COM 0272.004 2012-2014 - Laserfiche WebLink

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J Yoshimoto Lane Shibata Chair&Presiding Officer o0-t V,os e!, Acting Legislative Auditor Council District 2 ■ \4- c*I% Business Address 1266 Kamehameha Avenue Suite A 8 oF' aN= Hilo,Hawai`i 96720 lUnf r f c ahilan OFFICE OF THE LEGISLATIVE AUDITOR - 25 Aupuni Street * Hilo,Hawai`i 96720 * (808)961-8386 * Fax(808)961-8905 website:http://hawaiicountv.gov e-mail:publiclao(&co.hawaii.hi.us C- March 6, 2014 The Honorable J Yoshimoto, Council Chair and Members of the Hawai`i County Council Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 Dear Chair Yoshimoto and Councilmembers: RE: REVIEW OF INDEPENDENT ACCOUNTANT'S REPORT Agreed-Upon Procedures: County of Hawai'i Office of the County Clerk and Elections Division Regarding the 2012 Primary and General Elections I would like to sincerely thank Taketa, Iwata, Hara& Associates, LLC, Certified Public Accountants & Consultants (TIH), for their hard work and effort in preparing this report. Their findings and recommendations provide insight into problematic issues and suggest improved procedures relating to election expenditures incurred by the Office of the County Clerk and the Elections Division. Resolution 111-13 (Draft 2) adopted by the Council on May 15, 2013, was carefully reviewed and all issues were considered during development of the scope of work for this agreed-upon procedures engagement. During our preparation of contract specifications and negotiations with the independent accountant, attestation procedures for this engagement were mutually agreed upon by addressing procedures requested in Resolution 111-13 (Draft 2) as well as the attestation engagement standards of the American Institute of Certified Public Accountants (AICPA). TIH reviewed 2012 election cycle expenditures and compared them to 2008 and 2010 expenditures to identify variances in general ledger account classifications for each election cycle. Summarizing the contents of the findings by independent auditor TIH: • The first critical area related to County of Hawai'i (COH) Elections Division overtime salaries and wages during the 2012 primary and general elections, more specifically the inadequacy of oversight, documentation, and communication of overtime hours. • The second critical area related to COH Elections Division non-payroll expenditures during the 2012 primary and general elections, more specifically TIH found that certain transactions contained inadequate descriptions and supporting documentationCVslve 2.?Z, , Ref.To: F G• Ref. Date MAR 12 2nd