Transcript Highlights:

• AND THAT IS THE PRESENTATION ON WHERE WE ARE IN THE AUDIT.
• TO ANSWER SOME THINGS THAT ARE IN THE CURRENT AUDIT.
• THE DATA WILL COME TO YOU THEN WHO DOES THE AUDITING?
• THESE ARE THINGS WE WILL HAVE TO BUILD INTO THE PROCUREMENT.
• AS PART OF THE AUDIT RESPONSES WE DID UPDATE OUR POLICIES AND PROCEDURES.

Transcript Highlights:

• Where you we does procurement, right?
• They do have the ability to ask procure.
• <00:38:32.600> around procurement around procurement around I<00:38:33.880> mean<00:38:
• And then we do know that these audits cost in the tens of thousands of dollars.
• you know, pay for their own audits. you know, pay for their own audits.

Bills: SB3326

Keywords: renewable energy, energy storage, cost reduction, public utilities commission, Hawaii energy policies, 910, house, all

Summary: The joint committees on Energy and Environmental Protection and Labor heard SB 3326, a bill concerning a study of separating transmission from generation in Hawaii’s electric system. Testimony was largely opposed. Life of the Land argued that true separation on an isolated island grid has not been shown to work anywhere and said the bill would waste taxpayer money. Hawaiian Electric and the Public Utilities Commission also opposed the measure, saying Hawaii already uses competitive bidding for new generation, that the bill would add cost, complexity, and reliability risks, and that a new study would duplicate prior work. In response to questions, the PUC explained its existing competitive bidding framework and said it had not seen an island system fully restructure in this way. The chair then amended the bill’s intent to require the PUC to open a proceeding for an independent, comprehensive analysis of the state’s energy pathways, including cost reduction, financial risk, state energy goals, and reliability, rather than narrowly focusing on separation. Both committees voted to pass SB 3326 SD2 with amendments, with the Energy committee adopting the recommendation unanimously and the Labor committee adopting it with one reservation and two no votes. The Energy and Environmental Protection Committee then took up SB 2497 SD2, which would require electric utilities other than cooperatives to provide transparent, publicly accessible customer bill impact analyses and annual reports to the PUC. The Department of Commerce and Consumer Affairs and the PUC offered comments, with the PUC supporting the intent. Life of the Land said the proposed disclosure requirements would be too complex for most ratepayers to use meaningfully, while Hawaiian Electric said the bill could raise costs and slow projects, though it acknowledged some of the language changes and said much of the information is already available through existing planning and regulatory processes. Hawaii Clean Power Alliance and one individual testified in support. No vote was taken on SB 2497 SD2 during the excerpt. The committee also heard SB 3183 SD2, which would bar higher-income taxpayers from claiming the renewable energy technologies income tax credit for certain residential solar systems and would change refundability rules. The Department of Taxation, the Hawaii State Energy Office, and the Tax Foundation offered comments, while the Hawaii Solar Energy Association and numerous companies and individuals opposed the bill. Opponents raised concerns about impacts on financing models and the solar market. Members asked the Department of Taxation for data on how credits are claimed by homeowners versus third-party owners and on the refundability of the credit; the department said it did not have the information immediately available but would follow up. The chair indicated decision-making would likely be deferred to allow further review, and no vote was taken in the excerpt.

Transcript Highlights:

• Do you follow the procurement code? Do you follow the model procurement code?
• <01:38:02.400> program any issues uh across an audit program any issues uh across an audit
• to do higher level audit analysis. to do higher level audit analysis.
• You require us to send a bill to the agencies that we audit to pay for the cost of that audit.
• questions that I know you're auditing questions that I know you're auditing um<01:52:00.320>

Keywords: Meeting Start 00:00:00 Roll Call 00:00:27 Legislative Research Commission 00:01:15 KentuckyWired Operations Company 00:17:30 Wireless Internet Service Providers Association 00:40:15 Administrative Office of the Courts 01:08:55 Kentucky Auditor of Public Accounts 01:33:00, 958, all

Summary: The committee first approved the July 9 minutes without objection and heard from Jay Hartz and Jonathan Harris of the Legislative Research Commission. Members asked about Capitol and legislator security in light of recent targeted shootings in other states. Hartz said LRC had removed members’ home addresses from its website, was reviewing other state-government records for similar information, and was working with the Speaker, Senate President, Kentucky State Police, and outside security experts on broader safety measures. He also said LRC is exploring commercial products to help block personal contact information from public view, but declined to name vendors publicly. Harris added that driver’s license scans at the Capitol are handled by Kentucky State Police, while LRC has a process for flagging high-volume or concerning contacts for police review. The LRC also reported that redistricting work has already begun, with census coordination underway, evaluation of redistricting software including Mapitude and open-source tools, and plans to make the same tools available to the public in the LRC library. The committee then heard from Kentucky Wired Operations Company CEO Robert Morphonius, COO Tom Snyder, and counsel Patrick Hughes about the Kentucky Wired network. They explained the corporate structure: Kentucky Wired Operations Company is a private for-profit special purpose entity that designs, builds, operates, and maintains the network; Kentucky Wired Infrastructure Company is a nonprofit instrumentality used for financing; and Open Fiber Kentucky handles commercialization of excess capacity under a wholesale agreement. They said Kentucky Wired Operations is in the operations and maintenance phase, with those obligations continuing until 2045, and that technical changes to the network generally require KCNA approval through formal change-order processes. They also said the company conducted a market test in June 2023 under Schedule 19 of its contract, considered proposals including Open Fiber and the incumbent service provider, and retained the existing provider. Members asked about KCNA’s role, procurement, network customers, and revenue. The witnesses said Quac operates outside normal state procurement because its process is governed by contract, while KCNA acts as the Commonwealth’s oversight authority and filter for changes. They identified current network users as including AOC, KCTCS, postsecondary education, and other Commonwealth agencies, with all requests routed through KCNA; they also said a separate change process for Exceliccom is in litigation. On funding, they said the operation is paid through monthly appropriations, with roughly a million dollars a month for the service provider and a couple hundred thousand for Quac’s oversight, not including debt service, which is bundled into the availability payment. The discussion ended as members began asking about responsibility for damage-related costs such as squirrel-related outages.

Transcript Highlights:

• Normally in procurement, it is, just as Levi said, what is the scope of the procurement.
• Normally in procurement, it is, just as Levi said, what is the scope of the procurement.
• In state procurement, the way we operate our procurement is that there is a finite— the solicitation
• OMB provided clarification that alternate procurements—let me explain an alternate procurement in the
• It's not an audit. It's not a bill.

Keywords: 908, all

Transcript Highlights:

• Normally in procurement, it is, just as Levi said, what is the scope of the procurement.
• In state procurement, the way we operate our procurement is that there is a finite, you know, the solicitation
• In state procurement, the way we operate our procurement is that there is a finite, you know, the solicitation
• OMB provided clarification that alternate procurements—let me explain an alternate procurement in the
• It's not an audit. It's not a bill.

Summary: The task force first approved the March 25, 2026 minutes as amended, including a correction removing language that suggested the auditor’s office would contract with a security vendor. Members then moved to a bill draft on concessions (LC 27.0161.00000), which would raise the competitive solicitation threshold from $25,000 to $50,000, allow requests for proposals in addition to bids, clarify that proceeds go to the entity’s operating fund or general fund, and make other technical updates. OMB explained the draft and answered questions about scope, fragmentation, vendor restrictions, school districts, and whether concession proceeds could be directed to nonprofits; OMB said the draft could be refined further, including clarifying covered entities and contract length. No vote was taken on the draft during the discussion. OMB also reported on other survey items. It said a proposal to broadly allow agencies to create pre-qualified architect/engineering/land surveying vendor pools would not move forward, because the existing authority is working well for the agencies that already have it. On legal notices, OMB said it has been working with the North Dakota Newspaper Association on modernization, including an ADA-compliant online notice system and possible statutory updates to reflect changing technology and notice definitions. On click-through agreements for routine IT purchases, OMB and the Attorney General’s office said policy clarification—not statutory change—was enough, and the $20,000 threshold was intended to distinguish low-dollar adhesive contracts from purchases where terms can be negotiated. The committee also heard that OMB and the Center for Distance Education had resolved questions about alternate procurements and food/beverage expenditures through existing policy, so no statutory changes were needed there. North Dakota University System representatives gave a brief update on ongoing collaboration with OMB on statutory efficiency ideas, including concessions and surplus property. Finally, the task force discussed a draft on requirements for new or expanded spending programs, which would require agencies to identify purpose, expected benefits, alternatives, success measures, and full implementation costs, and would require reporting on outcomes over time. Members debated whether OMB or Legislative Council should collect and report the information, how to use the new program evaluators, whether real-time dashboards should be used, and how to choose which programs to evaluate; staff from Legislative Council said they would work with OMB and the auditor’s office to revise the draft and process.

Transcript Highlights:

• Normally in procurement, it is, just as Levi said, what is the scope of the procurement.
• In state procurement, the way we operate our procurement is that there is a finite, you know, the solicitation
• The OMB State Procurement Office collaborated with procurement managers from the university system institutions
• OMB provided clarification that alternate procurements—let me explain an alternate procurement in the
• It's not an audit. It's not a bill.

Summary: The task force approved the March 25, 2026 minutes as amended, striking language about contracting with a security vendor. Members then reviewed a draft bill on concessions procurement (LC 27.0161), which would raise the competitive solicitation threshold from $25,000 to $50,000, allow requests for proposals in addition to bids, update language for vending and merchandising machines, and clarify where concession proceeds are deposited. OMB explained the bill and said it was open to further changes, including language to address artificial fragmentation, clarify which government entities are covered, and possibly set contract-length limits. Members raised questions about whether the bill would apply to school districts, park districts, airports, and other political subdivisions, and about whether concession agreements could direct proceeds to nonprofits or other secondary recipients; OMB said the statute is intended to require proceeds to go to the government entity’s operating fund or general fund. OMB also reported on other survey suggestions. It said a proposed general authority for agencies to create pre-qualified architect/engineering vendor pools would not move forward, because the existing authority is best limited to high-volume agencies. On legal notices, OMB said it had made progress with the North Dakota Newspaper Association on modernizing online notices, improving ADA compliance, and discussing rate and definition changes. On click-through agreements, OMB and the Attorney General’s office concluded no statutory change was needed after revising internal guidance; the $20,000 threshold was described as a practical cutoff for adhesive, nonnegotiable software terms. OMB also said issues raised by the Center for Distance Education on alternate procurements and food/beverage expenditures had been resolved through policy clarification. The University System gave a brief update on its collaboration with OMB and said it was continuing to review concessions, surplus property, and capital project statutes with all institutions involved. The task force then discussed a draft bill on requirements for new or expanded spending, intended to require agencies to identify program purpose, needs, alternatives, success measures, and budget details, and to report on outcomes over time. Members and staff debated whether OMB or Legislative Council should collect and report the information, how much should be real-time versus periodic, and whether the bill should include full implementation costs for pilot programs. Legislative Council staff said the new program evaluation division is still being built out, that staffing remains limited, and that the office plans to continue working with OMB and the executive branch to refine the proposal before the next meeting. No final action was taken on the draft bills beyond directing further work and follow-up for the next meeting.

Transcript Highlights:

• We'll move on to the audits.
• Jim Laier, senior audit manager, was in charge of the audit and will present the report.
• 25 audit 24 audit ran into June of 25. 25 audit 24 audit ran into June of 25.
• She was a senior audit manager and in charge of the audit.
• > audit.

Keywords: 1189, house, all

Summary: The Joint Fiscal Committee met on March 20, 2026, approved the minutes, and adopted the consent calendar after removing two items for separate discussion: FIS 26048 from the Department of Safety and FIS 26053 from the Department of Environmental Services. The committee then adopted both of those items after brief questioning. Safety explained that a $2 million transfer would reduce its lapse, though it still expected a lapse of just under $4 million. Members, especially Senator Gray, emphasized concern about lapses and the need to track them closely given prior-year shortfalls. On the Environmental Services item, members discussed the Heavy Falls dam removal. The commissioner said the dam is old, not grounded in bedrock, and does not meet current safety standards, so removal was the practical option because replacement funding was unavailable. He said the aquatic resource mitigation fund and Army Corps of Engineers support made the removal feasible, and that the town had been involved in discussions for years. The committee adopted the item. The committee also adopted a Department of Transportation item, with staff noting high snowfall and a roughly 25% vacancy rate but saying contractors and bonus incentives had allowed plowing operations to continue. A Judicial Council item was then adopted, with the director saying it would likely be his last appearance this fiscal year. The committee next reviewed information materials on YDC claims administration, where DOJ staff said current spending would leave about a $10 million buffer into the next fiscal year and described reduced staffing and ongoing claims work; no action was taken. The committee then heard audit presentations for the Liquor Commission and Lottery Commission. The Liquor Commission audit reported seven findings, including a material weakness on reconciliations, issues with NextGen data/reporting, gift and promotional card controls, procurement and leasing practices, and one nonconcurrence on whether certain purchases were exempt from bidding requirements; members discussed whether attorney general review or legislation might be needed. The commission said it had completed a year-end reconciliation and was about 70% reconciled through February. The Lottery Commission audit reported three internal control comments, all concurred with by the lottery, focused on written procedures, filling the controller position, annual risk assessments, disaster recovery testing, user access controls, and training compliance; the lottery said it was hiring to reduce reliance on one employee and had no unresolved findings. The committee took no vote on the audit materials and adjourned after setting the next meeting for April 17 at 11:00 a.m.

Transcript Highlights:

• This is also a sole source procurement.
• It is also a sole-source procurement.
• It is also a sole-source procurement.
• So if I understand that, what you’re stipulating is that the Office of Procurement, State Procurement
• Procurement.

Summary: The PEER Review Subcommittee met to consider a large agenda of appropriation, transfer, contract, and other review items. Members approved temporary appropriation requests in Sections B through F, including funding for prosecuting attorneys, education-related adjustments, school operating needs, labor licensing divisions, ARPA fund returns from Workforce Services, IIJA grants for state police CDL implementation and a forestry-related county grant, reserve fund transfers for teacher scholarships, school facilities, and economic development, and a Commerce reallocation tied to organizational realignment. Cash fund requests in Section G and budget classification transfers in Section H were also reviewed, along with pay plan requests in Section I, overtime requests in Section J, and multiple methods of finance in Section K. The committee also reviewed discretionary grants in Section L, including agriculture promotion board grants and DHS aging/adult behavioral health grants, plus RFQs, construction contracts, intergovernmental contracts, and out-of-state contracts in Sections M1 through M5. Several items drew questions from members. Workforce Services explained that $225,000 in TANF-related funds would be returned to the federal government because the two-year hold period for uncashed or moved checks had expired. Commerce officials described the $25 million site infrastructure grant program, saying it supports site development, due diligence, and infrastructure build-out at eligible sites of 30 acres or more, including rural communities, with grant agreements and matching requirements providing accountability. DHS and Education officials answered questions about the Care Solace mental health referral contract, saying it is a statewide concierge/referral service that helps schools connect students to Arkansas providers and follow up so students do not fall through the cracks; members asked for more information on provider selection, school-day scheduling, and Arkansas vendor participation. The committee held one item over: the DHS discretionary grant item for the RSVP retired senior volunteer program in L2, after concerns were raised about whether state general revenue was being used effectively and how much administrative overhead the providers retain. Members also questioned several contracts, including a DHS sole-source contract with EMSLink for document management software and a DHS bridge contract with Arkansas Foundation for Medical Care for Medicaid inspections of care reviews; in both cases, agency staff explained the need to avoid service disruption and said follow-up information would be provided. A Department of Corrections reentry center contract was discussed for its recidivism results, and ARDOT retirement-system investment contracts were briefly explained. The meeting ended after a lengthy discussion of the Medicaid Trust Fund balance, with DFA and DHS officials saying the state is expected to finish the fiscal year without exhausting the fund, that a restricted reserve of $100 million is available as a backstop, and that the larger question is what minimum balance should be maintained going forward.

Transcript Highlights:

• She is the audit manager over college, university, financial, and operational audits.
• We audit our audits on a three-year rotation.
• I'm the audit manager over college and university audits.
• He mentioned we did six university audits this audit cycle. We have finalized four of those audits.
• And these type of audits, these charter school audits, these charter school audits, And these type of

Summary: The Joint Legislative Auditing Committee received a presentation from Auditor General staff on recurring findings from audits of district school boards, colleges, and universities. For school districts, the main issues discussed included missing or outdated safe-school officer training documentation, weak purchasing-card controls, vendor banking-change fraud risks, incomplete background screenings and disqualification-list procedures, missing website budget disclosures, excessive or untimely IT access, late deactivation of former employees’ access, missed emergency drill deadlines, inaccurate capital outlay and resiliency education records, weak tangible property inventories, adult education reporting errors, untimely bank reconciliations, and improper use of workforce development funds. The auditors said many of these issues are repeated from prior years and are summarized in their annual report on significant findings and financial trends. For universities and colleges, the auditors highlighted similar control weaknesses, including vendor information change controls, IT access issues, cash and investment reconciliation problems, purchasing and procurement deficiencies, personnel and compensation issues, and student fee compliance concerns. Specific examples included a UF consulting contract totaling about $6 million, FAU underreporting carry-forward balances by about $77 million, UCF’s payment loss of about $107,000 from an email scam tied to vendor changes, and a North Florida College unauthorized transfer involving a few hundred thousand dollars. The committee asked questions about the UF consulting work, the FAU carry-forward issue, and whether the listed findings meant every named entity had every issue; auditors clarified that the lists reflected entities with findings in those categories, not necessarily each specific problem. The committee then turned to enforcement for entities with long-standing uncorrected audit findings. Staff reported 144 entities with 197 findings repeated in three or more successive audit reports and recommended sending letters requesting updated corrective-action status, including for late-filed 2022-2023 reports where appropriate. The committee approved the staff recommendation and directed letters to be sent. The meeting ended with members emphasizing the importance of audit oversight and taxpayer accountability.

Transcript Highlights:

• occurred, and we have no audit system for it.
• And it seems to me, and I've, you know, working for government, I've been through audits, single audits
• , as a housing director, and I— Single audit as a housing director, and I have to do a single audit and
• then have HUD come in and do another audit.
• My duties included state procurement.

Keywords: 1182, all

Summary: The committee heard a presentation from Intel Expert/Expert Works on using its Intel Expert software to help the Department of Child Safety and law enforcement process large volumes of audio, video, and text data in cases involving missing, abused, neglected, and exploited children. The presenters said the tool can triage hotline calls, identify names, locations, relationships, criminal methods, and coded language, and produce translated and aggregated transcripts, with the goal of reducing hundreds of hours of manual review to minutes. Members discussed possible use with DCS, sheriffs, DOC, procurement and RFP issues, cost, and whether the system could help identify backlogs, serial abusers, and trafficking networks; the presenters said it is already used in Iowa and could be adapted quickly for Arizona. Committee members indicated interest in pursuing legislation, a pilot, or budget action, and said they would follow up with agencies and the presenters. The committee then considered HB 2460, which would preempt local ordinances that penalize businesses for theft of movable property, especially shopping carts. The sponsor argued cities were shifting the cost of stolen carts onto businesses and consumers instead of pursuing thieves, while city and league representatives argued local ordinances were needed to address blight, sidewalk hazards, and abandoned carts, and that the bill would unnecessarily limit local control. After debate over whether businesses should be required to retrieve carts or use anti-theft devices, the committee passed HB 2460 on a 4-3 vote. Next, the committee heard HB 2060, which would prohibit public educational institutions and ABOR from encouraging or facilitating abortions. The sponsor said taxpayer-funded schools should remain neutral and not use official roles to promote abortion, while opponents argued the bill would chill constitutionally protected health care information and referrals, especially on campuses where student health services may be the only care available. Supporters testified that campuses should provide alternatives such as pregnancy resources and adoption information. The committee passed HB 2060 on a 4-3 vote. The committee also heard HB 2210, as amended, which would prohibit the state, political subdivisions, and private entities from using ADS-B aircraft surveillance data to calculate or collect fees from aircraft owners or operators. Supporters said the technology was intended for aviation safety and should not be repurposed as a tax-collection tool, warning that pilots might turn it off to avoid fees and reduce safety. Opponents, including the City of Phoenix, said airports need flexibility and that the bill could interfere with local airport operations. The committee adopted the Blackman amendment and then passed HB 2210 as amended on a 4-3 vote.

Transcript Highlights:

• reports containing major recommendations, the audit report for the ...major audits and audit reports
• So we go through a competitive procurement process. audit, now the auditor's office contracts for that
• audit.
• And this audit...
• dollars are exempted from single audits, so they're not audited under our federal single audit that

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Transcript Highlights:

• >> So<01:01:45.599> folks<01:01:45.920> audit? >> So folks audit?
• Did you read this audit? Yes.
• Did you read this audit? >> Okay. Did you read this audit? >> Yes. >> Yes.
• procurement amount purchases? procurement amount purchases?
• <02:09:30.639> kinds<02:09:30.960> of audit after audit, the same kinds of audit after

Bills: SB2024, SB896, SB2613, SB494, SB2391, SB2125, SB2614, SB2615, SB3262, SB3325, SB3118

Keywords: charter schools, public-private partnership, school facilities, education funding, community need, education, capital improvement, reporting, transparency, technical expertise, public school land transfer, Department of Education, DOE, land conveyance, fee simple title, tax map key, TMK, Act 307, Session Laws of Hawaii 2022, Act 139

Transcript Highlights:

• The Audit Committee of the board approves an annual audit plan and any amendments to that plan.
• The Audit Committee of the board approves an annual audit plan and any amendments to that plan.
• internal audit work.
• internal audit work.
• our internal audit work.

Keywords: 1187, senate, all

Transcript Highlights:

• audited by other auditors. audited by other auditors.
• of the audit. It's a primary subject of of the audit.
• the retirement audit. That's all. the retirement audit. That's all.
• and helped to facilitate our audit. and helped to facilitate our audit.
• Thank you. audit of the financial statements. That audit of the financial statements.

Keywords: 1189, house, all

Summary: The Fiscal Committee met on January 23, 2026, approved the December 19, 2025 minutes, and adopted the remaining items on the consent calendar after noting several withdrawals. The committee then took up Department of Safety item FIS 26007, which involved Homeland Security/FEMA grant funding for equipment and UAS-related activities. Senators asked whether any of the funding would support federal civil immigration enforcement or shared operations with federal agencies, and about privacy protections for drone data. The department said the grant is governed by federal parameters, that the state uses the remaining 20 percent after federally directed uses, and that privacy law in this area is evolving. The item was adopted on an 8-2 vote. The committee next considered Department of Environmental Services item 26003, which had been withdrawn by the Senate. A senator said concerns about using the funds for a different project had been resolved after speaking with the commissioner, and the item was adopted without further debate. The committee then moved to Department of Health and Human Services item 260005, a request for about $700,000 in remaining ARPA-related funds for the Hampstead children’s facility project. Commissioners explained that the project had been funded in stages because the original appropriation was based on estimates and bid assumptions, and that the remaining money would cover alternates and finish the project without using general funds. Senators raised concerns about repeated requests for additional money, the adequacy of security, site-selection costs, and why the project had not been fully funded at the outset. The department said the project had been intentionally structured to proceed in phases and that required security would be provided.

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.
• This is done for auditing purposes as well as keeping in compliance with the guidelines set by our procurement
• So the auditing of that is done when the regular audit is done, but you all can run your own reports

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:

• You know, all was asking for was some procurement. But he seemed to have a problem with...
• He seemed to have a problem with procurement in that bill.
• So, gentlemen, in the veto message, there was some talk about there was no monitoring, no audit.
• Is that—I want to be sure ...no audit. Is that—I want to be sure now, is this that same project?
• , monitoring, and that kind of procurement processes, and those... ...kind of things, right, sir?

Bills: HR144, HB4182, HC51, HR169, HB4178, HB4179

Keywords: commendation, sports, team achievement, high school, state championship, suffrage, restoration of voting rights, conviction, probation, law-abiding citizen, congressional term limits, constitutional amendments, Article V, state resolution, political reform, Jackson State University, Veterans Memorial Stadium, economic growth, property tax, multi-purpose facility

Transcript Highlights:

• This is also a sole-source procurement.
• It's also sole-source procurement.
• It’s also a sole source procurement.
• So if I understand that, what you’re stipulating is that the Office of Procurement, State Procurement
• Procurement.

Summary: The PEER Review Subcommittee met to consider a large agenda of budget, appropriation, transfer, and contract items. Members approved temporary appropriation requests for several agencies, including the Auditor of State, Department of Education, and Labor and Licensing; ARPA return requests from Workforce Services; Infrastructure Investment and Jobs Act requests for State Police and Agriculture; restricted reserve transfers for teacher scholarships, school facilities, and economic stimulus; a Commerce reallocation of positions and spending authority; cash fund, budget classification, overtime, and pay plan requests; and 17 methods of finance items for universities and other agencies. Most items were approved without objection after brief explanations from staff and agencies. Several items drew questions and were held or discussed further. A Department of Human Services discretionary grant package for the RSVP program was held over after Senator Irvin raised concerns about whether the grants were an effective use of state general revenue and asked for more information on administration costs and program operations. In the contracts section, Representative Richardson questioned a DHS sole-source contract with EMS Link for document management software and a DHS contract with Presidio; the EMS Link item was held for additional answers, while the Presidio item was clarified as not sole-source and was allowed to proceed. Members also asked for more information on a Department of Education mental health referral contract with Care Solace, which officials said is a statewide concierge/referral service connecting students to Arkansas providers and telehealth options. The committee also reviewed monthly reports, including the Medicaid Trust Fund. DHS and DFA officials said the fund was currently sufficient to finish the fiscal year, though it was being drawn down and would likely require a $100 million transfer from restricted reserves in FY27, with another $100 million set aside in the governor’s budget as a backstop. Members discussed the need to define a minimum reserve level and to better account for ongoing Medicaid costs in the budget. The meeting ended with no further business and adjournment.

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:

• Okay, that means we spot audit.
• The audit division should be doing more like performance audits, measure management audits, or set up
• to do fiscal audits.
• But your audit division is not responsible for auditing across the board.
• Where are the audit?

Keywords: 912, senate, all

Transcript Highlights:

• Um, as you all know, the office of the legislative auditor audits the state's financial statements, and
• auditor audits the state's financial<00:02:41.800> statements<00:02:42.880> and<00:02:
• This isn't about replacing administrative recovery, civil enforcement, audits, agency oversight.
• This isn't about replacing administrative recovery, civil enforcement, audits, agency oversight.
• enforcement audits, agency oversight. enforcement audits, agency oversight.

Bills: HF4371, HF4317, HF2817, HF3496, HF4151, HF3826, HF4425, HF3990

Keywords: HF4371, Minnesota background checks, Bureau of Criminal Apprehension, BCA, Office of the Legislative Auditor, Legislative Auditor, criminal history records, national criminal history record information, public safety, statutory amendment, section 299C.76, requesting agency, state audit, oversight, background screening, criminal records, county agencies, MNsure, Department of Revenue, Department of Human Services