COM 1282.000 2006-2008 - Laserfiche WebLink

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2. Determine whether adequate procedures and controls exist to keep contract supplements and change orders to a minimum. 3. Determine the extent to which contract supplements and change orders could have been avoided. 4. Determine whether adequate procedures exist to resolve and recover any disputed charges. 5. Determine whether contract supplements and change orders are in compliance with legal requirements and applicable policies and procedures. 6. Determine whether contract supplements and change orders were properly reviewed, authorized, and approved. 7. Determine whether examination of additional issues arising during the limited scope audit is warranted. Audit Methodology In conducting this limited scope performance audit, the audit team reviewed pertinent provisions of the Hawaii Revised Statutes (HRS), Hawaii Administrative Rules (HAR), Hawaii County Charter, Hawaii County Code, and County of Hawaii Department of Public Works General Requirements and Covenants. The auditors reviewed departmental policies and procedures, information systems and management controls to assess their existence and adequacy in ensuring DPW's ability to fulfill departmental goals and responsibilities in an effective and efficient manner. Additionally, the auditors reviewed departmental and contractor files and interviewed departmental personnel and contractors. While the foregoing audit objectives did not encompass an assessment of the effectiveness and/or efficiency of the Department of Public Works as a whole, several audit findings address broader management issues as they affect DPW's ability to exercise managerial control over its professional services and construction contracts. Consideration was also given to extra- departmental and County-wide issues relating to strategic planning, budget prioritization, information systems, and process improvement and control as they impacted DPW's project and overall management activities. Internal/Manageriat Controls Section 7.15(c) of "Government Auditing Standards -July 2007 Revision" (Yellow Book) defines "Internal Control" as follows: "Internal control, sometimes referred to as management control, in the broadest sense includes the plan, policies, methods, and procedures adopted by management to meet its missions, goals, and objectives. Internal control includes the processes for planning, organizing, directing, and controlling program operations. It includes the systems .for measuring, reporting, and monitoring program performance. Internal control serves as a defense in safeguarding assets and in preventing and detecting errors; fraud; violations of laws, regulations, and provisions of contracts and grant agreements; or abuse...." 5