HomeMy WebLinkAboutREP FC 111 07/06/2005 2004-2006 12EPORT OF THE
COMMITTEE ON FINANCE
DATE: July 6, 2005 RE: Comm. No. 290
PLACE: Council Chambers
TIME: 10:36 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Communication No. 290, reports as follows:
Communication No. 290, transmitted by Deputy County Clerk William Smith, dated May 20.
2005, submits the post-audit Financial Audit Report of the County of Hawaii for the Fiscal I'ear•
Ended June 3q 200-7, and ~llanagement Letter dared March 23, 2005, as prepared by
KPMG LLP.
KPMG, LLP has issued an unqualified opinion, which states that the Comprehensive Annual
Financial Keport presents fairly the financial condition of the County and conlorms to
Government Auditing Standards.
This year's Management Letter contains findings and recommendations related to:
? Collection of Receivables (Sewer and Landfill)
• Landfill receivables have improved due to new requirements for claiming residential
credits and new provisions for trash removal contracts that were established in the
prior year, resulting in a 13% decrease in the over 90 days balance.
• For sewer receivables, the Hawaii County Council adopted Ordinance No. OS-19
(Bill 312, Dratt K) on January 21, 2005, which adds an interest rate of 1.5% to
balances past due the 30-day deadline, and making the landowners responsible for the
payments of delinquent sewer service charges. [n addition, the County's recent
conversion to their new computer system will help to streamline the billing process.
• The Department of Environmental Management concurs with the recommendations
made by KPMG, LLP and will continue to work with the Department of Finance to
develop comprehensive policies and procedures for collecting County receivables.
The policies and procedures should address all aspects pertaining to revenue
generation and collection. including extension of~ credit; when and how much interest
to charge; and when to deny service, take legal action, when to write accounts off and
offer payment plans. These policies should be formally communicated to the public
and be strictly enforced by the County.
Pursuant to Article X, Section 10-13, Hawaii County Charter, the County Council shall prop°idc
at least once every year for an independent audit of the accounts and other evidences of tnancial
transactions of the County and of every County agency and executive agency. The audit shall be
made by a certified public accountant or firm designated by the Council.
FC REPORT NO. 1 L I
At the Finance Committee meeting, KPMG LLP representatives Managing Par[ncr
Ralph Kanetoku, Project Manager Kim Miyoshi and Senior Auditor Grant Nakagawa reviewed
the scope of the audit services, the results of the audit, required communications, the
Management Letter comments, and the compliance and internal controls over Federal awards.
Also in attendance from the County's Administration were Controller Deanna Sako, Housing
Administrator Ed Taira, F,nvironmental Management Director Barbara Bell and Environmental
Management Accountant TV Robin Bauman.
Your Committee on Finance recommends acceptance of the post-audit Financial Audit Repor[ of
the County of Haw'ai'i fr~r [he Fisca[ Year Ended June 30, 200-F, as prepared by KPMC LLP.
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AYES NOES A&E EX Respectfully submitted,
ARAKAKI X
HIGA X COMMITTEE ON FINANCE,
HOFFMANN X
HOLSCHUH X
- I Qy4-dV~-e-(%
IKEDA X _ ~
ISBELL X V[RG[NIA ISBELL, CHAIR
.IACOBSON X FC REPORT NO. I I 1
PILAGO X
SAFARIK X _ ADOPTED: JUL 2 2 ZOOS