Comprehensive Annual Financial Report 2017

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N&K CPAs, Inc. ACCOUNTANTS I CONSULTANT We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opininn, the financial statements referred to above present haidv, in all material reapects, the resfinancial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County ofHovvai'i. State of Havvai'i, as of June 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the general fund for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Adoption of New Accounting Principles As discussed in Note 1 (page 61) to the financial statements, the County 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 as well as extending the approach to accounting and financial reporting for pensions that were not within the scope of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. 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 (pages 16 through 26), schedule of funding progress for the Hawaii Employer Union Health Benefit Trust Fund (page 103), schedule of the County's proportionate share of the net pension liability (page 104), schedule of the employer pension contributions (page 105), and schedule of changes in total pension liability (page 107), be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inqu|,ieo, the basic financial etotornmnto, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. -l4-