ALASKA STATE LEGISLATURE  LEGISLATIVE BUDGET AND AUDIT COMMITTEE  March 17, 2026 8:00 a.m. MEMBERS PRESENT Senator Elvi Gray-Jackson, Chair Representative Zack Fields, Vice Chair Senator Bert Stedman Senator Cathy Giessel Senator Lyman Hoffman Senator Bill Wielechowski Representative Neal Foster Representative Andy Josephson Representative Chuck Kopp Representative Julie Coulombe Senator Scott Kawasaki (alternate) Representative Bryce Edgmon (alternate) MEMBERS ABSENT  All members present OTHER LEGISLATORS PRESENT Senator James Kaufman Representative Jeremy Bynum COMMITTEE CALENDAR  APPROVAL OF AGENDA APPROVAL OF MINUTES COMMITTEE BUSINESS: LEGISLATURE INDEPENDENT AUDIT FY25 CONSIDERATION OF CONTRACT EXTENSION: CLIFTON LARSON ALLEN FOR COMPLIANCE AUDITS OF SELECT MAJOR FEDERAL PROGRAMS EXECUTIVE SESSION PRELIMINARY RELEASE OF THE FY25 STATE OF ALASKA SINGLE AUDIT PREVIOUS COMMITTEE ACTION  No previous action to record WITNESS REGISTER KRIS CURTIS, Legislative Auditor Division of Legislative Audit Legislative Agencies and Offices Juneau, Alaska POSITION STATEMENT: Presented the Legislature Independent Audit for Fiscal Year 2025; Presented the Consideration of Contract Extension: Clifton Larson Allen for Compliance Audits of Select Major Federal Programs. ACTION NARRATIVE 8:00:14 AM CHAIR ELVI GRAY-JACKSON called the Legislative Budget and Audit Committee meeting to order at 8:00 a.m. Representatives Fields, Josephson, Coulombe, and Edgmon and Senators Stedman, Hoffman, Giessel, Kawasaki, and Gray-Jackson were present at the call to order. Representatives Foster and Kopp and Senator Wielechowski arrived as the meeting was in progress. Other legislators present were Senator Kaufman and Representative Bynum. ^APPROVAL OF AGENDA APPROVAL OF AGENDA    8:01:14 AM CHAIR GRAY-JACKSON announced that the first order of business would be the Approval of Agenda. 8:01:17 AM REPRESENTATIVE FIELDS moved that the Legislative Budget and Audit Committee approve the agenda, as presented. There being no objection, the agenda was approved. ^APPROVAL OF MINUTES APPROVAL OF MINUTES    8:01:27 AM CHAIR GRAY-JACKSON announced the next order of business would be the Approval of Minutes. 8:01:30 AM REPRESENTATIVE FIELDS moved that the Legislative Budget and Audit Committee approve the minutes of the meeting on February 5, 2026. There being no objection, the minutes were approved. ^COMMITTEE BUSINESS: LEGISLATURE INDEPENDENT AUDIT FY25 COMMITTEE BUSINESS: LEGISLATURE INDEPENDENT AUDIT FY25  8:01:45 AM CHAIR GRAY-JACKSON announced the next order of business would be the Legislature Independent Audit for Fiscal Year 2025. 8:02:11 AM KRIS CURTIS, Legislative Auditor, Division of Legislative Audit, Legislative Agencies and Offices, pointed out that committee members had received a copy of the Alaska State Legislature Schedule of Appropriations, Expenditures, and Encumbrances and the Schedule of Revenues for fiscal year ending June 30, 2025 [both included in the committee file]. She reviewed that this audit is conducted every year, as required by statute. She indicated that those members who also sit on the Legislative Council have already seen a copy of the audit. The Legislative Budget and Audit Committee has its own appropriation, which is identified separately in the audit; therefore, Ms. Curtis noted that it is appropriate to present it to the Legislative Budget and Audit Committee. Ms. Curtis, in conclusion, stated: "The independent auditor had a clean opinion; they believe the materials are free from material misstatement; and it's included as basically a for-your-information type of agenda item." CHAIR GRAY-JACKSON ascertained that there were no committee questions for Ms. Curtis. ^CONSIDERATION OF CONTRACT EXTENSION: CLIFTON LARSON ALLEN FOR COMPLIANCE AUDITS OF SELECT MAJOR FEDERAL PROGRAMS CONSIDERATION OF CONTRACT EXTENSION: CLIFTON LARSON ALLEN FOR  COMPLIANCE AUDITS OF SELECT MAJOR FEDERAL PROGRAMS    8:03:02 AM CHAIR GRAY-JACKSON announced that the next order of business would be Consideration of Contract Extension for Compliance Audits of Select Major Federal Programs. 8:03:17 AM REPRESENTATIVE FIELDS moved that the Legislative Budget and Audit Committee approve a one-year, $170,000 contract extension for federal compliance audit services to Clifton Larson Allen for a new total not to exceed amount of $395,000 to be paid from existing funds. CHAIR GRAY-JACKSON objected for the purpose of discussion. 8:03:46 AM KRIS CURTIS, Legislative Auditor, Division of Legislative Audit, Legislative Agencies and Offices, presented the Consideration of Contract Extension: Clifton Larson Allen for Compliance Audits of Select Major Federal Programs. She noted that prior to this meeting, committee members had been sent a procurement memorandum ("memo") asking for their consideration and approval of federal compliance audit assistance. She further noted that the Legislative Budget and Audit Committee had previously approved the contract for audit assistance in Fiscal Year 2023 ("FY 23") single audit and FY 24 single audit. She reported that for those audits, the Division of Legislative Audit was able to contract out five major federal programs to help address the workload, which increased because of the large influx of federal funds and a decline in staff resources. MS. CURTIS reviewed that during its meeting in January 2025, the Legislative Budget and Audit Committee had approved a contract for federal compliance audit assistance for FY 25 for three major federal programs for an amount not to exceed $225,000. She acknowledged that the memo she had sent had an error in it. She explained that it had read that the motion had been for $223,000; however, that was the contract amount. She confirmed that the motion was for $225,000. She stated that the request for proposals (RFP) that supported that 1/20/25 contract allowed for a one-year extension, which is the reason for her presence today to ask the committee's approval to extend the contract for one additional year to cover two major federal programs for FY 26. She pointed out that the Division of Legislative Audit is able to reduce its reliance on that outside contractor as its staffing has improved. She summarized that the request is for two major federal programs for an amount not to exceed $170,000. She clarified that the motion adds last year's and this year's numbers together; this year's amount, she reiterated, is $170,000. Ms. Curtis, in conclusion, stated that she does not anticipate coming to the committee to ask for assistance for FY 27, and the division does have the ability in its budget to absorb this contract. 8:05:25 AM CHAIR GRAY-JACKSON ascertained there were no questions for Ms. Curtis. CHAIR GRAY-JACKSON withdrew her objection to the previous motion to approve a one-year, $170,000 contract extension for federal compliance audit services to Clifton Larson Allen for a new total not to exceed the amount of $395,000 to be paid from existing funds. There being no further objection, it was so ordered. ^EXECUTIVE SESSION EXECUTIVE SESSION    8:05:51 AM CHAIR GRAY-JACKSON announced that the next order of business would be Executive Session for consideration of a Preliminary Release of the FY 25 State of Alaska Single Audit and an Update on the Special Audit titled, "Oil and Gas Production Tax Audit Process." 8:06:08 AM REPRESENTATIVE FIELDS moved that the Legislative Budget and Audit Committee go into executive session under Uniform Rule 22(b)(1), discussion of matters, the immediate knowledge of which would adversely affect the finances of a government unit; and Uniform Rule 22(b)(3), discussion of a matter that may, by law, be required to be confidential. He asked that the following persons remain in the room or online: Kris Curtis, Legislative Auditor, and necessary staff; Emily Nauman, Legislative Legal Services; any legislators not on the Legislative Budget and Audit Committee; and any staff of Legislative Budget and Audit Committee members. There being no objection, it was so ordered. 8:06:51 AM The committee took an at-ease from 8:06 a.m. to 9:14 a.m. for the purpose of the executive session. 9:14:04 AM CHAIR ELVI GRAY-JACKSON called the Legislative Budget and Audit Committee back to order at 9:14 a.m. Present at the call back to order were Representatives Fields, Foster, Josephson, Kopp, Coulombe, and Edgmon and Senators Stedman, Hoffman, Giessel, Wielechowski, Kawasaki, and Gray-Jackson. ^PRELIMINARY RELEASE OF THE FY25 STATE OF ALASKA SINGLE AUDIT PRELIMINARY RELEASE OF THE FY25 STATE OF ALASKA SINGLE AUDIT    9:14:29 AM CHAIR GRAY-JACKSON announced that the committee discussed a couple of issues during executive session and will be taking action on the single audit. 9:14:43 AM REPRESENTATIVE FIELDS moved and asked unanimous consent that the Legislative Budget and Audit Committee release the FY 25 State of Alaska single audit to the agencies for response. CHAIR GRAY-JACKSON noted that since there was no objection the single audit is released to the agencies for response and noted that the single audit would remain confidential until its final release next month. 9:15:10 AM CHAIR GRAY-JACKSON stated that while in executive session, the Legislative Budget and Audit Committee received a brief update on the special audit titled, "Oil and Gas Production Tax Audit Process." She said that per statute, the audit process remains confidential; therefore, she reminded the audience that neither she nor other members of the committee are allowed to comment on the audit publicly at this stage. She expressed appreciation to the public for their patience and understanding as this important work proceeds. 9:16:11 AM ADJOURNMENT  There being no further business before the committee, the Legislative Budget and Audit Committee meeting was adjourned at 9:16 a.m.