WHEREAS, Act 200, Session Laws of Hawaii 2010 (Act 200), established the full-time position of Chief Information Officer and the Information Technology Steering Committee to assist the Chief Information Officer to organize, manage, and oversee statewide information technology governance; and

WHEREAS, in March 2011, a partnership program between the Governor and Hawaii Community Foundation provided a $3,000,000 grant to help establish a new Office of Information Management and Technology (OIMT) to be headed by the Chief Information Officer; and

WHEREAS, Act 200 also established and designated the shared services technology special fund as the source of funding for the operations of the Chief Information Officer and the OIMT; and

WHEREAS, OIMT released a business and technology transformation plan in 2012 that projected substantial increases in information technology project spending from $4,500,000 in fiscal year 2012 to $45,000,000 in fiscal year 2015; and

WHEREAS, in December 2013, the OIMT released a strategic plan update showing a budget of over $24,500,000 for fiscal year 2013 and over $20,000,000 for fiscal year 2014; and

WHEREAS, in February 2014, the Deputy Chief Information Officer was promoted to the Chief Information Officer following the departure of the former Chief Information Officer without an outside search; and

WHEREAS, during October 2014, approximately twenty-five percent of the OIMT staff were fired on the same day, while during the same month four of the outgoing governor's appointees were hired by the Chief Information Officer; and

WHEREAS, OIMT recognized Mansha Consulting as "Contractor of the Year" in 2013, and several OIMT staff members were hired by Mansha following commencement of the company's work with the Hawaii Health Connector; and

WHEREAS, since OIMT has a large state budget and awards many contracts to third parties and the increase in expenditures overseen by OIMT since its inception has been substantial, the State should be assured that it is receiving full return on these expenditures and that the ability of OIMT to manage state information technology in the State's best interest has not been compromised by high staff turnover; and

WHEREAS, OIMT is responsible for providing information technology services for eighteen state departments, one hundred eight attached agencies, and one hundred sixty-eight boards and commissions; and

WHEREAS, the State employs seven hundred forty-six information technology employees that are dispersed throughout the various state agencies to enhance support and services provided for state information technology needs; and

WHEREAS, the organizational structure, reporting lines, and accountability of OIMT positions and functions are not clear; and

WHEREAS, the authority of OIMT to oversee, direct, or influence information technology activities in the various departments is unclear; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2015, that the Auditor is requested to conduct a financial and management audit of the OIMT; and

BE IT RESOLVED that the audit include:

(1) The general operational procedures of OIMT; and

(2) The organizational structure of OIMT, including personnel practices and staffing coverage;

(3) Internal budgeting and fiscal controls to ensure effective and appropriate expenditure of appropriations and matching federal funds designated for exempt employees; and

(4) Any other matters that the Auditor deems appropriate; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations of the audit, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2016; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Comptroller, Chief Information Officer of the Office of Information Management and Technology, and State Auditor.

	OFFERED BY:	_____________________________

Report Title:

Office of Information Management and Technology; Audit

THE SENATE	S.R. NO.	110
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII