COM 0259.001 2016-2018 - Laserfiche WebLink

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• N&K CPAs, Inc. ACCOUNTANTSCONSULTANTS and assumptions used to compute the liability for postretirement benefits other than pensions in determining that it is reasonable in relation to the financial statements taken as a whole. The collective net pension liability, deferred inflows of resources, and deferred outflows of resources of the cost-sharing multiple employer defined pension plan administered by the State of Hawai`i's Employee Retirement System was determined by an actuarial valuation. The County's proportionate share of the collective net pension liability, deferred inflows of resources, deferred outflow of resources was based on the County's contributions to the pension plan relative to the contributions of all participating employers during the measurement period.We evaluated the key factors and assumptions used to compute the County's proportionate share of the collective net pension liability, deferred inflows of resources, deferred outflow of resources in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the loss reserve for workers' compensation was determined by senior adjusters and adjusted as necessary based on historical costs for similar incidents. We evaluated the key factors and assumptions used to compute the loss reserve in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the landfill closure and postclosure cost liability was determined by the County's engineers based on analysis performed by a third party contractor. We evaluated the key factors and assumptions used to develop the liability in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter,professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 28, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the County's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.