APPROVED
MINUTES OF THE
LEGISLATIVE AUDIT SUBCOMMITTEE
Tuesday, August 22, 2017 • 4:00 p.m. • 250 State Capitol


Members Present:
President Wayne L. Niederhauser, Co-chair
Speaker Gregory H. Hughes, Co-chair
Sen. Gene Davis
Sen. Ralph Okerlund
Rep. Brian S. King
Rep. Brad R. Wilson

Staff Present:
Mr. John M. Schaff, Auditor General
Mr. Darin R. Underwood, Deputy Auditor General
Ms. Lynda M. Maynard, Administrative Assistant

Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.

Speaker Hughes called the meeting to order.
1. Approval of prior meeting minutes
MOTION: President Niederhauser moved to approve the minutes of June 20, 2017.The motion passed with a vote of 6 - 0 - 0 .
Yeas - 6Nays- 0Abs- 0
Sen. G. Davis
Rep. G. Hughes
Rep. B. King
Sen. W. Niederhauser
Sen. R. Okerlund
Rep. B. Wilson
2. Audit report presentations:
Kade Minchey, Audit Manager, introduced Tim Bereece, Audit Supervisor and Nicole Luscher, staff auditor, who will be presenting A Performance Audit of Public Entities' Oversight of Qualified Health Insurance Statutes, Report #2017-07.
Tim Bereece, Audit Supervisor, presented Report #2017-07, A Performance Audit of Public Entities' Oversight of Qualified Health Insurance Statute.
Rep King discussed the report, specifically QHI Requirement---Access to Health Care Coverage.
Rep Wilson discussed CMGC projects; asking if there is an increase in costs in a significant way.
Jim Russell, Director DFCM, addressed the audit findings and introduced Denise Austin, Contract Coordinator and Attorney General, Mike Kelley.
Spkr Hughes spoke to the issue of statutory obligations.
Jim Russell responded to Spkr Hughes concerns.
John Schaff spoke to the issue of QHI no longer allowing an exemption for CMGC, saying the recommendation in the audit is actually to the Legislature requesting they consider amending the statute.  Also, another recommendation in the audit is to have the sub-contractor report an actuarial statement to the prime contractor.
MOTION: Pres Niederhauser moved to refer Report #2017-07, A Performance Audit of Public Entities' Oversight of Qualified Health Insurance Statute to the Business and Labor Interim Committee, as the lead Committee and to the Infrastructure & General Government Appropriations Subcommittee as the review committee.The motion passed with a vote of 6 - 0 - 0 .
Yeas - 6Nays- 0Abs- 0
Sen. G. Davis
Rep. G. Hughes
Rep. B. King
Sen. W. Niederhauser
Sen. R. Okerlund
Rep. B. Wilson
Jake Dinsdale presented Audit Report #2017-06, A Performance Audit of Statewide Investigative Functions and explained why it was requested.
Rep Brian King spoke to the issue of duplication, wasteful inefficiency and activity codes.
Rep Wilson spoke to the issue of Full Spectrum Authority.
Spkr Hughes discussed personal disagreements.
Spencer Austin, Chief Criminal Deputy, Attorney Generals Office, introduced Ric Cantrell, Chief of Staff, and explained that Attorney General Reyes was unable to attend due to a prior commitment.  Chief Deputy Austin spoke to the audit and thanked the audit staff for their professionalism and personally thanked Jake Dinsdale for his commitment and dedication.
Major Brian Redd, Department of Public Safety, Director, State Bureau of Investigation, said the audit was helpful in better defining the roles and responsibilities of each investigative agency, clarifying statutory responsibilities and he addressed issues on the operation side.
Brian King spoke to the issue of using activity codes and thanked John Schaffs' Office for their work.
MOTION: President Niederhauser moved that the Performance Audit of Statewide Investigative Functions, Report #2017-06, be referred to the Law Enforcement and Criminal Justice Interim Committee as the lead Committee and to the Executive Offices and Criminal Justice Appropriations Subcommittee as the review committee.The motion passed with a vote of 6 - 0 - 0 .
Yeas - 6Nays- 0Abs- 0
Sen. G. Davis
Rep. G. Hughes
Rep. B. King
Sen. W. Niederhauser
Sen. R. Okerlund
Rep. B. Wilson
3. Prioritization of Audits
John Schaff asked the committee for clarification on the process of new audit requests.
Pres Niederhauser spoke to the clarification issue, indicating the Committee was in agreement with the Auditor General's current process. 
MOTION: President Niederhauser made a motion to remove the Salt Lake County Elections Process and Controls audit request from the "Future Audits in Priority Order", based on the recommendation of the Legislative Auditor General. The motion passed with a vote of 4 - 0 - 2 .
Yeas - 4Nays- 0Abs- 2
Rep. G. Hughes
Sen. W. Niederhauser
Sen. R. Okerlund
Rep. B. Wilson
Sen. G. Davis
Rep. B. King
4. Other Business
Attorney General Sean Reyes thanked the Audit Subcommittee for allowing Chief Deputy Spencer Austin to represent the Attorney Generals' Office while he was detained.
5. Adjournment
Speaker Hughes adjourned the meeting.