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

A Multitude of Missteps

Report No. 15-10, Audit of the Hawaiʻi Health Connector’s Mansha Contracts

We found that instead of taking steps to ensure it selected the most qualified vendor at the best price, the Connector awarded Mansha a multi-million dollar contract based on personal recommendations. In total, the Connector awarded $21.6 million in IT contracts to Mansha.
Summary or Full Report

Connector Grant Fund Usage, by Percentage

Connector Grant Fund Usage, by Percentage


Lack of Procurement Controls Exposes Health Department to Waste and Abuse

Report No. 15-09, Procurement Examination of the Department of Health

We found there is minimal oversight over department staff and no process to provide them with procurement service support. When a procurement issue arises, staff do not have clearly defined procedures for how they should obtain technical assistance.
Summary or Full Report

Summarized Financial Results, Fiscal Year Ended June 30, 2013 (rounded to nearest thousand)

Summarized Financial Results, Fiscal Year Ended June 30, 2013 (rounded to nearest thousand)


Report No. 15-08, Sunset Evaluation: Respiratory Therapists

Continued state regulation of respiratory therapists is warranted because key statutory criteria have been fulfilled. Regulation of respiratory therapists is reasonably necessary to protect the health and safety of consumers. We also found the Department of Commerce and Consumer Affairs could make several improvements to the respiratory therapist program’s operations.
Summary or Full Report

Photo of Intubation Procedure

Photo of Intubation Procedure


Report No. 15-07, Audit of the Research Corporation of the University of Hawaiʻi

RCUH was formed to play a proactive role in promoting the welfare of Hawaiʻi’s people by initiating, stimulating, conducting, and coordinating research and training statewide, and commercializing inventions and discoveries. We found, however, that RCUH acts primarily as a provider of services to UH, which constituted $9 out of every $10 in RCUH business in FY2014.
Summary or Full Report

RCUH Total Project Volume, FY2004-FY2014

RCUH Total Project Volume, FY2004-FY2014


Report No. 15-06, Getting on Board: Follow-up on Recommendations Made in Report No. 12-07, Management Audit of the Department of Education’s School Bus Transportation Services

This report follows up on the recommendations we made in
Report No. 12-07. It details each recommendation, its status, and actions taken related to the recommendation. We deemed eight recommendations closed (40 percent) and nine open but in progress (45 percent) one open and not likely to be pursued (5 percent), and two were not assessed (10 percent).
Summary or Full Report

Example of Transfinder System Route Map

Example of Transfinder System Route Map


Report No. 15-05, Pushing Boundaries: Follow-up on Recommendations Made in
Report No. 12-02, Investigation of the Stadium Authority’s Swap Meet Operations

This report follows up on the recommendations we made in
Report No. 12-02. It details each recommendation, its status, and actions taken related to the recommendation. We deemed seven recommendations closed (70 percent) and three open but in progress (30 percent).
Summary or Full Report

Swap meet vendor selling tourist items

Swap meet vendor selling tourist items


Report No. 15-04, Progress, But Transparency Issues Persist:  Follow-up on Recommendations Made in Report No. 12-03, Management Audit of the Natural Energy Laboratory of Hawaiʻi

This report follows up on the recommendations we made in
Report No. 12-03. It details each recommendation, its status, and actions taken on the recommendation. We deemed 17 of the 28 closed (63 percent), five open (19 percent), three open but in progress (11 percent), and two no longer applicable (7 percent). One recommendation was not assessed.
Summary or Full Report

NELHA's seawater distribution system

NELHA’s seawater distribution system


Report No. 15-03, Program In Place: Follow-up on Recommendation Made in Report No. 12-04, Study of the Transfer of Non-General Funds to the General Fund

This report follows up on the recommendation we made to the Department of the Attorney General in Report No. 12-04, which reviewed the AG’s process for determining the propriety of transfers of non-general funds to the general fund. We now find that, as we recommended, the department has developed a checklist to help determine the propriety of transfers. The department has also conducted training in the use of the checklist.

General Fund Portion of State Operating Budget

General Fund Portion of State Operating Budget


Report No. 15-02, Financial and Program Audit of the Deposit Beverage Container Program, June 30, 2014

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

Bottle-Bill_15-02

Overview of the Deposit and Redemption Process


Study of Proposed Special and Revolving Funds

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 of the 44 new special and revolving funds proposed during the 2015 legislative session met amended statutory criteria for establishing such funds.  In 2014, none of the 37 funds proposed met the criteria.
Summary or Full Report

Few proposed funds have met criteria under Act 130, Session Laws of Hawaiʻi 2013

Few proposed funds have met criteria under Act 130, Session Laws of Hawaiʻi 2013


Report No. 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 No. 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 No. 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)


 

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, 2014

Auditors from Accuity LLP reported one material weakness and two significant deficiencies in internal control over financial reporting. They also found five material weaknesses and 22 significant deficiencies in internal control over compliance.
Summary or Full Report

Department of Accounting and General Services, Stadium Authority – June 30, 2014 Financial Statements

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

Department of Accounting and General Services, State Motor Pool Revolving Fund – June 30, 2014 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

Department of Accounting and General Services, State Parking Revolving Fund – June 30, 2014 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

Department of the Attorney General – June 30, 2014 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. There were no findings that were considered to be material weaknesses in internal control over compliance. In other matters, the auditors found that controls were lacking to ensure compliance with federal grant subrecipient monitoring requirements and the deficit fund balance of $2 million in the CSEA agency funds needs to be resolved.
Summary or Full Report

Department of Business, Economic Development & Tourism, Hawaiʻi Housing Finance and Development Corporation – June 30, 2014 Financial Statements and Single Audit Report

The auditors from Accuity 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

Department of Education – June 30, 2014 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 required to be reported under Government Auditing Standards. However they found a significant deficiency in internal controls over financial reporting . The auditors also found a deficiency in internal controls over compliance that was considered to be a material weakness.
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 to be material weaknesses in internal control over compliance.
Summary or Full Report

Department of Health – June 30, 2014 Financial Statements and Single Audit Report

The auditors from N&K CPAs, Inc. identified three significant deficiencies and no material weaknesses in internal controls over financial reporting. They also reported three material weaknesses and five significant deficiencies in internal controls over compliance.
Summary or Full Report

Department of Health, Drinking Water Treatment Revolving Loan Fund – June 30, 2014 Financial Statements

The auditors from N&K 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.

Department of Health, Water Pollution Control Revolving Fund – June 30, 2014 Financial Statements

The auditors from N&K 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.

Department of Human Services – June 30, 2014 Financial Statements and Single Audit Report

The auditors from KMH LLP reported one material weakness in internal controls over financial reporting. They also reported 18 material weaknesses and one significant deficiency in internal controls over compliance.
Summary or Full Report

Department of Human Services, Hawaiʻi Public Housing Authority – June 30, 2014 Financial Statements and Single Audit Report

The auditors from KMH LLP reported a significant deficiency in internal control over financial reporting and two deficiencies in internal control over compliance that were considered material weaknesses.
Summary or Full Report

Department of Transportation, Administration Division – June 30, 2014 Financial Statements and Single Audit Report

The auditors from CW Associates, A Hawaiʻi 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. However, there were two deficiencies in internal controls over compliance that were considered to be significant deficiencies.
Summary or Full Report

Department of Transportation, Airports Division – June 30, 2014 Financial Statements

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 to be material weaknesses in internal control over compliance.
Summary or Full Report

Department of Transportation, Airports Division – June 30, 2014 Single Audit Report

 

Department of Transportation, Harbors Division – June 30, 2014 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, 2014 Financial Statements

The auditors from KKDLY LLC identified two significant deficiencies and no material weaknesses in internal controls over financial reporting. They also reported three significant deficiencies in internal controls over compliance.
Summary or Full Report

Department of Transportation Highways Division – June 30, 2014 Single Audit Report

 

Department of Transportation Oahu Metropolitan Planning Organization – June 30, 2014 Financial Statements and Single Audit Report

Auditors from Gilford Sato & Associates, CPAs, Inc. reported six material weaknesses in internal control over financial reporting. They also found two 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

Hawaiʻi Convention Center – December 31, 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

Hawaiʻi Employer-Union Health Benefits Trust Fund – June 30, 2014 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 Tourism Authority – June 30, 2014 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

Employees’ Retirement System – June 30, 2013 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

 


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