HOUSE OF REPRESENTATIVES

H.B. NO.

318

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to auditing the department of education.

 

 

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

 


SECTION 1.  The legislature finds that recently, the department of education became the subject of public outcry and local news when certain school bus routes were eliminated.  Further, a recent auditor's report flatly stated that the department "has lost control of its student transportation program".  Moreover, this report is just one of several unfavorable audits of various aspects of the department.

The legislature further finds that the department of education remains under intense public scrutiny, and the public has a reasonable basis to be concerned about the department's operations, including its finances and management.  The program costs of the department of education comprise more than fifteen per cent of the executive branch's total program costs for fiscal biennium 2013-2015.  Thus, a financial and management audit of the administration of the department of education is long overdue.

     The purpose of this Act is to mandate a periodic financial and management audit of the administration of the department of education in order to assist the department, the board of education, the legislature, and the executive branch in making needed changes to improve the department.

SECTION 2.  Chapter 23, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§23-    Periodic audits of the administration of the department of education.  (a)  The auditor shall submit to the legislature no later than twenty days before the convening of the 2016 regular session and every         subsequent regular session thereafter a report of a completed audit as prescribed by the requirements of this section; provided that if the auditor completes and reports on an audit in any intervening year, the auditor shall not be required to complete and report on a subsequent audit until the        year after the completion of that audit.

     (b)  A financial and management audit conducted pursuant to this section shall focus on the administration of the department of education, beginning with complex area superintendents and going up to all higher levels of authority, including the superintendent of education.

     (c)  In order to maximize the efficient use of the auditor's resources, an audit conducted pursuant to this section need not examine operations at the school level, unless the auditor determines it is necessary to properly audit the administration of the department.

     (d)  The audit shall, at a minimum, examine in depth the effectiveness and efficiency of the department's administrative operations, including its:

     (1)  Organization and management; and

     (2)  Efficacy of fiscal operations, especially with respect to spending and accountability.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Auditor; Department of Education; Report to Legislature

 

Description:

Mandates a periodic financial and management audit of the administration of the department of education.

 

 

 

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