Financial and Operational Audit (Maui County, Hawaii)

In January 2009, the County of Maui (County) issued a request for proposals for a consultant to perform a financial and operations performance audit of the County co-composting operation.  The County selected the consultant team led by GBB with the accounting firm of Levin & Hu and O2Compost to perform a Financial and Operational Audit of the co-composting project managed under contract by EKO Systems, Inc. The period of the performance audit was from July 1, 2007, through June 30, 2008, Maui County’s Fiscal Year 2008.

During FY 2008, the County delivered 25,000 tons of biosolids to be processed by EKO Systems, Inc., into usable products. Also, the County and its residents delivered 35,000 tons of greenwaste which was shredded and used as bulking agent in the composting operations.  The biosolids included fats, oils and grease, as part of the material for which Maui EKO Systems received payment; there was no payment for greenwaste.  Maui EKO Systems also had the responsibility to market these products.

The GBB Project Team performed site inspections of the Maui EKO Systems operations located on the Maui Central Landfill property and inspected the operations and the files on EPA 40 CFR 503 monitoring and testing, health and safety, permits and other compliance data.  A Technical Memorandum was prepared and delivered to the County on these reviews.  The team also visited the EKO Systems, Inc. corporate offices in Denver, CO to review the financial records related to the Maui segment of their business.