The Office of the Auditor provides the Legislature and the public with accurate, objective, and timely information to promote improvement in state government.


Recent Reports

Report 15-01 Audit of the Hawaiʻi Health Connector

We found the Hawaiʻi Health Connector’s Board of Directors should have noted numerous warning signs and exerted more vigorous effort in planning, oversight, and leadership. The Connector had problems with its procurement and administration of contracts, and noncompliance with federal regulations may put grant funds at risk.
Summary or Full Report

Connector IT and Related Contracts

Connector IT and Related Contracts


Report 14-18 Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the University of Hawaiʻi

We reported on 65 funds and accounts, 30 special funds, 22 revolving funds, and 13 trust funds and trust accounts. We used criteria developed by the Legislature as well as by our office from a review of public finance and accounting literature and found 17 of the 65 funds and accounts did not meet applicable fund criteria.
Summary or Full Report

Cash Balances for UH Non-General Funds, FY2010-2014 (in millions)

Cash Balances for UH Non-General Funds, FY2010-2014 (in millions)


Report 14-17 A Study to Identify Local Alternatives to Shipping Non-Deposit Glass out of the State of Hawaiʻi

The study found there is no single alternative option that would remove all or most non-deposit glass from the waste stream in Hawaiʻi. The study also emphasizes that glass is a low-value commodity which makes nearly every optionincluding recycling, down-cycling, or disposing glass in a landfillcostly to implement.
Summary or Full Report

Environmental hierarchy of glass recycling (figure adapted from McDonough and Braugart, 2008)

Environmental hierarchy of glass recycling (figure adapted from McDonough and Braugart, 2008)


Report 14-16 Audit of the Department of Health’s Glass Advance Disposal Fee Program

We found the state’s solid waste disposal goals are outdated and the glass ADF program lacks performance goals that are tied to a clear mission. As a result, it is unclear what the glass ADF program is supposed to accomplish and how to measure its progress.
Summary or Full Report

Glass Advance Disposal Fee Process Source: Advance Disposal Fee and Office of the Auditor

Glass Advance Disposal Fee Process
Source: Advance Disposal Fee and Office of the Auditor


Report 14-15 Sunrise Analysis: Regulation of Veterinary Technicians

We found that the current proposal is motivated primarily by an industry effort to establish national professional standards.  We also found that the regulation would restrict certain qualified individuals from entering the field of veterinary technology, and that the effect of regulation on cost to consumers is unknown. On balance, there is no demonstrable need for the State to regulate veterinary technicians in Hawaiʻi.
Summary or Full Report

Regulation of Veterinary Technicians in the U.S.

Regulation of Veterinary Technicians in the U.S.


Report 14-14 Sunrise Analysis: Regulation of Herbal Therapists

The purpose of the bill is to establish licensing requirements for contemporary herbal healers from all ancestries and for the benefit of the public as a whole. Proponents of regulation could not provide evidence that herbal therapy presents a clear and present danger to consumers.
Summary or Full Report

Photo of a Chinese Herbal Medicine Shop in Downtown Honolulu Source: Institute for Clinical Acupuncture and Oriental Medicine

Photo of a Chinese Herbal Medicine Shop in Downtown Honolulu
Source: Institute for Clinical Acupuncture and Oriental Medicine


State-County Functions Working Group (Transient Accommodations Tax) Interim Report

The State-County Functions Working Group is comprised of 13 members responsible for evaluating the division of duties and responsibilities between State and counties relating to the provision of public services.  Prior to the 2016 Regular Session, it must submit a recommendation to the Legislature on the appropriate allocation of transient accommodations tax revenues between the State and counties.
Full Report

TAT Collections and Rates, FY2004-FY2013 Source: Hawai'i Department of Taxation, Annual Report 2012-2013 and Office of the Auditor

TAT Collections and Rates, FY2004-FY2013
Source: Hawai’i Department of Taxation, Annual Report 2012-2013 and Office of the Auditor


Report No. 14-13 Review of Special Funds, Revolving Funds, Trust Funds and Trust Accounts of the Departments of the Attorney General and Business, Economic Development and Tourism

We reported on 74 funds and accounts; 27 special funds, 22 revolving funds, and 25 trust funds and trust accounts. We used criteria developed by the Legislature as well as by our office from a review of public finance and accounting literature and found 19 of the 74 funds and accounts did not meet applicable fund criteria.
Summary or Full Report

Cash Balances for ATG Non-General Funds, FY2010-FY2014

Cash Balances for ATG Non-General Funds, FY2010-FY2014


Report No. 14-12 Sunrise Analysis: Regulation of Medical Marijuana Dispensaries

We found that regulation of medical marijuana dispensaries is necessary to protect the health, safety, and welfare of qualifying patients in Hawaiʻi.  Without regulated dispensaries, patients’ health is jeopardized because a product’s strength, strain, and lack of contaminants cannot be verified.
Summary or Full Report

Photo of Different Strains of Medical Marijuana and Corresponding Labels Source: Harborside Health Center, San Jose, California

Photo of Different Strains of Medical Marijuana and Corresponding Labels
Source: Harborside Health Center, San Jose, California


Report No. 14-11 Audit of the Hawaiʻi State Foundation on Culture and the Arts

The SFCA commission focuses its attention on operations such as art acquisition rather than policy and planning and has neglected sunshine law. It adopted an unrealistic strategic plan that fails to address about $3 million in surplus arts funds. The SFCA also needs to improve management of its special fund and collection of art work.
Summary or Full Report

Photo of University of Hawai'i Cancer Center Sculpture Dedication, June 2014

Photo of University of Hawai’i Cancer Center Sculpture Dedication, June 2014


Report No. 14-10 Study of Proposed Mandatory Health Insurance for Hearing Aids

Our report assesses the social and financial effects of mandating health insurance coverage for hearing aids, as proposed in Senate Bill No. 309, Senate Draft 1, of the 2014 regular session. The bill defines hearing aids as “any wearable instrument or device and any parts, attachments, accessories, including earmold, but excluding batteries and cords, designed or offered for the purpose of aiding or compensating impaired human hearing.”
Summary or Full Report

Map of Insurance Coverage for Hearing Aids

Map of Insurance Coverage for Hearing Aids


Report No. 14-09 Study of the Civil Service Exemption Process

DHRD’s jurisdiction includes 21,783 positions, of which 15,069 are civil service and 6,714 exempt. Approximately two-thirds of exempt positions are vacant (4,512). DHRD plans to convert about 500 positions to civil service over the next biennium. New exempt positions are established as existing ones are converted, but those new positions have decreased over the last five years.
Summary or Full Report

Number of Filled and Vacant Exempt Positions

Number of Filled and Vacant Exempt Positions


Report No. 14-08 Study of Proposed Mandatory Health Insurance for Treatment of Orofacial Anomalies

House Bill (HB) No. 2522 would require each health insurance contract, plan, policy, or agreement issued or renewed after December 31, 2014, to include benefits for direct or consultative services provided by a licensed orthodontist for the correction of teeth that come together abnormally, preparation of patients for surgery, or correction of facial deformities in conjunction with surgery.
Summary or Full Report

Map of Insurance Coverage for Orofacial Anomalies

Map of Insurance Coverage for Orofacial Anomalies


Report No. 14-07 Follow-Up Audit of the Management of Mauna Kea and the Mauna Kea Science Reserve

In response to past concerns about the management of Mauna Kea and its science reserve, we conducted audits in 1998 and 2005. In this report, we found that the University of Hawaiʻi and the Department of Land and Natural Resources have made progress on implementing many of our previous major recommendations but that some issues remain unresolved.
Summary or Full Report

Observatories in the Summit Region Source: Mauna Kea Observatories Support Services

Observatories in the Summit Region
Source: Mauna Kea Observatories Support Services


 

Recent Financial Audits

State of Hawaiʻi Comprehensive Annual Financial Report – June 30, 2014

The State received an unmodified opinion that the financial statements were presented fairly, in all material respects, in accordance with generally accepted accounting principles.
Summary or Full Report

State of Hawaiʻi Single Audit Report – June 30, 2013

Auditors from Deloitte & Touche LLP reported four significant deficiencies in internal control over financial reporting and seven material weaknesses and 46 significant deficiencies of internal control over compliance.
Summary or Full Report

Department of Hawaiian Home Lands – June 30, 2014 Financial Statements and Single Audit Report

The auditors from Accuity LLP reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.  There were no findings that were considered material weaknesses in internal control over compliance.
Summary or Full Report

Hawaiʻi Community Development Authority – June 30, 2014 Financial Statements

Auditors from Ohata Chun Yuen LLP reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

Department of Accounting and General Services, Stadium Authority – June 30, 2013 Financial Statements

Auditors from Kobayashi, Kanetoku, Doi, Lum & Yasuda CPAs LLC reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

Department of the Attorney General - June 30, 2013 Financial Statements and Single Audit Report

The auditors from Akamine, Oyadomari & Kosaki, CPAs reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses. However, they identified a deficiency in internal controls over financial reporting that is considered to be a significant deficiency.
Summary or Full Report

Department of Business, Economic Development & Tourism, Hawaiʻi Housing Finance and Development Corporation – June 30, 2013 Financial Statements and Single Audit Report

The auditors from Accuity LLP reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, the auditors reported that a prior significant deficiency remains unresolved.
Summary or Full Report

Department of Education - June 30, 2013 Financial Statements and Single Audit Report

The auditors from N&K CPAs, Inc. reported no deficiencies in internal controls over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However there were three deficiencies in internal controls over compliance that were considered to be significant deficiencies.
Summary or Full Report

Department of Health - June 30, 2013 Financial Statements and Single Audit Report

The auditors from Accuity LLP reported two significant deficiencies in internal control over financial reporting and two material weaknesses and one significant deficiency in internal control over compliance.
Summary or Full Report

Department of Health, Drinking Water Treatment Revolving Loan Fund – June 30, 2013 Financial Statements

 

Department of Health, Water Pollution Control Revolving Fund – June 30, 2013 Financial Statements

 

Department of Human Services – June 30, 2013 Financial Statements and Single Audit Report

The auditors from KMH LLP identified 13 material weaknesses in internal controls over financial reporting, which included the under-reporting of $70 million in liabilities. The auditors also identified three significant deficiencies in internal controls over compliance.
Summary or Full Report

Department of Human Services Hawaiʻi Public Housing Authority – June 30, 2013 Financial Statements and Single Audit Report

The auditors from KMH LLP identified two significant deficiencies in internal controls over financial reporting. They also reported four deficiencies in internal controls over compliance that were considered material weaknesses.
Summary or Full Report

Department of Transportation, Administration Division – June 30, 2013 Financial Statements and Single Audit Report

The auditors from CW Associates, CPAs reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

Department of Transportation Airports Division - June 30, 2013 Financial Statements

The auditors from KPMG LLP reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. There were no findings that were considered material weaknesses in internal control over compliance.
Summary or Full Report

Department of Transportation Airports Division – June 30, 2013 Single Audit Report

 

Department of Transportation Harbors Division – June 30, 2013 Financial Statements

The auditors from Kobayashi, Kanetoku, Doi, Lum & Yasuda CPAs LLC reported no deficiencies in internal control over financial reporting. However, they reported two findings that were considered to be significant deficiencies in internal controls over compliance.
Summary or Full Report

Department of Transportation Harbors Division – June 30, 2013 Single Audit Report

 

Department of Transportation Highways Division – June 30, 2013 Financial Statements

The auditors from Kobayashi, Kanetoku, Doi, Lum & Yasuda CPAs LLC identified three significant deficiencies in internal controls over financial reporting.  They also reported six significant deficiencies in internal controls over compliance.
Summary or Full Report

Department of Transportation Highways Division – June 30, 2013 Single Audit Report

 

Department of Transportation Oahu Metropolitan Planning Organization – June 30, 2013 Financial Statements and Single Audit Report

Auditors from Gilford Sato & Associates, CPAs, Inc. reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

Hawaiʻi Employer-Union Health Benefits Trust Fund – June 30, 2013 Financial Statements

The auditors from PKF Pacific Hawaii LLP identified two material weaknesses and one significant deficiency in internal controls.
Summary or Full Report

Hawaiʻi Tourism Authority – June 30, 2013 Financial Statements

The auditors from KPMG LLP reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

State Motor Pool Revolving Fund – June 30, 2013 Financial Statements

Auditors from Egami & Ichikawa CPAs, Inc., reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

State Parking Revolving Fund – June 30, 2013 Financial Statements

Auditors from Egami & Ichikawa CPAs, Inc., reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Summary or Full Report

Employees’ Retirement System – June 30, 2012 Financial Statements

Hawaiʻi Convention Center – June 30, 2012 Financial Statements

The auditors from KPMG LLP reported no deficiencies in internal control over financial reporting. They also found no material weaknesses in internal control over compliance.
Summary or Full Report

Department of Transportation Highways Division – June 30, 2012 Financial Statements and Single Audit Report

The auditors from KMH LLP reported no deficiencies in internal control over financial reporting. They also found no material weaknesses in internal control over compliance.
Summary or Full Report


Other Recent Publications