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

Home

Chapter 3 ADF — GLASS CONTAINER RECOVERY PROGRAM as specified by the department of transportation in all basecourse (treated or untreated) and subbase when the glass is available to the quarry or contractor at a price no greater than that of the equivalent aggregate ". [emphasis added] Currently, the- insufficient supply of crushed glass and high labor costs associated with preparation of the glassphalt mixture make the paving requirement cost prohibitive. The ample supply and lesser cost of aggregate also deter development of this market. 9. Significant reduction in State funding of the ADF Program will negatively impact County glass recycling efforts. • The County will have to either fund or discontinue its ADF program. Reduced funding or discontinuation of the program will provide further incentive for glass processors to claim ADF glass under the H15 program. • Reduced funding or discontinuation of the program may cause glass processors to refuse to accept ADF glass, resulting in its disposal in landfill or illegal waste dump sites. Recommendations 1. We recommend that the County obtain a legal opinion as to whether the ADF and Diversion Grant programs are, in fact, exempt from the State procurement code under HRS §103D- 102(b)(2)(A). 2. We recommend that the County amend its Code to clearly establish its authority to audit any entity with which it contracts, regardless of whether the procurement is subject to or exempted from State and County procurement code provisions. Language should include clarification that an audit entails more than a review of documents and records. For example, it may include, but should not be limited to, inspection of contractor premises, processes, controls, and records. Consideration should be given to language contained in 1lAR §3- 122 -166 and §3- 122 -167. The County needs to review and develop rules and conditions applicable to procurements exempted from State and County procurement codes, and address possible gaps in remedies and protections normally afforded under the "General Rules and Conditions" of the codes. 3. We recommend that the County incorporate into all contracts exempted from State and County procurement codes, excerpts from the "General Terms and Conditions" of said codes which afford the County better protections and remedies against collusion, abuse, and fraud without subverting the flexibility intended by the exemptions. For example, Section 4, "Performance of Contract," contains language that permits the procurement officer or purchasing 37