DOE Reports

Removes auditor from responsibility for DOE fiscal accountability
reports; requires DOE to submit school-by-school expenditure
reports to the legislature and the governor to include:
instruction, instructional support, operations, other
commitments, and leadership expenses.  (SD2)

THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that under current law,
 2 the auditor is required to report department of education
 3 expenditures to the legislature, pursuant to section
 4 302A-1004(b), Hawaii Revised Statutes (HRS).  In Report No. 98-5,
 5 Fiscal Accountability Audit of the Department of Education:  The
 6 Public and the Schools Need to Know the True Costs of Education,
 7 the auditor stated that the statutorily defined role of the
 8 auditor does not include reporting other department's
 9 expenditures.  By requiring the auditor to perform this task, the
10 statute absolves the department of education of the
11 responsibility for reporting its own expenditure information to
12 the legislature.  Indeed, the department has declined to report
13 school-by-school expenditures, as required by Act 218, Session
14 Laws of Hawaii 1995, for this reason.
15      The legislature further finds that accurate and organized
16 educational expenditure reporting is crucial for accountability
17 and school-based decision making.  Despite its importance, the
18 auditor has noted that in response to requests for better
19 reporting, the department of education has stated that acquiring

Page 2                                                     550
                                     S.B. NO.           S.D. 2

 1 such information can sometimes be too costly.
 2      The legislature believes that given the sophistication of
 3 today's technology, timely and accurate reporting is not outside
 4 the purview of either the department's abilities or its budget.
 5 As noted by the auditor in Report No. 98-5, computer software
 6 such as In$ite can provide extensive information about a school
 7 system in a wide array of readable reports, without great costs.
 8 It can do so with relatively minimal requirements, and can
 9 produce results that far exceed the current department reports in
10 accuracy or clarity.
11      The purpose of this Act is to return the responsibility of
12 expenditure reporting for the department of education from the
13 auditor to the department, and to require reports containing
14 specific major functions and sub-functions, which are at least
15 equal to, if not better than, those provided through In$ite
16 software.
17      SECTION 2.  Section 302A-1004, Hawaii Revised Statutes, is
18 amended by amending subsection (b) to read as follows:
19      "(b)  The department shall provide electronic access to
20 computer-based financial management, student information, and
21 other information systems to the legislature and the auditor.
22 The [auditor] department shall submit to the legislature and to
23 the governor, at least twenty days prior to the convening of each

Page 3                                                     550
                                     S.B. NO.           S.D. 2

 1 legislative session, a [fiscal accountability] school-by-school
 2 expenditure report that includes but is not limited to the
 3 following:
 4      (1)  The financial analysis of expenditures by the
 5           department with respect to the following areas:
 6          [(A)  Administration;
 7           (B)  Facilities and operations;
 8           (C)  Teacher support and development;
 9           (D)  Pupil support;
10           (E)  Instructional support; and
11           (F)  Classroom instruction; and]
12           (A)  Instruction, including face-to-face teaching, and
13                classroom materials;
14           (B)  Instructional support, including pupil, teacher,
15                and program support;
16           (C)  Operations, including non-instructional pupil
17                services, facilities, and business services;
18           (D)  Other commitments, including contingencies,
19                capital improvement projects, out-of-district
20                obligations, and legal obligations; and
21           (E)  Leadership, including school management, program
22                and operations management, and district
23                management; and

Page 4                                                     550
                                     S.B. NO.           S.D. 2

 1      (2)  The measures of accuracy, efficiency, and productivity
 2           of the department, districts, and schools in delivering
 3           resources to the classroom and the student."
 4      SECTION 3.  Statutory material to be repealed is bracketed.
 5 New statutory material is underscored.
 6      SECTION 4.  This Act shall take effect upon its approval.