HOUSE OF REPRESENTATIVES
                      THE TWENTIETH LEGISLATURE
                       REGULAR SESSION OF 1999

                        COMMITTEE ON FINANCE
              Representative Dwight Y. Takamine, Chair
            Representative Bertha C. Kawakami, Vice-Chair

                  NOTICE OF INFORMATIONAL BRIEFING

      DATE:     Wednesday, January 20, 1999
      PLACE:    State Capitol, Conference Room 308

      SUBJECT:  BRIEFING ON REPORTS SUBMITTED BY THE OFFICE OF THE
                LEGISLATIVE AUDITOR AND DISCUSSION ON THE
                RECOMMENDATIONS

  Ms. Marion Higa, State Auditor
  Office of the Auditor

2:30 p.m. to 3:30 p.m.

Management Audit of Hawaii's School-to-Work Opportunities System
(Report No. 98-21)

Auditor's
Recommendations    1.  The governor should not provide any additional
                    funding for Hawaii's school-to-work opportunities
                    system until the executive council clearly defines
                    the system's mission and goals, and clarifies how it
                    intends to measure outcomes for school-to-work.

                2.  The executive council and the Department of
                    Education must clarify the role of the fiscal agent
                    and determine who is responsible for ensuring that
                    partnerships are held accountable for their funding.

                3.  The Legislature should require the executive
                    council, the Department of Education, and the
                    University of Hawaii to determine the effectiveness
                    of the safety surveys and whether they should be
                    continued.

                4.  Regardless of whether safety surveys are conducted,
                    the Legislature should require standardized worker
                    readiness training, which should be approved by the
                    Department of Labor and Industrial Relations HIOSH
                    Division.

                5.  Agencies responsible for training should help to
                    ensure that students, teachers, parents and work
                    site employers are provided with more information on
                    the work limitations of students, unsafe situation
                    recognition and prevention techniques, and child
                    labor laws.




                                                   (continued)

NOTICE FIN 01/20/99 (PAGE 1)


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agenda - January 20 1999 - page 2

3:30 p.m. to 4:30 p.m.

Audit of Student Transportation Services
 (Report No.99-01)
Auditor's
Recommendations:

       1. Recommends that the Department of Accounting and General
          Services:

          a. Revise the base fare methodology to include control
             requirements already established under contract provisions
             and implement this methodology more frequently;

          b. Conduct a formal documented analysis of the "50 percent
             rule" to determine legality.  If the department feels that
             the provision is warranted, it should develop a
             cost/benefit analysis and follow appropriate administrative
             procedures to establish the provision as a formal rule;

          c. Improve personnel and fiscal accountability by implementing
             procedures for contract monitoring, investigations, and
             surveying contractor performance.  It should also develop a
             consistent method of applying fines and penalties; and

          d. Improve fiscal accountability and its West Hawaii fleet
             operations by implementing procedures similar to those
             outlined in Accounting for Collections, Section VII, User
             Policy Guide and Process flow Manual (DOE). The department
             should also reconcile student transportation expenditures
             and encumbrances to FAMIS reports monthly to ensure the
             program does not exceed its authorized ceiling and lapse
             unused encumbered funds for expired contracts.

       2. Recommends that the Department of Education improve:

          a. Fiscal and management controls over the pre-paid bus pass
             program by implementing policies and procedures outlined in
             the department's User Policy Guide and Process Flow Manual;

          b. Procedures for reporting delays or service problems,
             developing projections of needed special education services
             in light of school year variations, and require more timely
             submission of special education transportation requests;
             and

          c. Controls over eligibility determination for full-subsidy
             ridership and bus pass processing.

IF YOU REQUIRE SPECIAL ASSISTANCE OR AUXILIARY AIDES AND/OR SERVICES TO
ATTEND THE INFORMATIONAL BRIEFING OF THE STATE HOUSE (I.E., SIGN LANGUAGE
INTERPRETER, WHEELCHAIR ACCESSIBILITY, OR PARKING DESIGNATED FOR THE
DISABLED), PLEASE CONTACT THE HOUSE COMMITTEE ON FINANCE AT 586-6200, 24
HOURS PRIOR TO THE HEARING SO ARRANGEMENTS CAN BE MADE.



                               ___________________________________
                               Rep. Dwight Y. Takamine, Chair
 
NOTICE FIN 01/20/99 (PAGE 2)