Bill Text: HI SB1028 | 2018 | Regular Session | Introduced
Bill Title: Relating To The University Of Hawaii Accounting And Financial Management System.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [SB1028 Detail]
Download: Hawaii-2018-SB1028-Introduced.html
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THE SENATE |
S.B. NO. |
1028 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE UNIVERSITY OF HAWAII ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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, with authorization from the legislature and after significant commitment of human and financial resources, 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 the 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 use of the Kuali Financial System has benefited and served the needs of the university without in any way negatively impacting the State or its financial reporting.
June 30, 2016, was the sunset date for the authorization of the University of Hawaii to maintain a separate accounting and financial management system.
The purpose of this Act is to affirm the express 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,] 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 the department of education, the comptroller shall make all disbursements for the university or the department of education, as applicable, subject to available allotment. Funds released pursuant to this section shall be deposited by the university or the 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,] 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], 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,] 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,] 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,] 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. "
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST
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Report Title:
University of Hawaii; Accounting and Financial Management System
Description:
Reinstates 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.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
