Office of the Auditor | State of Hawai`i

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AUDITOR’S SUMMARY

Single Audit of Federal Financial Assistance Programs of the State of Hawai‘i
Financial Statements, Fiscal Year Ended June 30, 2021

THE PRIMARY PURPOSE  of the State Single Audit for the fiscal year ended June 30, 2021, 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 State Single Audit was conducted by Accuity LLP.

Auditors’ Report on Internal Controls over Financial Reporting

THE AUDITORS IDENTIFIED one material weakness and two significant deficiencies in internal controls over financial reporting that are required to be reported in accordance with Government Auditing Standards. The material weakness is described on pages 19-20 of the report, and the significant deficiencies are described on pages 21-24 of the report.

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.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Auditors’ Report on Compliance with Major Federal Programs

THE AUDITORS EXPRESSED A QUALIFIED OPINION on certain major programs and identified one material weakness and six significant deficiencies over compliance with major federal programs that are required to be reported in accordance with the Uniform Guidance. These findings are described in a Schedule of Findings and Questioned Costs that can be found on pages 25-35 of the report. A table with the number and type of findings by department can be found below.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected on a timely basis.

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.

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 only those departments that are included in the State of Hawaiʻi Single Audit of Federal Financial Assistance Programs for the fiscal year ended June 30, 2021. For the departments included in the report that receive federal monies, federal expenditures totaled approximately $5.12 billion. Other departments’ federal expenditures and findings are reported in their individual single audit reports.