Tuesday, July 07, 2020
Hawai'i Free Press

Current Articles | Archives

Thursday, December 05, 2019
Auditor--14 Years Later: Liquor Comm Still Working on 2005 Recommendations
By News Release @ 9:18 PM :: 1402 Views :: Honolulu County, Law Enforcement, Tourism

Follow-Up on Recommendations from Report No. 05-02, Audit of Selected Management Issues of the Honolulu Liquor Commission

From Honolulu City Auditor, November, 2019 (excerpts)

The Audit of Selected Management Issues of the Honolulu Liquor Commission, Report No. 05-02, issued in April 2005, found that overall the Commission had a small hard-working staff whose performance was hampered by:

• Inadequate oversight and management of the Commission that required improvement to ensure that the Commission fulfilled its responsibilities pursuant Chapter 281, HRS; and

• Ineffective managerial operational practices.

Based on these findings the audit made 15 recommendations: 9 directed to the Commission, 4 directed to the Liquor Control Administrator and 2 directed to mayor.

Since the original report was issued in 2005, the Office of the City Auditor (OCA) has periodically monitored the status of the report’s recommendations by requesting that the Commission report on the status of the audit recommendations.

In 2011, we reported that 7 of the original 15 recommendations had been completed; 1 recommendation had been dropped, 5 were in progress, and 2 had not been started.

In 2012 we reported that there had been no change in the status of the response to the remaining 7 outstanding audit recommendations.

In 2015, we reported, based on the Commission’s response, that 1 of the 7 outstanding recommendations had been completed, while the rest remained in progress or not started.

However, in 2018, we did not receive an updated status report of the outstanding recommendations from the Commission. Based on this and the period of time that has transpired since the audit was completed, we determined that a follow-up audit should be performed to verify the status of the outstanding recommendations.

The five outstanding audit recommendations included in this follow-up audit are:

The Commission should:

1. Establish an appropriate timeframe for the proposed reorganization plan. Any reorganization plan should include clear description and identification of duties of the proposed senior management team, including descriptions of the qualifications of persons to hold the positions.

2. Assess whether effective administrative oversight of the Commission necessitates the creation of an adjudication board separate from the commissioners.

3. Work with the Department of Budget and Fiscal Services to have the Internal Control Division conduct a thorough review of the Commission’s processes and practices relating to:

• Auditing of licensees, and

• Allocation and utilization of funds received from liquor violation fines.

The Liquor Control Administrator should:

4. Work proactively with the liquor commissioners to identify and fill necessary vacant staff positions. This should include, but not be limited to: filling vacant positions, removing administratively imposed freezes on vacant positions necessary for effective operations, and actively pursuing the necessary fee adjustments to support proper staffing of the Commission. The administrator must actively pursue both of these issues to the administration and the city council.

5. Ensure that the administrative directives and other appropriate policies and procedures are reviewed and updated. This should include: • Procedures and protocols for investigator actions that are clearly defined and routine followed;

• A clear rationale and program for selection of licensees to be audited, a plan to achieve full review of licensees is implemented, and necessary resources secured to achieve these objectives;

• Clearly identified staff duties and responsibilities; and

• Clear guidelines, requirements, minimal acceptable requirements of licensee applications and supporting documents, and provided to all licensee applicants, investigators, commissioners, applicants and others involved in the license process.

Two of the outstanding seven recommendations were directed to the mayor and are omitted from this follow-up audit since the mayor’s response is independent of the Commission.

We found that four of the five outstanding recommendations are in process, while one has been completed. …


We conclude that after 14 years, the response to this recommendation is still in progress and despite the time that has transpired, are encouraged that a partial reorganization has been completed, and that the Field Services Branch’s reorganization is currently being actively pursued. A Commission staff also reports that an additional organization change is requested in FY 2021 for the Administrative Services Branch. The proposed reorganization will create a new accountant position to oversee the branch’s Audit and Accounting Section and also create an additional liquor control auditor position which, if approved, would further address our audit’s finding relating to frequency of the liquor licensee audits (see Appendix D).

A Commission staff person noted that since the 2005 audit was completed there have been four changes in the Liquor Control Administrator position. We acknowledge that organizational changes may be difficult to implement when the senior management position is experiencing periodic changes. We note that the current reorganization efforts have been all achieved under the current Liquor Control Administrator who stepped into the position in 2014. We urge the Commission to pursue completion, adoption, and implementation of the reorganization of the Field Services Branch so that an official organization plan for the Commission will be in place.….

read … Full Report


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

808 State Update AM940


ACA Signups Hawaii



Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii



Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute


Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii


DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute


Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube


Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group


Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii



National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today


Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii



Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii


SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii