of  Community   and  Economic                                                               
Development, Game Guiding Activities.   There being no objection,                                                               
the audit requests were approved.                                                                                               
                                                                                                                                
OTHER COMMITTEE BUSINESS                                                                                                      
                                                                                                                              
CHAIR  THERRIAULT reminded  members to  encourage those  in their                                                               
respective districts  who had not  yet submitted  their Education                                                               
Cost Study questionnaires.                                                                                                      
                                                                                                                                
Number 1151                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MULDER told  the  committee  the state's  medical                                                               
plan  is approximately  26 years  old,  and that  there would  be                                                               
funding for  a new one;  the funds  would come through  the Joint                                                               
Committee on Legislative Budget and Audit.                                                                                      
                                                                                                                                
CHAIR THERRIAULT asked  what the intent is behind  that course of                                                               
action.                                                                                                                         
                                                                                                                                
REPRESENTATIVE MULDER answered that the  intent is a state health                                                               
plan that oversees  and guides the practices  of [certificates of                                                               
need].                                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the Joint                                                               
Committee on  Legislative Budget and Audit  meeting was adjourned                                                               
at 6:54 p.m.                                                                                                                    

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