STAND. COM. REP. NO.  773

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 540

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 540, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to improve the accounting and fiscal management system at the University of Hawaii by, among other things:

(1)  Requiring the Board of Regents of the University of Hawaii to submit to the Legislature before the end of each fiscal quarter a program performance report showing a comparison of actual revenues and expenditures versus budgeted revenues and expenditures;

(2)  Extending sunset provisions regarding account control and financial management by the Comptroller to 2017, including the University's authorization to use a separate accounting system that is tailored to University operations; and

(3)  Requiring the Auditor to examine whether the University of Hawaii's exemption from the Comptroller's account control and financial management should be made permanent, with a report from the Auditor to be submitted to the Legislature.

The Department of Education and the University of Hawaii System commented on this measure.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 540, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair