HomeMy WebLinkAboutCOM 0589.000 2010-2012 Colleen M.Schrandt AV.'d tt!//;. 3
Legislalive Audiror
q f OF BHP��.
alailing Address: Business.1 cic/ress:
Ilaical.'County Building 1266 Kamc hameha
2?.lupuni Street C.fixft±Tr of lia ai G i Ironworks Budding. Room:1-1
/lilo. lluiaai'i
96720 Milo, llcnrai i 96-201
OFFICE OF THE LEGISLATIVE AUDITOR
Telephone: (808) 961-8386 Facsimile: (808) 961-8905
2�
o
MEMORANDUM
Date: February 14, 2012
lo: Dominic Yagong, Council Chairperson
N J
and Members of the Hawaii County Council o _
From: Colleen Schrandt, Legislative Auditor y -
Subject: FY 201 1-2012 Audit Plan and Update
In accordance with Hawaii County Charter §3-18(d)(2), I am transmitting below an annual audit
plan, together with an update on performance audits, follow-up audit reviews, and other tasks
proposed by the Legislative Auditor's Office during FY201 1-2012.
New Performance Audits
Department of Parks and Recreation— Facilities Asset Management. On July 20. 2011. the
Legislative Auditor's Office completed a limited scope performance audit (tithe Department of
Parks and Recreation's Facilities Asset Management, and presented its audit report to the
Council's Finance Committee on August 2. 2011. Audit recommendations included implementing
industry best practices for comprehensive asset management including, but not limited to:
(1) updated facility inventories and condition assessments: (2) integrated plans to address
preventative maintenance as well as deferred maintenance, ADA rehabilitation, and hazardous
materials abatement; and (3) prioritized operations and budgeting to meet critical repair needs.
periodic maintenance activities, and manpower and equipment requirements.
Department of Environmental Management— Billing/Collection of Sewer Fees. On November 9.
2011. the Legislative Auditor's Office conducted an entrance conference with the Department of
Environmental Management to discuss a limited scope performance audit of internal controls
related to the Wastewater Division's billing and collection of sewer tees. During the entrance
conference, DEM indicated that it was revising all policies and procedures related to its billing and
ComRn. No. S �S I
Ref. To;
Serving the Interests of the People o/Our Island 1Ref Dote
Ilawai7 County is an Equal Opportunity Provider and[Awhile!.
Council Chairperson Dominic Yagong
and Members of the Hawaii County Council
February 14, 2012
Page Two
collection of wastewater and solid waste fees (current and delinquent). "Therefore, we have
postponed the audit to allow DEM time to complete the process and implement its revised policies
and procedures. We are awaiting DEM's response as to timelines for implementation of a strategic
plan and revised policies and procedures.
Performance Audit Follow-ups
Department of Public Works — CIP Contract Supplements/Change Orders (2008). On July 11,
2011, the Department of Public Works transmitted to our office a spreadsheet of contract
supplements and change orders approved during the period July 1, 2009 through December 31.
2010. To permit comparison of contract supplements and change orders to the entire contract
population, our office requested a spreadsheet of all construction and professional services
contracts active during the same period. On December 8, 2011, DPW provided the requested data.
which we are analyzing and independently corroborating, results of which will he compiled in a
report to the Council and the Mayor and filed with the Clerk as a public record.
Department of Water Supply— Cash Handling and Financial IT Systems (2010). On December 1,
2011, our office transmitted to the Department of Water Supply a request for an update on its
implementation of 2010 audit recommendations for improving internal controls related to its cash
handling and financial IT systems. On January 23, 2012, DWS transmitted its written response.
which we are evaluating for effectiveness of actions reported, results of which will be compiled in
a report to the Council and the Mayor and filed with the Clerk as a public record.
Contract Services
Real Property Tax Review— Resolution No. 76-11. On May 17, 2011, the Council adopted
Resolution 76-11, requesting a review and potential reform of the County of I lawai`i's real
property tax structure. On October 11, 2011, the County of I-Iawai`i and the International
Association of Assessing Officers (IAAO) entered into an Agreement for the performance of a
broad level review of the County's real property tax policy and administration. with the contract
amount of$40,000 being paid from the Legislative Auditor's miscellaneous contract services
account. Between November 15 and 19, 2011, IAAO consultants conducted site visits and
departmental interviews in East and West Hawai`i, and are currently drafting a report that is
tentatively scheduled for presentation to the Finance Committee on April 3, 2012.
County-wide Risk Assessment and Database
The Legislative Auditor's Office has completed development of a database to permit tracking.
updating, and regular reporting to the Council on the status of implementation by County agencies
and programs of audit recommendations. We are completing an updated County-wide risk
assessment survey of County agencies and programs to examine major County functions and
activities in greater detail and at different organizational levels, with plans to distribute the updated
survey in March-April 2012 with results to be reported to the Council and utilized as a basis for
our FY2012-2013 audit plan.