Transcript Highlights:

• So, and that was just a random audit, right?
• So I think when we look at when audit.
• He said that in 2024 they did another audit and it went up.
• He said the 22 percent figure is based on audits, and that if OLA did an audit in 2026, it may go up.
• <01:17:44.120> data is um unemployment insurance audit data is um unemployment insurance audit

Keywords: 1183, house

Summary: The Workforce, Labor, and Economic Development Finance and Policy Committee met to discuss worker misclassification, beginning with approval of the March 4, 2026 minutes and a note that a late-posted bill would not be heard at this time. Chair Pinto opened the hearing by framing misclassification as timely and invited Lea Takapu of the Attorney General’s office to explain the issue. Takapu described misclassification as labeling workers as independent contractors when they are really employees, which can deprive workers of minimum wage, overtime, unemployment insurance, workers’ compensation, and other protections while also reducing tax revenue. She said the Attorney General’s office and the MEAP partnership have been working on the issue and cited estimates that Minnesota workers lose billions annually and the state loses hundreds of millions to over a billion dollars in revenue, while noting that legitimate independent contracting is not the target. Members questioned how the committee could rely on estimates when the exact number of misclassified workers is unknown. Takapu responded that the figures were based on studies and complaint data, and that underground or undocumented work makes exact counts difficult. Chair Pinto noted the numbers were estimates and referenced a 2024 Legislative Auditor finding that Minnesota lacked an adequate, coordinated approach to proper worker classification, while saying progress had been made since then. Several industry witnesses then testified in support of stronger enforcement. Kevin Pranis of LiUNA said misclassification remains rampant in parts of construction, especially drywall, stucco, thin stone, and broadband installation, and argued it is tax, unemployment insurance, and workers’ compensation fraud that harms law-abiding contractors and taxpayers. Matt Wollers of Braxton and Sons said his company loses bids to competitors that misclassify workers, creating a labor-cost advantage of 30% or more, and asked for meaningful enforcement rather than new legislation, including regular unannounced jobsite visits. Jesse Madison of Purple Tally Productions said misclassification is anti-competition and described examples from live events and entertainment, urging front-end checks on workers’ compensation, unemployment coverage, and W-2 versus 1099 status before work begins. The next testifier, Ben Ballou of the Minnesota Nurses Association, began his remarks as the transcript ended.

Transcript Highlights:

• It's submitted quarterly and annually, only the annual one is audited.
• that we get that is audited by a separate entity than the auditors that do the ASR audits.
• Audit shareholder with Thomas L.
• Ferguson was directly involved with the audit of this particular plan.
• really audit procedures to go in and test that accumulation of the data.

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

Transcript Highlights:

• And part of the reason for that was that uh the high expense of having their city audited because of
• that liquor store and did some checking and found that the threshold for having a CPA audit, full audit
• having their their their city audited having their their their city audited because<00:04:19.680
• ,<00:04:27.520> full threshold for having a CPA audit, full threshold for having a CPA audit
• Blaha, you know how excited she gets about auditing. So, pretty good stuff.

Keywords: 1183, house

Transcript Highlights:

• that want to read the audit summaries.
• So I really implore all of you to read those audits, and we as a legislature have some work to do.
• that want to read the audit summaries.
• It was an extremely eye-opening extra. read the audit summaries.
• Reading the audits was extremely disconcerting and concerning.

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

Transcript Highlights:

• Lee said that as far as the audit log, Amber has a recommendation to not allow or maintain the audit
• Lee said that as far as the audit log, Amber has a recommendation to not allow or maintain the audit
• Lee said that as far as the audit log, Amber has a recommendation to not allow or maintain the audit
• Lee said that as far as the audit log, Amber has a recommendation to not allow or maintain the audit
• Lee said that as far as the audit log, Amber has a recommendation to not allow or maintain the audit

Keywords: 1183, house

Transcript Highlights:

• Um do chair management audit as well.
• <00:04:36.080> and<00:04:37.040> um audit and um audit and um I<00:04:38.880> think<
• Um a false post-election ballot audit.
• recounts, and perform a ballot audit. recounts, and perform a ballot audit.
• um filed today implements a hand audit um filed today implements a hand audit which<00:46:58.319

Bills: SF0028, SF0030, SF0031, SF0032

Keywords: voting, elections, electronic voting systems, transparency, public testing, voter registration, qualified elector, residency requirements, voting rights, mortgage modification, priority, electronic signatures, real property, financial covenants, 911 services, emergency response, grant funding, next generation technology, government accountability, public safety

Transcript Highlights:

• I want to welcome everybody to the Legislative Audit Education Institution Subcommittee.
• Today there are 57 education audit reports for the committee’s review.
• We will begin with the three audits which were referred to the prosecuting attorney and attorney general
• So since these were not a repeat finding or a deferred audit report, they were not required to be here
• And so we're on each audit now when we go out, we try to ask questions along these lines to see.

Summary: The Legislative Audit Education Institution Subcommittee met to review 57 education audit reports, including 52 with no findings and five with findings. The committee adopted the previous meeting’s minutes and then heard staff summaries of the findings, which focused largely on school district spending and internal control issues. Two reports, Camden-Fairview and Forest City, involved district use of operating funds for staff end-of-year celebrations that staff said conflicted with the Arkansas Constitution and AG opinions. Camden-Fairview’s questioned costs totaled $10,668, including meals, door prizes, and facility rental, and Forest City’s totaled $33,436, including decorations, catering, entertainment, and rental fees. Members discussed whether district officials should attend to answer questions, and both reports were deferred to the June meeting with requests for district attendance. The committee also reviewed a referred finding at Nettleton School District involving a $1.9 million fraud scheme tied to emailed bank-account change requests; the district recovered $1.5 million from the bank and arranged for the vendor to reimburse the remaining $204,890 loss. Members questioned why the vendor would repay money it did not receive, and the report was also held over to the June meeting for further explanation. A separate referred case at Camden-Fairview noted unauthorized credit card charges of $2,140, with $262 remaining as a loss after bank reversals. Staff also presented non-referred findings at Cedar Ridge, including improper Title I payroll charges, salary overpayment and underpayment errors, and an unreconciled bank account variance, and at Green County Technical School District, where a $1,400 vendor check was fraudulently diverted but later recovered. Those reports were filed after no objections. During discussion, staff explained that Legislative Audit is trying to reduce recurring fraud and control problems by advising schools on verifying banking changes in person or through other direct contact, using bank controls such as positive pay, and monitoring accounts more frequently. Members encouraged schools to take audit training seriously and noted that clean reports should be recognized as a positive result. The remaining 52 reports with no findings were filed as reviewed, and the meeting adjourned with no new business.

Transcript Highlights:

• While no one likes to be audited, we welcome them.
• While no one likes to be audited, we welcome them.
• While no one likes to be audited, we welcome them.
• While no one likes to be audited, we welcome them.
• While no one likes to be audited, we welcome them.

Keywords: 1187, senate, all

Transcript Highlights:

• I want to welcome everybody to the Legislative Audit Education Institutions Subcommittee.
• Today there are 57 education audit reports for the committee's review.
• We will begin with the three audits which were referred to the prosecuting attorney and attorney general
• So since these were not a repeat finding or a deferred audit report, they were not required to be here
• And so we're on each audit now when we go out, we try to ask questions along these lines to see.

Keywords: 1204, all

Transcript Highlights:

• But we believe we have substantially complied with the audit ahead of schedule.
• The policies and procedures were recently updated as part of a response to the audit.
• The policies and procedures were recently updated as part of a response to the audit.
• I think the audit said 21 days for one, 58 days for another, and as long as 364 days.
• That was a different part of the audit. It covered multiple topics.

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

Transcript Highlights:

• , whether it was a financial audit or a programmatic audit.
• audit or a programmatic audit financial audit or a programmatic audit is<00:53:07.359> the<00
• When we say LBA audits, it doesn't include the KPMG audit. I apologize.
• When we say LBA audits, it doesn't include the KPMG audit. I apologize.
• audits. So, it's it's a different audit. audits. So, it's it's a different audit.

Keywords: 928, house, all

Summary: The committee met with DHS Chief Financial Officer Nathan White to receive an update on the department’s budget lapse and vacancy rates. White explained the difference between the “back-of-the-budget” reduction and lapse assumptions, saying DHS is facing a current biennium reduction of about $23 million and estimating roughly a $60 million general fund lapse in state fiscal year 2025, compared with about $13.5 million the prior year. He said DHS’s lapse is driven largely by program utilization, labor market conditions, contract spending, and statutory carry-forwards in areas such as Medicaid and developmental disabilities, which tend to produce a smaller lapse in the first year of the biennium and a larger one in the second year. He also noted that the House and Senate budgets differ on some operating items, including Medicaid rates, with the Senate having struck a House proposal to reduce rates by 3%. Members questioned White about whether DHS ever spends down lapse money on last-minute purchases. He said the department does not engage in that practice, though it does retain some flexibility in its facilities budget for emergencies. He also described the process for transferring funds within and between class lines, including the need for fiscal committee approval above statutory thresholds, and gave examples such as moving funds to cover overtime in the SYSC budget and to ensure Medicaid payments for nursing facilities. White said such transfers are public and transparent and are reviewed by the governor and Executive Council. The committee then discussed DHS staffing. White said the department has a little over 3,200 authorized positions, with a vacancy rate around 14.5%, and that a hiring freeze had been imposed a few months earlier while exempting direct care positions. He said DHS is planning for about a $30 million general fund reduction to personnel, equivalent to just under 400 positions, and is managing postings centrally to stay within budget by July 1. In response to questions about the loss of about $80 million in federal funds, White and Associate Commissioner Patricia Tilly said DHS avoided layoffs by shifting staff into vacant positions, but that the cuts affected community contracts, public health workers, laboratory work, and some IT/data projects. Tilly said roughly 20 positions were affected, most were reassigned, a few staff left voluntarily, and the department has less flexibility going forward if more federal funding ends.

Transcript Highlights:

• Most of the audit findings point back to a greater need for oversight and transparency.
• Ma'am, you're at two and a half minutes. of audit firms that is education focused.
• And so that's why we're so focused on the audit guidelines.
• We have to react to that, and we need stronger audits and oversights.
• Do you think the auditing standards are incredibly important? We fought hard for those as well.

Summary: The Assembly Education Committee met without a quorum for much of the hearing and heard several bills out of order. SB 249 by Senator Umberg would move county board of education elections from the primary to the statewide general election. Supporters, including the League of Women Voters and many educators, argued the change would increase turnout and make the electorate more representative. The Orange County Board of Education opposed the bill, saying it would increase costs, reduce local control, and bury education races on crowded general-election ballots. The chair and members discussed turnout, cost, and representation, but the bill was held pending a quorum. Senator Grove presented SB 373, which adds safeguards for California students placed in out-of-state non-public schools through IEPs. The bill would require more robust LEA and CDE oversight, including annual site visits, student interviews, quarterly contact, stronger certification standards, and restrictions on prone, supine, and mechanical restraints. Testimony from a survivor of an out-of-state placement and from advocates emphasized abuse, neglect, and the need for stronger monitoring. There was broad support and no opposition testimony, but the measure was also held pending a quorum. Senator Ashby presented SB 568, the epinephrine in schools modernization act, to clarify and expand requirements for stocked epinephrine so they clearly apply to all public schools, including preschool programs. School nurses and medical experts said the bill would close gaps created by universal preschool and ensure life-saving treatment is available for anaphylaxis. The committee discussed dosing and implementation, and the bill was supported without opposition testimony. The committee also heard SB 414, the Charter School Accountability Act, which would strengthen fiscal oversight, audit standards, and transparency for charter schools and authorizers. Supporters said it responds to fraud and audit findings while preserving charter flexibility; opponents, including school employees and teachers, said it did not go far enough on authorizer accountability and small-district oversight. After discussion, the committee voted 7-0 to pass SB 414 as amended to Appropriations. The committee also briefly heard SB 743 by Senator Cortese, which would create an equalization reserve account to provide additional funding to underfunded school districts and reduce funding inequities tied to ZIP code. The author said the bill would support student achievement and teacher retention over time. The transcript cuts off before testimony or action on SB 743 was completed.

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.
• We do have an internal audits department.
• 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:

• approved by the Legislative audit approved by the Legislative audit commission<00:27:24.399>
• :42:47.040> in<00:42:47.160> a entity subject to audit so it's in a entity subject to audit
• to us directly in this specific audit to us directly in this specific audit you<00:43:00.880>
• <00:43:02.680> of you know we are conducting an audit of you know we are conducting an audit
• <00:44:04.119> has currently an auditor in an audit has currently an auditor in an audit has

Bills: HF1867, HF1240

Keywords: lottery, retailer contracts, Minnesota Statutes, contract qualifications, public integrity, criminal background, legislative auditor, public funds, state government, compliance, transparency, 1183, house

Transcript Highlights:

• hold them accountable to their audit, to give us timelines for the audit that's going on.
• > oversight performance audit and oversight performance audit and oversight committee.<00:22:02.400
• And we've audit than it did oversight.
• to give us timelines for to their audit to give us timelines for the<00:22:16.400> audit<00:22
• So with the audit uh that's going on.

Keywords: 1191, senate, all

Transcript Highlights:

• At the end of this session, there'll be an audit report. We require audits.
• So Senator, being on the school board, we have audits for our county.
• Can you tell me the difference between or maybe what the performance audit is?
• So we use our audits to flag issues that we need to correct in our budget.
• I'm talking almost 1,200 entities, about 650 are subject to a full financial audit, and that audit oversight

Transcript Highlights:

• Slightly different access and capacity for auditing individual operators.
• Well, they're audited. They're subject to audit. Yeah. But we don't do that here with casinos.
• We have actually an audit going on at this very moment.
• Like, how do you do audits? ...audits in some of these casino facilities?
• So maybe we don't audit; we can't audit a facility that is not licensed.

Bills: S0468, S0822, S1234, S1260, S1580, S1706

Keywords: animal cruelty, reporting, veterinary, protection, liability, regulation, community association, management certification, Florida Statutes, certified manager, association governance, building permits, inspections, offsite construction, local government, housing, property regulation, construction standards, state of emergency, emergency response

Summary: The committee heard and approved several bills. SB 468 would require veterinarians and veterinary technicians to report suspected animal cruelty to law enforcement or animal control and allow release of patient records in good faith; it was reported favorably with support from animal welfare groups. SB 1706 narrows eligibility for the My Safe Florida Condominium Pilot Program to buildings with at least 80% owner-occupied units and residents at or below 80% of area median income, and it also passed favorably. SB 1234 on building permits and inspections was amended extensively to clarify permit exemptions, private-provider rules, and timelines, then reported favorably as a committee substitute. SB 1260, dealing with building inspections after emergencies, was amended to require state-term contracts for inspection vendors and then passed. SB 822 would require professionally managed community associations above a budget threshold; an amendment raised the threshold to $750,000, added a parcel-count trigger, and allowed direct-hire credentialed managers, after which the bill was reported favorably. SB 1580 would increase penalties for illegal gaming operations, add enforcement tools, and clarify procedures for veterans organizations; after removing a fantasy sports provision, it also passed favorably. The committee also heard from several appointees and reappointees to the Public Service Commission and Florida Gaming Control Commission. Public Service Commission nominees Anna Ortega and Robert Payne were questioned closely about utility hardening projects, ratepayer costs, and the role of the Office of Public Counsel. Gaming Commission reappointee Julie Brown and appointees William Spacola, John DeQuilla, Peter Cutterman, and Tina Rep discussed illegal gaming enforcement, audits, agency operations, and their backgrounds in law, regulation, law enforcement, and public service. Several members raised concerns about contract timing and evidence handling at the Gaming Commission, while others praised the nominees’ experience and service. At the end of the meeting, the committee voted to recommend confirmation of all appointees on tabs 1 through 7. Members then requested favorable placement on the record for specific bills, including SB 468, SB 1234, SB 1260, SB 1580, and SB 1706, and the committee adjourned.

Transcript Highlights:

• So the audit requirement of needing a full audit costing almost $10,000 hasn't been changed in 25 years
• So the audit requirement of needing a full audit costing almost $10,000 hasn't been changed in 25 years
• 165 from Senator avard audit 165 from Senator avard audit requirements<00:17:28.120> for<
• > audit<00:18:37.200> costing<00:18:37.559> almost needing a full audit costing
• Okay, all second. annual audit requirements oh wait wait annual audit requirements oh wait wait sen<00

Keywords: 1191, senate, all

Transcript Highlights:

• We do have annual audits.
• We do have annual audits. Uh redundant. We do have annual audits.
• to the audit.
• , we just had a a board of as the audit, we just had a a board of education<01:03:43.440> audit
• <01:03:47.200> So where we responded to the audit. So where we responded to the audit.

Keywords: 910, house, all

Summary: The committee on Education met on March 19 and moved through several bills under time pressure, hearing mostly brief testimony. SB 2024 SD2 and SB 896 SD2, both concerning public-private partnerships for charter school facilities, drew support from the Department of Education, the Charter School Commission, White Kids Can, and Hawaii Technology Academy. DOE said any P3 model should apply only to charter schools on private land and not affect public schools on DOE land. Supporters argued the approach could speed construction, reduce costs, and keep public money in public assets, while UPW and HGA raised concerns about privatization. In response, SFA said the intent was to mirror the existing conversion charter school model, with public ownership of assets and unionized staff, and noted some regions have waited years for schools. SB 2613 SD1 on TMK transfers was heard next. DOE said the bill had originally been supported as part of the governor’s package but was amended to require DOE to convey lands for 13 libraries on DOE property, which DOE said would create “donut holes” in campuses and was unnecessary because existing agreements already govern library use. The State Public Library System supported the bill, saying it has long coexisted with DOE but needs clearer separation and more reliable control over its sites. The Attorney General’s office said the library system currently lacks express statutory authority to own real property and flagged implementation issues because some of the affected parcels are not currently owned by DOE. Committee members questioned both sides about current agreements, communication, and how the bill would change operations. SB 494 SD2, concerning charter school audits, received comments from the Charter School Commission, which said the bill was redundant because charter schools already undergo annual audits during the term of their contracts. The Office of the Auditor was also present. SB 2391 SD2, relating to automatic pay increases for teachers, drew strong opposition from the Office of Collective Bargaining, which said step movement and longevity increases are negotiated in each contract and do not automatically carry over when a contract expires; it warned the bill could affect upcoming negotiations with HSTA. HSTA and several other supporters argued the bill would standardize annual step movement, improve retention, and reflect existing contract language. No votes or final actions were taken in the portion of the meeting provided.

Transcript Highlights:

• course of several years their audited course of several years their audited Financial<00:34:06.639
• look at their 90s their audited look at their 90s their audited financials<00:35:25.920> their
• <00:58:45.160> commission this I think with the audit commission this I think with the audit
• They don't audit the nonprofit. They don't look at the 990, the audited financials, the salaries.
• <01:17:47.360> for we did that performance audit for we did that performance audit for example

Keywords: 1183, house

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