THE SENATE

S.C.R. NO.

123

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO CONDUCT A study ON EMPLOYEE OVERPAYMENT within the university of hawaii system.

 

WHEREAS, it has come to the attention of the Legislature that Kapiolani Community College (KCC) is continuing to experience the problem of paying full salary to employees who should not be receiving full salary because they owe the State moneys for past salary overpayments; and

WHEREAS, typically, if a KCC employee has exhausted sick and vacation leave and stays home from work in what should be leave without pay, three state agencies need to take steps to ensure that the employee does not receive payment for that time period: KCC must inform the University of Hawaii (UH) payroll administration of this so that UH can make the appropriate payroll changes, and the UH payroll administration must in turn inform the Department of Accounting and General Services to make the proper payroll adjustment; and

WHEREAS, if one or more of these agencies does not perform these duties in a timely manner, the employee receives payment to which the employee is not entitled, which is an overpayment that triggers statutory procedures under section 78-12, Hawaii Revised Statutes; and

WHEREAS, KCC is apparently unable to recoup all of the overpayments and continues to make full salary payments to employees who owe the State for past salary overpayments, and who should be subject to salary adjustments for the overpayments due to the State; and

WHEREAS, the state budget is facing a fiscal shortfall and the Legislature seeks to maintain their fiduciary responsibility to all taxpayers; and

WHEREAS, accounting practices that perpetuate inaccurate financial reporting are detrimental to the fiscal well being of the State, and need to be corrected; and

WHEREAS, the three state agencies involved in this issue are aware of the problem but do not seem to be able to resolve it; and

WHEREAS, the UH financial management office said in April 2003 that they were working on this issue, but with no resolution to date; and

WHEREAS, the problem of collection of alleged indebtedness was addressed in the Session Laws of Hawaii, Regular Session of 1996, 2000, and 2001, but the State is still unable to significantly reduce the balance of overpayments; and

WHEREAS, this problem is not limited to KCC, and that as of December 31, 2003, the total balance owed the State from all state employees for this type of overpayment stood at $2,470,000; and

WHEREAS, this is a systemic problem that saps the strength of state agencies in general; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, the House of Representatives concurring, that the Legislative Reference Bureau is requested to study and report on the employee salary overpayments within the University of Hawaii system including all of the four year campuses and community colleges, specifically KCC; and

BE IT FURTHER RESOLVED that the Bureau determine where the problem lies with regard to salary overpayment, how best to address a prompt reclamation of overpayments, and make recommendations for improving the system so that overpayments are not made in the first place; and

BE IT FURTHER RESOLVED that KCC, UH, and DAGS are requested to provide all necessary assistance to the Bureau for the purposes of this report; and

BE IT FURTHER RESOLVED that the Bureau is requested to report its findings to the Legislature no later than twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chancellor of Kapiolani Community College, President of the University of

Hawaii, Comptroller, and the Acting Director of the Legislative Reference Bureau.

 

 

 

OFFERED BY:

_____________________________

Report Title:

Study; University of Hawaii Salary Overpayments