DEPARTMENT OF BUDGET AND FINANCE
Amendments to Chapter 6-62
Hawaii Administrative Rules
April 15, 1994
SUMMARY
1. General
Order No. 5 is repealed.
2. §6-62-2
is amended.
3. A new subchapter
7, comprised of §§6-62-42 to 6‑62-51, is added.
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DEPARTMENT OF BUDGET AND FINANCE
State of Hawaii Public
Utilities Commission General Order No. 5, Uniform System of Accounts for Motor
Carriers, REPEALED [ Sep 03 1994
]
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§6-62-2
§6-62-2 Definitions. ***
“Gross revenues” or “regulated gross revenues” means:
(1) All
revenues from every service in connection with or incidental to the safety, comfort,
or convenience of persons transported and the receipt, carriage, and delivery
of the persons and their baggage; and
(2) All
revenues from every service in connection with or incidental to the
transportation of property, including in particular its receipt, delivery,
elevation, transfer, carriage, ventilation, refrigeration, icing, dunnage,
storage in transit, handling, and its consolidation for the purposes of
forwarding within the State.
***
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SUBCHAPTER 7
FINANCIAL REPORTING
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§6-62-42
§6-62-42 Annual
financial reports. (a) Each motor
carrier shall file an annual financial report of its operations for the previous
calendar year by April 30 of each year, in a form prescribed by the commission.
(b) A carrier
that has passenger and property carrier authority shall file separate annual
financial reports for its passenger and property carrier operations.
(c) The
commission may require a carrier to file additional information to supplement
the financial report.
(d) A motor
carrier failing to file annual financial reports as required by this section
may be assessed a penalty up to the sum of one-sixteenth of one per cent of the
gross revenues of the motor carrier’s business during the preceding calendar
year, if the failure is less than one month.
(e) An
additional one-sixteenth of one per cent of the gross revenues of the motor
carrier’s business during the preceding calendar year may be assessed for each
additional month or fraction thereof during which the failure to file
continues.
(f) In no
event shall the total civil penalty be less than $50. [Eff Sep 03 1994 ] (Auth: HRS §§271-9,
271-25, 271-27(h)) (Imp: HRS §§271-9,
271‑25, 271-27(h))
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§6-62-43
§6-62-43 Verification
of financial reports. The annual
financial report shall be verified by an owner, officer, general partner, or
authorized agent of the motor carrier. [Eff
Sep 03 1994 ] (Auth: HRS §§271-9, 271-25) (Imp: HRS §§271-9, 271-25)
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§6-62-44
§6-62-44 Carriers
with extended operating authority.
A motor carrier with extended operating authority on other islands
within the State shall include in its regulated gross revenues, the revenues
from regulated operations on all islands, including such revenues of operating
entities that are wholly-owned subsidiaries of the carrier. The carrier shall file its income statements
and supporting schedules separately for each island. If the carrier is required to file a balance sheet, it may file a
balance sheet and supporting schedules on a consolidated basis. [Eff Sep 03 1994 ] (Auth: HRS
§271-9) (Imp: HRS §§271-9, 271-25)
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§6-62-45
§6-62-45 Supporting
documentation. (a) The receipt of
revenues shall be supported by invoices, delivery receipts, and other similar
records.
(b) Expenditures
shall be supported by vouchers, payrolls, receipted bills, canceled checks,
receipts for petty cash payments, or other evidence of the expenditures
incurred. Disbursements from working or
petty cash funds shall, wherever practicable, be supported by receipts from the
persons furnishing the services or materials.
If it is not practicable to obtain receipts, the record must describe
the disbursements in sufficient detail to identify the amount, the nature, and
the reason for the disbursement.
(c) This section
shall apply to revenues and expenditures of a carrier’s regulated operations,
and also, where required to be reported, to revenues and expenditures of its
nonregulated operations.
[Eff Sep 03 1994 ] (Auth: HRS §§271-9,
271‑25) (Imp: HRS §§271-9,
271-25)
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§6-62-46
§6-62-46 Method
of accounting. For annual financial
reporting purposes, all revenues and expenses (including revenues and expenses
of nonregulated operations, where required to be reported) shall be reported on
the accrual basis, unless otherwise authorized by the commission.
[Eff Sep 03 1994 ] (Auth: HRS §§271-9,
271-25) (Imp: HRS §§271-9, 271-25)
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§6-62-47
§6-62-47 Accounting
period. (a) Any motor carrier that
keeps its books on a fiscal year basis shall notify the commission of its
accounting period. Otherwise, books of
accounts shall be kept on a calendar year basis.
(b) Although
a motor carrier may keep its books on a fiscal year basis, it shall file its
annual financial report on a calendar year basis.
[Eff Sep 03 1994 ] (Auth: HRS §§271-9,
271-25) (Imp: HRS §§271-9, 271-25)
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§6-62-48
§6-62-48 Accounting
standards. Books of
accounts shall be kept in
accordance with generally accepted accounting principles (GAAP), Financial
Accounting Standards Board Statement No. 71 for regulated industries, and
applicable commission requirements. [Eff
Sep 03 1994 ] (Auth: HRS §271-9) (Imp: HRS §§271-1, 271-9)
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§6-62-49
§6-62-49 Allocation
of common expenses. A motor carrier
that is also engaged in nonregulated business shall allocate its common
expenses between its regulated and nonregulated businesses. The allocation shall be made on the basis of
time studies, usage, per cent of revenues, or any other generally accepted
method of allocation. [Eff Sep 03 1994 ]
(Auth: HRS §271-9) (Imp: HRS
§§271-1, 271-9)
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§6-62-50
§6-62-50 Depreciation. In computing
depreciation for financial
report purposes, the straight-line method shall be employed. The service lives of equipment, salvage
value, type, class of service, and all other pertinent factors shall be in
accordance with the Internal Revenue Code of 1954, as amended, sections
167-168. [Eff Sep 03 1994 ]
(Auth: HRS §271-9) (Imp: HRS
§271-9)
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§6-62-51
§6-62-51 Preservation
of records. (a) All ledgers,
journals, and other books of accounts, including supporting records, documents,
and memoranda, shall be readily accessible to the commission for its review.
(b) No books
of accounts and supporting data may be maintained outside the State without
prior commission approval. If any of
these materials are maintained outside the State, with or without the
commission’s approval, the motor carrier shall reimburse the commission for all
actual costs incurred by the commission in conducting an audit outside the
State.
(c) A motor
carrier shall not destroy any books, memoranda, and any other documents that
support entries to its accounts, except as provided for by this section or by
the commission.
(d) The
following records shall be permanently preserved:
(1) General and subsidiary ledgers,
journals, journal entries, and bank statements for checking and savings
accounts;
(2) Certificates
or abstracts of title and accounting records that pertain to the acquisition of
fixed assets used in the motor carrier’s regulated operations and that contain
the date of acquisition, purchase price, and accumulated
depreciation;
and
(3) Capital
stock records, minutes of directors’, stockholders’, and other corporate
meetings.
(c) All other
records, memoranda, documents, papers, and correspondence shall be preserved
for a period of not less than five years or for a longer period as may be
ordered by other lawful authority. [Eff Sep 03 1994 ] (Auth: HRS §§271-9,
271‑25) (Imp: HRS §§271-9,
271-25)
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DEPARTMENT OF BUDGET AND FINANCE
Amendments to chapter 6-62, Hawaii
Administrative Rules, on the Summary Page dated April 15, 1994, were adopted on
April 15, 1994, following public hearings held on February 14, 15, 16, 17, 22,
23, 24, and 28, 1994, after public notice was given in the
Honolulu Advertiser, Maui News, Hawaii Tribune-Herald, Ltd., and The
Garden Island, on January 14, 1994.
These amendments shall take effect
ten days after filing with the Office of the Lieutenant Governor.
|s| Barbara K. Stanton
________________________
Director
of Finance
|s| Yukio Naito
____________________________
YUKIO
NAITO
Chairperson
APPROVED
AS TO FORM:
|s| Katherine C.
Desmarias
_________________________
|s| John Waihee
________________________
JOHN
WAIHEE
Governor
State
of Hawaii
Date:
AUG 24 1994
____________________________