H.R. NO.













Requesting an audit of the department of education.




     WHEREAS, on October 6, 2018, the Department of Education's financial management system underwent a critical upgrade, which encountered complications and resulted in disruption of service, primarily relating to payments to vendors; and


     WHEREAS, as of October 25, 2018, the financial management system was partially restored, with the Department of Education implementing a plan to expedite payments in three priority areas:  school facilities, workers compensation claims, and special education services; and thereafter, phasing in access to all schools and offices to begin processing purchase orders and payments; and


     WHEREAS, the Department of Education stated that it had been working to upgrade its programs, including its financial management system, which was a complex initiative due in part to the age of some of the platforms; and


     WHEREAS, the department's financial management system is reportedly an old system that dates to the 1990s and is used to process purchase orders and a wide range of payments, such as school supplies, construction contracts, school-level consultants, and business travel; now, therefore,


     BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2019, that the Auditor is requested to conduct a financial audit of the financial management system of the Department of Education; and


     BE IT FURTHER RESOLVED that the audit is requested to cover the following issues:


     (1)  The current status of the financial system;

     (2)  Outdated features of the system; and


     (3)  Necessary upgrades to the system; and


     BE IT FURTHER RESOLVED that the Auditor is requested to submit a report of the Auditor's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2020; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor, Chairperson of the Board of Education, and Superintendent of Education.









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