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COUNTY OF HAWAI`I STATE OF HAWAI`I RESOLUTION NO. 548 24 (DRAFT 2) A RESOLUTION REQUESTING THE OFFICE OF THE COUNTY AUDITOR TO CONDUCT A PERFORMANCE AUDIT OF THE DEPARTMENT OF LIQUOR CONTROL TO ENSURE THE EFFICIENT ALLOCATION AND UTILIZATION OF FUNDS IN COMPLIANCE WITH SECTION 281-17.5, HAWAI`I REVISED STATUTES. WHEREAS, the Department of Liquor Control operates on a self -funded basis, relying on fees collected by the Liquor Commission; and WHEREAS, Section 281-17.5, Hawaii Revised Statutes, mandates that fees collected by the Liquor Commission must have a direct and proportionate relationship to costs and expenses of the Liquor Commission; and WHEREAS, recent discussions during the departmental budget and program review at the Special Meeting of the Committee on Finance have failed to instill confidence that statutory requirements regarding liquor fees are being adhered to; and WHEREAS, the travel budget for the Department of Liquor Control, Liquor Commission, and Liquor Control Adjudication Board is notably high, with an estimated budget of $124,000 for fiscal year 2023-2024 and for the next three fiscal years; and WHEREAS, the Mayor's budget for fiscal year 2024-2025 had raised concerns during the Council's budget hearings as to the spending patterns of the Department of Liquor Control, Liquor Commission, and Liquor Control Adjudication Board, particularly in relation to the allocation of funds for travel expenses; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that the Office of the County Auditor is hereby requested to conduct a performance audit of the Department of Liquor Control. BE IT FURTHER RESOLVED that the audit shall specifically focus on; (1) The allocation and utilization of funds, particularly with regard to the travel budget of the Department of Liquor Control, Liquor Commission, and Liquor Control Adjudication Board; (2) Compliance with Section 281-17.5, Hawaii Revised Statutes, concerning the direct and proportionate relationship between the fees collected and expenses incurred; and (3) Any other pertinent issues affecting the transparency and accountability of the Department of Liquor Control.