STAND. COM. REP. NO. 596

Honolulu, Hawaii

RE:    S.B. No. 1331

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1331, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose and intent of this measure is to require the University of Hawaii to report projected cash flow and related estimates for certain special and revolving funds whose unencumbered cash balances or cash deficits exceed a specified percentage of the previous fiscal year's expenditures.

     This measure also appropriates funds to the University of Hawaii for the completion and implementation of the of the Kuali financial system.

     Your Committee received comments in support of this measure from Howard Todo, Vice President for Budget and Finance/Chief Financial Officer, University of Hawaii System.

     Your Committee finds that this measure will result in improved efficiencies, greater accountability, and improved financial and decision-support reporting for stakeholders at all levels.

     Your Committee has amended this measure by:

(1)  Changing the cash balance or deficit amounts and expenditure percentages to unspecified amounts and percentages;

(2)  Changing the effective date to July 1, 2050, in order to facilitate continued discussion on the matter; and

(3)  Making technical nonsubstantive changes for the purposes of clarity and style.

     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 S.B. No. 1331, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1331, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair