STAND. COM. REP. NO. 1007

Honolulu, Hawaii

RE:    H.B. No. 849

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Higher Education, to which was referred H.B. No. 849, H.D. 1, 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 restore the University of Hawai‘i's authority to maintain a separate accounting and financial management system that is compatible with the State's accounting and financial system.

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

     Your Committee finds that the University of Hawai‘i updated its accounting system to the Kuali Financial System on July 1, 2012, which serves the University's reporting, regulatory, and accreditation requirements and allows for compatibility with external partners.  The Kuali Financial System is a comprehensive financial software package that was developed, and is supported by, a consortium of universities that use an open source and partner enhanced process.  Your Committee also finds that since the implementation of the Kuali Financial System, the University continues to provide bi-monthly payroll feeds to the Department of Accounting and General Services, in addition to other required financial reports.  Your Committee notes that the University of Hawai‘i's authorization to maintain a separate accounting and financial management system ended on June 30, 2016, and this measure will expressly affirm the University's authority to maintain this separate accounting system.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2017; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 849, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 849, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

KAIALI'I KAHELE, Chair