MINUTES
Legislative Post Audit Committee

March 8, 2006

The meeting was called to order by Chairman Donovan at 12:15 p.m. in Room 423-S of the Statehouse. Committee members present:

Senator Les Donovan, Chair	Representative John Edmonds, Vice-Chair
Senator Anthony Hensley	Representative Tom Burroughs
Senator Nick Jordan	Representative Peggy Mast
Senator Derek Schmidt	Representative Bill McCreary
Senator Chris Steineger	Representative Tom Sawyer

Approval of Minutes

Senator Steineger moved to approve the minutes of the January 30 and February 20, 2006 meetings. Representative Edmonds seconded the motion; motion carried.

Completed Performance Audits

Homeland Security: Reviewing Contracts To Provide Equipment Under the Homeland Security Grant Program (limited-scope audit). This audit was presented by Laurel Murdie, Principal Auditor. When federal homeland security grant moneys became available in July 2002, the Highway Patrol, as grant administrator, required counties to buy grant-funded equipment through an existing, competitively bid State contract with Fisher Scientific. That April 2001 contract was for laboratory supplies and equipment, but Patrol officials concluded the contract was broad enough to supply the types of equipment authorized to be bought with homeland security grants.

From 2002 to 2004, the scope and nature of purchases under the contract changed significantly. Purchases grew from about $4 million to more $20 million a year, and the equipment being purchased included communications systems and response trucks and trailers. Because of these changes, and complaints from Kansas vendors, the State renegotiated the contract in 2004 to obtain volume discounts. The contract was then renewed in 2005 using the first of two one-year extensions.

A third-party vendor system instituted after the 2004 renegotiations allows counties to select the vendor they want to buy equipment from. However, those purchases still must flow through Fisher’s web-based purchasing system, and Fisher adds a 5%-12% fee depending on the price of the item. Those fees may have amounted to nearly $1 million in calendar year 2005.

Ms. Murdie answered members’ questions. Colonel William Seck, Superintendent, Kansas Highway Patrol, and Chris Howe, Director, Division of Purchases, also answered members’ questions. Captain Mark Bruce, Commander, Homeland Security Operations, and Gavin Young, Director of Public Affairs, Department of Administration, also were available for questions.

Senator Steineger moved the report be accepted. Representative Mast seconded the motion; motion passed. The report will be distributed to the Joint Committee on Kansas Security.

Acceptance of previously released performance audits. Two reports were presented at the February 20th meeting, but weren’t accepted because a quorum wasn’t present. The reports were VIPS and CAMA: Reviewing the Availability and Use of Funding Earmarked To Improve These Computer Systems, and The Wireless Enhanced 911 Act: Reviewing the Use of Revenues Generated To Fund State Grants, both limited-scope audits. Senator Steineger moved that the reports be accepted. Representative Mast seconded the motion; motion passed.

Legislative Post Audit Operations

Notification of topics approved by the 2010 Commission. Committee Rule 1-6 requires staff to report to the Committee on the topics the 2010 Commission approves for the school audit team. Barb Hinton, Legislative Post Auditor, told members the Commission approved two audit topics at its January 27th meeting, and finalized those topics after February 24th. The topics they approved were:

• National and regional trends in teacher salaries and working conditions
• Best practices for developing teachers and school administrators in Kansas

Out-of-State travel requests. Ms. Hinton asked the Committee to approve out-of-State travel for the 2nd half of the fiscal year:

• National State Auditors Association Annual Meeting, June 7-10, Salt Lake City, UT (Barb Hinton).

• The Committee had pre-approved travel for Joe Lawhon, Principal Auditor, to attend the National Legislative Program Evaluation Society Executive Committee meeting, April 21-22, Denver, Colorado.

Representative Edmonds moved to approve the travel request. Senator Steineger seconded the motion; motion carried.

Approval of outside employment. The Texas State Auditor’s Office asked Ms. Hinton to provide additional training on performance auditing in July.

Representative Edmonds moved to approve the outside employment. Senator Steineger seconded the motion; motion carried.

Old/New Business

None.

Date of Next Meeting

Staff were directed to canvass members for an available meeting date sometime in mid-late April.

The meeting adjourned at 12:55 p.m.

(All handouts and other documents referred to in these minutes are on file with Legislative Post Audit.)

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(All handouts and other documents referred to in these minutes are on file with Legislative Post Audit.)