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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: June 6, 2017 Re: Comm. No. 300/Res. No. 218-17 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 9:08 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Resolution No. 218-17 reports as follows: <br /> Resolution No. 218-17, transmitted by Council Member Sue Lee Loy, via Communication <br /> No. 300 dated May 18, 2017, a resolution requesting the legislative auditor to perform a financial <br /> and/or performance audit on the cash handling procedures of the mass transit agency in fiscal <br /> year 2017-2018. <br /> This resolution requests the Office of the Legislative Auditor to include in its audit plan for fiscal <br /> year 2017-2018 an audit of the Mass Transit Agency's cash handling system and that such an <br /> audit shall not be initiated until after a permanent Transit Operations Administrator for the <br /> agency has been employed. <br /> Ms. Lee Loy stated that this measure would help the department in one area of concern, which is <br /> cash handling. This resolution identifies and requests the Auditor to prepare an audit and that the <br /> audit be perfonned after the agency secures its operations administrator. The current <br /> administrator is under an 89-day contract. Based on the Legislative Auditor's recommendation, <br /> it would be preferable that an audit of the agency be conducted when that position has been <br /> permanently filled. <br /> Council Member Eileen O'Hara stated there needs to be a plan and that rural communities are <br /> where mass transit is a critical service. She also noted that an audit would be helpful because, in <br /> addition to a financial audit, looking at performance will assist with the broader mass transit plan <br /> for the County. <br /> Council Member Tim Richards commented that the audit can be positive and is in the right <br /> direction as it is intended to identify issues, sort them out, and fix it. <br /> Council Member Dru Kanuha inquired as to the process of deciding what kind of audit to <br /> conduct. Ms. Nims responded that in accordance with our County Charter, they are required to <br /> do an annual audit plan based on risk assessment and assessing each County department's <br /> procedures, cash receipts, constituent and Council concerns, and then incorporate them into the <br /> risk assessment. Ms. Nims noted that they conducted a preliminary assessment of Mass Transit <br /> Agency and had identified some weaknesses for which they made verbal recommendations. <br /> FC Report No. 21 <br />