CHAIRMAN LEMAN brings up SB 357 (REQUIRED REPORTS OF STATE AGENCIES) as the first order of business before the Senate State Affairs Committee today. The chairman asks why, under section 13 of SB 357, would it be desirable to shift the reports two months. He has heard that it is recommended practice by a national organization of auditors that audits be performed within six months of the end of a fiscal year. His initial reaction to shifting reports two months is that it is not an appropriate action. Number 030 LINDA REXWINKEL, Budget Analyst, Office of Management & Budget (OMB) introduces Ms. Barton, and says Ms. Barton will answer questions on that particular section. Number 035 SHARON BARTON, Director, Division of Administrative Services, Department of Administration (DOA) states some of the reports needed from other state agencies are not available until October. Therefore, the DOA is unable to meet the October 16 deadline. CHAIRMAN LEMAN asks if a deadline of December 16 is needed, or if a deadline in November would be acceptable. Why is two months needed? MS. BARTON responds that, as the chairman is aware, DOA was even later in getting out the report this year due to staffing requirements. The combination of the lateness of reports from other state agencies to DOA and the staffing levels within the Division of Finance require at least two months to prepare the report. Number 057 CHAIRMAN LEMAN asks Ms. Barton what her projection is for reports becoming available. Number 061 MS. BARTON replies it would be sometime after December 16, but she cannot answer as to a definite time. Number 065 MS. REXWINKEL adds the audits are done for the previous fiscal year, so they are actually a year behind. The current year's audit is not done within that period of time. What is in this report is merely the financial statement from the Division of Finance. These are not the audited statements that originate from Legislative Audit. Number 085 CHAIRMAN LEMAN states he was told by the commissioner of the Department of Revenue that it was the policy guideline of a national organization of auditors, that audits be completed within six months of the end of a fiscal year. He wonders if that is something that should be important to the State of Alaska. Number 097 MS. REXWINKEL responds, as she understands it, one of the concerns the Department of Revenue has relates to the bond underwriters. The underwriters review those financial statements in underwriting and rating the State of Alaska for bond issues. So the timeliness of those reports is of concern to them. Number 102 MS. BARTON adds that the situation is that, in order for the state's annual financial report to comply with government accounting standards, the state must have previously audited reports going into that annual financial report. Those previously audited reports are not available, particularly on federal programs, until after October 16. So if the state proceeds with the October 16 deadline, the state would not be using materials to compile the annual report that comply with GASBY (?) requirements. Number 125 CHAIRMAN LEMAN asks if there are further questions or if anyone else wishes to testify on SB 357. Hearing none, the chairman asks the pleasure of the committee. Number 127 SENATOR MILLER makes a motion to discharge SB 357 from the Senate State Affairs Committee with individual recommendations. Number 129 CHAIRMAN LEMAN, hearing no objection, orders SB 357 released from committee with individual recommendations.