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COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 218 17
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.
WHEREAS, the mission of the Mass Transit Agency is to "provide safe, clean,
convenient transportation services for the residents and visitors to the County of Hawai`i"; and
WHEREAS, in Part I, Volume II, of the proposed operating budget, the Mass Transit
Agency estimates a ridership of 900,000 passengers in fiscal year 2017-2018, and expects to
collect$960,000 in bus fares during that same time period; and
WHEREAS, Section 3-18(d)(2) ofthe Hawai`i County Charter states that the duties of
the independent Legislative Auditor include conducting or causing to be conducted
performance and/or financial audits ofthe funds, programs, services and operations of any
county agency, executive agency, or program, as set forth by the legislative auditor in an annual
audit plan that shall be transmitted to the county council and the mayor and filed with the county
clerk as a public record"; and
WHEREAS, the Legislative Auditor has stated in the Audit Plan Principles section of its
most recent audit plan that"the audit plan is a flexible and dynamic tool that can be amended
throughout the year to reflect changing County risks and priorities"; and
WHEREAS,the most recent audit plan stated in its Planned Audit section that the
Legislative Auditor would audit"cash handling and receipting" in certain departments
throughout the County; and
WHEREAS, information disclosed about the Mass Transit Agency at the special meeting
ofthe Council's Finance Committee on April 13, 2017, and in articles published in West Hawai`i
Today and the Hawai`i Tribune-Herald on April 25 and 30, 2017, respectively, raise reasonable
questions about the security and accountability of cash handling procedures; and
WHEREAS, an audit of the cash handling procedures at the Mass Transit Agency will
identify best practices for securing ride fares, guard against inadvertent or willful
misappropriations of public funds, and provide assurances that proper procedures are being
followed; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the
Legislative Auditor is requested to include in its annual audit plan for fiscal year 2017-2018 a
performance and/or financial audit of the Mass Transit Agency's cash handling system.
BE IT FURTHER RESOLVED that such an audit shall not be initiated until after a
permanent administrator for the Mass Transit Agency has been employed pursuant to Section
2-77 ofthe Hawai`i County Code 1983 (2016 Edition, as amended).
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this
resolution to the Legislative Auditor.
Dated at Kona , Hawai`i, this 23rd day of June 2017 .
INTRODUCED BY:
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d` ' -
1 CIL MEMB ' , '• 1 TY 0; HAWAI`I
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawai`i CHUNG X
DAVID X
I hereby certify that the foregoing RESOLUTION was by EOFF X
the vote indicated to the right hereof adopted by the COUNCIL ofthe KANUHA XCountyofHawaiionJune23, 2.017
LEE LOY X
O'HARA X
ATTEST: POINDEXTER X
RICHARDS X
RUGGLES Xto7 0 2 0
C-300/FC-21Reference:
COUNTY CLERK CHAIRPERSON& PRESIDING OFFICER RESOLUTION NO. 218 17
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