COM 0989.000 2020-2022 - Laserfiche WebLink

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Chapter 1 Introduction Objectives The purpose of this audit is to examine the past due collections process, to determine if the division is conducting activities effectively, equitably, and adhering to applicable governance. Our audit was designed to answer the following questions: 1. What metrics does RPT use to determine whether performance goals are being met? 2. Is RPT adhering to Chapter 19 of the Hawai'i County Code and other required governance? 3. Is RPT's internal control framework and standard operating procedures sufficient to ensure program success? Scope Our evaluation consisted of: • Ten (10) fiscal years of taxable collections and outstanding receivables from FY2012 to FY2021 • Delinquent receivables data 1976 to 2021 (46 years) • The audit engagement began on December 3, 2021. Fieldwork started December 15, 2021. The audit was suspended in January 2022 and resumed in April 2022. The audit was completed in July 2022 Methodology To achieve our objectives, we conducted the following activities: • Interviewed management and staff • Reviewed Chapter 19 of the Hawaii County Code, Hague Convention (International Treaty), management narratives, and sample documents related to the revenue cycle processes • Observed staff conducting collection activity • Benchmarked industry best practices and other municipalities • Tested RPT data: Accounts Receivables and Aged Parcel Detail Reports Compiled and Analyzed • 316 Report - Aged Parcel Detail Report: Detail information, including taxes, penalty, and interest for any parcel that has outstanding amounts due as of the business date requested. The report was run using parameters showing delinquencies in 2020 and prior. The data set contained 133,877 rows. (Delinquencies from the first cycle of the tax year 2021 were omitted). o This report includes each billing cycle, for each parcel, in the data set 61