The Office of the State Auditor updated the Joint Business Committee on audits conducted under the SMART Act, telling members on Jan. 22 that the Office of Administrative Courts (OAC) and the Civil Rights Division and Commission have improved operations since prior reviews but still have specific weaknesses that require agency follow‑up.

Michelle Collin, Deputy State Auditor, introduced the audit updates and said the office had issued an annual report of open recommendations from fiscal years 2019–2023. Jenny Page and Kate Shearoff summarized each audit’s findings.

Office of Administrative Courts: The LAC’s December audit of the OAC (within the Department of Personnel and Administration) found improvements since 2012, including a new case management system and better communication with parties. The auditors found OAC timely on workers’ compensation hearings (about 96% met the 120‑day statutory timeline) but less timely on Medicaid hearings (about 76% met the 60‑day statutory timeline). The report recommended improved case data tracking, reassessment of Medicaid timeliness goals given case complexity, clearer online guidance and a formal, consistent conflict‑of‑interest disclosure process for administrative law judges; OAC told auditors it plans to implement the recommendations in 2025 and will report to the Legislative Audit Committee in the summer.

Civil Rights Division and Commission: The performance audit released in October 2024 found the division and commission implemented many recommendations from a 2019 review, improved investigation timeliness and now vote publicly in compliance with the Open Meetings Act. Remaining issues included uncertainty about which duties properly rest with the commission versus the division, and statutory membership requirements that auditors said have reduced geographic diversity and increased vacancy durations since the 2018 rules. Auditors recommended DORA and the commission jointly review statutory powers and consider legislative changes to membership requirements; the department agreed to review the recommendation and report to the Legislative Audit Committee in the fall.

Unimplemented audit recommendations: The auditor’s annual report lists outstanding recommendations across state agencies (110 open recommendations across the five‑year window, about 8% of recommendations not yet fully implemented as of June 2024). The auditors flagged high‑priority recommendations at the Departments of Personnel and Administration (DPA) and Regulatory Agencies (DORA) including two prescription drug monitoring program changes at DORA to ensure prescribers register with the PDMP and prevent license renewal for non‑registration (DORA expects to implement by July 2025). DPA still had two material weakness recommendations related to statewide financial reporting: reconciling standalone entity statements to statewide financials and strengthening internal controls around the Gravity reporting system; DPA reported implementation planned by end of 2024 but auditors continued to list these as open material weaknesses.

Committee members were told that the Auditor’s office provides each agency the annual list of open recommendations in advance, that agencies were prepared to answer follow‑up questions, and that the Legislative Audit Committee will receive implementation updates later in 2025.