COM 0278.001 2018-2020 - Laserfiche WebLink

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N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS The net OPEB liability, deferred inflows of resources, and deferred outflows of resources of the post- retirement benefits other than pensions administered by the Hawaii Employer- Union Health Benefits Trust Fund (EUTF)was determined by an actuarial valuation. The County's proportionate share of the net OPEB liability, deferred inflows of resources, and deferred inflows of resources was based on the County's contributions to,the EUTF. We evaluated the key factors and assumptions used to compute the County's net OPEB liability 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, and deferred outflows 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 net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the loss reserves for claims and judgements is based on an assessment by the County's legal counsel and an analysis of workers' compensation liability insurance claims. 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 clearly 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, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.