Transcript Highlights:

• They resolved prior audit findings.
• <00:57:31.720> that<00:57:31.880> the findings the first finding was that the findings
• So I'm just going to cover two of the findings and also our survey response findings.
• So I'm just going to cover two of the findings and also our survey response findings.
• <01:14:50.400> eight findings from 2016 and finding eight findings from 2016 and finding eight

Keywords: 1187, senate, all

Summary: The committee first heard Senate File 563, a bill to change the board makeup of the Northern Koochiching Area Sanitary District. Senator Hild said the proposal had been heard the previous year and had broad support from local officials and stakeholders. Cali Briggs, the district’s executive director, explained that the board structure no longer reflected current populations and sewer service patterns: International Falls now holds six of eight seats after earlier consolidations, while East Koochiching has grown through sewer expansions and should receive additional representation. The bill would reduce the board to seven members, with International Falls having three seats, East Koochiching two, Rainier one, and one at-large member chosen by the board. The committee raised no substantive objections, and Senator Gustafson moved the bill to pass and go to general orders; the motion prevailed. Members then briefly joked about the topic and moved on to an overview from the Office of the Legislative Auditor. Legislative Auditor Judy Randall described the office as a nonpartisan legislative branch agency serving both chambers, with a mission of strengthening oversight, promoting accountability, and producing objective, useful reports. She outlined the office’s structure, including financial audits, program evaluations, and a growing special reviews unit, and explained the Legislative Audit Commission’s role in appointing the auditor and selecting program evaluation topics. Randall also emphasized the office’s broad access to records and data, its independence, and its responsibility to protect nonpublic information. Randall answered questions about the office’s authority over entities such as the University of Minnesota, explaining that OLA has audit authority there but often relies on the university’s internal audit function and can also conduct special reviews and program evaluations. She noted that public employees are required to cooperate and that subpoenas are available if needed, though the office prefers to maintain cooperative relationships. Special Reviews Director Katherine Tyson then described how her unit handles complaints and allegations involving misuse of public funds, data, or noncompliance with law, including preliminary assessments, communications with complainants and agencies, and deeper reviews when warranted. She said allegations and reports have increased steadily, with 481 received from 2020 through 2024 and nearly 10 per week on average last year, contributing to a heavier workload for her small team.

Transcript Highlights:

• As you can see on the screen... ...14, 2026 of our positive findings.
• Today, I will be presenting audit findings we issued that relate to the child...
• finding.
• We will not be meeting until July 2027 to hear the findings of that report. Mr.
• I know a lot of the findings in your reports were lack of recordkeeping.

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.

Transcript Highlights:

• uh what you will find is dementia party uh what you will find is dementia is<00:02:19.480> not
• It doesn't require a written finding for that, but it in fact becomes a written finding almost every
• , and it is a written finding.
• , and it is a written finding.
• , they make findings.

Keywords: 00:00:00 Call to Order/Roll Call 00:01:20 Discussion of 25RS HB 479 00:03:22 Roll Call Vote on 25RS HB 479 00:04:51 Discussion of 25RS HB 574 00:21:49 Roll Call Vote on 25RS HB 475 00:23:41 Discussion of 25RS HB 291 01:04:38 Roll Call Vote on 25RS HB 291 01:05:42 Adjournment, 958, all

Summary: The House Standing Committee on Families and Children met and first took up House Bill 479, which would require one hour of dementia training for DCBS workers. Representative Derrick Lewis and the Alzheimer’s Association said the bill was a straightforward, bipartisan effort to address dementia awareness and improve worker training, with no fiscal impact. Members spoke in support, including remarks about personal family experiences with dementia and the importance of recognizing symptoms early. The committee voted 11-0 to pass the bill with favorable expression. The committee then heard House Bill 574, the “Baby Maya” child protection bill, sponsored by Representatives Dossett and Lewis. The bill would require reporting when a child is born to a parent who previously had children removed for neglect or abuse, create a rebuttable presumption allowing the Cabinet for Health and Family Services to make an initial safety determination, authorize emergency custody procedures, and name the measure the Baby Maya Law. Sponsors said it was intended to add guardrails after the Baby Maya case and stressed that it would not automatically remove children or add new mandatory-reporter penalties. Members asked about hospital involvement, HIPAA, and information-sharing; the Cabinet commissioner said the agency would be open to better data-sharing with hospitals, but currently has no such system. The bill passed 12-1 with favorable expression. Finally, the committee considered House Bill 291, the Family Preservation and Accountability Act, with a committee substitute. The bill would expand sentencing alternatives for primary caregivers convicted of nonviolent offenses, allowing judges to consider family status and use options such as counseling, parenting classes, and related services. Supporters argued it would keep families together, reduce harm from parental incarceration, and save money; one witness cited a report estimating $4 million in direct incarceration savings and broader economic benefits. Another witness, Amanda Hall, gave emotional testimony about the long-term harm of parental incarceration and said access to help would have been better for her family than prison. The committee adopted the committee substitute and passed the bill 12-1 with favorable expression.

Transcript Highlights:

• Those are: one, a finding of no conflict of interest under the statute and Senate rule; two, a finding
• Two, a finding of conflict of rule.
• A finding of the conflict of interest.
• Second, a finding of conflict. motion. Second, a finding of conflict.
• finding on 2023. finding on 2023.

Keywords: 1187, senate, all

Transcript Highlights:

• , consecutive invalid findings.
• So let's say there's a finding.
• In the prior two studies, they've received a valid finding, the finding that the Professor Schultz of
• Or was just the two previous findings that they had received, that evaluate the findings based on educational
• Yes, we certify both. preliminary findings and the final findings for the school district property value

Keywords: 1184, house, all

Transcript Highlights:

• If we do suspect that, we have the ability to find.
• Finding nine deals with the OPP rule promulgation.
• Finding 10 dealt with Sentry System access controls.
• Finding nine deals with the OPP rule promulgation.
• Finding 10 dealt with Sentry System Access Controls.

Summary: The Human Services Subcommittee met to receive updates on implementation of House Bill 1349, which created guardianship transparency measures, and on the Department of Elder Affairs’ Office of Public and Professional Guardians (OPPG). The Clerk of Courts Operations Corporation described the statewide guardianship database for judges and a public-facing website, noting the system went live in March 2025 after a soft launch in 2024. Officials said the database now includes information from all 67 clerks, with 388 users, about 6,400 wards, and 518 professional guardians. Members asked about unique identifiers, data duplication, training, and how the system is being used; CCOC said it is working to use registration numbers as identifiers, improve search functions, expand training, and seek continued funding. Secretary Michelle Branham then outlined OPPG’s implementation of HB 1349 and its broader oversight role. She said the department has doubled education requirements, expanded transparency through the Sentry system, and brought investigations fully in-house in August 2024. She described the complaint and investigation process, including legal sufficiency review, regional investigators, mandatory in-person interviews, and possible outcomes ranging from corrective training and fines to suspension or revocation. Members asked about complaint categories, disciplinary actions, whether guardians can be suspended during investigations, and how older cases are handled; the secretary said most complaints are administrative/technical, serious allegations are referred to law enforcement, and one older case discussed remained ongoing. The Auditor General’s office presented its operational audit of OPPG, covering July 2022 through January 2024 and follow-up on prior findings. The audit identified problems with monitoring private professional guardians and public guardian offices, complaint processing timeliness, incomplete public profile information, late registration renewals, failure to assess contract penalties, weak collection safeguards, missing follow-up on required public guardian reports, lack of needed rules, and Sentry system access/security controls. In response, Secretary Branham said the department does not dispute the findings and has already taken corrective steps, including launching Sentry, hiring additional monitors, moving investigations in-house, adding automated renewal reminders, updating forms, and drafting new rules. She also said the department plans to seek subpoena power and stronger fines in the next legislative session. The subcommittee took no formal vote and adjourned after members’ questions were completed.

Transcript Highlights:

• You could receive an invalid finding and be in glacier 1, gracier 2, or you can have an invalid finding
• , consecutive invalid findings.
• The finding that the, the, I'm sorry, in the prior 2 studies, they've received a valid finding.
• Findings versus the median sale prices.
• Yes, we certify both preliminary findings and the final findings for the school district property value

Transcript Highlights:

• This isn't about fault finding. It's an opportunity.
• We've minimal findings, but we are very well aware and very well on our way to curing those findings
• If we find the audit is necessary, my particular personal feeling is that we're going to find more, and
• And then the last finding in terms of the summary of findings is to talk through, under two different
• In short, we can't find a reason for the town to exist.

Summary: The Joint Legislative Auditing Committee met to consider several audit requests and enforcement items related to local government accountability. The committee heard requests for operational audits of the City of Miami Beach, the Delray Beach Downtown Development Authority, and the City of Daytona Beach. In each case, the requesting member cited concerns about transparency, financial management, or compliance with state law. Representatives from Delray Beach DDA testified that an internal audit had already been completed, that findings were limited, and that they were working to cure issues such as procurement, credit card, and disbursement policies; the DDA chair also said the organization was willing to cooperate and was considering transitioning out of operating Old School Square. For Daytona Beach, the sponsor pointed to excess building permit revenues, vehicle purchases, and reported P-card irregularities as reasons for a broader audit. The committee approved all three audit requests, directing the Auditor General to finalize the scope while considering the stated concerns. The committee also received a presentation on the statewide performance reviews of 21 neighborhood improvement districts. The reviewers reported that 15 districts were active and six inactive, with common issues including outdated or missing performance plans, weak web presence, inadequate meeting notices, and limited management mechanisms. They said staffing levels often correlated with the ability to meet statutory requirements, and recommended that several districts be reviewed to determine whether they were still needed. Members asked about staffing, inactivity criteria, and how the districts were administered, and staff explained that city or county liaisons often supplement district staffing. Later, staff reviewed enforcement actions for local governments that failed to file required financial reports or omitted required information from submitted audits. The committee discussed a list of noncompliant counties, municipalities, and special districts, including the town of Rayford, which staff said had long-standing reporting problems, no apparent municipal services, and no response to repeated outreach. The committee voted to send a letter to the Union County legislative delegation encouraging a local bill to dissolve Rayford. It also approved staff recommendations to proceed against entities still missing required filings or missing audit information, with authority for the chair and vice chair to delay action if additional information is later provided in good faith.

Transcript Highlights:

• This isn't about fault finding. It's an opportunity.
• We've minimal findings, but we are very well aware and very well on our way to curing those findings
• If we find the audit is necessary, my particular personal feeling is that we're going to find more, and
• And then the last finding, in terms of the summary of findings, is to talk through under two different
• In short, we can't find a reason for the town to exist.

Summary: The Joint Legislative Auditing Committee met to consider several audit requests and enforcement items involving local governments and special districts. The committee approved operational audits of the City of Miami Beach, the Delray Beach Downtown Development Authority, and the City of Daytona Beach. In each case, the requesting member described concerns about transparency, financial management, or internal controls, while local officials or representatives generally said they were willing to cooperate and, in Delray Beach’s case, noted that an internal audit had already been completed and that some issues were being corrected. The committee also received a presentation on the statewide review of neighborhood improvement districts. The reviewers reported that 15 of 21 districts were active and six inactive, with common findings including outdated or missing performance plans, weak web presence, inadequate meeting notices, and limited management mechanisms. They said staffing levels often correlated with the ability to meet statutory requirements, and they recommended updates to district governance and transparency practices. On enforcement, staff reviewed local governments and special districts that had failed to file required financial reports or had submitted audit reports missing required information. The committee approved staff recommendations to proceed under the statutory enforcement process for the noncompliant entities, with flexibility for the chair and vice chair to delay action if additional information is provided in good faith. The committee also voted to send a letter to the Union County Legislative Delegation encouraging a local bill to dissolve the Town of Rayford, based on staff’s view that the town lacked employees, services, debt, and a clear reason to continue existing as an incorporated municipality.

Transcript Highlights:

• However, we also consider USFR-related findings in our office's performance audit reports and follow-up
• Today, I will be presenting audit findings we issued that relate to the child...
• , and I will review those issues on the next two slides, as well as some prior year findings.
• finding, certainly if we're finding things that need further clarification or they have records that
• We will not be meeting until July 2027 to hear the findings of that report. Mr.

Keywords: 1182, all

Transcript Highlights:

• Then the second section is the key findings or recommendations.
• And the second section is the key findings or recommendations.
• “Any questions, feedback on the key findings?
• So with that in mind, those are kind of the key findings.
• Key findings.

Keywords: 995, all

Summary: The special commission on xylazine met virtually to review and discuss the first draft of its final report. Chair Mindy Domb opened the meeting, confirmed quorum, and the commission approved the minutes from its December 11 public meeting. Staff then walked commissioners through the proposed report structure, including background on xylazine as both an FDA-approved veterinary drug and an illicit drug supply contaminant, as well as appendices for public meeting materials and public resources. The commission discussed findings and recommendations for several working groups. For oversight and enforcement, members focused on licit versus illicit sources of xylazine, noting that the illicit supply is typically obtained through online vendors rather than diverted from veterinary use. Recommendations included better storage and reporting practices in authorized settings, review of manufacturing and distribution information, and focusing enforcement on fentanyl trafficking and large-scale xylazine importation rather than personal possession. Commissioners also discussed whether xylazine should remain in Schedule 6 or be subject to additional penalties, and several members emphasized the need for coordination, information-sharing, and possibly a DPH task force or advisory body to monitor emerging drug threats. For outreach and treatment, staff summarized strong existing programs such as drug checking, wound care education, naloxone distribution, mobile and low-threshold care, and self-directed wound kits, while noting gaps including the lack of an FDA-approved reversal agent for xylazine, difficulty distinguishing xylazine from other exposures, and uneven access by geography, insurance, and audience. Commissioners stressed the need for provider education, including physicians, nurses, pharmacists, family support networks, and first responders, and for clear guidance on wound care and when more intensive treatment is needed. The education and training section identified first responders, clinicians, non-clinicians, and people who use drugs and their families as key audiences for tailored, stigma-free materials, with emphasis on real-time, centralized data, naloxone and breathing support, recognition of overdose versus xylazine exposure, and adapting materials as the drug supply changes. The meeting ended with discussion of next steps: staff will circulate a revised draft by March 2, the commission will meet again on March 9 to consider the report and recommendations, and an additional late-March meeting was reserved if needed before the statutory deadline.

Transcript Highlights:

• Responses to those findings are collected from the agencies, and they are submitted along with the findings
• Responses to those findings are collected from the agencies, and they are submitted along with the findings
• In addition to the single audit finding process discussed earlier, In addition to the single audit finding
• discuss those types of findings after the single audit findings.
• The findings and the evidence The findings in the FY24 single audit were presented to and filed by the

Summary: The Medicaid Subcommittee of the Legislative Joint Auditing Committee met to adopt the November 2018 minutes and receive a primer on the subcommittee’s role and Medicaid oversight in Arkansas. Legislative audit staff reviewed the subcommittee’s history and explained that Medicaid is audited annually through the statewide single audit because it is a high-risk federal program. Staff summarized recent audit findings, including weaknesses in eligibility and data-matching controls, improper use of Medicaid funds for partially non-Medicaid work, issues with incarcerated juveniles’ coverage, the absence of a Medicaid recovery audit contractor program exception request, reporting problems involving MFCU recoveries, and provider eligibility documentation concerns. Staff also noted a DHS departmental audit finding involving employees who improperly received benefits, which was referred for further action. The Department of Human Services gave an overview of Medicaid’s structure, eligibility, delivery systems, and budget. DHS described Arkansas Medicaid as covering about 850,000 people through fee-for-service, managed care, and premium assistance for the expansion population, and outlined major spending categories such as institutional care, long-term services, pharmacy, capitated payments, and supplemental payments. DHS also explained the difference between state plan amendments and waivers, and said it has a beneficiary-fraud unit that refers cases to local prosecutors. The Office of Medicaid Inspector General described its role in detecting and preventing fraud, waste, and abuse, distinguishing between suspensions for credible allegations of fraud and recovery actions for mistakes or overpayments. OMIG said it works with DHS and law enforcement, issues quarterly and annual reports, and has increased recoveries in recent years. The Attorney General’s Medicaid Fraud Control Unit explained that it prosecutes provider fraud criminally and civilly, can also handle long-term care neglect, abuse, and exploitation cases, and works with local prosecutors as special deputies. Committee members asked about court venue, provider suspensions, beneficiary fraud, education of providers, and the status of Medicaid expansion work requirements; DHS said it is preparing to implement community engagement requirements under HR 1 and will begin with a soft launch before full enforcement. No formal votes were taken beyond adoption of the minutes, and the meeting adjourned after questions were answered.

Transcript Highlights:

• We just need to find them and help them find us.
• We just need to find them and help them find us.
• We just need to find them and help them find us.
• We just need to find them and help them find us.
• We just need to find them and help them find us.

Keywords: 958, all

Summary: The August 2025 interim meeting of the Commission on Race and Access to Opportunity began with roll call, confirmation of a quorum, approval of the June meeting minutes, and welcoming a new member, Ivonne Smith, who noted her background in MWBE and DBE work. The chair also offered condolences to a member whose father recently passed away and explained that the committee had invited agency officials to answer questions raised at the prior meeting. The first presentation was from Singer Buchanan of the Kentucky Finance and Administration Cabinet, who described the state’s equal opportunity and contract compliance office and its certification programs for service-disabled veteran-owned small businesses and minority/women business enterprises. He outlined outreach efforts, including partnerships with veterans’ organizations, the Kentucky Department of Veterans Affairs, UK, and transportation-related groups; explained that the programs are intended to expand market access rather than provide grants; and said the office has moved to an online application portal that has processed 227 new applications since December 2023. He reported 536 total vendors across the programs, including 29 service-disabled veteran-owned small businesses, and said the office is considering website testimonials to improve outreach. Members asked about staffing, application assistance, and whether the state program conflicts with federal policy; Buchanan said the office has three staff members and that the program is state-funded and, based on legal advice, should continue under Kentucky law. Tony Yusefi of the Kentucky Transportation Cabinet then presented on the federal Disadvantaged Business Enterprise program. He explained the program’s legal basis under federal DOT regulations, its eligibility standards, and its purpose of creating a level playing field while helping firms grow and eventually compete without assistance. He described certification requirements, annual documentation, prompt-payment protections, commercially useful function reviews, good-faith effort requirements, and sanctions for violations. He also discussed barriers facing DBEs, including access to capital, bonding, insurance, training, and prequalification requirements, and noted that 50 firms were removed last month for noncompliance with annual documentation rules. Yusefi said the cabinet has expanded supportive services, including an online application platform, bid notifications, and a nine-class business development program; 95 DBEs are enrolled this year, and the bid-matching system reaches an average of 377 DBEs monthly.

Transcript Highlights:

• It's making me curious in terms of, like, the findings.
• Findings and recommendations can be much broader.
• I'll find a better term. I think it's a great... I'll find a better term. I think it's great.
• Recommendations, findings on that aspect of this working group's mission? Yeah, yes, I guess so.
• So, you know, if you find background information, findings, recommendations, data, really, that's all

Keywords: 995, all

Summary: The working group on best practices for oversight and enforcement met for its first session and focused on xylazine, including its legal veterinary uses, its appearance in the illicit drug supply, and whether it should be classified as a controlled substance. Members discussed the distinction between pharmaceutical-grade and non-pharmaceutical-grade xylazine, the role of international/illicit sourcing, and the limits of state-level regulation if the substance is already being added to fentanyl or other drugs outside the Commonwealth. The Department of Public Health representative summarized the agency’s view that scheduling xylazine could follow the “ironclad law of prohibition” and push the market toward other, potentially worse substances, and said DPH opposed straight scheduling in favor of education, support, and harm-reduction approaches. Veterinary members explained how xylazine is used in large-animal and research settings, why it is useful, and why federal-style scheduling could create practical burdens for veterinarians who work in the field. They also described reversal agents such as yohimbine and atipamezole (Antisedan), and noted that xylazine is not commonly used in small-animal practice. Several members raised questions about how much xylazine is actually used legally in Massachusetts, whether boards of pharmacy or distributors could provide useful data, and what other states have done. Arizona and Florida were mentioned as possible examples for further research, along with the need to examine stakeholder opposition and any effects on legitimate veterinary practice. The group agreed to divide into two subgroups: one focused on oversight and regulation of production/distribution, and another on whether xylazine should be classified as a controlled substance and what penalties, if any, should apply. Staff said they would circulate notes, a draft PowerPoint template, and a shared folder, with members asked to submit materials by December 2, draft materials due December 4, and final approval by December 9 ahead of the next public meeting on December 11. The meeting ended with a motion to adjourn, a second, and unanimous closure.

Transcript Highlights:

• Folks, let's go ahead and find your seats. Ladies and gentlemen, go ahead and find your seats.
• There were 52 audit reports with no findings and five audit reports that contained findings.
• The second finding relates to the finance director.
• The first finding relates to legislative audit issued two management letter findings.
• The second finding relates to the finance director.

Keywords: 1204, all

Transcript Highlights:

• Finding one was related to unauthorized purchases.
• This concludes the findings for the University of Arkansas System.
• Management has provided the response to each finding.
• They had findings related to misstatements in their financial statements.
• Members, are there any questions about any of these findings?

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:

• These are audit findings that have been repeated in three successive audit reports.
• These are audit findings that have been repeated in three successive audit reports.
• We provide a cause for what the finding is, and we provide an effect.
• that are significant within the scope of the current audit findings.
• findings and recommendations section of the report.

Summary: The Joint Legislative Auditing Committee met to receive annual overviews of its oversight responsibilities and the work of the Auditor General and OPAGA. Committee staff reviewed the committee’s authority over state and local governments, enforcement of audit-report filing requirements, repeated audit findings, Transparency Florida reporting, and lobbying compensation audits. Auditor General Cheryl Norman described her office’s independence, audit standards, quality control, and major audit areas, including the state’s annual financial and single audits, school district and university audits, operational and performance audits, and attestation work. She also noted staffing shortages, recruitment efforts, and a request for carry-forward funds to study salaries. Members asked about whether audits can quantify recoverable dollars, how school district spending comparisons are handled, and how to raise concerns about DCF-related audits or a local city audit that has been pending for years. Norman said her office can quantify findings when possible, sometimes compares costs across districts in operational audits, and that members can bring specific concerns to the appropriate deputy auditor general or the committee. She also explained that citizen or local-government audit requests may require payment of audit costs. OPAGA Coordinator Kara Collins-Gomez outlined OPAGA’s role as a legislative research unit that conducts studies directed by law, the presiding officers, or the committee, and described its policy areas, methodologies, contract monitoring, and recurring statutory reports. Deputy Auditor General Matthew Tracy explained how to read operational audit reports, including findings, criteria, condition, cause, effect, recommendations, and management responses. Deputy Auditor General Greg Senators explained financial audit reports, including audit opinions, required supplementary information, internal control and compliance findings, federal program compliance, and management letters. The meeting concluded with thanks to the presenters and a motion to adjourn, which passed without objection.

Transcript Highlights:

• Anybody else on finding five? >> Okay. Anybody else on finding five? Okay, finding six.
• Finding eight.
• Anything else on finding eight? All right. Finding nine.
• Okay, finding 10. I keep wanting to say Finding Nemo. Finding 10.
• Finding number 11. [laughter] Finding number 11.

Keywords: 958, all

Summary: The Medicaid Oversight and Advisory Board reconvened and heard a presentation from the Attorney General’s Office Medicaid Fraud and Abuse Control unit. AG staff described the unit’s structure and work: it investigates and prosecutes Medicaid provider fraud, and also handles abuse, neglect, and exploitation cases involving vulnerable adults in facility settings when asked to assist. They said the office has prosecutors, detectives, auditors, and support staff, works with federal partners, Commonwealth’s attorneys, CHFS, DMS, OIG, and MCOs, and uses a hotline and referral line for complaints. They also explained the MCO referral process, including monthly meetings, stand-down lists, and review of referrals for a “credible allegation of fraud” before the AG office decides whether to open a criminal or civil investigation. The presentation focused heavily on current fraud trends. Staff said behavioral health is a major concern, along with participant-directed waiver services, medically assisted treatment, cash billing for services, controlled-substance billing, and vision and dental fraud. They gave examples such as duplicate time sheets for family caregivers, questionable Suboxone counseling and urine drug screening practices, and a prior optometry case involving false claims for children’s glasses. They also discussed CMS’s estimate that about 5% of Medicaid payments are improper, noted that most improper payments are at the fee-for-service level, and said there is no reliable overall fraud-rate estimate. They highlighted a sharp shift in behavioral health billing after the cabinet’s November 1, 2024 policy changes, saying individual psychotherapy spending dropped while group billing increased, suggesting providers may have moved billing to different codes. Members asked about the scale and timing of cases, how MCO referrals are screened, and whether the data reflected more people being served or just higher spending. The AG office said investigations can take years, with some federal cases still awaiting sentencing from 2018 and 2019 matters, and that they currently had nine individuals awaiting sentencing in federal court. They also reported 58 hotline reports during the referenced period, six cases opened from MCO referrals, and four additional MCO referrals not accepted for active cases. Several members raised concerns about home-based services and the risk of abuse or fraud when family members are reimbursed, and asked whether the process could be streamlined; the AG office said it had no immediate recommendations but would be willing to return with suggestions after further review.

Transcript Highlights:

• Um, where can one find this list of courses Where can one find this list of courses that's offered?
• Hey, I can't find this on Department of Audit.” ...Hey, I can't find this on Department of Audit.”
• that expertise or can find a CPA.
• Because it's got an opinion letter, it's got their findings if they had any findings, um, to show that
• So, I thought I find it very curious So, I thought I find it very curious that a CPA was brought in.

Keywords: 916, all

Transcript Highlights:

• but I will be making a motion to find but I will be making a motion to find these<00:15:20.839><
• So the question is on the motion to find So the question is on the motion to find these<00:15:35.440
• > the<00:15:38.320> regulation in favor of finding the regulation in favor of finding the
• I I would hate to find these deficient. I I would hate to find these deficient.
• <00:30:15.080> uh that we had to find uh that we had to find uh you<00:30:15.840> know,

Keywords: 958, all

Summary: The committee first reviewed several Fish and Wildlife regulations. Staff explained amendments to 301 KAR 2:176, 4:112, and 6:030, including updating wildlife control tag language, creating an impoundment agent program for seized wildlife, and clarifying boating safety rules. A member raised a concern about boat wakes near docks, and staff said the commission had recently voted on related changes that were not yet included because the regulation had been filed earlier; those changes would have to come back later. The committee approved the staff amendments without objection. The Board of Veterinary Examiners then presented 201 KAR 16:767, which would require veterinary managers to be physically present during business hours and limit them to five registered facilities. Board representatives said they had tried to meet with affected parties before the hearing but had not reached agreement. A representative for Kentucky Pet IQ argued the rule was written for full-service hospitals and would be impractical for short, limited-service clinics that only provide vaccinations, preventive care, and parasite testing. Members expressed concern about the rule’s impact on veterinary access in underserved areas, and the committee voted to defer the regulation until the next month so the parties could continue negotiating. The committee next considered Transportation Cabinet 601 KAR 9:120, the online insurance verification system, in both ordinary and emergency form. The chair said staff had identified conflicts with a bill passed the prior year and moved to find the regulations deficient. The motion passed on a roll call vote, with six ayes and two pass votes. The committee then found ordinary ABC regulations 804 KAR 12:020 and 12:030 deficient as well, again by six ayes and two pass votes, after noting that the emergency versions had already been found deficient the previous month. Finally, the committee reviewed Cabinet for Health and Family Services 902 KAR 55:110, which would require veterinarians to report dispensed controlled substances to KASPER while exempting administered medications. OIG staff said the rule was meant to align regulation with statute, which includes veterinarians as prescribers, and emphasized that the reporting duty applies to prescriptions, not administration to animals. Some members supported the change as a needed anti-diversion measure, while others worried about implementation burdens and timing. After discussion, the committee found the regulation deficient by a 6-2 vote. The meeting then moved into full review of 922 KAR 1:565, a Department for Community Based Services rule implementing kinship care provisions from Senate Bill 151; staff said it was needed for implementation once funding is available, but a member criticized the two-year delay and the inclusion of language conditioning implementation on funding. A public witness from the Kinship Families Coalition argued the rule should not shift the 120-day application window in a way that could affect federal funding eligibility and urged the committee to reject the regulation as written.