2017-01 Performance Audit Report: Inventory Management at County of Hawai'i's Department of Public Works Highway Maintenace Division

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Background What is the primary function of DPW? The Department of Public Works (DPW) is composed of six divisions: Administration, Automotive, Building, Engineering, Highway Maintenance, and Traffic. They administer regulatory and code enforcements to improve the health and safety of the public on the Big Island. There are seven DPW Highway Maintenance baseyard locations maintained by the County in the South Hilo, Hamakua, North Kohala, South Kohala, Kona, Ka`u, and Puna districts where various inventory and equipment are managed and stored. Why was DPW Highway Maintenance selected for review? We identified large quantities of small and attractive inventory items considered sensitive, portable, and prone to theft in comparison to other DPW divisions. These items are located at all seven baseyards and are at risk of being easily stolen or used for personal benefit. What does DPW Highway Maintenance do? The Highway Maintenance Division is responsible for the repair, construction, maintenance, and improvements of all County roads and bridges, flood control structures, storm drainage systems, ditches, and culverts. Some of their duties include: • dry well (and catch basin) cleaning, • roadside maintenance such as litter pickup and grass cutting in county right of way, • trash pickup and street swept in Kainaliu, Downtown Hilo, and Kailua Village, • build and repair sidewalks on county roads, • pothole repairs, • roadside and bridge maintenance, • vegetation management in ditches, culverts and within flood control systems, • removal of dead animals over 50 lbs., • road resurfacing, installing and repairing guardrails, and • semi-annual inspections of flood control systems done in accordance to the United States Army Corps of Engineers requirements. What is inventory? Inventory is commonly defined as an itemized listing of goods or property or the value of materials and goods held by an organization. Specifically, the County defines inventory as (1) a detailed list showing the quantities, descriptions, and values of property and, frequently units of measure and unit prices. (2) An asset account reflecting the cost of goods held for resale or for use in operations.2 2 "Inventory" definition. County of Hawai"i Accounting Manual Part I Glossary page 105.29. DPW Highway Maintenance Division Inventory Management: Background 12