Hawaii Senate Bill SB929

Hawaii 2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/27/23
• Report Pass: 2/14/23
• Refer: 2/14/23

Caption

Relating To The Department Of Transportation.

Impact

The implementation of SB929 will primarily impact state laws governing the financial operations of the Department of Transportation. By enforcing the auditor's recommendations, the Department will be required to conduct thorough reviews of internal controls and ensure compliance with federal regulations. This action is expected to lead to improved accountability in the handling of federal funds and to better safeguard against mismanagement or fraud. Moreover, the training of personnel on federal requirements aligns with best practices aimed at fostering transparency and efficacy in program management.

Summary

SB929 is a legislative act that aims to enhance the compliance and operational standards of the Department of Transportation's highways division following findings from a 2022 financial and compliance audit. The audit revealed significant deficiencies in internal controls over financial reporting and compliance, prompting the necessity for corrective actions to ensure that the division adheres to federal funding regulations and standards. The legislation mandates that the Department of Transportation implement the auditor's recommendations for better management and oversight of federal funds allocated for projects within the state. This includes revising internal controls and adopting stringent authentication requirements for information technology systems used by the highways division.

Contention

While the bill focuses on compliance and transparency, it may face scrutiny regarding the feasibility of its mandates. Critics may raise concerns about the potential burden this could place on the Department's operations, particularly in achieving the deadlines set for implementation and the adequacy of training for personnel. Additionally, stakeholders may discuss the balance between enhancing oversight and maintaining operational efficiency within the Department. As the bill represents a crucial step towards improved governance, the discussions surrounding its implementation will be vital in ensuring it meets its objectives.