COM 0021.000 1996-1998 - Laserfiche WebLink

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software, which is more than a few yeazs old, will likely incorrectly process entry of the yeaz 2000. This is also true of older packaged softwaze and operating systems. Examples of problems that may occur include: cannot cut or pay an invoice or paycheck, wrong records deleted/azchived, interest miscalculated, posting journal entries fails, etc. To fix these "bugs" may, or may not, be simple. But the magnitude of numerous small fixes can add up to a staggering quantity of man hours. The County has not begun to assess its systems and programs relative to processing the yeaz 2000. The assessment task is lazge and will take months. Once assessment is completed, the appropriate modifications or purchase of new hazdwaze and software follow. Large expenditures may be required to complete both assessment and modification of the County's systems and programs; especially if more programming staff and/or consulting help is necessary. Such expenditures will impact the budget. The systems to be reviewed should include the Property Tax Division's contracted arrangements with the City and County of Honolulu. Recommendation: Implement formal procedures to assess the County's computer systems' capability relating to rollforwazd into the yeaz 2000. This matter should be a high priority. D. DEPARTMENT OF PUBLIC WORKS -GRANT REIMBURSEMENT REQUESTS Observation: The Department of Public Works (DPW) has not submitted grant reimbursement requests on a timely basis. Background: During fiscal 1996, DPW had several reimbursable federal grants, passed through the State of Hawaii for construction and planning of highway projects. DPW can request reimbursement upon payment of qualifying expenditures. In practice, DPW has not consistently requested reimbursement on a timely basis. For example, as of October 25, 1996, DPW had not requested $459,170 of reimbursable costs related to the Alii Drive design project. The costs were incurred between September 1995 and July 1996, with 43% of the costs incurred during 1995. Untimely requests adversely affect the County's cash flow and investment earnings. Recommendation: Submit grant reimbursement requests as soon as qualifying payments exceed apre-determined level; such as $10,000. E. INTERNAL AUDIT FUNCTION Observation: The County should consider the benefits of an internal audit function. Background: An internal audit function is generally used throughout an organization to determine that departments have adequately implemented internal controls and have complied with the County's operational and fiscal requirements, as well as those imposed by outside agencies. -5-