HomeMy WebLinkAboutREP FC 021 2017/06/06 (2016-2018) REPORT OF THE
COMMITTEE ON FINANCE
DATE: June 6, 2017 Re: Comm. No. 300/Res. No. 218-17
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 9:08 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Resolution No. 218-17 reports as follows:
Resolution No. 218-17, transmitted by Council Member Sue Lee Loy, via Communication
No. 300 dated May 18, 2017, a resolution requesting the legislative auditor to perform a financial
and/or performance audit on the cash handling procedures of the mass transit agency in fiscal
year 2017-2018.
This resolution requests the Office of the Legislative Auditor to include in its audit plan for fiscal
year 2017-2018 an audit of the Mass Transit Agency's cash handling system and that such an
audit shall not be initiated until after a permanent Transit Operations Administrator for the
agency has been employed.
Ms. Lee Loy stated that this measure would help the department in one area of concern, which is
cash handling. This resolution identifies and requests the Auditor to prepare an audit and that the
audit be perfonned after the agency secures its operations administrator. The current
administrator is under an 89-day contract. Based on the Legislative Auditor's recommendation,
it would be preferable that an audit of the agency be conducted when that position has been
permanently filled.
Council Member Eileen O'Hara stated there needs to be a plan and that rural communities are
where mass transit is a critical service. She also noted that an audit would be helpful because, in
addition to a financial audit, looking at performance will assist with the broader mass transit plan
for the County.
Council Member Tim Richards commented that the audit can be positive and is in the right
direction as it is intended to identify issues, sort them out, and fix it.
Council Member Dru Kanuha inquired as to the process of deciding what kind of audit to
conduct. Ms. Nims responded that in accordance with our County Charter, they are required to
do an annual audit plan based on risk assessment and assessing each County department's
procedures, cash receipts, constituent and Council concerns, and then incorporate them into the
risk assessment. Ms. Nims noted that they conducted a preliminary assessment of Mass Transit
Agency and had identified some weaknesses for which they made verbal recommendations.
FC Report No. 21
FC-21 Page 2 June 6, 2017
Ms. Lee Loy stated that what Ms.Nims described is a preliminary audit that provides
transparency and accountability.
Pursuant to Section 2-77 of the Hawai`i County Code 1983 (2016 Edition, as amended), such an
audit shall not be initiated until after a permanent administrator for the Mass Transit Agency has
been employed.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 218-17,
and recommends its adoption.
•
•
dm
AYES NOES ABS EX Respectfully submitted,
CHUNG X
DAVID x COMMITTEE ON FINANCE
EOFF X
KANUHA X
LEE LOY X 1100 /41111r-
O'HARA X
POINDEXTER x MAILE DAVID, CHAIR
RICHARDS X FC REPORT NO.: 21
RUGGLES X ADOPTED: JUN 2 3 2017