“Maintaining Ethics and Accountability in Government” 20 th Annual Conference Guam July 28, 2009 Marion M. Higa State A

1. “Maintaining Ethics and Accountability in Government”20th Annual ConferenceGuamJuly 28, 2009Marion M. HigaState Auditor, Hawai‘i

2. “Maintaining” = continuing something that’s already there.

3. Maintaining ethics and accountability—especially difficult in small jurisdictions. Why?

4. Everybody KNOWS everybody else! Everybody’s RELATED to everybody else!

5. Challenge: dealing with conflicting loyalties and principles.

6. Goals for This Opening Plenary Raise our awareness of ethical challenges Acknowledge them Think about dealing with them… ↓ Commit

7. Outline of the Opening Plenary The Hawai‘i Office of the Auditor How we work Where could ethical challenges confront us? Small jurisdiction panel discussion How could we help each other overcome the challenges?

8. Sometimes it may be good to be last.

9. The Hawai‘i Auditor Constitutional authority, independence 8-year renewable term Appointment vs. removal Broad range of work Ability to self-initiate work

10. The Hawai‘i Auditor (continued) Access to information; subpoena power Exemption from civil service and collective bargaining Our own attorneys Budget flexibility

11. Who We Are Staff size Composition Academic backgrounds

13. Nature of Our Work Audits: Management Financial Issues Financial Statement Studies

14. Nature of Our Work (continued) Analyses: Proposed Regulation of Occupations (sunrise) Sunset Proposed Mandatory Health Insurance Coverage Task Forces

17. Exhibit 1.1 Hawai‘i Superferry in Honolulu Harbor

19. Exhibit 2.3 Damaged Mooring Bollard at Kahului Harbor

21. Exhibit 2.8 Tugboat Pushing Barge Against Pier in Kahului Harbor

27. How We Work Legislative requests Yellow Book Team structure, managerial involvement

28. How We Work (continued) 3 Phases: Planning Fieldwork Analysis and report production Electronic working papers

29. Where Could the Ethical Challenges Come From? During audit work Independence statements (case study) State ethics code If “cause” is statutory… How high to take a recommendation?

30. Panel Discussion: In small jurisdictions, how much harder is it to overcome the ethical challenges?

31. How could we help each other overcome the challenges (and temptations)? “Maintaining” = continuing something that’s already there Are ethics there in your jurisdiction? In your area of responsibility? Is accountability there in your jurisdiction? In your bailiwick (kuleana)? “What’s my responsibility to do something about it?”

32. Questions we want to avoid: “Where were the auditors?” “Why us?” “If not us, then who?” “What is the tone at the top?” “How would this look in the newspaper?”

33. Answers are not simple. A case study to take to lunch with you…

34. Contact Us: Hawai‘i Office of the Auditor Kekūanaō‘a Building 465 S. King Street, Room 500 Honolulu, Hawai‘i 96813 Phone: 808-587-0800 FAX: 808-587-0830 E-mail: auditors@auditor.state.hi.us Web site: www.state.hi.us/auditor