Committee Summary for Fiscal Committee (04/18/2025)

Bill/Time	Type	Title	Sponsor
Unclear 00:05:02.080 - 10:03:58 AM	Executive Session	Unclear

Unclear: Senator Gray Information Only00:05:02.080 - 10:03:58 AM; Senator Gray called the fiscal committee meeting to order and addressed the acceptance of the minutes from the previous meeting. They also discussed the consent calendar, noting items to be withdrawn and motions to adopt the remaining items. Senator Gray also moved to table item FIS 25103 due to the lack of action from the executive council on a previously approved $5 million.
Unclear: Senator Carson Information Only00:08:02.240 - 10:06:58 AM; Senator Carson seconded the motion to table item FIS 25103. They also discussed the need for further review and discussion on a letter from Senator Carson regarding the YDC settlement fund.
Unclear: John Skipa, Director of New Hampshire Police Standards and Training Information Only00:09:49.760 - 10:08:45 AM; John Skipa discussed the budget deficit and the need for equipment purchases. He highlighted that the proposed equipment would help reduce reliance on other police departments for training and would last for 10 years. He also noted that the department anticipates a $500,000 lapse in the current budget.
Unclear: Max Schultz, Business Manager, New Hampshire Police Standards and Training Information Only00:09:49.760 - 10:08:45 AM; Max Schultz supported the comments made by John Skipa regarding the equipment purchase and the department's budget situation.
Unclear: Senator Rosenwald Information Only00:16:11.199 - 10:15:07 AM; Senator Rosenwald questioned the implications of approving a transfer and whether it would affect the department's lapse. They also discussed the need for departments to be mindful of the state's budget deficit.
Unclear: Senator Waters Information Only00:18:46.799 - 10:17:42 AM; Senator Waters asked about potential cost increases if the equipment purchase is delayed and the impact on training. They also inquired about the department's lapse and the need to manage the state's budget deficit.
Unclear: Representative Edwards Information Only00:33:03.679 - 10:31:59 AM; Representative Edwards discussed the need for more detailed reporting on the YDC settlement fund, particularly regarding contingency fees and the terms of payments to attorneys.
Unclear: Josh Elliot, Director of the Division of Policy and Programs, Department of Energy Information Only00:23:30.880 - 10:22:26 AM; Josh Elliot explained the reimbursement process for federal funds and the steps involved in securing funding for energy programs. He also discussed the challenges in expediting expenditures and the potential for losing funding if not used promptly.
Unclear: Representative Leechman Information Only00:29:31.679 - 10:28:27 AM; Representative Leechman supported the need for an audit of the YDC settlement fund and raised concerns about administrative costs and the payment structure for victims. They also discussed the need for more transparency in how the fund operates.
Unclear: Senator Rosen Information Only00:35:20.920 - 10:34:16 AM; Senator Rosen inquired about the role of the executive council in the approval process for the YDC settlement fund and the status of previous funds allocated to the fund.
Unclear: Mike Kane, Office of Legislative Budget Assistance Information Only00:39:28.320 - 10:38:24 AM; Mike Kane explained the authority of the fiscal committee to direct audits and outlined the process and timeline for the upcoming audit of the YDC settlement fund as requested by Senator Carson. He also noted the modifications to the audit scope based on the committee's discussion.
Unclear: Nathan White, Chief Financial Officer of the Department of Health and Human Services Information Only00:42:17.440 - 10:41:13 AM; Nathan White addressed questions regarding the delay in data reporting for the Department of Health and Human Services. He explained that the data was about two months old due to the timing of deadlines and the need for validation and review. He also mentioned ongoing efforts to transition the dashboard to an online digital format to improve accessibility and timeliness of information.
Unclear: Chris Santelo, Associate Commissioner Information Only00:45:45.520 - 10:44:41 AM; Chris Santelo responded to inquiries about the census at Glen Cliff. He noted that the census was capped at 75 due to a mental health agreement, and staffing challenges have affected operations. He promised to provide a detailed written assessment regarding the mental health agreement's impact on the census.
Unclear: Representative Edwards Information Only00:46:46.400 - 10:45:42 AM; Representative Edwards questioned the waitlist for developmental disabilities services. He was informed that a report on this matter would be presented at the next HHS oversight meeting and that future dashboards might include this information to avoid duplication of reports across committees.
Unclear: Christine Young, Director of Audits for the LBA Information Only00:49:35.040 - 10:48:31 AM; Christine Young introduced the annual audit of the state's financial statements conducted by KPMG. She highlighted the presence of KPMG representatives and state officials for the presentation.
Unclear: Ally Hines, Senior Manager at KPMG Information Only00:50:45.599 - 10:49:41 AM; Ally Hines presented the 2024 basic financial statement audit, emphasizing the state's financial reporting integrity and the issuance of an unmodified opinion, which indicates that the financial statements were free from material misstatement. She also mentioned identified misstatements and a significant deficiency related to capital asset reporting.
Unclear: Representative Edwards Information Only00:54:03.040 - 10:52:59 AM; Representative Edwards inquired about the organizational placement of the Governor's Commission on Alcohol and Other Drug Misuse and the opioid abatement fund within the state's audit structure. He was informed that both are part of the Department of Health and Human Services and are included in general audits.
Unclear: Dana Call, State Comptroller Information Only00:55:13.680 - 10:54:09 AM; Dana Call expressed satisfaction with the audit product and mentioned the upcoming closure of fiscal year 2025. He offered to answer any accounting-related questions from the committee.
Unclear: Jane Ledz, Audit Partner at KPMG Information Only00:56:26.640 - 10:55:22 AM; Jane Ledz presented the state's single audit report for federal assistance programs. She noted that the audit was filed on time and included findings across 25 major programs. She highlighted a program with an adverse opinion due to pervasive non-compliance and discussed the corrective action plans required for each finding.
Unclear: Representative Edwards Information Only01:01:31.359 - 11:00:27 AM; Representative Edwards asked about the audit's assessment of Medicaid eligibility, specifically whether it ensures that only authorized New Hampshire residents are enrolled. He was informed that a sample of 40 individuals was tested and found to be 100% compliant.
Unclear: Senator Waters Information Only01:02:38.720 - 11:01:34 AM; Senator Waters inquired about the procedures for following up on audit deficiencies between audits. He was told that there is a process for corrective action plans and regular compliance checks, with agencies required to report their progress quarterly.
Unclear: Representative Leman Information Only01:08:57.040 - 11:07:53 AM; Representative Leman asked why KPMG does not audit the liquor or lottery fund. He was informed that the LBA conducts these audits directly or through contracted firms, and the decision to use KPMG or LBA staff is based on internal processes.
Unclear: Dr. Stephanie Simick, Executive Director for New Hampshire Fish and Game Information Only01:10:46.080 - 11:09:42 AM; Dr. Stephanie Simick addressed the adverse opinion on the Fish and Wildlife cluster. She emphasized that it was not a misuse of funds but rather an issue with tracking and accounting. She outlined steps to align with the New Hampshire First system and mentioned potential technology upgrades.
Unclear: Kathy Leonte, Chief of the Business Division at New Hampshire Fish and Game Information Only01:12:53.679 - 11:11:49 AM; Kathy Leonte discussed the transition away from a subsystem to using New Hampshire First directly. She noted that this transition would not be complete until fiscal year 2026, and similar findings might be seen in the fiscal year 2025 audit.
Unclear: Senator Waters Information Only01:14:57.719 - 11:13:53 AM; Senator Waters sought further details on technology upgrades at Fish and Game. Dr. Simick mentioned an IT funding request that could help improve efficiency and effectiveness, addressing some of the issues that led to the current audit findings.
Unclear: Jim Laar Rivier, Audit Manager at LBA Information Only01:16:19.800 - 11:15:15 AM; Jim Laar Rivier was introduced to present the audit of the liquor commission financial statements. He was joined by the chairman and chief financial officer of the commission.
Unclear: Jim Laar Rivier, Audit Manager at LBA Information Only01:17:16.400 - 11:16:12 AM; Jim Laar Rivier presented the results of the audit of the financial statements in the liquor commission's annual comprehensive financial report for the fiscal year ended June 30th, 2024. He confirmed an unmodified or clean opinion on the financial statements, indicating that no significant issues were found. He noted that the liquor commission corrected the most significant misstatements, and the effect of uncorrected misstatements was deemed immaterial. He discussed the increased financial risks due to the replacement of the legacy computer system with a new system on March 29th, 2024, which caused difficulties in obtaining timely financial reports. The liquor commission had contracted an independent certified public accounting firm for audit support. A report on internal control over financial reporting will be presented in a future meeting.
Unclear: Joseph Mollik, Chairman of the Liquor Commission Information Only01:21:48.400 - 11:20:44 AM; Joseph Mollik thanked the LBA for their audit work and discussed the challenges and successes of transitioning to a new D365 system. He mentioned that the transition occurred with three months on the new system and nine months on the old, and emphasized that the change was seamless for consumers. He noted a nationwide decline in alcohol sales, attributing it to factors like cannabis sales, health concerns among youth, and aging baby boomers. He also addressed a bill to eliminate the enforcement division, expressing opposition as it could lead to regulatory issues.
Unclear: Committee Member Information Only01:22:54.159 - 11:21:50 AM; A committee member asked about legislation affecting the liquor commission, specifically mentioning a bill to eliminate the enforcement division, which had been discussed previously. It was clarified that this bill had not yet passed and was prospective. The member expressed concerns about the enforcement division's focus, suggesting it was shifting away from its primary task of inspections toward other activities like sobriety checks.
Unclear: Committee Member Information Only01:27:15.440 - 11:26:11 AM; Another committee member inquired about the implementation of passed legislation and whether the liquor commission had any feedback or struggles. Joseph Mollik responded positively, noting support for the passed legislation and mentioning the impact of cannabis sales on alcohol sales. He presented a heat map showing a decline in spirits and wine sales across the U.S., particularly in the Pacific Rim and the Northeast.
Unclear: Senator Information Only01:30:46.560 - 11:29:42 AM; A senator asked if the liquor commission's stores sold non-alcoholic wines and spirits. Joseph Mollik confirmed they do and mentioned that the commission is expanding these selections due to growing demand for low and no alcohol products.
Unclear: Kimberly Visson, Senior Manager at LBA Information Only01:33:06.880 - 11:32:02 AM; Kimberly Visson presented the management letter resulting from the audit of the lottery's fiscal year 2024 financial statements. The report included four internal control comments and two compliance comments, with the lottery concurring or concurring in part with all six. Recommendations included mitigating reliance on a single key employee, proper accounting treatment for mega money jackpot games, addressing segregation of duties conflicts, strengthening prize claim reconciliation controls, evaluating the council for responsible gambling's administrative attachment, and strengthening vendor monitoring processes.
Unclear: Charlie McIntyre, Executive Director of the Lottery Information Only01:37:18.480 - 11:36:14 AM; Charlie McIntyre thanked the LBA for their audit efforts and discussed the lottery's transition from a traditional to a digital operation, noting significant revenue growth. He addressed the internal control and compliance comments, indicating that the lottery was working on resolutions, including potential legislative fixes. He mentioned ongoing efforts to draft new regulations and rules to address lingering issues from previous audits.
Unclear: Committee Member Information Only01:39:19.280 - 11:38:15 AM; A committee member asked about the status of unresolved findings from previous audits. Charlie McIntyre explained that new regulations and rules were being drafted to address these issues, with plans to present them to JLCAR. The committee congratulated the lottery on another successful year and discussed scheduling the next meeting.
Unclear: Committee Member Information Only01:41:22.159 - 11:40:18 AM; The committee discussed the scheduling of future meetings, considering the impact of the law enforcement officers memorial association event on the same day. They settled on May 16th at 11:00 AM for the next meeting, with a pre-fiscal meeting at 10:00 AM for house members.