Office of the Auditor | State of Hawai`i

Photo: IStock.com

AUDITOR’S SUMMARY

Financial Statements, Fiscal Year Ended June 30, 2024

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 Employer-Union Health Benefits Trust Fund, as of and for the fiscal year ended June 30, 2024. The audit was conducted by KKDLY LLC.

Financial Highlights

EUTF USES THE OPEB TRUST FUND to account for OPEB assets, liabilities, net position, and operations related to post-employment health benefits for retirees and their beneficiaries, including all employer OPEB contributions for retirees and their beneficiaries. An enterprise fund is used to account for active employee healthcare benefits.

ENTERPRISE FUND: For the fiscal year ended June 30, 2024, revenues totaled $122.1 million and expenses totaled $128 million, resulting in a net loss of $5.9 million. Revenues consisted of premium revenue self-insurance of $104.5 million, experience refunds of $1.2 million, and investment earnings and other revenues of $16.4 million.

Expenses consisted of benefit claims expenses of $116 million, administrative operating expenses of $8.9 million, depreciation of $2.6 million, and other operating expenses of $500,000.

As of June 30, 2024, assets and deferred outflows of resources totaled $270.6 million and liabilities and deferred inflows of resources totaled $79.5 million, resulting in a net position of $191.1 million.

OPEB TRUST FUND: For the fiscal year ended June 30, 2024, total additions of $1.8 billion, included $1.14 billion from employer contributions, $656.2 million from net investment earnings, and $200,000 from other sources. Total deductions were $564.4 million, resulting in a change of fiduciary net position of $1.24 billion.

As of June 30, 2024, the OPEB Trust Fund net position balance totaled $8.37 billion. The OPEB Trust Fund held $8.49 billion in assets and $120.9 million in liabilities.

Auditors’ Opinion

EUTF 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 REPORTED 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.