Bills: HF2779, HF1645, HF1885, HF1289, HF1534, HF2707, HF1675, HF3046

Keywords: health care transparency, ownership disclosure, control reporting, health care consolidation, private equity, management services organization, MSO, provider organization, health insurer, pharmacy benefit manager, hospital system, affiliate reporting, financial disclosure, public reporting, market concentration, horizontal consolidation, vertical consolidation, health care ownership, corporate practice, health care regulation

Transcript Highlights:

• Derek Noonan, an audit manager with the Auditor General's Office, will present the results of this audit
• The 2022-23 audit report hasn't been filed yet.
• Five procurements, just shy of a million, lacked evidence of advertisement, and three procurements were
• It varies by audit.
• These are ones that haven't turned their audit in at all, and those are ones where the audit has come

Summary: The Joint Legislative Auditing Committee heard the Auditor General’s operational audit of the City of Mexico Beach, which identified nine findings. The audit cited significant turnover in key management positions, late filing of required annual financial reports, weaknesses in competitive procurement and purchase approval controls, a duplicate payment on stormwater repairs that was later largely refunded, issues with the city accountant’s contract and IRS classification, IT access control problems, and the lack of fraud-reporting policies. Committee members asked about corrective action, and the Auditor General said a follow-up audit is required by statute within 18 months, with no enforcement authority beyond reporting progress back to the committee. Mayor Rich Wolf and city staff responded that the city had experienced major turnover and was rebuilding its finance and administrative team. He said the city had hired a city administrator, financial director, city clerk, and accounting firm, and was working to create policies, procedures, forms, and review processes to address the findings. Members discussed whether the turnover and hurricane-related workload contributed to the problems, and city officials said some of the larger purchases were storm-related and tied to FEMA or emergency work. The committee then received a staff update on enforcement for local governments that have not filed required financial reports. Staff said 400 entities had been notified, and as of the meeting two counties, 33 municipalities, and 48 special districts still owed reports or audits. The committee adopted a motion to proceed under section 11.42, Florida Statutes, including possible withholding of state funds for municipalities and enforcement actions for special districts, with authority for the chair and vice chair to delay action if new information warranted it. Finally, the committee unanimously directed the Auditor General and OPPAGA to conduct the required 2024-2025 audit of the Department of the Lottery, with the Auditor General handling financial, internal control, and compliance issues and OPPAGA developing operational recommendations. Members also briefly discussed whether the committee had reviewed transportation surtaxes and expressed interest in improving the timeliness and transparency of the audit and enforcement process before adjourning.

Transcript Highlights:

• Audit request 2026-107, Department of Human Resources, dental benefits procurement.
• Audit request 2026-107, Department of Human Resources, dental benefits procurement.
• I'm pleased to present an audit to evaluate the Department of Human Resources' dental benefit procurement
• I'm pleased to present an audit to evaluate the Department of Human Resources' dental benefit procurement
• I am an aye recommendation on this audit, 206-107, Department of Human Resources, dental benefits procurement

Summary: The Joint Legislative Audit Committee met to hear new audit requests and receive a status update from the State Auditor. The auditor reported 10 JALAC audits in progress, noted that all 2025-approved audits are underway, said the first 2026 audit is focused on DMV license revocations, and described several statutory and high-risk audits already in progress. The committee also approved a consent calendar of four audit requests: UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then considered Assembly Member DeMaio’s audit request on SANDAG road project management. DeMaio argued the audit was needed to examine whether transportation funds, including voter-approved and restricted revenues, were used for allowable purposes and whether past management failures warranted outside review. SANDAG’s CEO and CFO said the agency already undergoes extensive oversight and audits, that funds are tracked by multiple “colors of money,” and that internal controls have improved. Several members questioned whether the issues were already addressed in public records or existing audits, and the request failed on a roll call vote. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, arguing that more transparency is needed on outcomes, recidivism data, and oversight of grantees. The BSCC said it already has oversight mechanisms, that the State Controller conducts biennial audits, and that program data shows positive outcomes. The committee approved the audit unanimously. Senator Cortese then presented an audit of CalHR’s dental benefits procurement and Delta Dental contract, citing long-standing benefit caps, provider network concerns, and retiree out-of-pocket costs. CalHR said its network remains strong, that it recently completed an RFP adding MetLife as a second carrier starting in 2027, and that contracts include performance guarantees. Members from both parties expressed concern about access and competition, and the audit was approved unanimously. The committee then completed add-on votes on the consent calendar and adjourned.

Bills: SB248, SB985, SB1307, SB1319, SB1405, SB1530, SB1919

Keywords: tourism, revolving fund, Oklahoma Tourism and Recreation Department, real property, fund management, Oklahoma Local Food for Schools, school meals, local food procurement, farm to school, school districts, Department of Agriculture, Food and Forestry, local producers, meat processors, reimbursement program, agriculture, nutrition, farmers, ranchers, local sourcing

Bills: SB1246, SB1510, SB1979, SB1929, SB1930, SB1976, HCR1019, SB1459, SB1673, SB1500, SB1447, SB1646, SB2007, SB1275, SB2074

Keywords: environmental permitting, Oklahoma, Department of Environmental Quality, public participation, regulatory framework, administered applications, energy, wind energy, financial assurance, property restoration, environmental regulation, mining, blasting, residential protection, buffer zone, Department of Mines, public utilities, electric transmission lines, landowner rights, payment regulations

Bills: S0332, S0464, S0576, S0830, S0964, S0984, S1096, S1296, S1298, S1612, S1656

Keywords: public records, public meetings, property rights, transcripts, settlement negotiations, Veterans Day, K-12 schools, holiday observance, education, Florida statutes, cybersecurity, local government, grant program, data-sharing, Florida Digital Service, ransomware protection, county administrators, city managers, exemption, privacy

Summary: The committee first heard a committee substitute for SB 332, which creates a narrow public meetings and public records exemption for certain pre-suit settlement communications in Bert Harris claims involving local governments and private property rights. The sponsor said the change is intended to allow confidential legal strategy and negotiation during the 90-day pre-suit period while keeping settlements and outcomes public. The strike-all amendment was adopted, supportive testimony was waived in, and the bill was reported favorably. Members then approved several other measures, including SB 464 requiring K-12 schools to formally observe Veterans Day as a school holiday; SB 984 on firefighter cancer benefits and prevention, which was amended to add a statement of important state interest and reported favorably after testimony from firefighters both supporting the bill and urging a longer benefit window; SB 576 on local government cybersecurity, which was amended to route the program through the Florida Digital Service and strengthen state-local coordination; SB 964 clarifying how certain gift and honoraria disclosures are filed with the Commission on Ethics; SB 1612 requiring local governments to accept electronic payments with a delayed effective date; SB 830 creating public records exemptions for certain local government administrators and their families; SB 1096 clarifying the filing deadline for employment discrimination complaints; and SB 1656 designating the SS American Victory as Florida’s official state flagship. All were reported favorably. The committee also considered a slate of appointments, including a separate vote on Jeffrey Aaron to the Public Employees Relations Commission, which was recommended favorably after Senator Polsky objected to the appointment and cited concerns about political ties and prior work. The remaining appointees on tabs 12 through 30 were also recommended favorably. After a recess, the committee took up SB 1296 on the Public Employees Relations Commission, as substituted by a committee PCS. The PCS would change union certification and recertification rules, require stronger showing-of-interest and voting thresholds, limit paid union leave in some cases, require equal access to employer communication spaces, and speed up impasse procedures for state-funded salary increases. The bill drew extensive testimony, with supporters arguing it would improve accountability, transparency, and taxpayer fairness, and opponents—many of them teachers, bus drivers, and other public employees—saying it would weaken collective bargaining, burden workers, and function as union busting. Members raised constitutional concerns about the single-subject rule and collective bargaining protections, and debate was ongoing at the end of the transcript.

Transcript Highlights:

• I think that is something that the board would have to take up if they did an audit or if they did an
• We're always audited on something. We do chart reviews and all that.
• the Medical Facility Infrastructure Loan Fund, and the expiration date ensures proper oversight and audit
• all executive branch agencies to use a content scanning and monitoring tool that has already been procured

Bills: HB1621, HB1624, HB1623, HB1622, HB1625, HB1626, HB1627, HCR3038

Keywords: presidential physical fitness test, physical education, fitness assessment, student fitness, school curriculum, graduation requirements, elementary school, middle school, high school, public schools, nonpublic schools, superintendent of public instruction, exceptions, disability accommodations, North Dakota studies, computer science, cybersecurity, health education, concept-based fitness class, school standards

Summary: The North Dakota House convened in special session with prayer, roll call, and a quorum present, then took up several rural health-related bills. Senate Bill 2401, as amended, required physicians to complete one hour of continuing education in nutrition and metabolic health each renewal cycle and also added language allowing criminal history background checks for the Board of Occupational Therapy Practice. Supporters emphasized the role of nutrition in reducing chronic disease, and the bill passed 92-0. The House then considered Senate Bill 2402, which expanded pharmacists’ limited prescriptive and therapeutic substitution authority for certain low-acuity conditions and clarified related lab-test and communication requirements. Members discussed examples such as motion sickness, cold sores, lice, hypoglycemia, COVID and flu testing, emergency access to medications and supplies, and limits excluding certain drug classes; the bill passed 91-1. Senate Bill 2403 created a temporary medical facility emergency operating loan option through the Bank of North Dakota for qualifying rural hospitals facing severe financial distress, with extensive debate over the targeted nature of the aid, anti-gifting concerns, repayment terms, and the hospital’s turnaround plan; it passed 80-12. Senate Bill 2404 appropriated funds for NDIT to address federal digital accessibility requirements and for the Public Service Commission’s litigation efforts related to transmission costs, with a backup loan authorization available if needed; it passed 92-0. At the close of the session, leaders thanked members and staff for their work on the rural health transformation package, a committee notified the Governor and the Senate that the House had completed its business, absent members were excused, and the House adjourned sine die.

Bills: HB1621, HB1624, HB1623, HB1622, HB1625, HB1626, HB1627, HCR3038

Keywords: presidential physical fitness test, physical education, fitness assessment, student fitness, school curriculum, graduation requirements, elementary school, middle school, high school, public schools, nonpublic schools, superintendent of public instruction, exceptions, disability accommodations, North Dakota studies, computer science, cybersecurity, health education, concept-based fitness class, school standards

Summary: The North Dakota House convened in special session with prayer, the Pledge of Allegiance, and the reading of communications from the Secretary of State and Governor Kelly Armstrong certifying the special session call. The governor’s executive order said the session was called to act on funding for the Rural Health Transformation Program so the state could accept and appropriate federal funds and avoid interruptions to government services. Three new members, Representatives McNally, Scraw, and Timmons, were sworn in, and the roll showed 91 members present, establishing a quorum. The main business was a Rules Committee report outlining temporary special-session rules. The changes were designed to speed up floor action, including allowing second reading the same day a bill is reported from committee, final passage one day after first reading, and immediate transmission to the other chamber unless reconsideration is noticed. The report also replaced the regular standing committee structure with two joint committees: Joint Appropriations and Joint Policy, allowed remote testimony and remote member participation with approval, and limited bill introduction to Legislative Management-approved bills or bills approved by a two-thirds vote. Several deadline changes for resolutions and bill filing were also described, with some provisions delayed until the special session ends. The House adopted the Rules Committee report after a motion by Representative Bosch and no opposition. During announcements, the clerk listed the membership of the Joint Appropriations and Joint Policy committees, and the Highway Patrol announced safety sessions for legislators in the Rough Rider Room at 11 a.m. that day and the next day. The House then recessed until the joint session scheduled for 10 a.m. the following day.

Bills: SB8, SB650, SB667, SB779, SB1349, SB1355, SB1378, SB1585, SB1721, SB2312, SB 8

Keywords: immigration enforcement, ICE agreements, sheriff grants, law enforcement, county jail, federal immigration law, China, Chinese-affiliated entities, Chinese military companies, People's Republic of China, Chinese Communist Party, divestment, state pension funds, public retirement systems, Teacher Retirement System, Employees Retirement System, Permanent School Fund, Texas Comptroller, foreign investment, national security

Transcript Highlights:

• audit work.
• Audit request 2026-107, Department of Human Resources, dental benefits procurement.
• Audit request 2026-107, Department of Human Resources, dental benefits procurement.
• An audit to evaluate the Department of Human Resources dental benefit procurement process and contract
• I am an aye recommendation on this audit: 206, 107, Department of Human Resources, dental benefits procurement

Keywords: 987, senate, all

Summary: The Joint Legislative Audit Committee met to consider new audit requests and received a status update from the State Auditor, who reported 10 JALAC audits in progress, several statutory audits underway, and that all audits approved in 2025 are moving forward. The committee first approved a consent calendar covering audits on University of California library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. One requested audit on local law enforcement and human trafficking had been withdrawn before the hearing. The committee then debated and approved an audit request from Assembly Member DeMaio on the San Diego Association of Governments (SANDAG) and its road project management and use of transportation funds. DeMaio argued the audit was needed to examine whether restricted funds, voter-approved revenues, and project commitments were properly used, while SANDAG officials said the agency already undergoes extensive oversight and that its funding sources and project uses are governed by multiple existing audits and reporting requirements. Several members questioned whether the audit would duplicate existing reviews, but the motion passed after roll call. Next, the committee approved Senator Valadares’s audit request on Board of State and Community Corrections Proposition 47 grant administration. Supporters said the audit would assess whether grant recipients and BSCC oversight are producing reliable outcome and recidivism data and whether the funds are achieving public safety goals; BSCC responded that it already has internal controls, that the State Controller conducts biennial audits, and that its reported outcomes show reductions in homelessness, unemployment, and recidivism among participants. The committee also approved Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight, prompted by concerns about stagnant annual maximums, provider network losses, and out-of-pocket costs for employees and retirees. CalHR said its current dental network remains strong, that it recently completed an RFP adding MetLife as a second carrier beginning in 2027, and that it maintains performance guarantees in its contracts. All three regular-calendar audit requests were approved, and the committee then completed add-on votes approving the earlier consent calendar items before adjournment.

Transcript Highlights:

• That was about the financial audit and, um, the so I'm talking about the performance audit, the audit
• the performance audit the talking about the performance audit the audit<02:11:12.960> that<02
• state procurement oral violations? state procurement oral violations?
• guys contracts or procurement guys contracts or procurement violations?
• per the chief procurement officer. per the chief procurement officer.

Keywords: 912, senate, all

Summary: The joint House Committee on Tourism and Senate Committee on Economic Development and Tourism held an informational briefing on the Hawaii Tourism Authority’s interim action plans, current projects, contract updates, destination management action plans, and state auditor findings. Interim CEO Caroline Anderson described her role as temporary and said she was focused on identifying problems, gathering information, communicating with stakeholders, and implementing solutions. She said HTA is now operating as a typical state agency subject to state controls, but noted that HTA’s work often involves nontraditional programs that can create process errors. She also said she had directed staff to review the auditor’s findings on the destination management action plan process and that the review was posted publicly. A major topic was the search for a permanent CEO and the agency’s restructuring under SB 1571. HTA board chair Tata Po said he hoped to select a CEO within about four months, with three to six finalists expected in roughly two to two-and-a-half months, and said the job description would largely remain the same except for compensation and reporting changes under the new law. Department of Business, Economic Development and Tourism representatives explained that HTA’s board is now advisory and does not approve the budget, while DBEDT retains budget authority. They also said HTA is working with the governor’s office and DBEDT on contract and budget transitions, including a possible shift to a calendar-year process so grantees and contractors have more certainty. Members pressed HTA on staffing, oversight, and accountability, especially around the destination stewardship team and the CNHA/Kilohana and HVCB contracts. HTA said the destination stewardship team supports destination management and product development, including workforce development, sports, and implementation of destination management action plans, and that staff provide direction to contractors rather than simply handing work over to them. Anderson said the stewardship team had 11 people and that the destination management side covered about 15 contracts, while the branding side had three managers overseeing nine contracts. She said the agency had 47 contracts overall and that the major contracts included CNHA/Kilohana and HVCB. Several members criticized HTA’s management history, questioned staffing qualifications and compensation, and expressed concern that the agency had lost public trust. No votes or formal actions were taken during the briefing.

Transcript Highlights:

• audit.
• I mean, there were audits; the last audit was 2021, I believe, and that audit was clean, and there were
• I mean, there were audits, the last audit was 2021, I believe, and that audit was clean, and there were
• We can move down to our final finding in this audit, and it relates to a procurement item.
• audit.

Summary: The committee was called to order, the Pledge of Allegiance and prayer were offered, and the minutes from the previous meeting were approved. Members then received a memo summarizing major audit items and began hearing audit presentations from the State Auditor’s Office and private auditors on a range of state agencies and organizations. Several audits were reported as clean, including the Bank of North Dakota, the North Dakota Guaranteed Student Loan Program, the Office of the Governor, the Office of the State Treasurer, the Office of Management and Budget, the Department of Transportation’s flexible transportation fund, Lake Region State College, and the Department of Environmental Quality. The North Dakota Stockmen’s Association also received an unmodified opinion, though repeat findings were noted for limited segregation of duties and financial statement preparation due to its small staff. The Council on the Arts audit found two findings: payroll charged to federal awards without adequate timekeeping records, and unallowable expenditures from a restricted cultural endowment fund. The Department of Public Instruction audit identified unsupported scholarship applications in the paraprofessional-to-teacher program, though additional testing showed the funds were used for their intended purpose. The most extensive discussion centered on the North Dakota Racing Commission audit, which identified four findings: overspending the promotion fund’s 25% operating limit, grant conditions not being met, improper Breeders Fund awards, and improper procurement for advertising services. Racing Commission director Bruce Johnson acknowledged complacency and weak controls, said the agency would tighten procedures, and explained that the commission had since worked with procurement and would follow the rules more closely. Auditors also explained that the commission would now be audited every two years because of the findings. Another major discussion involved the University of North Dakota School of Law, where auditors found a lack of documentation supporting admissions decisions for post-baccalaureate programs. UND officials said they remain in good standing with the American Bar Association but agreed better documentation and tools are needed; the committee pressed for more transparency and follow-up on admissions criteria. The committee also received an update on Dakota College at Bottineau, where Minot State University reported that bank reconciliations had been brought current after a significant backlog and would now be maintained through shared services. Members requested a written follow-up report on the issues and corrective actions. Finally, the North Dakota Fair Association explained that its foundation has been dissolved and remaining funds were transferred to another nonprofit for continued support of the state fair, and the Department of Public Instruction provided an update on school meal debt, saying the reported amount was about $1.1 million from a partial district survey and that debt remains a local issue, though it could be revisited if school meal funding changes.

Transcript Highlights:

• That was about the financial audit and um the so I'm talking about the performance audit, the audit that
• the performance audit the talking about the performance audit the audit<02:09:27.920> that<02
• guys contracts or procurement guys contracts or procurement violations?
• Okay, I'm just going to share out that our procurement team has a procurement tracker, a report on procurement
• per the chief procurement officer. per the chief procurement officer.

Keywords: 910, house, all

Summary: The joint House and Senate tourism briefing focused on the Hawaii Tourism Authority’s interim action plans, current projects, contract oversight, destination management action plans (DMAPs), and the impact of recent legislation and audit findings. Interim CEO Caroline Anderson said she accepted the temporary role to help address agency challenges, emphasized rebuilding trust, and said HTA is reviewing the state auditor’s concerns and posting its response publicly. She also described HTA’s mission and organizational structure under SB 1571, including reporting lines to the governor, the director, and the board, and outlined staff additions in finance, brand marketing, destination stewardship, and planning. A major topic was the permanent CEO search. HTA board chair Tata Po said the goal is to select a CEO within about four months, with the search firm still engaged, the position description being revised to reflect the new law and compensation changes, and approvals still needed before the job can be reposted. Members expressed frustration that the recruitment had been paused and questioned whether HTA has sufficient qualified leadership and staff during the interim period. Board leadership said the current staff is limited by vacancies but that they have confidence in the team and will add resources if needed. Members also pressed HTA on the role of the destination stewardship team and the CNHA/Kilohana contract, asking how staff oversight works and whether staff members were effectively wearing multiple hats. HTA explained that the stewardship team provides direction to contractors and that the work is divided among specialists overseeing projects such as tour guide certification, technical assistance, community tourism collaboratives, and a destination app. The committee also discussed whether the board can still vote on budgets under the new structure; the Attorney General’s office was cited as confirming that the board may advise, but the department director retains budget authority. HTA said it is working with CNHA and HVCB on contract and budget timing, with a goal of shifting to a calendar-year process so recipients know funding earlier.

Transcript Highlights:

• , Areas of century code related to procurement or specifically procurement of concessions, both OMB and
• , areas of century code related to procurement or specifically procurement of concessions, both OMB and
• Director of Audit Services.
• The last audit they had was 2018.
• Next one is IT procurement. Next one is IT procurement.

Summary: The task force reviewed survey results from state agencies on potential statutory revisions, with Levi reporting 70 proposals from 20 agencies and noting that about 33 might become agency pre-file bills. Members discussed the need to share the survey more broadly within higher education and to better coordinate issues involving IT and other cross-agency functions. The task force then heard from the Office of Management and Budget on three topics: concessions, architect/engineering pre-qualification, and legal notices. OMB said the concessions law is outdated and inconsistent with current practice, and suggested a collaborative rewrite to allow best-value evaluation, raise the threshold, and standardize solicitation templates. On architect/engineering pre-qualification, OMB proposed expanding authority beyond current state-agency limits and creating uniform templates. On legal notices, OMB proposed modernizing publication requirements, exploring online and abbreviated notices, and working with newspapers and other stakeholders on technology and accessibility improvements. Members asked about where concession revenues go, whether political subdivisions must follow the same rules, and how to move from discussion to action. The task force agreed to have OMB work with Legislative Council and affected stakeholders to develop bill drafts, and the motion passed unanimously. The University of North Dakota then presented a series of proposed revisions focused on public buildings and procurement. UND asked to rework the definition of construction so routine maintenance and one-for-one replacements over $250,000 would not automatically trigger public-improvement requirements, suggested raising the threshold to $500,000, and asked for more flexibility based on project complexity and risk. UND also proposed changes to public bid advertisements to reflect electronic bidding, revisions to construction manager-at-risk selection criteria, changes to architect/engineer procurement rules, an increase in the direct-hire design threshold, and a higher legislative-consent threshold for privately funded projects. The task force supported having UND work with counsel and OMB to develop bill drafts, and that motion also passed. The Department of Public Instruction concluded with proposed cleanup to credentialing and education statutes. DPI recommended reviewing its credential categories for relevance, possibly transferring credentialing authority to the Education Standards and Practices Board, removing outdated school safety patrol language, clarifying waiver provisions, and updating dyslexia screening reporting requirements so the statute reflects current practice. Members focused mainly on whether the dyslexia reporting requirement should remain, and DPI said the screening itself would continue even if reporting language were revised. No votes were taken on DPI’s suggestions, and the task force recessed after the presentation.

Transcript Highlights:

• So, while the Office of Procurement Services manages the procurement of commodities and services for
• just for a one-time procurement just for a one-time procurement commodity.
• <01:03:39.920> documents, understand the procurement documents, understand the procurement
• integrity of the procurement process. integrity of the procurement process.
• . procurements. procurements.

Keywords: 958, all

Transcript Highlights:

• We will examine the tools at our disposal. procurement, contracting oversight, auditing mechanisms, and
• Conduct audits.
• So in this audit, of this forensic audit...
• Our audit scope.
• of financial audits.

Keywords: 1184, house, all

Transcript Highlights:

• this audit.
• I mean, there were audits; the last audit was 2021, I believe, and that audit was clean, and there were
• We can move down to our final finding in this audit, and it relates to a procurement item.
• This was a clean audit.
• audit.

Keywords: 908, all

Transcript Highlights:

• So, a very clean audit.
• audit.
• I mean, there were audits—the last audit was 2021, I believe—and that audit was clean, and there were
• We can move down to our final finding in this audit, and it relates to a procurement item.
• audit.

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• , Areas of century code related to procurement or specifically procurement of concessions, both OMB and
• , areas of century code related to procurement or specifically procurement of concessions, both OMB and
• He's my director of audit services.
• The last audit they had was 2018.
• Next one is IT procurement. Next one is IT procurement.

Keywords: 908, all

Transcript Highlights:

• future audits.
• One was responsiveness throughout the duration of the audit.
• So if you're referring to the audit report that you'll be soon getting a copy of, this audit report did
• Procurement milestones are progressing as scheduled.
• Procurement for this pilot is underway.

Summary: The subcommittee heard two Department of Children and Families implementation updates on measures passed in prior sessions. First, DCF reviewed House Bill 633, which increased oversight of behavioral health managing entities through biennial independent audits, standardized claims-based reporting, and new monthly outcome dashboards. The department said it had awarded the inaugural audit to Ernst & Young, found no significant waste, fraud, or abuse, but identified process risks involving financial controls, claims validation, data access, and system access controls. DCF also described its transition to standardized behavioral health coding and said the new public dashboard of 11 measures is posted on its website, though members asked for easier access and for hard copies of the audit report. Members asked about how the department distinguishes Medicaid-covered services from department-funded services, how duplicate payment risks are being addressed, and whether the new reporting and audit requirements would improve oversight without disrupting services. DCF said it is the payer of last resort for uninsured or underinsured individuals, that some overlap with Medicaid is expected because Medicaid does not cover all behavioral health services, and that new claims edits and cross-checks are being built into the system. The department also said it had not found significant negative feedback from providers and that the new requirements are intended to improve transparency and accountability. DCF then updated the committee on Senate Bill 7012, covering human trafficking data collection, domestic violence center certification, limited background-screening exemptions, expanded recruitment for child welfare staff, subcontractor liability protections, a four-year treatment foster care pilot, case management efficiency recommendations, and a statewide study of residential bed capacity for child victims of commercial sexual exploitation. The department said several items are already complete or underway, including limited exemptions in the screening clearinghouse, while others are in procurement or rulemaking. It identified Circuits 4 and 12 as the treatment foster care pilot sites and said the pilot will launch in January 2026. Members questioned recruitment metrics, pilot timing, and report deadlines; the department said final reports are expected by January and that some dates were flexible because of procurement and implementation timelines. The meeting ended after the presentations and questions, and the subcommittee adjourned.