KEEPING STATE FISCAL OFFICIALS INFORMED VOLUME 35, NUMBER 11 | NOVEMBER 2015 NASACT MAKES CHANGES TO EXECUTIVE COMMITTEE & FUTURE ANNUAL CONFERENCE LOCATIONS Richard Ellis, NASACT’s fi rst vice president, recently • David H. Lillard, Jr., state treasurer of Tennessee announced his resignation as state treasurer of Utah, and the most senior state treasurer on the eff ective November 1 (see related article, page 6). Executive Committee aft er Ellis, will move up He left elected offi ce to take a position as senior from serving as NASACT’s treasurer to become director of compliance and communications at the fi rst vice president. Utah Educational Savings Plan, Utah’s nonprofi t 529 • Lillard will host the 2017 NASACT Annual college savings plan. Conference in Nashville in August 2017 during As incoming president of NASACT, Ellis was his year as NASACT’s president. scheduled to host the 2017 NASACT Annual • Th e contract with the Grand America Hotel Conference in Salt Lake City, Utah. NASACT had in Salt Lake City will be fulfi lled by having previously signed a contract to hold the conference in the 2018 NASACT Annual Conference there. August 2017 at the Grand America Hotel. Debbie Davenport, auditor general of Arizona, On October 28 and November 5, NASACT’s will be NASACT’s president that year. Executive Committee met via conference call to fi ll • Beth Pearce, state treasurer of Vermont and the the vacancies that Ellis’s departure created among the next ranking state treasurer on the Executive committee’s offi cers and also to discuss the location Committee, will move up to become an offi cer, for the 2017 conference. Th e Executive Committee serving as NASACT’s treasurer. made the following decisions: NEW 2015-16 EXECUTIVE COMMITTEE PRESIDENT FIRST VICE PRESIDENT SECOND VICE PRESIDENT SECRETARY TREASURER IMMEDIATE PAST PRESIDENT Calvin McKelvogue David H. Lillard, Jr. Debbie Davenport D. Clark Partridge Beth Pearce William G. Holland Chief Operating Officer, IA State Treasurer, TN Auditor General, AZ State Comptroller, AZ State Treasurer, VT Auditor General, IL AUDITOR REPRESENTATIVES COMPTROLLER REPRESENTATIVES TREASURER REPRESENTATIVES Dianne E. Ray, CO John C. Reidhead, UT Manju Ganeriwala, VA Stacey E. Pickering, MS Anna Maria Kiehl, PA Mike Frerichs, IL Steven M. Eells. NJ Thomas L. White, Jr., AL (Vacancy TBD) NASACT News | November 2015 1 ASSOCIATION NOTES NASACT ANNOUNCES 2015-16 COMMITTEES Calvin McKelvogue, chief operating offi cer of available at www.nasact.org/comms_groups Iowa’s State Accounting Enterprise and president (members only content, you must be a member and of NASACT, has fi nalized the 2015-16 committees. logged in to the site to view the information). Complete committee rosters and resources are STRATEGIC COMMITTEES Budget Vice Chair: Debbie Davenport, Auditor General (AZ) Committee on Accounting, Chair: Beth Pearce, State Treasurer (VT) Reporting and Auditing (CARA) Vice Chair: D. Clark Partridge, State Time and Place Co-Chair: Randy Roberts, Senior Comptroller (AZ) Technical Director, Office of the Auditor Chair: Debbie Davenport, Auditor General (AZ) Constitution and Bylaws General (AZ) Co-Chair: Kristopher Knight, Director, Chair: John C. Reidhead, Director, Vice Chair: D. Clark Partridge, State Division of Accounting (DE) Division of Finance (UT) Comptroller (AZ) Vice Chair: Stacey Pickering, State TASK FORCES & Financial Management and Auditor (MS) Intergovernmental Affairs OTHER GROUPS Committee (FMIAC) Hall of Fame Selection FAF/GASB/GASAC Selection Chair: David A. Von Moll, State Task Force Chair: David H. Lillard, Jr., State Comptroller (VA) Treasurer (TN) Chair: Calvin McKelvogue, Chief Vice Chair: Steve McCoy, State Treasurer Operating Officer, State Accounting Vice Chair: Debbie Davenport, Auditor (GA) Enterprise (IA) General (AZ) Vice Chair: David H. Lillard, State Membership Nominating Treasurer (TN) Chair: Anna Maria Kiehl, State Chair: William G. Holland, Auditor Comptroller/Chief Accounting Officer Pension Standards General (IL) (PA) Implementation Work Group Vice Chair: Nancy K. Kopp, State Vice Chair: Beth Pearce, State Treasurer (VT) Chair: Greg S. Griffin, State Auditor Treasurer (MD) (GA) Training & Professional Personnel Vice-Chair: Cindy Jorgenson, Deputy Development Financial Compliance Audit (MT) Chair: Calvin McKelvogue, Chief Co-chairs: Calvin McKelvogue, Chief Operating Officer, State Accounting Operating Officer, State Accounting Center for Governmental Enterprise (IA) Enterprise (IA) and Paul Joyce, State Financial Management Vice Chair: David H. Lillard, Jr., State Examiner (IN) President: David H. Lillard, Jr., State Treasurer (TN) Vice Chair: David H. Lillard, Jr., State Treasurer (TN) Treasurer (TN) Resolutions Vice-President: Calvin McKelvogue, Chief Operating Officer, State ADMINISTRATIVE Chair: Manju Ganeriwala, State Accounting Enterprise (IA) Treasurer (VA) COMMITTEES Secretary: William G. Holland, Auditor Vice Chair: Thomas L. White, State General (IL) Audit Comptroller (AL) Chair: Tori M. Hunthausen, Legislative Treasurer: Debbie Davenport, Auditor General (AZ) Auditor (MT) Strategic Planning Vice Chairs: John Geragosian and Robert Chair: David H. Lillard, Jr., State Ward, Auditors of Public Accounts (CT) Treasurer (TN) NASACT News | November 2015 2 NEWS FROM WASHINGTON VOTERS SELECT AUDITORS/TREASURERS IN THREE STATES While 2015 is an “off ” election year, three states had Louisiana: Incumbent State Treasurer John Kennedy state auditor and state treasurer seats up for grabs this was unopposed in the general election. month: Mississippi: Incumbent State Auditor Stacey Kentucky: Th e Bluegrass State will have two new Pickering retained his seat, defeating Joce Pritchett, NASACT members. Incumbent State Auditor Adam a civil engineer. Incumbent State Treasurer Lynn Edelen was defeated by State Representative Mike Fitch also retained her seat, defeating Reform Party Harmon. Th e state treasurer seat was being vacated candidate Viola McFarland. by term-limited Todd Hollenbach, and the new state treasurer will be attorney Allison Ball. FIND COMPLETE MEMBER INFORMATION IN THE ONLINE DIRECTORY NASACT has a comprehensive member directory available online at www.nasact.org/af_memberdirectory.asp. To request a hard copy of NASACT’s printed directory, email Glenda Johnson at [email protected]. Changes to your contact information may be emailed to Pat Hackney at [email protected]. GAO INVESTIGATES STATE’S SUPPLEMENTAL PAYMENTS Th e U.S. Government Accountability Offi ce recently “By increasing providers’ Medicaid payments, released a new report examining potential incentives and requiring providers receiving the payments for states to make excessive supplemental payments to supply all or most of the nonfederal share, we to certain Medicaid providers who fi nance the found that states claimed an increase in federal nonfederal share of the payment. matching funds without a commensurate increase For over a decade, GAO has released reports fi nding in state general funds. For example, we found that that complete and reliable data are lacking on the tens in one state a $220 million payment increase for of billions in Medicaid supplemental payments states nursing facilities in 2012 (which was funded by a oft en make, hindering transparency and oversight. tax on nursing facilities) resulted in an estimated Th is new report, entitled “Medicaid: Improving $110 million increase in federal matching funds; Transparency and Accountability of Supplemental no increase in state general funds; and a net Payments and State Financing Methods,” looks at payment increase to the facilities, aft er paying the improving transparency and oversight from GAO’s taxes, of $105 million.” work related to certain supplemental payments states GAO concluded the report by noting that the make to providers, and states’ fi nancing of the non- fl exibility states have in how they pay providers federal share of Medicaid. and fi nance the nonfederal share has enabled states Within certain limits, states can make supplemental to make excessive payments to certain providers payments to providers in addition to their regular and allowed states to shift costs to the federal claims-based payments and receive federal government. GAO also found that Congress and matching funds. To fi nance the nonfederal share the Centers for Medicare & Medicaid Services need of Medicaid payments, states can use funds from better information and more tools to understand local governments and providers, within federal who receives non-disproportionate share hospital parameters. One of the key fi ndings of the report (non-DSH) supplemental payments and in what is that states are increasingly relying on providers amounts, and to determine the extent to which they and local governments to fi nance Medicaid and that are ultimately used for Medicaid purposes. the data needed for program oversight is lacking. Th e full GAO report can be found at www.gao.gov/ Specifi cally, the report notes: assets/680/673493.pdf. NASACT News | November 2015 3 NEWS FROM WASHINGTON HOUSE COMMITTEE ADVANCES LEGISLATION TO TREAT INVESTMENT GRADE MUNICIPAL SECURITIES AS HIGH-QUALITY LIQUID ASSETS Th e House Financial Services Committee recently of municipal securities for banks to underwrite passed legislation (H.R. 2209) that would require them, which in turn could increase borrowing costs regulators to classify all investment grade municipal for state and local governments to fi nance needed securities as high-quality liquid assets, or HQLA. infrastructure