2014-COH - Single Audit of Federal Financial Assistance Programs

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a N&K CPAs, Inc. ACCOUNTANTS I CONSULTANTS March 20, 2015 To the Chair and Members of the County Council County of Hawaii AMERICAN SAVINGS BANK TOWER 1001 BISHOP STREET, SUITE 1700 HONOLULU, HAWAII 96813-3696 T (808) 524-2255 F (808) 523-2090 We have completed our financial audit of the basic financial statements of the County of Hawaii, State of Hawaii (the County), as of and for the fiscal year ended June 30, 2014. Our report containing our opinions on those basic financial statements is included in the County's Comprehensive Annual Financial Report. We have also audited the County's compliance with requirements applicable to its major federal financial assistance programs. We submit herein our reports on the County's internal control over financial reporting and compliance, the County's compliance with requirements that could have a direct and material effect on each of its major federal programs, the County's schedule of expenditures of federal awards, and the schedule of findings and questioned costs. OBJECTIVES OF THE AUDIT The primary purpose of our audit was to form an opinion on the fairness of the presentation of the County's basic financial statements as of and for the fiscal year ended June 30, 2014, and to comply with the requirements of the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, which establishes audit requirements for state and local governments that receive federal financial assistance. More specifically, the objectives of the audit were as follows: 1. To provide opinions on the fair presentation of the County's basic financial statements and the schedule of expenditures of federal awards as of and for the fiscal year ended June 30, 2014 in accordance with accounting principles generally accepted in the United states of America. 2. To determine whether expenditures and other disbursements have been made and all revenues and other receipts to which the County is entitled have been collected and accounted for in accordance with the laws, rules and regulations, administrative directives, policies and procedures of the County, the State of Hawaii and the federal government (where applicable). 3. To determine whether the County has established sufficient internal controls to properly manage federal financial assistance programs and to comply with the applicable laws, regulations, contracts, and grants. 4. To determine whether the County has complied with the laws, regulations, contracts, and grants that may have a direct and material effect on the financial statements and on each major federal financial assistance program. 2