STAND

STAND. COM. REP. 314

Honolulu, Hawaii

, 2003

RE: H.B. No. 282

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Legislative Management, to which was referred H.B. No. 282 entitled:

"A BILL FOR AN ACT RELATING TO THE AUDITOR,"

begs leave to report as follows:

The purpose of this bill is to ensure that the audits of the departments, offices, and agencies of the Executive Branch of the State are conducted by an independent entity. This bill:

(1) Enables the Office of the Auditor (Auditor) to conduct these audits; and

(2) Provides a mechanism to preserve the State's ability to maximize the underwriting of the audits from non-general fund sources.

The Auditor supported the intent of this measure. The Department of Accounting and General Services and the Department of Education opposed this bill.

Your Committee has amended this bill by:

(1) Including audits of capital improvement funds to the list of audits for which fees may be charged and deposited into the Audit Revolving Fund (Audit Fund);

(2) Inserting the sum of $600,000 in general fund start-up moneys to be paid into the Audit Fund;

(3) Inserting the sum of $2,450,000 to reflect audit costs for federal, special, and other funds paid via the Audit Fund;

(4) Specifying that the funds expended by the Auditor shall be deemed to have been expended by the departments, offices, and agencies of the State and its political subdivisions subject to the Single Audit Act of 1984, P.L. 98-502, as amended; and

(5) Making technical, nonsubstantive amendments for consistency.

As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 282, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 282, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Legislative Management,

		____________________________ MICHAEL Y. MAGAOAY, Chair