PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

FALL, 2003

Common Cause recommendations for effective oversight

Revised 1/13/04

Two general conclusions emerge from this research project:

1. According to the budget for FY 2004, the General Assembly has 280 FTE personnel; its budget for FY 2004 exceeds $29 million; it requires hundreds of reports of audits and other matters to be submitted to it at varying intervals; it annually creates dozens of study commissions mandated to report by stated deadlines; it currently possesses seven useful oversight mechanisms discussed in Tab 2. The oversight challenge to these oversight assets and mechanisms will increase relatively little, if at all, with the passage of constitutional amendments removing legislative participation from boards and commissions with executive and/or administrative functions. Common Cause has identified 73 such boards with approximately 220 seats for legislators and their appointees. In all other respects the oversight challenge facing the Assembly will remain exactly as it has been for years. Common Cause/RI recommends that the General Assembly concentrate on using (and perfecting) those assets and mechanisms it now possesses before it seeks to acquire additional personnel and funding for oversight purposes. 2. State law ( 35-7-4) now requires that the Department of Administration audit the books of accounts of all state departments and agencies at least once every two years. There appears to be no comparable requirement for audits of the Legislative Departments books of accounts. Common Cause recommends that the General Assembly set an example of good oversight by subjecting itself to the same statutory requirements for audits it has imposed on other state agencies.

Specific recommendations
A. Oversight of the Legislative Department 1. Common Cause recommends passage of legislation requiring that the Legislative Departments finances be audited by an independent CPA at least once every two years (the statutory requirement now in effect for audits of all other state agencies by the Department of Administration), with the report of the audit posted on the Assembly web site or on the web site of the Office of Auditor General. 2. Common Cause also recommends that the biennial audit include a performance audit of the Assemblys 280 FTE employees. The object of the management audit would be to evaluate the efficiency of the organization and operation of the Legislative Department. 3. In 2001 KPMG LLP did the first financial audit of the Legislative Departments books since 1993. Page I-1, the Independent Auditors Report, dated October 26, 2001, contains this statement: We noted no matters involving internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving internal control over financial reporting, which we have reported to management of the Legislative Department of the State of Rhode Island in a separate letter dated October 26, 2001.

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

This report is intended solely for the information and use of the Joint Committee on Legislative Services and is not intended to be and should not be used by anyone other than this specified party. The letter is not attached to the report. Neither appears on the Assemblys web site. Common Cause recommends that the Assembly post both the audit and the letter dated October 26, 2001, on the Assemblys web site. B. Affected membership of 71 boards with executive/administrative and/or judicial functions once legislative participation ends 1. See separate table. C. Boards and commissions which are inactive or superfluous 1. An ongoing Common Cause study (begun in January, 1996) has uncovered over 400 Rhode Island boards of all sorts, most of them created by law but some by executive order. The number changes constantly as boards expire and others are created. A number of these boards are clearly inactive. Others are redundant. Examples: the Schooner Effie B. Morrissey/Esmeralda Commission (the schooner is now owned and operated by a Massachusetts commission with the same name; shes home-ported in New Bedford); the Displaced Persons Committee created in the middle 1950s, almost certainly in response to the massive influx of political refugees from the Communist Bloc nations during the Cold War; The Jamestown Ferry Commission; two commissions to institute a computerized criminal and civil justice information system; two legislative commissions created to study the sport of boxing. The master list of these boards was updated in September, 2003, and is available from Common Cause. See also secretary of states web site. Common Cause recommends a thorough analysis of the statutes creating boards and commissions. Those that are inactive or superfluous should be repealed or amended. Others may be eligible for repeal and their functions assigned elsewhere. This recommendation includes the 71 boards and commissions with executive/administrative functions. 2. Common Cause recommends the passage of legislation standardizing the definition of all quasi-public corporations, defining their powers and duties under Rhode Island law, and instituting a joint legislative commission to oversee quasi-public corporations. We recommend 2002-S 2718A as a model. D. Audits, reports of audits, and reports on other subjects required by law (see Tabs 3 and 4 in this manual) 1. Common Cause recommends a thorough analysis by the Legislative Department of state agencies compliance with hundreds of statutes mandating the submission of reports to the General Assembly (see Tabs 3 and 4). At a minimum, this analysis should include a) a complete list of each statutory requirement along with statements as to the agencys compliance: how many such reports are on file, where they are in file, and when the last such report was submitted; b) an analysis of how each report is used by the receiving officer or entity; c) a statement for each statutory requirement as to whether the requirement should be retained, retained as amended, or repealed. It is particularly important that this analysis ascertain whether the Department of Administration is examining the books of all state agencies at least once every two years, as required by 35-7-4.

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

2. Two state agencies are now mandated or empowered by law to audit state agencies: the Bureau of Audits within the Department of Administration and the Office of Auditor General, an arm of the Joint Committee on Legislative Services within the Legislative Department. While the web site of the Office of Auditor General contains links to audits it has performed, the Reports page of the Bureau of Audits web site contains the notation under construction, which has been there since at least June, 2003. Common Cause recommends that the Bureau of Audits post, as soon as possible, links to reports of audits it has performed so citizens can examine these reports electronically as well as ascertain that the provisions of 35-7-4 are being fulfilled. 3. Common Cause notes that, while many state web sites contain a wealth of information useful to the states citizens, relatively few statutorily mandated reports of audits and other matters are available electronically (see Tab 3). Common Cause recommends that for all retained reports, the General Assembly amend those statutes a) to require agencies to submit their reports electronically to the Department of Secretary of State for posting on that departments web site; and b) to require that each agency required to submit a report post the report on its own web site. 4. On page 1 of Tab 3, Common Cause comments on the inconsistent language used in the statutes governing boards and commissions. Common Cause recommends that the review of these statutes discussed immediately above include standardizing the terms used. Common Cause also recommends that, in cases where this information is missing, statutes mandating reports specify officials by title to whom reports are to be submitted. Common Cause also believes that it is important, in cases where the information is missing, that statutes explain the matters the report should cover as well as the uses to which the report will be put. E. The General Assemblys oversight and study commissions 1. Common Causes study of more than 400 boards and commissions (see our master list of boards and commissions) includes 14 legislative oversight commissions. Good examples would be the Legislative Oversight Commission (ironically, inactive), the Permanent Joint Committee on Health Care Oversight (last amended in 2002); the Permanent Legislative Oversight Commission on Substance Abuse Prevention; and the Permanent Legislative Oversight Commission on Substance Abuse Treatment. We have been unable to find any evidence on-line of what these committees do or how their work benefits the citizens. Common Cause recommends that the General Assembly analyze these legislative commissions and retain, amend, or repeal, as needed. In cases where these special commissions are statutorily mandated to issue reports, Common Cause recommends that legislation be enacted requiring these reports to be posted electronically on the Assemblys web site. 2. The General Assembly annually creates commissions to study areas of concern (the depletion of fin fish in Narragansett Bay, for example, See also a Permanent House Commission to Study the Sport of Boxing1). These commissions are
This entity would seem to duplicate the Commission on Professional Boxing, Wrestling, and Kickboxing established by 1999 PL. Ch 399 to study these sports.
1

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

typically created for a finite period with a mandate to issue a report on the area of concern by a certain date. Some are permanent, however, as with the boxing study commission above. Most of the members of the study commissions are legislators, sometimes leavened by experts from different fields. The chairs are legislators. Many of these study commissions have their expiration and reporting dates extended, with the result that dozens of these study commissions are running concurrently from year to year. Some of these study commissions appear in the list of 40 commissions posted on the Assemblys web site. The rest do not, for reasons that are unclear. As noted in Tab 3, Common Cause has found electronic links to reports issued by two study commissions and one select Senate investigatory commission. We have found no links to any reports that dozens of other study commissions were directed to submit. Common Cause recommends that the General Assembly analyze the study commissions created in the 2000, 2001, and 2002 legislative sessions and post a report thereon on the Assembly web site. At a minimum the report should provide a complete list of these study commissions, a statement as to whether the commission was actually impaneled, a list of the members if impaneled, a statement as to whether the commission, if impaneled, issued a report (if required to do so), and a statement as to where that report can be found. 3. Common Cause recommends that the Assembly evaluate study commissions in general. The evaluation should endeavor to determine: a) whether the work of these commissions has resulted in some useful benefit to the citizens of Rhode Island; and b) whether the practice is sustainable, given the number of legislators available to serve on legislative study commissions, standing legislative committees, and hundreds of advisory boards and commissions to which legislators are now appointed. 4. Common Cause also recommends that the Assembly web site post links to all study commissions so interested citizens can attend meetings.

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

Some of the executive/administrative functions which Rhode Island General Laws confer on 100 boards and commissions
Purchase, take, receive, lease, mortgage, or otherwise acquire, own, hold, improve, or use real or personal property. Sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of real or personal property belonging directly or indirectly to the state. Employ architects, engineers, attorneys, accountants, advisors, consultants, and agents for the administration of properties controlled directly or indirectly by the state. Establish agencies, administer or supervise programs, or execute contracts pursuant to law. Pay debt service on general obligation bonds or on notes issued pursuant to law. Receive or administer taxes, fees, gifts, contributions, bequests, or other funds received by the state from public and private sources, including the federal government. Lend money, invest or reinvest funds, take or hold real or personal property as security for the payment of funds so loaned or reinvested pursuant to law. Formulate plans, adopt rules, issue regulations, set standards Enforce laws, enforce rules and regulations, investigate or prosecute complaints, issue subpoenas related to alleged violations, conduct adjudicative hearings, or issue reprimands as required by law. Issue permits, grant licenses, or conduct regulatory hearings, examinations, and investigations as required by law. Make assessments, set rates, impose user charges as required by law, charge and collect fees for licenses and permits. Sue and be sued on behalf of the state or any public or quasi public agency established by law.

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

Boards with executive and/or administrative functions and legislative participation

Names only
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. Administrative Committee of the State Register Agricultural Lands Preservation Commission. Board of Bank Incorporation Board of Curators Board of Examiners of Interpreters for the Deaf Board of Governors for Higher Education Board of Regents for Elementary and Secondary Education (also serves as Board for Vocational Education) Budget and Review Commission Capital Center Commission Central Falls Review Commission Child Advocate Appointing Committee Children's Crusade for Higher Education Coastal Resource Management Council Commission on Judicial Tenure and Discipline Commission on the Port of Galilee Committee to Establish and Administer a Comprehensive Automated Civil Information System Committee to Establish and Administer a Comprehensive Criminal/Juvenile Justice Information System Corporation for the Management of Quonset Point/Davisville Industrial Park (Subsidiary of RI Economic Development Corporation Disaster Emergency Funding Board Drivers Training School Licensing Examiners Board East Bay Economic Initiative Steering Committee Fire Education and Training Coordinating Board Fort Adams Foundation Health Professional Loan Repayment Board Historic District Commission (Providence) Housing Appeals Board I-195 Relocation Commission Library Board of Rhode Island Martin Luther King Jr. State Holiday Commission Mosquito Abatement Board Motor Vehicle Inspection Commission Narragansett Bay Commission Narragansett Indian Land Management Board Newport County Convention and Visitors Bureau New Shoreham Tourism Council Bureau, Inc. Permanent Committee on Rhode Island Medal of Honor Recipients Persian Gulf War Information Relief Commission Prepurchase Firearm Safety Training Review Board

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71.

Public Finance Management Board Rabies Control Board Rhode Island Clean Water Protection Finance Agency Rhode Island Economic Development Corporation Rhode Island Economic Policy Council Rhode Island, Forest, and Open Space Land Value Subcommittee Rhode Island Higher Education Assistance Authority Rhode Island Historical Preservation and Heritage Commission Rhode Island Housing and Conservation Board Rhode Island Human Resource Investment Council (also serves as the State Workforce Investment Board) Rhode Island Lottery Commission Rhode Island Post-Secondary Education Commission Rhode Island Public Telecommunications Authority Rhode Island Public Transit Authority Rhode Island Refunding Bond Authority Rhode Island Resource Recovery Corporation Rhode Island Student Loan Authority Rhode Island Underground Storage Tank Financial Responsibility Fund Review Board Rhode Island Vehicle Value Commission Rhode Island Water Resources Board (corporate) Scenic Roadways Board Sinking Fund Commission State Building Code Standards Committee State Comprehensive Plan Appeals Board State Conservation Committee State Crime Laboratory Commission State Investment Commission State Medical Examiners Commission State Properties Committee State Retirement Board (also administers the Municipal Employees' Retirements System) State Traffic Commission Tobacco Settlement Financing Corporation. Unclassified Pay Plan Board

Boards with executive and/or administrative functions and no legislative participation

1. 2. 3. 4. 5. 6. 7. Disabilities Enterprise Committee (within Governor's Commission on Disabilities) Energy Facility Siting Board. Governor's Commission on Disabilities Labor and Payment of Debt Appeals Board Milk Commission Motor Vehicle Dealers Licensing and Hearing Board Natural Heritage Preservation Commission

PUBLISHED BY THE COMMON CAUSE EDUCATION FUND

8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Occupational Safety and Health Review Board Parole board Pilotage Commission Public Utilities Commission Racing and Athletics Hearings Board Rhode Island Airport Corporation Rhode Island Atomic Energy Commission Rhode Island Commission for Human Rights Rhode Island Convention Center Authority Rhode Island Council on the Arts Rhode Island Depositors Economic Protection Corporation (ceased operations in January, 2003) Rhode Island Health and Educational Building Corporation Rhode Island Housing and Mortgage Finance Corporation Rhode Island Housing Resources Commission Rhode Island Industrial Facilities Corporation Rhode Island Industrial-Recreational Building Authority Rhode Island Public Rail Corporation Rhode Island State Labor Relations Board Rhode Island Turnpike and Bridge Authority State Board of Elections