Honolulu City Council Policy Resolutions(Link to original Word Processing Version)
86-239
ESTABLISHING A POLICY OF THE COUNCIL OF THE CITY AND COUNTY OF
HONOLULU FOR THE ANNUAL FINANCIAL AUDIT OF THE CITY AND COUNTY OF
HONOLULU.
WHEREAS, Section 3-114 of the Revised Charter of the City
and County of Honolulu mandates the City Council to "...provide
for an independent financial audit of all operations of the city
and all operations for which the city is responsible and of their
funds and accounts for the current fiscal year to be made by a
certified public accountant or a firm of certified public
accountants..."; and
WHEREAS, the City Council wishes to establish procedures
which will insure that the contract for the financial audit of
the City be fairly and openly awarded to that responsible auditor
or auditing firm, which is able to perform the necessary work at
the lowest cost to the City; and
WHEREAS, the City Council recognizes that savings may be
realized through a multi-year arrangement with a single auditor
or auditing firm, but it also wishes to guard against an
arrangement which might result in a long-term monopoly of these
contracts by a single auditor or auditing firm; now, therefore;
BE IT RESOLVED by the Council of the City and County of
Honolulu that the following guidelines be, and they are hereby
established as the policy of the Council of the City and County
of Honolulu governing the annual financial audit of the City and
County of Honolulu:
"POLICY OF THE COUNCIL OF THE CITY AND COUNTY
OF HONOLULU GOVERNING THE ANNUAL FINANCIAL AUDIT OF THE CITY AND COUNTY OF HONOLULU 1. No annual financial audit of the City shall be conducted except under written contract, executed in the name of the City and County of Honolulu by the presiding officer of the City Council, which shall be let under public advertisement for sealed bids as described in this policy.
2. The announcement requesting sealed bids shall be published
at least once in each of two consecutive weeks in a
newspaper of general circulation. The request for bids
shall specify that each prospective bidder shall, not less
than seven calendar days prior to the day designated for
opening bids, give written notice to the Director of theoffice of Council Services (hereinafter referred to as
Director) of the bidder's intention to bid.
The request shall also specify the following:
a. The date, time, and place to submit all bids.
b. The date, time, and place where bids shall be
opened in the presence of all bidders who may
inspect all bids received.
3. The Director shall review all such notices of intention to
bid. In doing so, the Director shall satisfy
himself/herself of each prospective bidder's financial
ability, experience, and competence to carry out the terms
and conditions of any contract that may be awarded. For
this purpose, the Director may require prospective bidders
to submit answers, under oath, to questions contained in a
questionnaire setting forth a complete statement of the
experience, competence, and financial standing of such
prospective bidders. Whenever it appears to the Director
that any prospective bidder is not fully qualified and able
to carry out the terms and conditions of the contract that
may be awarded, he/she shall, after affording such
prospective bidder an opportunity to be heard, inform the
City Council of his/her opinion regarding the inability of
the prospective bidder to fully qualify and carry out the
terms and conditions of the contract that may be awarded.
The Director, with the consent of the Council, may refuse to
receive or consider any bid offered by such prospective
bidder.
All information contained in the answers to questionnaires
shall remain confidential, and questionnaires so submitted
shall be returned to the bidders after having served their
purpose.
4. The request for bids shall require that bidders submit a
price for the four separate years for which the audits are
to be conducted. The auditor or auditing firm selected
shall be the qualified bidder submitting the lowest total
bid price for the four-year period. In his/her evaluation
of bids offered, the Director, with the concurrence of the
Council, may reject any or all bids submitted.
If the lowest bid or any other bid is rejected, or if the
bidder to whom the contract was awarded fails to enter into
the contract, the Director, with the concurrence of the City
Council, may award the contract to the next lowest qualified
bidder.
5. A separate contract shall be executed on an annual basis for
the amount bid by the contract awardee for that specific
year, subject to the availability of funds. The price shall
not be increased unless approved by the City Council.
6. The auditor or auditing firm selected shall be retained for
the four-year period; provided, however, that the Director
may readvertise for a new auditor or auditing firm before
the four-year term is completed with the affirmative vote of
at least two-thirds of the Council.
7. An incumbent auditor or auditing firm shall not be eligible
for the subsequent four-year period.
8. The scope of the annual audit conducted under this policy
shall include, but not be limited to, the following:
a. The financial audit required by Section 3-114 of
the Revised Charter of the City and County of
Honolulu.
b. The audit of the City's fixed assets required for
the City to be eligible for the 'Certificate of
Conformance' pursuant to the guidelines of the
Government Finance Officers Association.
c. The single audit required by and prepared pursuant
to the provisions of the Single Audit Act of 1984
and OMB Circular No. A-128. Provided, however,
that in order to comply with the single audit, the
responsibility of the auditor or auditing firm may
be limited to or include the supervision and
coordination of other auditors and/or auditing
firms if portions of the single audit are
conducted by other auditors or auditing firms. d. The cash count required to be conducted at least once in every three months pursuant to Section 6-204 of the Revised Charter.
9. The Office of Council Services shall be assigned the
responsibility of administering the audit contracts on
behalf of the Council."
BE IT FINALLY RESOLVED that this Resolution shall take
effect upon its approval.
INTRODUCED BY:
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DATE OF INTRODUCTION:
July 9, 1986
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