REP FC 161 12/06/2011 2010-2012 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: December 6, 2011 Re: Comm. No. 466/Bill 142 PLACE: Council Chambers Hilo, Hawai`i TIME: 3:11 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill 142, reports as follows: Bill 142, transmitted by Council Member Brenda Ford, via Communication No. 466 dated November 21, 2011, is a bill for an ordinance to amend Article X, Financial Procedures, Section 10-12, Special Funds of the Hawai`i County Charter (2010 Edition), Relating to Establishing or Abolishing Special Funds. Mr. Yagong resumed chairmanship of the Finance Committee. Ms. Ford commented that the "archaic language" in the charter be amended and brings forward this bill. She further states, by charter, that council sets and administers and implements policies. The language as it exists today is illegal and violates the separation of powers. Director Nancy Crawford and Deputy Director Deanna Sako of the Finance Department appeared before Your Committee. Ms. Crawford commented that both the Mayor and Council should have input into establishing or abolishing special funds as part of check and balances. There are concerns that these proposed changes will not provide that. She believes the current language, as it exists, allows collaborative action as needed. Ms. Sako provided the technical accounting comments and concerns as related to this proposed Bill. Furthermore, she stated specific accounting rules to follow in preparing the fund to do the financial statement. Having some kind of a collaborative effort beforehand will be helpful so that everyone will understand the accounting rules. A proposed amendment was transmitted via Communication 466.1 from Ms. Ford, dated December 7, 2011. This proposed amendment was provided with the assistance of LRB Specialist Steve Offenbaker. He commented on the proposed amendment before Your Committee and stated this allows both branches to collaboratively submit legislation. He explained that currently, administration brings other proposed legislation to Committee/Council and its chair would place it on the agenda to be discussed. The following amendment will follow the same process: "[The council may by ordinance create or abolish such special funds] Special funds may be created or abolished by ordinance as may be necessary for the proper and efficient segregation of fiscal operations of the county." This identifies neither the Mayor nor Council for this matter. Those amendments contained in Communication 466.1 were unanimously approved. FC Report No. 161