STAND. COM. REP. NO. 993-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2412
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Legislative Management, to which was
referred S.B. No. 2412, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE AUDITOR,"

begs leave to report as follows:

     The purpose of this bill is to ensure greater accountability
in the operation of state government by requiring the Legislative
Auditor to conduct managerial accountability audits of all
executive departments, the Judiciary, and their appropriate
organizational units, on a cyclical basis.

     The bill allows the Legislature to request audit topics and
gives the Auditor discretion to select audit topics.  After the
issuance of each managerial accountability audit report, the
entity audited must report to the Auditor on the progress made in
making corrections or improving operations.  These progress
reports must be submitted six months and twelve months after the
issuance of the managerial accountability audit report.

     The bill allows the Auditor to request additional progress
reports, reaudit, or in any other manner confirm the
representations of the entity audited.  The Auditor would also be
required to report to the Legislature on subsequent findings.

     The Auditor supported this measure.

     As affirmed by the record of votes of the members of your
Committee on Legislative Management that is attached to this

 
 
                                 STAND. COM. REP. NO. 993-00
                                 Page 2

 
report, your Committee is in accord with the intent and purpose
of S.B. No. 2412, S.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Legislative
                                   Management,



                                   ______________________________
                                   EZRA KANOHO, Chair