STAND. COM. REP. NO.1371

Honolulu, Hawaii

, 2001

RE: H.B. No. 543

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 543, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HOMELESS PROGRAMS,"

begs leave to report as follows:

The purpose of this measure is to reduce audit requirements for programs for the homeless.

Specifically, this bill repeals the requirement that the Housing and Community Development Corporation ensure that an independent compliance audit of homeless program service providers is conducted at least once each fiscal biennium. The bill requires providers to submit to the Housing and Community Development Corporation an annual financial audit and report containing information specific to funds received from state homeless program contracts.

The Housing and Community Development Corporation and the Kalihi-Palama Health Center Health Care for the Homeless Project testified in support of the bill.

Originally, the audits were required because the homeless programs were new, without a track record. The State has budgeted more than $120,000 annually for independent compliance audits. The cost of conducting the compliance audit is projected to increase to approximately $250,000 to $350,000 in the next funding cycle.

Your Committee finds that the independent compliance audit requirement is not necessary because other required financial audits provide adequate information. The Housing and Community Development Corporation conducts program audits that provide additional monitoring of homeless program service providers. Your Committee finds that this bill would allow funds currently used for the compliance audit to be used to provide direct services to the homeless.

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 is in accord with the intent and purpose of H.B. No. 543, S.D. 2, and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair