Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT BUSINESS AFFAIRS & LABOR

Date:01/29/2013
ATTENDANCE
Time:09:47 AM to 10:17 AM
Balmer
X
Baumgardner
X
Place:LSB A
DelGrosso
X
Exum Sr.
X
This Meeting was called to order by
Hamner
X
Senator Tochtrop
Heath
*
Holbert
X
This Report was prepared by
Jahn
X
Damion Pechota
Kraft-Tharp
E
Navarro-Ratzlaff
X
Nordberg
X
Rosenthal
X
Ryden
X
Szabo
X
Williams
X
Tochtrop
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Presentation by the Office of the State AuditorWitness Testimony and/or Committee Discussion Only


09:48 AM -- Presentation by the Office of the State Auditor

Kerri Hunter, Cynthia Hochmiller, and Greg Fugate, audit managers, representing the Office of the State Auditor, introduced themselves to the committee. Ms. Hunter introduced the Auditor's recommendations for the Department of Labor and Employment, the Department of Personnel and Administration, the Department of Regulatory Agencies, and the Governor's Office of Information Technology that the departments had not implemented. Ms. Hunter gave an introduction of the Office of the State Auditor and provided an overview of the 2012 Annual Report. She explained the recommendations have two audit types: financial audits and performance and information technology audits.

130129 AttachA.pdf130129 AttachA.pdf

Ms. Hochmiller introduced and summarized the financial audit recommendations throughout the 2012 Annual Report. She specifically summarized the financial audit of the Governor's Office and the Department of Labor and Employment.

Senator Tochtrop asked for clarification about levels of deficiencies. Ms. Hunter summarized the levels of deficiencies assessed by the Office of the State Auditor.

Representative Rosenthal asked about the depth of performance audits.



Ms. Hochmiller summarized the financial audit recommendations for the Department of Labor and Employment, the Department of Personnel and Administration, and the Department of Regulatory Agencies.

Representative Szabo asked if departments must comply with the recommendations. Ms. Hochmiller answered the question and clarified the departmental compliance process with the audit recommendations. Representative Szabo asked a follow-up question regarding a timeline for compliance and potential consequences.

10:01 AM

Senator Tochtrop discussed the SMART Government Act and procedures of financial oversight. Ms. Hochmiller summarized the financial recommendations for the Department of Regulatory Agencies.

10:03 AM

Mr. Fugate summarized the performance and IT audit findings for the Department of Labor and Employment, the Department of Personnel and Administration, the Department of Regulatory Agencies, and the Governor's Office of Information Technology.

Senator Heath asked a question on the Department of Regulatory Agencies' financial audit recommendations. Ms. Hunter answered the question on compliance. Senator Heath asked a follow-up question about concerns related to unimplemented recommendations. Senator Tochtrop answered the question on procedures of the Audit Committee and oversight of the committees of reference for the SMART Government Act and discussed concerns about unimplemented audit recommendations.

10:12 AM

Senator Heath asked for clarification about financial audit deficiencies. Ms. Hunter answered the question. Senator Heath asked for an example of a departmental response. Ms. Hunter summarized a response by the Department of Regulatory Agencies (DORA) on unimplemented financial audit recommendations. Senator Heath discussed the DORA response.

Senator Tochtrop discussed the audit recommendation procedure. Ms. Hunter clarified policies and procedures of the audit recommendation process.

Representative Ryden discussed the audit recommendation process. Senator Tochtrop discussed public accessibility to the recommendations.

10:17 AM

The committee adjourned.