HomeMy WebLinkAboutComm No 0004.05 - Legislative Auditor Presentation for Sept 14Office of the Legislative Auditor
BONNIE S. NIMS, CGAP, Legislative Auditor
Hawaii County Charter Section 3-18 establishes and defines the Office of the Legislative
Auditor.
Overview of Operations
• The Office of the Legislative Auditor conducts performance and financial audits, as well as
follow-up audits to monitor the status of prior audit recommendations. In addition, we
coordinate the financial statement and federal single audits of the County with an
independent CPA firm.
• Our mission is to serve the citizens and Council of Hawai'i County by promoting
accountability, fiscal integrity, and openness in local government. Our work is intended to
assist County government in its management of public resources, delivery of public services,
and stewardship of public trust. We do this by recommending specific actions that will
address the issues we raise, and by providing valuable information to the public, program
leadership, the Mayor, and the County Council.
• To quote the US Government Accountability Office (GAO) "Audits provide essential
accountability and transparency over government programs." Specifically, our audits
o examine the use of public funds;
o evaluate the effectiveness, economy, or efficiency of County operations and activities;
and
a provide value-added findings and recommendations to County management, officials,
and citizens in an objective and independent manner.
Impact of County Charter on Operations
Section 3-18 of the County Charter provides us the authority and framework to perform
independent performance and financial audits of County funds, programs, and services. For
example, the Charter:
• defines the Office as independent and to be headed by a 6 -year term appointed proficient
and experienced auditor
• provides for full, free, and unrestricted access to
o . County employees and officers;
o County records (except as protected under law, rule, or privilege);
o County properties, facilities, or equipment; and
o administer oaths and subpoena witnesses and compel the production of records
• requires the Office to conduct audits in accordance with GAO's Government Auditing
Standards. These standards set the framework for performing high-quality audit work
Comm. No. 4.5
with competence, integrity, objectivity, and independence to provide accountability and to
help improve government operations and services.
Proposed Charter Amendments
We request two changes to Section 3-18 of the County Charter. We request official name
changes:
FROM: TO:
"Office of the Legislative Auditor" "Office of the County Auditor"
"Legislative Auditor" "County Auditor"
Why are we requesting a name change?
• We have been an official independent audit Office since 2008 and are responsible for
auditing all County agencies or programs.
• The current title of "The Office of the Legislative Auditor" or "Legislative Auditor" could imply
that we only audit the legislative branch of the County, not the County as a whole.
• GAO and best practices recommends that all matters relating to audits, auditors, and the
audit organization must be independent from the audited agency. While the Charter does
require and clearly recognize the Office as independent, the current name could be
misinterpreted. This is a fact versus appearance issue. As auditors, we must be
independent in both fact and appearance.
• Finally, two other Counties (Maui and Kauai) are referred to as the "Office of the County
Auditor" and Honolulu City & County is called "Office of the City Auditor".
➢ In summary, by making this slight name change, it better defines who we are, clarifies
any independence confusion, and brings us in line with our peers and other audit
offices in the State.