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THE SENATE                           S.C.R. NO.            
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING THE AUDITOR TO CONDUCT AN ANNUAL FINANCIAL AUDIT OF
    THE STATE GOVERNMENT AND THE COUNTIES. 


 1        WHEREAS, the Legislature finds that there is an immediate
 2   need for comprehensive, external annual financial audits of
 3   state and county governments; and
 4   
 5        WHEREAS, the goal of the annual financial audit is to
 6   ascertain the financial viability of state and county
 7   governments and to provide management reports which will lay
 8   the groundwork to reshape government for a new and improved way
 9   of doing business; and
10   
11        WHEREAS, the purpose of an annual financial audit is to
12   verify the financial standing of state and county governments,
13   examine their organization, management, and operation of state
14   and county programs, as well as identify any opportunities to
15   reorganize, consolidate, and eliminate duplicative functions;
16   and
17   
18        WHEREAS, an additional purpose of the annual financial
19   audit is to provide a complete review of the cost-efficiency of
20   state and county agencies, including programs, services, and
21   activities conducted by the agencies; and
22   
23        WHEREAS, the Legislature also finds that an annual
24   financial audit of state and county governments will call
25   attention to any irregularities in the procurement process
26   which have already been demonstrated in the city and county's
27   Ewa Villages housing project, as well as improve government
28   operations by identifying existing problems or potential future
29   problems involving internal supervisory measures; and
30   
31        WHEREAS, the Legislature further finds that each audit
32   should be conducted by one or more independent auditors in
33   order to provide an outsider's view to determine whether
34   reductions can be made in state and county spending; and
35   
36        WHEREAS, the Auditor has the discretion to contract with

 
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                                  S.C.R. NO.            
                                                        
                                                        

 
 1   one or more independent auditing firms to conduct the annual
 2   financial audits of Hawaii's state and county governments; and
 3   
 4        WHEREAS, the Auditor may select the independent auditor or
 5   auditors through competitive sealed bidding or proposals
 6   pursuant to chapter 103D, Hawaii Revised Statutes; and
 7   
 8        WHEREAS, all departments, agencies, and offices of the
 9   State and counties and any private organizations receiving
10   state or county funds shall fully cooperate with and provide
11   assistance in response to the Auditor's or independent
12   auditors' requests with respect to this audit; now, therefore,
13   
14        BE IT RESOLVED by the Senate of the Twentieth Legislature
15   of the State of Hawaii, Regular Session of 2000, the House of
16   Representatives concurring, that the Auditor is requested to
17   conduct a comprehensive, annual financial and managerial audit
18   of both State and county governments; and
19   
20        BE IT FURTHER RESOLVED that the Auditor and any affiliated
21   independent Auditor shall report its findings to the
22   Legislature and the Office of the Governor no later than twenty
23   days before the convening of the regular session of 2000; and
24   
25        BE IT FURTHER RESOLVED that certified copies of this
26   Concurrent Resolution be transmitted to the Governor, the
27   Mayors of the City and County of Honolulu, Maui, Hawaii, and
28   Kauai and the Auditor.
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32                         OFFERED BY:  ____________________________