S.C.R. NO.



S.D. 1






requesting an audit of the randolph-shepPard revolving account.


WHEREAS, the Randolph-Sheppard Revolving Account (account) was established by section 347-12.5, Hawaii Revised Statutes, for the benefit of Hawaii's blind vendors; and

WHEREAS, the State has established the funds in the account to be held in trust for the benefit of all blind vendors and the program that serves them; and

WHEREAS, the account consists of income from vending machines on federal, state, and county properties; and

WHEREAS, funds in the account are expended for specific purposes including the following:

(1) Retirement and other fringe benefits;

(2) Purchase of new blind vending facility equipment;

(3) Maintenance and replacement of vending facility equipment; and

(4) Management services; and

WHEREAS, the term "management services" includes services for the Hawaii Committee of Blind Vendors, supervision, inspection, quality control, consultation, accounting, regulation, in-service training, and other related services provided on a systematic basis to support and improve vending facilities operated by blind persons, but not on-going services or costs associated with the operation of an individual facility; and

WHEREAS, the Hawaii Committee of Blind Vendors is entitled under the Federal Randolph-Sheppard Act to participate fully in making decisions for the blind vending facility program; and

WHEREAS, the Hawaii State Legislature has received information indicating that the Hawaii blind vending facility program has taken a number of administrative actions that may violate both the federal Randolph-Sheppard Act and state laws and regulations, in that revolving funds may have been expended improperly in the firing of a secretary hired by the committee of blind vendors, in hiring contract personnel, and in hiring a non-blind individual to operate a blind vending facility, all without the approval of the committee, and in the process expending funds from the account, among other actions; and

WHEREAS, the Office of the Auditor is charged with the responsibility to review the practices of state agencies to ensure compliance with all laws; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, the House of Representatives concurring, that the Auditor is requested to perform a financial and management audit of the Randolph-Sheppard Revolving Account to be conducted within ninety days following the adoption of this Concurrent Resolution; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of its findings and recommendations to the Legislature not later than thirty days following the completion of the audit; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Director of Human Services, the Director of Finance, and the Chairperson of the Hawaii Committee of Blind Vendors.




Report Title:

Randolf-Sheppard Revolving Account; Audit