Office of the Auditor | State of Hawai`i

Photo: DOT Harbors Division

AUDITOR’S SUMMARY

Financial Statements, Fiscal Year Ended June 30, 2024

THE PRIMARY PURPOSE of the Department of Transportation, Harbors Division, Single Audit for the fiscal year ended June 30, 2024, was to comply with the Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2, Part 200 (Uniform Guidance), which established audit requirements for state and local governmental units that receive federal awards. The audit was conducted by Accuity LLP.

About the Report

SINGLE AUDITS provide assurance to the federal government that state agencies and programs receiving federal funds are expending those funds properly. This report includes the total federal expenditures and findings related to the DOT–Harbors’ Federal Financial Assistance Programs for the fiscal year ended June 30, 2024.

Auditors’ Opinion

DOT-HARBORS RECEIVED AN UNMODIFIED OPINION on its compliance with major federal programs in accordance with the Uniform Guidance.

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 that are required to be reported under Government Auditing Standards.

There were no findings that were considered material weaknesses in internal control over compliance in accordance with the Uniform Guidance. However, the auditors identified two significant deficiencies in internal controls over compliance that were required to be reported under the Uniform Guidance. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. The significant deficiencies are described on pages 11-12 of the single audit report.

The Department of Transportation, Harbors Division (DOT—Harbors) is responsible for Hawai‘i’s statewide system of commercial harbors consisting of ten harbors on six islands. Major activities include maintenance and operation, the construction of new harbor facilities, and the management of vessel traffic into, within, and out of Hawai‘i’s harbors. The Division is self-sustaining and receives no financial support from the State General Fund. Pursuant to Hawai‘i Revised Statutes, rates and charges imposed and collected pay for the costs of operations, maintenance, and repairs, as well as debt service on revenue bonds and other outstanding obligations. A capital improvements program is funded by the revenue and proceeds from harbors system revenue bonds.