STAND. COM. REP. NO. 3327

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2163

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 2163, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO COMPTROLLER SUPERVISION OF ACCOUNTS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to require the University of Hawaii to preaudit only those proposed payments made by the University that are $10,000 or more in value.

 

     Your Committee received testimony in support of this measure from the University of Hawaii.

 

     Your Committee finds that the University of Hawaii audit system involves the review of all financial transactions for legality, propriety, conformity to policies and rules, and the adequacy of supporting documentation.  This system has become increasingly difficult to maintain due to staffing and resource shortages, and late penalty time constraints.

 

     This measure will allow the University to redesign its preaudit system to use resources more effectively with risk-based sampling techniques to provide a more efficient and productive audit system.  The measure will also provide parity with the Department of Accounting and General Service's policy of auditing only payments of $10,000 or more.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2163, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

ROSALYN H. BAKER, Chair