Hawaii House Bill HB1071

Hawaii 2022 Regular Session

• Introduced: 1/27/21
• Refer: 2/1/21
• Report Pass: 2/16/21
• Refer: 2/16/21
• Report Pass: 3/5/21
• Engrossed: 3/9/21
• Refer: 3/11/21

Caption

Relating To The University Of Hawaii Board Of Regents Independent Audit Committee.

Impact

The bill seeks to delineate the roles and responsibilities of the independent audit committee more clearly, particularly regarding enterprise risk management. It emphasizes the committee's oversight of significant risks that the university might face and ensures compliance with nationally recognized best practices. Furthermore, the independent audit committee is exempt from certain open meeting laws during confidential discussions with auditors, which could enhance the effectiveness of its investigations into potential misconduct.

Summary

House Bill 1071 relates to the independent audit committee of the University of Hawaii's Board of Regents, aiming to establish more stringent requirements for this committee's composition and its operations. The bill implements changes to the Hawaii Revised Statutes, mandating that the independent audit committee consist of no less than three and no more than five members, with a specified requirement for at least one member possessing financial expertise. This change is designed to enhance the committee's oversight capabilities and ensure accountability in financial matters within the university's governance structure.

Sentiment

Overall, the sentiment around HB 1071 appears generally supportive among legislators focused on fiscal responsibility and accountability within educational institutions. The legislation is recognized as a step toward improving governance and transparency at the University of Hawaii. However, there may be concerns from those who advocate for broader public access to discussions surrounding potential financial irregularities, as the bill's exemptions from open meeting laws could spark debates about transparency and public trust.

Contention

Notable points of contention may arise from the balance between necessary audit confidentiality and the community's right to be informed about university financial matters. The provisions allowing confidential discussions, particularly those that could pertain to criminal conduct or significant risks, raise questions about the potential for lack of transparency in university operations. Educators and advocates may argue that while financial oversight is crucial, safeguarding transparency is equally important to maintain public trust in educational governance.