CONFERENCE COMMITTEE REP. NO.127-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 1821

H.D. 2

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1821, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE LEGISLATIVE AUDITOR,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to provide the Office of the Auditor (Auditor) with sufficient funds to conduct financial audits of the departments, offices, and agencies of the State by:

    1. Creating an Audit Revolving Fund (Fund) to be administered by the Auditor to collect moneys received to conduct audits and to pay for certified public accountants to conduct those audits;

(2) Making an unspecified appropriation for fiscal year 2002-2003 to be paid into the Fund;

(3) Appropriating an unspecified amount of funds for fiscal year 2002-2003 for the Auditor to conduct a financial audit of the department of education.

Your Committee on Conference has amended this bill by:

(1) Allowing the Auditor to charge audited entities a reasonable fee for the cost of performing financial audits, including financial statement audits, audits required under federal law, and audits of special funds, revolving funds, or trust funds;

(2) Providing that legislative appropriations may be deposited into the Fund;

(3) Reallocating general funds already appropriated by Act 1, Session Laws of Hawaii (SLH) 2002, by:

(A) Changing the amount appropriated to the Auditor to $2,727,219; and

(B) Providing that the sum of $1,897,443 will be used to defray the expenses of the Auditor during fiscal year 2002-2003;

(4) Appropriating $275,000 for fiscal year 2002-2003 to be

paid into the Fund;

(5) Changing the expending agency of the Fund to the Auditor;

(6) Appropriating $600,000 for fiscal year 2002-2003 from

the Fund to carry out the purposes of the Fund and to

provide the auditor with necessary funds to conduct

financial statement audits and audits required under

federal law of the department of education;

(7) Changing the effective date to July 1, 2002; and

(8) Making technical, nonsubstantive amendments for purposes

of style and clarity.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1821, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1821, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

BRIAN T. TANIGUCHI, Chair

____________________________

NATHAN SUZUKI, Co-Chair

____________________________

NOBU YONAMINE, Co-Chair