CAFR 2012 Final with Opinion (2)

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rental management agent, deposits were either insured by federal depository insurance, collateralized, or secured by irrevocable letters of credit. All collateral on deposit was held for safe keeping with a County-designated agent in the County's name. Financial Highlights As a result of another year of declining property values which negatively impacted real property tax revenues, the County was again faced with the dilemma of balancing its budget. To avoid negatively impacting the local economy, the County worked diligently to lower its operating costs while continuing to service the community and it people rather than raise real property taxes. The County continued the furloughs and pay reductions for both its HGEA and UPW union employees but reduced the number of days from twice a month to only once a month. The County also implemented a one-time payroll lag which delayed the payment of the June 30, 2012 payroll to the following fiscal year and enabled the County to save on salaries and wage expenditures for the current year. As part of the strategy for balancing the budget, the County also decided to temporarily forgo the employer contributions relating to the pre-funding of its postemployment benefits other than pensions that it had fully fiuided for the previous four fiscal years. Other Information Independent Audit The County Charter requires an annual audit by independent certified public accountants. Accuity LLP was selected in accordance with the County Charter and the procurement provisions of the Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules (HAR) to perform the audit. Employee Union Contracts Six bargaining units have contracts that will expire on June 30, 2013 and negotiations are underway. The remaining two bargaining units' contracts have already expired. One remaining bargaining unit had an interest arbitration in November 2012 and the County anticipates a decision by January 30, 2013. The other remaining bargaining unit is planning for an interest arbitration in March 2013 and the County anticipates a decision by June 17, 2013. Certificate of Achievement The Government Finance Officers Association of the United States and Canada(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of Hawai`i for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011. This was the twenty-fourth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized - 6 -