STAND. COM. REP. NO. 1363

 

Honolulu, Hawaii

                  

 

RE:    S.C.R. No. 84

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.C.R. No. 84 entitled:

 

"SENATE CONCURRENT RESOLUTION REQUESTING THE STATE AUDITOR TO CONDUCT AN IMMEDIATE FINANCIAL STATEMENT AUDIT OF THE WATERS OF LIFE PUBLIC CHARTER SCHOOL FOR FISCAL YEAR 2006-2007 AND FISCAL YEAR 2007-2008,"

 

begs leave to report as follows:

 

     The purpose of this measure is to request the State Auditor to conduct an immediate financial statement audit of the Waters of Life Public Charter School for fiscal years 2006-2007 and 2007-2008.

 

     Your Committee received one written comment on this measure.  The written comment may be reviewed on the Legislature's website.

 

     Your Committee finds that it is of utmost importance to ensure that state funds are used responsibly.  The State Auditor conducted an audit of the Waters of Life Public Charter School in 2005 and found that the school's disregard for sound governance and business practices has placed its continued viability at risk.  Subsequently, the Waters of Life Public Charter School was unable to provide an independent auditor the supporting documents it needed to conduct an audit of fiscal year 2005-2006.  The deficiency caused the independent auditor to issue a disclaimed opinion and withdraw from undertaking the audits of fiscal years 2006-2007 and 2007-2008.  As a result, the Charter School Review Panel has been unable to find another independent auditor willing to immediately conduct the audits.  For these reasons, your Committee finds that an immediate financial statement audit of the Waters of Life Public Charter School should be conducted by the State Auditor for fiscal years 2006-2007 and 2007-2008.

 

     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. 84 and recommends its adoption.

 

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

 

 

 

____________________________

DONNA MERCADO KIM, Chair