Transcript Highlights:

• We have an audit of the UC and CSU systems with respect to their processes for investigating and responding
• So, sort of the way the CPUC process works, procedural process.
• We have concerns with the audit, mostly about process.
• And I will say, I do think the audit process can lead to recommendations that could help and hope to
• process.

Summary: The committee met as a subcommittee for much of the hearing because it initially lacked a quorum, then later established one and began taking votes. The state auditor gave a status update on ongoing audits, including several JALAC-requested audits in progress, other statutory audits, staffing growth in his office, and the number of new JALAC audits his office could start in the coming months. The committee also heard that one audit request on Prop. 28 was held, and another PUC-related request was moved off consent and heard on the regular calendar. Members then heard and discussed several audit requests. Senator Cervantes presented a request to audit California fusion centers, with witnesses from the FBI and ACLU supporting the need for transparency and oversight; opponents argued the request was politically motivated and could interfere with counterterrorism work. Senator Allen presented a request on CPUC enforcement of Rule 21 interconnection timelines for solar and storage projects, supported by industry and school representatives who described long delays and financial harm, while CPUC staff said the issue was being addressed through workshops and a formal proceeding. Senator Perez presented a request to audit Caltrans’ administration of the former SR 710 extension properties and affordable sales program, citing tenant complaints about maintenance, pricing, and transparency; Caltrans said it was working to complete sales and improve administration. Senator Umberg presented a request to audit the Orange County Board of Education over transparency, contracting, litigation spending, charter oversight, and whistleblower issues, while board representatives said there was no factual basis for an audit and that existing legal remedies had not been invoked. After quorum was established, the committee approved the consent-calendar DMV license revocation audit and then approved the PUC utility timeliness audit and the Caltrans SR 710 audit. The fusion center audit was left on call after a split vote, and the Orange County Board of Education audit continued with testimony from the board’s representatives after the committee had already moved on to other business.

Transcript Highlights:

• statewide internal audit activities.
• internal audit standards.
• produced 73 audits...
• Collectively, internal audit functions produced 73 audits last year.
• of our financial controls and financial processes, performance audits of agency programs, compliance

Keywords: 907, all

Summary: The Joint Interim Committee on Legislative Audits met on June 17 for informational presentations. The Department of Administrative Services, through Chief Audit Executive Eli Ritchie, gave an overview of statewide internal audit requirements and the fiscal year 2025 report. He explained the difference between internal and external audit, described Oregon’s statutory and rule-based internal audit structure, and reported that 30 agencies had internal audit functions, with most meeting required standards. He said 73 audits and 49 advisory/consulting engagements were completed statewide, with strong compliance overall, though a few agencies were rebuilding audit committees after vacancies. No committee questions were raised after the presentation. The Secretary of State’s Audits Division then presented its Government Waste Hotline annual report. Director Steve Bergman and audit manager Olivia Rekhed described changes made to align the hotline with statute, including renaming it the Government Waste Hotline, creating a review panel, improving anonymity protections, removing fraud reporting from the hotline’s scope, and adjusting reporting timelines. They said hotline volume increased modestly in 2025, most reports were referred elsewhere or closed for insufficient evidence, and two reports were substantiated, including questioned costs of about $856 for personal use of a state vehicle and about $2.9 million tied to the Preschool Promise program. Committee members asked about hotline staffing, cost, anonymity, and follow-up on findings; staff said the hotline is lightly resourced, uses a contracted intake service, and referrals or recommendations are followed up through management letters and later reviews. The committee also heard an audit of the Oregon Parks and Recreation Department’s safety inspections and asset tracking. The Secretary of State’s office reported that OPRD had not consistently conducted or documented quarterly OSHA safety inspections and had incomplete asset records, including missing acquisition dates and costs for many assets. The audit made eight recommendations covering safety inspection policies, asset management guidance, tagging, reconciliations, disposition controls, training, and a new asset management system; OPRD agreed to all recommendations. OPRD officials said they had already begun training staff, improving inspection procedures, and working toward a replacement asset system, while noting operational challenges from a large, dispersed park system and manual processes. Committee members asked about what kinds of assets are tracked, how tagging works, whether items were actually being lost, and how much tracking is necessary for low-value tools; OPRD said the main issue was inconsistent classification and documentation rather than widespread loss. The meeting ended with no votes or formal actions taken.

Transcript Highlights:

• And next up, we will have municipality and special district audit processes. >> Thank you, Mr.
• Chairman, so the audit... the audit process itself has to be done The audit itself has to be done in
• of Audit and the Management Audit Committee.
• audits?
• Um, there was no need to involve the Department of Audit in that process.

Keywords: 916, all

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Bills: SB903, SB2101, SB2550, SB2983, HB2433, SCR8, SCR20, SCR28, SCR32, SCR40, SCR48, SCR55, SCR57, SCR69, SCR74, SCR83, SCR87, SCR94, SCR99, SCR114, SCR139, SCR160, SCR165, SCR177, SCR178, SCR179, SCR41, SCR78, SCR90, SCR130, SCR159, SCR162, SCR173, SB2024, SB2075, SB2730, HB2581, SB2050, SB2471, SB2466, HB1163, HB1514, SB3082, SB2135, SB2727, SB3097, HB1696, HB2021, SR20, SCR110

Keywords: public land trust, Hawaiian affairs, OHA, ceded lands, financial reporting, income settlement, trust responsibility, organic waste, solid waste, waste diversion, composting, bioconversion, recycling, food waste, green waste, food-soiled paper, wood waste, landfill diversion, waste reduction, waste management

Transcript Highlights:

• a riskbased process to select for<00:23:55.039> periodic<00:23:55.679> audit<00:23:56.480
• So, as far as audit and process improvement, we are working to implement the following audit and process
• <00:35:50.640> and<00:35:50.880> process Uh so as far as audit and process Uh so as
• far as audit and process improvement<00:35:52.720> um<00:35:53.520> we<00:35:53.760>
• process for these audits,<01:11:33.360> we<01:11:33.600> asked<01:11:34.080> what

Keywords: 912, senate, all

Summary: The informational briefing focused on the Office of the Auditor’s recent audit of Hawaii’s deposit beverage container program and the Department of Health’s response. State Auditor Les Condo reviewed the program’s structure, noting it was created to increase recycling and reduce litter, but said prior audits have repeatedly found weak internal controls, reliance on self-reported data, and an “honor system” approach. He cited examples of underreporting and overpayment risks, including a Whole Foods settlement and secret-shopper testing at a redemption center where the program reimbursed more than what was actually paid to consumers. Condo said the special fund continues to grow, increasing by more than $12 million between FY24 and FY25, and that the 2024 audit found no meaningful progress in implementing earlier recommendations. He also noted that many prior recommendations were later codified in law, including risk-based audits and internal control requirements, and said the office will audit the program again in about a year. Senator Fevella said the briefing was needed because he has seen little progress over the years and emphasized the program’s goals of reducing litter and promoting recycling. He noted that Hawaii has lost a glass recycler, underscoring broader challenges in the system. Department of Health Deputy Director Kathleen Hoe said the department is committed to addressing longstanding problems and said the director’s office meets with the program twice a month. Program staff outlined steps being taken to respond to the audit, including revising accounting and inspection/enforcement manuals, retaining third-party services, and implementing risk-based audits of distributors and redemption centers. They said internal control process documents from distributors were due June 30, with about 200 received and roughly 100 still outstanding, and that enforcement letters are being sent. The department also described plans for electronic reporting to reduce manual entry and improve accuracy, as well as a broader legislative proposal for a tiered audit system. Under that proposal, larger distributors would remain subject to the current every-other-year audit requirement, middle-tier distributors would be audited every five years, and smaller distributors would be exempt. Officials said the governor had temporarily waived enforcement of the 2025 independent audit requirement because of cost concerns for smaller distributors, while the department reviews submitted audits and considers a longer-term fix. No votes or formal committee actions were taken during the informational briefing.

Transcript Highlights:

• Fink in audit.
• The district had never done a public audit, so there's a lot of processes and procedures that were never
• audit.
• So when they have their private audit, do we review that audit?
• Audit is going to do the audit of the school, then we're going to do the audit of the school.

Summary: The committee opened with prayer, approved the January 8 minutes, and then reviewed education audit reports. The first report concerned Northwest Arkansas Community College, which had two findings: repeat internal control deficiencies that caused material misstatements in the financial statements, and a tuition revenue loss tied to a Workday system issue that failed to charge some students after drop-add changes. College officials said the problems were misclassification and process issues rather than missing funds, described corrective steps including checklists, monthly closing procedures, and approval controls, and attributed some issues to staffing turnover and the Workday implementation. Members asked about accountability, staffing, and whether students should have been billed; the report was filed as reviewed. The next report was Cedarville School District, where auditors found improper personal credit card charges of $794 by a former elementary teacher. The employee reimbursed the district, and the matter was referred to law enforcement, the prosecuting attorney, the attorney general, and the Professional Licensure Standards Board. Members asked whether any licensing action would follow, but staff said they were only aware that no further action had been taken by the board. The final finding was for West Memphis School District, which had a repeat capital assets issue involving failure to capitalize $851,000 in construction expenditures for a baseball-softball complex, along with other asset-recording and inspection discrepancies. The superintendent said the district had recently begun using Arkansas Legislative Audit for the first time after previously using a private CPA firm, and described new controls such as multi-level purchase approval, tagging, separation of duties, and inventory cleanup. Members questioned why the district had not been audited publicly before and how private audits are handled; staff explained that private audits are still reviewed and findings come before the committee. The report was filed as reviewed. The meeting ended with notice that 28 school districts had no findings and then adjourned.

Transcript Highlights:

• Fink in audit.
• The district had never done a public audit, so there's a lot of processes and procedures that were never
• There has been a private audit. Okay. So there has been an audit.
• audit.
• So when they have their private audit, do we review that audit?

Summary: The meeting opened with prayer and approval of the January 8 minutes, then moved to review of education audit reports. The first report concerned Northwest Arkansas Community College, which had three findings, including repeat internal control deficiencies that caused financial statement misstatements and a tuition revenue loss tied to a new student information system. College officials said the issues were largely misclassification and process problems, not missing money, and described corrective steps such as monthly closing checklists, approval controls for journal entries, cross-training, and efforts to address staffing turnover and fill finance vacancies. Members asked about the tuition issue, whether students were notified or billed, and whether the software problem affected other institutions; audit staff said they were not aware of the same scenario elsewhere. The committee then filed the report as reviewed. The next report was Cedarville School District, which had one finding involving $794 in improper credit card charges by a resigned elementary teacher. The district was reimbursed, a police report was filed, and the matter was referred to the Professional Licensure Standards Board; members asked whether any further action or license-related consequences were known, but staff said they were not aware of additional action. The report was filed as reviewed. The final finding was for West Memphis School District, where auditors reported repeat capital asset issues, including failure to capitalize about $851,000 in construction costs for a baseball-softball complex and problems with inventory and asset inspection. The superintendent said the district had recently begun using Legislative Audit after prior private audits, and described new controls such as multi-level purchase approvals, separation of duties, tagging of equipment, and a cleanup of old inventory records. Members also discussed the relationship between private audits and Legislative Audit reviews, with staff explaining that private audit reports for public school districts still come before the committee and that the executive committee determines when Legislative Audit performs an audit. The committee filed the West Memphis report as reviewed and noted that 28 school districts had no findings before adjourning.

Transcript Highlights:

• <00:46:10.319> think<00:46:10.480> that's<00:46:10.800> the audit in process and
• I think that's the audit in process and I think that's the most<00:46:12.079> reasonable<00:46
• . audit. audit.
• > LBA<00:54:31.280> audit audit manager with the LBA audit audit manager with the LBA audit
• They'll say, "Oh, well, the easy process is to go through performance audit."

Keywords: 1189, house, all

Summary: The committee first approved the minutes from the March 6, 2026 meeting and then received updates from the Legislative Budget Assistant audit staff on several ongoing audits. Christine Young reported that the special education audit was in report-writing stage with 39 of 80 observations completed and a draft expected in the second quarter, the education freedom accounts audit had 27 of 42 observations completed with a draft also expected in the second quarter, and the Doorway program audit had a draft report with 15 observations sent to DHHS on March 30, with responses due April 24 and presentation expected at the May fiscal committee meeting. Members asked about the size of the special education report, and staff estimated it would be over 800 pages and roughly three pounds. The committee then reviewed prior audit responsiveness from the Human Rights Commission. The commission reported that 22 observations had been completed, with remaining issues focused on timely case processing, a formal risk assessment, and a performance measurement system. Officials said staffing shortages were improving, a risk assessment manual had been drafted, a scorecard system was nearly complete, and the commission’s rules were moving through the public hearing process. Members asked about the timeline, and the commission said case processing was averaging 20 to 22 months and that the remaining items were expected to be resolved over time. Police Standards and Training also reported progress on prior audit items. The director corrected one status designation and said the job task analysis for curriculum development was substantially resolved, with findings and recommendations being prepared for the council. He said work on fitness testing was on hold pending legislative action, the performance measurement and strategic planning item remained a priority, and the council was focusing first on updating administrative rules. He also said the corrections advisory committee likely needed a statutory amendment to better reflect members with practical corrections experience. In response to questions, he said the council does not certify county correctional officers but reviews county curriculum annually, and he said the agency would be open to discussing consolidation or a pathway for county officers to become state-certified. The Department of Corrections then updated the committee on parole board-related audit items, saying 11 of 13 DOC-related findings were resolved. The remaining issues involved implementing a structured decision-making process for the parole board and improving data collection for recidivism tracking; the board had applied to the National Institute of Corrections for training, and manual data collection was underway. DOC also said it had created a HIPAA-compliant release form to share substance use disorder treatment information with the parole board. Finally, OPLC reported on the mental health workforce audit, saying six findings were fully resolved and six substantially resolved, with most remaining items tied to rulemaking and application processing. The office expects to complete its backend system migration and improve timeliness metrics by the end of the year, and it recently launched a jurisprudence exam for the mental health board. Under potential audit topics, staff said two items remained suspended because of litigation, and the committee discussed whether to keep DHHS contract management on the list. Representative [name unclear] proposed adding two new education freedom account audit topics: verification of residency and eligibility, and a record of educational attainment while preserving student privacy. Members supported adding them, but staff warned the expanded scope could delay the report and would require coordination with the Department of Education and approval by the Fiscal Committee. The chair said staff would work with the commissioner and LBA to draft the revised scope for further committee action.

Transcript Highlights:

• And I think we should have more options than that because it is a dynamic process.
• This process yielded questions. Everything for you, Gate.
• And then the other piece of this to the questions we've had about the Testing process.
• What does that process actually look like?
• What was the process?

Bills: HB4420, HB3974, HB3016, HB3062, HB3021, HB3145, HB4128, HB3131, HB3015, HB3472, HB3453, HB1638, HB4126, HB2696, HB2710, HB3552, HB3031, HB3544, HB3521, HB4490, HB4488, HB1746, HJR1069, HB4428, HB4429, HB1170, HB3538, HB4124, HB3904, HB4106, HB2999, HB3982, HJR1077, HB3464, HB2588, HB3462, HB4440, HB3674, HB3345, HJR1067, HB4326, HB4331, HB4337, HB4338, HB4359, HB4392, HB3557, HJR1076, HB4003, HB3495, HB3497, HB3501, HB3505, HB3749, HB3011, HB4336, HB4346, HJR1087, HB3240, HB3647, HB3796, HB3969, HB3972, HB3983, HB3984, HB3989, HB3383, HB3130, HB4358, HB3327, HJR1055, HB3386, HJR1089, HB3087, HB2970, HB3314, HB4129, HB4199

Keywords: reading, intervention, literacy, education, third grade retention, teacher training, funding, Strong Readers Act, tort claims, inmate housing, government immunity, public trust, private prison, emergency legislation, vision screening, binocular vision, kindergarten, elementary education, health, firearm rights

Transcript Highlights:

• That'll be the audit 3rd reading of the bill.
• does not appropriate any funds; the investment will still have to come through the regular budget process
• law governing first-party motor vehicle damages and claims by establishing a standardized appraisal process
• We've been through that process before. Recognized for follow-up Follow-up, thank you, Mr.

Bills: HB4420, HB3974, HB3016, HB3062, HB3021, HB3145, HB4128, HB3131, HB3015, HB3472, HB3453, HB1638, HB4126, HB2696, HB2710, HB3552, HB3031, HB3544, HB3521, HB4490, HB4488, HB1746, HJR1069, HB4428, HB4429, HB1170, HB3538, HB4124, HB3904, HB4106, HB2999, HB3982, HJR1077, HB3464, HB2588, HB3462, HB4440, HB3674, HB3345, HJR1067, HB4326, HB4331, HB4337, HB4338, HB4359, HB4392, HB3557, HJR1076, HB4003, HB3495, HB3497, HB3501, HB3505, HB3749, HB3011, HB4336, HB4346, HJR1087, HB3240, HB3647, HB3796, HB3969, HB3972, HB3983, HB3984, HB3989, HB3383, HB3130, HB4358, HB3327, HJR1055, HB3386, HJR1089, HB3087, HB2970, HB3314, HB4129, HB4199

Keywords: reading, intervention, literacy, education, third grade retention, teacher training, funding, Strong Readers Act, tort claims, inmate housing, government immunity, public trust, private prison, emergency legislation, vision screening, binocular vision, kindergarten, elementary education, health, firearm rights

Transcript Highlights:

• Can you speak to the parent role in this process? I'm so glad you mentioned that.

Bills: HB4420, HB3974, HB3016, HB3062, HB3021, HB3145, HB4128, HB3131, HB3015, HB3472, HB3453, HB1638, HB4126, HB2696, HB2710, HB3552, HB3031, HB3544, HB3521, HB4490, HB4488, HB1746, HJR1069, HB4428, HB4429, HB1170, HB3538, HB4124, HB3904, HB4106, HB2999, HB3982, HJR1077, HB3464, HB2588, HB3462, HB4440, HB3674, HB3345, HJR1067, HB4326, HB4331, HB4337, HB4338, HB4359, HB4392, HB3557, HJR1076, HB4003, HB3495, HB3497, HB3501, HB3505, HB3749, HB3011, HB4336, HB4346, HJR1087, HB3240, HB3647, HB3796, HB3969, HB3972, HB3983, HB3984, HB3989, HB3383, HB3130, HB4358, HB3327, HJR1055, HB3386, HJR1089, HB3087, HB2970, HB3314, HB4129, HB4199

Keywords: reading, intervention, literacy, education, third grade retention, teacher training, funding, Strong Readers Act, tort claims, inmate housing, government immunity, public trust, private prison, emergency legislation, vision screening, binocular vision, kindergarten, elementary education, health, firearm rights

Transcript Highlights:

• As far as the operational audit process goes, once we engage a, you know, As far as the operational audit
• process goes, once we engage a university for an operational audit, we begin our field work process.
• Beyond that, as far as our process, we just will follow up the next time we perform an audit.
• As far as their processes, we don't necessarily get involved in their individual audits.
• I can say that we were actively engaged with UF's internal auditor during this audit process.

Summary: The Higher Education Budget Subcommittee met to hear a presentation from the Florida Auditor General’s office on recent operational audits of four universities and to discuss how audit findings are handled. The Auditor General explained that financial audits occur annually and operational audits at least every three years, with universities required to respond in writing to findings; the office generally follows up in the next audit cycle, though it can audit sooner if needed. Members asked about accountability, whether findings are referred to other bodies, and how internal university audit functions interact with the state audit process. The chair emphasized the committee’s oversight role in ensuring public funds are used appropriately. The audit findings highlighted issues at New College of Florida, Florida A&M University, the University of Florida, and Florida Atlantic University. At New College, auditors cited invoice/payment errors, delinquent student account collection delays, prohibited extra compensation, exceeding state remuneration limits for certain employees, weak purchasing card controls, construction management cost documentation issues, and subcontractor licensing documentation gaps. At FAMU, auditors found investment accounting classification issues, delayed bank reconciliations, late vendor payments, and incomplete annual employee evaluations. At UF, auditors reported concerns over a $6.4 million consulting contract, event and catering spending, president’s office hiring and salary practices, bonus and relocation payments, continued high compensation after the president transitioned to another role, travel expenses including charter flights, and remote work agreements. At FAU, auditors found distance learning fee revenue exceeded allowable costs by about $2.8 million, carry forward funds were underreported by about $77 million, and credit card controls needed improvement. Members pressed the Auditor General on whether overpayments were refunded, whether any findings involved statutory violations, and what enforcement exists beyond the audit report. The auditor said some issues were corrected by the universities, such as New College recovering excess compensation from foundation funds, but others would be revisited in future audits; if potential fraud were identified, it would be referred to the state attorney’s office. The chair closed by noting that accountability for public spending rests with the Legislature and the committee, and the meeting adjourned without any vote or formal action beyond receiving the presentation.

Transcript Highlights:

• We agree with that, and we are putting in process procedures and tool sets to rectify that audit finding
• That process is done by that American Bar Association, and that was outside of our audit scope.
• Findings from a performance audit are subject to formal response, public release, and follow-up processes
• The remainder of this section provides information related to the political subdivision auditing process
• And then, of course, a quick note at the bottom of the ...auditing process, just a little more detail

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:

• And we are putting in process procedures and tool sets to rectify that audit finding. So, Mr.
• That process is done by the American Bar Association, and that was outside of our audit scope.
• That process is done by the American Bar Association, and that was outside of our audit scope.
• The remainder of this section provides information related to the political subdivision auditing process
• The remainder of this section provides information related to the political subdivision auditing process

Keywords: 908, all