REPORT TITLE:
Auditor


DESCRIPTION:
Establishes a managerial accountability audit program in the
office of the auditor.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE AUDITOR.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 23-4, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�23-4 Duties.(a)  The auditor shall conduct postaudits
 
 4 of the transactions, accounts, programs, and performance of all
 
 5 departments, offices, and agencies of the State and its political
 
 6 subdivisions.  The postaudits and all examinations to discover
 
 7 evidence of any unauthorized, illegal, irregular, improper, or
 
 8 unsafe handling or expenditure of state funds or other improper
 
 9 practice of financial administration shall be conducted at least
 
10 once in every two years after the close of a fiscal year, and at
 
11 any other time or times during the fiscal year as the auditor
 
12 deems necessary or as may be required by the legislature for the
 
13 purpose of certifying to the accuracy of all financial statements
 
14 issued by the respective accounting officers and of determining
 
15 the validity of expenditures of state or public funds.
 
16      (b)  The auditor, in conducting postaudits, to the extent
 
17 practicable and applicable to the audit scope and objectives,
 
18 shall review and assess the audited agency's rules as defined in
 
19 section 91-1.
 

 
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 1      (c)  The auditor, on a cyclical basis within available
 
 2 resources, shall conduct managerial accountability audits of all
 
 3 executive departments, the judiciary, and their appropriate
 
 4 organizational units.  The auditor:
 
 5      (1)  Shall identify the managerial levels or positions
 
 6           responsible for the performance of the entity under
 
 7           audit, the adequacy of performance, and any inefficient
 
 8           or ineffective practices that contribute to
 
 9           unacceptable performance;
 
10      (2)  May use the performance standards of the auditee or any
 
11           other standards appropriate to the entity and the
 
12           managerial level under audit; and
 
13      (3)  May integrate the audits into other audits, or conduct
 
14           the audits as stand-alone audits.
 
15      The audit topics may be requested by the legislature or
 
16 selected by the auditor.
 
17      Following the issuance of each managerial accountability
 
18 audit report, the auditee shall report to the auditor on the
 
19 progress in making corrections or improving operations.  These
 
20 progress reports shall be submitted six months and twelve months
 
21 after issuance of the managerial accountability audit report.
 
22      The auditor may request additional progress reports, may
 
23 reaudit, or in any other manner may confirm the representations
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 of the auditee and shall report to the legislature on those
 
 2 subsequent findings of progress or lack thereof."
 
 3      SECTION 2.  New statutory material is underscored.
 
 4      SECTION 3.  This Act shall take effect on July 1, 2000.