HomeMy WebLinkAboutREP FC 323 01/22/1991 OFFICE INFORMATION ONLY
Meeting: February 6 , 1991
Action: Resolution 271-91 was filed at the Council meeting.
Re:
REPORT OF THE
COMMITTEE ON FINANCE
Date: January 22, 1991
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No. 271-91, reports as follows:
Resolution No. 271-91 proposes to authorize 1) that the external
audit contract period be for three consecutive fiscal years
commencing with the audit period ending June 30, 1991; 2) that the
Chairman of the Council perform all of the necessary tasks
associated with the issuance of the contract .
Section 10-13 of the Hawaii County Charter mandates that the County
Council shall provide for an annual independent audit of the
accounts and other evidences of financial transactions of the County
and of every County agency and executive agency.
Section 10-11 of the Hawaii County Charter also requires that any
contract, lease or other obligation requiring the payment of funds
from the appropriations of a later fiscal year or of more than one
fiscal year shall be made or approved by resolution.
In order for the Chairman of the Council to execute the contract, a
resolution approved by the Council is necessary. This action is
necessary by a 1988 opinion which in essence stated that the
Chairman of the Council has no unilateral authority to enter into
contracts on behalf of the Council unless the Council specifically
authorizes him by resolution.
Issuance of a multi-year contract benefits the County by having
lower proposals and continuity. Lower costs are due to start-up
costs being spread over the contract term. Costs for the previous
three years were $77, 000, $80, 800 and $84, 800, respectively.
Your Committee was also made aware that the last bid proposal
resulted in three bids being submitted and, amongst the two low
bids, there was a difference of about $1, 000 . Bid figures show a
substantial discount .
FC REPORT NO. 323
ADOPTED:
4 , •
FC- 323 Page 2 January 22, 1991
Your Committee on Finance concurs with the intent and purpose of
Resolution No. 271-91 and recommends its adoption.
HELENE H. HALE, CHAI WO N
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ROBER H. MAKUAKANE, VICE CHR. BRIAN J DE LIMA, MBER
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HARRY S. •UDDLE, MEMBER S` NCER K. SCHUTTE, MEMBER
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