REPORT TITLE:
Pre-audits


DESCRIPTION:
Authorizes the Comptroller to delegate the pre-audit
responsibility for proposed payments less than $1,000 to the
departments.  (HB2588 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2588
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
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      "(b)  With respect to the executive branch, except the
 
 4 University of Hawaii and the department of education, the
 
 5 comptroller shall have complete supervision of all accounts.  The
 
 6 comptroller shall preaudit all proposed payments of $10,000 or
 
 7 more to determine the propriety of expenditures and compliance
 
 8 with executive orders and rules that may be in effect.  The
 
 9 comptroller may delegate the preaudit responsibility for proposed
 
10 payment amounts below $1,000 to the executive branch departments
 
11 that shall then preaudit the proposed payments to determine the
 
12 propriety of expenditures and compliance with applicable laws,
 
13 executive orders, and rules that may be in effect.  When
 
14 necessary, the comptroller shall withhold approval of any
 
15 payment.  Whenever approval is withheld, the department or agency
 
16 concerned shall be promptly notified.  With respect to the
 
17 University of Hawaii and the department of education, the
 
18 comptroller shall issue warrants for the release of funds for the
 
19 operating costs of the university or the department of education,
 

 
Page 2                                                     2588
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 as applicable, in amounts and at times mutually agreed upon by
 
 2 the governor or director of finance and the university or
 
 3 department of education, as applicable; provided:
 
 4      (1)  The amounts released shall not exceed the allotment
 
 5           ceilings for the respective funding sources of the
 
 6           university's or the department of education's
 
 7           appropriations established by the governor for an
 
 8           allotment period pursuant to section 37-34; and
 
 9      (2)  The comptroller may issue warrants as an advance from
 
10           the state treasury to the University of Hawaii and the
 
11           department of education to establish a checking account
 
12           and provide working capital in amounts and at times
 
13           mutually agreed upon by the governor or director of
 
14           finance and the University of Hawaii and the department
 
15           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
 

 
Page 3                                                     2588
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 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 in 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.