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

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


Report No. 14-06 Report on the Implementation of State Auditor’s 2011 Recommendations

Our review focused on entities’ implementation of 25 audit recommendations made in calendar year 2011. This report details each recommendation, its status, and actions taken related to the recommendation. We made 12 recommendations in Report No. 11-01, Management Audit of the Hawaiʻi Public Housing Authority. The remaining 13 recommendations related to Report No. 11-03, Performance Audit of the Hawaiʻi Public Charter School System.
Summary or Full Report

Report No. 11-01 and Report No. 11-03

Report No. 11-01 and Report No. 11-03

 


Report No. 14-05 Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Transportation

We reported on 48 funds and accounts; 16 special funds, 20 revolving funds, two trust funds, and ten 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 eight of the 48 funds and accounts did not meet applicable fund criteria.
Summary or Full Report


Report No. 14-04 Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Departments of Defense and Land and Natural Resources

We reviewed 79 special funds, revolving funds, trust funds, and trust accounts; and reported on 51 of them (20 special funds, three revolving funds, 13 trust funds, and 15 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 that 11 of the 51 funds and accounts did not meet applicable fund criteria.
Summary or Full Report


Report No. 14-03 Sunrise Analysis: Regulation of Unaccredited Degree Granting Institutions

We found that the proposed regulation is unwarranted since legislation has changed the legal landscape and the bill has several flaws. We also found that the Office of Consumer Protection’s enforcement of existing laws provides sufficient protection for consumers.
Summary or Full Report

Map of unaccredited degree granting institution regulation in the United States.

Regulation of unaccredited degree granting institutions in the United States.


Report No. 14-02 Audit of the Department of Human Services’ Med-QUEST Division and Its Medicaid Program

After analyzing data from the Med-QUEST Division and other government and private sources, we found that Hawaiʻi’s Medicaid costs compare favorably to other states and the national average. Although Hawaiʻi has a higher Medicaid enrollment as a percentage of its population compared to other states, its Medicaid costs are below the national average and the division has been relatively successful in controlling spending per enrollee and stabilizing program costs.
Summary or Full Report

Total Medicaid Revenues and Expenditures by Means of Financing, FY 2008-FY2012

Total Medicaid Revenues and Expenditures by Means of Financing, FY2008-FY2012


Report No. 14-01 Review of the Revolving Funds, Special Funds, Trust Funds, and Trust Accounts of the Departments of Accounting and General Services, Agriculture, and Budget and Finance

We reviewed 111 revolving funds, special funds, trust funds, and trust accounts; and reported on 91 of them (15 revolving funds, 22 special funds, 14 trust funds, and 40 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 that 11 of the 91 funds and accounts did not meet applicable fund criteria.
Summary or Full Report

 


Report No. 13-10 A Report on Methodology for the Department of Labor and Industrial Relations’ Workers’ Compensation Medical Fee

Act 97, Session Laws of Hawaiʻi 2013, requires the State Auditor to assist the director of labor in administratively adjusting the workers’ compensation medical fee schedule. In this report, our first of two responding to Act 97, we recommend a formalized process for the mandatory periodic review of Hawaiʻi’s Workers’ Compensation Medical Fee Schedule.
Summary or Full Report

Map of Workers' Compensation Medical Fee Criteria

Map of Workers’ Compensation
Medical Fee Criteria


Report No. 13-09 Audit of Major Contracts and Agreements of the Hawaiʻi Tourism Authority

The Hawaiʻi Tourism Authority (HTA) is responsible for developing an annually updated tourism marketing plan that identifies marketing efforts and targets. It is also responsible for establishing measures of effectiveness and documenting its progress in meeting its strategic goals. We found that HTA’s “marketing plan” is nearly 600 pages, spread across more than a dozen documents and falls short of statutory requirements.
Summary or Full Report

Photo of HTA's "Marketing Plan"

Photo of HTA’s “Marketing Plan”

 

Recent Financial Audits

State of Hawaiʻi Comprehensive Annual Financial Report – June 30, 2013

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

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 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 Hawaiian Home Lands – 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.
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 Community Development Authority – June 30, 2013 Financial Statements

The 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

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