Comptroller; Powers and Duties

HRS div. 1, tit. 5, ch. 40, pt. I

in effect

HRS §40-1 Comptroller to supervise accounts, etc

40-1. Comptroller to supervise accounts, etc (a) The comptroller shall be the general accountant of the State and shall cause to be recorded every receipt and disbursement of money made to, by, or through the treasury. The comptroller shall have the power to withhold any disbursement for which no appropriation has been made or which would cause a specific appropriation to be exceeded. (b) With respect to the executive branch, except the University of Hawaii and the department of education, the comptroller shall have complete supervision of all accounts. The comptroller shall preaudit all proposed payments of $10,000 or more to determine the propriety of expenditures and compliance with executive orders and rules that may be in effect. When necessary, the comptroller shall withhold approval of any payment. Whenever approval is withheld, the department or agency concerned shall be promptly notified. With respect to the University of Hawaii and the department of education, the comptroller shall issue warrants for the release of funds for the operating costs of the university or the department of education, as applicable, in amounts and at times mutually agreed upon by the governor or director of finance and the university or department of education, as applicable; provided that: (1) The amounts released shall not exceed the allotment ceilings for the respective funding sources of the university's or the department of education's appropriations established by the governor for an allotment period pursuant to section 37-34; and (2) The comptroller may issue warrants as an advance from the state treasury to the University of Hawaii and the department of education to establish a checking account and provide working capital in amounts and at times mutually agreed upon by the governor or director of finance and the University of Hawaii and the department of education. The University of Hawaii and the department of education shall preaudit all proposed payments of $10,000 or more and shall preaudit samples of the population of proposed payments of less than $10,000; provided that the sample size comprises at least five per cent of the population, and is of a size that the chief financial officers of the University of Hawaii and the department of education, as applicable, determine appropriate, to determine the propriety of expenditures and compliance with applicable laws, executive orders, and rules. The University of Hawaii and the department of education shall make disbursements for operating expenses from the amounts released by the comptroller and maintain records and documents necessary to support those disbursements at times mutually agreed upon by the university president or the superintendent of education, as applicable, and the comptroller; provided that when requested by the university or the department of education, the comptroller shall make all disbursements for the university or the department of education, as applicable, subject to available allotment. Funds released pursuant to this section shall be deposited by the university or the department of education, as applicable, in accordance with the provisions applicable to the director of finance by chapter 38. Any interest earned on the deposit of funds released pursuant to this section shall be deposited in the state treasury at the end of each fiscal year. (c) With respect to the judiciary and the legislature, the comptroller shall make available to the judiciary and the legislature the total amount appropriated to each, except that the judiciary and the legislature may request the comptroller's services in maintaining custody of the amount appropriated to each and in making payments therefrom. When such services are requested, the comptroller shall make all disbursements requested by the judiciary or the legislature, but shall not make any disbursement for which no appropriation has been made or which would cause a specific appropriation to be exceeded. (d) Any financial transaction recorded may be inspected by the public. [L 1898, c 39, §9; RL 1925, §1435; RL 1935, §562; RL 1945, §1564; RL 1955, §34-13; am L 1957, c 152, §1; HRS §40-1; am L 1974, c 159, §4; am L 1986, c 321, §§4, 12; am L 1987, c 283, §69; am L 1989, c 371, §§4, 7; am L 1990, c 66, §1; am L 1991, c 163, §3; am L 1993, c 314, §§1, 2; am L Sp 1993, c 8, §22; am L 1996, c 231, §1; am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2004, c 58, §§3, 14; am L 2005, c 22, §50 and c 137, §1; am L 2006, c 161, §§1, 7 and c 306, §1; am L 2008, c 37, §1; am L Sp 2009, c 5, §12; am L 2010, c 102, §5, c 124, §6 as superseded by c 124, §10, and c 161, §3 as superseded by c 161, §5; am L 2015, c 44, §§1, 7 to 9; am L 2017, c 91, §2; am L 2021, c 203, §§2, 4]

HRS §40-2 Accounting systems and internal control; enforcing the use of and inspection of the same

40-2. Accounting systems and internal control; enforcing the use of and inspection of the same (a) The accounting system installed by the commission on public accountancy under Act 181, Session Laws of Hawaii 1923, as amended by Act 220, Session Laws of Hawaii 1925, for use in the offices of the comptroller, director of finance, departmental and agency services of the State, and the auditors, treasurers, departmental and agency services of the several counties shall be the accounting and reporting systems of the State and counties; provided that the University of Hawaii may install a different accounting system that shall be in conformity with generally accepted accounting principles as applied to colleges and universities; and provided further that the department of education may install a different accounting system that shall be in conformity to generally accepted accounting principles. The comptroller shall make such changes and modifications in the accounting system as shall from time to time appear to be in the best interest of the State and counties. (b) The departments and agencies of the executive branch are respectively charged with the responsibility to maintain an adequate system of internal control and with the further responsibility to see that the internal control system continues to function effectively as designed. The comptroller shall make such investigations and audits from time to time to enforce the use of the accounting system and internal control systems in the executive branch. (c) The judiciary, the legislature, and each county shall be responsible for the establishment and maintenance of its respective internal control system. [L 1898, c 39, §10; RL 1925, §1437; am L 1927, c 219, §3; RL 1935, §564; RL 1945, §1568; RL 1955, §34-17; am L 1957, c 152, §1; am L 1959, c 151, §1; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §40-2; am L 1974, c 159, §5; am L 1986, c 321, §§5, 12; am L 1987, c 283, §69; am L 1989, c 371, §7; am L 1991, c 163, §3; am L 1993, c 314, §2; am L Sp 1993, c 8, §22; am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2005, c 137, §1; am L 2006, c 161, §§2, 7; am L 2010, c 124, §2; am L 2015, c 44, §2; am L 2017, c 91, §3]

HRS §40-3 Bookkeeping

40-3. Bookkeeping The comptroller shall keep a complete set of double entry books in which the comptroller shall open or cause to be opened all government accounts, and for the several amounts as shown by the appropriation bill, or any other appropriation that may be at any time made by the legislature, and the comptroller shall record the comptroller's daily business transactions in detail therein. The comptroller shall also keep ledgers in which the comptroller shall open, arrange, and keep in a methodical and systematic manner the various state accounts so that the status and condition of all funds and appropriations, of all assets and liabilities, and for all income and expenditures of the State may at any time be ascertained and known; and further, the comptroller shall keep books to be known as the warrant registers showing the warrants drawn. The warrants are to be numbered from one up to the number required for the current fiscal period, and in the form as shown in section 40-52, and all such other auxiliary books as the comptroller may deem necessary for a correct and proper administration of the comptroller's office. The comptroller shall also keep on file in a convenient form for easy reference all original warrant vouchers for which warrants have been drawn by the comptroller, and the original warrant vouchers shall have endorsed thereon the number of the warrant by which they were paid, the date of the warrant, the appropriation to which they were debited, and the amount. [L 1898, c 39, §12; RL 1925, §1456; am L 1927, c 219, §8; RL 1935, §583; RL 1945, §1587; RL 1955, §34-37; am L 1957, c 152, §1; am L Sp 1959 1st, c 13, §2; HRS §40-3; am L 1975, c 71, §2; gen ch 1985]

HRS §40-4 Publication of statements

40-4. Publication of statements The comptroller shall prepare and submit to the governor, immediately following the close of each fiscal year, a statement of income and expenditure by funds, showing the principal sources of revenue, the function or purpose for which expenditures were made, together with a consolidated statement showing similar information for all funds; also a statement showing the balance in each fund at the beginning of the fiscal year, plus the receipts, minus the disbursements, and the balance on hand at the close of the fiscal year after deducting outstanding warrants and vouchers. The comptroller may request all agencies, the judiciary, the University of Hawaii, the department of education, and the legislature to provide such information as may be required for the preparation of statements. [L 1898, c 39, §19; RL 1925, §1431; am L 1927, c 219, §1; RL 1935, §556; RL 1945, §1558; RL 1955, §34-7; am L 1957, c 152, §1; HRS §40-4; am L 1974, c 159, §6; am L 1986, c 321, §§6, 12; am L 1987, c 283, §69; am L 1989, c 371, §7; am L 1991, c 163, §3; am L 1993, c 314, §2; am L Sp 1993, c 8, §22; am L 1996, c 231, §2; am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2004, c 58, §§4, 14; am L 2005, c 22, §50 and c 137, §1; am L 2006, c 161, §§3, 7 and c 306, §1; am L Sp 2009, c 5, §12; am L 2010, c 102, §5, and c 124, §7 as superseded by c 124, §11; am L 2015, c 44, §§3, 7, 8; am L 2017, c 91, §4]

HRS §40-5 Annual reports

40-5. Annual reports (a) The comptroller shall make an annual report to the governor and to the legislature. Beginning July 1, 2022, the comptroller shall include in the comptroller's annual report a list of all accounts closed by the comptroller during the immediately preceding fiscal year and a list of any accounts that remain open but are serving a lapsed program or initiative. (b) The comptroller, in the comptroller's yearly report, or in any special report that the comptroller thinks fit to make, may recommend any: (1) Plans and suggestions that the comptroller thinks fit or worthy of adoption for the better collection, custody, and payment of the public moneys and the more economical auditing and examining of the public accounts; and (2) Improvements in the mode of keeping these accounts that may at any time be brought to the comptroller's notice, and generally report upon all matters relating to public accounts. [L 1898, c 39, §20; RL 1925, §1432; RL 1935, §557; RL 1945, §1559; RL 1955, §34-8; am L 1957, c 152, §1; am L Sp 1959 1st, c 13, §2; HRS §40-5; gen ch 1985; am L 2021, c 202, §1]

HRS §40-6 Approval of business and accounting forms

40-6. Approval of business and accounting forms The comptroller shall determine the forms required to adequately supply accounting and statistical data for the state government. The comptroller shall require heads of departments and establishments of the state government to submit proposed new forms or proposed changes in current business and accounting forms for review and approval before ordering the same printed; except that the University of Hawaii and the department of education shall be subject to this requirement only with respect to uniform business and accounting forms of statewide use in the State's accounting system. All standard state forms shall be classified, numbered, and standardized in design, dimensions, color, and grade of paper and recorded in a catalogue of accounting and statistical forms by the comptroller. [L 1927, c 219, §2; RL 1935, §559; RL 1945, §1561; RL 1955, §34-10; am L 1957, c 152, §1; am L 1959, c 145, §1; HRS §40-6; am L 1986, c 321, §§7, 12; am L 1987, c 283, §69; am L 1989, c 371, §7; am L 1991, c 163, §3; am L 1993, c 314, §2; am L Sp 1993, c 8, §22; am L 1997, c 180, §1; am L 1998, c 115, §24; am L 2004, c 58, §§5, 14; am L 2005, c 22, §50 and c 137, §1; am L 2006, c 161, §§4, 7 and c 306, §1; am L Sp 2009, c 5, §12; am L 2010, c 102, §5, and c 124, §8 as superseded by c 124, §12; am L 2015, c 44, §§4, 7, 8; am L 2017, c 91, §5]

HRS §40-7 Count of money and securities in treasury

40-7. Count of money and securities in treasury The comptroller with the aid of the staff of the director of taxation and the director of finance shall count the money and securities in the state treasury once in each fiscal year, or such other times as the comptroller may deem necessary, provided that the scope of the examination shall be determined by the comptroller who shall use such auditing procedures as the comptroller deems necessary. The comptroller shall prepare, in triplicate, statements showing: (1) The amount of money actually in the treasury reconciled with the amount of money as shown by the comptroller's record. (2) The amount of securities owned by the State in the treasury reconciled with the amount of securities as shown by the comptroller's records. (3) The amount of the depository securities actually in the treasury as compared with the amount of cash deposited in the respective banks (depositories) provided that the sufficiency of these deposits shall not be made a part of the examination. [L 1927, c 219, pt of §16; RL 1935, §597; am L 1941, c 86, §1; RL 1945, §1601; RL 1955, §34-51; am L 1957, c 152, §1; am L 1959, c 145, §2; am L Sp 1959 2d, c 1, §§14, 16; am L 1963, c 114, §1; HRS §40-7; gen ch 1985]

HRS §40-8 Statements of count to be filed

40-8. Statements of count to be filed The comptroller shall file the original copy of the statement with the governor, duplicate with the director of finance, and the comptroller shall post and maintain the triplicate copy in the comptroller's office for at least one month thereafter. [L 1927, c 219, pt of §16; RL 1935, §598; RL 1945, §1602; RL 1955, §34-52; am L 1957, c 152, §1; am L 1959, c 145, §3; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §40-8; gen ch 1985]

HRS §40-9 Keeping of cash book

40-9. Keeping of cash book The director of finance shall keep in the director's office a cash book in which shall be entered up all sums received and paid out of the treasury on account of the several departments and bureaus of the State. [L 1898, c 39, §25; RL 1925, §1461; RL 1935, §587; RL 1945, §1591; RL 1955, §34-41; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; HRS §40-9; gen ch 1985]

HRS §40-11 Destruction of warrants, bonds and interest coupons

40-11. Destruction of warrants, bonds and interest coupons The director of finance and comptroller may destroy all warrants of the State which have been paid and bear any date three years prior to the date of destruction; provided that the warrants have been copied to an unalterable media or electronic storage form and the copies of the warrants are maintained for ten years from the date of the warrant. Otherwise, state warrants which have been paid cannot be destroyed until ten years from the date of the warrant. The director of finance and comptroller may destroy state bonds and interest coupons which have been paid and bear any date two years prior to the date of destruction. The director of finance and comptroller may appoint the fiscal agent for the bond issue to supervise and conduct the destruction of state bonds and interest coupons which have been paid and bear any date two years prior to the date of destruction. The fiscal agent so appointed shall submit reports as required by the director of finance and comptroller. State warrants, bonds, and interest coupons may be destroyed by burning, machine shredding, chemical disintegration, or any other method of disposal deemed acceptable to the director of finance and comptroller. [L 1947, c 147, §1; RL 1955, §34-54; am L 1957, c 152, §1; am L Sp 1959 2d, c 1, §14; am L 1961, c 38, §1; am L 1963, c 114, §1; HRS §40-11; am L 1972, c 5, §1; am L 1985, c 217, §1; am L 1998, c 54, §1]

HRS §40-12 Examination before destruction

40-12. Examination before destruction Before the warrants, bonds, and interest coupons are destroyed, the comptroller or the fiscal agent appointed pursuant to section 40-11 shall conduct such examination and investigation as is necessary to determine that the warrants to be destroyed bear any date ten years prior to the date of destruction and that the bonds and interest coupons bear any date two years prior to the date of destruction. [L 1947, c 147, §2; RL 1955, §34-55; am L 1957, c 152, §1; am L 1961, c 38, §2; HRS §40-12; am L 1972, c 5, §2]

HRS §40-13 Regulations

40-13. Regulations In conformity with chapter 91, the comptroller may make such regulations not inconsistent with this chapter as may be found necessary to carry out the object and provisions of this chapter, and for the more effectual record, check, and audit of all receipts and disbursements of public moneys. These regulations shall have the force and effect of law. [L 1898, c 39, §33; RL 1925, §1433; RL 1935, §558; RL 1945, §1560; RL 1955, §34-9; am L 1957, c 152, §1; HRS §40-13]

HRS §40-14 Office space management

40-14. Office space management (a) For state agencies occupying space in facilities managed by the department of accounting and general services or in non-state facilities, the comptroller shall: (1) Assess and determine office space requirements; (2) Initiate or cancel leases upon the determination of each agency's requirements; (3) Renegotiate existing leases; (4) Authorize office space allocation; and (5) Determine infrastructure requirements to allow employees to telework. (b) The comptroller shall reduce the total square footage of space leased by the State as of July 1, 2021, by ten per cent no later than July 1, 2026. (c) The comptroller shall submit a progress report on the implementation of this section to the legislature no later than twenty days prior to the convening of each regular session beginning in the regular session of 2022. [L 2021, c 219, §2]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0040/HRS_0040-.htmFetched: 11/10/2026