Financial Audit of Hawai‘i Tourism AuthorityPosted on Mar 27, 2020 in Summary
Financial Statements, Fiscal Year Ended June 30, 2019
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 Tourism Authority, as of and for the fiscal year ended June 30, 2019. The audit was conducted by Accuity LLP.
FOR THE FISCAL YEAR ended June 30, 2019, HTA reported total revenues of $332.4 million, along with $5 million in transfers from other state departments, and total expenses of $108.3 million. Revenues consisted of $95.5 million from TAT, $9.3 million from charges for services, and interest and other revenues of $3.5 million. HTA also reported the cancellation of approximately $224.1 million in debt service payments on general obligation bonds related to the construction of the Hawai’i Convention Center pursuant to Act 86, Session Laws of Hawai’i 2018, effective July 1, 2018.
Total expenses of $108.3 million consisted of $96.4 million for contracts, $7.3 million for depreciation, and $4.6 million for payroll, administrative, and other expenses.
As of June 30, 2019, total assets and deferred outflows of resources of $325.5 million exceeded total liabilities and deferred inflows of resources of $16.5 million, resulting in a net position of $309 million. Total assets and deferred outflows of resources included: (1) cash of $96 million, (2) investments of $3.5 million, (3) land and net capital assets of $196.8 million, and (4) other assets and deferred outflows of resources of $29.2 million.
HTA RECEIVED AN UNMODIFIED OPINION that its financial statements were presented fairly, in all material respects, in accordance with generally accepted accounting principles.
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.
Special-Purpose Financial Statements for the Hawai‘i Convention Center, as of and for the year ended December 31, 2019, will issue in July.
|About the Authority
The Hawai‘i Tourism Authority (HTA) is responsible for developing and implementing a strategic tourism marketing plan and developing measures of effectiveness to assess the overall benefits and effectiveness of its marketing plan and its progress toward achieving the agency’s strategic plan goals. HTA is also responsible for the Hawai‘i Convention Center. The primary source of funding for HTA’s operations is the Transient Accommodations Tax (TAT) collected by the State. HTA is governed by a board of directors comprised of 12 voting members, each of whom is appointed by the Governor. HTA was established on January 1, 1999, and is placed within the Department of Business, Economic Development and Tourism for administrative purposes.