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HomeMy WebLinkAboutCOM 0815.000 1998-2000 Hawaii State Association of Counties Counties of Kauai, Maui and Hawaii, City &County of Honolulu i _ June 13, 2000 To: James Arakaki, Chairman and Members of the Hawaii County Council From: A] Smith, Vice President G0-- Hawaii State Association of Counties (HSAC) Subject: HSAC Executive Committee Meeting - June 7, 2000 The following highlights of the HSAC Executive Committee meeting of June 7, 2000 are hereby submitted. The Secretary's Minutes of the Executive Committee Meeting of April 25, 2000 were approved (Attached for information). The Treasurer's Report for the month of April 2000 was approved (Attached for information). Under NACo Reports, it was reported that a new NACo Steering Committee on Telecommunications and Information Technology is being formed. Councilmembers desiring to serve on this Steering Committee should contact the LA's Office for more details. Under Unfinished Business, the Executive Committee approved the proposed slate of HSAC Officers for fiscal year 2000-2001; the reappointment of Executive Committee Members Kouchi, and Nakamura to the NACo Board of Directors; and the reappointment of Executive Committee Member Mansho to the WIR Board of Directors. Also under Unfinished Business, the Executive Committee recommended the endorsement of Karen Miller of Missouri for NACo Second Vice President. Executive Committee Members who met with both candidates at the WIR at Boise, all spoke highly of Karen. Under New Business, the HSAC Executive Committee approved the Hawaii County's proposed budget for the 2001 WIR Conference. (Copy of Proposed Budget attached). Finally under New Business, the Independent Auditor's Report for Fiscal Year 1999 was resented to the Association. (Copy of Independent Audit attached). Comm. No. File No. • l Ref. To: James Arakaki, Chairman June 13, 2000 Page 2 The next meeting of the HSAC Executive Committee was tentatively scheduled for August 11, 2000 on the island of Oahu. The meeting is planned for 10:00 a.m. at the Honolulu City Council Committee Room. Attachments: Hawaii State Association of Counties Counties of Kauai, Maui and Hawaii. City & County of Honolulu April 25, 2000 , Council Committee Room : g City Hall Honolulu, Hawaii 1. CALL TO ORDER The HSAC Executive Committee was called to order by President Rene Mansho at 3:00". The following members comprised a quorum: . -I City and County of Honolulu: President Rene Mansho Staff Andrew Sekine Staff Ann Thornock Staff Calvin Azama County of Hawaii: Vice President Al Smith Staff Gerald Monden County of Maui: Secretary Dennis Nakamura Staff Roy T. Hiraga County of Kauai: Treasurer Ronald Kouchi ll. EXECUTIVE COMMITTEE MEETING MINUTES The minutes of the February 11, 2000, Executive Committee meeting were approved as amended. I j III. REPORTS OF THE TREASURER The Treasurers' Reports for the months of January 2000, February 2000 and March 2000, were approved. IV. REPORTS OF COMMITTEES A. Executive Committee Reports There were no Executive Committee reports. HSAC Executive Committee Minutes of the April 25, 2000, meeting Page 2 B. County Reports The following reports were received and placed on file: 1. From Ronald Kouchi, Kauai Council Chair, to President Mansho, dated March 16, 2000, relating to the Kauai County Council's approval of the HSAC FY 2000-2001 Annual Budget. 2__ From Daryl T. Yamamoto, Maui County Clerk, to President Mansho, dated March 20, 2000, relating to Maui County Council's approval of the HSAC FY 2000-2001 Annual Budget. C. NACo Reports President Mansho noted that the Maritime Affairs and Ports Task Force, which she chairs, conducted a meeting in conjunction with the Legislative Conference held in Washington D.C. She also noted that she was appointed to serve on the U.S. Maritime Administration's Transportation Safety Advisory Council. Further, she reported that Karen Miller and Rudy Malloy were running for the NACo Second Vice President seat. President Mansho also noted that assistance would be needed to man displays and booths at the upcoming WIR, NACo Annual and NACo Legislative Conferences in preparation for the 2001 WIR Conference in Kona. Treasurer Kouchi subsequently requested that the June 7, 2000 General Membership agenda include an item regarding the endorsement of a candidate for the NACo Second Vice President position. V. UNFINISHED BUSINESS A. 2000 HSAC Legislative Package Your Committee received a spreadsheet depicting the various bills included in the 2000 HSAC Legislative Package Status report. Your Committee noted the measures that were still being considered for passage by the Legislature. Your Committee also noted that SB 2001, SD2 was currently under review by the Governor to address concerns expressed by the Attorney General. HSAC Executive Committee Minutes of the April 25, 2000, meeting Page 3 B. Other Legislation Relating to Counties Your Committee reviewed measures that were still being considered for passage by the Legislature. C. HSAC FY 2000-2001 Annual Budget Your Committee noted that all four counties had approved the budget and voted to forward the proposed budget to the General Membership for appropriate action. D. HSAC Year-End Conference Your Committee was advised that accommodations were still available. Your Committee also discussed the details involved with the designation of former HSAC officers that would be recognized during the conference program. The County of Kauai and the City and County of Honolulu indicated that they were still deliberating on the matter and requested that a room at the Lodge be reserved until a final determination was made. The County of Hawaii confirmed that it would not need the room at the Lodge. VI. NEW BUSINESS A. Proposed Slate of HSAC Officers for Fiscal Year 2000-2001 Your Committee, after consultation among themselves, voted to present the following slate of proposed officers to the member counties for action: Rene Mansho .................President Al Smith ..........................Vice President Dennis Nakamura Secretary Ronald Kouchi ................Treasurer During its discussion of the matter, your Committee noted that the first proposal offered by Secretary Nakamura was to allow for a transfer of duties among the various member counties. The representative from the County of Maui would have been appointed to the Vice President position in light of past assignments as that position does not require any official work to be submitted to the Executive Committee. All other positions require staff to conduct, or complete, specific tasks pursuant to the Bylaws. However, Vice President Smith requested that the County of Hawaii be allowed to HSAC Executive Committee Minutes of the April 25, 2000, meeting - Page 4 retain the Vice President position for one more year. He explained that he does not have sufficient assistance at the staff level and does not anticipate receiving any assistance from the Council in the near future. Secretary Nakamura stated that he could support the proposal to retain the status quo but requested Vice President Smith to arrange for proper staffing by the next fiscal year. Vice President Smith agreed and thanked the members for their understanding of his predicament. Your Committee also approved the following: Ronald Kouchi ................NACo Board of Directors Dennis Nakamura NACo Board of Directors Rene Mansho .................WIR Board of Directors B. HSAC Bylaws and Policies Treasurer Kouchi provided your Committee with an overview of the current situation relating to the disbursement of funds from HSAC related accounts. Treasurer Kouchi noted that he was recently advised that he had to sign all negotiable instruments issued by HSAC in conjunction with the 2000 HSAC Year-End Conference and questioned the practicality of this procedure. The County of Hawaii staff noted that their County has never adhered to this practice in the past and questioned the reason for this proposed amendment. The staff from the County of Maui clarified that such a procedure was required by the current HSAC Bylaws. Your Committee noted that although this practice has not been adhered to by all member counties, a formal amendment to the Bylaws is the preferred course of action that should be followed. Your Committee pointed out that member counties should be abiding by the existing Bylaws. Accordingly, your Committee voted to establish the following as an interim amendment to the Bylaws and Policies subject to the approval or disapproval of the General Membership at its June 7, 2000 meeting. "1. Establishment of a procedure for the disbursement of corporation funds provided that the procedure shall include a requirement that each negotiable instrument under which the HSAC Executive Committee Minutes of the April 25, 2000, meeting Page 5 corporation is payor shall be signed personally by the Treasurer and at least one other member of a council[.] except that for conferences or special events disbursement of such funds by the host county shall be authorized by the signature of the Executive Committee member of such host county, and a second councilmember of such host county without the necessity of the HSAC Treasurer's signature. After the close of such conference or special event a written accounting of all expenditures shall be provided to the Executive Committee along with such net proceeds. VII. COMMUNICATIONS The following communications were received and placed on file- 1 . From HSAC Treasurer Ronald Kouchi to President Mansho, dated March 21, 2000, transmitting the Financial Report on the 1999 HSAC Mid-Year Conference that was hosted by the County of Kauai. 2. From Kauai Council Chair Ronald Kouchi to President Mansho, dated March 30, 2000, relating to the Council's approval of the re-appointment of Ronald Kouchi as the HSAC Officer and Billy Swain as the alternate. VIII. ANNOUNCEMENTS Your Committee noted that the next meeting would be held on June 7, 2000 on Molokai. IV. ADJOURNMENT The meeting was adjourned at 11:21 a.m. Very truly yours, DENNIS Y. NAKAMURA Secretary Hawaii State Association of Counties ocs: hsac:000425mm *A h Hawaii State Association of Counties Counties of Kauai, Maui and Hawaii, City & County of Honolulu fi J o t May 8, 2000 The Executive Committee Members Hawaii State Association of Counties Dear Executive Committee Members: Please find enclosed the report of the Association's revenues collected and expenses paid for the fiscal period April 1 through April 30, 2000. Sincerely, RONALD KOUCHI Treasurer, Hawaii State Association of Counties Enc. HAWAII STATE ASSOCIATION OF COUNTIES REVENUES COLLECTED AND EXPENSES PAID ' Fiscal Period: April 1 through April 30, 2000 FUND BALANCE AT BEGINNING DATE $48,059.77 This Period Year to Date Budget 001 Membership Fees $0.00 $27,250.00 $27,000.00 010 Conference Income $38.01 $13,969.94 $6,000.00 011 Conference Seed Money Reimbursement $0.00 $2,000.00 ,$0,00 030 Interest Income $114.24 $1,013.33 $1,300.00 090 Miscellaneous $0.00 $0.00 $0.00 Total $152.25 $44,233.27 $34,300.00 TOTAL RECEIPTS THIS PERIOD $151.25 Disbursements Executive Committee 201 Travel 504.00 1,312.60 3,300.00 202 Auditing Services 0.00 0.00 4,750.00 203 Stationery 0.00 0.00 1,000.00 209 Miscellaneous 0.00 0.00 500.00 Special Committees 301 Travel 0.00 0.00 1,200.00 309 Miscellaneous 0.00 0.00 100.00 NACo 401 Travel 1,798.40 4,558.02 9,000.00 402 Promotional 0.00 0.00 0.00 403 Dues 0.00 20,070.00 20,075.00 409 Miscellaneous 0.00 250.00 250.00 WIR 501 Travel 0.00 1,467.21 3,000.00 502 Promotional 0,00 0.00 500.00 503 Dues 0.00 2,200.00 2,200.00 509 Miscellaneous 0.00 0.00 000 Conferences 602 FY 98-99 Mid Year 0.00 0.00 0.00 603 FY 98-99 Annual 0.00 0.00 0.00 604 FY 99-2000 Mid Year 0.00 1,000.00 0.00 605 FY 2000-2001 Annual 0.00 1,000.00 0.00 606 FY 2000-2001 Mid Year 0.00 0.00 0.00 609 Miscellaneous 0.00 0.00 0.00 Total $2,302.40 $ 31,857.83 S 45,875.00 TOTAL EXPENSES THIS PERIOD $2,301.40 FUND BALANCE AT END OF PERIOD: $ 45,909,62 Hawaii State Association of Counties Counties of Kauai, Maui and Hawaii, City & County of Honolulu May 23, 2000 TO: HSAC Executive Committee Members FROM: Al Smith 40~. Vice President RE: 2001 WIR Conference Budget Proposal This is to request a partial disbursement of funds ($5,000) after July 1, 2000, for the WIR 2001 Conference in Waikoloa, Hawaii. The check should be made payable to "WIR 2001 Conference". The balance can be transferred to us in January 2001. It is our understanding that the HSAC contribution will be $14,795. Our line item budget is as follows: PROJECTED WIR 2001 REVENUES HSAC Contributions $14,795 HTA Grant (to be confirmed) 15,000 Private Sector Funds: 55,205 $85,000 PROJECTED WIR 2001 EXPENDITURES Board of Directors Diner (250 (a~$55) $13,750 Conference-Wide Event (500(x)$85) 42,500 Promotions (travel excluded) 14,000 WIR Boise $2,000 NACo Annual 3,000 NACo Leg 3,000 Misc brochures, ads, 6,000 Miscellaneous (entertainment, transportation honorariums, communications) 14,750 $85,000 Promotion at WIR 2000 in Boise, Idaho We are happy to report that the promotional effort at WIR 2000 in Boise, Idaho was well- received. Gift baskets containing papaya, Big Island Candies, Kauai cookies, Maui brown sugar, and Maui Land & Pine pineapple juice were distributed to NACo officers, WIR officers, several NACo steering committee chairs, and NACo staff directors. At Hawaii's promotional table, we gave away brochures, small gift baskets, Hawaii calendars, Big Island posters, shell leis, Kona coffee, macadamia nuts, bags of Waialua coffee, Kauai cookies and flowers. The Hilton Waikoloa Village Resort Hotel gave Hawaii County a gift certificate for 3 days/2 nights at the Hilton Waikoloa and 2 rounds of golf at the Kings Course. A business card drawing was held at the Friday's WIR Reception. The lucky person was Richard B. Holmes, Assistant County Manager of Clark County Nevada. Ms. Mansho also gave away a round trip airlines ticket from a West Coast destination, a stay at the Hilton Waikoloa and a round of golf for two. Thank you all for obtaining the island products and brochures. Promotion at NACo Annual in Charlotte, North Carolina The NACo Annual promotional effort will consist of a commercial booth, giveaways at the booth and drawings for various products. We ask that each county provide giveaway products to be given away at the booth and also items to be included in small gift package drawings. VIP leis will also be distributed on behalf of the HSAC Executive Committee and the Hawaii County Council. Mahalo for your support of the WIR 2001 Conference by providing staffing resources for the promotional effort, financial resources and product donations. Should you have any question, please feel free to contact us. cc: Hawaii County Council 2 Hawaii State Association of Counties Counties of Kauai. Maui and Hawaii, City & County of Honolulu Hawaii State Association of Counties i Ronald Kouchi, Treasurer 4396 Rice Street, Room 206, Lihue, HI 96766 ` Ph.: (808)241-6371 or Fax: (808)241-6349 E-mail: council@aloha.net May 24, 2000 MEMORANDUM To: The Hawaii State Association of Counties (HSAC) Executive Committee Members President Rene Mansho Vice President Al Smith Secretary Dennis Nakamura From: Treasurer Ronald Kouchizt/ RE: HSAC AUDIT REPORT FOR YEAR ENDING JUNE 30, 1999 Pursuant to the Bylaws of the Hawaii State Association of Counties, Inc., transmitted herein is the Independent Auditor's Report for the year ending June 30, 1999 for your review and approval which was conducted by James K. Kodani, CPA, Inc. Accompanying the report of the financial statements is a copy of my letter of representation on behalf of the association to the auditor. If you have any questions regarding the audit, please do not hesitate to contact me at (808)241-6371. cc: 6/7/00 HSAC Executive Committee Meeting Agenda Att. RK/ca O HAWAII STATE ASSOCIATION OF COUNTIES, INC. Financial Statements June 30, 1999 JAMES K. KODANI, CPA, INC. INDEPENDENT A UDITORS' REPORT To the Board of Directors of HAWAII STATE ASSOCIATION OF COUNTIES, INC. We have audited the accompanying statement of assets, liabilities, and net assets - cash basis of Hawaii State Association of Counties, Inc. (a non-profit corporation) as of June 30, 1999 and the related statement of support, revenue, and expenses - cash basis for the year then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion. As described in note 1, these financial statements were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and net assets of Hawaii State Association of Counties, Inc. as of June 30, 1999 and its support, revenue, and expenses for the year then ended, on the basis of accounting described in note 1. As discussed in note 2, in 1998 the Association changed its method of accounting for contributions and its method of financial reporting and financial statement presentation. 1 Honolulu, Hawaii May 8, 2000 1405 NORTH ICNG STREET SUITE 302, HONOLULU, HAWAII 96817 HAWAII STATE ASSOCIATION OF COUNTIES, INC. Statement of Assets, Liabilities, and Net Assets - Cash Basis June 30, 1999 ASSETS Cash S 37,811 Total assets S 37,811 NET ASSETS Unrestricted S 37,811 Total liabilities and net assets S 37,811 See accompanving notes to financial statements. HAWAII STATE ASSOCIATION OF COUNTIES, INC. Statement of Support, Revenue and Expenses - Cash Basis For the year ended June 30, 1999 SUPPORT AND REVENUES RECEIVED Conference fees $ 28,850 Membership fees 28,000 Interest income 1,238 Miscellaneous 2,000 Total support and revenues received 60,088 EXPENSES DISBURSED Executive committee Professional fees 3,073 Travel 1,684 Other 5 Conference 19,987 National Association of Counties Travel 6,118 Membership 19,525 Western Interstate Resion Travel 2,542 Dues 2,200 Total expenses disbursed 55,134 Change in net assets 4,954 Net assets as of beginning of year 32,857 Net assets as of end of year $ 37,811 See accompanying notes to f nancia! statements. HAWAII STATE ASSOCIATION OF COUNTIES, INC. Notes to Financial Statements June 30, 1999 (1) NATURE OF OPERATIONS AND SIGNIFICANT ACCO UNTING POLICIES Nature of Operations The Hawaii State Association of Counties, Inc. (Association) was chartered as a nonprofit corporation under the laws of the State of Hawaii on November S, 1974. The Association serves as an agent to coordinate county programs in the best interest of the people of the State of Hawaii through cooperation of the legislative bodies of the several counties of the State; the creation of more practical and efficient county legislation, administrative procedures; the provision of a single source of information in regard to all counties which shall be available to the Governor, the Legislature and to all proper persons, officials; and a general improvement in the conduct of the county government. Basis ofAccountin~ The Association's policy is to prepare its financial statements on the cash basis of accounting. Consequently, revenues and the related assets are recognized when received rather than earned, and expenses are recognized when paid rather than when the obligation is incurred. This basis of accounting is a comprehensive basis of accounting that is not generally accepted accounting principles. Financial Statement Presentation The Association has adopted Statement of Financial Accounting Standards (SFAS) No. 117 "Financial Statements of Not-for-Profit Organizations." Under SFAS 117, the Association is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. As permitted by the statement, the Association has discontinued its use of fund accounting. Public Support and Revenue The Association has also adopted SFAS No. 116, "Accounting for Contributions Received and Contributions Made." Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. Donated Services and Facilities Various individuals and organizations donate their services and facilities toward the Association's programs and activities. The Association does not believe it is practical to assign or record a value for these donated services and facilities. HAWAII STATE ASSOCIATION OF COUNTIES, INC. Notes to Financial Statements June 30, 1999 (1) NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported and contingent amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (2) CHANGES INACCOUNTINGPRINCIPLES The Association adopted provisions of Statement of Financial Accounting Standards (SFAS) No. 116, Accounting for Contributions Received and Contributions Made and No. 117, Financial Statements of Not for-Profit organizations as of July 1, 1998. Statement of Financial Accounting Standards No. 116 requires the Association to distinguish between contributions that increase permanently restricted net assets, temporarily restricted net assets and unrestricted net assets. It also requires recognition of contributed services meeting certain criteria at fair values. Statement No. 117 establishes standards for general-purpose external financial statements of not-for-profit organizations. (3) INCOME TAXES The Association qualifies as a non-profit organization and is, therefore, exempt from income taxes under Section 501(c) (3) of the Internal Revenue code. (4) CONCENTRATION OF REVENUE The operations of the Association are funded substantially through dues from its county members and through two conferences held annually for year ended June 30, 1999 Hawaii State Association of Counties Counties of Kauai, Maui and Hawaii, City & County of Honolulu HAWAII STATE ASSOCIATION OF COUNTIES, INC. 4396 RICE STREET #206 LIHUE, HI 96766 Ph.: (808)241-6371 May 24, 2000 James K. Kodani, CPA, Inc. 1405 North King Street, Suite 302 Honolulu, HI 96817 Gentlemen: In connection with your audit of the financial statements - cash basis of Hawaii State Association of Counties, Inc. (HSAC) as of June 30, 1999 for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the cash receipts and disbursements of HSAC in conformity with other comprehensive basis of accounting other than generally accepted accounting principles, we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. 1. We are responsible for the fair presentation in the statement of cash receipts and disbursements and changes in cash balance, of HSAC, in conformity with other comprehensive basis of accounting other than generally accepted accounting principles. The financial statements include all properly classified funds under the organization's control. 2. We have made available to you all: a) Financial records and related data and all audit or relevant monitoring reports. b) Minutes of the meetings of Board of Directors, or summaries of actions of recent meetings for which minutes have not yet been prepared. 3. There have been no: a) Irregularities involving management or employees who have significant roles in the internal control structure. b) Irregularities involving other employees that could have a material effect on the financial statements. c) Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on . _,r the financial statement. James K. Kodani, CPA, Inc. Representation letter Page 2 May 24, 2000 4. Related party transactions have been properly recorded or disclosed in the financial statement. 5. There are no: a) Violations or possible violations of laws or regulations whose effect should be considered for disclosure in the financial statement or as a basis for recording a loss contingency. b) Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5. 6. We are not aware of any pending or threatened litigation, claim, or assessments or unasserted claims or assessments that are required to be disclosed in the financial statements in accordance with Statement of Financial Accounting Standards No. 5, and we have not consulted a lawyer concerning litigation, claims, or assessments. 7. Hawaii State Association of Counties, Inc. is an exempt organization under Section 501 of the Internal Revenue Code. Any activities that would jeopardize the organization's tax-exempt status of which we are aware of, and all activities subject to tax on unrelated business income or excise or other tax have been disclosed to you. All required filings with tax authorities are up to date. 8. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statement. 9. We have complied with all restrictions on resources and aspects of contractual and grant agreements that would have a material effect on the financial statements in the event of noncompliance. 10. To the best of our knowledge and belief, no events have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the financial statements. HAWAII STATE ASSOCIATION OF CO T S, INC. By G Ronald Kouchi Treasurer