STAND. COM. REP. NO. 9

Honolulu, Hawaii

RE:    S.B. No. 857

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Education, to which was referred S.B. No. 857 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to continue to allow the Department of Education to preaudit payments of $10,000 or more and a sampling of at least five percent of payments of less than $10,000 to determine the propriety of expenditures and ensure compliance with executive orders and rules until June 30, 2020.

     Your Committee received testimony in support of this measure from the Department of Education.

     Your Committee finds that the Department of Education's personnel resources would be overburdened if tasked with preauditing every transaction processed by the Department of Education, and that the existing practice of preauditing payments over $10,000 and a sampling of at least five percent of payments under $10,000 has been a manageable alternative for the Department of Education.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 857 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 Education,

____________________________

MICHELLE N. KIDANI, Chair