Bill Text: HI SB332 | 2021 | Regular Session | Amended
Bill Title: Relating To Preaudit Payments.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-07-07 - Act 203, on 07/06/2021 (Gov. Msg. No. 1331). [SB332 Detail]
Download: Hawaii-2021-SB332-Amended.html
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THE SENATE |
S.B. NO. |
332 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PREAUDIT PAYMENTS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the government would
be able to provide services more effectively, efficiently, and expeditiously by
updating the preaudit process for proposed payments to meet the demands of the public.
Currently the comptroller is required to
preaudit all proposed payments of $10,000 or more to determine the propriety of
the expenditures and its compliance with the operative and relevant executive orders
and rules.
Accordingly, the purpose of this Act is to amend
the powers and duties of the comptroller to reduce the preaudit requirements of
all proposed payments to expenditures by:
(1) Increasing the minimum dollar amount of payments to be preaudited from $10,000 to $100,000; and
(2) Allowing rather than requiring the comptroller to preaudit proposed payments of expenditures below $100,000.
SECTION 2. Section 40-1, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) With respect to the executive branch, except
the University of Hawaii and the department of education, the comptroller shall
have complete supervision of all accounts.
The comptroller may preaudit all proposed payments to determine the priority
of expenditures and compliance with executive orders and rules that may be in effect.
The comptroller shall preaudit all
proposed payments of [$10,000] $100,000 or more to determine the
propriety of expenditures and compliance with executive orders and rules that
may be in effect. When necessary, the
comptroller shall withhold approval of any payment. Whenever approval is withheld, the department
or agency concerned shall be promptly notified.
With respect to the University of Hawaii and the department of
education, the comptroller shall issue warrants for the release of funds for
the operating costs of the university or the department of education, as
applicable, in amounts and at times mutually agreed upon by the governor or
director of finance and the university or department of education, as
applicable; provided that:
(1) The amounts released shall not exceed the allotment ceilings for the respective funding sources of the university's or the department of education's appropriations established by the governor for an allotment period pursuant to section 37-34; and
(2) The comptroller may issue warrants as an advance from the state treasury to the University of Hawaii and the department of education to establish a checking account and provide working capital in amounts and at times mutually agreed upon by the governor or director of finance and the University of Hawaii and the department of education.
The University of Hawaii and the department of education shall preaudit all proposed payments of $10,000 or more and shall preaudit samples of the population of proposed payments of less than $10,000; provided that the sample size comprises at least five per cent of the population, and is of a size that the chief financial officers of the University of Hawaii and the department of education, as applicable, determine appropriate, to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules. The University of Hawaii and the department of education shall make disbursements for operating expenses from the amounts released by the comptroller and maintain records and documents necessary to support those disbursements at times mutually agreed upon by the university president or the superintendent of education, as applicable, and the comptroller; provided that when requested by the university or the department of education, the comptroller shall make all disbursements for the university or the department of education, as applicable, subject to available allotment. Funds released pursuant to this section shall be deposited by the university or the department of education, as applicable, in accordance with the provisions applicable to the director of finance by chapter 38. Any interest earned on the deposit of funds released pursuant to this section shall be deposited in the state treasury at the end of each fiscal year."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Comptroller; Powers And Duties; Preaudit
Description:
Increases the minimum dollar amount of payments required to be preaudited. Allows rather than requires the comptroller to preaudit all proposed payments of expenditures. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
