2009-01-AU Follow-up Review of the 2006 Audit of the Department of Environmental Management's Recycling and Diversion Grants Program

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RECOMMENDATIONS - GENERAL FINDINGS numerous DOH Solid Waste Permits. For instance Kealakehe has a permit for the transfer station (aka convenience center), the Greenwaste Operation, the Recycling Operation and the Scrap Metal Operation. LAO Follow -Up The Auditor reviewed a sample of contract files and noted no significant deficiencies. o A communication management system for intra - departmental, inter- departmental, and public communications to ensure adequate and timely response to and appropriate dissemination of any inquiry or complaint. DEM Response DEM policy for communication with other County departments is through the Department Director. The Department's Recycling Section receives numerous calls from the public. The calls are handled directly by one of the Recycling staff. The Recycling Section maintains a call log record of incoming calls and uses a form (Refer to Attachment `B" Contractor Complaint Form) to document specific complaints. Currently DEM Solid Waste Division and Wastewater Division Staff are in separate physical locations from DEM Administration and the Business Services Section which creates communication challenges. DEM agrees that a communication management system would be valuable. This is an excellent recommendation that will be implemented when appropriate staff and funding are available. DEM is in the process of relocating the Solid Waste and Wastewater Division personnel to the DEM Administration and Business Services Section office. LAO Follow -Up Although no written policy or procedure was provided, the Auditor noted significant improvement in DEM's documentation of and responses to external communications. o A program tracking system to monitor departmental and vendor compliance with all contractual, permit, and regulatory requirements related to solid waste management. DEM Response The State Department of Health (DOH) is the regulatory agency for Solid Waste permits in the entire State, including the County of Hawaii. Any notification or warning letter received from the DOH is assigned a numerical number in MS Outlook and is tracked by the DEM Secretary until an appropriate response has been prepared and issued by the Department, Division or Vendor. LAO Follow -Up Procurement documents clearly state: "all bidders having an accounts receivable with the County of Hawaii shall be in good standing on that account ". However, on at least one occasion, a contract was awarded to a bidder with past due tipping fees of $90,000 at the time of contract award. o An account tracking system to monitor contractor billings and payments by utilizing the project accounting module within the County's FRESH accounting system.