REP FC 111 07/06/2005 2004-2006 - Laserfiche WebLink

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12EPORT OF THE COMMITTEE ON FINANCE DATE: July 6, 2005 RE: Comm. No. 290 PLACE: Council Chambers TIME: 10:36 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Communication No. 290, reports as follows: Communication No. 290, transmitted by Deputy County Clerk William Smith, dated May 20. 2005, submits the post-audit Financial Audit Report of the County of Hawaii for the Fiscal I'ear• Ended June 3q 200-7, and ~llanagement Letter dared March 23, 2005, as prepared by KPMG LLP. KPMG, LLP has issued an unqualified opinion, which states that the Comprehensive Annual Financial Keport presents fairly the financial condition of the County and conlorms to Government Auditing Standards. This year's Management Letter contains findings and recommendations related to: ? Collection of Receivables (Sewer and Landfill) • Landfill receivables have improved due to new requirements for claiming residential credits and new provisions for trash removal contracts that were established in the prior year, resulting in a 13% decrease in the over 90 days balance. • For sewer receivables, the Hawaii County Council adopted Ordinance No. OS-19 (Bill 312, Dratt K) on January 21, 2005, which adds an interest rate of 1.5% to balances past due the 30-day deadline, and making the landowners responsible for the payments of delinquent sewer service charges. [n addition, the County's recent conversion to their new computer system will help to streamline the billing process. • The Department of Environmental Management concurs with the recommendations made by KPMG, LLP and will continue to work with the Department of Finance to develop comprehensive policies and procedures for collecting County receivables. The policies and procedures should address all aspects pertaining to revenue generation and collection. including extension of~ credit; when and how much interest to charge; and when to deny service, take legal action, when to write accounts off and offer payment plans. These policies should be formally communicated to the public and be strictly enforced by the County. Pursuant to Article X, Section 10-13, Hawaii County Charter, the County Council shall prop°idc at least once every year for an independent audit of the accounts and other evidences of tnancial transactions of the County and of every County agency and executive agency. The audit shall be made by a certified public accountant or firm designated by the Council. FC REPORT NO. 1 L I