2015-01 Performance Audit Report: County of Hawai'i's Purchasing Card (pCard) Program

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Appendix A: Audit Criteria Hawai"i State Constitution, Article 7, Section 4 requires that public money be used for a public purpose: APPROPRIATIONS FOR PRIVATE PURPOSES PROHIBITED Section 4. No tax shall be levied or appropriation of public money or property made, nor shall the public credit be used, directly or indirectly, except for a public purpose. [emphasis added] No grant shall be made in violation of Section 4 of Article I of this constitution. No grant of public money or property shall be made except pursuant to standards provided by law. Hawai"i Revised Statutes (HRS) Section 103D-101 establishes the requirements of ethical public procurement including acting as a "fiduciary and trustee of public moneys" as well as acting only in the public interest: (a) All public employees shall conduct and participate in public procurement in an ethical manner. In conducting and participating in procurement, public employees shall: (1) Act as a fiduciary and trustee of public moneys... (3) Act only in the public interest; (4) Abide by the statutes and administrative rules relating to public procurement... (7) Avoid the intent or appearances of unethical behavior... Hawai"i Administrative Rules Section 3-131-1.02 describes the requirements of ethical procurement: Procurement code of ethics. (a) Public employees shall act in good faith to discharge their duties to ensure the fair and equitable treatment of all persons who deal with government procurement; to foster public confidence in the integrity of the procurement process; and to ensure the appropriate application of purchasing ethics. Any person employed by a governmental body who, when engaging in procurement, shall be bound by this code of ethics, including but not limited to the following: (1) Avoid the intent and appearance of unethical behavior or practices; (2) Diligently follow the procurement laws, rules, and procedures... (6) Ensure that all persons are afforded equal opportunity to compete in a fair and open environment... Purchasing Card Program ::Audit Criteria 123