HomeMy WebLinkAboutREP FC 005 01/29/1985 1984-1988 111 REPORT OF THE
COMMITTEE ON FINANCE
Date: January 29 , 1985 Re: Comm. 49
Place: Councilroom
Time: 9 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii
Your Committee on Finance, to which was referred Resolution 15 ,
reports as follows:
The purpose of Resolution 15 is to transfer $8 ,000 from the Housing
Assistance Payment Program to the External Audit account .
The Contract Auditor requested the additional fees for the Federal
single audit work which was done in compliance with Federal
"Attachment P" requirements . The following was cited as the reasons
for the $8 ,000 overrun:
1 . Determining report content and format .
2. Preparation on redrafting of schedules received from county
agenciesdue to confusion in the agencies concerning schedule
content .
3 . Obtaining an understanding of nine different accounting
systems in order to perform required compliance work within
the agencies .
4 . Tracing grant selection from the agencies ' records to the
County of Hawaii records , and reconciling the selected
items , thereto .
Committee discussion clarified that the $8 ,000 was in addition to the
$18 ,000 for an attachment P audit of Federal Assistance Programs .
Total audit fees for the fiscal year 1983-84 would amount to $86 ,500 ;
60 ,500 for the external audit, $18 ,000 for the original attachment P
audit and an additional $8 ,000 needed for completion of the
attachment P audit .
Councilman Schutte expressed his concern that the $8 ,000 was coming
entirely from the County Housing Agency. It was pointed out that the
expense of $26 ,000 was based on a cost allocation plan which was
developed by the contract auditors based on actual expenditures . The
administration was encouraged to have Federally assisted programs
FC REPORT NOS 5
ADOPTED : FEB 8 1985
•
411 411
FC- 5 Page 2 January 29 , 1985
budget for audit expenses to cover the cost of future single audit
work . Such practice would address Councilman Schutte 's concern that
each department be responsible for a fair share of the total audit
fees . Congress recently enacted P. L. 98-502 mandating that Federal
assisted programs participate in a single audit commencing with the
fiscal year beginning after December 31 , 1984 .
Pursuant to Section 10-9 of the Hawaii County Charter relating to
Appropriations: Reduction and Transfer , "the Council , by resolution
effective immediately upon adoption, may transfer , part or all of any
unencumbered appropriation balance from one agency or executive
agency to another . "
Your Committee on Finance concurs with the intent of Resolution 15
and recommends its adoption .
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.FRANK DE LUZ , III, CHAIRMAN
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111/ll c .� .� -• fi - ' (ABSENT & EXCUSED)
L0= RAi\NE R. JillAIKU, VICE CHR-I., JAMES L. K. DAHLBERG, MEMBER
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TAKASHI OMINGO MEM ` RUSSELL KOKUBUN, MEMBER
Di17,tE K. LAI, MEMBER �°` SisENCER K. SCHUTTE, MEMBER
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