Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Hawaiian Affairs, to which was referred H.C.R. No. 103 entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Office of the Auditor to conduct a management, program, and financial audit of the Department of Hawaiian Home Lands (DHHL), including a review and analysis of all sources of funding used or managed by DHHL.

The Representative from the 44^th House District and a concerned individual testified in support of this measure. Following your Committee's decision-making, DHHL submitted late testimony in support of this concurrent resolution.

In 2002, a financial audit revealed several problems with DHHL's financial operations. Accordingly, a follow-up audit would prove useful in determining the extent to which DHHL has addressed the problems identified in the previous audit. Moreover, expanding the scope of the follow-up audit to include management issues would provide further insight into the operation of DHHL as a whole.

As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 103 and recommends that it be referred to the Committee on Finance.