COM 0423.003 2002-2004 - Laserfiche WebLink

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the County's public' purpose, and its trustee, the mayor, wears a County government hat. Under these circumstances: 1. The Council should file Bill No. 189. The Shipper's Wharf Committee Trust and Funds are not part of the County's fiscal operations, thus, the establishment of a special fund is not required. 2. The Shipper's Wharf Committee Trust Fund should be presented in the County's Comprehensive Annual Financial Report (CAFR) as a fiduciary fund type. This presentation will disclose the financial condition of the Trust. 3. The Shipper's Wharf Committee Trust Fund will be subject to independent audit procedures because it will be presented in the CAFR. 4. The Council's independent audit contract with KPMG does not need to be amended as long as the Fund's activity level remains unchanged. If the scope of audit review increases in the future, the audit contract must be amended, and Trust Funds would be used to reimburse the County for the additional work. 5. The Council should request a copy of the Trust's annual report when it reviews the County's Financial Audit Report, which contains the CAFR. The Trust's annual report would be made part of the Council records allowing for greater public dissemination and disclosure. 6. The Trust Fund would reimburse the County for legal services performed by the Office of the Corporation Counsel in response to a complaint filed against the Trust. 7. The administration should consider petitioning the Court to dissolve the Shipper's Wharf Committee Trust and transfer assets to the County. This action eliminates the problematic situation of acourt-ordered trust and the associated liability borne by its trustees and administrators. By making the assets part of the County's fiscal operations, a special fund could be structured to carry out the purpose and intent of the original trust. To that end, public transparency and accountability to the people of the Island of Hawaii, the original trust beneficiaries, could be elevated. 8. The Hawaii County Code should be amended to define financial terms and processes, such as'special fund' and 'trust fund'. Placing financial definitions and processes in the law formulates a framework for (A) greater public understanding of the County's finances and budget processes, (B) consistency and continuity for future applications, and (C) improved policy decisions. ATTACHMENTS Memorandum from Deputy Corporation Counsel Craig T. Masuda, March 1, 2004 Letter from Ralph T. Kanetoku, Partner, KPMG, March 11, 2004 7