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

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CHAPTER 2 GENERAL FINDINGS 4. We recommend that DEM consult with the Finance Department and the Corporation Counsel to develop written policies and procedures relating to procurement and contracting. • Develop formal written policies and procedures related to contract procurement, including timing of the procurement process, eligibility of contractors and subcontractors, evaluation of contractors and subcontractors, and drafting of procurement and contract documents. Contract provisions should address reducing County exposure to contractor fraud and/or abuse by clearly delineating any process and reporting controls as well as the County's right to audit contractors and subcontractors. Contract provisions should clearly state that the County's right to audit is not limited to examination of contractor records, and may include, but not be limited to, site access, inspection, and process observation. • Develop formal written policies and procedures to ensure proper timing, review, recordation, and maintenance of transactions relating to contractor billings and payments in accordance with County policy and generally accepted accounting principlgs. • Develop formal written policies and procedures related to the award of grant monies to non- profit and for -profit entities. 5. We recommend that the County Council adopt an ordinance to clearly establish the County's authority to audit any entity with which it contracts, regardless of whether the procurement is subject to or exempt from State and County procurement code provisions. 6. We recommend that DEM evaluate and implement processes and procedures to provide departmental capabilities for regular and continuous measurement of the volume of various waste types entering and being diverted from the County's solid waste system. 7. We recommend that DEM include accurate descriptions and measurements of the volumes of specific waste types to be processed under each procurement and contract document, as well as specific requirements for diversion, recycling, and /or reuse of waste types under each procurement and contract document. 17