Following the completion of the much-anticipated audit of Hawaii County’s use of purchasing cards, then-County Managing Director Wally Lau pledged the administration would follow through on all of its recommendations to prevent further misuse.
But other than amendments to Hawaii County Code, it remains unclear how much progress the county has made in addressing the issue, sparked by the high-profile missteps of Mayor Billy Kenoi.
Legislative Auditor Bonnie Nims, who issued the report last July, said she has not followed up on the matter, and Finance Director Deanna Sako did not respond to an email Wednesday and phone calls Monday seeking an update.
Managing Director Randy Kurohara also couldn’t be reached after multiple attempts.
While Nims said she intends to check on the county’s progress, she wasn’t certain when that would occur.
“Maybe later this year,” she said. “We’re not quite sure when that’s going to be yet.”
Nims said her office is working on other audits at the moment. Still, she said following up on the pCard report is a priority.
Her audit found 164 pCard transactions totalling $29,961 that did not follow county policy, had a questionable public purpose and might have violated state law.
Reimbursements were made for 159 personal and miscellaneous expenses totaling $27,456.64, though not always in a timely manner, her report said.
Questionable pCard use included charges made by Kenoi at hostess bars and for other non-county expenses.
To address the issue, Nims recommended the county do the following: Amend the County Code to clarify authorized exceptions for travel and other expenses must still be used for public purposes. (The County Council passed a bill amending the code last October.)
Require all employees and departments be held to the same laws, policies and procedures.
Amend the county’s Purchasing Card Program and Procedures Manual to ensure consistency with state law.
Conduct annual comprehensive and periodic reviews.
Provide on-going training and consider improving a pCard database.
Responding to the audit for the Mayor’s Office, Lau said last July that the administration would follow the rules.
“While we do not agree with all of the assertions and conclusions contained in the report, we fully support the audit recommendations and are working toward implementation of all the recommendations with the Department of Finance,” he said.
Lau, who is now running for mayor, recently resigned as managing director. He couldn’t be immediately reached for comment.
Sako wrote in her response to Nims’ report July 15 that the Finance Department had started addressing several of those recommendations, including holding the Mayor’s Office to the same standards as other departments.
In response to the recommendation that the manual be amended and the county conduct an annual review, she wrote: “While we do periodically review our policies and procedures, we will work on consolidating our guidance to make it easier for the users and clarify where appropriate.”
Sako said at the time the county would “increase focus” on pCard training and that it was was talking with First Hawaiian Bank to help improve its pCard database.
To date, the administration has not provided an update to the Hawaii County Council on those efforts, and it’s not clear if council members have requested that information.
Email Tom Callis at tcallis@hawaiitribune-herald.com.