HomeMy WebLinkAboutREP FC 092 09/15/2009 2008-2010
REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 15, 2009 Re: Comm. No. 520
PLACE: Council Chambers
TIME: 3:45 pm.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Communication No. 520, reports as follows:
Communication No. 520, transmitted by Legislative Auditor Colleen Schrandt, dated September 1, 2009,
submits the post-audit Financial Audit Report of the County of Hawai `i for the Fiscal Year Ended
June 30, 2008, and Management Letter dated May 27, 2009, as prepared by KPMG LLP. The Report
and Management Letter satisfy the requirement of Section 10-13, Hawaii County Charter, which requires
that an annual independent audit of the accounts and other evidences of financial transactions of the
County and every county agency be conducted.
KPMG LLP has issued an unqualified opinion, indicating that the financial statement present fairly in all
material respects, the financial position of Hawaii County for Fiscal Year Ending June 30, 2008, in
conformance with U.S. generally accepted accounting principles.
This year's Management Letter contains findings and recommendations related to:
? Collection Receivables
• Deficiencies in landfill receivables, the County has continued in its efforts to improve
collections of landfill fees and to reduce the amounts outstanding over 90 days. Despite these
efforts, the amounts outstanding over 90 days as a percentage of total receivables increased
from 36% at June 30, 2007 to 42% at June 30, 2008.
• For sewer receivables, efforts made in previous years, including the passing of a bill to
facilitate the County's collection of past-due sewer charges and an increase in the interest
charge on past-due balances, have resulted in the County maintaining a steady balance in their
overdue category as indicated by the amounts outstanding over 90 days as a percentage of total
receivables of 55% at both June 30, 2008 and 2007.
• KPMG, LLP recommends that the Department of Environmental Management continue to
work with the Department of Finance to improve collection efforts on delinquent accounts.
The Department of Environmental Management plans to fill a new Credit and Collections
Clerk position during 2009, which will focus on the collection of past-due landfill and
wastewater receivables. The addition of this dedicated position should assist in providing
improved collection efforts and address the backlog in the 90 days overdue category for both
landfill and wastewater receivables.
At the Finance Committee meeting, KPMG LLP representatives Managing Partner Nancy Rose and
Senior Auditor Grant Nakagawa made a brief presentation of the scope of the audit services, the results of
the audit, required communications, the Management Letter comments, and the compliance and internal
controls over Federal awards.
FC REPORT NO. 92
Communication 520
September 15, 2009
Page -2-
Your Committee on Finance is in accord with the purpose and intent of Communication No. 520,
and recommends the acceptance of the post-audit Financial Audit Report of the County of Hawai `i
for the Fiscal Year Ended June 30, 2008, and Management Letter dated May 27, 2009, as prepared by
KPMG LLP.
AYES NOES A&E EX Respectfully submitted,
ENRIQUES X
FORD x COM ITTEE ON FINANCE
GREENWELL X
HOFFMANN X
IKEDA X
NAEOLE X CA
ONISHI x DOMINIC YAGONG, AIR
YAGONG x FC REPORT 2
YOSHIMOTO X ADOPTED: nrT nn