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

Home

governmental sanctions and civil liabilities. DEM should utilize the County's "FRESH" project accounting module to provide timely and accurate reporting of contract and program financial and performance data. DEM should implement processes and procedures for regular and continuous measurement of the various waste types entering and being diverted from the County's solid. waste. stream. DEM should also include accurate descriptions and volume estimates of waste types to be processed as well. as specific requirements for reporting under each procurement and contract document. If the Department determines that it cannot implement the foregoing internal control measures with existing staff within the next six months, the auditors recommend that DEM consider procuring a private consultant to assist in its development of internal policies and procedures, process documentation, and staff assessments and training. Response In response to the auditors' draft report, the Department of Environmental Management expressed appreciation for the auditors' efforts to look beneath the surface and offer criticisms that will be useful in the Department's efforts to improve its operations. Due to the volume and level of detail of the audit report, DEM responded to what it felt were the "common areas of concern across programs." In general, DEM agreed with the General Findings, indicating: • The Department is evaluating all programs to implement improved procurement, management, and documentation where feasible. • The Department has drafted contract file management policies. • The Department has agreed to research utilizing the County's FRESH project accounting module for program tracking. • The Department has agreed to insert language in future contracts to require stricter documentation of end -use by vendors and to allow on -site observation of vendor operations by County personnel. • The Department has written to the State Procurement Office for a determination as to whether its current diversion grant process sufficiently meets State procurement criteria. • The Department has agreed to evaluate staffmg requirements in undertaking procurement and contract management. • The Department is agreeable to hiring a consultant for process map development to assist in improving its overall operations. While the auditors acknowledge and appreciate the Department's efforts to provide additional information, the auditors do not feel that the information offered by DEM substantively affected the content of the audit report. The auditors do offer the following comments to the Department's response: