Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1042 entitled:

begs leave to report as follows:

The purpose of this measure is to consolidate the pre-audit, accounting, finance, and budget functions of the State within the Department of Budget and Finance.

Your Committee received testimony in support of this measure from the Department of Budget and Finance and the Department of Accounting and General Services.

Your Committee finds that pre-audit and accounting services are currently provided by the Department of Accounting and General Services. Your Committee finds that transferring these functions to the Department of Budget and Finance will improve the efficiency and effectiveness of the State's financial programs.

Consolidating the State's pre-audit, accounting, budget, and finance functions in one agency will promote more consistent development and administration of policies and procedures relating to the budgeting and expending of public funds.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1042 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.