STAND. COM. REP. NO. 331

Honolulu, Hawaii

RE:    S.B. No. 1146

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Higher Education and the Arts, to which was referred S.B. No. 1146 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM,"

begs leave to report as follows:

     The purpose and intent of this measure is to extend the authority of the University of Hawaii System to maintain a separate accounting and financial management system that is compatible with the State of Hawaii's accounting and financial systems.

     Your Committee received testimony in support of this measure from the University of Hawaii System.

     Your Committee finds that the University of Hawaii has maintained a separate accounting system since 1986, which has been compatible with both State accounting system requirements and generally accepted accounting principles.  Your Committee further finds that the University of Hawaii has recently upgraded its accounting system through its participation in the Kuali Financial System consortium, a university-based financial management software that better meets the unique needs of university systems throughout the United States.

     Since the implementation of the Kuali Financial System, the University of Hawaii continues to provide bi-monthly payroll feeds to the Department of Accounting and General Services, in addition to routine and annual financial reports that are included in the State of Hawaiiꞌs Annual Consolidated Financial Statements.

     Your Committee further finds that if this measure is considered for passage by your Committee on Ways and Means, then your Committee would note that this measure contains citations to session laws from 1923 and 1925 which may require further verification.

     As affirmed by the record of votes of the members of your Committee on Higher Education and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1146 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Higher Education and the Arts,

____________________________

BRIAN T. TANIGUCHI, Chair