STAND. COM. REP. NO. 2569

                                   Honolulu, Hawaii
                                                     , 2000

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




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2412 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to require the Auditor, on a
cyclical basis, to conduct managerial accountability audits of
all executive departments, the Judiciary, and their appropriate
organizational units.

     Specifically, this bill:

     (1)  Requires the Auditor to identify the managerial levels
          or positions responsible for the performance of the
          entity under audit, the adequacy of performance, and
          any inefficient or ineffective practices that
          contribute to unacceptable performance;

     (2)  Allows the Auditor to use the performance standards of
          the auditee or any other standards appropriate to the
          entity and the managerial level under audit; and

     (3)  Allows the Auditor to integrate the audits into other
          audits, or conduct the audits as stand-alone audits.


 
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                                   STAND. COM. REP. NO. 2569
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     In addition, this bill allows audit topics to be requested
by the Legislature or selected by the Auditor.  Following the
issuance of each managerial accountability audit report, the
auditee would be required to report to the Auditor on the
progress in making corrections or improving operations.

     Your Committee finds that management audits of entire
departments or whole programs may not result in the necessary
corrections being made or the noticeable improvement of day-to-
day operations if individual program managers do not take these
audits to heart.  Accountability means, in part, putting a name
and a face to the adequacy of performance, and any inefficient or
ineffective practices that contribute to unacceptable
performance.

     Your Committee has amended this bill by requiring the
Auditor to conduct these cyclical managerial accountability
audits within available resources.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2412, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2412, S.D. 1, and
be placed on the calendar for Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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