HomeMy WebLinkAboutRES 042 Draft 01 1992-1994.-
COUNTY OF HAWAtt STATE OF HAWAII
RESOLUTION N0. '~ 93
WHEREAS, the Financial Audit Report of the County of Hawaii for
the fiscal year ending June 30, 1992 included an observation and
recommendation relating to discrepancies in the operating reserve
balances reported by the Office of Housing and Community Development
(OHCD) and the Department of Finance - Accounts Division; and
WHEREAS, the Committee on Finance concurs with the
recommendation that the discrepancies need to be investigated and
reconciled; and
WHEREAS, Section 8 of Contract No. 91133 provides that the
Chairman of the County Council may extend the scope of the
examination should the need for a more detailed examination exist;
and
V?HEREAS, pursuant to Section 8 of the Contract, the external
auditors have submitted their proposal as herein attached as
Exhibit A for the additional scope of work and their attendant fee;
and
WHEREAS, the Council of the County of Hawaii finds that the
additional work as being proposed is necessary; and
WHEREAS, funds for the additional fees will be paid by the
Office of Housing and Community Development.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF
HAWAII that it approves the extension of the scope of Contract
No. 91133 to encompass the additional work as delineated by
Exhibit A of this resolution.
BE IT FURTHER RESOLVED that the Clerk of the County of Hawaii
transmit a copy of this resolution to the Director of Finance.
Dated at Hilo, Hawaii, this 7th day of April 1993.
INTROD D BY ~
oun i ember, County of Hawaii
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii
Hilo, Hawaii
I hereby certify that the foregoing RESOLUTION was by
the vote indicated to the right hAsreofisldopted by9 3e COUNCIL
of the County of Hawaii on 77 9 .
AYES NOES AHS EX
ARAKAKI X
~_pggp~ X
CHILDS
DE LIMA X
DGMINGO X !
HALE X
gAT!-l X
F20SEEiILL X
g X
~wOr- RPfet'PBC~ C-228/FC-27
& PRESIDING OFFICER E~LiTTICIV NO. ~i 93 _
AMENDMENT TO CONTRACT (NUMBER 91133)
THIS AGREEMENT, made this day of 1993,
by and between the COUNTY OF HAWAII, by the Chairman of the County
Council, hereafter referred to as the "COUNTY," and DELOITTE &
TOUCHE, whose business and mailing address is 345 Kekuanaoa Street,
Hilo, Hawaii 96720 hereafter referred to as the "CONTRACT AUDITOR,"
WITNESSETH THAT:
WHEREAS, the COUNTY and the CONTRACT AUDITOR entered into a
Contract (No. 91133), dated May 14, 1991; and
WHEREAS, the Hawaii County Council approved Resolution
No, approving the extension of Contcact No. 91133 to include
the additional scope of work as delineated in the attached exhibit
(Exhibit A).
WHEREAS, the cost of the services under this amendment to the
Contract is to be paid from the Office of Housing Account
No. 152-461-5466.02-115.
NOW, THEREFORE, the COUNTY and the CONTRACT AUDITOR hereby agree
to extend the scope of the Contract (NO. 91133) as entered into on
May 14, 1991 by incorporating the additional work as proposed in the
attached exhibit, Exhibit A. The fee for the additional work shall
not exceed $25,000.
BF. IT FURTHER RESOLVED that if the CONTRACT AUDITOR finds that
the condition of the records or other circumstances disclosed by the
examination make it impossible to fulfill the scope of services as
expressed in Exhibit A, the CONTRACT AUDITOR shall notify the
Chairman of the County Council in writing of said circumstances.
The County Council shall review the submittal by the CONTRACT
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be duly executed, as of the day and year first written
above.
COUNTY OF HAWAII
By
Chairman, Hawaii County Council
DELOITTE & TOUCHE
By
Partner
EXHIBIT "A"
Deloitte ~
Touche
March 8, 1993
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Suite 1200 Telephone: (808) 543-0700
1132 Bishop Street Facsimile: (808) 526-0225
Honolulu, Hawaii 96813-2870
Attention: Mr. Harry Takahashi, Legislative Auditor
Ladies and Gentlemen:
At your request we aze pleased to present our proposal to provide accounting services to the
County of Hawaii.
BACKGROUND
In connection with our audit of the general purpose financial statements of the County of Hawaii
for the year ended June 30, 1992, we issued our report to management dated November 4, 1992.
In our report we noted that the operating reserve balance for the Section 8 Rental Certificate
Program as reported by the Office of Housing and Community Development (OHCD) differed
from the operating reserve balance as reported by the Department of Finance -Accounts Division.
We noted a difference of $1.1 million at June 30, 1992. We recommended that the difference be
investigated and reconciled.
We understand that due to time constraints, personnel at OHCD are unable to reconcile the
accounts.
SCOPE OF SERVICES
Our goal is to reduce the difference between operating reserves reported by OHCD and by
Accounts Division to within at least $40,000. To accomplish this we will:
Research and identify transactions recorded at OHCD and at Accounts Division to
determine differences.
• Identify major categories of differences representing reconciling items.
• Propose adjusting journal entries to either OHCD or Accounts Division, as appropriate.
• Review proposed adjusting journal entries with OHCD or Accounts Division personnel as
appropriate.
DeloitteTouche
Tohmatau
Intan~ationat
County of Hawaii
March 8, 1993
Page 2
We understand personnel at OHCD will be available to assist us with retrieval of accounting
records and documents.
DELIVERABLES
We will provide the County of Hawaii with the following:
A progress report at least every two weeks, to the Legislative Auditor, once our work
begins.
Copies of our analysis of reconciling items and proposed adjusting journal entries.
We cannot guarantee that we can reconcile the difference to within $40,000. If we cannot do so,
we will provide the County of Hawaii with recommendations as to how the County should
proceed to resolve the difference.
TIMING AND FEES
We plan to perform our work during the period April 19, 1993 to June 25, 1993. We estimate
our fees not to exceed $25,000 plus Hawaii general excise tax. Our fees are based on our rates
specified in our contract with the County of Hawaii to provide financial post audits and systems
and procedures examinations for the fiscal years ended June 30, 1991, 1992 and 1993. More
specifically, the rates will be 1993 rates by classification of personnel as indexed in such contract.
We expect to complete our work in no more than 300 hours. Should we complete our work for a
lower fee, we will bill you a lesser amount. We will not exceed our fees without prior approval
from you.
Yours very truly,
John T. Marrack
Partner
\dh:089
DELOITTE & TOUCHE