Transcript Highlights:

• , and verification that review, audits, and verification that we're<00:09:48.200> following<00
• recent audit. recent audit.
• But basically, what this is doing is when we do audits, they review the processes, and they'll point
• , I am the vice chair of Legislative Audit.
• the chair of the Legislative Audit the chair of the Legislative Audit Commission,<00:26:58.120><

Bills: SF856, HF4482, HF3672, HF1234, HF4591, HF3554, HF936

Keywords: Inspector General, fraud prevention, state audit, public funds, misuse, transparency, government accountability, HF4482, Minnesota Historical Society, state historic sites, historic site management, historic preservation, county historical society, local historical society, municipality, county government, admission fees, grants-in-aid, site operations, site maintenance

Transcript Highlights:

• That updates and modernizes our Oklahoma Municipal Audit Audit.
• That updates and modernizes our Oklahoma municipal audit process for small communities under 2,500 population

Bills: HB1268, HB3041, HB3075, HB3378, HB3463, HB3619, HB3620, HB3624, HB3722, HB4335

Keywords: retirement, public employees, deferred option plan, service credit, contributions, distributions, credit card transactions, payment methods, service charge, consumer rights, financial regulation, rounding, cash payments, public finance, Oklahoma Common Cents Act, political subdivision, science and technology, research, board appointments, emergency legislation

Transcript Highlights:

• I'm seeing where it says if total grant funds exceed $100,000, then a financial audit has to take place
• After $100,000, there is or the potential for an audit. Follow up, thank you.

Bills: SB1307, SB1425, SB1826, SB1365, SB1696

Keywords: SB1425, health care, healthcare workforce, workforce board, Health Care Workforce Resources Board, Health Care Workforce Resources Act, Oklahoma Health Care Workers and Educators Assistance Program, repeal, statutory repeal, health care workers, educators, workforce development, health professions, state board, assistance program, Oklahoma statutes, economic development, incentives, enterprise zones, local government

Transcript Highlights:

• would be with an audit log if they did institute digital ID.
• would be with an audit log if they did institute digital ID.
• would be with an audit log if they did institute digital ID.
• would be with an audit log if they did institute digital ID.
• would be with an audit log if they did institute digital ID.

Keywords: 1183, house

Transcript Highlights:

• The legislative auditor's existing audits don't really give us any meaningful insight into policy impact
• A financial audit can tell us that the Department of Health paid dues to a national association.
• A financial audit can tell us that the Department of Health paid dues to a national association.

Bills: HR290, HR298, SB405, SCR61, HR318

Keywords: gender-affirming care, gender affirming therapy, gender-affirming hormone therapy, transgender health, trans youth, LGBTQ, mental health, psychosis, psychiatric conditions, puberty blockers, androgen blockers, cross-sex hormones, estrogen, testosterone, informed consent, screening, monitoring protocols, Louisiana Department of Health, LDH, House Health and Welfare

Bills: SB1302, SB1389, SB1401, SB1776, SB1809, SB1858, SB1985, SB2053, SB2148

Keywords: income tax, tax rates, revenue certification, Oklahoma Tax Commission, state budget, education, tax credit, school choice, private school, tuition assistance, income limits, parental choice, accreditation, insurance, taxation, premium, home office credit, healthcare, teacher tax credit, income tax credit

Bills: SB9, SB90, SB82, SB84, SB9, SB90, SB82, SB84

Keywords: Alabama Athletic Commission, Attorney General, criminal penalties, unarmed combat, regulation, boxing, mixed martial arts, civil fines, Green County, racing, pari-mutuel wagering, gaming regulations, commission appointments, historical horse racing, local tax, SB82, warrant recall, outstanding warrants, stale warrants, misdemeanor warrants

Transcript Highlights:

• Legislative Audit issued two reports for the audit of the state's financial statements.
• The Single Audit Act requires that the audit of the state...
• The Single Audit Act requires that the audit of the state be conducted to meet five objectives.
• Okay, so that audit is in process right now. When would that audit be released to us?
• What's the current process for evaluating the logs that are being—you're obviously Evaluating the logs

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• Legislative Audit issued two reports for the audit of the state's financial statements.
• The Single Audit Act requires that the audit of the state...
• The Single Audit Act requires that the audit of the state be conducted to meet five objectives.
• The audit for your 2020...
• We didn't know if a complete audit would, whenever we requested this, we requested an actual audit.

Keywords: 1204, all

Transcript Highlights:

• logs indicated that there the logs, the logs indicated that there had<00:18:31.679> been<00:18
• 2027 audit if it's adequate. 2027 audit if it's adequate.
• be exempt from audits.
• I mean, I think auditing bad actors, you know, audit bad actor every year.
• <01:19:01.600> Um, audits done. Um, audits done.

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:

• Safety Program Audit of 2025.
• Additionally, the activity logs—I acknowledge that at the time of this audit we did not have one activity
• log, and we did not have the ability to collect all of those activity logs.
• It's a self-audit, essentially, and having ASU do that self-audit for you...
• Some numbers that came out of that audit. And this was not an audit of ADE.

Keywords: 1182, all

Transcript Highlights:

• Welcome to House and Senate Legislative Audit.
• , internal audit reported a total loss of $66,000.
• I'm the Chief Audit Executive for the University of Arkansas System.
• And so they would log in just enough to still be an active student.
• Let's bring an audit to confirm. Are we seeing what we're seeing?

Summary: The House and Senate Legislative Audit committee met to approve prior minutes and review four higher education audit reports. Staff first presented the University of Arkansas System report, which included three findings that had been certified and referred to the Governmental Bonding Board, the attorney general, and the appropriate prosecuting attorney: unauthorized purchases at UAPB totaling about $37,000, a fraud scheme involving falsified FAFSA/transcript records at East Arkansas Community College with about $66,000 in losses, and unallowable charges in the Veterans Upward Bound program at UA Fayetteville totaling $8,500, of which $6,700 was recovered. Committee members praised the institutions’ internal audit and management teams for identifying the issues and asked detailed questions about how the fraud was detected, especially the online student identity-theft scheme at EACC and the safeguards now being used to verify student identity and prevent similar cases. EACC officials explained that the fraudulent admissions involved online applicants using falsified transcripts and identity-theft tactics, that 39 suspicious students were identified, and that seven slipped through far enough to receive federal aid, resulting in a $2,500 reimbursement obligation to the university. They said the college now uses a cross-departmental student validity team, extensive red-flag protocols, direct outreach to high schools, ID verification, and other checks, and that the issue has been shared across the UA system and with other campuses. UA Fayetteville also clarified that no veterans were harmed by the Veterans Upward Bound finding; the program was closed and students were redirected to other veteran support programs in the state. The committee then deferred the Northwest Arkansas Community College report. Staff next summarized two additional reports, from Southeast Arkansas College and Southern Arkansas University Tech, which contained only financial statement misstatements corrected during audit fieldwork; SAU Tech also had a finding involving unauthorized withdrawals that the college discovered and recovered. With no further questions, the committee voted without objection to file the reviewed reports and adjourned.

Transcript Highlights:

• Legislative Audit issued two reports for the audit of the state's financial statements.
• Legislative Audit issued two reports for the audit of the state's financial statements.
• The Single Audit Act requires that the audit of the state be conducted to meet five objectives.
• Okay, so the audit—that audit is in process right now.
• Was this the same firm that had been doing previous audits and had completed the 2022 audit that was

Summary: The committee met to adopt prior minutes and reports from its executive and standing committees, including counties and municipalities, educational institutions, and state agencies. Those reports covered routine audit activity, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, and several state agency audit items. The committee also reviewed and adopted the State of Arkansas annual comprehensive financial report for fiscal year 2025 and the related single audit report, both presented by Legislative Audit staff. The state financial report showed unmodified opinions on the state’s financial statements and described total assets of about $41.9 billion and liabilities of about $11.1 billion, along with retirement system assets of $39.9 billion and a net pension liability of $9 billion. Two material weaknesses were identified: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and a Division of Workforce Services methodology change for unemployment-related estimates that was not properly documented or approved. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; it resulted in 33 findings, 14 with questioned costs totaling $16.6 million, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Members questioned agency officials in detail about the Summer EBT questioned costs, DHS unresolved findings, broadband grant documentation, cyber security controls, workers’ compensation liabilities, and child care funding and reporting. DHS explained that the Summer EBT issue involved drawing federal funds in advance rather than as benefits were redeemed, and said the process has been corrected. Broadband officials said the questioned $6.6 million reflected documentation-detail disagreements across many invoices rather than missing payments. OST officials described new logging, endpoint detection, and phishing-training efforts, and DFA and Education officials addressed specific audit findings and corrective actions. The committee ultimately moved to hold the two large statewide reports over until the August meeting for further review, with discussion continuing on whether to release some agency staff in the meantime.

Transcript Highlights:

• the ISO standard recommends on a device and audit log.
• What is your position or concerns with an audit log if we did do an instituted digital ID?
• the ISO standard recommends on a device and audit log.
• What is your position or concerns with an audit log?
• ...what is your position or concerns with an audit log if we did do an instituted digital ID?

Keywords: 1183, house

Transcript Highlights:

• audit for the single audit in this upcoming year.
• Decker, so as part of the audit, are you able to pull, or do you focus on the computer logs to verify
• But as part of the audit process, do you also go in and look at the computer traffic logs?
• audit.
• So there would be a financial audit log on a yearly basis then for DES, specifically for child care?

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.

Transcript Highlights:

• in a previous audit?
• Decker, so as part of the audit, are you able to pull or do you focus on the computer logs to verify
• But as part of the audit process, do you also go in and look at the computer traffic logs?
• audit.
• So there would be a financial audit log on a yearly basis then for DES, specifically for child care?

Keywords: 1182, all

Transcript Highlights:

• logs so you know when this data is being accessed, which would also, if the network is compromised,
• <00:14:09.760> logs<00:14:10.120> so<00:14:10.600> you<00:14:10.800> know
• <00:14:11.760> when<00:14:12.040> this have audit logs so you know when this have audit
• logs so you know when this data<00:14:12.520> is<00:14:12.640> being<00:14:12.880>
• to have logs of who accesses<00:20:28.680> the<00:20:28.760> footage.

Keywords: 1183, house

Summary: State Representative Nolan West announced “Harvey’s Law,” a proposal to require child care centers that receive state funding through CCAP, early learning scholarships, or Great Start compensation to install cameras in infant and toddler rooms and retain footage for 28 days. West said the bill is an expansion of portions of House File 1915 passed last year, arguing that cameras are needed for transparency, accountability, and child safety, and that waiting for a maltreatment violation before requiring cameras is too late. He also said the measure is aimed at centers rather than family child care, and that he would like to see cameras more broadly but is focusing this bill on state-funded centers. West and Harvey’s parents, Catherine and Hunter Mucklebust, described Harvey’s death at daycare and said cameras could have revealed earlier abuse, prevented later harm, and led to stronger accountability. They said they believe Harvey would still be alive if cameras had been installed, and that even if the bill does not pass in full, any step toward cameras would be meaningful. A statement from Blaine Police Captain Mark Borboom was read, saying a 2024 child care abuse investigation showed how a 7-day retention period can cause critical evidence to be lost and that cameras are about transparency and protection, not surveillance. During questions, West addressed privacy and cybersecurity concerns, saying the bill uses closed-circuit systems, access controls, and audit logs, and that cybersecurity experts would testify at the committee hearing. He said the main opposition is the risk of hacking, but he believes child safety outweighs that concern. West also clarified that the bill discussed at a separate 3:00 hearing was a different measure related to CCAP fraud and attendance verification, not Harvey’s Law. The Mucklebusts said they expect a long legislative process but remain committed to pushing the bill forward.

Transcript Highlights:

• , audit, we will be taking up audit 25-06, audit, we will be taking up audit 25-06, Department<00
• But my question is, did the board at any time take up the audits? >> This audit or the next audit?
• But my question is, did the board at any time take up the audits? >> This audit or the next audit?
• >> this audit or the next audit? uh for for >> this audit or the next audit?
• Um we we do take the audit the audit.

Keywords: 912, senate, all

Transcript Highlights:

• They currently do an audit now, but this bill, as I read it, goes back... ...currently do an audit now
• So during their audit planning process, they would plan to do this audit.
• Well, they already do audits anyway.
• They would be conducting the audit, excuse me, and that is not within their normal, that kind of audit
• This is not an investigation, it's an audit. It's a fiscal audit.

Bills: HR3, HR80, HB4, HB172, HB189, HB623, HB944, HB1185, HB1199, HB1222, SB105, SB125, SB461

Keywords: housing assistance, state-owned property, cost-burdened, state employees, affordable housing, fiscal audit, higher education, public funds, underrepresented minorities, Board of Regents, Louisiana legislation, constitutional convention, Louisiana constitution, electoral process, government structure, delegate elections, airport authority, fire protection, supplemental pay, public safety

Summary: The committee first took up Senate Bill 105, which would reinstate an existing TOPS Tech benefit for eligible veterans after a sunset expired. The author said the program had been underused because it was not well promoted, but that the new veterans workforce effort called “The Boot” would help connect veterans to the benefit. Members confirmed it would use existing TOPS funds and not require new money, and the bill was reported favorably without objection. House Resolution 3 asked the Louisiana Housing Corporation to study whether vacant state-owned property could be used for housing and rental assistance for cost-burdened state employees. The author described it as an exploratory study, while members raised concerns about the fiscal note and the scope of the study. Fiscal staff explained the agency had requested additional positions to do the work. The committee discussed narrowing the study to certain areas, but the resolution was ultimately reported favorably. House Bill 189 sought supplemental pay for fire protection officers at the Lakefront Management Authority’s airport. The author and airport representatives argued the firefighters perform hazardous, specialized ARFF duties at a busy public airport and should be treated like other supplemental-pay recipients. Some members questioned whether the airport and its employees qualified under existing law and whether the proposal would expand an already costly program. After debate, the committee rejected the bill on an 8-10 vote. The committee then reported Senate Bill 461 favorably, which would place certain small groups of active employees under the Office of Group Benefits to improve insurance rates without using general fund money. House Bill 623, creating a three-tier permitting system for vapor product producers, manufacturers, and wholesalers, was amended to clarify the direct-to-consumer shipment prohibition and then reported favorably. House Bill 1222, which would authorize LED to create a grocery initiative grant and assistance program to address food deserts, drew extended debate over whether it would amount to government-run grocery stores; supporters said it would only create incentives for private grocers and related assistance. It was amended and reported favorably by a 16-2 vote. Finally, House Resolution 80, as amended, would shift a proposed audit-related effort on higher education budget metrics away from the legislative auditor and toward university systems’ own boards; members questioned the need for a look-back report and the added workload, and the chair indicated he would move to recommit the resolution to the education committee.

Bills: HB166, HB487, SB130, SB181, HB166, HB487, SB130, SB181

Keywords: education policy, wireless communication devices, internet safety, social media, mental health, HB487, Alabama G.I. Dependent Scholarship Program, veterans, disabled veterans, dependents, spouse benefits, widow benefits, children of veterans, tuition assistance, education benefits, scholarship, college aid, undergraduate tuition, private school reimbursement, books and fees