Wyoming Legislature

Committee Meeting Summary of Proceedings

Management Audit Committee

June 20, 2005

Cabin Creek Inn

Thayne, Wyoming

Meeting Attendance

Committee Members Present

Representative Randall Luthi, Chairman

Senator Grant Larson, Vice Chairman

Senator Ken Decaria

Senator John Hanes

Senator Kit Jennings

Representative Roy Cohee

Representative Debbie Hammons

Representative Pete Illoway

Representative Marty Martin

Committee Members Absent

Senator John Schiffer

Senator Kathryn Sessions

Legislative Service Office

Barbara J. Rogers, Program Evaluation Manager, Kelley Pelissier, Senior Program Evaluator; Michael Swank, Program Evaluator; Jim Reuss, Associate Program Evaluator; Karla Smith, Associate Program Evaluator

Others Present

Please refer to Appendix 1 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.

Written Meeting Materials and Handouts

All meeting materials and handouts provided to the Committee by the Legislative Service Office (LSO), public officials, lobbyists, and the public are referenced in the Meeting Materials Index, attached to the minutes.  These materials are on file at the LSO and are part of the official record of the meeting. 

Call To Order

Chairman Luthi called the meeting to order at 9:00 a.m.  The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

Approval of Minutes

The minutes from the November 4 and 5, 2004 and March 1, 2005 meetings were approved as written.

Executive Session

Chairman Luthi resolved the Committee into Executive Session for consideration of a staff presentation on the draft report, The Wyoming Business Council.  The Committee discussed the report’s findings and recommendations with representatives of the Business Council. 

Chairman Luthi continued the executive session for consideration of the draft follow-up on the June 2003 report, Workers’ Compensation Claims Processing.  The Committee discussed the follow-up with representatives of the Department of Employment .

Open Session

Representative Luthi moved and Senator Larson seconded a motion to release the report, Wyoming Business Council, subject to receipt of a revised written response (should one be submitted within 15 days), and subject to a mail ballot and vote by Committee members, said vote to take place within the 15 days following receipt of a revised response.  The motion carried with Representative Illoway voting no.  Committee members agreed that the Chairman should send the Business Council a letter offering the option of revising its response within the 15-day timeframe; if the Council does not revise the response within 15 days, the report should be released containing the original response.

Representative Illoway moved and Senator Hanes seconded a motion to release the follow-up report on Workers’ Compensation Claims Processing.  The motion carried unanimously.

Ms. Rene LaBare from Rocky Mountain Fraud Solutions, LLC presented information concerning the occurrence of fraud in government, its estimated costs nationally, and the lack of a central entity in Wyoming state government designated to conduct audits that would detect fraud.  She stated that because most government agencies in Wyoming are small, they are at high risk for fraud, and she presented examples of recent instances of fraud uncovered in different levels and branches of Wyoming government.  She stated that following up on tips is the main way to catch fraud, but there appears to be no way for state employees to report problems anonymously so that actions are taken; she added that no one agency is responsible for implementing the so-called “whistle blower law” (W.S. 9-11-101 through 103).  She requested that the Committee consider directing staff to conduct a program evaluation of fraud and internal audit functions in state government. 

The Committee discussed potential topics to assign for study.   Following discussion of a number of ideas, members voted on options; the result of the voting is that House Bill 59 (2002 Session Laws, Chapter 81:  Substance Abuse Control Plan), and the relationship between the State Superintendent of Public Instruction and State Board of Education, in that order of priority, be the topics of the next studies. 

The Committee also requested that Scoping Papers be prepared on three potential topics:  the market pay plan for state employees; fraud and internal audit functions and whistle blower protection in state government; and drug courts (including juvenile drug courts).  The motion carried unanimously.

The Committee agreed to meet next to consider a report on Foster Care in early September.  The meeting will take place in Lander, Riverton, or Casper.

Meeting Adjournment

There being no further business, Chairman Luthi adjourned the meeting at 4:00 p.m.

Respectfully submitted,

Representative Randall Luthi, Chairman