S.R. NO.



S.D. 1










REQUESTING THE AUDITOR to evaluate the 2017 University of Hawaii internal audit of travel policy compliance for fiscal years 2015-2017 and report to the Legislature.



     WHEREAS, the responsibility to authorize and approve travel plans and expenses for University of Hawaii employees, students, and others who travel on approved university business is delegated to various executive authorities within the University, including Vice Presidents, Chancellors, Vice Chancellors, Deans, and Directors; and


     WHEREAS, the delegated authorities who approve travel are responsible for exercising discretion in determining that travel expenses are reasonable and appropriate; and


     WHEREAS, according to University of Hawaii Executive Policy 8.208, "[a]ll official travel should be prudently planned so that the best interests of the University are served at the most reasonable cost.  Any individual traveling on University business is expected to exercise the same economy that a practical person would exercise when traveling on personal business using personal funds.  Individuals shall not incur inappropriate or excessive expenses, or gain financially from the University travel.  Excessive costs or unjustified costs are not acceptable and will not be reimbursed"; and


     WHEREAS, there are concerns that University of Hawaii employees and other affiliated personnel are not following travel policies and procedures; and


     WHEREAS, there are also concerns as to how delegated authorities review and authorize the purpose of travel as benefitting the University of Hawaii; and


     WHEREAS, the University of Hawaii conducted an internal audit of travel policy compliance in fiscal year 2017, evaluating the frequency and severity of non-compliance in fiscal years 2015-2017, and the impact on University of Hawaii operations and financial results; and


     WHEREAS, while the University of Hawaii maintains its autonomy to evaluate and monitor internal compliance, the Legislature notes the institution still relies on a substantial amount of state general funds, and therefore it is justified for the Legislature to determine if the University of Hawaii is following best practices in internal audits and oversight of policies; now, therefore,


     BE IT RESOLVED by the Senate of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2019, that the Auditor is requested to evaluate the 2017 University of Hawaii internal audit of travel policy compliance for fiscal years 2015-2017 and report to the Legislature; and


     BE IT FURTHER RESOLVED that the Auditor's report to the Legislature is requested to include the following:


     (1)  Whether the internal audit was conducted in accordance with best practices;


     (2)  Whether the approved travel met the University of Hawaii Systemwide Policies and Procedures relating to travel;


     (3)  Whether additional investigation was warranted to obtain a full and fair evaluation of the level of non-compliance and the impact on University of Hawaii operations and finances;


     (4)  Whether the corrective action suggested in the internal audit was sufficient to curb any current and future non-compliance;


     (5)  The method used by the University of Hawaii administration to disseminate this information within the University;


     (6)  The status of the implementation of any corrective action; and


     (7)  Whether the sample size of the internal audit was sufficient; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Regents of the University of Hawaii, President of the University of Hawaii System, and State Auditor.

Report Title: 

University of Hawaii; Travel; Audit