2017-COH - DWS Financial Statements and Supplementary Information With Independent Auditor's Report

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N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Department as of June 30, 2017, and the changes in its financial position and its cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note B, the financial statements of the Department are intended to present the financial position, the changes in financial position, and cash flows of only that portion of the business -type activities of the County of Hawai'i that is attributable to the transactions of the Department. They do not purport to, and do not, present fairly the financial position of the County of Hawai'i as of June 30, 2017, the changes in its financial position, or its cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Adjustment to Prior Period Financial Statements As discussed in Note J to the basic financial statements, certain errors resulting in overstatement of amounts previously reported for customers' deposits as of June 30, 2016, were discovered by management of the Department during the current fiscal year. Accordingly, an adjustment has been made to the 2016 financial statements to correct the error. Our opinion has not been modified with respect to this matter. Adoption of New Accounting Principle As discussed in Note I to the basic financial statements, the Department adopted new accounting guidance that clarifies standards for accounting and financial reporting for pensions that are provided to the employees of state and local governmental employers. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 7 through 10, schedule of funding progress - EUTF on page 39, schedule of the Department's proportionate share of the