Hawaii State Auditor

Hawaii State Auditor
Name	State Auditor of Hawaii
Incumbent	Nicole M. Dilger (Acting)
Incumbentsince	2022
Department	Office of the Auditor
Seat	Honolulu
Appointer	Governor of Hawaii
Termlength	Four years
Formation	1959
Website	State Auditor (Hawaii)

Hawaii State Auditor The State Auditor of Hawaii is a constitutionally established independent oversight official charged with examining State of Hawaii executive branch entities, public corporations, and selected programs to promote accountability and transparency. The office interacts with the Hawaii State Legislature, Governor of Hawaii, Department of Education (Hawaii), Hawaii Health Systems Corporation, Hawaiian Homes Commission Act programs and other public bodies through performance audits, financial audits, and special studies. The office’s work influences policy debates in the Hawaii Senate, Hawaii House of Representatives, judicial review in the Supreme Court of Hawaii, and administrative reforms across agencies such as the Department of Transportation (Hawaii), Department of Human Services (Hawaii), and Hawaii Department of Health.

History

The auditor’s office was created following the 1959 Hawaii Admission Act and the adoption of the Constitution of the State of Hawaii (1959), modeled in part on audit institutions such as the United States Government Accountability Office and the State Auditor (United States). Over decades the office has evolved alongside institutional developments including the consolidation of the Hawaii State Archives, changes in the Office of Hawaiian Affairs, and responses to crises such as the 1990s Hawaii health care reforms, the 2000s Hawaii economy downturn, and recovery efforts after events affecting the Pearl Harbor Naval Base region. Landmark episodes influencing the office’s authority include interactions with the Hawaii Public Utilities Commission, litigation involving the Hawaii Employer-Union Health Benefits Trust Fund, and audit-driven reforms tied to the Hawaii State Ethics Commission and Hawaii Campaign Spending Commission.

Office and Duties

The office conducts financial audits, performance audits, compliance reviews, and investigative audits concerning agencies including the University of Hawaiʻi system, the Hawaii Teacher Standards Board, the Hawaii Housing Finance and Development Corporation, the Department of Land and Natural Resources (Hawaii), and the Hawaii Emergency Management Agency. Statutory duties derive from the Hawaii Revised Statutes and constitutional provisions referencing oversight functions comparable to those of the California State Auditor, Texas State Auditor, and other state counterparts. The auditor reports findings and recommendations directly to the Legislature of Hawaii, with publications and testimony submitted to the Joint Legislative Audit Committee (Hawaii), Judiciary committees, budget committees such as the Senate Ways and Means Committee (Hawaii), and the House Finance Committee (Hawaii). The office works with external bodies like the Government Accountability Office (United States), the Association of Certified Fraud Examiners, and professional standards promulgated by the American Institute of Certified Public Accountants.

Organization and Staff

Structured into divisions such as financial audit, performance audit, information systems audit, and investigations, the office employs certified public accountants, information technology auditors, management analysts, and legal counsel with backgrounds from institutions including the University of Hawaiʻi at Mānoa, Brigham Young University–Hawaii, and mainland programs like Harvard Kennedy School or Georgetown University. Administrative alignment interacts with the Department of Budget and Finance (Hawaii) only in logistic matters; professional independence is maintained akin to the New York State Comptroller model. Staffing levels and internal governance reflect standards from organizations such as the National State Auditors Association and the Institute of Internal Auditors, and recruitment often draws applicants with prior service in entities like the Internal Revenue Service, Federal Bureau of Investigation, and state agencies such as the Hawaii Department of Public Safety.

Audit Process and Powers

Audits commence through planning, risk assessment, fieldwork, and reporting phases following Generally Accepted Government Auditing Standards and independence criteria comparable to the Government Accountability Office’s Yellow Book. The auditor has subpoena power, access to records from bodies including the Hawaii Public Housing Authority, Hawaii Community Development Authority, and private entities contracting with the state such as vendors to the Hawaii Keiki Program. Findings can prompt referrals to prosecutorial authorities like the Office of the Attorney General of Hawaii, the United States Department of Justice, or county prosecutors in Honolulu County, Maui County, Hawaii County, and Kauai County. The office may issue management letters, corrective action plans, and follow-up audits, and its work can trigger legislative hearings in committees including the House Committee on Labor and Public Employment (Hawaii) and the Senate Committee on Ways and Means (Hawaii).

Notable Audits and Impact

Notable reports have examined the Hawaii Health Systems Corporation operations, the Hawaii State Pension System actuarial practices, procurement processes involving the Honolulu Authority for Rapid Transportation, and information technology projects for the Department of Education (Hawaii). Audit findings have influenced reforms at the Hawaii Housing Finance and Development Corporation, prompted oversight changes at the Hawaii Emergency Management Agency, and led to legislative amendments in the Hawaii Revised Statutes governing procurement and financial reporting. High-profile interactions have occurred with elected officials from offices including the Governor of Hawaii, Mayor of Honolulu, and leadership in the Hawaii State Legislature, as well as federal counterparts such as the United States Department of Health and Human Services during program reviews.

Appointment, Terms, and Qualifications

The State Auditor is appointed by the Governor of Hawaii and confirmed by the Hawaii Senate for a four-year term, with qualifications informed by professional criteria similar to those required for chief auditors in states like California, Texas, and New York. Candidates typically possess credentials such as Certified Public Accountant licensure, advanced degrees from institutions like the University of Hawaiʻi at Mānoa or Stanford University, and experience in auditing, law, public administration, or finance with prior roles at entities including the United States Government Accountability Office, Internal Revenue Service, or state agencies. Removal procedures, succession, and interim appointment mechanisms engage the Office of the Governor and legislative oversight through confirmation hearings in the Hawaii Senate Committee on Judiciary and Labor (JDL).

Category:Government of Hawaii