Legislative Budget and Audit Joint with House Finance Committee April 1, 1998 8:00 a.m. House Finance Committee Room State Capitol Juneau, Alaska Tape: LBA-980104 Tape 1 Side 1 CALL TO ORDER Chairman Phillips convened the meeting of the Legislative Budget and Audit Committee on April 1, 1998, at approximately 8:15 a.m. in the House Finance Committee Room of the State Capitol, Juneau, Alaska. PRESENT The following members of the Legislative Budget and Audit Committee were present: Senators Representatives Chairman Phillips Representative Martin Senator Donley Representative Bunde Senator Pearce Representative Croft Representative James Representative Therriault Representative Hanley (alternate) The following members of the House Finance Committee were present: Representative Hanley Representative Therriault Representative Gary Davis Representative Martin Representative Foster Representative John Davies Representative Moses Representative Mulder ALSO PRESENT Speaker Gail Phillips, Senator Sean Parnell; Pat Davidson, Chief Legislative Auditor; Mike Greany, Legislative Fiscal Analyst PRELIMINARY AUDITS Representative Martin MOVED to go into Executive Session for the purpose of discussing a classified and confidential report. Chairman Phillips - Hearing no objection, the motion was APPROVED. EXECUTIVE SESSION Chairman Phillips reconvened the meeting to the public. Representative Martin MOVED to approve the release of special audit #05456398, Department of Education, Division of Vocational Rehabilitation, to the Department for response. Chairman Phillips - Hearing no objection, the motion was APPROVED. Representative Martin - Can that be released automatically upon response? Pat Davidson - That would be up to the Committee. Representative Martin MOVED to approve the release of special audit #05455098, Department of Education, Implementation of Individuals with Disability Act, to the Department for response and upon response to the public. Chairman Phillips - Hearing no objection, the motion was APPROVED. Representative Martin MOVED to approve the release of audit Agriculture, Agricultural Revolving Loan Fund, to the Department for response and upon response released to the public. Representative Davies objected to the release to the public. There is some issue of stated mismanagement and I think we should look at the response first before we release it to the public. Representative Martin - The problem is it may be three-four months before something is done. I think rather than lose a whole session to correct the problem which could be legislatively taken care of we can allow the release especially when the Department may provide its response to two-three weeks. Representative James - My question is how long does the Department have to respond? Pat Davidson - 20 days Representative James - Some of us who are trying to protect this fund think it is an emergency. Chairman Phillips - You'll have a response by approximately April 20 or 21, perhaps earlier. Pat Davidson - I expect we will have another Committee meeting. I know there is interest in the Railroad audit and I can ask the Department if they can provide an expedited response and I will get it here as fast as I can. Representative Martin AMENDED the motion to include consideration of release to the public at the next Committee meeting. Chairman Phillips - Hearing no objection, the amended motion was APPROVED. Representative Martin MOVED to approve the release of special audit #06458698, Department of Health and Social Services, Family Youth Services, Selective Child Protection issues, to be released on Thursday, April 2, by 9:00 a.m. to the Department for response. Chairman Phillips - Hearing no objection, the motion was APPROVED. OTHER BUSINESS Representative Therriault requested the status of the Salary and Wage survey. Jerry Burnett - It is in progress and will be completed in June. The contractor will be in Juneau tomorrow. ADJOURNMENT Chairman Phillips adjourned the meeting at 10:00 a.m. (End, Tape: LB&A-980104, Tape 1 Side 1 #245) LB&A 3 04/01/98