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J�tY OF p ; \Le COUNTY OF HAWAII -� .. STATE OF HAWAII RESOLUTION NO. 218 17 A RESOLUTION REQUESTING THE LEGISLATIVE AUDITOR TO PERFORM A FINANCIAL AND/OR PERFORMANCE AUDIT ON THE CASH HANDLING PROCEDURES OF THE MASS TRANSIT AGENCY IN FISCAL YEAR 2017-2018. WHEREAS, the mission of the Mass Transit Agency is to "provide safe, clean, convenient transportation services for the residents and visitors to the County of Hawai`i"; and WHEREAS, in Part I, Volume II, of the proposed operating budget, the Mass Transit Agency estimates a ridership of 900,000 passengers in fiscal year 2017-2018, and expects to collect$960,000 in bus fares during that same time period; and WHEREAS, Section 3-18(d)(2) of the Hawai`i County Charter states that the duties of the independent Legislative Auditor include conducting or causing to be conducted "performance and/or financial audits of the funds, programs, services and operations of any county agency, executive agency, or program, as set forth by the legislative auditor in an annual audit plan that shall be transmitted to the county council and the mayor and filed with the county clerk as a public record"; and WHEREAS, the Legislative Auditor has stated in the Audit Plan Principles section of its most recent audit plan that"the audit plan is a flexible and dynamic tool that can be amended throughout the year to reflect changing County risks and priorities"; and WHEREAS,the most recent audit plan stated in its Planned Audit section that the Legislative Auditor would audit"cash handling and receipting" in certain departments throughout the County; and WHEREAS, information disclosed about the Mass Transit Agency at the special meeting of the Council's Finance Committee on April 13, 2017, and in articles published in West Hawai`i Today and the Hawai`i Tribune-Herald on April 25 and 30, 2017, respectively, raise reasonable questions about the security and accountability of cash handling procedures; and WHEREAS, an audit of the cash handling procedures at the Mass Transit Agency will identify best practices for securing ride fares, guard against inadvertent or willful misappropriations of public funds, and provide assurances that proper procedures are being followed; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the Legislative Auditor is requested to include in its annual audit plan for fiscal year 2017-2018 a performance and/or financial audit of the Mass Transit Agency's cash handling system.