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Home My WebLink AboutCOM 0304.000 2014-2016Dru Memo Kanuha Bonnie S. Nims, CGRP L,,olative Auditor Chair Presiding OJJtcer y' Council District J Business Address �rr'r o:"x�r•�,� 1266 Kamehameha Aumae suite A -s Hila, l/mrai'i 96]2/1 (9nnnt>y of "Nawai`i OFFICE OF THE LEGISLATIVE AUDITOR "- 25 Aupuni gave, I ile. llawai , 96720 • (808) 961-8386 ' F. (808) 961-8905 2; website: ham. h, o unl. 1- e-mail uhliclaora)eo hawaiehius00 ID N DATE: April 28, 2015 $ TO: Honorable Din Marna Kanuha and O Members of the Hawaii County Council W FROM: Bonnie S. Nims, CGAP, Legislative Auditor SUBJECT: Follow-up Review of Taketa, lwata, Hara & Associates, LLC. Agreed -Upon Procedures Regarding the 2012 Primary and General Elections This letter transmits for your review, deliberation and acceptance, the Follow-up Review of Taketa, lwata, Kara & Associates, LLC. Agreed -Upon Procedures Regarding the 2012 Primary and General Elections. Pursuant to the 2012 Hawaii County Charter Section 3-18(d)(3), the Office of the Legislative Auditor conducted a review of the status of actions taken by the Office of the County Clerk and the Elections Division in response to the recommendations made by Taketa, Iwata, Hara & Associates, LLC. (TIH) Certified Public Accountants and Consultants Agreed -Upon Procedures Regarding the 2012 Primary and General Elections in report dated January 6, 2014 (Resolution I 11-13, Draft 2). Please contact me at 961-8386 if you have any questions about the status of recommendations discussed in the attached letter. Enclosures cc: Patricia Nakamoto, Elections Program Administrator Stewart Maeda, County Clerk BSN/mp Ilaroo i County is an Equal Opportunity provider and Emplover Comm. No.__�_ Ref. To: Ref. Dote MAY 04 2015 Dru Mamo Kanuha Bonnie S. Nims, CLAP Chair & Presiding Ogicer �! "!w, Legislative Auditor Council Dish,( •' hmmess Address 1266 Kamehameha Avenue sun, AA //fifi �'1ttunfvT of Pawatrt Htla. Hawal'i 96720 OFFICE OF THE LEGISLATIVE AUDITOR r' 25 Aupuni Street Hilo. Hawai t 96920 • (808) 961-8386 • Fax (808) 961-8905 CD,7 webvte LOp hoo,o mn-gnr e -mad: p fclaola /aw iihiu.c LCD DATE: April 28, 2015 _gin ym TO: Honorable Dru Marro Kanuha and W Members of the Hawaii County Council e v W FROM: Bonnie S. Nims, CGAP, Legislative Auditor SUBJECT: Follow-up Review of Taketa, Iwata, Hara & Associates, LLC. Agreed -Upon Procedures Regarding the 2012 Primary and General Elections In accordance with Hawaii County Charter Section 3-18(d)(3), the Office of the Legislative Auditor conducted a review of the status of actions taken by the Office of the County Clerk and the Elections Division in response to the recommendations made by Taketa, Iwata, Ham & Associates, LLC. (TIH) Certified Public Accountants and Consultants Agreed -Upon Procedures Regarding the 2012 Primary and General Elections in report dated January 6, 2014 (Resolution I 11- 13, Draft 2). We found the Elections Division has adequately resolved 15 of I IH's 23 recommendations in the 2014 election cycle. Not all of TIH's numbered items contained a recommendation. There were eight recommendations deemed not applicable since the Office of the County Clerk -Council Services employees did not work the 2014 election cycle. We may consider these issues in future performance audits. To perform this review we gathered and analyzed information from a number of sources. Specifically, we: • Analyzed data reports from Eden's Fiscal and Resource Enterprise Software for Hawaii County (FRESH) system to compare reconciliation processes against County best practices for the review period January 1, 2014 to November 15, 2014. • Corroborated information through interviews with appropriate personnel to clarify Election Division processes and practices related to TIH's recommendations. • Reviewed and performed tests of documents and internal controls as supplied by the Elections Division. iiawai'i County is an Equal Opportunity Provider and Employer Honorable Dru Mamo Kamm and Members of the Hawai"i County Council April 28, 2015 Page 2 of 6 Status of TIH's 23 recommendations: DONE 15 Have been fully implemented ]tl l A I'I'LICa Bl.1: 8 Deemed not applicable OPEN 0 Remain unresolved Please see below for details on the implementation status of each recommendation. During the 2012 audit period, the Elections Division experienced significant changes in temporarily assigned positions responsible for payroll and accounts payable duties. This was a substantial contributing factor to the recommendations. The Elections Program Administrator and Elections Program Specialist were on authorized extended leave during the 2012 election cycle and returned to work status on December 4, 2012. Upon return of the Election Program Administrator and the Elections Program Specialist, the Election Division immediately re - implemented their current written policies, procedures, and County best practices for accounts payable, budgeting, and payroll processes. This included the daily supplemental timekeeping program used to determine the reimbursable amounts submitted to the State Office of Elections. The Elections Division's controls over salary and wages, non -payroll expenditures, and the timekeeping program are currently in place and operating as designed. We continue to recommend the Elections Division maintain an adequate level of program review, monitoring and oversight. Recommendation Status as of April 2015 H Status TIH's Recommendation Status Detail 1 COH Elections Division Salary and Wages: 1. a. i. DONE Keypunched dates should be verified against Implemented in timesheet dates. December 2012 1. a. ii. DONE Keypunched hours should be verified against Implemented in timesheet hours. December 2012 1. a. iii. DONE Original signed timesheets should be filed Implemented in immediately after they are returned from the payroll December 2012 department. 1. a. iv. DONE Timesheets should include adequate descriptions for Implemented in overtime hours. December 2012 1. a. v. DONE Communication between management and staff Implemented in should be improved to prevent unnecessary overtime. December 2012 Hau,ai'i County is an Equal Opportunity Provider and Employer Honorable Dan Mamo Kanua and Members of the Hawaii County Council April 28, 2015 Page 3 of # Status TIH's Recommendation Status Detail 2 COH Elections Division Non -Payroll Expenditures: 2. a. i. DONE We recommend that the Elections Division comply Implemented in with Legislative Branch Spending Guidelines for December 2012 pCard purchases which requires that itemized receipts, detailing what was purchased and the purpose, are submitted with monthly purchase reports. 2. a. ii. DONE We recommend that the differences between the Implemented in recorded amounts and the supporting travel December 2012 certificate be adequately explained and approved. Account clerks should exercise greater cue when entering information into the Eden report. 2. a. iii. DONE We recommend that the Elections Division Implemented in employees abide by the guidelines and submit December 2012 certificates of travel within the filing period. 2. a. iv. DONE We recommend that Elections Division employees Implemented in abide by County procedures by retaining the original December 2012 supporting documents for submittal to the Finance Department, and by informing the Purchasing Division when transactions exceed $1,000. 2. a. v. DONE We recommend that transactions are recorded in the Implemented in proper account. [Regarding Other Current Expenses December 2012 (OCE) transactions]. 2. a. vi. DONE We recommend that transactions are recorded in Implemented in proper account. (Regarding advertising transactions December 2012 for Charter Amendments). # Status TIH's Recommendation Status Detail 5 COB Elections Division Reimbursement of County of Hawaii Election Cycle Cost by the State of Hawai"i: 5. d. i. DONE Prior to the 2012 election cycle, temporary clerks Implemented in June completed a daily supplemental timesheet. This 2014 timesheet categorized the work by reimbursable cost center and cost code and was entered into the Elections Division's Microsoft Access Timekeeping Program on a weekly basis. The Timekeeping Program summarized the overtime and created the Hau,ai'i Counly is an Equal Opportunity Provider and Employer Honorable Dru Martin Kanua and Members of the Hawaii County Council April 28, 2015 Page 4 of 6 Haao'i County is an Equal Opportunity Provider and Employer reimbursable overtime schedule submitted to the State Office of Elections. This procedure should be reinstated. 5. d. ii. Ni.\ Council Services employees should complete a daily Clerk -Council Services supplemental timesheet with adequate detailed employees did not descriptions for overtime to allow for the work the 2014 election categorization of work by reimbursable cost center cycle and cost code. # Status TIH's Recommendation Status Detail 6 County Clerk -Office of the Council Services Overtime Salaries and Wages Incurred for Elections Division Work/Task for the 2012 Election Cycle: 6. b.i. \ Keypunch dates should be verified against timesheet Clerk -Council Services dates. employees did not work the 2014 election cycle 6. b. ii. N/A Keypunched hours should be verified against Clerk -Council Services timesheet hours. employees did not work the 2014 election cycle 6. b. iii. \ Original signed timesheets should be filed Clerk -Council Services immediately after they are returned from the payroll employees did not department. work the 2014 election cycle 6. b. iv. \;.\ Supervisors should ensure that there are adequate Clerk -Council Services descriptions for overtime hours before approving employees did not timesheets. work the 2014 election cycle 6. b .v. N/A We recommend that management update the Clerk -Council Services procedures manual as soon as procedural changes are employees did not implemented and notify employees of such changes. work the 2014 election cycle 6. b. vi. \ Keypunched hour codes should he verified against Clerk -Council Services timesheet. employees did not work the 2014 election cycle 6. b. vii. The County of Hawai"i should consistently adjust Clerk -Council Services their payroll expenditures for Council Services employees did not employees that are temporarily assigned to the work the 2014 election Elections Division. c cle Haao'i County is an Equal Opportunity Provider and Employer Honorable Dru Memo Kanua and Members of the Hawaii County Council April 28, 2015 Page 5 of 6 # Status TIH's General Recommendation Status Detail 9. a. DON F We recommend that the Office of the County Clerk's Continuous review of and Office of Elections' management review the Clerk -Council Admin Administrative Manual of the Hawaii County Manual dated Council and the Office of the County Clerk with all 11/23/2010 with Clerk - employees and stress the importance of complying Council staff, with the manual. Review of Clerk - Council Admin Manual with new in -coming staff: December 2012 and December 2014; Revised Clerk -Council Admin Manual dated February 2, 2015 disseminated on February 2, 2015 to Clerk -Council and Elections Division staff; Review of 2012 Election Employee Manual with Election Division staff: January 2, March 1, and June 1, 2012; May 1, and August 1, 2013; Review of 2014 Election Employee Manual with Election Division staff: January 6, March 3, and June 2, 2014. 9. b. DONE We recommend that employees exercise greater care Implemented in in recording and transferring information for the December 2012 accurate recording of all expenditures. 9. c. DONE Management should monitor the employee's efforts Implemented in in the first two general recommendations and December 2012 improve communications with employees to ensure effective and efficient service. Hauni'i Coumy is an Equal Oppwtunity Provider and Employer Honorable Dm Memo Kama and Members of the Hawaii County Commit April 28, 2015 Page 6 of 6 Acknowledgements We wish to thank the Office of the County Clerk and the Elections Division for their cooperation and prompt feedback with this follow-up review. Maxinne Pacheco, Audit Analyst, conducted this review. Bonnie S. Nims, Legislative Auditor, was the project supervisor. Please contact Bonnie S. Nims at 961-8386 if you have any questions about the status of recommendations discussed in this letter. cc: Patricia Nakamoto, Elections Program Administrator Stewart Maeda, County Clerk Hawai'i County is an Equal Opportunity Provider and Employer