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Home My WebLink AboutBIL 262 Draft 01 2006-2008 VV OI y ~`V ^ COUNTY OF HAWAII STATE OF HAWAII °s Of N~~ BILL NO. 26z ORDINANCE NO. AN ORDINANCE TO INITIATE AN AMENDMENT TO ARTICLE III, LEGISLATIVE BRANCH, COUNTY COUNCIL, OF THE HAWAII COUNTY CHARTER (2000), TO REORGANIZE THE OFFICE OF THE COUNTY CLERK AND COUNTY COUNCIL BY ESTABLISHING AN INDEPENDENT AUDIT FUNCTION WITHIN THE LEGISLATIVE BRANCH THROUGH THE OFFICE OF THE LEGISLATIVE AUDITOR. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to reorganize the office of the county clerk and county council by establishing an independent audit function within the legislative branch through the office of the legislative auditor. This ordinance amends Hawai `i County Charter (2000), article III, Legislative Branch, County Council, section 3-6, Organization of the Council; Officers; Employees, subsection 3-6(b)(4) by deleting provisions for the appointment of the legislative auditor by the county clerk, and subsection 3-6(b)(6) by deleting provisions for the appointment and supervision of staff within the office of the legislative auditor by the county clerk. Furthermore, this ordinance amends Hawaii County Charter (2000), article III, Legislative Branch, County Council, by adding a new section setting forth the independent audit function of the office of the legislative auditor. There is a growing demand for accountability in government by taxpayers, voters, and the public as a whole. This accountability requires an independent assessment of county agencies, executive agencies, and programs to determine the following information: (1) Whether county funds are handled and expended properly in compliance with applicable federal, state, and county laws and regulations; (2) Whether county agencies, executive agencies, and programs are achieving the purposes for which they were funded; (3) Whether county agencies, executive agencies, and programs are acquiring, operating, and maintaining public property, facilities, and equipment economically and efficiently; and (4) Whether county managers have est bushed adequate operating and administrative procedures and practices and internal control syst ms to of ectively utilize and protect public resources. An independent audit function within the legislative branch can provide objective information on the operations of county agencies, executive agencies, and programs; assist county managers in carrying out their responsibilities and services; and help ensure government accountability to the public. Furthermore, recognized government auditing standards can provide a framework for improved government decision-making, oversight, and accountability. Therefore, in an effort to better ensure that county agencies, executive agencies, and programs are held to the highest standard of public accountability, the county council proposes to reorganize the office of the county clerk and county council by establishing an independent audit function within the legislative branch through the office of the legislative auditor. SECTION 2. Section 3-6, Organization of the Council; Officers; Employees, of the Charter of the County of Hawaii (2000), is amended to read as follows: "Section 3-6. Organization of the Council; Officers; Employees. (a) The council shall elect from among its members a chairperson and a vice chairperson, each of whom shall serve at its pleasure. Until such time as the chairperson and presiding officer shall be elected, the mayor shall preside at such meeting, provided that the mayor shall not have a vote. The chairperson shall preside at council meetings. If at any meeting the chairperson is not present or unable to act, the vice chairperson shall then preside. In the absence of the chairperson and vice chairperson, the council shall elect from among its members a temporary presiding officer. (b) The council shall appoint the county clerk which position shall be exempt from civil service laws and classifications. The county clerk shall: (I) Be the clerk of the council. (2) Be custodian of the county seal. (3) Conduct all elections held within the county. (4) Appoint the deputy county clerk [ a °"'h'~Y], with the approval of the council, and such [pesitiexs] os~ ition shall be exempt from civil service laws and classifications. (5) Perform such other functions as the council may prescribe. (6) Appoint necessary staff for which appropriations have been made by the council, subject to civil service laws and classifications, and exercise the same power with respect to the personnel of the clerk's office as the deparhnent heads in the executive branch, with the exception of the office of the legislative auditor." -2- SECTION 3. Article III, Legislative Branch, County Council, of the Charter of the County of Hawaii (2000), is amended by adding a new section to be appropriately designated and to read as follows: "Section 3- Office of the Legislative Auditor. ~ There is established within the legislative branch an independent office of the legislative auditor to be headed by a leeislative auditor who shall be pointed by the county council and shall serve for a period of six years and thereafter until a successor is appointed. ~1) The salarycommission shall establish the salary of the leeislative auditor. (2~ The council by atwo-thirds vote of its membership, may remove the l~islative auditor from office at any time for cause. The legislative auditor shall possess adequate professional proficiency for the office demonstrated by relevant certification such as certification as a certified internal auditor or certifiedkublic accountant or an advanced degree in a relevant field and at least three years of general auditing experience which shall include a minimum of one kear's experience in the field of government auditing A certified internal auditor or certified public accountant shall be preferred All financial audits shall be conducted by a certified_public accountant. ~ The legislative auditor shall submit an annual budget to the county council and appoint necessary staff for which appropriations have been made by the council The legislative auditor and an~staff appointed by the legislative auditor shall be exemgt from civil service laws and classifications. The legislative auditor shall conduct or cause to be conducted: (1) The annual financial audit of the county, as required in article X, Financial Procedures section 10-13, Post-audit. (2) Performance and/or financial audits of the funds programs, services, and operations of env county agency executive agency, or program, as set forth by the legislative auditor in an annual audit plan that shall be transmitted to the county council and the mayor and filed with the county clerk as a public record. (31 Follow-up audits and monitoring of responses to audit recommendations by_audited entities. ~f For purposes of this section "county agency" or "executive agency" includes office department boazd commission agency semi-autonomous agency, or other governmental unit of the county in the executive or legislative branch that is supported in whole or in part, by county funds. -3- ~ For pumoses of carrying out any audit the legislative auditor shall have: (1) Full free and unrestricted access to any county officer or employee. (2) Full free and unrestricted access to and authority to examine and inspect any record of any county agency, executive agency, or program except for any record protected from disclosure b (3) Full free and unrestricted access to and authority to examine and ids ect any property, facility, or equipment of any county agency, executive a¢ency, or program pertinent to the audit or to a contract. The legislative auditor shall conduct or cause to be conducted all audits in accordance with government auditing standards, and shall set forth final audit findines and recommendations in written reports, copies of which shall be transmitted to the county council and the mayor and filed with the county clerk as public records." SECTION 4. Charter material to be repealed is bracketed and stricken. New charter material is underscored. When revising, compiling, or printing these charter provisions for inclusion in the Charter of the County of Hawaii (2000), the reviser need not include the brackets, bracketed material, or underscoring. SECTION 5. If any provision of this ordinance or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. Upon adoption of this ordinance, this council, by appropriate resolution, shall provide that this charter amendment be submitted to the electorate of Hawaii County for approval at the 2008 general election. SECTION 7. The charter amendment proposed in this ordinance shall take effect upon approval by a majority of voters in the 2008 general election. INTRODUCED BYE: ~ p ~et- ~~~T/a'L~ COUNCIL M BER, COUNTY OF HAWAII Hawaii Date of Introduction: Date of 151 Reading: Date of 2nd Reading: Date of 3`d Reading: Effective Date: RL-FE7E~ iC~: Cornm. l0._ 6__._?---- -4-