THE OBJECTIVES OF THE AUDIT WERE (1) TO PROVIDE A BASIS FOR EXPRESSING AN OPINION ON THE REASONABLE ACCURACY OF THE STATE JUDICIARY'S FINANCIAL STATEMENT, (2) TO ASCERTAIN THE DEGREE OF COMPLIANCE WITH THE LAWS OF THE STATE IN THE JUDICIARY'S EFFECTIVENESS, AND EFFICIENCY OF THE STATE JUDICIARY'S SYSTEM AND PROCEDURES FOR FINANCIAL ACCOUNTING AND CONTROLS, AND RECOMMEND IMPROVEMENTS TO SUCH SYSTEMS AND PROCEDURES. INCLUDED ARE AUDITOR'S OPINIONS REGARDING THE ACCURACY OF THE JUDICIARY'S FINANCIAL STATEMENTS, EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS, AND DISPLAYS OF THE FINANCIAL STATEMENTS OF THE GENERAL FUND AND TRUST AND AGENCY FUNDS ADMINISTERED BY THE STATE JUDICIARY. RECOMMENDATIONS CONCERNING THE JUDICIARY'S SYSTEM OF INTERNAL AND FINANCIAL CONTROLS CALL FOR THE SEGREGATION OF DUTIES IN THIS AREA IN SOME COURTS, OFFICIAL ASSURANCE THAT EACH CIRCUIT AND DISTRICT COURT COMPLIES WITH THE REQUIREMENTS OF SUBMITTING MONTHLY FINANCIAL REPORTS, THE DEVELOPMENT BY THE JUDICIARY OF A COMPLETE ACCOUNTING AND OPERATION POLICIES AND PROCEDURES MANUAL, AND OTHER REFORM STEPS. OVERALL, AUDIT FINDINGS POINT OUT THAT INTERNAL CONTROLS AND SAFEGUARDS OVER COLLECTIONS AND TRUST PROPERTY ARE WEAK THROUGHOUT THE COURT SYSTEM, THE HONOLULU TRAFFIC VIOLATIONS BUREAU'S DATA PROCESSING EQUIPMENT IS ANTIQUATED AND INADEQUATE FOR THE EXPEDITIOUS PROCESSING OF CITATIONS, AND THE FINANCIAL STATEMENT OF THE JUDICIARY CONCERNING ITS PROGRAMS FINANCED BY THE STATE GENERAL FUND IS REASONABLY ACCURATE. TABULAR DATA, COMMENTS BY THE STATE JUDICIARY AND RELATED CORRESPONDENCE ARE INCLUDED. (WJR)