Bill Text: HI SB2971 | 2016 | Regular Session | Amended
Bill Title: University of Hawaii; Accounting and Financial Management System; Community Colleges; Construction Academy Annual Report; Repealed
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2016-04-29 - Conference Committee Meeting will reconvene on Friday, 04-29-16 at 4:00PM in Conference Room 329. [SB2971 Detail]
Download: Hawaii-2016-SB2971-Amended.html
THE SENATE |
S.B. NO. |
2971 |
TWENTY-EIGHTH LEGISLATURE, 2016 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE UNIVERSITY OF HAWAII.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. The legislature finds that the University of Hawaii has maintained a separate accounting system since 1986, which has been compatible with both Hawaii accounting system requirements and generally accepted accounting principles. The legislature further finds that the University of Hawaii has recently upgraded its accounting system through its participation in the Kuali financial system consortium, a university-based financial management software that better meets the unique needs of university systems throughout the United States. Since the implementation of Kuali financial system, the University of Hawaii continues to provide bi-monthly payroll feeds to the state department of accounting and general services, in addition to routine and annual financial reports that are included in the State of Hawaii's annual consolidated financial statements.
The purpose of this part is to extend the authority of the University of Hawaii System to maintain a separate accounting and financial management system that is compatible with the State of Hawaii accounting and financial systems.
SECTION 2. Section 40-1, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) With respect to
the executive branch, except the University of Hawaii until June 30, [2016[,]]
2017, and the department of education, the comptroller shall have complete
supervision of all accounts. The comptroller shall preaudit all proposed
payments of $10,000 or more to determine the propriety of expenditures and
compliance with executive orders and rules that may be in effect. When
necessary, the comptroller shall withhold approval of any payment. Whenever
approval is withheld, the department or agency concerned shall be promptly
notified. With respect to the University of Hawaii and the department of
education, the comptroller shall issue warrants for the release of funds for
the operating costs of the university or the department of education, as
applicable, in amounts and at times mutually agreed upon by the governor or
director of finance and the university or department of education, as
applicable; provided that:
(1) The amounts released shall not exceed the allotment ceilings for the respective funding sources of the university's or the department of education's appropriations established by the governor for an allotment period pursuant to section 37-34; and
(2) The comptroller may issue warrants as an advance from the state treasury to the University of Hawaii and the department of education to establish a checking account and provide working capital in amounts and at times mutually agreed upon by the governor or director of finance and the University of Hawaii and the department of education.
The University of Hawaii and the department of education shall preaudit all proposed payments of $10,000 or more and shall preaudit samples of the population of proposed payments of less than $10,000; provided that the sample size comprises at least five per cent of the population, and is of a size that the chief financial officers of the University of Hawaii and the department of education, as applicable, determine appropriate, to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules. The University of Hawaii and the department of education shall make disbursements for operating expenses from the amounts released by the comptroller and maintain records and documents necessary to support those disbursements at times mutually agreed upon by the university president or the superintendent of education, as applicable, and the comptroller; provided that when requested by the university or department of education, the comptroller shall make all disbursements for the university or department of education, as applicable, subject to available allotment. Funds released pursuant to this section shall be deposited by the university or department of education, as applicable, in accordance with the provisions applicable to the director of finance by chapter 38. Any interest earned on the deposit of funds released pursuant to this section shall be deposited in the state treasury at the end of each fiscal year."
SECTION 3. Section 40-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The accounting
system installed by the commission on public accountancy under Act 181, Session
Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for
use in the offices of the comptroller, director of finance, departmental and
agency services of the State, and the auditors, treasurers, departmental and
agency services of the several counties shall be the accounting and reporting
systems of the State and counties; provided that the University of Hawaii[,]
until June 30, [2016,] 2017, may install a different accounting
system that shall be in conformity with generally accepted accounting
principles as applied to colleges and universities; and provided further that
the department of education may install a different accounting system that
shall be in conformity to generally accepted accounting principles. The
comptroller shall make such changes and modifications in the accounting system
as shall from time to time appear to be in the best interest of the State and
counties."
SECTION 4. Section 40-4, Hawaii Revised Statutes, is amended to read as follows:
"§40-4 Publication
of statements. The comptroller shall prepare and submit to the governor,
immediately following the close of each fiscal year, a statement of income and
expenditure by funds, showing the principal sources of revenue, the function or
purpose for which expenditures were made, together with a consolidated
statement showing similar information for all funds; also a statement showing
the balance in each fund at the beginning of the fiscal year, plus the receipts,
minus the disbursements, and the balance on hand at the close of the fiscal
year after deducting outstanding warrants and vouchers. The comptroller
may request all agencies, the judiciary, the University of Hawaii until June
30, [2016,] 2017, the department of education, and the
legislature to provide such information as may be required for the preparation
of statements."
SECTION 5. Section 40-6, Hawaii Revised Statutes, is amended to read as follows:
"§40-6 Approval of
business and accounting forms. The comptroller shall determine the forms
required to adequately supply accounting and statistical data for the state
government. The comptroller shall require heads of departments and
establishments of the state government to submit proposed new forms or proposed
changes in current business and accounting forms for review and approval before
ordering the same printed; except that the University of Hawaii until June 30,
[2016,] 2017, and the department of education shall be subject to
this requirement only with respect to uniform business and accounting forms of
statewide use in the State's accounting system. All standard state forms shall
be classified, numbered, and standardized in design, dimensions, color, and
grade of paper and recorded in a catalogue of accounting and statistical forms
by the comptroller."
SECTION 6. Section 40-58, Hawaii Revised Statutes, is amended to read as follows:
"§40-58 In favor of
assignees. No assignment of moneys by a person to whom the State is
directly indebted shall be effective unless the assignment is first approved by
the comptroller or, in the case of the University of Hawaii until June 30, [2016,]
2017, and the department of education, by their respective chief
financial officers. The comptroller or the chief financial officers of the
University of Hawaii and the department of education may prescribe the form for
an assignment, and may approve the assignment within a reasonable time period
if, in their respective discretion, the rights or obligations of the State, the
University of Hawaii, or the department of education under any contract or
other undertaking or under any law, rule, or order by a competent authority
will not be prejudiced thereby. Upon approval of the assignment, the
comptroller or the respective chief financial officers of the University of
Hawaii and the department of education shall draw a warrant payable to the
assignee. Except as to contracts encumbered by the comptroller, the University
of Hawaii, or the department of education, each expending agency, upon
notification of the comptroller's approval of an assignment, shall prepare a
claim for payment in accordance with the terms of the assignment."
SECTION 7. Section 40-81, Hawaii Revised Statutes, is amended to read as follows:
"§40-81 Report by
agencies receiving special moneys. All state officers, departments,
boards, bureaus, commissions, or agencies collecting or receiving any moneys
not required by law to be deposited in the state treasury shall report to the
comptroller all receipts and disbursements on account thereof for each
quarterly period of the calendar year not later than the fifteenth day
following the end of each quarterly period on such forms and under such rules
as may be prescribed by the comptroller; provided that with respect to all
moneys held outside the state treasury by the University of Hawaii until June
30, [2016,] 2017, or the department of education pursuant to the
authority granted to the university and the department of education by this
chapter, the University of Hawaii and the department of education shall report
to the comptroller all transactions for each quarterly period not later than
the fifteenth day following the end of each quarterly period on such forms and
under such rules as may be prescribed by the comptroller."
PART II
SECTION 8. Section 304A-1144, Hawaii Revised Statutes, is repealed.
["[§304A-1144]
Annual report. The office of the vice president for community
colleges shall prepare an annual report to the legislature on the status of the
program. This annual report shall include data on the development of the
construction academy curriculum and content, teaching standards throughout the
system, and overall achievement. The annual report shall be submitted no
later than twenty days prior to the convening of each regular legislative
session."]
PART III
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2525; provided that part I shall take effect on June 29, 2016.
Report Title:
University of Hawaii; Accounting and Financial Management System; Community Colleges; Construction Academy Annual Report; Repealed
Description:
Extends to June 30, 2017, the University of Hawaii's exemption from accounting and financial management system requirements that are applicable to state agencies. Repeals requirement that the University of Hawaii prepare an annual report regarding the construction academy. (SB2971 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.