SB 1122 — AN ACT REQUIRING ANNUAL PERFORMANCE AUDITS OF MEDICAID-FUNDED PROGRAMS BY THE AUDITORS OF PUBLIC ACCOUNTS.

Senate General Assembly CommitteeFile Bill No.

112297 January Session, 2025 LCOSubstitute Senate Bill No.

47671122 ReferredSenate, toMarch 18, 2025 The Committee on HUMANHuman SERVICESServices Introducedreported by:through SEN.

(HS)LESSER ANof ACTthe REQUIRING9th ANNUALDist., PERFORMANCEChairperson AUDITSof OFthe MEDICAID-FUNDEDCommittee PROGRAMSon BYthe THEpart AUDITORSof OFthe PUBLICSenate, ACCOUNTS.that the substitute bill ought to pass.

AN ACT REQUIRING ANNUAL PERFORMANCE AUDITS OF MEDICAID-FUNDED PROGRAMS BY THE AUDITORS OF PUBLIC ACCOUNTS.

(NEW) (Effective July 1, 2025) Not later than December 1, 2025, and annually thereafter, the Senate chairperson and the House chairpersonchairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to human services shall provide to the Auditors of Public Accounts a written list of not less than two Medicaid-funded programs to be subject to performance audits by said auditors in accordance with section 2-90 of the general statutes, as amended by this act.

(NEW)sSB1122 (j)/ NotwithstandingFile the provisions of subsection (c) of this section, said auditors shall conduct not less than two performance LCO No.

476797 1 ofsSB1122 2File Committee Bill No.

112297 (NEW) (j) Notwithstanding the provisions of subsection (c) of this section, said auditors shall conduct not less than two performance audits annually of Medicaid-funded programs from a list of such programs provided to the auditors, in writing, by the Senate chairperson and the House chairpersonchairpersons and ranking members of the joint standing committee of the General Assembly having cognizance of matters relating to human services, in accordance with section 1 of this act.

AnyAdministrators of any such program being audited by the auditors shall provide any information the auditors deem necessary to conduct such audit.

The auditorsauditorsshallreporttheirfindingsandrecommendations,inaccordance shall report their findings and recommendations, in accordance with the provisions of section 11-4a, to the Governor, the State Comptroller and the joint standing committees of the General Assembly having cognizanceofmattersrelatingtoappropriationsandthebudgetsofstatecognizance ofmattersrelatingtoappropriationsandthebudgets of state agencies and human services.

Section 1 July 1, 2025 Section 1 New section Sec.

2 January 1, 2026 2-90(j) StatementHS ofJoint Purpose:Favorable Subst.

TosSB1122 ensure/ optimumFile useNo. of Medicaid dollars toward providing human services through utilization of performance audits conducted by the Auditors of Public Accounts.

[Proposed97 deletions2 aresSB1122 enclosedFile inNo. brackets.

Proposed97 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the exceptbenefit thatof whenthe members of the entireGeneral textAssembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot ofrepresent athe billintent orof resolutionthe isGeneral new,Assembly itor iseither notchamber underlined.]thereof Co-Sponsors:for any purpose.

SEN.In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

LESSER,Whenever 9thapplicable, Dist.agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

S.B.OFA Fiscal Note State Impact:

1122Agency LCOAffected No.Fund-Effect FY 26 $ FY 27 $ Auditors GF - Cost 555,000 545,000 State Comptroller - Fringe GF - Cost 220,000 220,000 Benefits1 Note:

4767GF=General 2Fund ofMunicipal 2Impact:

None Explanation The bill requires the Auditors of Public Accounts (APA) to perform at least two performance-based audits of Medicaid-funded programs per year resulting in a cost to the agency of $555,000 in FY 26 and $545,000 in FY 27, along with associated fringe benefit costs of $220,000 in FY 26 and FY 27.

To meet the requirements of the bill the APA will need to hire six additional auditors.

Each audit is anticipated to take a team of three auditors approximately one year to complete.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to employee wage increases.

1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 40.71% of payroll in FY 26.

2The new positions include two principal auditors and four auditor 1, along with other expenses costs.

sSB1122 / File No.

97 3 sSB1122 File No.

97 OLR Bill Analysis sSB 1122 AN ACT REQUIRING ANNUAL PERFORMANCE AUDITS OF MEDICAID-FUNDED PROGRAMS BY THE AUDITORS OF PUBLIC ACCOUNTS.

SUMMARY This bill requires the Auditors of Public Accounts to annually conduct performance audits of at least two Medicaid-funded programs.

The Human Services Committee chairpersons and ranking members must annually, beginning by December 1, 2025, give the Auditors of PublicAccounts a written list of at least two Medicaid-funded programs to audit.

The auditors must select programs to audit from among this list annually.

The bill requires administrators of programs being audited to give the auditors any information the auditors determine necessary.

The auditors must report their findings and recommendations to the governor, comptroller, and Appropriations and Human Services committees.

The bill also requires the Department of Social Services commissioner, within 30 days after the audit’s completion, to post a link to its results and recommendations on the department’s website.

EFFECTIVE DATE:

January 1, 2026, except the provision requiring the Human Services Committee leaders to provide a list of programs to be audited is effective July 1, 2025.

COMMITTEE ACTION Human Services Committee Joint Favorable Substitute Yea 22 Nay 0 (03/04/2025) sSB1122 / File No.