2006-12-11_Independent_audit_of_Hawaii_County

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o 0 .►�V.4� Lincoln S.T. Ashida ' Corporation Counsel Harry Kim Mayor Gerald Takase Assistant Corporation Counsel COUNTY OF HAWAII OFFICE OF THE CORPORATION COUNSEL 101 Aupuni Street, Suite 325 • Hilo,Hawaii 96720-4262 • (808)961-8251 • Fax(808)961-8622 December 11, 2006 Mr. Myles Y. Miyasato, Chair and Commissioners Cost of Government Commission c/o 101 Aupuni Street, Suite 325 Hilo, Hawaii 96720 Re: Independent Audit of Hawai`i County (1217106 Agenda Item 7-k) Dear Chair Miyasato and Commissioners: It was a pleasure to work with the Commission last week. This letter is in response to the question raised at the meeting on whether, and how often, an independent audit of the County's departments is done. This question arose during the discussion of Mr. Sakaguchi's recommendation (agenda item 7-k) to contract every three years with the State of Hawaii Legislative Auditor's Office to conduct a management and program audit of all or selected County departments to identify new practices or procedures which should be in place for efficiency and cost savings. The County has a provision for a program audit. Article III, Section 3-16, of the Hawaii County Charter, Mandatory Program Review, provides that at least once every four years the County Council must critically review every program supported wholly or partially by County funds, and unless the Council favorably authorizes its continuation at current or modified levels, the program will be terminated. There is also a Charter provision for a financial audit. Article X, Section 10-13, of the Hawaii County Charter, Post-Audit, provides for an annual audit. The County Council is responsible for providing an independent audit, at least once every year, of the accounts and other financial transactions of the County and of every County agency and executive agency. The audit must include both financial accountability and adequacy of the financial, and accounting system. The audit must be done by a certified public accountant, or firm of accountants, who have no personal interest in the fiscal affairs of the County or its agencies. This Charter section also provides that if the State of Hawaii performs an audit, the Hawaii County Council may accept it as satisfying the annual audit requirement. I spoke with Deanna Sako, controller at the Finance Department, who confirmed that the County as a whole is Hawaii County is an Equal Opportunity Employer and Provider Ce��+ Na 2vo6-93