Committee amends and forwards liquor‑control audit request, changing financial audit to performance audit

The committee voted unanimously to forward an amended resolution directing an audit of the Department of Liquor Control, changing the request from a financial audit to a performance audit after the county auditor said state law and the county charter would require a CPA for a full financial audit.

Member Inaba introduced Resolution 548‑24 seeking a financial audit focusing on allocation and use of liquor‑control fees and expenditures. County Auditor Tyler Benner told the committee that under the Hawaii County Charter a financial audit must be conducted by a CPA and that the auditor’s office is resource‑constrained; he recommended a performance audit instead and flagged staffing limits the office would work around by doing fieldwork and escalating to a full audit if necessary.

The committee approved an amendment (communication 919.1) that converts the request to a performance audit and adds a requirement that the liquor department respond to findings and provide a progress report to the council within 180 days of the audit report. Member Kerkowitz asked that the audit examine travel budgets and potential ethical issues when a commission appoints a department director who then controls discretionary travel approvals.

The committee voted 9‑0 to forward the amended resolution to the full council with a favorable recommendation. Auditor Benner noted the office would likely begin with targeted fieldwork and escalate as warranted; the committee requested the auditor and corporation counsel be consulted on scope and any legal constraints.