STAND. COM. REP. NO. 3512

Honolulu, Hawaii

RE:    S.C.R. No. 200

       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 S.C.R. No. 200, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A FINANCIAL AND MANAGEMENT AUDIT OF THE HAWAII CENTERS FOR INDEPENDENT LIVING,"

begs leave to report as follows:

     The purpose of this measure is to request the Auditor to conduct a financial and management audit of the Hawaii Centers for Independent Living.

     Testimony in support of this measure was received from the Disability and Communication Access Board, the Affordable Housing and Homeless Alliance, and seven private individuals.  The Department of Human Services and one private individual submitted comments.

     Your Committee finds that the Hawaii Centers for Independent Living, a nonprofit organization that receives federal and state funds to help individuals with disabilities achieve independence, faces serious allegations of mismanagement, misappropriation of state funds, failure to perform all of the duties under contract with the State, and a breach of fiduciary duty by its board of directors and officers.  Your Committee further finds that these allegations set forth compelling reasons for an audit, and that an audit would help determine any necessary corrections of the actions of the Centers and ensure the provision of the services needed for the health and well-being of Hawaii's citizens.

     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. 200, S.D. 1, and recommends its adoption.

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

____________________________

ROSALYN H. BAKER, Chair