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State auditor outlines office functions, requests no budget increase for FY2026
Summary
State Auditor Rich Sadgast briefed the committee on the auditor's pre-audit role, payroll and accounting functions, staffing risks and a flat FY2026 request of $1,789,768; he described workflow, retirement exposure and expected benefits from the Bison accounting project.
State Auditor Rich Sadgast told the Appropriations Committee that the auditor's office performs a 100% pre-audit of expenditures, administers payroll-related services and Social Security records for state entities, and reconciles warrants and electronic transactions with the state treasurer and Bureau of Finance and Management.
Sadgast said the office has 16 full-time equivalents and requested no change to its FY2026 appropriation; the governor's recommendation matches the office's request at $1,789,768. He described workforce pressures: six of 16 employees are eligible for retirement in coming years and the office is compiling recruiting lists to mitigate turnover risk.
On operations he said the office reviews three primary transaction types: individual vouchers (travel and reimbursements), multiple-payee vouchers (large grant disbursements) and consultant/contract payments. He emphasized the office does not perform agency post-audits (that is the role of the Department of Legislative Audit) and that his staff ensures correctness, completeness and authorized signatures before payment.
Sadgast said ongoing modernization efforts (project Bison) may reduce some repetitive checks by automating calculations (for example mileage and pre-filled fields), but added the system could shift workload and require continued oversight; the office participates in Bison planning. "We try not to fall more than five days behind when we're processing vouchers," he said, citing vendor payment timing concerns.
Ending
The auditor closed by thanking the committee and noting the office's budget request is level-funded; committee members offered thanks for his service and the hearing moved on to other agencies.
