Office of the Auditor | State of Hawai`i

Photo: Hawai‘i Public Housing Authority

AUDITOR’S SUMMARY

Financial Statements, Fiscal Year Ended June 30, 2023

THE PRIMARY PURPOSE of the audit was to form an opinion on the fairness of the presentation of the financial statements for the Hawai‘i Public Housing Authority as of and for the fiscal year ended June 30, 2023. The audit was conducted by KMH LLP.

Financial Highlights

FOR THE FISCAL YEAR ended June 30, 2023, HPHA reported total revenues of $204.5 million and total expenses of $195.2 million, resulting in an increase in net position of $9.3 million.

Total revenues of $204.5 million consisted of (1) $29 million in charges for services and other revenues, (2) $148.3 million in operating grants and contributions, (3) $7.3 million in capital grants and contributions, (4) $19.4 million in State allotted appropriations, net of lapsed funds, and
(5) $500,000 in other non-program revenue.

Total expenses of $195.2 million consisted of (1) $108 million for the rental housing assistance program, (2) $73.3 million for the rental assistance program, (3) $11.5 million for the housing development program, and (4) $2.4 million for other costs.

As of June 30, 2023, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $472.7 million. The agency reported total assets and deferred outflows of resources of $571.1 million which were comprised of (1) cash of $116.8 million, (2) amounts due from State of $72.6 million, (3) notes and other receivables of $11.4 million, (4) net capital assets of $362.5 million, and (5) other assets and deferred outflows or resources of $7.8 million. The agency also reported total liabilities and deferred inflows of resources of $98.4 million which were comprised of (1) net pension liability of $38 million, (2) net other postemployment benefits other than pensions of $33.4 million, (3) accounts payable and accrued expenses of $14.9 million, and (4) other liabilities and deferred inflows of resources of $12.1 million.

Auditors’ Opinions
HPHA RECEIVED AN UNMODIFIED OPINION that its financial statements were presented fairly, in all material respects, in accordance with generally accepted accounting principles.

Findings
THERE WERE NO MATERIAL WEAKNESSES in internal control over financial reporting that were required to be reported under Government Auditing Standards.

HPHA is administratively attached to the Hawai‘i Department of Human Services (DHS). HPHA operates under the direction of its Executive Director and Board of Directors, which consists of eleven board members, nine of whom are appointed by the Governor. The Director of DHS and the Governor’s designee are ex-officio members.