File name: JAC Budget Hearings FY 13-14_20111208_132252.dcr Folder: C:\Documents and Settings\HAppropriations\Desktop\Recordings 0 ~ 12/8/2011 1:29:21 PM ~ 1 ~ 12/8/2011 1:29:22 PM ~ Department Of Audit Agency 21, Director: Michael Geesey 25 ~ 12/8/2011 1:29:46 PM ~ Berger: Good Afternoon the department of audit is here. 6:13 ~ 12/8/2011 1:35:34 PM ~ Grenier: Vogel, SCheer, Robinson and Dilsaver accompany him. 6:50 ~ 12/8/2011 1:36:11 PM ~ Frenier: Department of Audit has 116 FT positionss. In compliance business - revenue, accounting and financial. Handout on number of emmplyees, 600 series no not have, 900 $2.89M dollars, and also have the reductions (did not bring them over) 8:43 ~ 12/8/2011 1:38:04 PM ~ Berger: At your convenience 8:54 ~ 12/8/2011 1:38:15 PM ~ Grenier: Start with budget 9:02 ~ 12/8/2011 1:38:23 PM ~ Berger: Yes 9:06 ~ 12/8/2011 1:38:27 PM ~ Grenier: Page 10 Administration division supports rest of the deparment. They are 25% funded by Federal funds -- mineral audit division... Page 11 starts exceptions: . They have $166K for microsoft, paying part of premimums for two years,. Along hae equipment money for servers, upgrading fire wall, storage solution making up additiinal $188K. Priority 2: Maintenance agrements Company does intrusion detection that ehy want to expand. Authentication software also is plart making up $62K. Third request for training: Money to pay for registration for IT department associated with upgrades. Have a small balance for training that they want to supplement. Training averages about $#K per course. Gov. denied that amount. 13:30 ~ 12/8/2011 1:42:51 PM ~ Berger: question 13:43 ~ 12/8/2011 1:43:04 PM ~ Vogel: Banking Division: Two untis Division of banking and Banking Board funds . Supervises state chartered financial institutions -- fees collected from institutions. Fees cover them at this time. Do not anticipate raising fees. Positions: STate Banking Board- responsible for chartering state banks .. board has 7 members... 3 trusts chartered and 1 bank... try to run as minimally as possible...26 state chartered banks..... On page 19 there is anexception item for computer equipment. Partially aprproved by Gov. Ask for the full amount Achieve minimal accreditation standards in 2012 when next onsite review occurs. Need to interface with federal counterparts. 18:00 ~ 12/8/2011 1:47:21 PM ~ Mier: Can pick up from slaraly savings the $20K. 18:16 ~ 12/8/2011 1:47:37 PM ~ Vogel: If it was possible to transfer from 100 to 200 series. 18:38 ~ 12/8/2011 1:47:59 PM ~ Grenier: Budget does not allow transfer from one series to another 18:53 ~ 12/8/2011 1:48:14 PM ~ Berger: Have you had further discussion with Waters regarding the request 19:08 ~ 12/8/2011 1:48:29 PM ~ Vogel: No 19:12 ~ 12/8/2011 1:48:34 PM ~ Grenier: What have in budget is computer equipment and asked for premium laptops. We need to have memory. The minimum is for desktop. They are out of the office from 60-70 % of time. They take a lot of wear and tear. 20:24 ~ 12/8/2011 1:49:45 PM ~ Berger: We had met with Mr. Waters so will have to talk with him about his denial. She knows that from past presentation the sensitivy of computers for the audit department. 21:25 ~ 12/8/2011 1:50:46 PM ~ Waters: With regard to replacement program and pricing, Gov concerned about the range of costs presented for computers... Reached out for bulk priciing so that they could buy at 40% discount. ... Western STates Contract Alliance, standards desk top, performance standard last desktop picked as standard for agencies. Will hold discussions with agencies. We will set up process for review with agencies... try to move away from desk printers. Move toward more economical printer.... We reached out to agencies on how to negotiate with them. There are some agencies that will need more power. They ahve saved over $3M so far... 24:38 ~ 12/8/2011 1:53:59 PM ~ Berger: Appreicate that 24:44 ~ 12/8/2011 1:54:05 PM ~ meier: Two years ago 24:58 ~ 12/8/2011 1:54:19 PM ~ Waters: Can't say what standard was two years ago 25:15 ~ 12/8/2011 1:54:36 PM ~ Mier: Point try to get forth is that the performance computer is better 25:38 ~ 12/8/2011 1:54:59 PM ~ Waters: Agencies may want to puchase higher RAM. They update performance computer with latest technology every 6 months. Typically the prices dont go up. .. Meant to be a moving target to meet needs. 26:26 ~ 12/8/2011 1:55:47 PM ~ Berger: Thank yuo for indullgence in presenting now. 26:45 ~ 12/8/2011 1:56:06 PM ~ Vogel: Does have anything else 27:08 ~ 12/8/2011 1:56:30 PM ~ Mier: All banks in great shape 27:16 ~ 12/8/2011 1:56:37 PM ~ Vogel: Wish could say that and have a watch list of some banks. Have a plan to correct deficiences and will shorten the list in next three months. Helathy .. 27:53 ~ 12/8/2011 1:57:14 PM ~ Esquibel: You oversee postdated check cashier so in general you protect consumers against deceptive practices 28:26 ~ 12/8/2011 1:57:47 PM ~ Vogel:; Things not disclosed with respect to statutory requirements. 28:46 ~ 12/8/2011 1:58:07 PM ~ Esquibel: If read the small printe and charged 150% it is ok? 29:10 ~ 12/8/2011 1:58:32 PM ~ Vogel: He regulates according to the law. Doesn't have authority to change. Is it a problem? Yes for some people it is. Should they get that loan, no. If it allowed by the state it is okay if not dsiclosed properly. 30:06 ~ 12/8/2011 1:59:27 PM ~ Equisbel: Will have to revisit. 30:15 ~ 12/8/2011 1:59:36 PM ~ Robinson: Adminstrator of public funds. Third of budget goes to auditing of school districts, another third for state agencies and local group and last third for the State of Wyoming . Her exception budget includes computers already discussed. The state wide audit-- every four years:-- two bidders-- go t a good bid. Current CPA took 22% discount so for $400K decrease this bienniam, but an increase for the following biennisum. We are saving money through the bid. 32:35 ~ 12/8/2011 2:01:56 PM ~ Berger: Uaing Wyoming provider 32:47 ~ 12/8/2011 2:02:08 PM ~ 32:53 ~ 12/8/2011 2:02:14 PM ~ VonFlatern: Is this bid speaking of state wide audit. 33:13 ~ 12/8/2011 2:02:34 PM ~ Robinson: STandard budget includes $2.19M and will only need $1.78M 33:47 ~ 12/8/2011 2:03:08 PM ~ Dilsaver: Quick overview of mineral audits. We have 870 taxpayers -- top hundred make up most of .. .. The 2.5% is still large amount... Assessments of $66vM and collections of $81M. 35:08 ~ 12/8/2011 2:04:29 PM ~ VonFlatern: What are those two numbers 35:18 ~ 12/8/2011 2:04:39 PM ~ Dilsaver: Assessment were $66M and collections $81M. 35:48 ~ 12/8/2011 2:05:09 PM ~ Berger: Exception just computers 35:58 ~ 12/8/2011 2:05:19 PM ~ Dilsaver: Yes. 36:23 ~ 12/8/2011 2:05:44 PM ~ Scheer: Division includes 20 people. in escise tax... 450 audits per year and on road 6-0-70% of time. Exception budget on page 38 ask for propsed positions for auditor. With two would bring staff to 22. Between 2007 and 20009 did 90 % of well operators with 10 wells or more. Brought complaince to 95%. During this time we had approximately ... from 2007-2009 did $1.9 M . This is why ask for position so that they can audit the operators.... in 2009 lost 3 and last year lost 1 -- two auditors would shore them up. 39:55 ~ 12/8/2011 2:09:16 PM ~ Von Flatern: When you talk about collections and assessments. 40:09 ~ 12/8/2011 2:09:30 PM ~ Scheer: Collections are what the Dept of revenue brings in after audit...appeal process might leseen;;; 40:45 ~ 12/8/2011 2:10:06 PM ~ VonFlatern: Are funign unreported dollars and it si collected whatever net is collected 41:07 ~ 12/8/2011 2:10:28 PM ~ SCheer: Yes 41:14 ~ 12/8/2011 2:10:35 PM ~ Berger: Estimate 41:21 ~ 12/8/2011 2:10:42 PM ~ Scheer: All of the operators 41:32 ~ 12/8/2011 2:10:53 PM ~ Mier: Audit the lodging tax. From time to time there is a fee that shows up in hotels. What is the statutority for that. 42:00 ~ 12/8/2011 2:11:21 PM ~ Scheer: He is not familiar. They audit the lodging tax. He knows that there is a special resort fee in Teton County. 42:34 ~ 12/8/2011 2:11:55 PM ~ Mier: Trying to find the authority. 42:47 ~ 12/8/2011 2:12:08 PM ~ Scheer: Would refer to Dept of revenue. 42:58 ~ 12/8/2011 2:12:19 PM ~ Edmonds: You have three positions offered up in last round and a fourth is frozen. 43:22 ~ 12/8/2011 2:12:43 PM ~ Scheer: Last position frozen and ... 43:37 ~ 12/8/2011 2:12:58 PM ~ Scheet: Talke about the computer equipment. With our audits on road 60% time. We rely heavily on sampling and porject. Software called IDEA do risk assement. It is important to ahve the right tools... 44:24 ~ 12/8/2011 2:13:45 PM ~ Berger: Questions 44:35 ~ 12/8/2011 2:13:56 PM ~ Esquibel: For the Administrative Division, will denial of training provide to dvision. 45:00 ~ 12/8/2011 2:14:21 PM ~ Grenier: It would be for four IT people in the division... What audit division does they ahve certain education requirements so try to do with IT 45:48 ~ 12/8/2011 2:15:09 PM ~ Esquibel: Allow to make be more efficeint. But that additional training, would make up that money easily through auditors. 46:33 ~ 12/8/2011 2:15:54 PM ~ Grenier:Yes 46:40 ~ 12/8/2011 2:16:01 PM ~ Edmonds: HLoss and hiring of positions 46:50 ~ 12/8/2011 2:16:11 PM ~ Grenier: Gave up three postions ... additional frozen 47:47 ~ 12/8/2011 2:17:08 PM ~ Berger: 48:28 ~ 12/8/2011 2:17:49 PM ~ Schmidt Like to Administrative staff 72 combined experience Cristie Yourek, Chris Maxfield, Graig Grenrick, Dan Noble, Greg Cook, Before I begin accomplishments One is 9.3 mill to create a nex excise tax system, schedule to go online in January We aslo point oout efficiencies small taxpayers can pay semi annually instead of quartly New for will allow counties Lodging vendors All sales tax will be available on the system. Payments plans can be negotiated in the field These are some of the larger vendors This are basically the price on the severence taxes Moving on to the CAM system. To date, is the only one Website chat room. The website is also avaible to the public Veterns can get online. The cam sys They can utilize them better for valuation purposes. Four people from teh accessors staff. What we created was a narrative system to put i Some counties had very comparable sales It was difficult for assessors to get their around. This has lelped Signifigantly Lizquer division live sales, on line orders Determines the exact Occupany during first of January. Licquor warehouse We anticipate being down 2 complete days We will have half licquor in the old warehouse and part in the new warehouse Split case shipping 1:05:35 ~ 12/8/2011 2:34:56 PM ~ Nicholas Refridgerated unit 1:06:02 ~ 12/8/2011 2:35:23 PM ~ Schmidt The is the optimum way 1:06:27 ~ 12/8/2011 2:35:49 PM ~ Nicholas What will be left in the old warehouse 1:06:52 ~ 12/8/2011 2:36:13 PM ~ Schmidt Our growth is about 5% growth per month The first item is the 10 year history of FTEYou would see the we canabilized from different areas of our Division Feb. would be a good month 5 miles our on campstool road Const. Mngt. took care of that. They did a very good joy The next item is a propaganda item. Basically we are doing more with less. Samething happens in the excize tax division In fact we reached 1 mill. in one month. The income has also doubled We have do Advolurm 1:12:35 ~ 12/8/2011 2:41:56 PM ~ Harshman: The law we passed, how 1:12:55 ~ 12/8/2011 2:42:16 PM ~ Schmit $7.1 million The one you seen in front of you is Division Property Tax Division - appraiser trining The Datri is to pick up voice cnfiguration tells fork lift operatior where prokuct is located. We are training on that right now. We have a training room out there. We train about ..... We have a contract with licquor commission You see the $104,000 That's it on the 600 series Imean 900, series Budget Proposals What it did.... Two Percent Reduction, Five Percent, 8 Percent reduction. We don't have a lot of programs It would either be personal or travel. The way we quantified if we were staying current............. We find that we have to cut this area, we would be penny wise , dollar foolish. Property tax Marxhall and Swift assessor's use Appraisal training Travel budgets - 3 people travel andtrain the cam system. In the past when we had to ligate. When we get to the 5% Excise tax - one position, one less written to do it with. Also does seminars Mineral tax arena one less position. We hope that our NTIS system Turn our GIS system. There are smaller counties that use this GIS software. 8% eliminate four position Torrington, Powel, Have to move into Thermopolis. THey attend gun shows Cigeratte ... Wyoming is in total compliance. Fewer people would be coovering larger areas. That's essentially it. Tax division has lost two divisions Any questions Exception Items It expendatures Significant cost reduction if they were centralized. 1:30:49 ~ 12/8/2011 3:00:10 PM ~ Jones I did provide for distrubtion I wanted 1:31:42 ~ 12/8/2011 3:01:03 PM ~ Schmidt This is what happened At some point in time we will have to update We had one server, then they come back and said the we needed 3 servers @ $19,000 each. We were not convinced that we needed 3 services. We are talking about a software that has not been created That said, we are asking for 1.3 million dollars. The gov and Mr. Waters thought it could ben done for less. I can't say that I don't agee with this. Before July 1, we are going into negotiations with this vendor. Is version 5 just a dream in some programs eye. 1:36:30 ~ 12/8/2011 3:05:51 PM ~ Nicholas I understand it is a pretty simple program. I am in not in a good position to judge that. 1:37:25 ~ 12/8/2011 3:06:46 PM ~ Schmidt Yes, we looked at 10 different companies. We brought 3 of them in to look at their programsI respectfully disagree. I believe it is the only act in town. We have 5 million dollars, warranties, ...tables, geo wear, latititude graphics, oracle database, SPSS . all are components that make up the overall canvas pkg..The contract does not dovetail with the biennium. We must maintain warrnaties on equipment 4 unti we go into version 5. Our warranties have been cut. Two servers have gone down and those had to be resurrected from scratch. I view the canvas system asthe same type of program that we have with the excise tax and the mineral tax. 1:41:02 ~ 12/8/2011 3:10:23 PM ~ Pedersen: If the CAMA version 5 is still in design phase, a series of tests,..is there a time horizon? Will e have until next session before we are ready. What is thep oint of ramping up with the servers? 1:41:55 ~ 12/8/2011 3:11:16 PM ~ Schmidt: 5 jurisdictions with a proto type...they said not to start yet..put it off until next yr..late 2012. This company has a histroy that they have not toally delivered. Two reps in today to talk about training..growing so fast that they do not take care of their customers...we hav issues with them..in the future will download 4 into 5. for 5 months out of the year assessors do not want us in the office. Yes, I do think we will be in the system. I do not know when, probably in a year or so..in the next biennium 1:44:08 ~ 12/8/2011 3:13:30 PM ~ Berger: pg 26 unit 201 printing and reproduction request 1:44:39 ~ 12/8/2011 3:14:00 PM ~ Schmidt: has to do with the cigarette stamps...There are 34 cig vendors around the state, that put the stamps on the boxes. Machines are 100,000 per machine. IF we found a different stamp vendor, all of those 34 would have to replace those machines. 1:46:10 ~ 12/8/2011 3:15:31 PM ~ Esquibel: I have heard that counterfeiting of stamps is a big business and causes loss of revenue to the state..holographic stamps 1:46:48 ~ 12/8/2011 3:16:09 PM ~ Schmidt: Dan Nobel 1:46:54 ~ 12/8/2011 3:16:15 PM ~ Noble: Used mericord that made stamps and machines that wholesalers utilized...one use piece of equipment, opening box already sealed, stamps cartons, then reseals, sizes the cigarettes based on king, etc. extremely expensive piece of equipment....95 per 1000 previously...sipca company that purchased mericord , claim to fame holographic, 3x more expensive than the ones we have to buy ...needed int 2 states because their tax is 4+ per pkg versus .60 in Wyoming.....in 11 years have never found a counterfeit stamp in Wyoming. The market for this is wher you can make some big bucks. ....sipca gave an increase to 3.35...two different stamping technology but the other one uses the sipca tech 1:51:22 ~ 12/8/2011 3:20:43 PM ~ Berger: pg 44 property tax refund 1:51:47 ~ 12/8/2011 3:21:08 PM ~ Christie: major changes, think the program is stable in revnues we are giving out, last 2 years have given out over 2 million, a 5 to 10% increase each year. Do not plan on making any other changes..asking for that increase plus administrative costs for mailing. 1:52:54 ~ 12/8/2011 3:22:15 PM ~ Berger ??? 1:52:58 ~ 12/8/2011 3:22:19 PM ~ Schmidt: shows program from 2003 by county... 1:53:19 ~ 12/8/2011 3:22:40 PM ~ Berger: staff will stamp in..tell us Mr. Schmidt 1:53:33 ~ 12/8/2011 3:22:54 PM ~ Schmidt: 2010 2447 applicants, 1 + million.....2010 avg refund is 400 dollars... 1:54:12 ~ 12/8/2011 3:23:33 PM ~ BergerL ddoing what we want 1:54:19 ~ 12/8/2011 3:23:40 PM ~ Schmidt: clearly stable 1:54:26 ~ 12/8/2011 3:23:47 PM ~ Berger Unit 501 1:54:55 ~ 12/8/2011 3:24:16 PM ~ Schmidt pg 50 first budget request exception...need equipment repairs and new equipment. these are requests for authorizastions. there is plenty of money within the excise dividsion, EMployee training...not objecting to that Pg 51requested additional batteries, 4 of 48 volt batteries and 8 24 volt batteries. They have a shelf life..can come to the gov for a B11 computers: 264,000 we have dealt with purchase of new vehicle approved Pg 53, approved for 2 tow motors, 2 forlifts and i pallat jack pg 54 professinal fees 171,000 100,000 approved and 71000 denied. We have gone to temporary services or awac to help us during the busy season...My human resoures person estimated 171,000 1:59:23 ~ 12/8/2011 3:28:44 PM ~ Berger: The temp services is in the handout 1:59:32 ~ 12/8/2011 3:28:54 PM ~ Schmidt: 300,ooo for professional fees. epicor runs the accounting system, had a catastrophic failure..both software and hardware. Epicor will not be supported by the microsoft server, support discontinued a year ago. Epicor must support it, ...upgrade from epicor for 300,000..pulled out of the sky. 10% cut, do not know if that is right or wrong but are willing to live with it. 2:01:44 ~ 12/8/2011 3:31:05 PM ~ Berger: That is it. 2:01:51 ~ 12/8/2011 3:31:12 PM ~ Schmidt: GF transfer of ? million dollars, Christie will explain that the WOLFE system 2:02:15 ~ 12/8/2011 3:31:36 PM ~ Christis: asking for transfer in 2 million to get from GF to..hoping to transfer 27 millino 2:02:42 ~ 12/8/2011 3:32:04 PM ~ Schmidt: transferring approx 75 millin per year. 2:03:36 ~ 12/8/2011 3:32:57 PM ~