CS FOR SENATE BILL NO. 128(STA):                                             
                                                                               
       An Act relating to legislative audits.                                  
                                                                               
  Co-chair  Pearce  said  that CSSB  128(STA)  was  before the                 
  committee. She  announced  that  Shelby  Statsny,  Director,                 
  Office of Management  & Budget, Office of the  Governor, had                 
  wanted to  prepare a  fiscal note  for the  bill.   Co-chair                 
  Frank asked  if follow-up was  being required so  that audit                 
  recommendations can be implemented.                                          
                                                                               
  RANDY   WELKER,   Legislative  Auditor,   Legislative  Audit                 
  Division,  said   that  CSSB  128(STA)  would   establish  a                 
  recommendation    monitoring    system    providing,    once                 
  recommendations are made, a system to follow up the numerous                 
  recommended   implementations,  and   report  back   to  the                 
  committee.   The basic purpose of  the bill is  to provide a                 
  mechanism  to keep  the items  before the  Budget and  Audit                 
  Committee.  He said  the fiscal note prepared by  the Office                 
  of Budget and Audit Committee was an overstatement.  He felt                 
  it is an  important proposal and  would hate to  see it  get                 
  buried by the  department's fiscal  note.  Senator  Kerttula                 
  asked if one  staff person  could accomplish this  follow-up                 
  task.  Mr. Welker said that one position within the division                 
  would be a good start in establishing a system so the impact                 
  on the  division could be  determined.  He felt  it could be                 
  handled in house.                                                            
                                                                               
  Co-chair Frank  said that follow-up on audits  by the Office                 
  of Management & Budget is a  good idea but would have to  be                 
  done on  a priority basis.   The really  dramatic situations                 
  that need attention  should be top  priority.  He felt  that                 
  this  bill  would  give  the   department  another  tool  to                 
  accomplish what they are already required to do.  He felt it                 
                                                                               
                                                                               
  was not an additional responsibility.                                        
                                                                               
  SHELBY  STATSNY, Director,  Office of  Management &  Budget,                 
  Office of  the Governor, said that  he was in  support of SB                 
  128.  However,  he argued  that the bill  was an  additional                 
  mandate and it would take more  employees.  He felt that his                 
  department had worked hard this last year to  come up with a                 
  program  to  follow-up on  their  own  audits.   There  is a                 
  schedule that  a minimum  of six  months after  an audit,  a                 
  follow-up is done with the audited department to insure that                 
  recommendations  have  been  done.   He  did  not  want  his                 
  department to become a division of Legislative Audit.                        
                                                                               
  In  answer  to  Senator Kelly,  Mr.  Statsny  said  that his                 
  department's  auditors  served  at   the  pleasure  of   the                 
  Governor.    Senator   Kelly  felt   that  was  the   reason                 
  Legislative Audit  had been established outside  the Officer                 
  of the  Governor.   Senator Kelly  pointed out  that in  the                 
  past, auditors had  been fired if the Governor had disagreed                 
  with the audit.                                                              
                                                                               
  End SFC-93 #58, Side 1                                                       
  Begin SFC-93 #58, Side 2                                                     
                                                                               
  Co-chair Frank said he was in  support of reducing the scope                 
  of SB  128 so that  additional employees were  not required.                 
  He  asked Mr. Welker if that would  be possible.  Mr. Welker                 
  said  that  could  be accomplished  through  Budget  & Audit                 
  policy and procedure in developing  and reviewing what items                 
  they choose to forward for follow-up.                                        
                                                                               
  Co-chair  Frank  MOVED to  rescind  the committee  action of                 
  April 12, 1993  reporting CSSB 128(STA) from  committee.  No                 
  objections  being  heard,  CSSB  128(STA)  was  returned  to                 
  committee.                                                                   
                                                                               
  Co-chair  Pearce announced that  Co-chair Frank,  Mr. Welker                 
  and  Mr.  Statsny  would  work  together  on  amending  CSSB                 
  128(STA), and the bill was held in committee.