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

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The Department does not implement sufficient internal controls to permit regular assessment of the effectiveness and efficiency of its recycling and diversion programs, and to reasonably ensure that a specific program meets its objectives. The Department has not implemented sufficient internal controls to ensure that unintended actions do not occur as a result of failure to meet permit and grant application; renewal, and reporting deadlines; that data reported to and by the Department is consistent, timely, valid, reliable, and disseminated to the proper agencies and personnel; and that program procurements and operations are in compliance with applicable laws, regulations, and provisions of contract and grant agreements. Recommendations The auditors recommend that the Mayor and County Council, in consultation with DEM, develop a plan and schedule for revising the County's Updated ISWW. The revision should include a method for input by all stakeholders and a commitment by all stakeholders to implement and adhere to the revised plan irrespective of changes in elected officials. An accompanying detailed "working plan" also needs to be developed to drive and guide implementation of the revised ISWMP, by outlining specific tasks to be completed, a schedule for their completion, and assignment of stakeholders responsible for each task. The County should also consider codifying this revised long -term solid waste management plan in the form of an ordinance that establishes a mechanism for regular and frequent review and reporting of stakeholder progress. The auditors also 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. In keeping, DEM should consult with the Finance Department and the Corporation Counsel to update its written policies and procedures relating to procurement and contracting, including the award of grant monies to non - profit and for - profit entities. The auditors recommend that the County consider implementing a standardized policy regarding documentation of any and all communications received by a department from federal and State governmental agencies concerning possible regulatory violations or sanctions, and require prompt transmittal of any and all such communications to the Mayor, Managing Director, Finance Director, Corporation Counsel, and County Council for information and input. The auditors recommend that DEM evaluate areas of possible risk, exposure, and control deficiencies, and develop and implement necessary internal controls. DEM should document all tasks and processes for which it is responsible, using "flow charts" or "process mapping" to aid in evaluating the adequacy of staffing levels and training. DEM should consult with other County departments and State agencies to develop "best practices" for program compliance, effectiveness, and efficiency. DEM should implement regular and frequent program reviews to monitor compliance and progress in an effort to maximize effectiveness and efficiency, while minimizing risk and exposure to