HomeMy WebLinkAboutCOM 1282.006 2006-2008CASEY JARMAN
County Clerk
Mailing Address:
(Former County. Building)
25 Aupuni Street
Hilo, Hawaii 96720
Date:
To:
From:
Subject:
County of Hawai `i
Office of the County Clerk
Telephone: (808) 961-8255 Facsimile: (808) 961-8912
KENNETH G. GOODENOW
Deputy County Clerk
COLLEEN SCHRANDT
Legislative Auditor
Business Address:
333 Kilauea Avenue, Second Floor
Ben Franklin Building
Hilo, Hawaii 96720
ra
r�
Q9
MEMORANDUM
August 8, 2008 _ co
Pete Hoffmann, Council Chairperson, and Council Members
Colleen Schrandt, Legislative Auditor &w w i -y,
Auditor's Supplemental Response to DPW Thirty -Day Status Report
dated July 22, 2008
Attached please find the Legislative Auditor's supplemental response to the Department
of Public Works' thirty -day status report on audit recommendations filed as Communication
No. 1282.3.
Caen, No. 1 Z O Z . 4o
Ref. `6o, preseefe&Pw/ iL
Serving the Interests of the People of Our Island
Ref. Date llll[ `i`2r�008--'•
Hawaii County is an Equal Opportunity Provider and Employer
The attached spreadsheet provides an analysis of one professional services contract (C.001031)
issued by DPW, active currently and during the period included in the audit (fiscal year 2006-2007).
The spreadsheet looks at financial data relating to the contract from 3 different sources:
• The physical Department of Finance document certifying that the County has sufficient funds
to pay for the contract.
A contract tracking spreadsheet prepared by a DPW accountant to track the encumbrances
and expenditures by fund account.
• The County's financial accounting system (FRESH) for each of the fund accounts included
on DPW's spreadsheet.
When the data from each of the sources is compared, several items of interest can be noted:
• The total amount encumbered for the project is accurate for all 3 sources when compared
against the actual contract and supplements issued. However, the dollar amounts encumbered
for the individual accounts do not tie from one source to the other.
• While:. the total dollars expended as of the analysis cut-off date reconciles from the DPW
accountant's spreadsheet to the FRESH system, the distribution of amounts expended to the
various fund accounts does not.
• , Actual CIP project expenditures are not necessarily paid from the fund accounts or funding
sources communicated to and approved by the Council.
• Contrary to normal accounting and reporting practice, the County currently has no regular and
frequent report to department managers, the Administration or the Council that links budget to
allocation to actual expenditure for all active capital projects.
o Significantly reducing the County's ability to proactively control project progress and
costs.
o Significantly impeding the Administration's stated goal of public accountability and
transparency.
o This "control" is key to safeguarding of assets against waste, abuse and fraud.
Further issues:
Inefficient use of human resources to enter the same data into multiple systems/applications.
o While this spreadsheet analyzes one contract, the situation is the same for all
contracts and projects. Combining the redundancy of information data entry found
here with the fact that the DPW contract coordinator, engineer, managers and other
personnel are all entering project data into their own stand-alone data application,
then multiplying that by the number of contracts and projects active at any given
time, one can easily understand that the current situation is highly inefficient and
open to error.
• Increased possibility of errors.
o; Data is different depending on which of the three sources outlined above is used.
o There is no regular and timely reconciliation of data from one source to another.
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The attached spreadsheet provides an analysis of one professional services contract (C.001031)
issued by DPW, active currently and during the period included in the audit (fiscal year 2006-2007).
The spreadsheet looks at financial data relating to the contract from 3 different sources:
• The physical Department of Finance document certifying that the County has sufficient funds
to, pay for the contract.
• A contract tracking spreadsheet prepared by a DPW accountant to track the encumbrances
and expenditures by fund account.
The County's financial accounting system (FRESH) for each of the fund accounts included
on DPW's spreadsheet.
When the data from each of the sources is compared, several items of interest can be noted:
• The total amount encumbered for the project is accurate for all 3 sources when compared
against the actual contract and supplements issued. However, the dollar amounts encumbered
for the individual accounts do not tie from one source to the other.
• While the total dollars expended as of the analysis cut-off date reconciles from the DPW
accountant's spreadsheet to the FRESH system, the distribution of amounts expended to the
various fund accounts does not.
• Actual CIP project expenditures are not necessarily paid from the fund accounts or funding
sources communicated to and approved by the Council.
• , Contrary to normal accounting and reporting practice, the County currently has no regular and
frequent report to department managers, the Administration or the Council that links budget to
allocation to actual expenditure for all active capital projects.
o Significantly reducing the County's ability to proactively control project progress and
costs.
o Significantly impeding the Administration's stated goal of public accountability and
transparency.
o. This "control" is key to safeguarding of assets against waste, abuse and fraud.
Further issues:
Inefficient use of human resources to enter the same data into multiple systems/applications.
o While this spreadsheet analyzes one contract, the situation is the same for all
contracts and projects. Combining the redundancy of information data entry found
here with the fact that the DPW contract coordinator, engineer, managers and other
personnel are all entering project data into their own stand-alone data application,
then multiplying that by the number of contracts and projects active at any given
time, one can easily understand that the current situation is highly inefficient and
open to error.
• Increased possibility of errors.
o Data is different depending on which of the three sources outlined above is used.
o There is no regular and timely reconciliation of data from one source to another.
COUNTY OF HAWAII
CERTIFICATION OF AVAILABILITY OF FUNDS
hereby certify that on the date of filing of this contract with the
Director of Finance, there remains an unexpended amount of
$ 32,000.00 in 110.399.5392.46.115
8,000.00 in 110.399.5395.21.115
$ 402000.00 Total
sufficient to cover the obligation of the County of Hawaii under this
contract.
Contract Title: Supp. Cont. #2--Consultant--Three Bridges and
Mohouli/Kumukoa Traffic Lights
Vendor: Harold Sugiyama LLC
Contract No.: c.001031
Director of Finance
Date: Dec. 3, 2007
COUNTY OF HAWAII
CERTIFICATION OF AVAILABILITY OF FUNDS
I hereby certify that on the date of filing of this contract with the
Director of Finance, there remains an unexpended amount of
f10.3f`1..SWs.7-/. //S
�710 p ?a $40;909:90 in 110.399.5397.74.115
*1fr 0 a 0
sufficient to cover the obligation of the County of Hawaii under this
contract.
Contract Title: Construction Management Services for Reed's
Island, Kaahakini, and Kahului Bridges
Vendor: Harold Sugiyama LLC
Contract No.:
o4tti:
c.001031
Or F f
,gc
���/
Director 6f Finance
Date: Feb. 12, 2007
COUNTY OF HAWAII
CERTIFICATION OF AVAILABILITY OF FUNDS
I hereby certify that on the date of filing of this contract with the
Director of Finance, there remains an unexpended amount of
51
$15,000.00 in 110.399.5395115
sufficient to cover the obligation of the County of Hawaii un
contract.
Contract Title: Supp. Cont. #1 -Const. Mgmt. Serv. - TI
and Mohouli/Kumukoa Traffic Lights
Vendor: Harold Sugiyama LLC
Contract No.: c.001031
YY 11li1ViAU, 411 vuild JVV.jV.�J V�
remain unchanged; and
IV
Director of F nance
Date: May 4, 2007
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