HomeMy WebLinkAboutCOM 1067.004 2006-2008
Phone: (808) 326-5421
BRENDA J FORD Fax: (808)329-4786
Council Member E-Mail: bford@co.hawaii.hi.us
District 7 - Central Kona
••,hOiM~~
HAWAII COUNTY COUNCIL
County of Hawai `i c7
Kailua Trade Center 0t-5 ZZ
75-5706 Hanama Place, Suite 109
Kailua-Kona, Hawaii 96740
V ,
DATE: April 7, 2008 3
Ca
TO: Pete Hoffinann, Chair cn
and Members of the Hawaii County Council
FROM: Brenda J. Ford, Council Member i
RE: Proposed amendment to Bill 262 (Relating to establishing an independent audit
function within the legislative branch through the Office of the Legislative
Auditor)
Below for your consideration are proposed amendments to Bill 262, a bill for 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.
These proposed changes would amend SECTION 3 of the bill by:
1) Removing language that provided that the legislative auditor's salary would be
established by the salary commission;
2) Relocating provisions, relating to the council's authority to remove the legislative
auditor, to another location within subsection (a);
2) Amending language relating to the appointment of staff and the applicability of civil
service laws and classifications to such staff, and
3) Correcting the designation of subsections (f) through (h) to read (e) through (g).
As amended, with the proposed changes to SECTION 3 bolded and ramseyered for illustrative
purposes, this SECTION would read:
"Section 3- . Office of the Legislative Auditor.
(a) There is established within the legislative branch an independent office of
the legislative auditor to be headed by a legislative auditor who shall be
appointed by the county council and shall serve for a period of six years,
Comm. /O4
Ref. To:
Ref. Dote
April 7, 2008
Page 2
and thereafter, until a successor is appointed. The council, by a two-
thirds vote of its membership, may remove the legislative auditor
from office at any time for cause.
[(I) The 1. shall establish the Sala` , of the
legislative audite*
1
by a two thirds vote of its member-ship, may
(2) The
remove the legislative auditor fr-ofn offlee at any time A
exuse-.]
(b) The legislative auditor shall possess adequate professional proficiency for
the office demonstrated by relevant certification, such as certification as a
certified internal auditor or certified public 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 year'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.
(c) The legislative auditor shall submit an annual budget to the county council
land appoint neeessary staff for- whieh appropriations have been
made by the eouneil. The legislative auditor- and any staff appointed
by the legislative auditor- shall be exempt ffom eivil seiwiee laws and
elassifieatiens]. The legislative auditor on behalf of the county council
shall hire the necessary staff for which appropriations have been
made by the county council.
(d) 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 any 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.
(3) Follow-up audits and monitoring of responses to audit
recommendations by audited entities.
[(01e For purposes of this section "county agency" or "executive agency"
includes any office, department, board, 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.
April 7, 2008
Page 3
[(g)]f For purposes 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 by law.
(3) Full free and unrestricted access to and authority to examine and
inspect any property, facility, or equipment of any county agency,
executive agency, or program pertinent to the audit or to a contract.
[(h)lg The legislative auditor shall conduct or cause to be conducted all audits in
accordance with government auditing standards, and shall set forth final
audit findings 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."
A version of the bill that incorporates the proposed amendments is attached. In this attachment,
the new language is bolded for illustrative purposes.
BJF/Ic
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 HAWAI`L•
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 Hawaii
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 established adequate operating and administrative
procedures and practices and internal control systems to effectively 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:
(1) 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 [and the legislative auditefl, with
the approval of the council, and such [positions] position 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 department heads in the executive branch, with
the exception of the office of the legislative auditor."
SECTION 3. Article 111, 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.
(a) There is established within the legislative branch an independent office of
the legislative auditor to be headed by a legislative auditor who shall be
appointed by the county council and shall serve for a period of six years,
and thereafter, until a successor is appointed. The council, by a two-
thirds vote of its membership, may remove the legislative auditor
from office at any time for cause.
(b) The legislative auditor shall possess adequate professional proficiency for
the office demonstrated by relevant certification, such as certification as a
2
certified internal auditor or certified public 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 year'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.
(c) The legislative auditor shall submit an annual budget to the county
council. The legislative auditor on behalf of the county council shall
hire the necessary staff for which appropriations have been made by
the county council.
(d) 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 any 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.
(3) Follow-up audits and monitoring of responses to audit
recommendations by audited entities.
(e) For purposes of this section, "county agency" or "executive agency"
includes any office, department, board, 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.
~f For purposes 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 by law.
(3) Full, free, and unrestricted access to and authority to examine and
inspect any property, facility, or equipment of any county agency,
executive agency, 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 findings 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."
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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 BY:
COUNCIL MEMBER, COUNTY OF HAWAII
Hawaii
Date of Introduction:
Date of I 't Reading:
Date of 2nd Reading:
Date of 3`d Reading:
Effective Date:
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