Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs and Government Operations and Health and Human Services, to which was referred S.B. No. 1019 entitled:

beg leave to report as follows:

The purpose of this measure is to remove the requirement that the Housing and Community Development Corporation of Hawaii (HCDCH) ensure that a compliance audit of service providers be conducted by an independent auditing agency during each fiscal biennium period.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development and Tourism, the Institute for Human Services, Inc., and Health Care for the Homeless Project.

Your Committees support this measure, which is estimated to save $250,000-$350,000 in state revenues for the next fiscal biennium. Your Committees believe that these funds could be more effectively used directly to implement programs for the homeless, rather than for propagation of more bureaucracy.

In addition, this measure establishes a requirement that service providers receiving funds from HCDCH annually submit a financial audit and report conducted by a certified public accounting firm. Your Committees find that the financial audits to be submitted by service providers will functionally serve the same purpose as the compliance audits currently require.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1019 and recommend that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.