Under the authority of art. III, secs. 1 and 24, of the Alaska Constitution and AS 44.17.060, 44.17.070, AS 44.19.010, and 44.19.144 and in the
interests of efficient administration, I, Frank H. Murkowski, Governor of the State of Alaska, order all principal departments of the executive
branch to perform internal performance audits.

The performance audits are to be coordinated by the Office of Management and Budget, Office of the Governor (OMB) and are to be conducted
according to the schedule and format determined by the OMB. The scope of these audits shall include

1. a review of department compliance with established objectives and goals and whether department operations and programs are being
carried out as planned;

2. a review of the economy and efficiency with which a department's resources are employed;

3. an evaluation of the accuracy, timeliness, and effectiveness of department accounting systems, reporting systems, and procedures;

4. a review of the reliability and integrity of department financial and operating information;

5. a review of department compliance with existing statutes, regulations, policies, and procedures; and

6. recommendations for consolidation and reorganization of departments, divisions, and duties and any other recommendation to promote
sound and efficient administration.

The OMB, together with principal departments of the executive branch, and in compliance with state personnel laws, may determine a program
to reward executive branch employees for suggestions and recommendations that lead to significant improvements in the efficient
administration of state government.

Working papers generated during the performance of these internal performance audits are confidential to the extent allowed by law until the
related final report is released as provided under state law. Working papers containing material that is designated by law as confidential remain
classified as confidential.

This Order takes effect immediately.

Dated this 2nd day of December, 2002.

/s/Frank H. Murkowski
Governor