Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 2751 entitled:

begs leave to report as follows:

The purpose of this bill is to appropriate funds to the Department of Education (DOE) for:

(1) Four internal auditor positions;

(2) Two support positions; and

(3) One-time start-up and equipment expenses.

DOE and the Hawaii State Teachers Association submitted testimony in support of this bill.

Your Committee finds that DOE currently only has one internal auditor, which is significantly less than other state agencies, as well as other states and school districts throughout the country. Expanding DOE's internal audit functions will improve accountability, efficiency, cost-effectiveness, and allow DOE to establish more sophisticated budgeting and accounting systems.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2751 and recommends that it pass Second Reading and be referred to the Committee on Finance.