HomeMy WebLinkAboutRES 251 Draft 01 2002-2004 COUNTY OF HAWA~`I ~ STATE OF HAWAII
RESOLUTION NO. 251 U4
A RESOLUTION TO APPROVE AN AMENDMENT TO THE COUNTY'S EXTERNAL
AUDIT CONTRACT NO. 02152 WITH KPMG LLP.
WHERESAS, the County Council adopted Resolution No. 108-01, Draft 3, which
authorized the Council Chairperson to perform all tasks necessazy to enter into a contract for an
external audit as required by Section 10-13 of the Hawaii County Charter for a financial periods
of 2002 through 2005; and
WHEREAS, the County of Hawaii has entered into Contract No. 02152 (Contract) with
KPMG LLP to conduct the annual external audit of the financial records of the County, including
those of the Department of Water Supply, for the fiscal yeazs ended June 30, 2002, through June
3Q 2005; and
WHEREAS, the Contract No. 02152 provides for amendments to the Contract if the
scope of the work to be done must be extended beyond that covered in the original contract; and
WHEREAS, on September 10, 2004, KPMG LLP informed the County of Hawaii that a
significant change in the scope of services pertaining to the Single Audit of the Section 8
Housing Choice Vouchers program requires an additional 97 hows (approximate) to complete
the attestation services for the Financial Assessment Electronic Submission to the U.S.
Department of Housing and Urban Development Real Estate Assessment Center (HUD) (see
Exhibit A); and
WHEREAS, HUD's Uniform Financial Reporting standards regulations, codified at 24
CFR part 5, subpart H, provide that financial information is required to be submitted
electronically and prepazed in accordance with generally accepted accounting principles; and
WHEREAS, the additional cost of the Contract will be $12,500 for each of the fiscal
years ended June 30, 2004 and 2005, which would be paid by the Office of Housing and
Community Development; and
WHEREAS, Section 7(b) of the Contract provides for total fees for services, including
out-of-pocket expenses, which will increase to $150,500 and $152,500 for the fiscal years ended
June 30, 2004 and 2005, respectively; and
WHEREAS, the Council tinds it necessary to expand the Contract's scope of work to
comply with the requirements set forth by the U.S. Department of Housing and Community
Development.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HA WAI' I that it approves an extended scope of work in Contract No. 02152 with KPMG LLP to
encompass the additional work as delineated by the attached Exhibit A, which cost will be paid
by the Office of Housing and Community Development.
BE IT FINALLY RESOLVED that the County Clerk is hereby directed to forward a
copy of this resolution to the Mayor, the Managing Director, the Director of Finance, the
Housing Administrator and the Legislative Auditor.
Dated at Hilo ,Hawaii, this 20th day of October , 2004
INTRODUCED BY: -
1
~:COUN L MEMBER, COUNTY OF HAWAII
i
COUNTY COUNCIL ROLL CALL VOTE
County of;--Iawai`i Av?-a No?~.s n~;s f:x
Hilo, Hawaii ARAKAKI X
CHUNG
f hereby certify that the foregoing RESOLUTION was by ELARIONOFF X
The vote indicated to the right hereof adopted by the COUNCIL of the HOLSCHUH
County of Hawaii on October 0 , 2004 X
y JACOBSON
REYNOLDS
ATTEST: SAFARI K
TULANG X
TYLER X
Reference: C-799/Waived: FC
~~PICOUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO.
KPMG LLP
P.O. Box 4150 Telephone 808 531 7286
Honolulu, HI 96812-4150 Fax 808 541 9321
September 1Q 2004
Ms. Constance R. Kiriu
Legislative Auditor
County of Hawaii
Hawaii County Building
25 Aupuni Street, Room 208
Hilo, Hawaii 96720
Dear Ms. Kiriu:
This letter serves to inform you of a significant change in the scope of services
pertaining to our single audit of the County of Hawaii's federal financial assistance
programs as of and for the fiscal years ending June 30, 2004 and 2005. The increase in
scope is due to the requirement of the Section 8 -Housing Choice Vouchers program to
be audited in conjunction with attestation services to be provided for the Financial
Assessment Electronic Submission of the Section 8 -Housing Choice Vouchers to the
U.S. Department of Housing and Urban Development Real Estate Assessment Center.
When planning our audit and at the time we executed the contract, we did not anticipate
the additional attestation services to be provided for the Financial Assessment Electronic
Submission of the Section 8 -Housing Choice Vouchers to the U.S. Department of
Housing and Urban Development Real Estate Assessment Center. The following is au
estimate of the additional hours expected to be incurred by KPMG directly attributable
to this increase in scope:
Partner 6
Manager 11
Senior/Staff 80
Total 97
EXHIBIT A
nPMG LLPi a V 5 M1mi to bebJi~y pe~mers~ip, a Ne U 5
em~e~ li~m o~ KPMG Inlema~ional, a Swiss. ouFl~`~ativa
1 1, A~
Page 2
Ms. Constance R. Kiriu
County of Hawaii
September 10, 2004
Based on previously agreed-upon hourly rates and our estimate of additional hours and
out-of-pocket costs attributable to the increased scope of work, we estimate the
additional professional fees to be $12,500 for each year as follows:
Partner $ 1,488 ($248 per hour)
Manager 1,848 ($168 per hour)
Senior/Staff 7,600 ($95 per hour)
10,936
Out-of-pocket costs 1,500
Subtotal 12,436
Hawaii general excise tax 518
12,954
Less discount (454)
Total 12 500
We are requesting your approval for additional professional fees due to the increased
scope of our work as previously described in this letter. Should you have any questions,
we would be pleased to discuss this letter with you at any time.
Very truly yours,
KPMG LLP
Ralph T. Kanetoku
Partner
EXHIBIT A