Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 3011, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to:

1. Allow the Auditor to charge audited entities a reasonable fee for the cost of performing financial audits, including financial statement audits, audits required under federal law, and audits of special funds, revolving funds, or trust funds;
2. Create an Audit Revolving Fund (Fund) to be administered by the Auditor to collect moneys received to conduct audits and to pay for certified public accountants to conduct those audits;
3. Appropriate a one-time appropriation of $575,000 for fiscal year 2002-2003 to be paid into the Fund;
4. Appropriate $2,200,000 for fiscal year 2002-2003 from the Fund to carry out the purposes of the Fund; and
5. Appropriate $2,500,000 in general funds for fiscal year 2002-2003 to conduct financial statement audits required by federal law.

The State Auditor submitted testimony in support of this bill. The Department of Education, Department of Budget and Finance, Department of Accounting and General Services, and Hawaii Government Employees Association submitted testimony in opposition to this bill.

Your Committee has amended this bill by changing the effective date to July 1, 2024, to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3011, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3011, S.D. 2, H.D. 2.