REPORT TITLE:



DESCRIPTION:


 
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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO AUDIT AND ACCOUNTING.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      Section 1.  Section 40-1, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "40-1  Comptroller to supervise accounts, etc.
 
 4      (b)  With respect to the executive branch, except for the
 
 5 University of Hawaii and the department of education, the
 
 6 comptroller shall have complete supervision of all accounts.  The
 
 7 comptroller shall preaudit all proposed payments of $10,000 or
 
 8 more to determine the propriety of expenditures and compliance
 
 9 with executive orders and rules that may be in effect.  The
 
10 comptroller may delegate the preaudit responsibility for proposed
 
11 payment amounts below $1,000 to the executive branch departments.
 
12 The departments shall preaudit all proposed payments to determine
 
13 the propriety of expenditures and compliance with applicable
 
14 laws, executive orders and rules that may be in effect.  When
 
15 necessary, the comptroller shall withhold approval of any
 
16 payment.  Whenever approval is withheld, the department or agency
 
17 concerned shall be promptly notified.  With respect to the
 
18 University of Hawaii and the department of education, the
 
19 comptroller shall issue warrants for the release of funds for the
 

 
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 1 operating costs of the university or the department of education,
 
 2 as applicable, in amounts and at times mutually agreed upon by
 
 3 the governor or director of finance and the university or
 
 4 department of education, as applicable; provided:
 
 5      (1)  The amounts released shall not exceed the allotment
 
 6 ceilings for the respective funding sources of the university's
 
 7 or the department of education's appropriations established by
 
 8 the governor for an allotment period pursuant to section 37-34;
 
 9 and
 
10      (2)  The comptroller may issue warrants as an advance from
 
11 the state treasury to the University of Hawaii and the department
 
12 of education to establish a checking account and provide working
 
13 capital in amounts and at times mutually agreed upon by the
 
14 governor or director of finance and the University of Hawaii and
 
15 the department of education.
 
16      The University of Hawaii and the department of education
 
17 shall preaudit all proposed payments to determine the propriety
 
18 of expenditures and compliance with applicable laws, executive
 
19 orders, and rules as may be in effect.  The University of Hawaii
 
20 and the department of education shall make disbursements for
 
21 operating expenses from the amounts released by the comptroller
 
22 and maintain records and documents necessary to support those
 
23 disbursements at times mutually agreed upon by the university
 

 
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 1 president or the superintendent of education, as applicable, and
 
 2 the comptroller; provided that when requested by the university
 
 3 or department of education, the comptroller shall make all
 
 4 disbursements for the university or department of education, as
 
 5 applicable, subject to available allotment.  Funds released
 
 6 pursuant to this section shall be deposited by the university or
 
 7 department of education, as applicable, in accordance with the
 
 8 provisions applicable to the director of finance by chapter 38.
 
 9 Any interest earned on the deposit of funds released pursuant to
 
10 this section shall be deposited to the state treasury at the end
 
11 of each fiscal year."
 
12      Section 2.  New statutory material is underscored.
 
13      Section 3.  This Act shall take effect on July 1, 2000.
 
14 
 
15                       INTRODUCED BY:  ___________________________
 

 
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