P - Present
E - Excused
A - Absent
Roll Call
Burg
P Clark
P Dennert
P Derby, Vice-Chair
P Greenfield
P Kleven
P Madden
P Pummel
P Drake, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Chair Drake
Dale Bertsch, Legislative Research Council, distributed budget summary information (Document
#1).
Department of Legislative Audit
Marty Guindon, Auditor General, Department of Legislative Audit presented the committee with two
handouts (Document #2 and Document #3). He began by saying the Department of Legislative
Audit is requesting an overall budget increase of $118,699. Starting his discussion with Document
#3, he reviewed the Department's organizational chart. He said the Department has 36 authorized
FTE's, with 4 vacancies. They are attempting to fill three of the vacancies. A .5 FTE is for a
summer intern, and a .5 FTE is unfunded. In response to Representative Burg's question, he said
the Department does hire South Dakota graduates and is satisfied with their qualifications. In
response to Senator Greenfield, he advised that two positions have been vacant for over a year.
Mr. Guindon reviewed a pie chart (Document #2), basically describing how Department staff spends
their time. In response to a question from Senator Drake, he said that it has been hard to attract staff,
and that being in Pierre could be a reason. An Auditor I would be paid $27,000, while and Senior
Auditor could earn in the high $50,000s.
Mr. Guindon told Senator Greenfield that he will provide him information on the Department's
average and median wages and classifications. Senator Greenfield asked if a $268,568 reversion was
historical. Mr. Guindon said it was when the Department wasn't fully staffed, with approximately
$202,000 being for personal services and $65,000 being for operating expenses. He advised
Representative Clark that top salaried employees do receive raises and longevity. Mr. Guindon then
reviewed the Zero-based Breakdown of Amount Requested for Salaries (Document #2).
Mr. Guindon advised Senator Drake that since the Department hasn't been able to recruit auditors,
and that since the statewide audit needs to be done in a nine-month period, sometimes smaller
agencies are deferred.
Mr. Guindon then reviewed the Department's Summary of FY2003 Budget Request (Document #3).
He responded to questions from Senator Kleven, Senator Greenfield, and Senator Madden. He
explained how the current salaries and benefits were projected into 2003. Senator Greenfield had
questions concerning fund reversions. Mr. Guindon said that some funds need to be available to get
people on board, funds must be available for capital asset items, and travel funds must be
maintained. Also, flexibility needs to be maintained for other variables such as schedule changes,
fraud audits, and uncertainty as to the location of the audits .
Mr. Guindon advised that he would provide a salary breakdown to Mr. Bertsch for the committee.
Senator Drake recessed the committee and it was reconvened at 9:30.
Governor's Office, Lieutenant Governor, Tribal Relations
Pam Roberts, Chief of Operations, Governors Office presented the budget request for the Governor's
Office, Lieutenant Governor, and Tribal Relations.
Ms. Roberts began with the Executive Operations budget. She said the Office had originally
proposed 27.5 FTE's for FY 2003, but was now asking that 5 FTE's be removed from the budget
request. These FTE's were in the Bright Start program, but haven't been needed as other state
agencies have been used to provide the program.
In response to a question from Representative Clark, Deb Bowman, Governor's Office gave a short
summary of the statewide diabetes screening program. She said it has become a model nationally.
Ms. Bowman indicated approximately 9,000 bright start boxes had been distributed, costing
approximately $23.23 per box. Ms. Roberts said the Office would provide Representative Clark
with the entire costs of the Bright Start Program.
Senator Pummel was advised that longevity and retirement increases were based on 22.5 FTE's.
Ms. Roberts explained the Governor's Contingency Fund, the various events and projects that it
could be used for, and said that part of the fund had been used for the Spruce up South Dakota
program.
Ms. Roberts explained that there is a $127 increase in the Lieutenant Governor's budget for
retirement costs.
Ms. Roberts introduced Webster Two Hawk, Governor's Office, Tribal Government Relations. He
gave a brief overview of the program, his activities, the four state FAS Consortium Council and a
future project with the Rosebud agency. He answered questions from Senator Kleven concerning
a reconciliation center, that it is in the planning stages and will be located near Ft. Pierre.
State Auditor
Vern Larson, State Auditor, presented the State Auditor budget. He said when he started in 1979
there were 19.1 FTE's in the State Auditor's Office, today there are 16.8. He reviewed the mission
statement. Under performance indicators, he indicated that the number of vouchers audited had
increased due to single invoicing within accounting, that warrants written have decreased due to
combining services, and that ACH vendor payments have increased due to increased vendor use.
Mr. Larson said the only increase in his budget was for $6,755 due to retirement and longevity
increases.
He advised that retirements or resignations created financial burdens for small constitutional offices.
Mr. Larson advised that a .5 FTE is kept flexible.
In response to a question from Representative Pummel, he explained the local bank accounts - that
that they are mainly for deposits, and save the state check writing costs. Mr. Larson briefly
explained the credit card accounts for Senator Drake and that the accounts are mainly Citibank,
although credit cards are also used for travel.
There was a discussion on the accumulation of sick leave and annual leave. Gary Drewes, State
Auditor's Office, explained leave policy rules.
In response to a question from Senator Dennert, Mr. Larson advised that the Office had requested
an increase in retirement, but that it was not included in the budget request.
MOTION:
ADJOURN
Moved by: Madden
Second by: Kleven
Action: Prevailed by voice vote.
Rena Ortbahn
____________________________
Committee SecretaryBob Drake, Chair
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