BB7950A9310E272A87258AB400531173 Hearing Summary

Parker White, Legislative
Liaison for the Department of Military & Veterans Affairs (DMVA), introduced
himself gave an overview of their presentation. Nicholas Severn, Chief
Financial Officer, introduced himself and gave an overview of the request
for supplemental funds from the Real Estate Proceeds Cash Fund for the
Fort Lupton Readiness Center. Mr. Severn explained that the department
has already spent funds to construct the building without the permission
of the CDC, JBC, or General Assembly. Construction is finished, but still
need to pay $197,000 in outstanding contractor work. Mr. Severn explained
how the DMVA was able to spend the money without permission and gave a
timeline of events. Mr. Severn then went over steps DMVA is taking to ensure
this does not happen again. Mr. Severn explained that the department is
working with the State Auditor on an investigation into the project.

A CDC staff memo
on the request is included as Attachment A, the JBC staff document on the
request is included as Attachment B, a letter from the Department of Personnel
& Administration on the project is included as Attachment C, and a
timeline of events from DMVA is included as Attachment D.

Representative Story gave comments on the situation and asked questions about the sweeping of the Real Estate Proceeds Cash Fund in 2020. Mr. White responded to the question, as did Mr. Severn. Representative Story asked additional clarifying questions.

Senator Hinrichsen asked additional questions around the federal funds, Mr. Severn and Dominic Scarimbolo, Design and Construction Branch Manager, answered the question. Senator Hinrichsen asked additional questions around how this error was discovered, Mr. White explained the timeline.

Senator Simpson asked if there are additional projects operating in the same manner, Mr. Severn responded saying they have looked into it and it appears it is just Fort Lupton.

Representative Story gave additional comments on the process going forward.