STAND. COM. REP. NO. 2981

Honolulu, Hawaii

RE:    H.B. No. 2908

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2908 entitled:

"A BILL FOR AN ACT RELATING TO AUDIT RECOMMENDATIONS,"

begs leave to report as follows:

     The purpose of this measure is to ensure agency accountability regarding audit recommendations made by the Office of the Auditor.

     The Office of the Auditor submitted testimony in support of this measure.

     The Office of the Auditor currently publishes an annual report that includes a section listing each recommendation from every audit of the previous year and any updates on the status of the recommendation that the Auditor may receive from an audited agency.  The Auditor considers these agency updates when planning follow‑up audits.

     Your Committee finds that this measure would compel an agency to update the Auditor regarding the agency's progress in implementing a recommendation and require the agency to submit a written report to the Auditor, President of the Senate, and Speaker of the House of Representatives explaining why an audit recommendation was not implemented.  Your Committee further finds that this measure will encourage agencies to fully implement the Auditor's recommendations and provide the Legislature with greater oversight over the implementation of audit recommendations.

     Upon further consideration, your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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 is in accord with the intent and purpose of H.B. No. 2908, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2908, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair