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HomeMy WebLinkAboutRES 487 Draft 01 2004-2006 ?v,w,y4 COUNTY OF HAWAII STATE OF HAWAII •••,ry~O~~M~,~,• RESOLUTION NO. `~Iir A RESOLUTION TO APPROVE THE DEVELOPMENT OF AN AUDIT SCHEDULE BASED ON A RISK ASSESSMENT ANALYSIS BY THE LEGISLATIVE AUDITOR'S OFFICE TO METHODICALLY CONDUCT AUDITS OF VARIOUS DEPARTMENTS AND ACTIVITIES OF THE COUNTY OF HAWAII. WHEREAS, Resolution 99-05, adopted by the Council on June 1, 2005, amended rules of procedure for the Council of the County of Hawaii relating to Rule 22, Legislative Auditor, reads as follows: "1. The Legislative Auditor shall be appointed by the County Clerk with the approval of the Council. Such position shall be exempt from civil service laws and classifications. 2. The Legislative Auditor shall, at the discretion of the Council: (a) Be responsible for the procurement of an Independent Certified Public Accountant to conduct a post audit of the financial transactions of the County. (b) Assist the Council in the adoption of the annual budget. (c) Be responsible for all projects assigned or requested by the Council by resolution. (d) Conduct performance and financial audits of the funds, programs and operations of any agency or operation of the County when requested by the resolution. All audits shall be conducted in accordance with governmental auditing standards. (e) Initiate audits, evaluations or special studies as the Auditor determines may be warranted. 3. Personnel assigned to the Legislative Auditor shall report to the Legislative Auditor, be exempt from civil service laws and classifications, and comply with internal guidelines established by the Legislative Auditor."; and WHEREAS, pursuant to Rule 22 number 2 (d) as stated above, the Council finds that an audit schedule for the Legislative Auditor's Office is warranted; and WHEREAS, an audit schedule would provide a framework for the Legislative Auditor's Office to plan their audits of the various departments and activities of the County; and WHEREAS, an audit schedule would help to ensure timely and regulazly scheduled audits on a rotational basis developed from a risk assessment analysis; and WHEREAS, an audit schedule would be developed after the risk levels for each department are assessed through a matrix of specific criteria established by the Legislative Auditor's Office; and WHEREAS, the criteria for assessing the risk levels in the development of a matrix would include but not be limited to, relevant factors such as: • external auditor's findings and recommendations, • departmental staff size, • departmental fund type, • proposed, actual and prior yeazs departmental budgets (revenues and expenditures), and • departmental divisions and programs; and WHEREAS, an audit schedule would permit the Legislative Auditor's Office to plan and prepaze for each audit which could wazrant contracting with an external auditor, specialist, individual or firm with expertise specific to the audit scope; and WHEREAS, an audit schedule will be used as a planning and scheduling tool by the Legislative Auditor's Office and is understood that it will be dynamic and flexible, allowing for adjustments as necessary due to material changes in the risk assessment or direct audit requests from County Departments, the Mayor, Legislative Auditor or the County Council by Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it approves the development of an audit schedule based on a risk assessment analysis by the Legislative Auditor's Office to aid the office in the efficient allocation of its audit resources. BE IT FURTHER RESOLVED that the Legislative Auditor's Office may initiate further examination into concerns that may arise during the course of each scheduled audit review beyond the scope and objectives adopted by the audit schedule, departmental requests or a Council resolution. BE IT FURTHER RESOLVED that upon completion, the audit schedule shall be transmitted to the Council and the Mayor. BE IT FURTHER RESOLVED that the Council respectfully requests the full cooperation of the Mayor and all departments of the County authorizing the Legislative Auditor's Office to access any requested information, documents, sites or responses relating to the performance of reviews performed per the audit schedule, departmental requests or Council resolution. BE IT FINALLY RESOLVED that a copy of this resolution be transmitted to the Honorable Harry Kim, Mayor and Directors of each Department of the County of Hawaii. Dated at Hilo , Hawaii, this 31st day of October , 2006. INTRODUCED BY: CO CIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE COUnty Of H3Wa1`1 AYES NOES ABS EX Hilo, Hawaii ARAKAKI X HIGA X I hereby certify that the foregoing RESOLUTION was by HOFFMANN the vote indicated to the right hereof adopted by the COUNCIL of the HOLSCHUH X County of Hawaii on October 31, 2006 IKEDA X ISBELL g ATTEST: IACOBSON g PILAGO X SAFARIK . ~ ,/,i'/, 8 0 1 0 Reference: C-1123/FGt350 COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO.