STAND. COM. REP. NO.  776-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2115

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committees on Education and Higher Education, to which was referred S.B. No. 2115, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PREAUDITS FOR PROPOSED PAYMENTS,"

beg leave to report as follows:

     The purpose of this bill is to:

     (1)  Require the Department of Education (DOE) to conduct proposed payment preaudits only on payments of $10,000 or more;

     (2)  Require the University of Hawaii (UH) and DOE to preaudit a sample population of at least an unspecified percentage of proposed payments of less than $10,000; and

     (3)  Extend the fiscal autonomy previously granted to UH and DOE until June 30, 2015.

     DOE testified in support of this bill.

     Your Committees have amended this bill by:

     (1)  Specifying that for UH's and DOE's preaudits of sample populations for proposed payments of less than $10,000, the sample size shall be at least five percent of the population; and

     (2)  Extending until June 30, 2020, the date until which DOE shall have autonomous authority over its accounting system.

     As affirmed by the records of votes of the members of your Committees on Education and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2115, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2115, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Education and Higher Education,

____________________________ JERRY L. CHANG, Chair

____________________________ ROY TAKUMI, Chair