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Colleen NI. Schrandt <br />Legislative aud tlor <br />,llud ung : I ddress <br />/fort ai a County Building <br />25 : upon, Street <br />lldo, llairai'i 96720 <br />Date: April 22, 2010 <br />Att. <br />i i nnnfu Qf paflxai'i <br />OFFICE OF THE LEGISLATIVE AUDITOR <br />Telephone. (808) 961 -8386 Facsinule (808) 961 -8905 <br />To: J Yoshimoto, Chairman <br />And Members of the County Council <br />From: Colleen Schrandt <br />Legislative Auditor <br />Should you have any questions, please contact Colleen Schrandt, Legislative Auditor. <br />Serving the Interests of the People of Our Island <br />Haim; County is an Equal Opportunity Provider and /implorer <br />Business .I ddresa <br />1266 Aame home lui .! v <br />/runu'ork.■ Building, Room 4-1 <br />Ildo, Hawaii 96721 <br />Enclosed for your information and review is a letter from KPMG LLC requesting an increase of <br />$35,000.00 to Contract No. 000756 (to conduct audits of the accounts and financial transactions <br />of the County of Hawai'i), as there has been a significant change in the scope of their services <br />pertaining to the single audit of the County's federal financial assistance programs for fiscal year <br />ended June 30, 2009. <br />In order to receive federal funds, the County is required to undergo a single audit. The Office of <br />Management and Budget (OMB) Circular A -133 establishes specific requirements and <br />thresholds for the single audit and the number of major programs required to be included in the <br />single audit changes each year based upon the amount of federal funds received during that year. <br />For the Fiscal Year 2008 -2009, this resulted in five major federal assistance programs being <br />audited to meet the single audit requirement. However, KPMG's original contract fees included <br />only two programs for the fiscal year ended June 30, 2009. <br />KPMG has communicated that the addition of three major programs will require an additional <br />222 hours (approximate) over the original 414 hours as submitted in their initial proposal to <br />complete the single audit. The additional cost breakdown is attached for your review. <br />We are requesting the Department of Finance to certify $35,000.00 from the Legislative <br />Auditor's Miscellaneous Contract Services, Audits, Studies, Services, Account No. <br />010.108.5108.02.115, as sufficient funds were budgeted to cover the additional contract cost. <br />Conpi. No. 7 q <br />Ref. To: <br />Ref, APR 22 2010 <br />