Transcript Highlights:

• <00:02:40.599> uh picked up the Statewide single audit uh picked up the Statewide single audit
• <00:03:16.720> legal examinations like audits legal examinations like audits legal compliance
• Uh, audit fees are based on actual costs of conducting those audits.
• audit.
• audit.

Bills: HF627, HF474, HF361, HF1837

Keywords: HF627, fiscal note, fiscal notes, Minnesota Legislature, state government, committee procedure, ranking minority member, minority party, standing committee, Ways and Means, Finance Committee, legislative process, budget analysis, fiscal impact, Minnesota Statutes 3.98, committee chair, legislative transparency, HF474, Hubert H. Humphrey, Henry Mower Rice

Transcript Highlights:

• So agenda item one is the audit work plan, and then we will hear the performance audit on charter school
• This audit comes to us largely through some hotline requests received after our most recent audit, so
• we have conducted numerous audits through our performance audit function and our accountability audit
• an audit looking at Medicaid-managed care and the fee-for-service delivery models.
• audit objectives.

Summary: The committee meeting began with a brief explanation of the renamed Joint Legislative Audit Review Committee subcommittee, now called the Committee to Hear SAO Performance Audits, and a presentation from the State Auditor’s Office on its current biennium performance audit work plan. The auditor described how topics are selected from a large pool of potential audits and highlighted several ongoing or planned audits, including the Liquor and Cannabis Board, oversight of authorized entities serving students with disabilities, the Quality Home Care Initiative, Medicaid managed care versus fee-for-service costs, the Housing Commission tenant ownership follow-up, DSHS vendor payment patterns, implementation of the Since Time Memorial curriculum, and the Washington State ferry system. Members asked about coordination with JLARC to avoid duplication, and the auditor said the offices exchange work plans, monthly updates, and quarterly coordination meetings. The committee then heard the State Auditor’s performance audit on how charter schools identify and support at-risk students. Auditors reviewed four charter schools—Catalyst Public Schools, Innovation High School, Pinnacles Prep, and Rainier Prep—and focused on English language learners, homeless students, and special education students. The audit found the schools met nearly all legal requirements reviewed, with only one area where two schools partially met a language-access requirement. The schools also used several promising practices, including small-group instruction, culturally responsive environments, and multi-tiered systems of support, though the auditors recommended better documentation of procedures to improve consistency. Families interviewed generally reported positive experiences, while noting resource constraints. Committee members asked about how the four schools were selected, whether the audit compared charter populations to home districts, and how MTSS requirements applied to the schools reviewed. The State Auditor’s Office said the sample was chosen for geographic diversity, student population characteristics, and representation from both authorizers, and that K-2 MTSS requirements were not evaluated because they applied to only one school. Representatives from the Charter School Commission and charter school advocates responded positively, emphasizing technical assistance, collaboration, and sharing best practices across schools. Two public testifiers also supported the report and said it highlighted effective practices that could be expanded across charter and traditional public schools.

Transcript Highlights:

• We did do an audit of DTA. We did then. Last year, I believe it was. We did do an audit of DTA.
• I'm one of the audit directors here with the State Auditor's Office. I oversee our audits of...
• , we have been auditing.
• audit report rather than getting a bunch of small audits going and doing an audit of each agency, where
• part of larger, more comprehensive audits, a multi-agency audit, so to speak.

Keywords: 995, all

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

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:

• management.
• Post-election audit procedures, sponsored by the Management Audit Committee.
• From the Management Audit Committee, we have responsibility for oversight in administrative procedures
• I support post-election audits.
• Another one from the Management Audit Committee: removal of county officers for election code violations

Bills: SF0069, SF0070, SF0016, HB0078, HJ0002, HB0085, HB0086

Keywords: wastewater, stormwater, infrastructure, environmental quality, public data, data collection, funding, study, water development, irrigation, public works, agricultural supply, municipal water, grazing lands, subleasing, non-owned livestock, state lands, rental fees, agricultural policy, land management

Transcript Highlights:

• Welcome to House and Senate Legislative Audit.
• Management of the college notified the system's internal audit division of the fraud, and upon review
• , internal audit reported a total loss of $66,000.
• University management notified internal audit of the potential misappropriation, and upon review, $8,500
• Management has provided the response to each finding.

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:

• Minnesota Management and Budget.
• resolution of audit findings. resolution of audit findings.
• management policies and financial management policies and procedures. procedures. procedures.
• We simply want to audit letter.
• audit opinion. Thank you, uh, chairs. audit opinion. Thank you, uh, chairs.

Bills: HF2783

Keywords: state government finance, biennial budget, appropriations, Minnesota Management and Budget, Healthy Aging Subcabinet, Office of Healthy Aging, older adults, aging policy, long-term care, caregivers, public health, Medicaid fraud, medical assistance fraud, attorney general subpoena power, fraud enforcement, business filing fraud, Secretary of State, deceptive mailings, consumer protection, certified public accountant

Transcript Highlights:

• AS PART OF THE AUDITOR GENERAL'S AUDIT PROCESS THE ENTITY THAT IS THE SUBJECT OF THE AUDIT IS PROVIDED
• DEREK NOONAN CPA AN AUDIT MANAGER AT THE AUDITOR GENERAL OFFICE TO PRESENT THE TWO AUDITS CONDUCTED ON
• I'M HERE TO PRESENT THE RESULT OF THE AUDIT REPORT.
• THE FES AND FPC WHICH WERE THE FOCUS OF THIS AUDIT.
• A FINDING ABOUT THE STEP UP AUDIT WE HEARD EARLIER AS WELL AS THE DEPARTMENTS OPERATIONAL AUDIT WHICH

Transcript Highlights:

• And I think the audit is really good.
• And I think the audit is really good.
• Oftentimes we do these oversight requests or ask for these audits, and then the audit report comes and
• As part of this audit, and it wasn't part of our audit objectives or scope, we did not audit the judicial
• During our audit period, we selected three counties as required by that audit.

Summary: The Joint Legislative Audit Committee held an oversight hearing on the state auditor’s October 2024 report on California’s Forensic Conditional Release Program (CONREP) for sexually violent predators. Members and witnesses discussed public safety, the long delays in finding community housing, the role of local housing committees, and the Department of State Hospitals’ oversight of Liberty Healthcare, which operates much of the program. Several legislators from rural and high-desert districts said their communities have been disproportionately affected by placements and questioned why many placements end up in remote areas. State Auditor Grant Parks said the audit found that CONREP participants were convicted of new offenses less often than sexually violent predators who were unconditionally released, but that 18 of 56 participants had been revoked and returned to state hospitals for noncompliance. He said it took an average of 17 months to place current participants in the community, with 20 additional people awaiting placement for an average of 20 months, and that the program incurred significant pre-placement costs. Parks also said local officials were often unclear about their role, DSH had not given clear guidance at the time of the audit, and California lacks a transitional housing option used in some other states. He reported that DSH had implemented four of the five audit recommendations, while declining the recommendation to explore state-owned transitional housing. DSH Director Stephanie Clendendon and Liberty representative Ken Carabello defended the program as a court-ordered, highly supervised treatment model intended to reduce reoffending and support reintegration. They said DSH is actively involved in placement review, that Liberty searches countywide under statutory restrictions, and that community feedback and court approval are part of the process. DSH said it has now implemented guidance for housing committee designees, formal program reviews, an outcome tracker, and an analysis of whether to separate some Liberty services into different contracts. DSH continued to oppose transitional housing, arguing it would not solve the core siting and statutory problems and would add cost. Several members remained critical, arguing the program is broken, costly, and unfairly concentrated in certain communities, and some called for major statutory changes or suspension of the program.

Transcript Highlights:

• There, case management is a requirement for every family because we can have enough case managers to
• So it's a very manageable caseload size.
• There, case management is a requirement for every family because we can have enough case managers to
• So it's a very manageable caseload size.
• The audit covers 100 percent of the claims.

Bills: HB2048, HB2189, HB2248, HB2403, HB2728, HB2729, HB2730, HB2731, HB2906, HCR2058

Keywords: orders of protection, domestic violence, court procedures, legal guardian, enforcement, healthcare, licensed health aides, scope of practice, ventilator care, training standards, medical freedom, healthcare mandates, employment requirements, public health, government regulation, elderly, physical disabilities, Arizona Health Care Cost Containment System, home and community based services, funding increase

Summary: The committee first heard a presentation from Central Arizona Shelter Services (CASS) on homelessness in Maricopa County and CASS programs for single adults, families, and older adults. The witness described rising homelessness, especially among older adults, and said recent declines were linked to American Rescue Plan Act funding for shelters and flexible rental assistance. Members asked about CASS partnerships with mutual aid and service organizations; the witness described collaborations for food, banking, haircuts, digital access, and behavioral health. No vote was taken on this presentation. The committee then considered HB 2248, the Arizona Medical Freedom Act, which would bar businesses, schools, and government entities from denying services or employment based on medical interventions and limit employer medical requirements, with a school outbreak amendment adopted. Proponents framed the bill as protecting bodily autonomy and informed consent, while opponents argued it would weaken employers’ ability to control communicable diseases and protect public health. The committee adopted the amendment and advanced the bill on a 4-3 vote. It also advanced HB 2906, requiring one oral and maxillofacial surgeon on the State Board of Dental Examiners, and HB 2189, directing the Nursing Board to implement rules for licensed health aides performing routine ventilator care; both passed with amendments and strong support from sponsors and board representatives. Later, the committee approved HB 2403, appropriating $2.5 million in FY2027 for home- and community-based services providers serving elderly and physically disabled Arizonans. Supporters said the funding would help retain caregivers and reduce more expensive hospital or facility care. The committee also passed several continuation bills, including HB 2731 for the Physician Assistants Board, HB 2730 for the Occupational Therapy Board, and HB 2729 for the Nursing Board, all on largely party-line or near-unanimous votes after testimony from board staff emphasizing public protection and oversight. The committee then took up HB 2728, a DES continuation bill that also incorporated nine previously vetoed policy bills affecting SNAP, unemployment, and related benefits. Opponents argued it would make access to essential benefits harder and turn a routine continuation bill into a vehicle for controversial policy changes; supporters said it was needed for oversight and program integrity. The bill advanced on a 4-3 vote. Finally, the committee approved HB 2048, a strike-everything amendment requiring AHCCCS to treat a new non-opioid pain medication no more restrictively than opioids in utilization controls, and ACR 2058, which would require a comprehensive Medicaid claims audit funded by recoveries. Both measures drew support from sponsors and some personal testimony, while opponents warned about cost, duplication of oversight, and incentives that could bias audits; each advanced on 4-3 votes. The committee then adjourned.

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:

• <00:05:07.039> policies Minnesota's grants management policies Minnesota's grants management
• grants management policies and Statewide grants management policies and is<00:07:33.919> now<
• manage of management of required in the manage of management of Grants<00:13:13.880> so<00:13:
• managers said that they used electronic grants management systems.
• um the offensive grants this audit um the offensive grants management<00:46:03.680> did<00:46

Keywords: 1183, house

Summary: The committee heard a presentation from State Auditor Judy Randall and Deputy Legislative Auditor Jody Mason Rodriguez on the Office of the Legislative Auditor’s 2023 report, “Oversight of State-Funded Grants to Nonprofit Organizations.” Randall explained that the report takes a broad look at how Minnesota manages grants, building on earlier work that helped lead to the Office of Grants Management (OGM) in 2007. She emphasized that the new recommendation-tracking booklet in members’ packets is meant to help the legislature see which audit recommendations have been implemented, partially implemented, or not implemented, and to support oversight rather than assign blame. Rodriguez summarized the report’s findings: Minnesota’s grants management policies contain many important practices, but they often lack enough detail for agencies to implement them consistently. The office found pervasive noncompliance in recent years and identified weak statutory enforcement as a major reason. She reviewed how grants flow from the legislature to agencies and then to nonprofit grantees and subgrantees, and noted that state agencies spent an average of about $514 million annually on nonprofit grants from fiscal years 2018 through 2022, awarding grants to about 2,400 nonprofits. The report found OGM policies partially reflected 17 of 24 recommended grant-management practices, but examples of missing detail included no required risk-based monitoring, no minimum standards for progress reports, telephone-only monitoring visits allowed, and no deadline for closeout reviews. The auditors said some recommendations have been acted on since the report, including 2023 statutory changes that led OGM to revise its pre-award financial review policy and set a timeline for closeout reviews, though other recommendations remain only partially implemented. They also discussed repeat compliance problems across agencies, including conflict-of-interest documentation, and said agencies are beginning to improve by automating checklists and disclosure processes. In response to member questions, the auditors said training is important and should likely be required for grants staff, though not necessarily with highly specific statutory language; they also said grant managers vary widely across agencies, making baseline training especially useful. No votes or formal committee actions were taken during the presentation, and the chair noted that OGM would be invited for a future presentation.

Transcript Highlights:

• We do a lot of single audits, so it's kind of our...
• Audit fees are based on actual costs of conducting those audits.
• financial audit.
• by Minnesota Management and Budget.
• Now, it was not an audit we perform, but they're saying, "Wow, this audit is $15,000."

Bills: HF627, HF474, HF361, HF1837

Keywords: HF627, fiscal note, fiscal notes, Minnesota Legislature, state government, committee procedure, ranking minority member, minority party, standing committee, Ways and Means, Finance Committee, legislative process, budget analysis, fiscal impact, Minnesota Statutes 3.98, committee chair, legislative transparency, HF474, Hubert H. Humphrey, Henry Mower Rice

Transcript Highlights:

• Services in response to Audit Report 2025-1096 relating to fleet management. ...Department of Management
• Services in response to Audit Report 2025-1096 by the Auditor General relating to fleet management.
• You know, the Auditor General completed an operational audit of the Department of Management Services
• fleet management program.
• The Auditor General did indeed audit the fleet process and the fleet management system.

Summary: The Committee on Governmental Oversight and Accountability met for its first meeting of the session, took roll, and heard a presentation from Ken Plant of the Joint Administrative Procedures Committee on SB 108, the 2025 law overhauling Florida rulemaking. The presentation focused on new deadlines for agencies to begin and publish rules, limits on automatic sunset provisions, changes to emergency rule procedures, expanded public input on statements of estimated regulatory costs, a five-year review cycle for existing rules, and new licensing-reporting requirements. Members asked about the review timeline and emphasized the need to keep agencies accountable for meeting the new requirements. The committee then reviewed the Department of Management Services’ response to Auditor General Report 2025-1096 on fleet management. DMS said the audit found 10 issues, most of which it believes it has addressed, and described the statewide fleet system as tracking about 27,000 assets with limited staff. DMS highlighted two major improvement ideas that would require funding: an enterprise telematics system to automate vehicle data and improve tracking, and centralized fleet procurement to reduce duplication and save money. Members questioned the status of FleetWave implementation, missing vehicle records, integration with other state systems, and access controls for separated employees. DMS explained that FleetWave is fully implemented but still relies on manual data entry, that discrepancies with the state accounting system largely reflect mismatched or inconsistent entries, and that policies and procedures were updated after the audit. The department said it now works more closely with People First to deactivate access when employees leave. After discussion, no further business was raised, and the committee adjourned without objection.

Transcript Highlights:

• One of the not-so-pretty portions of our review involved reviewing the audits that were done by the managing
• So there are seven managing entities in the state of Florida, and all but one of them had audit findings
• It's the managers.
• And so instead of having a management style where you have more people underneath you and manage people
• Instead of having people manage people, it's one person managing another person.

Summary: The Health Care Budget Subcommittee met to review agency budgets, vacant positions, and possible efficiencies across several health and human services agencies. Members were asked to identify savings and potential areas for increased funding, and the discussion repeatedly focused on whether long-vacant FTEs, reversion of funds, and staffing shortages reflect true operational needs or broader budgeting and recruitment problems. The chair and members emphasized that the exercise was intended to help the committee make more informed budget decisions and to identify structural issues that may require legislative action. For the Agency for Persons with Disabilities, members highlighted a large waiting list, including individuals in crisis and children, and discussed whether vacant positions and unspent funds could be redirected to services. Several members raised concerns about delays in crisis applications, the use of paper applications, and whether the issue is staffing, process, or both. For the Department of Children and Families, the presenters discussed vacant positions, the use of staff augmentation in state hospitals, support for expanding behavioral qualified residential treatment program beds, and concerns raised by audits of the managing entities, which showed procurement and financial management problems. They recommended continued oversight, reporting requirements on Medicaid enrollees receiving mental health services through managing entities, and support for the governor’s proposed funding items. Other agencies reviewed included Elder Affairs, where members questioned the need for multiple divisions, CARES assessments, and supervisory overhead; the Department of Health, where vacancies, turnover, pay gaps, and units of rate were discussed as barriers to recruitment and retention; and the Department of Veterans’ Affairs, where the presenters said vacancies were tied to new nursing homes and recommended shifting a major priority into general revenue rather than trust funds. Throughout the meeting, members generally agreed that the vacancy review was eye-opening and suggested deeper, possibly separate, reviews of agency staffing, pay parity, and fund reversion practices. No formal votes were taken during the transcript.

Transcript Highlights:

• All right, we’re ready for the audit. Seeing none, I guess we’re ready to move to audit.
• I’m the Director of Audits for the LBA, and we’re here this afternoon to present the management letter
• Jim Laipier is a senior audit manager from our office.
• He was the in-charge manager on the audit, and he’ll present the report.
• Jim Laipier, senior audit manager, presents the report on the New Hampshire Liquor Commission’s fiscal

Keywords: 1189, house, all

Summary: The committee first approved the June 20, 2025 minutes, with several members abstaining, and then adopted the consent calendar after removing items 223 and 224 under tab five, item 222 under tab six, and item 231 under tab seven. The committee also noted that an old business item related to YDC claims administration would be removed at a future meeting because the fiscal year had closed and no further committee action was needed. The main substantive discussion centered on Department of Health and Human Services requests. Item FIS-223 would fund a shared database between the Department of Education and HHS to identify children eligible for the summer EBT program; members asked whether it could also help with Medicaid or school reimbursement tracking, but the witness said the item was specifically for summer EBT and that broader integration questions would need follow-up with Education and Medicaid staff. The committee then adopted the item, with Representative Mooney voting no. Item FIS-224 concerned the phrase "high quality services" in child care-related funding; HHS said the standards come from the federal Office of Child Care, and the committee adopted the item. Item FIS-222 related to Money Follows the Person; HHS explained it is a 100% federally funded program that supports transitions from institutions to community living with services such as housing navigation, furnishings, and case management. Members questioned the scale and cost of the program, and HHS said the initial federal award was $5 million, with additional federal IT funding later approved; the committee adopted the item, again with Representative Mooney voting no. Under tab seven, the committee discussed item 231 involving ARPA funds and the YDC project. The Department of Administrative Services explained that recent Treasury guidance allows leftover ARPA dollars from approved projects to be repurposed only for additional work on already approved projects, not new projects. Members asked about whether the project was over budget and whether some items had been in the original plan; officials said the work reflected add alternates from the original bid and that the project was on track to meet the deadline. The committee adopted the item. The meeting then moved to the audit presentation on the New Hampshire Liquor Commission’s fiscal year 2024 management letter, which identified 13 internal control comments, including two material weaknesses, largely tied to the new NextG system. Recommendations included strengthening controls, formal risk assessment, reconciliations to New Hampshire First, cash receipt controls, subsidiary ledgers, SOC reports for vendors, internal audit functions, lease accounting, gift card breakage reporting, and IT security and access controls. The Liquor Commission said it concurred with most findings, described the system transition as successful overall, and said remediation would continue; committee members asked for estimated completion dates for audit findings and discussed the need for more regular follow-up on audit issues and budget monitoring.

Transcript Highlights:

• Any independent audits?
• Most of the financial information is audited by the State Auditor's Office using the single audit and
• the agreed-upon procedures audit.
• So the auditing of that is done when the regular audit is done, but you all can run your own reports
• Our counselors are the case managers?

Keywords: 977, all

Summary: The committee met to receive a detailed financial operations presentation from the South Carolina Vocational Rehabilitation (VR) agency, with staff walking members through funding sources, budgeting, accounts receivable, accounts payable, and grants management. Sabrina Walker explained VR’s blended funding structure, including federal grants, state appropriations, program income, and interagency contracts, and emphasized that state funds are essential to meeting the federal match and maintenance-of-effort requirements. Members asked repeatedly about transparency, audit controls, and the risk that state cuts could reduce federal drawdowns; staff responded that all reports reconcile back to the SCEIS accounting system, are subject to state audits and internal reviews, and that even modest state reductions could significantly reduce total available funding. The committee also discussed pre-employment transition services for students with disabilities, with staff confirming services are offered through school districts, charters, and private schools, and that contracts are monitored for performance and compliance. The presentation then shifted to budgeting and internal controls. Walker described a zero-based departmental budgeting process, monthly monitoring reports, contingency reserves for unexpected expenses, and a formal annual cycle that culminates in board approval. Members asked about facilities tracking, culture, and how the agency maintains accountability; staff said facilities staff inspect buildings and equipment, supervisors justify line-item requests, and the process has become smoother over time as departments learned the system. Cynthia Johnson followed with an accounts receivable overview, describing invoicing, receipting, aging, customer verification, year-end reporting, and the use of cross-training, shared email inboxes, and spreadsheets as checks and balances. She also explained work training center billing, interdepartmental transfers, and the revolving fund used to issue consumer checks more quickly than standard vendor payments. Olivia Perez presented accounts payable operations, including invoice processing through SCEIS and OnBase, the three-way match, travel reimbursements, revolving fund checks, State Treasury Office interactions, and handling of reversals, rejections, and levy notices. She reported that AP processed 67,723 SCEIS payments, 13,670 case management system invoices, 3,379 travel reimbursements, and 15,693 revolving fund checks in fiscal year 2025, with only 70 payment rejections. The final portion of the meeting covered Grants and Funds Management, where Walker explained federal reporting, drawdowns, payroll allocation, asset tracking, lease and IT contract reviews, cost allocation, and closing packages. She noted upcoming system changes such as S/4HANA, Workiva, and SC Pro, but said the agency is receiving training and feedback opportunities. No formal votes or legislative actions were taken during the presentation portion beyond approval of the prior minutes and a brief recess.

Transcript Highlights:

• We've also hired a contracts and compliance unit manager who has experience with audits to support improved
• Roughly, the audits referenced here conduct internal audits and coordinate external audits, so the internal
• > oh<01:05:10.200> the<01:05:10.359> audits roughly internal audits oh the audits
• audits so the and coordinates external audits so the internal internal internal audits<01:05:16.359>
• audits of the programs.

Keywords: 1183, house

Transcript Highlights:

• committees and the full Legislative Joint Audit Committee this month.
• The committee filed three audit reports and deferred one audit report that were brought before it.
• So I guess a quick follow-up: I saw the management response.
• Did y'all catch this before, or was it when the audit happened?
• Audit does a tremendous job of putting this stuff together.

Summary: The committee first approved the minutes from the prior meeting and then heard several audit-related reports. The executive committee report noted audit and special reports were scheduled for standing committees and the full Legislative Joint Audit Committee, with one requested report still in progress. The City, County, and Local report covered delinquent private water and sewer audits, reinstatement of turnback funds for entities that filed required reports, and action involving the town of Daisy, which was directed to repay misused street funds at 10% of general fund revenue annually. The education and state agencies reports included higher education audits and state agency findings, with some reports filed and others deferred to the February meeting for additional information or corrective-action details. The committee then took up a special audit of the Charles W. Donaldson Scholars Academy at UA Little Rock. Legislative Audit reported that the program, funded with $10 million in desegregation money plus a $50,000 grant, awarded $1.87 million in scholarships to 379 students, with 116 graduates, but found numerous eligibility and disbursement problems, including scholarships to ineligible students, excessive awards, improper documentation, and unclear disposition of some assets. Committee members questioned UALR representatives about oversight, staffing, and whether funds were properly used, and also heard from Philander Smith College about its limited role in verifying enrollment. Members expressed concern about the program’s results and the lack of detail on accountability, and the committee voted to table the report until the next meeting for further review and requested additional information, including the federal court order and more detail on expenditures and oversight. Finally, the committee reviewed the annual disposition report on matters referred to prosecutors and the Attorney General for 2024. Staff said 164 matters were referred, with 28 resulting in criminal charges and convictions, 39 still under review, 96 not charged, and others dismissed or pending; 20 convictions produced fines, restitution, and audit-cost orders, and bond trust fund claims were paid in some cases. Prosecutor Coordinator and Attorney General representatives explained that some referrals do not meet criminal standards, may lack intent, or are otherwise not prosecutable, and members asked for more standardized reporting, clearer explanations of why cases are not charged, and more information on restitution efforts. The committee discussed possible templates, training, and better coordination, then voted to file the report and adjourned, with the next meeting set for February 12, 2026.

Transcript Highlights:

• , case manage... yeah, thank you. ...to actually manage case management.
• This is the annual audited Achieved Savings Rebate Report that all of our statewide Medicaid managed
• We also receive audited statutory accounting financial statements from all of our Medicaid managed care
• This is the annual audited Achieve Savings Rebate Report that all of our statewide Medicaid managed care
• We also received audited statutory accounting financial statements from all of our Medicaid-managed care

Summary: The Health Care Budget Subcommittee took up two bills and then continued oversight discussions with APD and AHCA. CS/HB 27, the Social Work Licensure Interstate Compact, was presented as a way to let Florida social workers practice in other compact states and vice versa; AARP, the Florida Chamber, and NASW Florida supported it, and the bill passed favorably. HB 1127, a child welfare bill, would create a treatment foster care pilot for children with high behavioral needs, improve DCF data collection on commercially sexually exploited children, and expand recruitment for protective investigators and case managers; the bill also passed favorably after brief supportive testimony. The committee then questioned APD at length about the iBudget waiver waitlist, enrollment pace, spending projections, and provider capacity. APD said it had sent more than 1,100 interest letters in categories 3, 4, and 5, enrolled 1,124 people so far this year, and expects to spend about 96.4% of its waiver appropriation, leaving roughly $82 million unspent. Members pressed APD on why prior discussions suggested more reserve was needed, how long the SANS process takes, whether category 6 could be expanded, and whether the agency has enough waiver support coordinators and direct support providers. APD said it has about 1,061 waiver support coordinators statewide, adequate capacity for current enrollees, but would need further analysis if the legislature directed a much larger enrollment increase. Members also asked about outreach, annual maintenance of the waitlist, portability for military families, and whether communication efforts should be privatized. Finally, AHCA walked the committee through the 2023 Achieved Savings Rebate (ASR) report for Aetna and explained how the report is used for financial monitoring, rebate calculations, and transparency. AHCA said the ASR is separate from the medical loss ratio (MLR) calculation, though both are reviewed, and that Florida uses the ASR mechanism rather than an MLR remittance requirement to recover funds from plans. Members asked about related-party disclosures, CVS/Caremark relationships, expanded benefits, encounter data, network adequacy penalties, denials and appeals reporting, interest earned on capitation payments, and whether rate increases were reaching providers. AHCA and the outside auditors said they review the plans’ reported data, reconcile it to underlying records, and can assess liquidated damages for network adequacy violations; several members requested follow-up data on rebates, interest, provider capacity, and related-party reporting.