The state auditor has found no evidence of impropriety by the Hawaii Disability Rights Center and is suspending further work on an audit ordered by the Legislature, concluding the agency is adequately monitored already by the federal government and courts.

Sen. Robert Bunda (D, Mililani Mauka-North Shore) and officials at Helemano Plantation had pushed for a financial and management audit of the federally mandated agency, whose mission is to protect and advocate for the disabled in Hawaii. They had questioned its approach in investigating allegations of misconduct at Helemano, a community for the disabled run by Opportunities for the Retarded Inc., which Bunda calls his “;favorite charity.”;

In a letter to the Legislature dated Oct. 10, state Auditor Marion Higa said the Disability Rights Center appears to be operating with proper financial protocols and within its federal mandate, which gives it broad authority to investigate complaints and gain access to confidential client records. She noted that the Disability Rights Center is audited regularly, and its management and operations have been reviewed and approved by federal authorities.

“;We have concluded that existing audit requirements and levels of oversight over the Hawaii Disability Rights Center's spending of state and federal funds provide a high degree of confidence in the center's compliance with applicable laws and rules,”; Higa wrote. Most of the center's budget is covered by the federal government. The state provides less than 10 percent, or $167,500 annually.

Higa said that conflicts over access to records belong in federal court, as has happened in this case. The Disability Rights Center has sued Opportunities for the Retarded Inc. twice over access to client records, saying it had been stonewalled in its efforts to investigate possible wrongdoing at Helemano, north of Wahiawa. ORI has filed a counterclaim accusing the center of “;abuse of process.”;

Administrators at Helemano argued that releasing clients' information to the Disability Rights Center would violate their rights to privacy. But last year, federal judges ordered ORI to turn over the records to the center, and it complied.

Roy Benavidez, staff attorney for the Disability Rights Center, said the auditor confirmed his agency's belief that the issue did not belong in the Legislature.

“;We prevailed in court, and basically their efforts at the Legislature failed,”; he said. “;HDRC's access authority is based on federal law. Any challenges to that authority are appropriately brought in federal court, not by way of local legislative initiatives. I'm glad the legislative auditor acknowledged this.”;

“;In light of the auditor's letter and the court's ruling in favor of HDRC in the ORI case, any further discussion about the appropriateness of HDRC's actions against ORI should be put to rest,”; Benavidez said. “;I hope the auditor's conclusions will act as a catalyst to bring the ORI litigation to an end.”;

But ORI is not giving up. Its counterclaim against the Disability Rights Center, accusing it of abusing its powers, is still pending in court. That issue has been referred to mediation.

Ann Higa, ORI's chief operating officer, said the auditor's decision to suspend work does not mean that the center “;has the right to unlimited, blanket access to the private records of individuals with developmental disabilities.”;

“;We strongly believe that individuals with developmental disabilities in Hawaii deserve the right to privacy,”; she said in a written statement. “;We are not alone in the belief that HDRC has overstepped its bounds by trampling on those rights even with the lack of claims or findings to justify its actions.”;

“;To date, there have been no findings against ORI and our sister organizations,”; she added. “;We remain in good standing with all federal and state regulatory agencies.”;

Bunda was traveling on the mainland and was not available for comment.