001one aloha good afternoon thank you for joining us for this informational briefing the community on education wednesday march 3rd and we have our guest with us today to talk about the in the informational briefing we have representatives of the c writer production to talk about their commercial commercialism efforts and we also have representatives from the hawaii academia group and i will turn it oh i will let you know that joining us virtually are members of my committee senator vice versa by committee senator donna mercado kim also senator favela is joining us virtually as well as senator donovan de la cruz and i would like to welcome the representatives that are from sea writer production that joining us today miss anne mahi as well as miss candy suiso i believe representative kanohar is with us too
002and also welcoming senator drew kanuho from our committee thank you for joining us senator miss mahi would you like to start at msuiso thank you for joining us you're muted aloha good afternoon and thank you so much for um giving us this time senator hidani senator young kim and the members of your education committee we really are very excited to share some of the things that we've been working on over two years and present it to you and hopefully move forward we have i want to start off by also wishing all you also mohini on right now happy girls day so with that i believe we have a presentation it's a visual presentation and um if we could just start on that i think the best way is just to visually walk you through what's
003been happening over two years ago as a result of quite a few of our programs in the department of education that have been doing cte programs project-based learning type of projects working together and actually generating income we thought if we could do some kind of a commercialism bill where we could allow these programs to actually bring in money and the money that they make come right back into the programs sort of like i would say more of a social enterprise type of model uh an enterprise that's educational so we came up with an edgy prize came up with that one more a word so senate bill 2051 in house bill 2048 was introduced and passed two years ago to and it was an amendment to allow for the doe to establish a commercial enterprise within
004the career technology education academies in the department of education schools next slide relating to education it was introduced in past and this would this permits individual department of education schools and cte academies or programs to engage in commercialism allows the department of education schools to engage in commercial enterprise or we created as i said earlier edu prizes and it includes the sale of goods and services produced or for an individual school which is tied to a career pathway in academy or program and a good example i'd like to use i want to say back in the early 20s we were just our program was just beginning to do a lot of traveling going nationally to compete and learn to see what some of the best and brightest across the nation were doing and we always
005wanted to have matching t-shirts and sweatshirts and so we contacted campbell high school who i thought at the time was a really good example of an edu prize even though it was just part of the program troy tsuyoka was i believe the graphic arts teacher and we would go to him every year for these t-shirts because we really wanted to support his program the kids would design our uh our logo they would design everything and then they would print it really quickly with it they would turn it around within a week very competent and very business-like and so they um you know that was just an example and i know fast forward to 2020 you know we have our program cirad productions which is very successful in um in actually modeling what choi soyoka did
006and bringing in a lot of income where the kids are learning during the classroom how to create these logo items and then actually printing it themselves and then turning it around and going to um farmers markets and online sales it's become very successful and then one more example i want to use is waipahu high school has a very state of the art culinary program i know all of us on this thread right now has been to some of the nicest most expensive um fundraisers with some of the best chefs in hawaii with some of the best food but i think if we look at what the students create at waipahu under elaine matsuo they certainly can compete and that's another example of taking an edu prize within the school to have them continue to create
007money and feed it back into the program so tied to career pathway academy or program so the next slide again is um is uh the bill allows the doe schools to expand these cte programs to allow for the safe products and services to deposit these funds right back into the school so everything comes right back all the money they make comes right back into the program and we really feel this is essential as there's a need to utilize the money to support continuation and improvement of the commercial energy prices within each of these cte programs and i think this is so important even now especially as we begin to open schools with a lot of these budget cuts it's what better way than to have these programs begin to just create their own funding to
008be brought right back into their programs and i'm going to turn it over to ann okay thank you kathy that really takes us on our journey i think what was really important is that we were um limited to being able to have scales and to be able to make a profit because based on the current uh i guess rules and rates for the department any of our state programs would only make enough to break even and so that was one of the things that we had talked about you know how can we make sure that we're providing opportunities for a real world type of environment for learning and that these students would be able to really understand and feel like true entrepreneurs in a real world situation and not just we can only break even
009and not be able to produce services or goods that could actually be utilized to expand their program as well as you know even thinking out of the box you know providing um uh part-time work for these students uh after hours and during weekends and and actually having sales out in the public or within a commercial type enterprise and being able to take that money and feeding it back into the school program so that's the that was the dream for all of us as we started out uh and we thanked uh the legislature for the leading in this and passing that amendment to the commercialism bill law so our goals are next slide are simply to be able to support the development of these cpa enterprise enterprises and and you know like i said again it
010really is about giving our students real world experiences we want them to learn how to be entrepreneurs we want them to be able to innovate and create we want them to have that experience of running a business and really be able to work together with community and businesses to really start to prepare them for the workforce we want them to be able to move forward whether it's getting into a job uh situation or getting into post-secondary to hone their skills even better so these are the goals that we talked about we talked about in our committee work over the i think it was a school year next so again this is kind of what we've been talking about and enterprise is an educational enterprise we have um our we want our students to be ready
011to be independent not only as learners but as those that really see a future for themselves we had us i went to visit waianae high school and there was a young man and he was um he was in the special education program very quiet but he started taking um people to visit you know and it would explain every part of that marine science oval farm and when we asked him what do you want to be he says you know what i'm learning so much i mean he knew a lot more than than a lot of us did who um you know when went to college and he could explain everything he said my dream is to be able to go out in the community and create a business like this for myself and my family
012and that's what this is all about so how can the department of education support enterprises we started a committee like i said again in 2019 we met regularly under assistant superintendent rodney luke i was there we had principals from the hawaii academy who were interested in participating and designing so it was lisa hoagie from waianae high school keith hayashi from waipahu and we also had john henry lee from campbell high school and we were there trying to figure out how what kinds of things we needed to have in place in order to truly implement an energy prize in a school we did have the department of education cte branch there troy was there with other staff members and we had an opportunity to start to think about so what is it that we need to
013be able to do and and how can we move forward so we said we need to continue with that enterprise committee we need to ensure that there is a statewide consistency you know um once we create this implementation plan we need it to be consistent so that it can be implemented statewide in all high schools that have academies we want to be sure that as we create the implementation guidelines through the pilot that the department of education will then be able to take that and start looking at creating more definite administrative rules and regulations we also want uh to be sure that we're working with a group of high schools who have really invested in developing academies in their schools and these three principles that sat in our in our committee are three very dedicated
014principals who have implemented academies and given opportunities for their students to create innovate and to learn about the world of work next so these are some of the things that we said we would need to have we need to have business and marketing plan and this should be part of the cpe program development we also um and that's not going to be too hard to do okay i mean we just want to be sure it's integrated so that it's part of a strategic plan for the state as well as in the um in the schools through the cte program the next thing would be really how do we create a foundational financial management system because this is really different from what the state schools can currently do right now everything is really about purchase orders
015and um you know uh payments you know in a very antiquated way so our question was in order for us to really be um thinking in the future you know uh how can we actually do a website where people can see the products order the products uh we process they pay like foursquare shopify paypal these are all things new to me because i'm in the old generation but you know when you think about everybody else this is how they operate so how do we start to update the department's um ability to create those kinds of systems for us um we have programs that are ready and we mentioned them before like the sea writer productions with graphic arts you know and um video digital media we have the waianae high school marine science learning center
016with volvo development and then we have the culinary arts that candy talked about as well as the national natural resources academy so this is really we're closed we just need to continue to move this with everybody's health so next slide is the hobby principle of waianae high school lisa aloha can you hear me yes yes thank you for joining us lisa really appreciate an opportunity to share with you the progress we've made and what we feel we still need to work on together in order to really operationalize the commercialism bill at the school level one of the biggest challenges we have is um and this is not the department's fault the department was is set up to do other things and we're asking it to do something out of it valley wick so we're asking
017the department to figure out ways to support the commercialism bill by developing these um ordering processing payment and delivery systems many of which are online what happens is that we currently have a system in which um we can do fundraising and it's very part it's very explicit and there are checks and balances that protect the staff and protect the students as well as people purchasing so that there's no loss of funds etc etc we're asking to go a step further and we don't have systems that help us to do that yet so i'll give you an example on the next slide in order for our students to truly begin to get a sense of entrepreneurship we need to give them those opportunities in the school setting and what happens is that within a school setting
018what we believe is that we can allow them to make mistakes in a safe way in a way that does not um cause any personal disruption into their own lives and sets them up for the real world type of situations that they may encounter if they are become indeed entrepreneurs because there's nothing our state needs more than more small businesses we need to be able to support that and we would like to be able to do that through this ability to engage in commercialism students will make decisions about operating costs marketing they'll do surveys they will succeed and they will fail and that's okay because that is what learning is all about and it's better that they learn in school and not learn with their families money or real loans in the real world next
019slide the biggest challenge for us at the school level is managing the volume and the particulars of a business the fiduciary components of a business while still operating under the department of education currently if we use either the state fms system or the local school kev system there's a very rigorous and appropriate system of writing creos getting approval principal has to sign all of them they go through multiple hands they get checked and cross-checked but that system is going to be too cumbersome and not conducive to the real-time turnaround needed by these cte businesses businesses will fail if we don't have the underlying system that allows them to operate like a business and um we look forward to i know the department has been working on this it's a not an easy solution um that
020they are having to figure out how to address but this is exactly what we need to be working on in order to move forward and i'm not sure who's next and um so we're going to have um principal keith hayashi go back to the other slide if you will um yes keith all right good afternoon everyone good afternoon senators um schools are a um maybe one slide back i think uh thank you hawaii academy schools are a conglomeration of 21 high schools across the state that uh implement the career academy design and through that design what we really focus on is providing authentic learning opportunities for our students and uh so this we the whole academy school really looks forward to continuing uh to work with the cte office at the state office um to
021establish these a system for all of this to occur and speaking to some of the principles at the hawaii academy schools um they are looking as handshare in areas of culinary looking at business and entrepreneurship and designing uh different kinds of projects uh also in natural resources growing and perhaps even selling meeting meeting health requirements uh selling uh food and vegetables and such so uh the schools are really uh focused on providing these kinds of opportunities for our students and some of the areas that on the bottom part of that slide uh the students will make decisions on when we look at that those are really real world type of experiences that our students will be engaged in so the hawaii academy schools definitely are fully full support okay thank you thank you um principal
022hayashi if we can go to that the next slide after that so this is the proposal that we'd like to put up front um this is what we need to do in order to move forward um we need the okay so the first thing is we we ask that we be allowed to have a pilot so that we can really start to develop you know positive policy regulations and procedures and that the pilot would actually be working through the hawaii academy schools and that we would look at two or three high schools that would be willing to work together because they hold regular meetings to really start to develop on the the plan for this implementation looking at how we can be consistent how we can keep everyone safe how we can actually mitigate any
023kind of liabilities and create that financial system that would actually update what the department currently have so that we can we can actually take this energy prize and be fully ready the second thing is that we really do need the support of the cte state program we need their guidance to support and thank you they've always been at our meetings they also attend the hawaii academy's meeting so they're very up to date on the kinds of work that's being done we need to have them work with us on creating that final that enterprise handbook that we would develop through the pilot if they can help us really start looking at any kind of initial initial funding through the cte programs funds strategies and resources create partnerships and connections with uh commercial enterprises and business resources
024being that um you know that uh center for a single point of contact where we can actually have um you know a source a resource for um checking with high schools checking to see who's interested and then i think the last part is also the coordination of that professional development that should continue through the hawaii academy's program i mean consortium but the thing about the hawaii academies consortium is that it's never closed keith and the rest of the principals have always opened it up to any high school that's interested in joining and they provide collegial support and they they were able to get some funding to get i think um a consultant who is well versed in creating academies to actually work with them in their regular meetings so i think that this is a
025perfect opportunity to now say this is where we need to go with the development of an edu prize and you know we we really do appreciate this opportunity to share and we hope that we can have this happen and we really again mahalo nui because when we work together no task is is impossible and we we say inaudible the reason we do this is because the children belong to all of us and we have to hold hands and create that net so that no one falls through that net so mahalo nui we really do appreciate this opportunity thank you thank you very much for that wonderful presentation members do you guys have any questions before we go on to the does presentation any questions i wanted to ask um anyone on the panel there if
026they could name some of the schools that are participating now in this hawaii academy's pilot schools uh let's see the hawaii academy schools include um let's see on oahu we have the six schools in the leeward district so uh nanakuli waianae of campbell kapolei we also have our ayah high school castle high school kailua high school um um high school on the big island uh recently joining us was kohala kealakehe let's see maui on maui and you know what i probably missed a couple of them but uh the whole academy school span um mostly all items well that's pretty uh impressive list i thought there were going to be three or four schools that you need and i think you rattled off about uh 15 or 20. the total those are the total number of
027schools i think the schools though that are looking to establish a pilot are maybe just a couple of schools they're all at different places uh through our academy journey so uh those students those schools that are ready to embark in this um maybe two or three as pilots thank you for that uh principal hayashi um the other question i had is that um on that slide that has number five and six operating and edu prize includes and a system number six a system for managing the money needs to be identified and in place who did you guys uh think would be uh someone who could do the number six managing the money needs to be identified and in place and i think you talked about a consultant is that something the consultant would do or
028something that you think can be done within the doe yeah no the consultant was actually working to create the academy structure and infrastructure with these these schools that are in the hawaii academies what we're talking about here we were working with brian hallett finally show up at our meetings and and listen very carefully about you know how can we possibly create this different type of money system that could help us because you know he knew the limitations of what the department could do so right before uh the pandemic it was really having these conversations about so how can we update the department to allow these pilot schools to be able to have um this kind of accounting system you know like even a point of sale kind of system you know an ordering online ordering
029and processing systems so that's where we left off you know we're just having that okay you know brian how can we do this how can we make it happen and he started working on it so it would be interesting to see where the update is from the department and his work thank you appreciate that so members if there are no questions further questions i'm going to go on and ask superintendent kishimoto and her doe team to go ahead with their presentation thank you for joining us superintendent thank you chair kadani and vaishya kim i'm gonna just speak for a few minutes and i'm gonna turn this over to dan miyamoto and the team i am going into a department of health uh meeting so i apologize these meetings are back to back but there's a
030couple of things i want to say one is i think everyone who's on candy nice to see you it's been a while uh since i've been on your own seeing your work directly uh as well as an mahi ki fayashi and and lisa have been leaders in this work along with other principals lisa now in her work as a complex area superintendent i want to mention under our 2030 promise plan which has is is still in action we haven't had a whole lot of public conversation in the middle of this pandemic about the promise plan but if you go through the deliverables you can see that a lot of our work is focused on um on on innovation on uh empowerment school design and under the innovation section uh the there is a section uh
031dedicated specifically to commercial enterprise this is an area where we know we have to move into we've got to update our financial structure to support this our policy structure we need to get back to the legislature if there are any legislative matters as we move through this process of doing our work differently uh we have them motor on the on the um on the quad today and um and he's in charge of cte cte is an area we can look at tapping into uh to look at next level support to move this work forward uh and so uh i i want to emphasize that that is uh in fact possible and also the team that uh keith hayashi has included me in the past on the hawaii academics coalition meetings to show me what the
032principals are designing because we really want the principles at the school level designing all of this innovation work and appreciate those principles doing that work that that really is the right place to advance this work and so i just want to say that the department is fully supportive of moving this forward we've been unfortunately impacted by this pandemic for a year there's a lot that we had to kind of shift our focus but this is this is the future the the now and the future of department as we continue to talk about powerful school design models and we have the right thought leaders some of which you see here and many others who have been working on this i'm going to hand this over to dan i believe dan was going to share a couple
033of slides to just show you what we uh where we are in our work from the department level thank you dr kishimoto good afternoon senator gitani senator and members of the senate education company and your beauty um he's not muted we can hear him but it's kind of soft is there a way you can turn up the volume okay let me take off my mask here testing how's this now better thank you okay uh once again good afternoon senator kidani senator mcconnell kim and the members of the senate education committee department has present uh put together a presentation to provide an update on the implementation of the commercial enterprise department of education at 164. so if we can have the slides be brought up on screen thank you very much the presentation is in three
034parts the first part will be an overview of the work the department has been engaged around commercial enterprises second part will be an update on where we currently are and the third part will be the next steps to further the work on commercial enterprises next slide please this is an overview of the work department has been engaged in the form of a timeline and some of this has been already covered in the previous presentation so i just like to highlight some of the updates in this timeline one of them is out of the work group that was mentioned earlier two legislative legislative bills were created sb2263 and sb eight seven 2487 were introduced in the 2020 legislative session sb2263 would have amended hrs 302 8-420 and added commercial enterprise to that statute and for sb2487
035it would have amended the 3028-448 to make commercial enterprise activities exempt from chapter 76 78 89 103 and 103d which has to do with civil service employment contracts and the procurement code and also out of that work group was the implementation of a pilot project with a high school and that pre-work was done in january and in march covet came into play which interrupted the work but the department still was able to complete a draft guidance for the commercial enterprises that was done in july can we go to the next slide please so it's the status of where we are now and so we have the draft guidance it still needs to be finalized but we anticipate it will be ready for implementation and next school year we also identified an account where commercial enterprise
036revenue could be held and the department is just beginning work on looking at an electronic transaction system which would be able to support commercial enterprises in the future and so as a summary of where we are now next slide please however we know there's still more work to do and for the immediate next steps in fourth quarter next quarter we plan to identify a high school to implement a pilot project for commercial enterprises we also again with the guidance finalize the guidance distribute it next school year hold informational sessions and we anticipate possible several commercial enterprise projects by the end of next year and what we realize from the work group conversations is that commercial enterprises will vary in degree some very complex and so we know there will be challenges but we are committed
037to look at the resources put in the structures necessary so that schools can implement commercial enterprises as they envision and then complete some presentation on updates thank you is that the end of the presentation dan yes that is okay uh members are there any questions then uh on your slide that says where where we are now the account that's been identified to use for revenue generate generated from the commercial enterprises says the department is seeking approval for electronic customer transactions can you explain that who are we um waiting approval from and how long have we been waiting yeah so i can defer to brian howard respond to that oh okay brian hi good afternoon senator um brian hello cfo the the account that's being referred to would be the school level agriculture and industrial pursuits
038account that was uh renamed a couple years ago it was previously referred to as lahainaluda boarding facilities fund so that's that's our account s 301 authorized in statute by 302 a 420 um so which allows all net profits arising from industrial pursuits to to be deposited into this account so that's that's where the money can flow through now in regards to the online processing component of it we only very recently it's just been a few weeks now i've been working with a vendor who is standing up credit card processing for one of our schools waipahu community school for adults um it's been incredibly productive quick work um we we were amazed at how quickly it's it's coming together um we we approached that not not quite as a pilot project but but as sort of
039a test project and and we're looking to to work with wyatt i um and i was just i just mentioned that to diesel just yesterday that that would be they would be our next um his project to work on what's very promising about this uh vendor is that that paypal processing is is part of the the array of servicing that they can support now i sorry but we are in the midst of a major replacement of our financial management systems so for the time being uh it wouldn't be electronic deposit into our accounts we we're not gonna we're still in the process of building that system it'll be handled manually by check and as we once we get pasco live uh in july with our new system we will then be looking for to make
040the connections um so that it would be uh more seamless or integrated so that's that's just a quick update on where we are with with electronic processing credit card processing uh payments um as far as the approval comment um the the vendor that we're using it's is has a long standing pre-existing contract with the state and it involves an approval process that goes through a committee that's associated with ets so i think that's that's why we've been able to move so quickly because it's an existing solution so brian while you are doing the pilot project at with waianae high school and it will not be an electronic process as you explained and uh so where will the checks be deposited so so we will the payment would be online and that would be electronic it
041would be able to accept credit cards and we've been informed that paypal is an option that can be used and we would like to engage um in the in the coming weeks with the waianae folks and get moving on that the statement of work and whatnot it's the the monthly deposits of the proceeds would be coming in in the form of a check from the credit card processor and be deposited into our accounts in the future you know we can we can set it up with uh through through the automated clearing house and and electronic processing straight into our financial management system and when is that pilot program starting well like i'm sorry i use the wrong term it's not really a pilot it's just a further expansion or a roll out of of online
042processing and as soon as we get set with waipahu community school for adults which should be within within days so we think within a couple of weeks we should be starting conversations or being able to start conversations with with the folks out in waianae and seeing how we can connect that vendor with with their needs so the um you know the process of how the school receives the funding and how often they have to turn it into the department of education that's all been set up already and actually waipahu high school is a a great model because they have their own credit union on on campus so anyway we're looking at monthly monthly deposits um and and you know what's exciting is is there's possibility there's there's kind of two components to this there's the
043storefront component and and i don't know what exactly and how i would or why and i would want to set up a storefront online if that's what they want or they just want the ability to do credit card processing or paypal payments but it's it's we would want to look at those two possible options and with that vendor those are both within the wheelhouse of that vendor so has there been a curriculum put forward or written for for this process um you know to um so that the other uh schools that are interested in in doing this can jump on board or who who does who's going to do the training and who's going to uh you know put up the guidelines is that with the doe or is it with candy and ann and
044the group that has started this edu prize information well since my mic is is live i jump in and say i'm looking at the office of fiscal services role is to provide the infrastructure in order for these processes to happen i would like to look to cte um to set up the curriculum associated with that yes it would be the expansion of the guidance document draft that we already have and it would be somewhat of a living document continuing to be expanded as these new structures get into place and providing information for schools to access that dan do you have a copy of that uh curriculum or draft or what whatever you're calling it yes we can yeah that we could have i'd appreciate that thank you um so the implementation program that you say
045is for fall and winter of 2021 is prob it looks like it's starting sooner than that is that am i correct are you guys ready to go brian dan yes uh so our fourth quarter we would like to identify his high school to get started with as a pilot uh basically to kick off where we left off in january january of 2020 2021 yes earlier in uh so in 2020 we had started a pilot and then we were going to pick that up pick up where we left off again starting fourth quarter next quarter so um in in the rollout you know um principal hayashi rattled off i don't know i couldn't keep up with him but i want to say 15 20 of schools that are already participating so um have they been given
046any update or information to get them ready to um you know be ready to get on board once you guys are ready to receive uh everything that they want to be doing no not at this time we did not provide all of the academy schools the same information we're anticipating next school year the guidance would be finalized and at that time would make that available to all the high schools members does anyone have questions i know that when we heard the original bill that senator kim had some concerns um senator kim do you still have questions related to i i think it was the payment or or somebody other than students receiving pay for this i know it's been uh like three years or so but that was uh one of the things and you're
047muted donna sorry chair you have a pretty good memory but i'd like to do whatever must have been that vaccination i had did the opposite to me it got my money um i think the presentation was was pretty good very informative um how are you folks um overseeing to make sure and to make checks to see that you know the payments and everything is going where it's supposed to do you do like random checks or um i mean you know just on a day-to-day basis i know you're not going to be overlooking everything but at some point you have to make some kind of checks right i know that was one of the conversations that really was drawn out in the work group and post work group conversation is the balance of monitoring and security
048accountability versus flexibility and freedom and expediting the financial process and that was some of what took a while until we came to the determination of this one account that we could use but i think brian helen can expand on that more yeah i i just lead in by saying this is something the department has wanted to support it it's aligned with the promise plan um it's the conversation we started a couple years ago and as diesa had mentioned earlier about two types of methods there's the state system our financial management system which would rely on on the account that i use that profit i'm sorry the the agriculture and industrial pursuits if using that account which would run through our financial management systems all the checks and balances associated with that system would be in
049play the alternative was mentioned is our student activity funds which are funds held outside the state treasury which are slightly more flexible or there is more flexibility and those are like i said held outside of the state treasury that's the alternative but i don't think that the current statute that authorizes that student activity fund is is broad enough to to fully capture i think the eventual build out of these commercial enterprises as the statute currently exists being that that statute which is 302 a 1130 speaks about those funds are to be used for department may assess and collect special fees and charges from students for co-curricular activities i think what we're talking about is is becoming a co-curricular activity these commercial enterprises it's aligned or supporting curricular curriculum um but that's a little narrow because
050we're only talking about money collected or charged against students and i think what these programs are looking to do is broader than that and seeking to be able to to collect funds from from outside just students so that may be an area that that could use some some adjustment as we go down this path broadening of that authorization to use the local school accounts which which are more flexible than having to run funding through our financial management system as far as when you disperse the funds out of the account how many people have access to do that through financial management system it should be one log on per school there might be two or three front office staff in schools that may be sharing accounts or access but it's it's there should be one access
051one log on okay what have you guys done to uh to eliminate the possibility or the temptation for funds being embezzled i mean we've had that situation happen in past where certain people that were in charge were siphoning out some monies and not being not finding out these kinds of things until down the road i mean have those safeguards been put into place i think those those safeguards and procedures were already in place whether they were followed or not there's been an issue an internal audit has been very active within in going through and reviewing the schools you're talking about dual controls and and signing and reviewing um the records before signing off on payments as lisa was mentioning about the principal having to sign off on the purchase orders and that's a big part
052of our dual control okay and that's why the original question was there are like checks every now and then just to because like you said you know the rules and and procedures are there for whether people are following it so is there some kind of ways that there's some random random checks that they are in fact following what they're supposed to be doing and that's real life that's real life as well right i mean that happens in any business that to you know try to eliminate any kind of temptation for people that's handling the monies that they're not going to be able to siphon it off in any way kind of you know um point fingers at anybody obviously but i think those are real life lessons that students need to learn right and and
053i think that that online electronic payments will actually help make reduce risk i think when we're taking and handling cash that that is a huge worry right so so we're moving in in the right direction but i would i would point out we do have supports not only between the the sauces at the schools and the principals but also our complex area business managers our casuals and as i mentioned earlier internal audit functions to collide and correct and review and audit these local school balances and school activities okay thank you thank you for that brian and i'm i will await you know the draft from dan because i think in following up on senator kemp's concern you know now with what financial institutions are able to do uh you know electronically is that you know
054some of you may get notices every time some you know um a check or you know a payment something is removed from your from your account and i think um something should be in place whereas the people who are actually um authorized to to to do the transaction should be separate from the person that actually gets the the accounting or the notification that a transaction has occurred so there are at least two people in the know all the time that something is going out of the account so that's just a recommendation but i look forward to see uh dan's draft um i wanted to ask um either ann or candy if you're still on are have you guys reviewed the draft or have you guys made recommendations or any um amendments to the draft you're
055um i would like to see a copy of the is that the the guidance document yes i would like to also um we could if i could see a copy um and work with you dan on that i i'm not familiar with that i did not know what existed okay well you know um dan and and brian the draft was done in july 2020 and that was eight months ago so i think um i'd appreciate it if they were more um i guess energy involved in trying to keep everybody on board and keep this rolling because uh you know the original bill has been i guess four years in the making and this is a real um very impressive uh curriculum for for our young people and um you know just going through this uh
056the slides etc i'm uh actually um very impressed with you know the how far this has come since i i first heard about it and since we introduced the bill but you know i know i know we've you know been through the pandemic and we're still in it but but still that's a long time if there is a working group out there that's trying to help move this along uh they should be included um and and receiving the information that you guys have already prepared then so i would appreciate it if you get copies out to whoever the working group is and i don't know who who they all are so that we can continue to move forward on this um and yes and i guess at that point we'll be able to know whether
057or not uh you're you're working uh uh your guidance draft includes um the recommendations that were made um you know by the working group back you know i don't know how long ago it was you know and we had a um the recommendations from the senate bills 2263 and 2487 that were introduced to address the working groups considerations and um i'm not sure if those were in there because i haven't seen it either and and i wouldn't know any way without uh you know having uh candy and anne you know look at it and address it too so the sooner the better dan thank you thank you we will follow up on that immediately i appreciate that so um so with with all of the um the information and the the number of schools involved
058in this where where are we going next i mean i guess the draft is an important the guidance draft is an important document for us to be reviewing and moving forward because if you want to i think your timeline your timeline ends at october 2020 on this uh review that you did dance so i'm not sure if anything's happened after that but if we are going to make uh this ready for uh the next school year that's just a few months away so i wanted to know what what are the plans and is there um a timeline on that as as to when this is given to the schools to help them roll out the curriculum yes we can create a new timeline um including the pilot for next quarter and then all of the
059follow-up actions that's going to be attached to that including the distribution of the guidance document in its finalized form and we can share that with you definitely so this question is probably uh for for brian as well as is dan and uh ann and candy you can jump in if you have any comments but um knowing that you have this many schools involved and it seems it's rolling along and just waiting for written guidance which was done eight months ago but they haven't seen yet is it possible to allow schools that are ready to implement a pilot to to do so and use what they find as startup to influence the the review whether it's over the summer or you know getting ready for that that rollout because i'm sure you're still going to have
060to tweak it but i'm sitting i'm thinking the schools are all there waiting to do something but not knowing uh you know if they have the approval so if you know you may have guidance but you know without the does stamp it's hard for them to move forward but are you okay with the school the these uh edu prizes moving forward in a way that they can they can start learning rather than put a halt to everything and not knowing if they can start or not yeah so one of the i know the basic requirements for all of the various models was the financial component of where these revenues could be stored and since we identified that uh but again as um as highlight has mentioned that's within the doe financial system however schools with
061activities that are ready to engage in the commercial enterprise aspect of it and if that account is meets their needs to get started with where they are then that could be implemented fairly quickly comments brian um if if setting up through our existing financial management systems it they could they could set that up today that's not a problem um if looking to use the local school account um you folks might want to be looking at house bill 1298 when it comes over the the non-general fund and possibly amending or expanding the use of the local school account language that that's that section 302 a one one three zero um that that would be pro i think that'd be a good vehicle to to make that kind of amendment in uh and and we could work
062with with um and or anyone uh to craft some language that would work okay members any further questions any uh closing comments from candy and and miss mahi please okay you know again thank you oh she's frozen sir and and you're frozen um okay i'll jump in and i think she's i think she's still talking we'll let her get through no you go ahead no i just wanted to thank thank everybody i think this is the first time we've been able to get our legislators and cte as well as the principals to rock star principles that i think the schools are going to lead i think it's really important right now i can't emphasize enough how critical we're when a small window of opportunity to make this happen quickly with already what's been started what's
063in place and as we open schools because we're going to open schools and we all know it's going to be very different so this is the opportunity to get really creative out of the box and move our kids into the 21st century they're going to be learning differently and especially with these budget cuts if this is the opportunity to get our kids to create their own income to bring it right back into their program we can't miss the vote on this so you know thank you for everybody who's been working really hard on this i know it's not easy um dan your position up there with cte is i i'm sure has been a lot and through the pandemic but thank you for what you and um brian is at i don't yeah brian has
064have been doing and um you know i'm here to help if you need any assistance um i'm retired but i am working probably harder than i have while i was working so please contact me but thank you senator kidani especially senator morkano kim for leading this charge we really appreciate this we got to get this done let's do this thank you thank you i you know i'm um very very enthused about this program and um i think not too long ago we talked about financial literacy and all of that and i think this would really help to bring that to all of the students in the schools even if they're not in any one of these um school hawaii academy pilots that that you're doing with these uh edu prize programs but just the fact
065that this will help them to become literate you know financially literate you know this gives them their resources to help their their classmates and it gives the school a resource already because you will have something to work with so i do appreciate the the diligence you candy and anne and all the rest of you principal hayashi disa i think this is something that is really really needed for our students and i really appreciate the hard work that you guys have done brian and dan and superintendent who i know is not there now but thank you very much uh for continuing your work and i look forward to getting the documents and having the working group with candian and review it and get back to you as soon as possible so that we can move forward
066and be ready to go with it in the the first quarter of the next school year thank you members no further uh questions this hearing is adjourned mahalo you