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
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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