Office of the Auditor | State of Hawai`i

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AUDITOR’S SUMMARY

Financial Statements, Fiscal Year Ended June 30, 2021

THE PRIMARY PURPOSE of the audit was to form an opinion on the fairness of the presentation of the financial statements for the Department of the Attorney General, as of and for the fiscal year ended June 30, 2021, and to comply with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which established audit requirements for state and local governmental units that receive federal awards. The audit was conducted by KPMG LLP.

Financial Highlights

FOR THE FISCAL YEAR ended June 30, 2021, AG reported total revenues of $106.3 million and total expenses of $106.7 million, resulting in a decrease in net position of approximately $453,000. Revenues include general revenues of $48.1 million, primarily state appropriations; program revenues consisting of charges for services of $25 million; and operating grants and contributions of $33.2 million.

Expenses of $106.7 million consisted of (1) $63.6 million for general administrative and legal services; (2) $20.5 million for child support enforcement; (3) $16 million for crime prevention and justice assistance; and (4) $6.6 million for criminal justice data center activities.

Auditors’ Opinions
AG RECEIVED AN UNMODIFIED OPINION that its financial statements were presented fairly, in all material respects, in accordance with generally accepted accounting principles. AG also received an unmodified opinion on its compliance with major federal programs in accordance with the Uniform Guidance.

Findings
THERE WAS ONE MATERIAL WEAKNESS in internal control over financial reporting that was required to be reported under Government Auditing Standards. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. The material weakness is described on page 56 of the report.

THERE WERE NO FINDINGS that were considered material weaknesses in internal control over compliance in accordance with the Uniform Guidance.

The Department of the Attorney General (AG) provides legal services to the executive, legislative, and judicial branches of Hawai‘i State government, including furnishing formal and informal legal opinions to the Governor, Legislature, and heads of Hawai‘i State departments and offices and approving documents relating to the acquisition of lands and interests by the State. AG also maintains criminal justice information, conducts investigations, operates crime prevention programs, and represents the State of Hawai‘i in legal proceedings. AG’s Child Support Enforcement Agency provides assistance to children by locating parents, establishing paternity and support obligations, and enforcing those obligations.