Transcript Highlights:

• We're going to call to order the Legislative Joint Audit Committee for Friday, February 13th.
• Staff reported to the committee the audit and special reports scheduled to be presented to the standing
• committees and the full Legislative Joint Audit Committee this month.
• retain the services of a licensed certified public accountant to conduct the OPR annual financial audit
• Thirty-one education audit reports were included on the committee's agenda for review.

Summary: The Legislative Joint Audit Committee met on February 13, 2026, and first adopted the January 9, 2026 minutes. It then received and adopted reports from the Executive Committee, the Standing Committee on Counties and Municipalities, the Standing Committee on Education Institutions, the Standing Committee on State Agencies, and the Medicaid Subcommittee. Those reports covered audit follow-up items, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, state agency audit findings, and a Medicaid oversight presentation. Several reports were filed after discussion, and in multiple cases agencies or local officials were present to answer questions about repeat findings or compliance concerns. Among the notable audit matters, the committee reviewed a Cleburne County library audit that found more than $80,000 in unauthorized or questionable disbursements, including purchases that appeared personal in nature and improper fuel expenses. The library director had been placed on leave, later charged with felony theft of property and abuse of office, and the matter was referred to the prosecuting attorney and Attorney General. The committee also heard a special report on the Charles W. Donaldson Scholars Academy at the University of Arkansas at Little Rock, which found scholarship ineligibility issues and numerous disbursement-processing exceptions, while noting that the program had ended in 2024 and remaining funds were returned to the school districts. During the state agency report, Legislative Audit described findings at DHS, Parks, Heritage, and Tourism, Corrections, and Veterans Affairs, including improper benefit payments, a cashed warrant by someone other than the intended payee, missing receipts, unauthorized fuel card purchases, and payroll and overtime issues. The committee filed that report after agency representatives responded to questions. The meeting ended with the filing of the Cleburne County and Donaldson Scholars Academy reports, and the next committee meeting was announced for March 12-13, 2026.

Transcript Highlights:

• Staff from the State Auditor's Office will give a presentation of their recent performance audit.
• The performance audit being discussed at this hearing was conducted...
• I was the lead auditor for this performance audit. I'd also like to thank...
• This audit found that OIC could help educate insurers about child support insurance intercepts.
• Our audit determined that OIC has some information that could be helpful to DCS.

Summary: At the June 4, 2025 JLARC I-900 Subcommittee hearing, the State Auditor’s Office presented a performance audit on Washington’s child support insurance intercept law. The audit reviewed the mandatory reporting system for insurance claims tied to past-due child support, noting that collections increased after the law took effect in 2022, but that some eligible claims still are not being reported. Auditors said DCS learns about roughly 1 in 10 claims through other channels, and that insurers may miss reporting because they are unaware of the law, make administrative errors, or misunderstand the $500 threshold and timing requirements. The audit recommended that the Office of the Insurance Commissioner help educate insurers by adding information to its website and sharing insurer contact contacts with DCS, and also recommended that the Legislature amend the law to create monitoring and enforcement authority. The auditor said neither DCS nor OIC currently has authority to monitor compliance or take action against noncompliant insurers, though other states use insurance regulators or market conduct exams for this purpose. Committee members asked about possible coordinated enforcement between DSHS and OIC, which the auditor said was beyond the scope of the audit but could be considered by the Legislature. An OIC representative said the commissioner is willing to help educate insurers, post information on the OIC website, and share contact information with DSHS, and that the agency is open to further discussion. No public testimony was offered, and no votes or formal committee actions were taken at the hearing.

Transcript Highlights:

• When we'd have our city audit done, they'd give us recommendations that we can do to improve it, and
• <00:16:07.279> come<00:16:07.639> back audited and when those audits come back audited
• and when those audits come back for<00:16:08.680> uh<00:16:08.800> an<00:16:09.000>
• to improve and I've been you do audits to improve and I've been disappointed<00:20:51.159> by
• when the federal government funds audits when the federal government funds programs<00:21:32.159>

Keywords: 1183, house

Summary: The committee heard House File 3, authored by Chair Nash, which would require the Office of the Legislative Auditor to produce an annual report for fiscal committees showing how well agencies have implemented prior audit recommendations, especially those related to financial practices, internal controls, and management. Nash said the bill is intended to give legislators a clearer, ongoing tool to evaluate agencies before making funding decisions and to help prevent waste, fraud, and abuse. He noted the bill would use existing audit information rather than create a new reporting burden, though he said it would deepen the review of implementation. Legislative Auditor Judy Randall testified that the Office of the Legislative Auditor already tracks implementation to some extent through annual information collected by Minnesota Management and Budget, but that current reporting is based largely on agency self-reporting and is not always independently verified. She said the bill would expand that work and provide the legislature with more useful accountability information. A representative from Americans for Prosperity also supported the bill, calling it a transparency and stewardship measure that would help taxpayers and legislators see whether agencies are following through on recommendations. Several members spoke in favor, describing the bill as a common-sense accountability measure and comparing it to audit practices in local government and private organizations. Nash and Randall also discussed Colorado’s similar process, where audit follow-up information is presented during budget hearings. Members raised concerns about fraud and inefficiency in state government, and Nash said the bill is meant to help lawmakers better protect taxpayer dollars. The committee voted to recommend House File 3 and re-refer it to the Committee on Ways and Means.

Transcript Highlights:

• Welcome to House and Senate Legislative Audit.
• , internal audit reported a total loss of $66,000.
• I'm the Chief Audit Executive for the University of Arkansas System.
• So we decided to close the program through the audit with Ms. Cheek.
• Let's bring an audit to confirm. Are we seeing what we're seeing?

Summary: The House and Senate Legislative Audit committee met to approve prior minutes and review four higher education audit reports. Staff first presented the University of Arkansas System report, which included three findings that had been certified and referred to the Governmental Bonding Board, the attorney general, and the appropriate prosecuting attorney: unauthorized purchases at UAPB totaling about $37,000, a fraud scheme involving falsified FAFSA/transcript records at East Arkansas Community College with about $66,000 in losses, and unallowable charges in the Veterans Upward Bound program at UA Fayetteville totaling $8,500, of which $6,700 was recovered. Committee members praised the institutions’ internal audit and management teams for identifying the issues and asked detailed questions about how the fraud was detected, especially the online student identity-theft scheme at EACC and the safeguards now being used to verify student identity and prevent similar cases. EACC officials explained that the fraudulent admissions involved online applicants using falsified transcripts and identity-theft tactics, that 39 suspicious students were identified, and that seven slipped through far enough to receive federal aid, resulting in a $2,500 reimbursement obligation to the university. They said the college now uses a cross-departmental student validity team, extensive red-flag protocols, direct outreach to high schools, ID verification, and other checks, and that the issue has been shared across the UA system and with other campuses. UA Fayetteville also clarified that no veterans were harmed by the Veterans Upward Bound finding; the program was closed and students were redirected to other veteran support programs in the state. The committee then deferred the Northwest Arkansas Community College report. Staff next summarized two additional reports, from Southeast Arkansas College and Southern Arkansas University Tech, which contained only financial statement misstatements corrected during audit fieldwork; SAU Tech also had a finding involving unauthorized withdrawals that the college discovered and recovered. With no further questions, the committee voted without objection to file the reviewed reports and adjourned.

Transcript Highlights:

• Basically, what are audits?
• are smaller versions of audits.
• If you brought 154, 40 of those 464 audits were caught up.
• was linked to the federal cutoff for single audit at that time.
• Like I said, this is challenging audit work.

Transcript Highlights:

• in three or more successive audit reports.
• When the committee receives notification of audit findings repeated in the audit reports from an educational
• When the committee receives notification of audit findings repeated in the audit reports from an educational
• findings to the committee for late-filed 2023-24 audit reports.
• Last item is to direct the audit of the Department of the Lottery.

Summary: The Joint Legislative Auditing Committee met to receive updates on Transparency Florida and related transparency tools. The Governor’s Office and the Department of Financial Services described the Transparency Florida website, the state payment and contract systems, and the local-government financial reporting system (Logger X/XBRL), emphasizing public access, searchable payment and contract data, downloadable reports, and ongoing upgrades. Members asked whether school districts and the Department of Corrections are included in these systems; staff explained that state agencies like Corrections are covered through Transparency Florida, FACTS, and the state financial reports, while Logger X is for local governments. Committee staff reported that the Transparency Florida Act’s requirements have been met and noted that any new recommendations would need legislative action; members were invited to submit recommendations by October 30. The committee then reviewed repeated audit findings for local governments and educational entities. Staff explained the statutory process for “three-peat” findings: first requesting an updated written corrective-action status, then possibly requiring an appearance before the committee, and finally taking further action if findings remain uncorrected. Most entities were recommended for written updates, while the City of Daytona Beach was singled out for an in-person appearance because of a repeated finding involving unexpended building permit balances. Members also raised questions about specific entities, including McIntosh, White Springs, Pahokee, and the Fred R. Wilson Memorial Law Library special district, with staff explaining the nature of the findings and noting that some entities may warrant further review. The committee adopted a motion to accept staff’s recommendations and to send letters to entities with uncorrected audit findings in late-filed 2023-24 audit reports. It also approved a motion directing the Auditor General and OPPAGA to conduct the required audit of the Department of the Lottery for fiscal year 2025-26, with the Auditor General handling financial, internal control, and compliance work and OPPAGA preparing operational recommendations. The meeting concluded with notice that the next meeting was tentatively scheduled for November 3 at 3:30 p.m., followed by adjournment.

Transcript Highlights:

• cycle may not be selected in the current audit cycle.
• If a county randomly selected for a post-election audit fails that audit, SB 1541 allows the Secretary
• Harris County alongside counties that have been through the Secretary of State's audit process.
• , post-election audits helps them remediate their issues.
• Um, I, I think this is a, a, a great thing to do, to have, have these hand-counted audits.

Transcript Highlights:

• . audit. audit.
• <00:08:07.200> that<00:08:07.360> is an audit that is an audit that is already<00:08:09.840
• Um the funding wouldn't be audit.
• That the auditor producing an audit.
• schools accountable for producing audits schools accountable for producing audits um<00:15:05.480

Keywords: 1191, senate, all

Transcript Highlights:

• was this dis these uh lack of audits was this dis these uh lack of audits ever<02:00:05.760>
• We want the entire audit and finding and We want the entire audit and finding and recommendations<02:
• <02:46:02.720> audited<02:46:03.680> reports for submitting audit audited reports for
• that you didn't send that audit in. that you didn't send that audit in.
• the middle of an audit right now. the middle of an audit right now.

Keywords: 928, house, all

Summary: The House Education Policy and Administration Committee met to hear a non-germane amendment to House Bill 131, which concerns bullying and cyberbullying prevention. Representative Glenn Cordelli, the prime sponsor, said the amendment was intended to revise and improve language from last year’s SB 210 and to incorporate measures from a cyberbullying bill previously passed by the House. He described changes to school communication requirements, mandatory reporting of bullying and retaliation, stronger investigation and collaboration requirements for cross-district cases, added safety and remediation language, a required conference with the alleged perpetrator and parents if available, updated reporting deadlines, and disciplinary consequences for harassment, intimidation, retaliation, and false reports. He also noted a later amendment would be needed to insert the words “the perpetrator” in one section, and he explained that some changes were meant to align with prior legislation and legislative drafting suggestions. Committee members raised several concerns. Representative Murray questioned the treatment of private and parochial schools, the change from gross negligence to negligence, and the removal of a definition of bullying based on imbalance of power and perceived characteristics. Representative Damon also objected to deleting that definition, arguing it would narrow the scope of bullying too much. Representative Han spoke in opposition, saying the amendment was too broad, unnecessary in parts, and not ready for final action; he criticized the removal of the imbalance-of-power language, the conference requirement when parents may not participate, and the reporting obligations for bus drivers and others. Cordelli responded that some issues were already addressed in prior law or SB 210 and that private schools have their own policies. Michelle Wongran of New Hampshire Legal Assistance testified in opposition, saying the bill was being heard without enough notice and that it does far more than the committee analysis suggests. She said the amendment adds undefined retaliation language, imposes reporting duties on school vendors and contractors, may conflict with FERPA and other federal privacy rules, and includes provisions that could have serious implications for schools and students. She said she supports parental involvement and some conference provisions in concept, but urged the committee to reject the amendment or at least send it through the normal legislative process for fuller review. No vote was taken during the hearing portion described in the transcript.

Transcript Highlights:

• We're recounting, auditing. reconciling. We're recounting, auditing.
• inconsistencies or errors in the audit inconsistencies or errors in the audit should<01:27:07.440
• separate concepts. one was the audit separate concepts. one was the audit concept<01:43:54.159><
• > M concept that we're auditing the M concept that we're auditing the M machines<01:43:56.480>
• <01:45:16.639> will audit will audit will >> senator<01:45:19.199> anything<01:45

Bills: HB0022, HB0052, HB0076

Keywords: municipal officers, recall election, petition requirements, local governance, voter participation, elections, hand counting, recounts, vote auditing, Wyoming legislature, electoral process, annexation, landowner rights, municipal law, city planning, property, local government, 916, all

Transcript Highlights:

• My name's Christine Young, Director of Audits with the LBA, and with me is Jay Henry, Performance Audit
• <00:04:46.840> We audit. We're writing observations. We audit.
• , In terms of reporting out on this audit, In terms of reporting out on this audit, that's<00:05:
• um our audit period our original audit um our audit period our original audit period<00:21:46.960
• accordance with our auditing standards. accordance with our auditing standards.

Keywords: 1189, house, all

Summary: The committee received an update from the LBA on three audits related to education programs. Christine Young reported that the special education audit is in report-writing, with 44 of 81 observations completed, and that a draft is expected early in the third quarter with a final report later in the summer. She also said the doorway program audit has a draft report with 12 observations, auditee responses were received May 14, an exit conference was held May 18, and the report is now expected to be presented at the June fiscal committee meeting. The bulk of the discussion focused on the education freedom accounts audit and a proposed expansion of scope. Beulah Skids explained that the original audit, required by the 2022 law creating the EFA program, would be expanded to examine whether students were New Hampshire residents at enrollment and throughout participation, and whether records of educational attainment satisfied program requirements. She described the current work, the draft cooperation agreement being developed with the Department of Education and the Children’s Scholarship Fund, and the department’s concerns about the audit period and the term "educational progress," which the LBA said it would revise. The committee discussed that the expanded work would depend on a written agreement giving the LBA access to needed records, policies, and staff, with the Department of Education potentially serving as an intermediary for data access. Members raised concerns about the scope period and data access. Senator Lang asked that the residency review be limited to the 2024-25 and 2025-26 school years, rather than the broader 2022-25 period, because those years captured the major program expansions; the committee appeared to agree, with clarification that the reference was to school years, not fiscal years. Members also discussed reconciliation of EFA funds, noting that the department has agreed to reopen rulemaking to make reconciliation more frequent so unused funds can be returned to the state sooner. Several members expressed frustration that access to data had been delayed, while LBA staff said the cooperation agreement is intended to prevent further roadblocks and that the AG’s office could review it if needed.

Transcript Highlights:

• Thank you for the audit report.
• Safety Program Audit of 2025.
• It's a self-audit, essentially, and having ASU do that self-audit for you...
• Some numbers that came out of that audit. And this was not an audit of ADE.
• With that said, the audit—the audit was of 47 schools throughout our state, equally divided between 15

Keywords: 1182, all

Summary: The Education Committee met as a committee of reference to complete required sunset reviews and hear a performance audit. Members and staff introduced themselves at the start of the session, and the chair outlined committee procedures, including limits on public testimony and the goal of adjournment by 5 p.m. The committee then heard the sunset review of the Credit Enhancement Eligibility Board. A governor’s office representative explained that the board was created in 2016 to help qualifying schools, mostly charter schools, lower borrowing costs through a credit enhancement fund. He said the board has approved 15 projects, has no dedicated staff or budget, and is now at its statutory leverage limit, so it is mainly monitoring existing obligations. Members voiced support, and the committee voted by voice vote to recommend continuation of the board for 10 years, until July 1, 2036. The committee next reviewed the Western Interstate Commission for Higher Education (WICHE). WICHE leadership described the interstate compact, its student exchange programs for undergraduate, graduate, and professional health care education, and related cost-savings and workforce benefits for Arizona. Testimony emphasized tuition savings for Arizona students, the return of many professional students to practice in Arizona, and the role of the compact in supporting higher education access and workforce needs. Commissioners from Arizona’s Board of Regents and Eastern Arizona College also spoke in support. The committee then voted by voice vote to recommend continuation of WICHE for 10 years, until July 1, 2036. The committee also received the Arizona Auditor General’s performance audit of the Arizona Department of Education school safety program. The audit found that while the program has grown substantially and now funds more than 1,000 school safety positions, ADE did not ensure many sampled schools complied with requirements such as operational plans, safety teams, annual training, activity logs, and expenditure documentation. The Auditor General said the department relied too heavily on written attestations and reduced monitoring as the program expanded, and recommended stronger oversight, written procedures, and better reimbursement controls. ADE’s school safety director responded that the department accepts the findings, has already begun improving monitoring, and is moving to require uploaded documentation and more risk-based reviews; he also said the department will seek additional staffing and will meet with the Auditor General and ASU to strengthen evaluation of the program. Finally, the committee took up House Bill 2142, which would establish a school safety center within ADE, assign it responsibility for administering the school safety program and providing technical assistance, and allow up to 10% of program appropriations for administration. Members discussed whether the bill should also require monitoring of emergency operations plan compliance, better address students with disabilities, and clarify coordination with other state agencies. The sponsor said he planned to offer a floor amendment to make monitoring expectations clearer. The bill was discussed but no final committee action was recorded in the portion provided.

Transcript Highlights:

• And I I thought I a year annual audit.
• requirement instead of the bi-annual audit requirement.
• requirement instead of the bi-annual audit requirement.
• So, this is uh an additional audit every other year as the bill is written today.
• So, this is uh an additional audit every other year as the bill is written today.

Keywords: 919, house, all

Summary: House File 4205, as amended, was heard and then re-referred to the Public Safety Finance and Policy Committee. Representative Tabke said the bill is intended to protect Minnesotans’ private data tied to license plate reader systems by requiring warrants for out-of-state access, limiting dissemination of privately collected data, and adding reporting and oversight. He said the amendment was substantive and was adopted before the bill was discussed. Tabke also said he was open to changes, including revisiting the audit requirement, and noted the bill should still allow law enforcement to use license plate data for investigations. John Beeler of the ACLU of Minnesota testified in support, arguing that automatic license plate reader use has expanded far beyond what the 2015 statute contemplated and that third-party vendors have complicated data practices and accountability. He said the bill would modernize the law, require public disclosure of data-sharing relationships, and ensure private vendors are subject to data obligations. Jeff Potts of the Minnesota Chiefs of Police Association opposed the bill as written, saying LPR technology has been important in investigations, including a recent child abduction case, but that the annual audit requirement would be too costly for small agencies and could make the technology unaffordable. He said the association was open to further discussions on guardrails but opposed the bill in its current form. Members raised questions about what data is actually returned by a license plate query versus an LPR hit, with Representative Duran arguing the bill conflated limited registration information with broader private data. Representative Feist supported the bill, saying the public should not trust Flock and that the issue is the cumulative tracking of people’s movements, not just isolated data points. Representative Hudson said the bill raised valid questions but might unintentionally hinder investigations, and he requested a roll call. The committee ultimately adopted the A1 amendment and moved the bill forward on a roll call vote.

Transcript Highlights:

• We went through a special audit as well, on top of catching up on the 21, 22, 23, and 24 audits.
• for your 2024 audit.
• I guess you're now preparing the 2025 audit. What were some of the key findings from your audit?
• audit?
• I expect the same for the 2024 audit.

Transcript Highlights:

• It took the school district and CalPERS three years after the final audit report to fix the error.
• So this bill requires employees to forward the initial audit notification.
• It took the school district in CalPERS three years after the final audit report to fix the air.
• So this bill requires employees to forward the initial audit notification.
• , and the final audit report to the relevant bargaining unit.

Keywords: 988, house, all

Summary: The Assembly Committee on Public Employment and Retirement heard three bills. SB 939 (Laird), sponsored by CalPERS, would end new enrollment in the actuarial equivalent reduction option for service credit purchases after January 1, 2028, and require any unpaid balance at retirement to be paid within 90 days. The author said the change would reduce unintended consequences for retirees, employers, and CalPERS. There was no opposition, and the bill passed the committee on a 6-0 vote and was referred to Appropriations. SB 1038 (Laird), sponsored by the California School Employees Association, would expand CalPERS audit notifications so bargaining units receive notice of employer audits, affected-member lists, and final audit reports. Supporters said this would help unions protect members from benefit reductions or repayment demands caused by audit corrections, citing a Kern High School District example. There was no opposition, and the bill also passed 6-0 and was referred to Appropriations. SB 1227 (Drozzo) would require the Department of Industrial Relations to work with state worker unions to create apprenticeship pathways into key enforcement jobs, including roles at Cal/OSHA and the Labor Commissioner’s Office. Supporters from United Steelworkers, SEIU Local 1000, CSEA, and the California Labor Federation said the bill could help address staffing shortages and improve enforcement capacity. The committee approved the bill 6-0 as amended and re-referred it to the Committee on Labor and Employment.

Transcript Highlights:

• The audit was conducted by the independent firm Showberg-Eveshank Consulting under contract with our
• My presentation will include some key context for the performance audit and sunset review, information
• and collaborative effort during this audit cycle.
• So it sounds like a lot like forensic-type auditing needs to be done on the data too.
• The audit did confirm that the demand vastly outstrips the supply of investigative staff.

Keywords: 1182, all

Summary: The committee conducted sunset reviews for the Arizona State Board of Pharmacy, the State Board of Nursing, the Arizona Board of Occupational Therapy Examiners, and the Arizona Regulatory Board of Physician Assistants. The Auditor General’s reports praised each board for timely licensing in some areas but identified recurring problems with complaint investigations, public safety oversight, fee analysis, records/documentation, and internal controls. For Pharmacy, the main concerns were weak enforcement of controlled substances prescription monitoring program (CSPMP) requirements and slow complaint resolution; the board said it had implemented some recommendations, was pursuing a new database vendor, and supported legislation to strengthen CSPMP enforcement. For Nursing, the audit found a large and growing backlog of complaints and repeated delays in resolving cases; the executive director said the board was under-resourced and requested 28 additional investigative positions, while nursing stakeholders supported process reforms and cited a bill to improve timelines and fairness. For Occupational Therapy, the audit focused on missing or poorly documented fingerprint clearance card checks, delayed action on a serious criminal-charge disclosure, and other compliance issues; the board said it had accepted and was implementing all recommendations, including new procedures and rulemaking. For Physician Assistants, the audit found weak oversight by the executive director, extensive delays in complaint handling, and an incentive-pay system that did not align with key performance goals; the board said it had already made structural changes, was improving tracking and IT systems, and planned to continue implementing recommendations. After discussion and testimony from board officials, public members, and nursing stakeholders, the committee voted to continue the Arizona State Board of Pharmacy for six years until July 1, 2032, the State Board of Nursing for four years until July 1, 2031, the Arizona Board of Occupational Therapy Examiners for four years until July 1, 2030, and the Arizona Regulatory Board of Physician Assistants for a continued term with statutory changes (the transcript includes the board review and related discussion, but the final motion text for the physician assistants board is not fully captured in the excerpt). The votes on the first three continuations were approved by roll call, with members generally supporting continuation while expressing concern about complaint backlogs and the need for reforms.

Transcript Highlights:

• We're going to call to order the Legislative Joint Audit Committee for Friday, February 13th.
• Staff reported to the committee the audit and special reports scheduled to be presented to the standing
• committees and the full Legislative Joint Audit Committee this month.
• retain the services of a licensed certified public accountant to conduct the OPR annual financial audit
• Audit reports were included on the committee's agenda for review.

Summary: The Legislative Joint Audit Committee met on February 13, 2026, and first adopted the January 9, 2026 minutes and then adopted reports from its executive and standing committees. The Executive Committee reported on scheduled audits, denied a special report request concerning the I-owned fire department, approved questions to the Arkansas Department of Health about Title V sexual risk avoidance education funds, authorized the Office of Property Risk to hire a CPA for its annual audit, and asked staff to gather information on circuit judge caseload assignments in Benton County. The Counties and Municipalities Committee reported progress on delinquent private water and sewer audits, including reinstatement of 19 entities after required reports were filed and 59 of 64 delinquent 2023 entities submitting reports. It also noted that Adona was now in substantial compliance with municipal accounting law, while officials from Denning and Gum Springs appeared regarding noncompliance. Of 109 current reports reviewed, 15 were referred to prosecutors and the Attorney General, two were certified to the Governmental Bonding Board, 94 were filed, and 15 were deferred. The Education Institutions Committee filed 31 audit reports, including one for Cedarville School District that was referred to the prosecuting attorney, Attorney General, and Governmental Bonding Board, and the State Agencies Committee filed 10 reports involving issues at DHS, Parks, Heritage, and Tourism, Corrections, and Veterans Affairs. The committee also heard a Medicaid Subcommittee report that included presentations from DHS, the Office of Medicaid Inspector General, and the Attorney General’s Office on their Medicaid-related roles. In special reports, Legislative Audit presented a review of Cleburne County’s library expenses, finding more than $80,000 in unauthorized or questionable disbursements, including purchases lacking a documented business purpose, undocumented disbursements, and possible improper fuel expenses; the matter was referred to the 16th Judicial District Prosecuting Attorney and the Attorney General. The committee also reviewed the Charles W. Donaldson Scholars Academy at UALR, where auditors found scholarship awards to ineligible students, numerous disbursement-processing exceptions, and that the program had ceased in 2024 with remaining funds returned to the school districts. After discussion, the committee filed both special reports and adjourned, with the next meeting set for March 12-13, 2026.

Transcript Highlights:

• It's these financial audits with audit firms, and you make a great point.
• It's these financial audits with audit firms, and you make a great point.
• smaller airports to do the audit? smaller airports to do the audit?
• safety audits and maybe administrative<00:15:08.240> audits?
• > with<00:15:52.560> audit It's these financial audits with audit It's these financial

Keywords: 958, all

Summary: The task force meeting began with approval of the July 14 minutes and then heard a presentation from the Kentucky Aviation Association. Association leaders described general aviation airports as important to rural access, commerce, emergency response, tourism, agriculture, and workforce development, and cited statewide economic impacts they said exceed $1.6 billion and support more than 9,400 jobs. They thanked the legislature for prior airport funding and said it had helped airports with basic operations and repairs. The association asked lawmakers for four things: continued appropriations for general aviation airports; relief or a more workable process for required financial audits, which they said can cost $10,000 to $20,000 or more and sometimes exceed a small airport’s annual budget; a regularized statewide appropriations process for airport infrastructure needs, which they said total about $100 million and are currently addressed unevenly; and funding for the Aerospace Education Reinvestment Opportunity Act to support scholarships and aviation workforce training. Members of the task force asked follow-up questions about the audit burden, the difference between financial and safety audits, and the difficulty of finding audit firms. The presenters said they would bring specific ideas back on audit reform. Eastern Kentucky University then presented on its aviation program. EKU leaders thanked the committee for prior support, including a $25 million appropriation for a new flight school building at Central Kentucky Regional Airport, and said the project is expected to break ground in 2026. They reported strong enrollment growth, with 502 aviation majors, most of them Kentuckians, and said the program has expanded flight hours and job placement. EKU also outlined plans to add an air traffic control program in response to Senate Bill 87 and the national shortage of controllers, saying it could train students to FAA standards if the university receives the needed investment in simulators, equipment, space, and faculty. They also discussed the need to replace an aging fleet of training aircraft, saying the current planes are decades old and costly to maintain, and that newer aircraft would improve training quality and reduce student costs.

Transcript Highlights:

• We are starting the Joint Legislative Audit and Review Committee. Today is December 3, 2025.
• audit.
• To audit tax filing.
• Just a reminder, this is not a performance audit.
• This is a performance audit report. Good morning, members of the committee.

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

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Keywords: 1191, senate, all