44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE TO INCLUDE THE FOLLOWING PROJECTS IN ITS PERFORMANCE AUDIT PROGRAM FOR THE 1999 INTERIM.

WHEREAS, the legislative finance committee has a performance audit program for which the committee establishes the work plan each interim; and

WHEREAS, the staff makes suggestions of projects to be audited for the committee's review, selection and prioritization; and

WHEREAS, when making its selection, the committee should consider the current staffing levels of the audit staff;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the committee consider the following staff suggestions for projects for priority listing:

1. human services department, review of child support enforcement division establishment, collections and distribution, which is a continuation of the 1998 work plan, to maximize child support collections to reduce dependency on public assistance resulting in less general fund need; and reduce dependence on general fund need for child support enforcement division operating expenditures;

2. state highway and transportation department, which is a continuation of the 1998 work plan, to review the state transportation improvement plan, cost estimation and project prioritization;

3. state personnel office, to determine whether the state personnel office is effective in helping state agencies recruit qualified staff on a timely basis and if regulations and procedures hinder timely hiring and retaining of experienced staff;

4. human services department medicaid review of managed care to determine the effect of managed care on services provided;

5. information services division of the general services department, to perform an operation audit to determine the effect of all factors contributing to rates and, if necessary, technical support to its customers at a reasonable rate and on a timely basis;

6. department of health review of public health offices to determine need based on implementation of managed care;

7. review of oversight functions of the state department of public education and the department of finance and administration to determine effectiveness of the financial and program oversight to the local public school districts, local government and state agencies;

8. review of oversight functions of the commission on higher education to determine the effectiveness of the commission in administering financial aid, scholarship, extended and distance education and other functions of the institutions of higher education;

9. review of the use of DWI grants to determine the impact on and effectiveness of funding;

10. review of use of education funding, including direct versus indirect funding, to determine if maximum funding is going to provide direct educational services;

11. review of privatization contracts to determine savings due to reduction in personnel by outsourcing; and

12. computer system projects, including:

(a) post-implementation review of the taxation and revenue information management system to determine if modules were developed based on accepted development methodologies; if funds were expended in compliance with applicable laws and rules; and if the system is operating as designed to meet business rules and if revenues are captured and distributed accurately;

(b) post-implementation review of the statewide court automation project to determine if modules were developed based on accepted development methodologies; if the system is tracking court cases efficiently and sufficient training was provided to users to obtain wide acceptance within the judicial system; and if financial information is accurately captured and revenue is promptly reconciled and distributed;

(c) review of the status of the medicaid management information system to determine if it meets year 2000 requirements and whether it supports the managed care and fee-for-service medicaid program; and

(d) post-implementation review of the agency information management system to determine if modules were developed based on accepted development methodologies; if funds were expended in compliance with applicable laws and rules; and if the system is operating as designed to meet business rules and financial information is captured and report accurately; and

BE IT FURTHER RESOLVED that the following staff suggestions for nonpriority projects be considered:

1. review of the tourism department to determine the effectiveness of the tourism program on the state's economy;

2. review of the economic development department to determine the effectiveness of economic development programs and organizational structure on the state's economy;

3. review of the administration of the New Mexico Works Act to determine the effectiveness of the program and training and education contracts;

4. review of the public employees retirement association pension plan to determine the effectiveness of the administration of the pension plan, including contribution, benefit and investment functions;

5. review of the deferred compensation program to determine the effectiveness of the administration of the plan and its compliance with internal revenue service regulations and contractual requirements;

6. review of the retiree health care authority's health care benefit and cost assumptions, including the reliability of the data given to the actuarial firm to determine the solvency of the fund;

7. review of capital projects management by the local government division, department of environment, state agency on aging, New Mexico finance authority and other entities to determine accountability for capital projects funded through these entities;

8. department of environment to determine impact of earmarked special revenue funds on the department operation, source of special revenue funds, how funds are disbursed and what portion of these special revenue funds are used for the administrative function of the department; and

9. energy, minerals and natural resources department operational audit to determine if the department is carrying out laws applicable to protection, conservation and management of natural resources efficiently and effectively; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the chairman of the legislative finance committee.