HomeMy WebLinkAboutCOM 0496.002 2006-2008
CASEYJARMAN ~1T.o. N~ KENNETH G. GooDENOw
COLIK(J~ CjeYk •'~1~ Deputy Courr77~ Clerk
COLLEENSCHRANDT
Legi.ela~ice .1 udilor
e~~'~`
Mailing Address- os•M~~~ Business.-Iddre ss:
(Former County Buildiny,J 333 KT[auea :I venue, Second P(unr
Aupuni S[reev Hen Franklin Building
Vila, Hawaii I6 X30
Milo. Hawai7 96'20
County of Hawai 'r
Office of the County Clerk
Telephone: BOH/ 961-825 Facsimile- BOS/ 961-H912
Date: September 20, 2007
To: Pete Hoffmann, Chairperson
And Members of the County Council
From: Colleen Schrandt ` -
Legislative Auditor
Enclosed for your information and review is a letter from KPMG LLC requesting an
increase of not more than $10,000 in additional funding to Contract No. 000756 (Conduct
Audits of the Accounts and Financial Transactions of the County of Hawai`i), as there
has been a change in the scope of their services for additional agreed upon procedures
pertaining to the Wireless Enhanced 91 1 Fund.
The Hawaii County Police Department received a written communication from the
Wireless Enhanced 911 Board (Board) requiring a review of departmental procedures
relating to purchases of various Public Safety Answering Point (PSAP) hardware,
software and services in providing Wireless 91l capability to our County. 1•he purpose
of this review is to provide the following assurances to the Board:
l . The PSAP hardware, software and services were procured in accordance with
County procurement policy.
2. The hardware and software are properly identified as an active part of the
PSAP inventory.
In addition, the communication from the Board mentions that the County will receive
reimbursement for the incremental cost of the additional procedures, or any portion
thereof, that specifically relates to the items listed above.
Should you have any questions, please contact me or Lane Shibata, Audit Analyst.
Atts.
Comm. No. ~ ~ ~ • ~
Ref. To: C.
Ref. irate P 2 200
Serving the /nreres(s oj~he People oJOur /stand
Hawaii County ie an Egual Oppor(unity Provider and Ernplover
IF
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STATE OF HAWAII
WIRELESS ENHANCED 911 BOARD
Iuh,~ 15.2007
Ms. I:ay' Oshiro
c-'o Police Dcpanment, raw~rv c.t T (arvaii
±a9lCapiolani Street
Hilo, FIawaii 967?t?-3945
Dear :t1s. Oshiro=
The purpose of this letter is to enlist your help to satisty the 11'irclcs Enhanced 9] 1
Board s fidueiary responsibilitias as overseers of the Wixelesc Enhanced yI 1 Fund. As
recipients of reimbursements for various PSAP hardware, software, and service puzettasr~s
to provide wireless E 911 capability to yoltr county, we arc required to audit the
disbursements the Board has autharizccl to y owr county to provide assurances that
1. T1rc hardware, svftware, and services were procured accozdir,g to your c,utnty°s
procttrement policy.
2. The hardware and sohwarc is properly irdencified as an active part cfthe PS_1P
inventory.
In order to facility+e this process, we are regt.teating that as a pv-t of your annual cnurny
independent audit, you request art "additional agreed upvtt procedure" from the
independent auditorto Ittocide us with the neressary assurance as listed above. the
Board is also prepared to reimburse your eaanty for the inuxenaental cost of thi audit or
ary portion thereof, spcciiiaally related to the items listed above. Please also he advised
iliat any unsatisfactory result cmanatin~ &arn the audit must be corrected before future
reimbursements will be authorized.
]f thc~e are aoy yuestlans, please do no! hesitl.e to r_till me at 803.943-9:i4~ or tLuotlth
email at pkahue!a~akimekatech.com. Mahaln for your help.
Sincerely, p
r~ty.,~--.~
Philip ahue, E?cecrativc Director
R'ireless Enhanced 911 Board
i 600 Kapiolari Blvd.. Suite 530
Hon+ilulu,ll[ 96514
LnAr-[~~
KPMG LLP Telephone SO8 631 7286
PO Box 4150 Fax SO8 541 9321
Honolulu, HI 96fl12-41 W Inteiner www us kpmg com
September 13, 2007
PRIVATE
Ms. Colleen Schrandt
Legislative Auditor
County of Hawaii
Hawaii County Building
25 Aupuni Street
I~lilo, Hawaii 96720
Dear Ms. SchrandC
This letter will confirm our understanding of the terms of our engagement to report upon our
examination of your assertion that the County of Hawaii (the County) was in compliance with
the letter from the State of Hawaii Wireless Enhanced 9] I Board, dated July 78, 2007, requiring
that County to ensure that (1) the hardware, software, and services procured with disbursements
from the Wireless Enhanced 911 Fund were done so in accordance with the County's
procurement policy, and (2) are properly identified as an active part of the Public Safety
Answering Poinl inventory durng the year ended .lure 30, 2007. The following paragraphs
describe the objectives of our engagement and the nature and limitations of the services we will
provide.
We will conduct the examination in accordance with standards established by the American
Institute of Certified Public Accountants with the objective of expressing an opinion as to
whether the hardware, software, and services procured with disbursements from the Wireless
Enhanced 91 I Fund were in compliance with the letter from the State of Hawaii Wireless
Enhanced 911 Board, dated July 18, 2007. Accordingly, we will perform such procedures as we
consider necessary in the circumstances to provide a reasonable basis for our opinion. Our
report will be addressed to the Legislative Auditor of the County.
The County agrees that all records, documentation, and information we request in connection
with our examination will be made available to us, that all material information relevant to its
assertion will be disclosed to us, and that we will have the full cooperation of the County's
personnel. At the conclusion of the engagement, management agrees to supply us with a
representation letter that, among other things, will confirm management's responsibility for the
presentation of the assertion, and that all records, documentation, and information relevant to
the assertion have been made available to us. The written representations, specitic inquiries of
management, and the results of our other examination procedures comprise the evidential matter
we will rely upon in forming our opinion on the assertion. Because of the importance of
managements representations to the effective performance of our services, the County will
KPId~. I I P s u b I~nw~oi L.,LAnv p~~~~~'"~sM1q~, is mo ll ti
• ~,r
Page 2
Ms. Colleen Schrandt
County of Hawaii
September 13, 2007
release KPMG L.I,P (KPMG) and its personnel from any claims, liabilities, costs and expenses
relating to our services under this letter attributable to any misrepresentations in the
representation letter referred to above.
The work papers for this engagement are the property of KPMG. In the event KPMG is
required pursuant to subpoena or other legal process to produce its documents relating to
engagements for the County in judicial or administrative proceedings to which KPMG is not a
party, the County shall reimburse KPMG at its standard rates for its professional time and
expense, including reasonable attorney's fees, incurred in responding to such requests.
We understand that our report will not be used, nor will we be referred to as auditors or attesters
of die assertion, in any document offering securities for sale.
If, during the performance of our attestation procedures, circumstances arise which make it
necessary to withdraw from the engagement, we will communicate to you our reasons for
withdrawal.
Other matters
This letter shall serve as the County's authorization For the use of e-mail and other electronic
methods to transmit and receive information, including confidential information, between
KPMG and the County and between KPMG and outside specialists or other entities engaged by
either KPMG or the County. The County acknowledges that e-mail travels over the public
Internet, which is not a secure means of communication and, thus, confidentiality of the
transmitted information could be compromised through no fault of KPMG. KPMG will employ
commercially reasonable efforts and take appropriate precautions to protect the privacy and
confidentiality of transmitted information.
As a licensed certited public accounting firm KPMG is bound by, and in the performance of its
obligations hereunder shall comply with, AICPA Rule 301 and similar rules and regulations
adopted by the boards of accountancy of the various states regarding confidential treatment of
client information.
Further, for purposes of the services described in this letter only, the County hereby grants to
KPMG a limited, revocable, non-exclusive, non-transferable, paid-up and royalty-free license,
without right of sublicense, to use all names, logos, trademarks and service marks of the County
solely for presentations or reports to the County or for internal KPMG presentations and
Intranet sites.
KPMG is a limited liability partnership comprising both certited public accountants and certain
principals who are not licensed as certified public accountants. Such principals may participate
in the engagements to provide the services described in this letter.
Page 3
Ms. Colleen Schrandt
County of llawaii
September 13, 2007
Based upon our discussions with and representations of management we estimate that fees for
these services will not exceed $10,000. This estimate is based on the level of expertise of the
individuals who will perform the services. fn addition, expenses are billed for reimbursement as
incurred. Circumstances encountered during the performance of these services that warrant
additional time or expense could cause us to be unable to deliver the services within the above
estimates. We will endeavor to notify you of any such circumstances as they are assessed.
Where KPMG is reimbursed for expenses, it is KPMG's policy to bill clients the amount
incurred at the time the good or service is purchased. If KPMG subsequently receives a volume
rebate or other incentive payment from a vendor relating to such expenses, KPMG does not
credit such payment to the client. Instead, KPMG applies such payments to reduce its overhead
costs, which costs are taken into account in determining KPMG's standard billing rates and
certain transaction charges which may be charged to clients.
KPMG member firms located outside the United States and other third-party service providers
operating under our supervision may also participate in providing the services described in this
letter.
We shall be pleased to discuss this letter with you at any time. For your convenience in
confirming these arrangements, we enclose a copy of this letter. Please sign and return it to us.
Very truly yours,
KPMG LLP
.,s~~y
Ralph T. Kanetoku
Partrrcr