STAND. COM. REP. NO. 2332

Honolulu, Hawaii

RE:    S.B. No. 2939

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Higher Education and the Arts, to which was referred S.B. No. 2939 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 authorize the University of Hawaii to continue to maintain a separate accounting and financial management system that is compatible with the State accounting and financial management system.

     Your Committee received testimony in support of this measure from the University of Hawaii System and Department of Accounting and General Services.

     Your Committee finds that the University of Hawaii has maintained a separate accounting system since 1986 that has been compatible with State accounting system requirements and generally accepted accounting principles.  Your Committee further finds that the University recently upgraded its accounting system and is now using a university-based financial management software that was developed and is supported by a consortium of universities throughout the country.  The current financial system serves the unique needs of the University's reporting, regulatory, and accreditation requirements and allows for compatibility with external partners such as the Department of Accounting and General Services.  Your Committee finds that if the University's authority to implement its own accounting system is allowed to sunset, the University will have to return to an older financial management system that is designed for more traditional state government entities rather than university systems.  The language in this measure would prevent that process from taking place.

     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. 2939 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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BRIAN T. TANIGUCHI, Chair