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

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Chapter 3 ADF — GLASS CONTAINER RECOVERY PROGRAM Findings 1. Exemption of diversion program contracts from State and County procurement codes is unclear. • Insufficient documentation is available in program files to determine whether or confirm that the ADF program is exempt from the State procurement code under HRS § 103D- 102(b)(2)(A). • Insufficient documentation is available in program files to determine whether monies for the "Glass Recycling Program" contained in the DEM budget adopted by ordinance constitutes legal authorization for the issuance of grants for this program under the County Code and their exemption from procurement rules. 2. The disparity in diversion payments between ADF and HI5 glass recycling programs creates incentive for contractors to shift processed ADF glass to the HI5 program in the absence of adequate monitoring mechanisms. • Though ultimate responsibility for oversight of the ADF and H15 programs rests with the State, DOH has failed to implement necessary control measures. • There is a high probability that ADF glass was included in the HI5 weights claimed for the period January to June 2005. • Because data as to the number of containers imported /manufactured by material size and type is only maintained on a State level it, does not provide for independent corroboration of County ADF program claims. 3. At the County level, the absence of adequate control measures does not permit independent corroboration of vendor claims for ADF glass collected, processed, and sold and vendor claims of compliance with its contractual obligations to the recycling public. • Not all source streams are weighed or identified by material type. • Not all ADF collection receptacles are clearly marked. • Insufficient controls are in place to prevent cancelled glass from being claimed more than once. • Unsigned end -user receipts were observed in ADF contract files. • No documentation of ADF promotion and education and required buy -back payments to the recycling public was observed in ADF contract files. 35