Hawaii County Council members say they are prepared to take action on a recent audit recommendation that the nine-member body address gaps in the county’s purchasing card policy. ADVERTISING Hawaii County Council members say they are prepared to take action
Hawaii County Council members say they are prepared to take action on a recent audit recommendation that the nine-member body address gaps in the county’s purchasing card policy.
“I think it is incumbent upon the council to follow through with the recommendations of clarifying the county code to be in line with state (Hawaii Revised Statutes) in dealing with adjustments and exceptions,” Council Chairman Dru Kanuha said in an email. “It is also important that the rest of the recommendations be fulfilled.”
Doing so, Kanuha said, would ensure accountability throughout the county.
The audit, released Friday by Legislative Auditor Bonnie Nims, found that misuse of the county purchasing cards, or pCards, was limited to Mayor Billy Kenoi’s office and the Department of Liquor Control. It found 164 transactions totaling $29,961 that did not follow county policy, had a questionable public purpose and might have violated state law.
In the 27-page report, Nims made several recommendations, including that the council revise the language of the county code to “clarify that authorized exceptions for travel and other expenses are still required to follow state law requiring public funds to be used for a public purpose.”
Councilwoman Karen Eoff said she supports Nims’ recommendations, and that as chairwoman of the council’s finance committee, she feels “compelled to look closely at clarifying” the county code to address any gaps in existing policy.
“I have spoken to Ms. Nims, and determined that an update to the Hawaii County Code, that public funds be spent for public purposes, should be explicitly stated to more closely follow state law,” Eoff said in an email.
Councilman Aaron Chung said while he’s not opposed to Nims’ recommendations, he isn’t sure they’re necessary, as there already are rules in place. Instead, he wants to focus on — and put a stop to — the growth of pCard use, which he described as “very alarming.”
“Why do so many people have pCards?” he asked. “These pCards should only be reserved for a few people so you have checks and balances.”
In 2014, the county used approximately 236 purchasing cards, spending $1.15 million. There are roughly 2,700 county employees, according to the Department of Human Services.
Councilwoman Margaret Wille said she was not at all surprised the audit concluded the misuse was mainly by the mayor and his staff. She recommended making all purchasing card records available to the public.
“I do think we got to be more accountable, that’s the bottom line … We’re not organized enough, and we’re not transparent enough,” she said.
As for what specific action should be taken moving forward, that’s something the council has to discuss as a whole, she said.
Councilwoman Maile David said via email that she had not yet read the entire audit, but agreed reform is needed.
“If pCards should never be used for personal purposes, then there should be no exceptions, and the rules should clearly say that (regardless whether prior approval is first obtained or whether it will be reimbursed),” she wrote. “Procedures should be made very clear: If it’s not a permitted use to begin with, ‘authorization,’ no matter who does it, certainly should not allow it.”
Councilwoman Valerie Poindexter declined to comment until the audit is discussed before the council.
“I need to get my head wrapped around it first,” she said.
In addition to urging the council to update the county code, Nims recommended county management, including the Department of Finance, treat all employees and departments in a fair and equitable manner, and hold them consistently to the same laws, policies and procedures.
In a written response contained in the audit, Finance Director Deanna Sako wrote: “The Department of Finance has started to require that the mayor’s office also follow the policies and procedures currently in place. We will continue to enforce the rules fairly among all departments.”
Kenoi’s pCard use became the focus of an ongoing investigation by the state attorney general after Big Island newspapers reported he used the card for personal expenses, including visits to Honolulu hostess bars.
While the audit concluded it appears the mayor’s office was “not always held to the same requirements as other departments,” it praised Civil Defense, Human Resources, the Prosecuting Attorney’s Office, the County Council and the Clerk’s Office for having exemplary records and using their pCards correctly.
Reached Tuesday, council members Dennis Onishi and Daniel Paleka said they hadn’t had a chance to review the document. Councilman Greggor Ilagan did not return phone calls and emails seeking comment.
While the audit has not yet been placed on the council’s agenda, Deputy County Clerk Jon Hendricks said it could be discussed as early as the Aug. 4 committees meeting.
Email Chris D’Angelo at cdangelo@hawaiitribune-herald.com.
