Office of the Auditor | State of Hawai`i

Recent Reports

Report No. 20-02, Report on Compliance with Statutory Requirements Based on Report No. 15-13, Study of State Departmental Engineering Sections That Manage Capital Improvement Projects

Departments and agencies that manage their own capital improvement projects are statutorily required to implement three recommendations we made in Report No. 15-13, as well as an annual training requirement.  This report assesses departments’ compliance with all four requirements.
Summary or Full Report

---

Report No. 20-01, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Business, Economic Development and Tourism

We reviewed 69 funds and accounts administered by the Department of Business, Economic Development and Tourism (DBEDT) and reported on 38 of them. We found 6 revolving funds, 1 special fund, and 2 trust accounts did not meet criteria. We also noted that DBEDT did not file statutorily required reports for non-general funds and for administratively created funds.
Summary or Full Report

---

Report No. 19-17, Study of Proposed Mandatory Health Insurance for Clinical Victim Support Services for Victims of Sexual Violence and Abuse

In Report No. 19-17, Study of Proposed Mandatory Health Insurance for Clinical Victim Support Services for Victims of Sexual Violence and Abuse, we surveyed Hawai‘i’s health-plan providers and found the State’s three largest insurers state that they already provide support services for sexual violence victims. However, we found that significant data on demand and reimbursement for these services, relevant to our impact assessment, was often not available.
Summary or Full Report

---

2018 Annual Report

Last year we published audit reports on agencies such as the Office of Hawaiian Affairs, the Hawai‘i Tourism Authority, and the Public Utilities Commission, and on subjects such as the Office of Health Care Assurance’s Adult Residential Care Homes, and Mandatory Health Insurance for Port-Wine Stains.
Full Report

---

Report No. 19-16, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of the Attorney General

We reviewed 21 funds and accounts administered by the Department of the Attorney General (AG) and reported on 19 of them. We found 2 revolving funds, 2 trust funds, and 2 trust accounts did not meet criteria. We also noted that AG did not file statutorily required reports for non-general funds and for administratively created funds.
Summary or Full Report

---

Report No. 19-15, Report on the Implementation of the State Auditor’s Recommendations 2014 – 2017

This report presents the status of agencies’ implementation of recommendations made by our office. Status was determined both through an independent, “active review” by our office and through formal requests to the agencies for a report of implementation status and steps taken toward implementation. This report covers recommendations made within the last five years, in reports issued from 2014-2017.
Full Report

---

Report No. 19-14, Follow-Up on Recommendations from Report No. 16-08, Audit of Hawai‘i’s Motion Picture, Digital Media, and Film Production Income Tax Credit

In 2016, we found that DoTAX had not adopted administrative rules needed to provide assurance that the Film Tax Credit is properly administered. In our follow-up, we found that DoTAX continues to construe the film tax credit statute to include out-of-state expenditures as “qualified production costs,” which is inconsistent with the plain language of the statute and the Legislature’s intent that the incentive would stimulate economic growth in Hawai‘i.
Full Report

---

Report No. 19-13, Audit of the Department of Education’s Administration of School Impact Fees

In 2007, the Legislature passed a school impact fee law to give the Department of Education a new method of financing new schools and classrooms in areas anticipating high residential growth.  Twelve years after the law was enacted, however, implementation remains a struggle and the department has collected only $5.3 million in impact fees, a fraction of the estimated $80 million to $100 million it would cost to build an elementary school today.
Summary or Full Report

---

Report No. 19-12, Audit of the Department of Land and Natural Resources’ Special Land and Development Fund

Although the SLDF has become an increasingly important source of funding, the Land Division does not deem it necessary to develop a long-term strategic plan or asset management plan to guide the administration of the public lands in its portfolio. Without such plans, the Land Division’s management of its leases and revocable permits must resort to simply maintaining the status quo.
Summary or Full Report

---

Honolulu Authority for Rapid Transportation: Contract and Vendor Compliance Review Report

In this report, Baker Tilly Virchow Krause, LLP examined the Honolulu Authority for Rapid Transportation’s (HART) contractor invoice review and payment processes for compliance with documented policies and procedures, as well as the rail authority’s enforcement of contract billing terms and conditions. It is the fourth report on HART’s financial management in accordance with Act 1.
Summary or Full Report

---

Report No. 19-11, Review of the Department of Accounting and General Services’ Verification of the Honolulu Authority for Rapid Transportation’s Invoices

In this report, we examined the policies, procedures, and controls implemented by the Department of Accounting and General Services (DAGS) to assess whether invoices submitted by the Honolulu Authority for Rapid Transportation (HART) are eligible for payment using tax revenues. We found that DAGS fundamentally misunderstands its responsibilities under Act 1, performing unnecessary busy work that not only wastes time and money but also increases the risk of improper payment. Without administrative rules and documented procedures, there is a substantial risk DAGS’ staff auditors’ reviews are arbitrary and inconsistent.
Summary or Full Report

---

Report No. 19-10, Analyses of Proposed Special and Revolving Funds 2019

Only about half of the money the State spends each year comes from its main financial account, the general fund. The other half of expenditures are financed by special, revolving, federal, and trust funds. In FY2019, non-general funds accounted for about half of the State’s $14.3 billion operating budget, an increase of 22 percent from FY2008. This proliferation of non-general funds has hampered the Legislature’s ability to direct general fund spending.
Summary or Full Report

---

Report No. 19-09, Sunrise Analysis: Regulation of Home Inspectors

Based on the limited scope of work that home inspectors perform, and an absence of reported complaints, we are unable to conclude that regulation of home inspectors is “reasonably necessary to protect the health, safety, or welfare of consumers,” nor can we conclude that the health, safety, or welfare of consumers may be “jeopardized” by the nature of home inspection services.
Summary or Full Report

---

Report No. 19-08, Financial and Program Audit of the Department of Health’s Deposit Beverage Container Program, June 30, 2018

In Report No. 19-08, we found that the Department of Health has not addressed the Deposit Beverage Container Program’s fundamental weaknesses, identified more than a decade ago. The program remains entirely dependent upon beverage distributors and redemption centers to self-report how many containers they import into the State and the number they collect for recycling. As a result, moneys paid into the program’s special fund and moneys paid out of it are based on unverified numbers and opportunities for fraud and error are legion. This financial and program audit, which covers the fiscal year that ended June 30, 2018, also found further evidence of an incomplete and broken system.
Summary or Full Report

---

Report No. 19-07, Study of Proposed Mandatory Health Insurance Coverage for Medically Necessary Transportation from the State to the Continental United States for “Qualifying Patients”

We found that there is a relatively low demand for air ambulance services to the continental United States, but costs for each case are high – estimates range from $42,000 to $112,000 for a single trip. In addition, the specific definition set forth in the proposed coverage could lead to unintended effects.
Summary or Full Report

---

Report No. 19-06, Follow-Up on Recommendations from Report No. 14-02, Audit of the Department of Human Services’ Med-QUEST Division and Its Medicaid Program

In 2014, we found that division management had neglected to commit sufficient resources to its efforts to curb fraud, waste, and abuse. As a result, Hawai‘i’s detection and enforcement activities lagged, exposing the State to tens of millions of dollars in losses annually. In our follow-up, we found that DHS has implemented 10 and partially implemented 6 of the 19 recommendations. Three recommendations have not been implemented and remain open.
Full Report

---

Report No. 19-05, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Transportation

We reviewed 377 funds and accounts administered by the Department of Transportation (DOT) and reported on 46 of them. We noted certain sub-accounts with remaining balances totaling approximately $120 million as of June 30, 2018, had no financial activity during our 5-year review period. We also noted that DOT created 2 funds – specifically, 1 special fund and 1 revolving fund – administratively, outside of the legislative process.
Summary or Full Report

---

Report No. 19-04, Audit of the Honolulu Authority for Rapid Transportation: Report 2

In Report 2, we examined the Honolulu Authority for Rapid Transportation’s current management structure, the relationship between HART and its Board of Directors, and HART’s use of third-party consultants to manage the Honolulu Rail Transit Project, focusing on fiscal years 2017 and 2018. Among the findings: HART and Board policies delineating decision-making responsibilities are still in flux. In addition, while HART relies on a third-party consultant, HDR Engineering, Inc., to staff many of HART’s key management positions, HART does not evaluate the performance of the embedded HDR employees and approves HDR monthly invoices that average about $800,000 with little substantive review.
Summary or Full Report

---

Report No. 19-03, Audit of the Honolulu Authority for Rapid Transportation: Report 1

In 2012, the City and County of Honolulu broke ground on a 20.1 mile elevated rail transit system extending from Kapolei to Ala Moana.  We found that, as the Honolulu Rail Transit Project progressed and costs swelled from $5.122 billion in 2012 to $9.188 billion in 2018, HART began reporting information to the public that often contradicted its own internal projections or differed from what it was telling the Federal Transit Administration.  We found that HART’s inaccurate reporting of its estimated costs to complete the Project and the estimated date by which it expected to begin full operations undermined the Board’s oversight, obscured the extent of the Project’s financial problems, and eroded public confidence.
Summary or Full Report

---

Report No. 19-02, Follow-Up on Recommendations from Report No. 14-11, Audit of the Hawai‘i State Foundation on Culture and the Arts

In 2014 we found that the Commission lacked training, bylaws, and other mechanisms to focus its attention on policy and planning, and subsequently, focused its efforts on operations, such as art acquisition. In our follow-up, we found that the Foundation and DAGS have implemented 16 and partially implemented 7 of the 29 recommendations. Six recommendations have not been implemented and remain open.
Full Report

---

Report No. 19-01, Audit of the Department of Land and Natural Resources’ Land Conservation Fund

Hawai‘i has long recognized the concept of government ownership and management of land as a conservation tool. In our audit, we found that DLNR and DOFAW have struggled to properly manage the Legacy Land Conservation Program, hampering its effectiveness. After a little more than a decade in existence, the Legacy Land Conservation Program has awarded 58 projects with $47.3 million in grant moneys. Only about half of these projects have reached completion – i.e., land purchased and conserved. Almost a third of the awards are still pending.
Summary or Full Report

---

Report No. 18-21, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Accounting and General Services

We reviewed 92 funds and accounts administered by the Department of Accounting and General Services (DAGS) and reported on 33 of them. We found 2 special funds, 2 trust funds, and 4 trust accounts did not meet criteria. We also noted that DAGS did not file statutorily required reports for administratively created funds.
Summary or Full Report

---

Report No. 18-20, Study of Proposed Mandatory Health Insurance for Port-Wine Stains

In Report No. 18-20, Study of Proposed Mandatory Health Insurance for Port-Wine Stains, we surveyed Hawai‘i’s health-plan providers and found that insurance coverage is currently provided for “medically necessary” treatment. However, there are differing positions between health insurers and health care providers as to when treatments for port-wine stains are for cosmetic purposes and when treatments are considered medically necessary.
Summary or Full Report

---

Report No. 18-19, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Land and Natural Resources

We reviewed 107 funds and accounts administered by the Department of Land and Natural Resources and reported on 37 of them. Among our findings, we found three special funds and their related sub-accounts with remaining balances of nearly $1.9 million as of June 30, 2018 had no financial activity during the 5-year period of our review.
Summary or Full Report

---

Report No. 18-18, Audit of the Office of Health Care Assurance’s Adult Residential Care Homes Program

In Report No. 18-18, we found that the office renewed licenses without first completing the relicensing process, substituted much less rigorous unannounced care home visits for statutorily required inspections and issued licenses without even inspecting or visiting the facilities.  About half of the 214 care homes we sampled were allowed to operate in 2017 with either an expired license or a license hastily issued before all required steps of the relicensing process were completed.
Summary or Full Report

---

Report No. 18-17, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Budget and Finance

We reviewed twenty-nine special funds, trust funds, and trust accounts administered by the Department of Budget and Finance and found one special fund did not meet criteria and should be closed.
Summary or Full Report

---

Report No. 18-16, Report on the Implementation of State Auditor’s Recommendations 2012 – 2016

This report presents the status of agencies’ implementation of recommendations made by our office. Status was determined both through an independent, “active review” by our office and through formal requests to the agencies to report implementation status and steps taken toward implementation. This report covers recommendations made in the five-year period from 2012-2016.
Full Report

---

Report No. 18-15, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Agriculture

We reviewed fifty funds and accounts administered by the Department of Agriculture and found 5 special funds and 2 revolving funds did not meet criteria.
Summary or Full Report

---

Report No. 18-14, Follow-Up on Recommendations from Report No. 15-18, Audit of the Department of Transportation’s Energy Performance Contracts: Improved Oversight is Needed to Ensure Savings

In 2015, our audit of the Department of Transportation’s energy performance contracts found flaws in the design and implementation of the project. In our follow-up report, we found that DOT implemented or partially implemented eight of nine recommendations; one recommendation was no longer applicable.
Full Report

---

Report No. 18-13, Follow-Up on Recommendations from Report No. 15-09, Procurement Examination of the Department of Health: Lack of Procurement Controls Exposes Health Department to Waste and Abuse

In 2015, our audit of the Department of Health’s procurement functions found that DOH did not systematically review procurement activities to monitor compliance. Our follow-up report found that DOH has implemented one recommendation, partially implemented two recommendations, and has not implemented two recommendations.
Full Report

---

Report No. 18-12, Follow-Up on Recommendations from Report No. 15-20, Audit of the Department of Human Services’ KOLEA System

Our 2015 audit of the Department of Human Services’ KOLEA (Kauhale On-line Eligibility Assistance) System found that the new IT application fell short of meeting Affordable Care Act goals. We conducted a follow-up to assess the status of the 14 recommendations made in that report and found that DHS had implemented, or partially implemented all of them.
Full Report

---

Report No. 18-11, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Defense

Our review of six trust funds and four trust accounts of the Department of Defense (DOD) found one trust fund did not meet criteria and should be closed.
Summary or Full Report

---

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

---

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.

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

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.

---

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

---

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

---

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

---

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

---

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

---

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

---

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

---

Recent Financial Audits

State of Hawaiʻi Comprehensive Annual Financial Report

June 30, 2018

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

State of Hawaiʻi Single Audit Report

June 30, 2018

The auditors from Accuity LLP identified three significant deficiencies in internal control over financial reporting or other matters and four material weaknesses and ten significant deficiencies in internal control over compliance with major federal programs that are required to be reported in accordance with Government Auditing Standards  and the Uniform Guidance, respectively.
Summary or Full Report

Department of Health, Drinking Water Treatment Revolving Loan Fund

June 30, 2019 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 Program.
Summary or Full Report

Department of Health, Water Pollution Revolving Fund

June 30, 2019 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 Program.
Summary or Full Report

Hawaiʻi Community Development Authority

June 30, 2019 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.
Summary or Full Report

Hawaiʻi Employer-Union Health Benefits Trust Fund

June 30, 2019 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, 2019 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 for federal funds.  The auditors identified a deficiency in internal control over compliance that was considered a significant deficiency.
Summary or Full Report

Hawaiʻi Public Housing Authority

June 30, 2019 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 findings that were considered material weaknesses in internal control over compliance that are required to be reported under the Uniform Guidance.
Summary or Full Report

Stadium Authority

June 30, 2019 Financial Statements

The auditors from N&K CPAs, Inc. found no significant deficiencies in internal control over financial reporting that would have required reporting under Government Auditing Standards. The auditors identified one material weakness. There were no instances of noncompliance or other matters 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, 2018 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, 2018 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, 2018 Financial Statements and Single Audit Report

The auditors from Egami & Ichikawa CPAs, Inc. identified two deficiencies in internal control over financial reporting or other matters that are required to be reported in accordance with 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 Education

June 30, 2018 Financial Statements and Single Audit Report

The auditors from KKDLY LLC identified one significant deficiency in internal control over financial reporting or other matters that is required to be reported in accordance with Government Auditing Standards.  The auditors also identified two significant deficiencies in internal control over compliance in accordance with the Uniform Guidance.
Summary or Full Report

Department of Hawaiian Home Lands

June 30, 2018 Financial Statements and Single Audit Report

The auditors from Akamine, Oyadomari & Kosaki, 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 Health

June 30, 2018 Financial Statements and Single Audit Report

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

Department of Human Services

June 30, 2018 Financial Statements and Single Audit Report

The auditors from KMH LLP reported one significant deficiency in internal control over financial reporting and 14 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, 2018 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, 2018 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.
Summary or Full Report

Department of Transportation, Airports Division

June 30, 2018 Single Audit Report

The auditors from BKD, 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.
Full Report

Department of Transportation, Harbors Division

June 30, 2018 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, 2018 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, 2018 Single Audit Report

The auditors from BKD, LLP reported one material weakness and one significant deficiency in internal control over financial reporting 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

Employees’ Retirement System

June 30, 2018 Financial Statements

The auditors from KPMG 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

Hawaiʻi Convention Center

December 31, 2018 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 Tourism Authority

June 30, 2018 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, 2018 Financial Statements and Single Audit Report

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

Department of Land and Natural Resources

June 30, 2017 Financial Statements

The auditors from N&K CPAs, Inc. identified four material weaknesses and one other matter in internal control over financial reporting or other matters that are required to be reported in accordance with Government Auditing Standards.
Summary or Full Report

---

Other Financial Audits

• Hawaiʻi Health Systems Corporation June 30, 2018 Financial Report
• University of Hawaiʻi June 30, 2018
  Financial Report
• University of Hawaiʻi June 30, 2017
  Single Audit Report

---

Other Recent Publications

• 2018 Annual Report
• 2019 Peer Review of the State of Hawaiʻi Office of the Auditor
• Office of the Auditor June 30, 2019 Financial Statements
• Letter to the President of the Senate and Speaker of the House of Representatives on Act 97 SLH 2013

---