HomeMy WebLinkAboutREP FC 311 07/06/2006 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: July 6, 2006 RE: Comm. No. 958
PLACE: Council Chambers
TIME: 9:05 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Communication No. 958, reports as follows:
Communication No. 958, transmitted by Deputy County Clerk William E. Smith, dated
June 22, 2006, submits the post-audit Financial Audit Report of the County of Hawai `i for the
Fiscal Year Ended June 30, 2005, and Management Letter dated March 22, 2006, as prepared by
KPMG LLP.
KPMG LLP has issued an unqualified opinion, which opined that the Financial Audit Report, in
all material respects, presents fairly the financial conditions of the County and conforms to
United States generally accepted accounting principles.
This year's Management Letter contains findings and recommendations related to:
? Collection of Receivables
• Landfill receivables have improved due to new requirements for claiming residential
credits and new provisions for trash removal contracts that were established in 2003,
resulting in a 8% decrease in the greater than 90 days balance since June 30, 2003.
• For sewer receivables, the Hawaii County Council adopted Ordinance No. OS-19
(Bi11312, Draft 8) on January 21, 2005, which adds an interest chazge of 1.5% per
month to balances past the 30-day deadline, and making the landowners responsible
for the payments of delinquent sewer service chazges. In addition, the ordinance also
allows the County to take a lien against the property owners for customers with
delinquent balances.
• The Department of Environmental Management concurs with the recommendations
made by KPMG, LLP and will continue to work with the Department of Finance and
the Office of the Corporation Counsel to improve collection efforts. As the auditors
have noted, improvements have been made and the Department of Environmental
Management is continuing their efforts to further reduce the receivables outstanding
for more than 90 days.
Pursuant to Article X, Section 10-13, Hawaii County Charter, the County Council shall provide
at least once every year for an independent audit of the accounts and other evidences of financial
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. 311
At the Finance Committee meeting, KPMG LLP representatives Managing Partner 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 awazds. Also in
attendance from the County's Administration were Controller Deanna Sako, Housing
Administrator Ed Taira, Environmental Management Director Barbara Bell and from
Department of Water Supply Richard Tsunoda.
Your Committee on Finance recommends acceptance of the post-audit Financial Audit Report of
the County of Hawai `i for the Fiscal Year Ended June 30, 2005, as prepared by KPMG LLP.
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