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MINUTES OF THE
LEGISLATIVE AUDIT SUBCOMMITTEE
Tuesday,
June 18, 2024
•
2:00 p.m.
•
445 State Capitol
Members Present:
President J. Stuart Adams, Co-chair
Speaker Mike Schultz, Co-chair
Sen. Luz Escamilla
Sen. Evan J. Vickers
Rep. Jefferson Moss
| Rep. Angela Romero
Staff Present:
Brian J. Dean, Deputy Auditor General
Donna Hernandez, Office Manager
Darin R. Underwood, Deputy Auditor General
Kade R. Minchey, Auditor General
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Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.
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| Chair Schultz called the meeting to order. |
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| MOTION:Senator Vickers made a motion to approve the minutes from the May 14, 2024 meeting. The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |
| 2.Audit Report Presentations |
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| Mr. Jesse Martinson, Audit Manager introduced A Performance Audit of Mineral Royalty Agreements: An Examination of Mineral Production on the Great Salt Lake (Report 2024-03). |
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| A Performance Audit of Mineral Royalty Agreements: An Examination of Mineral Production on the Great Salt Lake (Report 2024-03) |
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| Mr. Martinson and Ms. Nichole Luscher presented on the findings of the audit. |
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| Ms. Luscher responded to questions from Speaker Schultz regarding: |
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| - Revenue generated by mineral extraction on the Great Salt Lake, |
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| - Shipping costs of the operators extracting minerals, |
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| - Differences in the administrative rates being charged to the operators extracting minerals from the Great Salt Lake, |
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| - Oversight of the Division of Forestry, Fire and State Lands over the operators extracting minerals, |
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| - A follow up question about manpower and the oversight of the Division of Forestry, Fire and State Lands. |
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| Ms. Luscher responded to questions from Senator Escamilla regarding: |
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| - The number of internal audits previously done on operators, |
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| - The statutory authority of the Division of Forestry, Fire and State Lands to collect royalties from the operators extracting minerals from the Great Salt Lake, |
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| - A follow up question about operators paying royalties, |
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| - The contracts of the operators, |
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| - A follow up question about the number of operators who have an older royalty contract. |
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| Ms. Luscher responded to questions from Representative Moss regarding: |
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| - Distribution of funds received by the Division of Forestry, Fire and State Lands, |
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| - A follow up question about the statutory provision for the distribution of funds received by the Division of Forestry, Fire and State Lands. |
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| Ms. Luscher responded to a question from Senator Vickers about administrative rules. |
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| Ms. Jamie Barnes, Director of the Division of Forestry, Fire and State Lands and Mr. Ben Stireman, Deputy Director of the Division of Forestry, Fire and State Lands responded to the findings of the audit. |
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| Ms. Barnes responded to a question previously asked by Senator Vickers on the administrative rules of the Division of Forestry, Fire and State Lands being reviewed. |
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| Ms. Barnes responded to previously asked questions by Senator Escamilla regarding: |
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| - Previous internal audits, |
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| - The older royalty agreements. |
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| Ms. Barnes discussed appropriations, HB157 and the funding of the Division of Forestry, Fire and State Lands. |
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| Mr. Stireman discussed a newly funded position in the Division of Forestry, Fire and State Lands. |
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| Ms. Barnes responded to a question from Representative Romero about the operation plan of the Division of Forestry, Fire and State Lands. |
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| Ms. Barnes responded to a question from Senator Escamilla about the collection of royalties. |
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| Ms. Barnes responded to a question from Speaker Schultz on relationships between the Division of Forestry, Fire and State Lands and its stakeholders. |
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| Speaker Schultz thanked the Division of Forestry, Fire and State Lands for their help gauging water levels on the Great Salt Lake and the changes being made. |
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| MOTION: President Adams moved to refer A Performance Audit of Mineral Royalty Agreements: An Examination of Mineral Production on the Great Salt Lake to the Natural Resources, Agriculture, and Environment Interim Committee as the lead committee and the Natural Resources, Agriculture, and Environmental Quality Appropriations Subcommittee as the review committee.The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |
| 3.Audit Report Presentations |
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| Mr. Brian Dean, Deputy Auditor General introduced the purpose of government excellence and efficiency evaluations. |
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| Mr. Dean introduced the Efficiency Evaluation Follow Up: Utah Department of Alcoholic Beverage Services Inventory Management Efficiency Evaluation. |
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| Efficiency Evaluation Follow Up: Utah Department of Alcoholic Beverage Services (DABS) Inventory Management Efficiency Evaluation (Report 2024-09) |
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| Mr. Brent Packer, Performance Audit Supervisor, presented on the findings of the audit. |
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| Ms. Tiffany Clason, Executive Director of the Department of Alcoholic Beverage Services responded to the findings of the audit. |
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| Mr. Cade Meier, Deputy Director of the Department of Alcoholic Beverage Services responded virtually to the findings of the audit. |
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| MOTION: President Adams moved to refer Efficiency Evaluation Follow Up: Utah Department of Alcoholic Beverage Services Inventory Management Efficiency Evaluation to the Legislative Management Committee as the lead review committee.The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |
| 4.Prioritization of Audits |
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| MOTION: President Adams made a motion to prioritize the following audit and give flexibility to the Auditor General to begin the audit as staff and resources become available:An In-depth Follow Up Performance Audit of Salt Lake City School District.The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |
| Mr. Kade Minchey, Legislative Auditor General discussed potential changes to The Approved Practices and Policies of the Legislative Audit Subcommittee. |
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| MOTION: President Adams moved to approve the policy changes to The Approved Practices and Policies of the Legislative Audit Subcommittee. The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |
| Mr. Minchey discussed a new response letter from Weber School District on their previous performance audit. |
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| President Adams responded to Mr. Minchey's comments by stating that many teachers in Weber School District are excited about the changes being made in response to the audit. |
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| Ms. Leah Blevins, Audit Manager presented on the Audit Follow Ups. |
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| MOTION:Representative Moss made a motion to adjourn.The motion
passed
with a vote of
6-0-0.
|
|
| Yeas -
6 | Nays-
0 | Abs-
0 | |
Sen. J. Adams
Sen. L. Escamilla
Rep. J. Moss
Rep. A. Romero
Rep. M. Schultz
Sen. E. Vickers
| | | |