State of Joint Legislative Audit and Review Committee (JLARC)

LEGISLATIVE AUDITOR SENATORS REPRESENTATIVES Keenan Konopaski Jake Fey 1300 Quince St SE John Braun, Chair PO Box 40910 David Frockt Olympia, WA 98504-0910 Drew MacEwen , Assistant Secretary , Secretary Phone: 360-786-5171 Rebecca Saldaña FAX: 360-786-5180 Derek Stanford, Vice Chair E-mail: [email protected] TDD: 1-800-635-9993 Web site: www.jlarc.leg.wa.gov

May 17, 2017 JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE REGULAR COMMITTEE MEETING MINUTES COMMITTEE BUSINESS • Derek Stanford, JLARC Vice Chair, called the meeting to order at 10:05 a.m. • Three new JLARC members introduced themselves: Senator Lynda Wilson from the 17th legislative district, Senator Rebecca Saldaña from the 37th legislative district, and representative Vicki Kraft from the 17th legislative district. (See TVW recording at 0:01) • Vice Chair Stanford called for a motion to approve the January 4, 2017 meeting minutes. A motion was made. The motion was seconded and carried unanimously. (See TVW recording at 1:05). • Legislative Auditor, Keenan Konopaski, gave a refresher of the steps of JLARC’s process. REPORTS, PRESENTATIONS, DISCUSSIONS Puget Sound Partnership 2016 – Proposed Final Report Legislative Auditor’s Conclusion: The Partnership has improved the information it shares with the Legislature and public about the health of Puget Sound. However, short planning timeframes, an unclear monitoring approach, and an incomplete inventory of actions and funding hinder recovery efforts. Melanie Stidham and Amanda Eadrick of the JLARC staff presented the preliminary report. This is the second of two audits directed by the statute that created the Puget Sound Partnership. JLARC staff found that since the 2011 audit, the Partnership has improved the information it shares with the Legislature and public about the health of Puget Sound. However, the recovery effort is hindered by three structural issues: 1) The statutory timeframes for recovery and planning are short compared to other recovery efforts; 2) the Partnership has an incomplete inventory of actions and funding, limiting its ability to evaluate and prioritize; and 3) the monitoring approach does not clearly link monitoring data to recovery actions and does not fully meet certain essential requirements. The Legislative Auditor recommends that the Partnership submit plans to the Legislature that address these structural issues. (See TVW recording at 04:25). Vice Chair Stanford invited Sheida Sahandy from the Puget Sound Partnership and Jim Cahill from the Office of Financial ManagementDraft to respond to the report. (See TVW recording at 35:14). Joint Legislative Audit and Review Committee May 17, 2017 Page 2

Vice Chair Stanford called for a motion to approve for distribution the Puget Sound Partnership 2016 report. A motion was made. The motion was seconded and carried unanimously. (See TVW recording at 49:00). Child and Family Reinvestment Account Sunset Review – Proposed Study Questions Melanie Stidham of the JLARC staff presented the proposed study questions. The 2012 Legislature passed SHB 2263, creating the Child and Family Reinvestment Account (account). The account was designed to maintain state funding for the foster care system even when caseloads decline. The account is scheduled to sunset on June 30, 2018 unless the Legislature reauthorizes it. As directed in the Sunset Act (Chapter 43.131 RCW), JLARC staff will review the extent to which the administration of the account has complied with legislative intent and met its performance targets. (See TVW recording at 49:25). DES/OFM Approach to Assessing Contracting Options – Proposed Study Questions Amanda Eadrick of the JLARC staff presented the proposed study questions. In 2011, the Legislature created the Department of Enterprise Services (DES) to provide cost-efficient, effective, and centralized services (ESSB 5931). DES provides purchasing, facility management, printing, mailing, training, parking, and other services to state agencies. The law requires the Office of Financial Management and DES to conduct a contracting assessment process at the start of each biennium until June 30, 2018. The process specifies that the agencies identify services for outsourcing, collect and evaluate costs, procure services, implement and monitor contracts as appropriate, and report to the Legislature. JLARC was directed to audit the implementation of the contracting assessment process. (See TVW recording at 55:48). ATTENDANCE JLARC Members Present: Senators David Frockt, Bob Hasegawa, Mark Mullet, Rebecca Saldaña, Lynda Wilson; Representatives Jake Fey, Larry Haler, Christine Kilduff, Vicki Kraft, Ed Orcutt, Gerry Pollet, Derek Stanford and Drew Stokesbary. JLARC Staff Present: Keenan Konopaski, Legislative Auditor; Rebecca Connolly, Amanda Eadrick, Ashley Elliott, Lindsey Haythorn, Rhianna Hruska, Zane Kelly, Casey Radostitz, Marilyn Richter, Emily Schroeder, Melanie Stidham, Eric Thomas, Katie Trettenero, Valerie Whitener, and John Woolley. ADJOURNMENT The meeting was adjourned at 11:16 a.m.

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