Hawaii Auditor Critical of Bottle Bill

Marion M. Higa, auditor for the state of Hawaii, has issued a report that is critical of the state’s bottle bill, which was enacted Jan. 1, 2005.

Higa’s primary contention is that the state’s Department of Health, which manages the program, does not have a way to verify the data it receives from distributors, importers and manufacturers is accurate and that distributors are paying what they actually owe.

"Distributors, importers and manufacturers are required to submit a department form with their payment, but the department does not verify that either the data on these forms or the payments received are correct,” the audit summary reads. “Although we attempted to audit the records of selected distributors, we were unable to obtain enough documentation to attest to the accuracy of the numbers submitted and the amounts of the resulting payments. Consequently, the department cannot verify that distributors are paying what the owe.”

The report notes that the auditor’s office redeemed containers at 33 redemption centers in O’ahu, Hawaii, Maui and Kauai, confirming public complaints about centers opening later, closing early or not opening at all, often, the report alleges, because they run out of storage space or money.

“Furthermore, prior to enactment of the bottle bill, recyclers paid consumers the scrap value of their containers,” the audit summary reads. “Currently, only a few redemption centers pay scrap value in addition to the refund, because there is no requirement to do so.”

According to the report, for the first six months of 2005, the Department of Health has paid more than $10 million to redemption centers—roughly $2 million in handling fees and $8 million in reimbursements. With no discernable audit trail, the Office of the Auditor says the department could potentially be paying for unlabeled containers and bottles that do not exist.

The auditor’s office suggests that the Department of Health “verify data reported by redemption and recycling centers and evaluate whether handling fees are sufficient to sustain acceptable levels of service.” The report’s recommendations continue, “Regarding financial controls, we included recommendations that the Department of Health provide fiscal guidance to and oversight of the program, properly review and maintain accounting records and have proper cut-off dates for transactions.”

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

According to the Office of the Auditor, the Department of Health has drafted many of the recommended procedures, is seeking to hire more accounting staff and will address the audit’s specific criticisms.