23-06, Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Labor and Industrial RelationsPosted on Apr 10, 2023 in Summary
Two Special Funds, one revolving fund, and two trust accounts did not meet criteria
OUR REVIEW of six special funds, two revolving funds, four trust funds, and six trust accounts of the Department of Labor and Industrial Relations (DLIR) found two special funds, one revolving fund, and two trust accounts did not meet criteria for those types of funds and should be closed or reclassified.
Section 23-12, Hawai‘i Revised Statutes (HRS), requires the Auditor to review all existing special, revolving, and trust funds every five years. Reviews are scheduled so that each department’s funds are reviewed once every five years. Although not mandated by statute, we included trust accounts as part of our review. This is our sixth review of DLIR’s revolving funds, trust funds, and trust accounts. It is our second review of the special funds held by DLIR since Act 130, Session Laws of Hawai‘i 2013, amended Section 23-12, HRS, to require review of special funds along with revolving funds and trust funds.
We used criteria developed by the Legislature and by our office based on public finance and accounting literature. For each fund, we present a five-year financial summary, the purpose of the fund, and conclusions about its use. We did not audit the financial data, which is provided for informational purposes. We do not present conclusions about the effectiveness of programs or their management, or whether the programs should be continued.