2006-01-AU Audit of the County of Hawai‘i's Recycling and Diversion Grants Program

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CHAPTERi BACKGROUND 2003 was transitioned to a full time Recycling Specialist I in June 2005. Two temporary Recycling Specialist II positions specifically dedicated to the HI5 Beverage Container Deposit Program were filled in January 2005, and are assisted by a student helper. During the audit period, the Special Programs Group was responsible for administering approximately 12 recycle /diversion programs, comprised of roughly 70 contracts, as well as three EPA pilot projects and one facility design project. Audit Objectives In its Resolution No. 168 -05, the County Council identified the scope of this performance audit to include, but not be limited to, the following objectives: 1. To examine a sample of the significant contracts for Department of Environmental Management's Recycling and Diversion programs during the fiscal years 2004 and 2005. 2. To review the bidding process, contract award, monitoring process and oversight requirements of these recycling contracts. To review policies and procedures of the Department of Environmental Management for adequate safeguards on grant administration. 4. All auditing shall be done in accordance with governmental auditing standards as outlined in Rule 22, Council Rules... [T]he Legislative Auditor's Office may conduct further examination into concerns that may arise during the course of the review beyond the scope and objectives listed above...." Scope and Methodology This limited scope performance audit focused on DEM's Special Programs Group and its activities relating to recycling and diversion contracts. Our audit sample consisted of all recycling and diversion contracts in excess of $100,000 issued from July 1, 2003 through June 30, 2005, which totaled $6,726,963 (See Exhibit 1.3). The sample was drawn from a summary report provided by DEM of all recycling and diversion contracts issued for the fiscal years 2003 -2004 and 2004 -2005 (See Exhibit 1.4). Audit fieldwork was conducted from December 2005 through April 2006, in accordance with generally accepted government auditing standards. While the audit focused on the DEM Special Programs Group, portions of fieldwork included consideration of the larger DEM Solid Waste Division, other County departments, the County administrative and legislative branches, and the State Department of Health, but only as they related to the Special Programs Group and its operations and administration. 6