State begs off
second audit

CORRECTION Wednesday, March 2, 2005 » Department of Human Services Director Lillian Koller did not ask the Legislature to hold off on an audit of the department's use of federal money. A Page A4 article in yesterday's early edition incorrectly said she had made such a request. Also, while the state has earmarked about $1 million in federal money for an anti-drug and alcohol public service campaign, only about $513,000 has been spent. The article was not clear on that point. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

The state Department of Human Services is asking the Legislature to hold off on any audit into its use of federal anti-poverty dollars until a similar federal audit is complete.

Human Services Director Lillian Koller made the request this month in a letter to Senate President Robert Bunda and House Speaker Calvin Say, noting that her staff's first obligation is to accommodate requests made by the federal government.

"It's very difficult now," Deputy Human Services Director Henry Oliva said yesterday. "To have everyone coming in at the same time straps our resources.

"We would prefer that they request the report that the federal auditor comes up with and use that."

The federal audit into the state's use of Temporary Assistance for Needy Families money was launched at the request of the U.S. Department of Health and Human Services' Administration for Children and Families.

The state's use of the money, known as TANF funds, has been a bone of contention between the Republican Lingle administration and majority Democrats in the Legislature. It became an issue after it was learned recently that about $1 million in TANF funds was being used for a campaign against drugs and alcohol abuse.

Human services officials said the state has a surplus of about $113 million in TANF funds.

House lawmakers introduced a resolution calling for the state audit, while both chambers also have advanced proposals that would give the Legislature oversight of TANF spending.

The state has welcomed scrutiny of the funds, saying their use has all been within broad federal guidelines, which say TANF funds must go to help poor families, promote self-sufficiency through job training and marriage, prevent unwanted pregnancies and encourage the formation of two-parent families.

Rep. Brian Schatz, who introduced the resolution calling for an audit, said the issue for him is not whether the state is in federal compliance.

"The question is whether or not the department is using good judgment," said Schatz (D, Tantalus-Makiki). "When people are struggling financially, a TV commercial doesn't help."