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 No. 18-10, Follow-Up on Recommendations from Report No. 15-07, Audit of the Research Corporation of the University of Hawaiʻi

In 2015, this office initiated an audit of the Research Corporation of the University of Hawai‘i (RCUH).  In Report No. 15-07, we found that  RCUH’s executive director and board took a cautious business approach that ignored plans to pursue more non-UH projects.  We conducted a follow-up to assess the status of the 11 recommendations made in that report and found that RCUH had implemented all of them.
Full Report

Photo: RCUH / Hazards SEES


Report No. 18-09, Audit of the Department of the Attorney General’s Asset Forfeiture Program

We found that the department has yet to adopt administrative rules, which describe the procedures and practice requirements for asset forfeiture. Without them, the program provides informal, piecemeal guidance to law enforcement agencies and the public. We also found the program lacks policies and procedures, and has a program manager who did not guide and oversee day-to-day activities and financial management.
Summary or Full Report

 

Photo: Office of the Auditor


Report No. 18-08, Audit of the Office of Hawaiian Affairs’ Competitive Grants and Report on the Implementation of 2013 Audit Recommendations

We found shortcomings in the way that OHA’s grants staff monitors and evaluates its competitively awarded grants. While the agency predominantly met the statutory requirements for its Community Grants, it did not consistently meet the requirements to monitor and evaluate ʻAhahui Grants.
Summary or Full Report

Photo: Thinkstock.com


Report No. 18-07, Follow-Up on Recommendations from Report No. 16-01, Report on Selected Executive Branch Departments’ Information Technology Expenditures

In 2016, this office issued a report in response to a request from the Legislature to review selected executive branch expenditures for the fiscal years 2011-2014.  We conducted a follow-up to assess the status of the five recommendations made in that report.  Our follow-up of recommendations made in Report No. 16-01 found that ETS has implemented two recommendations, partially implemented two recommendations, and that one recommendation has not yet been implemented.
Full Report

Photo: Thinkstock.com


2017 Annual Report

We published audit reports on subjects ranging from the Plant Quarantine Branch and Mauna Kea and the Mauna Kea Science Reserve to the Hawaiʻi Superferry and the Disease Outbreak Control Division.

Photo: Office of the Auditor


Report No. 18-06, Analyses of Proposed Special and Revolving Funds 2018

We found that despite the new criteria, special and revolving funds persist: In FY 2018, non-general funds accounted for about half of the State’s $14.1 billion operating budget, an increase of 32 percent from FY2008. This proliferation of non-general funds has hampered the Legislature’s ability to direct general fund spending.
Summary or Full Report

Photo: Office of the Auditor


Report No. 18-05, Audit of the Public Utilities Commission

We found that staff turnover is high, with 80 percent of its staff working for the commission for five years or less. However, the PUC has no formal plans to address staff retention, succession, and training. We found that the commission has no firm plans to fix or replace its problematic document management system, even though its $1.6 million maintenance contract will expire next year.
Summary or Full Report

Photo: Thinkstock.com


Report No. 18-04, Audit of the Hawaiʻi Tourism Authority

We found that HTA has been operating with loose oversight over its contracts, has not been following its own policies and procedures for procurement, and ultimately, has not been accountable for how it pursues its mission.
Summary or Full Report

Photo: HAWAI’I TOURISM AUTHORITY (HTA) / TOR JOHNSON


Report No. 18-03, Audit of the Office of Hawaiian Affairs

In our audit we found that in FY2015 and FY2016, OHA spent nearly double as much on discretionary disbursements ($14 million) as it did on planned, budgeted, and properly publicized, vetted, and monitored grants ($7.7 million). These expenditures did not undergo the rigorous vetting, monitoring, and reporting requirements of OHA’s formal grant process. Some were approved by the OHA Administration without Board of Trustee vote or even knowledge.
Summary or Full Report

Photo: OHA


Report No. 18-02, Sunrise Analysis: Regulation of Dental Assistants

We found that several tasks routinely performed by dental assistants in Hawaiʻi pose a reasonable risk of injury to patients and therefore should be regulated. However, a number of tasks that dental assistants are allowed to perform do not appear to pose a threat to patient health and safety; for that reason, we recommend that the State consider a tiered regulatory framework.
Summary or Full Report

Photo: Thinkstock.com


Report No. 18-01, Audit of the Hawaiʻi State Energy Office

In our audit, we encountered an organization at a crossroads: The Energy Office no longer has the funding to continue its current level of operations, it cannot clearly articulate how its efforts have contributed to its stated mandate, and it has no plans for aligning and re-sizing operations to match its broad responsibilities and current fiscal realities.
Summary or Full Report

Photo: Thinkstock.com


Report No. 17-14, Audit of the Disease Outbreak Control Division of the Department of Health

During the three disease outbreaks we assessed, the Disease Outbreak Control Division and the Department of Health experienced communication breakdowns with other divisions, State and County response representatives, and the general public. We also found that the Division has inconsistent processes and procedures for recordkeeping, internal review, and reporting.
Summary or Full Report

Photo: CDC / Betty Partin


Report No. 17-13, Study of Proposed Mandatory Health Insurance for Cognitive Rehabilitation Therapy

In Report No. 17-13, Study of Proposed Mandatory Health Insurance for Cognitive Rehabilitation Therapy, we surveyed Hawaiʻi’s health-plan providers and found that their plans currently provide coverage for medically necessary cognitive rehabilitation therapy for traumatic brain injury patients. In fact, current coverage exceeds the Legislature’s requirements.
Summary or Full Report

Photo: ThinkStock.com


Report No. 17-12, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Labor and Industrial Relations

In our review of ten special funds, one revolving fund, four trust funds, and five trust accounts of the Department of Labor and Industrial Relations (DLIR), we found one special fund did not meet criteria and should be closed.
Summary or Full Report

Photo: Office of the Auditor


Report No. 17-11, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Public Safety

In our review of six special funds, three revolving funds, four trust funds, and five trust accounts of the Department of Public Safety, we found one revolving fund did not meet criteria and should be closed.
Summary or Full Report

Photo: Office of the Auditor


Report No. 17-10, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of  Taxation

In our review of four special funds, two trust funds, and seven trust accounts of the Department of Taxation, we found one special fund and three trust accounts did not meet criteria and should be closed.  We also found one special fund should be reclassified to a trust account.
Summary or Full Report

Photo: Thinkstock.com


Report No. 17-09, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Human Resources Development

In our review of one special fund and two trust funds of the Department of Human Resources Development, we determined that the funds met criteria and should be continued.
Summary or Full Report

Photo: Thinkstock.com


2016 Annual Report

We published audit reports on subjects ranging from the Kahoʻolawe Rehabilitation Trust Fund to Hawaiʻi’s Motion Picture, Digital Media and Film Production Income Tax Credit.

Photo: Office of the Auditor


Report No. 17-08, Sunset Evaluation: Regulation of Athletic Trainers

The current registration requirement for athletic trainers should be extended beyond its current sunset date.
Summary or Full Report

Photo: Thinkstock.com


Report No. 17-07, Report of Hawaiʻi Superferry Final Expenses

The Hawaiʻi Superferry stopped its operations over 8 years ago; yet, the State continues to pay costs it incurred for support of Hawaiʻi Superferry operations. The outstanding balance as of July 1, 2017 is $32.6 million.
Full Report

Photo: Office of the Auditor


Report No. 17-06, Follow-Up on Recommendations from Report No. 14-07, Follow-Up Audit of the Management of Mauna Kea and the Mauna Kea Science Reserve

In 1998 and again in 2005, the Legislature requested that this office conduct an audit of the management of Mauna Kea and the Mauna Kea Science Reserve. In 2014, this office initiated another follow-up audit to assess UH’s and DLNR’s efforts to address our previous findings and recommendations. Our follow-up of recommendations made in Report No. 14-07 found that UH and DLNR have partially implemented four of the eight recommendations.
Full Report

Photo: Thinkstock.com


Report No. 17-05, Audit of Hawaiʻi Department of Agriculture’s Plant Quarantine Branch

The Department of Agriculture’s Plant Quarantine Branch lacks the data gathering and data analysis functions necessary to define threats posed by invasive species and respond to them.
Summary or Full Report

Photo: Office of the Auditor


Report No. 17-04, Follow-Up on Recommendations from Report No. 14-16, Audit of the Department of Health’s Glass Advance Disposal Fee Program

The purpose of the Glass Advance Disposal Fee program is to encourage glass recycling and requires glass importers to pay an advance disposal fee to be used to fund county glass recovery programs.  Our follow-up of recommendations made in Report No. 14-16 found that the Department of Health has implemented one and partially implemented three of the nine audit recommendations.
Full Report

Photo: Thinkstock.com


Report No. 17-03, Analyses of Proposed Special and Revolving Funds 2017

We reviewed 110 house and senate bills proposing 65 special and revolving funds during the 2017 legislative session of which none met the criteria. Legislation adopted to promote the efficient allocation of public funds between general fund and special, revolving, and trust funds seems to be having an impact. Only one fund in the past four years has met criteria.
Summary or Full Report


Report No. 17-02, Financial and Program Audit of the Deposit Beverage Container Program, June 30, 2016

We found, as we did in each of our previous audits, the Program relies on self-reported data from distributors and certified redemption centers. The lack of adequate controls exposes the Program to risks of underpayments by distributors and overpayments to certified redemption centers, either of which results in financial harm to the State.
Summary or Full Report

Photo: Thinkstock.com


Report No. 17-01, Sunrise Analysis: Regulation of Certified Professional Midwives

We determined that the practice of midwifery meets the Legislature’s criteria for professional licensure, and the State should require all midwives to be licensed. We reached a similar conclusion after a sunrise review of proposed legislation in 1999.
Summary or Full Report

Photo: Thinkstock.com


Recent Financial Audits

State of Hawaiʻi Comprehensive Annual Financial Report

June 30, 2017

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, 2017

The auditors from Accuity LLP identified three significant deficiencies in internal control over financial reporting in accordance with Government Auditing Standards. They also identified five material weaknesses and 10 significant deficiencies over compliance with major federal programs in accordance with the Uniform Guidance.
Summary or Full Report

Department of Accounting and General Services, State Motor Pool Revolving Fund

June 30, 2017 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

Department of Accounting and General Services, State Parking Revolving Fund

June 30, 2017 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

Department of the Attorney General

June 30, 2017 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 in accordance with Government Auditing Standards. However, they identified two deficiencies in internal controls over financial reporting that are significant deficiencies. There were no findings that were considered to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance. However, they identified two deficiencies in internal control over compliance that are significant deficiencies.
Summary or Full Report

Department of Education

June 30, 2017 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. However, the auditors identified one significant deficiency in internal control over financial reporting that is required to be reported under Government Auditing Standards. There were no findings that were considered material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Department of Hawaiian Home Lands

June 30, 2017 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 to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance. However, there was one other matter that was required to be reported under the Uniform Guidance.
Summary or Full Report

Department of Health

June 30, 2017 Financial Statements and Single Audit Report

The auditors from KMH LLP identified two material weaknesses and one significant deficiency in internal control over financial reporting that are required to be reported under Government Auditing Standards. They also identified six material weaknesses and four significant deficiencies in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Department of Health, Drinking Water Treatment Revolving Loan Fund

June 30, 2017 Financial Statements

The auditors from KMH 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 to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance.

Department of Health, Water Pollution Control Revolving Fund

June 30, 2017 Financial Statements

The auditors from KMH 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 to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance.

Department of Human Services

June 30, 2017 Financial Statements and Single Audit Report

The auditors from KMH LLP reported one significant deficiency in internal control over financial reporting and 13 material weaknesses and three significant deficiencies in internal control over compliance that are required to be reported under Government Auditing Standards and the Uniform Guidance.
Summary or Full Report

Department of Transportation, Administration Division

June 30, 2017 Financial Statements and Single Audit Report

The 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. There were no findings that were considered to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Department of Transportation, Airports Division

June 30, 2017 Financial Statements

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

Department of Transportation, Airports Division

June 30, 2017 Single Audit Report

The auditors from BKD LLP identified one material weakness in internal control over financial reporting that is required to be reported under Government Auditing Standards. There were no findings that were considered to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Department of Transportation, Harbors Division

June 30, 2017 Financial Statements

The auditors from KKDLY 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 Transportation, Highways Division

June 30, 2017 Financial Statements

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

Department of Transportation, Highways Division

June 30, 2017 Single Audit Report

The auditors from KKDLY LLC reported no deficiencies in internal control over financial reporting that were considered to be material weaknesses and no instance of noncompliance or other matters that are required to be reported under Government Auditing Standards.  There was one significant deficiency in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Hawaiʻi Community Development Authority

June 30, 2017 Financial Statements

The auditors from CW Associates, A Hawaiʻi Certified Public Accounting Corporation 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 Convention Center

December 31, 2017 Financial Statements

The auditors from CW Associates, A Hawaii Certified Public Accounting Corportation gave an unmodified opinion that the financial statements were presented fairly, in all material respects, in accordance with the management agreement between the Hawaiʻi Tourism Authority and AEG.
Summary or Full Report

Hawaiʻi Employer-Union Health Benefits Trust Fund

June 30, 2017 Financial Statements

The auditors from KKDLY LLC found 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 Housing Finance and Development Corporation

June 30, 2017 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 to be material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Hawaiʻi Public Housing Authority

June 30, 2017 Financial Statements and Single Audit Report

The auditors from KMH 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 material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Hawaiʻi Tourism Authority

June 30, 2017 Financial Statements

The auditors from CW Associates, A Hawaiʻi Certified Public Accounting Corporation 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

Oahu Metropolitan Planning Organization

June 30, 2017 Financial Statements and Single Audit Report

The auditors from N&K CPAs, Inc. reported five significant deficiencies over internal controls over financial reporting and one material weakness and two significant deficiencies over compliance that are required to be reported under Government Auditing Standards and the Uniform Guidance.
Summary or Full Report

Stadium Authority

June 30, 2017 Financial Statements

The auditors from KKDLY LLC found 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, 2016 Financial Statements

The auditors from KMPG LLP found 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

 

Links to Other Sites