Transcript Highlights:

• We get to keep a portion of our audit revenue.
• For everybody's sake, we get to keep a portion of this audit revenue.
• So in the audit revenue, how that. Works is we go out and we get to keep this.
• Very simple answer is we get to keep a certain amount of our audit revenue.
• That audit revenue over the last three years has increased by 35%. We're much more efficient.

Keywords: 914, all

Transcript Highlights:

• We review various prison practices, policies, and procedures by conducting performance audits and special
• That investigative work will be performed by the additional attorneys requested in our BCP.
• Why would they be allowed to still perform the functions of their job if they've proven that they're
• These enhanced audits will help ensure corrective and disciplinary actions are taken.
• I mentioned earlier internal auditing, and so we'll look at our progress through that process.

Summary: The hearing focused first on sexual abuse, harassment, and retaliation in California’s women’s prisons, with testimony from CDCR wardens, the Office of Inspector General, advocacy groups, and formerly incarcerated survivors. Legislators and witnesses described a pattern of staff misconduct, fear of retaliation, gaps in reporting, and the need for stronger accountability, better investigations, and more outside access for survivor support organizations. CDCR said it has expanded training, body-worn and stationary cameras, outside partnerships, and PREA-related response procedures, while the Inspector General requested additional funding and staff to monitor more grievances and staff sexual misconduct cases under SB 1069. Members pressed CDCR on why accused staff are not always placed on leave, how cases are referred to prosecutors, and whether current protections are enough; several members argued the state should aim to investigate all complaints and do more to prevent retaliation and repeat abuse. The second issue was rehabilitative and reentry programming in women’s prisons. CDCR’s Division of Rehabilitative Programs and the wardens highlighted education, vocational training, substance use treatment, peer support, and community reentry programs, citing increased enrollment and recent graduates earning diplomas, degrees, and certifications. They said these programs are intended to reduce recidivism and improve public safety. Formerly incarcerated advocates and community providers argued that current offerings are still too limited, outdated, and not aligned with today’s job market, especially around digital literacy and transferable credentials, and they urged more funding for community-based, trauma-informed, gender-responsive programming. A coalition representative asked for a $20 million continuation and expansion of the Wright Grant program, and members discussed additional budget requests for reentry and related women’s services.

Transcript Highlights:

• <00:17:12.439> standards not meet certain performance standards not meet certain performance
• not be considered an audit.
• This audit is complete. We have released the report.
• This audit is complete. We have released the report.
• make sure that we're you know auditing make sure that we're you know auditing to<01:17:38.199>

Keywords: 1183, house

Summary: The Education Policy Committee met to hear a delayed presentation from the Office of the Legislative Auditor on MDE’s oversight of Feeding Our Future, a report released in June 2024. The chair framed the hearing as an oversight review of how the Minnesota Department of Education handled the nonprofit’s participation in the Child and Adult Care Food Program and the Summer Food Service Program, emphasizing that the hearing was not about criminal charges against agency staff. Legislative Auditor Judy Randall and Director of Special Reviews Katherine Tyson explained that their review focused on state oversight, not the underlying federal fraud case, which involved an alleged $250 million scheme and ongoing criminal proceedings. The auditors concluded that MDE’s oversight was inadequate and created opportunities for fraud. They said MDE failed to act on warning signs before the pandemic, did not effectively use its authority to hold Feeding Our Future accountable, and was ill prepared to respond to problems. Examples included approving applications despite concerns about internal controls and staffing, failing to follow up on earlier review findings, not adequately investigating at least 30 complaints, and in one case referring a complaint back to Feeding Our Future for resolution rather than conducting an independent investigation. They also said MDE deferred serious deficiencies without enough evidence that problems had been fully corrected and approved meal claims despite records showing major inconsistencies. Tyson said MDE had made progress on all eight recommendations in the report, though one recommendation to the legislature had not yet been addressed because the session had not convened since the report’s release. The auditors recommended that the legislature establish clearer statutory criteria or give MDE rulemaking authority for sponsor applications, and that MDE strengthen verification of sponsor information, focus more on high-risk sponsors, improve complaint procedures, and emphasize program integrity if waivers reduce oversight in the future. In response to member questions, the auditors said MDE’s reported progress was partial in some areas and that further review would be needed to fully confirm implementation. No votes or formal committee actions were taken during the hearing.

Transcript Highlights:

• Audits.
• Coming from public education, the K–12 system is required to perform an external audit annually, with
• Coming from public education, the K–12 system is required to perform an external audit annually, with
• What I'm hearing, though, is that you perform an annual consolidated audit, so there is some already
• audit.

Summary: The committee first adopted its 2025-26 rules on a 7-0 roll call, then approved three consent items—AB 88, AB 240, and AB 313—on a due-pass motion to Appropriations. The hearing then moved to AB 648, which would give community college districts the same zoning authority as the UC and CSU systems to build student and staff housing on property they own or lease. The author and supporters argued the bill would help address severe housing insecurity and homelessness among community college students, while opponents and some members raised concerns about local control, zoning exemptions, and the impact on nearby communities. AB 648 passed the committee on a 5-2 vote and was sent to the Local Government Committee. The committee next heard AB 466, which would require California Community Colleges and CSU campuses to provide organ and tissue donor registry information during student orientation, and request UC campuses to do the same. Supporters shared personal stories about transplants and donation, saying college orientation is a good opportunity to increase registrations. Some members worried about information overload during orientation and suggested campuses have flexibility in how they present the material, but the bill advanced on a unanimous 7-0 vote to Appropriations. AB 326 followed, proposing campus-by-campus external audits of the CSU every three years and public release of the audits. The author, faculty supporters, and a student argued that systemwide audits do not provide enough transparency about how money is spent at individual campuses, citing examples of financial mismanagement and fee increases. CSU opposed the bill, saying it already conducts annual consolidated external audits and that campus-level audits would add cost without added benefit. After extensive discussion about transparency, audit scope, and implementation, the bill passed 6-1 to Appropriations. The committee then took up AB 335, which would create a California Black-Serving Institution Grant Program to support Black student success and broader underserved student services; supporters emphasized persistent equity gaps and low completion rates, while an opponent argued the bill needed to be carefully amended to comply with Proposition 209 and equal protection requirements. The transcript ends during that item’s discussion, before a final vote is shown.

Transcript Highlights:

• During that time, the audit has been languishing. My request has been languishing.
• And then during that time, the audit has been languishing. My request has been languishing.
• But I think we should do an audit and understand where the money has been appropriated.
• The fact that student performance must improve.
• Educational system is not performing how it should.

Keywords: 988, house, all

Transcript Highlights:

• Our audit report revealed: 1.
• No one but Faget financial audits.
• So, the leadership's response to the proposed audit from Auditor Ball was to do their own audit with
• I don't know that the audits<00:59:36.880> from<00:59:37.119> Texas audits from Texas audits
• Again, as I point out, we had audits Again, as I point out, we had audits every<01:08:52.640> year

Keywords: 958, all

Summary: The Senate convened with prayer and the Pledge of Allegiance, then established a quorum with 34 members present and approved the prior day’s journal. The chamber also received a House message that House Bill 96 had passed and requested concurrence. During second reading, Senate Bills 17, 34, 39, and 181 were reported and sent to the Rules Committee, and Senate Resolution 56 was introduced honoring Elder Nathan Craig and Sister Amy Craig for their mission service. The chamber then took up Senate Bill 27, which would allow local governing bodies, after consulting with a coroner and making a 30-day effort to locate next of kin, to choose cremation rather than burial for indigent decedents; it also preserved options for religious organizations to take possession of a body. A committee substitute was adopted, and the bill passed 35-0. Senate Bill 30, dealing with the Motor Vehicle Commission’s restricted fee account and allowing unused funds to carry forward for commission operations, also passed unanimously 35-0. Senate Bill 40, concerning public library district boards of trustees, was amended by committee substitute and passed 34-1 after debate. Supporters said it would return county library board appointments to local officials and speed appointments, while opponents argued it could politicize libraries and weaken their independence; several members explained their votes, including concerns from library advocates and a defense that the bill still allowed local boards to seek advice. Senate Bill 76, which limits school boards from increasing occupational license taxes above the base 0.5% until a county reaches a population of 500,000, was also amended by committee substitute and passed after its sponsor argued it responded to a disputed Fayette County tax increase and would restore transparency and public trust.

Transcript Highlights:

• This morning, one of the things we're going to do today is kind of look at the audit that the Alliance
• So if you guys can look in this report and the audit starting on page eight, I love when we're looking
• No, but we have just looked at, you know, if we look at the audit here, if you go through and see how
• But what I'm going to say is this: I think the deliverable needs to be tied to performance directly,
• If they were requested to perform any services outside the statement of work set forth here, you would

Summary: The committee met to review an audit and recommendations from the Alliance for Opportunity as part of a broader study of social service and workforce development reform under Act 145 of 2025. Members discussed creating a more integrated, regional, and “one door to work” system that would combine eligibility screening, service delivery, and workforce connections across DHS, workforce, and related programs. Much of the discussion focused on reducing administrative overhead, improving coordination, and using tools such as AI and centralized databases to help applicants learn about benefits, training, and job opportunities while still preserving case managers and in-person help for people without digital access. Members also emphasized targeting groups with low labor-force participation, including people in generational poverty, rural residents, individuals reentering from prison, and people involved in the court system who may be employable but are not currently connected to employers. Several members raised concerns about benefit cliffs, the burden of repeated paperwork across agencies, and whether the system should include performance measures tied to cost per person served and return on investment. The committee agreed that quantifiable savings and outcomes should be part of the study and future recommendations. The committee then considered and discussed a draft consultant services agreement with Work Ed Consulting LLC, represented by Mason Bishop, to assist with the study. Bureau of Legislative Research staff explained that the contract would run through June 30, 2027, with a maximum amount of $158,000, billed on actual hours and expenses, and could be expanded by up to 10% if needed. Bishop said he could provide ongoing ROI updates and technical assistance based on his experience in other states. After discussion, the committee voted to move forward with the contract, and the meeting adjourned.

Transcript Highlights:

• I'll skip ahead past the goals and performances I talked about. What are our projects for FY27?
• So when it comes to how OETA performs against other PBS stations, I will say that without a doubt, OETA
• They audit us and go through and make sure all our processes and everything look right.
• Secretary of Education Hamlin and I discussed an audit he's doing.
• He's doing a quality audit.

Keywords: 914, all

Transcript Highlights:

• The pandemic did have an impact on how CTE is performed, but we're making a steady strength and growth
• The pandemic did have an impact on how CTE is performed, but we're making a steady strength and growth
• Finally, I want to take a look briefly and just share with you about our performance incentive funds
• Now, I can tell you in the last CTE audit that we did for 2024—the 2025 will come out before the end
• That's kind of what the CTE audit is designed to do.

Summary: The Higher Education Appropriations Committee met for its first session of the year, took roll, welcomed new member Senator Bracey Davis, and had members briefly describe their backgrounds and interest in higher education. Chair Harrell framed the committee’s focus on maintaining Florida’s top national ranking in higher education and workforce development, with an emphasis on funding decisions tied to student success, workforce needs, and the state college system. Senior Chancellor Kevin O’Farrell presented the Department of Education’s workforce and Florida College System budget requests and data. He described requested increases for adult education, Florida College System program funding, workforce development, and several grant programs, including workforce capitalization, apprenticeship/teacher apprenticeship, Open Door, and CAPE industry certifications. He highlighted record enrollment and completion growth across Florida’s colleges and technical centers, major gains in career dual enrollment, and expansion in programs such as nursing, AI, cybersecurity, welding, HVAC, and manufacturing. Members asked about labor-market demand, the impact of artificial intelligence on future job training, teacher apprenticeship details, mission creep and duplication in CTE programs, student placement and wages after graduation, and articulation between technical college clock hours and college credit. South Florida State College President Fred Hawkins testified about challenges facing a rural college, including low local college-going rates, long travel distances, limited faculty recruitment due to salaries, and the need for more operational funding to expand capacity. He cited strong job placement and licensure outcomes in nursing, dental hygiene, EMT/paramedic, and radiography, and said the college is exploring AI tools to improve student services and reduce staffing pressure. Pinellas Technical College Executive Director Mark Hunter described strong dual enrollment, high job placement, employer partnerships, and a reported 400% return on investment, while also warning that many programs have waiting lists because of staffing and equipment constraints. He explained how technical college coursework is aligned with state college credit through content-based articulation agreements. The committee then opened the floor for public comment, but no additional business was taken up, and the meeting adjourned.

Transcript Highlights:

• So we've developed our own finance and audit committee.
• And they added performance incentives on top of what the state was able to provide.
• It was the highest-performing nonstop flight to South Korea.
• Just a couple performance measures: unemployment insurance has an error rate.
• Utah was recently audited, and they did not find an error in Medicaid or CHIP.

Keywords: 985, all

Transcript Highlights:

• So we also make available, With help from our data friends at Cal-ACH, the system performance measures
• We rely on grantee-reported data, but we have audit protocols baked into all of our contracts as well
• Last April, the LAO, in one of the audits that I worked on that the Joint Legislative Audit Committee
• In a minute since I looked at that audit, but I recognize I remember from the time, but it's due to some
• I think subsequent to that audit, we have brought a lot of this homeless work inside the mayor's office

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on California’s homelessness funding, focusing on the Homeless Housing Assistance and Prevention (HAP) Grant and the Encampment Resolution Grant Program. HCD described new accountability requirements, including regional action plans, stronger reporting and expenditure conditions, housing-element compliance, encampment response plans, and public dashboards that track fiscal spending, service outcomes, and encampment resolution status. Officials said the goal is to use the data to identify underperforming grantees, provide technical assistance, and, if needed, withhold or reallocate funds. Local officials from San Diego, Fresno, and Santa Cruz said the programs have helped expand shelter, outreach, and permanent housing, and that state dollars have leveraged local and federal resources. Mayor Todd Gloria said San Diego has used HAP to expand shelter and safe sleeping options, reduce downtown encampments, and increase housing production, but argued the state’s new accountability website is too high-level and does not fully reflect countywide conditions, behavioral health outcomes, or the role of continuum-of-care partners. Fresno officials said HAP and other state funds helped the city add shelter beds and reduce homelessness, while Santa Cruz emphasized that state funding helped build local coordination and draw in federal vouchers. Members pressed the panel on whether HAP is actually reducing homelessness, what the best success metrics should be, and whether the state is getting full, usable data from grantees and subcontractors. Several members asked for more granular jurisdiction-level reporting, better tracking of nonprofit spending, and clearer measures beyond point-in-time counts and “people served.” HCD said it is still improving HMIS participation and data quality, but can already show outcomes such as exits to permanent housing and returns to homelessness. The hearing ended with broad agreement that transparency is important, but disagreement remained over the best measures of success and how much emphasis should be placed on housing, prevention, shelter, and treatment.

Transcript Highlights:

• a performance audit, would be undertaken of the program, including the scholarship service providers,
• <03:41:55.560> is be audited is be audited is that<03:41:58.040> is<03:41:58.199>
• <03:42:20.640> a<03:42:20.840> performance<03:42:21.439> audit<03:42:21.880>
• would<03:42:22.080> be an audit a performance audit would be an audit a performance audit
• what we add here is student performance what we add here is student performance is<05:13:37.440>

Keywords: 928, house, all

Summary: The Education Funding Committee met in executive session and first took up HB 193, which clarifies that dual and concurrent enrollment courses may not exceed four credits. Members said the bill came from the community college system and was intended to preserve the program’s high school-to-college pathway. An amendment changing the effective date to passage was adopted 18-0, and the committee then voted 18-0 to recommend OTPA on the bill as amended, with the bill placed on the consent calendar. The committee then retained HB 295 and HB 366, both related to school building aid, after members said the issues were complex and needed more work. Both motions to retain passed 18-0, leaving the bills in committee without reports. The chair also said HB 354 would not be taken up that day because of possible changes from the Department of Education and others. HB 494, funding the math learning communities program, was then amended to flat-fund the program rather than increase it, with members citing budget uncertainty. The amendment passed unanimously, and the committee then voted 18-0 for OTPA on the bill as amended, placing it on consent. Finally, HB 515, which would repeal charter public school eligibility for state school building aid, drew debate over whether charter schools should be treated differently from traditional public schools. The committee voted 10-8 for inexpedient to legislate, sending the bill to the regular calendar; Representative Damon was assigned the minority report and Representative Popovic the majority report. The committee then began HB 716, an appropriation for the dual and concurrent enrollment program, where members discussed flat-funding the program at $2.5 million per year and the potential impact on course availability, but the transcript cuts off before a final vote is shown.

Transcript Highlights:

• Some municipalities are doing never-ending audits that circumvent the Texas Prompt Pay Act.
• County clerks can gain instant auditable visibility.
• This means titles will be secure, verifiable, and auditable.
• Auditable. This reduces fraud and increases trust in the system.
• They perform thousands of procedures, including biopsies and line placements; coordinate care; perform

Bills: HB111

Summary: The committee heard a long series of House bills, with most measures laid out by Senate sponsors and then left pending after brief public testimony. Early bills focused on construction and licensing issues, including HB 305 on prompt payment for public construction audits, HB 5093 on restoring public access to notary contact information, HB 2037 on updating landlord-tenant repair and security deposit rules, HB 4214 on a centralized public information request contact database, and HB 5435 exempting higher education institutions from a 90-day notice requirement for certain public-private partnership projects. Testimony was generally supportive on these bills, and no votes were taken; each was left pending. The committee also considered several transparency and regulatory bills. HB 111 would expand the Public Information Act to certain nonprofit state associations and narrow some attorney-client and working-paper exceptions, with supporters arguing it would improve oversight of public funds and critics questioning the scope and thresholds. HB 5129 would protect occupational license holders’ personal identifying information from disclosure without consent, HB 4350 would allow peace officers to redact personal information from online real property records, HB 4748 would authorize multiple-award state purchasing contracts, and HB 4765 would clean up code enforcement officer licensing rules. HB 4134 would allow motor vehicle creditors to charge limited fees for electronic payment options while requiring a free alternative, and HB 1043 would direct a study of blockchain-based property title records; both drew testimony, with some concern about the practical effects and vendor implications of the blockchain study. Several bills addressed insurance, workforce, and digital-asset regulation. HB 3520 would reduce the insurance coverage required for transportation network companies during the period when a driver is en route to pick up a passenger, drawing support from Texans for Lawsuit Reform and opposition from trial lawyers who argued the higher coverage better protects the public. HB 3320 would create a self-insurance pool for religious institutions, with TDI explaining it would still be regulated but operate under a special statutory framework. HB 4233 would modernize rules for digital asset service providers by removing certain auditor-access requirements and updating reporting and licensing provisions. HB 3923 would reduce bachelor’s-degree requirements for some state jobs, though Every Texan argued low pay, not degree requirements, is the main driver of turnover. HB 4518 would create a legal structure for decentralized unincorporated nonprofit associations tied to blockchain governance; business law experts opposed it as unnecessary and potentially risky, while crypto advocates supported it. Finally, HB 1803 would join an interstate compact for dentists and dental hygienists, with supporters citing workforce shortages and opponents saying Texas already licenses quickly and that the compact could weaken state oversight. Throughout the hearing, the committee repeatedly closed testimony and left bills pending, and a quorum was eventually established before later items were heard.

Transcript Highlights:

• Um, a performance enhancing drug. Yes, sir. OK, um. On the kind of switching gears, but.
• Um, we also get audited by the state auditor's office.
• Um, so being able to give them an incentive for, for performance, I think is important.
• It's money for an external audit. Those audits come in handy.
• Um, individuals and then also to reward merit and performance for our, our high performing, um, staff

Transcript Highlights:

• The Department of Revenue collects taxes and also conducts audits when necessary.
• The Department of Revenue collects taxes and also conducts audits when necessary.
• The Department of Revenue collects taxes and also conducts audits when necessary.
• The Department of Revenue collects taxes and also conducts audits when necessary.
• The Department of Revenue collects taxes and also conducts audits when necessary.

Keywords: 1183, house

Transcript Highlights:

• So back to what I was kind of previously mentioning, you know, with that vendor that did not perform
• And then those projects that were remaining, we reassigned those projects to high-performing general
• contractors. ...projects that were remaining, we reassigned those projects to high-performing general
• So how often would you all maybe audit completed rebuilds? Can you repeat that question?
• So how often would you all maybe audit completed rebuilds for compliance with construction and safety

Summary: The Committee on Community Affairs met with a quorum and heard two bills, a confirmation, and two agency presentations. SB 48 by Senator Gates would require local governments to allow voluntary accessory dwelling units, preserve homestead exemption for the owner-occupied portion, limit parking restrictions, require 30-day minimum leases, extend density bonuses for military-family housing, and allow reusable tenant screening reports. The bill drew strong support from the Florida Association of Mortgage Professionals and several others, and it was reported favorably on a unanimous roll call. SB 34 by Senator Sharief would expand the Historic Cemetery Program, particularly to help historic African-American cemeteries preserve and maintain themselves by allowing sale of excess vacant land only if proceeds are used for long-term upkeep; it also passed unanimously and was reported favorably. The committee also recommended confirmation of Fox Henderson to the Florida Housing Finance Corporation Board of Directors by unanimous vote. In addition, the Department of Commerce presented on the Community Development Block Grant Disaster Recovery program and Rebuild Florida, describing more than $4.3 billion in HUD disaster recovery funds since 2017, housing repair and replacement efforts that have completed more than 5,200 homes, and infrastructure and mitigation projects across the state. Members asked about average project costs, contractor oversight, corrective actions for deficient work, and clawbacks from a prior vendor; Commerce said it had ended the earlier vendor relationship, imposed about $3.6 million in financial consequences, and now uses stronger oversight and competitive procurement for contractors. The Division of Emergency Management then presented on Elevate Florida, a federal mitigation program that allows homeowners to apply directly for elevation, reconstruction, acquisition, or wind-mitigation projects, with a 75/25 federal-homeowner cost share and no state funds used. Director Kevin Guthrie said the program is intended to reduce repetitive flood losses, keep homeowners in their communities, and serve as a national model; he reported more than 12,000 applications, about 1,500 prioritized for review, 500 on a wait list, and 305 submitted to FEMA for final approval. Members asked about assistance for seniors who cannot meet the 25% match, the wait-list process, contractor selection, and the mix of project types, and Guthrie said contractors were selected through competitive procurement and that most projects are elevations, though some may become reconstructions or acquisitions depending on inspection results. The committee adjourned after the presentations.

Transcript Highlights:

• And three, evaluate the performance of agency inspectors general and recommend improvements as needed
• the federal guidelines and procedures, those were performed by the auditor.
• <00:09:16.520> and<00:09:17.160> verification<00:09:17.840> that review, audits
• , and verification that review, audits, and verification that we're<00:09:18.160> following<00
• <00:09:21.880> by and procedures, those were performed by and procedures, those were performed

Keywords: 919, house, all

Summary: The committee took up Senate File 856, relating to creation of an independent Office of Inspector General to fight fraud in Minnesota. Representative Norris presented a DE6 author’s amendment that he said fixed constitutional appointment language, expanded the office’s fraud-prevention role, and made other noncontroversial cleanup changes. He emphasized that the bill was still not finished and that more work remained before it would be ready for final House passage. Members raised several concerns. Representative Joy questioned language about who has primary investigative authority in Medicaid-related cases and whether the bill could create confusion over who may freeze funds; Norris responded that federal rules require administering agencies to be primary investigators and said the language was intended to comply with those rules while still ensuring investigations happen. Representative Bahner said the bill was improved, especially on constitutionality and prevention, but noted remaining concerns about agency expertise, duplication of effort, and funding. Representative Quam argued the state already has the Office of the Legislative Auditor and other processes in place, while Norris said an executive-branch office working directly with agencies could help ensure best practices are actually implemented. Several members, including Representative Cleborne and Representative Craft, said they remained concerned about duplication, cost, and language they believed still placed the new office above state law, though they acknowledged the bill was improved and constitutional issues had been addressed. The chair moved the DE6 amendment, which was adopted, and then the committee voted on Senate File 856 as amended. The bill passed on a roll call vote of 13 ayes and 1 nay and was referred to the Judiciary Committee.

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:

• 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
• Fink, the last audit that was referred to the prosecuting attorney and attorney general was a finding

Summary: The Legislative Audit Education Institution Subcommittee met to adopt the previous minutes and review 57 education audit reports, 52 of which had no findings and were filed as reviewed. The committee heard several findings involving school district spending and internal control issues, including Camden-Fairview’s use of operating funds for an employee awards banquet and unauthorized credit card charges, Forest City’s use of operating funds for an end-of-year celebration and entertainment event, Nettleton’s fraudulent vendor payment scheme involving $1.9 million in attempted transfers, Cedar Ridge’s misallocation of Title I funds and payroll/bank reconciliation errors, and Green County Technical’s diverted vendor check that was recovered. Three of the reports had been referred to the prosecuting attorney and attorney general. Members asked questions about whether district officials were present, how the questionable expenditures were broken down, and whether school boards had prior knowledge or approval. The committee deferred the Camden-Fairview, Forest City, and Nettleton reports to the June meeting and requested district representatives attend to answer questions. Cedar Ridge and Green County Technical were not deferred; Cedar Ridge was filed, and Green County Technical was reviewed without further action. Staff also discussed recurring fraud and banking-control issues seen in school audits, including altered checks, email-based banking changes, and the use of positive pay and in-person verification for deposit changes. Members encouraged better communication with school districts and noted that clean audits should be recognized. The committee then filed the remaining no-finding reports and adjourned with no new business.

Transcript Highlights:

• I mean, we see that now in some of our concession agreements that we audit, where sometimes the money's
• When I'm looking at things under audit, it's confidential.
• It's just when you start your kind of assessments and I start my audits, that's when the walls kind of
• It's not an audit. It's not a bill.
• Single source of truth for the data that it's coming from, and it's not an audit.

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.