HomeMy WebLinkAboutRES 548 Draft 02 2022-2024COUNTY 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.
BE IT FURTHER RESOLVED that the Office of the County Auditor shall submit a
comprehensive report of its findings and recommendations to the Council within 120 days of
completion of the audit.
BE IT FURTHER RESOLVED that to ensure compliance with statutory requirements
and to improve efficiency and integrity, the Department of Liquor Control shall take appropriate
action in accordance with the findings and recommendations of the performance audit and
submit a progress report to the Council within 180 days of receipt of the comprehensive audit
report.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Honorable Mayor Mitchell D. Roth, Director of Liquor Control Gerald Takase,
and County Auditor Tyler J. Benner.
Dated at Kona , Hawai`i,this 24th day of July , 20 24 .
INTRODUCED BY:
0 CIL MEMBER, COUNTY OF HAWAI`I
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawai`i EVANS X
GALIMBA X
I hereby certify that the foregoing RESOLUTION was by INABA X
the vote indicated to the right hereof adopted by the COUNCIL of the KAGIWADA X
County of Hawaii on July 24, 2024
KANEALI`I-KLEINFELDER X
KIERKIEWICZ X
ATTEST: KIMBALL X
LEE LOY X
VILLEGAS X
9 0 0 0
Reference: C-919.2/GOEAC-144
COUNTY CLERK AIRPERSON&PRESIDING OFFICER RESOLUTION NO. 548 24
(DRAFT 2)
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