Office of the Auditor | State of Hawai`i

Photo: iStock.com

AUDITOR’S SUMMARY

Financial Statements, Fiscal Year Ended June 30, 2020

THE PRIMARY PURPOSE of the audit was to form an opinion on the fairness of the presentation of the financial statements for the Employees’ Retirement System of the State of Hawai‘i, as of and for the fiscal year ended June 30, 2020. The audit was conducted by KPMG LLP.

Financial Highlights

FOR THE FISCAL YEAR ended June 30, 2020, ERS reported total net additions of approximately $1.74 billion. Additions consisted of $1.39 billion from contributions and $358 million in net investment income.

Total deductions of approximately $1.59 billion consisted of (1) $1.55 billion for benefit payments; (2) $18 million for administrative expenses; and (3) $22 million for refund of member contributions.

As of June 30, 2020, assets totaled $18.85 billion and liabilities totaled $1.46 billion, leaving a net position balance of $17.39 billion. Total assets included (1) investments of $17.6 billion; 
(2) receivables of $250 million; (3) cash of $953 million; and (4) net equipment of $8 million.

Auditors’ Opinion
ERS RECEIVED AN UNMODIFIED OPINION that the 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 required to be reported under Government Auditing Standards.

THE EMPLOYEES’ RETIREMENT SYSTEM OF THE STATE OF HAWAI‘I (ERS) is a cost-sharing, multiple-employer retirement system for government workers. Through its pension benefits program, ERS provides a defined-benefit pension plan for all state and county employees, including teachers, professors, police officers, firefighters, correction officers, judges, and elected officials. ERS is governed by a Board of Trustees, which consists of eight members.