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HomeMy WebLinkAboutBIL 255 Draft 01 2002-2004 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 255 ORDINANCE NO. A BILL AMENDING THE CHARTER OF THE COUNTY OF' HAWAII (2000) TO REORGANIZE THE OFFICE OF THE COUNTY CLERK AND COUNTY COUNCIL BY ESTABLISHING AN INDEPENDENT AiJDIT FUNCTION WITHIN AN OFFICE OF `l'HE COUNTY AUDITOR. E3E 1"f ORDAINED BY THE? COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. WHEREAS, the growing demand for accountability in government requires an independent assessment of county programs and services; and WHEREAS, taxpayers, voters, and the public as a whole are entitled to know: (1) Whether county funds are handled properly in compliance with laws and regulations; and (2) Whether county agencies and programs are achieving their purposes and operating economically and efficiently: and WHEREAS. auditing is a valuable mechanism in holding government accountable to the public and raising awareness that would improve governments delivery of services: and WHF,REAS, Section 10-13, Charter of the County of Ilawai`i (2000), requires the Council to provide for the conduct of an independent audit of the accounts and other evidences of financial transactions of every agency and executive agency of the county; and WHEREAS, Section 3-16, Charter of the County of Hawaii (2000), authorizes the Council to critically review every program supported wholly or partially by county funds at least once every tour years; and WHEREAS, Section 3-6, Charter of the County of Hawaii (2000), states the council shall appoint the county clerk. which shall appoint the legislative auditor with the approval of the council; and WHEREAS, historically, the Legislative Auditor's Office has assisted the Council in the conduct of the independent audit and annual budget program reviews; and WHEREAS, the Council wishes to strengthen the auditing function in County government by establishing greater auditing independence and ensuring that the agencies and programs of~ the County are held to the highest standard of accountability to the public. BE I1' RESOLVED by the Council of the County of Hawaii: That it proposes and it is hereby proposed that the following question be placed on the 2004 general election ballot: "Shall the Charter of the County of Hawaii (2000) be amended to establish an independent audit function for the county in an Office of the County Auditor in the legislative branch?" SECTION 2. Section 3-6, Charter of the County of Hawaii (2000), is amended to read as follows: "Section 3-6. Organization of the Council; Officers; Employees. (a) The council shall elect from among its members a chairperson and a vice chairperson, each of whom shall serve at its pleasure. Until such time as the chairperson and presiding officer shall be elected, the mayor shall preside at such meeting, provided that the mayor shall not have a vote. The chairperson shall preside at council meetings. If at any meeting the chairperson is not present or unable to act, the vice chairperson shall then preside. In the absence of the chairperson and vice chairperson, the council shall elect from among its members a temporary presiding officer. (b) "fhe council shall appoint the county clerk which position shall be exempt from civil service laws and classifications. The county clerk [shall]: (1) ~Be] Shall be the clerk of the council. (2) ~Be] Shall be the custodian of the county seal. (3) ~ Conduct] Shall conduct all elections held within the county. (4) Appoint the deputy county clerk [and the legislative auditor,] with the approval of the council, and such [positions] osp ition shall be exempt from civil service laws and classifications. (5) ~Perfonn~ Shall perform such other functions as the council may prescribe. (6) [Appoint] Shall appoint necessary staff for which appropriations have been mode by the council, subject to civil service laws and classifications, and exercise the same power with respect to the personnel of the clerk's office as the department heads in the executive branch." 2 SECTION 3. Article III (Legislative Branch), Charter of the County of Hawaii (2000), is amended by adding new sections to be appropriately designated and to read as follows: "Section 3- .Office Established; County Auditor. (a) "There is established in the legislative branch of the county an office of the county auditor to beheaded by a county auditor who shall be appointed by the county council and shall serve for a period of eight years, and thereafter, until a successor is appointed. The council shall fix the salary of the county auditor. The council, by a two-thirds vote of its membership, may remove the auditor from office at any time for cause. (bl The county auditor shall have had a minimum of Live years of experience in program analysis or related fields, at least three years of whidi shall have been iu a responsible supervisory capacity. (c) The county auditor may appoint the necessary staff for which appropriations have been made by the council Subiect to the provisions of this charter and applicable rules and regulations adopted thereunder, the auditor shall have the same powers with respect to the personnel of the county auditor as executive branch department heads have over their personnel. Staff shall be exempt from civil service laws and Bassi fications." '`Section 3- .Powers, Duties, and Functions. (a) It shall be the duty of the county auditor to conduct or cause to be conducted: (I) The annual financial audit of the county, as required by section 10-li; (2) Performance audits of the funds, programs, and operations of any at~ency or aeration of the county as requested by the council by resolution, as authorized by section 3-16; (3) Performance and financial audits of the funds, programs, and operations of any agency or operation of the county, as determined by the auditor to be warranted. (4) Follow-up audits and monitoring of compliance with audit recommendations by audited entities. (b) Final audit f findings and recommendations shall be set forth in written reports of the county auditor_ a copy of which shall he transmitted to the mayor and to the council. The final written report shall be tiled with the county clerk and shall be a public record. (c) For purposes of carrying out any audit, the auditor is authorized to examine and inspect any record of anv agency or operation of the county, have full, free, and unrestricted access to any county officer or employee and, in the name of the council, subpoena witnesses and compel the production of records pertinent thereto. If anv person subpoenaed as a witness or compelled to produce records shall fail or refuse to respond thereto, the proper court, upon request of the auditor, shall have the power to compel obedience to any process of the auditor and to punish, as a contempt of the court, any refusal to comply therewith without Good cause. False swearing by any witness shall constitute perjury and shall be referred by the auditor to the prosecuting attorney for prosecution. In any audit which concerns the alleged Bross misconduct or alleged criminal conduct on the part of any individual, such individual shall have the right to be represented by counsel and the right to have the auditor compel the attendance of witnesses on behalf of the individual. (d) Forpurposes of this section, "agency or operation of the county" includes anv executive agency, semi-autonomous agency, council office, and other establishment of county govenunent supported, in whole or in part, by county or fiords. "Council office" includes the council itself, the office of a council member and the council member's immediate stall, the office of the county clerk, the oftlce of council services, the reapportionment commission, and a chartca~ commission. This definition applies only to those sections. It shall not be construed as excluding the office of the county auditor from the legislative branch. "Record" includes any account, book, paper, and document, and any financial transaction, notwithstanding whether anv of the preceding is stored on pier or electronically." SECTION 4. That it proposes and it is hereby proposed that Section 3-16 (Mandatory Program Review), Charter of the County of Hawaii, be amended to read as follows: "Section 3-16. Mandatory Prugram~ Performance Review. [At least once every four years, the council shall critically review every program supported wholly or partially by county funds, and unless the council shall favorably authorize its continuation at current or modified levels, the program shall be terminated. The council shall adopt procedures and details to implement this section.) (a) The council matey time by adoption of a resolution, provide for and direct the county auditor to conduct or cause to he conducted a performance audit of anv agency or operation of the county. "fhe scope of the audit shall be set forth iu the resolution and may include the following objectives: (1) Examination and testing of processes to determine whether the Taws, policies and programs of the county are being carried out iu the most effective, cf~icicnt and economical manner. (2) Examination and testing of internal control systems to ensure that such systems are properly designed to safeguard public assets against loss from 4 waste, fraud, or error, to promote efficient operations, and to encourage adherence to prescribed maua eng tent policies. (3) Recommendations for chances in the organization, management and processes, which will produce Greater efficiency and effectiveness in meeting the objectives of the proerams or operations carried out. (b) A copy of the final audit report shall be tiled with the county clerk and shall be a public record. (c) For the purpose of this section, "agency" or "operation of the county" means the same as defined under section 3- SECTION 5. Section 10-13 ("Post-audit"), Charter of the County of blawai`i, is amended to read as follows: "Section 10-13. Post-audit. [The] At least once every year, the county council shall provide fat least once every year] for the county auditor to causc to be conducted an independent audit of the accounts and other evidences of financial transactions of the cowity and of every county agency and executive agency. The audit shall be made by a certified public accountant or firm of certified public accountants, designated by the council, who have no personal interest, direct or indirect, in the fiscal affairs of the county or of any of its agencies or executive agencies. The audit shall include both financial accountability and adequacy of the financial and accounting system. If the state makes such an audit, the council may accept it as satisfying the requirements of this section. Either the council or the mayor may at guy time order an examination or audit of the accounts or program of any county agency or executive agency. Upon the death, resignation, removal or expiration of the term of any county administrative officer, the director of finance shall cause an audit and investigation of the accounts maintained by the officer and the officer's agency or executive agency to be made and shall report the results thereof to the mayor and the council. L~ the case of the death, resignation or removal of the director of finance, the council may causc an audit to he made of the accounts of all agencies and executive agencies. If as a result of any such audit, an officer be found indebted to the county, the mayor shall proceed forthwith to collect the indebtedness." SECTION 6. Article XVI ("Transitional Provisions"), Charter of dle County of Hawaii (2000), be amended by adding a new section to he appropriately designated and to read as follows: "Section 16- .Transition Provisions Concerning the Transfer of Audit Functions to the Office of the County Auditor. (a) All contracts held by the oftice of the county clerk relatinG to financial and performance audits which are to remain effective after .lure 30.2005, shall be assumed by the office of the county auditor. 'fhc contracts shall continue in effect until fultilled or lawfully terminated. s (b) All financial and performance audit activities administered by the oftice of the county clerk-legislative auditor's oftice on June 30, 2005 shall be assumed by the oftice of the county auditor on .lulu 1, 2005. (c) On .iuly 1 2005, all records, data, and information held by the office of the county clerk-legislative auditor's office relatint~ to financial and performance audits which have noC been completed as of June 30, ?005, shall be transferred to the off ice of the county auditor." SECTION 7. Charter material to be repealed is bracketed; new charter material is underscored. When revising, compiling, or printing these charter provisions lbr inclusion in the Charter of the County of Hawaii (2000), the reviser need not include the brackets, the bracketed material, or the underscoring. SECTION 8. If these Charter provisions are amended by any other Charter amendment approved by the electors at the 2004 general election, the reviser of the Charter in revising, compiling, or printing the Charter: (I) may designate or redesignate articles, chapters, sections, or parts of sections and rearrange references thereto and (2) shall, except as otherwise expressly provided in this ordinance or in the other ordinance(s) amending these Charter provisions give effect, to the extent possible, to all of the amendnunts approved. SECTION 9. 'I~hat upon approval of the C barter amendment question posed in this ordinance by a majority of electors voting thereon, as duly certified, the Charter amendment proposed in paragraph 6 of this ordinance shall take effect, and the Charter amendments proposed in paragraphs 2-5 of this Resolution shall tale effect on July I, 2005. I ODUCED BY: ~'O NCII, MEMBER C IiNTY OE 1IAWAI'I Hawaii Date of Introduction: Date of 1" Reading: Date of 2°`~ Reading: Date of3"~ Readine: Effective Date: REFERENCES Comm. 57~ 6