Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES

Date:01/21/2015
ATTENDANCE
Time:09:32 AM to 10:48 AM
Arndt
X
Baumgardner
X
Place:HCR 0107
Becker J.
X
Becker K.
X
This Meeting was called to order by
Brown
X
Representative Vigil
Buck
X
Cooke
*
This Report was prepared by
Coram
X
Meghan O'Connor
Danielson
X
Donovan
*
Dore
X
Garcia
X
Ginal
X
Hodge
*
Jones
*
Lebsock
X
Mitsch Bush
X
Roberts
X
Saine
*
Scott
X
Sonnenberg
*
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
JBC Presentation on FY 2015-16 Budget Request
Unimplemented Audit Recommendations - State Auditor's Office		Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only


09:34 AM -- Joint Budget Committee presentation on Department of Agriculture, Department of Natural Resources, and Colorado Energy Office FY 2015-16 budget request

Representative Rankin began the presentation for the Joint Budget Committee (JBC) and introduced the other members of the committee and JBC staff.

Representative Rankin explained the budget request process to the committee and summarized the FY 2015-16 budget request for the Department of Agriculture (department) and noted that the department has a new budget request for State Fair maintenance. Representative Rankin explained that a recent report from the Office of the State Auditor (OSA) identified two main problems with the State Fair -- accounting and financial sustainability. Representative Rankin also noted that the department addressed the implementation of industrial hemp cultivation in the state was presented in its briefing with the JBC.


The JBC fielded questions from the committee regarding funding for the state fair, sustainability of the state fair and the fairgrounds, and industrial hemp production. Senator Lambert stated that he believed that the House and Senate Agriculture committees should receive briefings from the Department of Agriculture in light of the recent negative audit of the state fair.

09:57 AM
Representative Rankin summarized the FY 2015-16 budget request from the Department of Natural Resources (DNR) and stated that he would be summarizing each request briefly. Representative Rankin began with DNR's budget increase request to expand the Oil and Gas Conservation Commission's (OGCC) permitting and hearing staff, purchase contract services, and fund additional leased space. Committee discussion ensued regarding the budget request for the OGCC.

Representative Rankin summarized the second major request from DNR, which includes an increase in funds to hire deputy well and water commissioners in response to increasing administration responsibilities in the Arkansas and Yampa River basins. After a short discussion regarding the need for an the increase, Representative Rankin summarized the request from the Colorado Avalanche Information Center to increase funds to support two new forecasters and to provide administrative support for the program. Representative Rankin summarized the final request for the reclamation of forfeited mining sites, which would include a reauthorization of funds from the Severance Tax Operational Fund to continue reclamation work at forfeited mine sites with insufficient bonds.

Representative Rankin continued the presentation and explained the issue of the status of the Severance Tax Operational Fund, noting that, using forecasts from Legislative Council Staff and the Office of State Planning and Budgeting (OSPB), the decrease of oil prices will affect severance tax revenue projections for the current fiscal year. Representative Rankin stated that the JBC was asked to divert severance tax money to the General Fund in order to pay for refunds to taxpayers according to TABOR; however the JBC deferred action on that decision. Representative Rankin stated that the JBC has drafted one bill reassigning the Mining Reclamation Fund as a Tier II program under the use of severance tax dollars. Discussion ensued regarding the reclamation of mining sites and the reassignment as a Tier II program.

Senator Lambert readdressed funding for the State Fair and explained that the losses from the state fairgrounds come from off-season events rather than the state fair itself, and discussion ensued with the committee.

Representative Rankin closed his comments and the committee recessed.

10:22 AM -- Unimplemented Audit Recommendations - State Auditor's Office

Kerri Hunter, Deputy State Auditor from the Office of the State Auditor (OSA), began the office's presentation to the committee regarding outstanding audit recommendations. Ms. Hunter referenced the State Auditor's Annual Report of Audit Recommendations not Fully Implemented as of June 30, 2014, which was distributed to the committee (Attachment A). Ms. Hunter gave general background of the OSA and explained the organization of the report.

150121 AttachA.pdf150121 AttachA.pdf


Trey Standley, Legislative Auditor, discussed financial audit recommendations and performance and IT audit recommendations and how each type of recommendation is classified. He explained that there are no high priority financial audit recommendations for the Department of Agriculture, Department of Natural Resources (DNR), or Great Outdoors Colorado (GOCO). There are 2 high priority performance and IT audit recommendations for the Department of Agriculture and one high priority performance and IT audit recommendation for DNR. Mr. Standley fielded questions from the committee regarding what an outstanding recommendation means generally.

Jeffery Kahn, Financial Audit Manager for the OSA, began his presentation on recommendations outstanding for the Department of Agriculture and DNR. Mr. Kahn noted that the Department of Agriculture has one outstanding financial audit recommendation, which addresses the State Fair and how the State Fair manages funds. He discussed the three outstanding performance and IT audit recommendations for the Department of Agriculture. Mr. Kahn discussed the outstanding financial audit recommendations, as well the as performance and IT audit recommendations. Mr. Kahn noted that there are 4 financial audit recommendations and one performance and IT audit recommendation still outstanding. Mr. Kahn fielded questions from the committee regarding cash funds in each department and how much funds departments are able to retain on a yearly basis. Mr. Kahn continued to explain the outstanding recommendations from GOCO and fielded more questions from the committee. GOCO currently has one outstanding financial audit recommendation. Committee discussion ensued regarding the background of the audit of GOCO.

10:48 AM

The committee adjourned.