Financial and Compliance Audit of the Stadium AuthorityPosted on Feb 6, 2023 in Summary
Financial Statements, Fiscal Year Ended June 30, 2022
THE PRIMARY PURPOSE of the audit was to form an opinion on the fairness of the presentation of the financial statements for the Stadium Authority, as of and for the fiscal year ended June 30, 2022, 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 N&K CPAs.
FOR THE FISCAL YEAR ended June 30, 2022, the Authority reported total revenues of $5.1 million and total expenses of $5.8 million, resulting in a net operating loss of $700,000. Revenues consisted of $4.7 million from rentals from attractions and $400,000 in parking fees and other revenues. The Authority’s net loss was partially offset by $7.3 million in capital contributions, which represents the portion of Aloha Stadium capital improvement costs that were paid by the State of Hawai‘i. In addition, the Authority received Coronavirus State and Local Fiscal Recovery Funds of $2.3 million resulting in an increase in net position of $9 million.
Expenses consisted of (1) $200,000 for depreciation, (2) $3.2 million for personnel services, (3) $1 million for utilities, and (4) $1 million for repairs and maintenance. Additional expenses totaled $400,000 and included state central services assessments as well as security, professional services, and other costs.
As of June 30, 2022, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources, resulting in a net position of $28.6 million. Of this amount, $37.4 million was invested in capital assets and there is an unrestricted net deficit of $8.8 million. The agency reported total assets and deferred outflows of resources of $43.6 million, comprised of (1) cash of $4.9 million, (2) receivables, other assets, and deferred outflows of resources of $1.3 million, and (3) net capital assets of $37.4 million. The agency reported total liabilities and deferred inflows of resources of $15 million, comprised of (1) net pension liability of $5.7 million, (2) vacation and other retirement payables of $6.3 million, and (3) other liabilities and deferred inflows of resources of $3 million.
There were no findings that were considered material weaknesses in internal control over compliance in accordance with the Uniform Guidance.
|About the Authority
The Stadium Authority (Authority) was established in 1970 and is responsible for the operation, management, and maintenance of Aloha Stadium, located in Honolulu, Hawai‘i. The Authority functions under the direction of a nine-member board, appointed by the Governor. In addition, the president of the University of Hawai‘i and the state superintendent of education are nonvoting ex-officio members of the board. For administrative purposes, the Authority is placed within the State of Hawai‘i’s Department of Accounting and General Services.