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. 697 entitled:

begs leave to report as follows:

The purpose of this measure is to provide funding for the Legislative Auditor to perform an assessment of the awareness and existing levels of statewide implementation of Governmental Accounting Standards Board Statement No. 34 (GASB Statement No. 34).

Your Committee received comments on this measure from the Department of Accounting and General Services.

Your Committee finds that the State has a mandate to comply with GASB Statement No. 34 by June 30, 2002. Compliance with GASB Statement No. 34 requires each state agency to report the value and depreciation of each general fixed asset under the control of that agency.

The Department of Transportation, Highways Division, has already contracted with a consultant to assist in the valuation of its assets. Your Committee finds that other state agencies might have to take similar steps for compliance.

Your Committee supports this measure, which appropriates funds for the auditor to perform an assessment of awareness of GASB Statement No. 34 and the current level of implementation.

Your Committee amended this measure to delete the dollar amount of the appropriation for determination by your Committee on Ways and Means.

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. 697, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 697, S.D. 1, and be referred to the Committee on Ways and Means.