Hawaii Office of the Auditor

Hawaii Office of the Auditor
Agency name	Hawaii Office of the Auditor
Formed	1959
Headquarters	Honolulu, Honolulu
Chief1 position	State Auditor

Hawaii Office of the Auditor is the independent state audit agency for Hawaii tasked with examining public entities across the Hawaii State Legislature, Hawaii County, Honolulu, Maui County, and Kauai County. The office conducts financial, performance, and compliance audits that inform the Governor, legislators, and the public about program effectiveness, fiscal stewardship, and statutory compliance. Established after Hawaii statehood in 1959, it operates within the framework of state statutory law and interacts with federal entities such as the Government Accountability Office and standards setters like the American Institute of Certified Public Accountants.

History

The office traces origins to constitutional provisions adopted during the Hawaii Admission Act era and later statutory refinement by the legislature, reflecting practices from institutions like the United States Government Accountability Office and the California State Auditor. Early audits addressed legacy programs from the Territory of Hawaii period, following shifts after the Dawson v. State litigation era and policy debates involving the Hawaii Public Utilities Commission and Department of Education. Over decades the office adapted to influences from the Yellow Book by the U.S. Government Accountability Office, the Institute of Internal Auditors, and court decisions such as holdings in State ex rel. Smith-style matters that clarified subpoena and access powers. The office modernized audit methodologies in response to events like the Great Recession and federal program expansions under the Affordable Care Act, increasing reviews of agencies including the Hawaii Health Systems Corporation and the Hawaii Housing Finance and Development Corporation.

Organization and Leadership

The Office is led by a State Auditor appointed following procedures involving the Hawaii State Senate confirmation process and reports to the legislature rather than an executive cabinet, similar to counterparts like the Florida Auditor General and the Texas State Auditor's Office. Leadership has included auditors with backgrounds from institutions such as the University of Hawaii system, Big Four accounting firms like PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG, and professional affiliations with the American Institute of Certified Public Accountants and the National State Auditors Association. The organizational structure typically comprises divisions for financial audit, performance audit, information technology audit, and administrative services, mirroring divisions found in the New York State Comptroller and California State Auditor offices.

Powers and Responsibilities

Statutory authority empowers the office to audit departments including the Department of Health, Department of Transportation, and Department of Human Services, and subdivisions such as the Hawaii Teachers Standards Board and the University of Hawaii Board of Regents. The office issues reports that may recommend actions to the Governor, the legislature, county councils like the Honolulu City Council, and quasi‑public entities such as the Hawaii Housing Finance and Development Corporation and the Hawaii Community Development Authority. It possesses subpoena and access rights comparable to the Government Accountability Office and courts have addressed disputes similar to matters seen in cases involving the Office of the Auditor (other states) and the United States Supreme Court precedent on state audit powers.

Audit Types and Methodologies

Audit types include financial audits of entities such as the Employees' Retirement System, performance audits of programs like the Medicaid (Title XIX), and information technology audits covering systems linked to the Hawaii Health Information Exchange. Methodologies draw on standards from the Yellow Book, the Generally Accepted Auditing Standards, and guidance from the Institute of Internal Auditors. The office employs risk assessment, sampling techniques used by the Federal Financial Institutions Examination Council, data analytics similar to practices in the Government Accountability Office, and performance measurement frameworks akin to those in the Performance Management literature used by entities such as the Brookings Institution and the Pew Charitable Trusts.

Notable Audits and Findings

Notable reports have examined fiscal controls at the Hawaii Public Employees Health Fund, procurement practices involving contractors from firms like Kiewit and Hawaii Gas, program outcomes for the Hawaii Prepaid Health Care Act implementations, and capital project oversight for the Daniel K. Inouye International Airport expansions. Investigations have flagged issues at the Hawaii Health Systems Corporation, Department of Education administration, and oversight of tourism‑related initiatives tied to the Hawaii Tourism Authority. Findings have prompted legislative hearings before committees chaired by members of the Hawaii State Legislature, reforms influenced by recommendations from organizations like the Office of Management and Budget (OMB), and media coverage in outlets such as the Honolulu Star-Advertiser and Civil Beat.

Budget and Staffing

Funding is appropriated through the legislative budget process and staffing levels reflect allocations similar to other state audit offices such as the Oregon Secretary of State Audits Division and the Washington State Auditor's Office. Personnel include certified public accountants licensed under the Hawaii Board of Public Accountancy, information technology auditors with certifications such as CISA (Certified Information Systems Auditor), and performance auditors trained in standards promulgated by the American Institute of Certified Public Accountants and the National State Auditors Association. Budgetary oversight and audit follow-up often intersect with fiscal reviews by the Hawaii State Legislature Budget Committee and legislative watchdogs including the Joint Legislative Audit and Review Committee in other jurisdictions.

Legal Authority and Oversight

Legal authority is codified in Hawaii Revised Statutes enacted by the Hawaii State Legislature and informed by constitutional provisions from the Constitution of the State of Hawaii. Oversight mechanisms include reporting obligations to the Hawaii State Legislature, subpoena defenses litigated in state courts including panels of the Hawaii Judiciary, and coordination with federal oversight bodies such as the United States Department of Health and Human Services when audits touch on federal funds. The office's independence and authority have parallels with the Government Accountability Office, state auditors in California, New York, and Texas, and are constrained or affirmed by case law from the Hawaii Supreme Court.

Category:State agencies of Hawaii