STAND. COM. REP. NO. 1813

Honolulu, Hawaii

RE:    S.C.R. No. 176

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 176 entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A FINANCIAL AND MANAGEMENT AUDIT OF THE DEPARTMENT OF AGRICULTURE'S OPERATION OF THE MOLOKAI IRRIGATION SYSTEM,"

begs leave to report as follows:

     The purpose of this measure is to request that the Auditor conduct a financial and management audit of the Department of Agriculture's operation of the Molokai irrigation system.

     Your Committee received comments in opposition to this measure by the Department of Agriculture.

     Your Committee finds that the Molokai irrigation system is the largest irrigation system operated by the Department of Agriculture and is wholly supported by the revenues that the Department of Agriculture derives from the irrigation system in the way of fees and charges to water users of the irrigation system.  However, the water users of the irrigation system are concerned with the possibility that, while the Molokai irrigation system is in need of long overdue maintenance and improvement, some of the revenues generated by the Molokai irrigation system are being diverted to support other irrigation systems or programs within the Department of Agriculture.

     Accordingly, it is intended that a financial and management audit of the operation of the Molokai irrigation system produce information that will determine whether the system's users are subsidizing other systems and programs and whether user fees can be reduced while providing needed improvements to the Molokai irrigation system.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 176 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair