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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. 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”

Report No. 13-08 Management and Financial Audit of the Deposit Beverage Container Program, June 30, 2012

As in our previous audits of the Deposit Beverage Container Program, we found that the program relies on self-reported data from distributors and redemption centers that may be fraudulently or erroneously under- or over-reporting beverage containers sold, distributed, and redeemed. This flaw, coupled with an absence of a detailed audit function, exposes the program to abuse and risk of fraud, which threaten the financial sustainability of the program.
Summary or Full Report

Basic Redemption Process

Basic Redemption Process

 


Report No. 13-07 Audit of the Office of Hawaiian Affairs and Report on the Implementation of State Auditor’s 2009 OHA Recommendations 

We found that OHA’s land management infrastructure is inadequate and unable to support the office’s growing real estate portfolio. In 2008, trustees disregarded a consultant’s proposal to expand the office’s Land and Property Management division as well as proposals for a real estate business plan and investment policy. OHA’s administration of its grants program is also weak, with inadequate and inconsistent grant monitoring.
Summary or Full Report

 OHA Properties (as of February 2013)

OHA Properties (as of February 2013)

 


Report No. 13-06 Audit of the Kahoʻolawe Rehabilitation Trust Fund

After 18 years and $51 million, the Kahoʻolawe Island Reserve Commission has only partially restored about 13% of its planned restoration area. It has not established a comprehensive restoration effort plan, including costs or completion dates; and at its current rate of spending, the trust fund will be depleted by 2016.
Summary or Full Report

Satellite image of Kahoolawe

Areas shaded in light green are the 4,300 acres
targeted for restoration.

 


Report No. 13-05 Feasibility Study of Removing Amateur Boxing From the Jurisdiction of the State Boxing Commission

Hawaiʻi’s sunset law, Chapter 26H, HRS, provides that regulation is justified only if there is a need to protect the consumer. In the case of amateur boxing, regulation is primarily to protect the contestant rather than the public. Not only is there little evidence of harm in amateur boxing, but the abuses we found were negligible. Although the majority of stakeholders are in favor of continued state regulation and oversight, most also believed that USA Boxing rules provide the same protection against harm and abuse.
Summary or Full Report

Graph - Number of amateur boxers and coaches 2009 to 2013

 


Report No. 13-04 Procurement Examination of the Department of Transportation

We found that the DOT’s Airports Division not only outsourced its management functions, it also removed itself from parts of the decisionmaking process, surrendering key oversight and management responsibilities. This disengagement resulted in questionable allowances to the program manager, such as the provision of rent-free facilities and the reimbursement of $570,000 in office renovation expenses.
Summary or Full Report

Photo of office space

Office space used by program management contractor Parsons for training sessions.

 


 

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.

 

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 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 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 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

State of Hawaiʻi Single Audit Report – June 30, 2012

 

Department of the Attorney General – June 30, 2012 Financial Statements and Single Audit Report

The auditors from Akamine, Oyadomari & Kosaki, CPAs reported one noncompliance finding that was deemed material to the financial statements and two findings that we considered significant deficiencies in controls over major federal programs. For instance, they found that there is not enough cash in the Child Support Enforcement Agency fund to pay all of the agency obligations.
Summary or Full Report

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 Health Drinking Water Treatment Revolving Loan Fund – June 30, 2012 Financial Statements

 

Department of Health Water Pollution Control Revolving Fund – June 30, 2012 Financial Statements

 

Department of Human Services – June 30, 2012 Financial Statements and Single Audit Report

The auditors from N&K CPAs, Inc. reported five material weaknesses and four significant deficiencies over compliance and internal control over major federal programs. For instance, they found that the Medicaid drug rebate program is not monitored; and utilization, fraud, and accuracy of Medicaid claims are inadequately controlled.
Summary or Full Report

Department of Human Services Hawaiʻi Public Housing Authority – June 30, 2012 Financial Statements and Single Audit Report

The auditors from KMH LLP identified 11 material weaknesses in internal control, which included insufficient quality control reviews over tenant eligibility requirements, which allowed various miscalculations and missing data to go unnoticed. The auditors also identified a significant deficiency in compliance controls.
Summary or Full Report

Department of Transportation Harbors Division – June 30, 2012 Financial Statements

The auditors from Kobayashi, Kanetoku, Doi, Lum & Yasuda CPAs LLC reported no deficiencies in internal control over financial reporting. However, they did find three significant deficiencies in internal control over compliance. For example, they found that American Recovery and Reinvestment Act jobs were not reviewed.
Summary or Full Report

Department of Transportation Harbors Division – June 30, 2012 Single Audit 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


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