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HomeMy WebLinkAboutCOM 0580.001 1998-2000 P. O. Box 4150 Telephone 808 531 7286 Honolulu, HI 96812-4150 Fax 808 541 9321 Januazy 21, 2000 Chair and Members of the County Council _t..~~'f y~,Fjy~ State tof Hawawaii - C'<rinty Couniil r° Ladies and Gentlemen: We have audited the general-purpose financial statements of the County of Hawaii, State of Hawaii ("County"), for the yeaz ended June 30, 1999, and have issued our report thereon dated October 15, 1999. Under generally accepted auditing standazds, we are providing you with the following information related to the conduct of our audit. Our Responsibility Under Generally Accepted Auditing Standards We have a responsibility to conduct our audit in accordance with generally accepted auditing standazds. In carrying out this responsibility, we planned and performed the audit to obtain reasonable assurance about whether the general-purpose financial statements are free of material misstatement, whether caused by error or fraud. Because of the nature of audit evidence and the chazacteristics of fraud, we are to obtain reasonable, not absolute, assurance that material misstatements aze detected. We have no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by error or fraud, that are not material to the general-purpose financial statements are detected. In addition, in planning and performing our audit, we considered internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements. An audit does not include examining the effectiveness of internal control and does not provide assurance on internal control. Significant Accounting Policies The significant accounting policies used by the County aze described in Note 1 to the general- purpose financial statements. There were no changes in the significant accounting policies used by the County for the yeaz ended June 30, 1999. Comm. No. "~~O• ale No. Ref. To: Q KPnMG LLP KPMG LLP, e LLS limitetl LaOilpy panners~ip, is Ref. Date JAN 2 1 2000 a ¢mbe. of KPMG In~eme4onel, a Swiss essOEie.iOn County of Hawaii, Hawaii January 21, 2000 Page 2 Management Judgments and Accounting Estimates Accounting estimates are an integral part of the general-purpose financial statements prepazed by management and aze based on management's current judgments. Those judgments aze normally based on knowledge and experience about past and cun•ent events and assumptions about future events. Certain accounting estimates aze particulazly sensitive because of their significance to the general-purpose financial statements and because of the possibility that future events affecting them may differ mazkedly from management's current judgments. Liability related to landfill closure and postclosure Gaze costs, reserve for judgments, and workers' compensation and general liability insurance reserves are based on estimates. We evaluated the key factors and assumptions used to develop these liability reserves and have concluded that they aze reasonable in relation to the general-purpose financial statements taken as a whole. Significant Audit Adjustments There were no proposed adjustments which, in our judgment, either individually or in the aggregate, have a significant effect on the County's general-purpose financial statements. Other Information in Documents Containing Audited General-Purpose Financial Statements Our responsibility for other information in documents containing the County's general-purpose financial statements and our report thereon does not extend beyond the financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included in the County's Comprehensive Annual Financial Report, and no matters came to our attention that cause us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the general-purpose financial statements. Disagreements with Management There were no disagreements with management on financial accounting and reporting matters that, if not satisfactorily resolved, would have caused a modification of our report on the County's June 30, 1999 general-purpose financial statements. .•'7~11a County of Hawaii, Hawaii January 21, 2000 Page 3 Consultation With Other Accountants To the best of our knowledge, management has not consulted with or obtained opinions, written or oral, from other independent accountants during the past year that were subject to the requirements of Statement on Auditing Standazds No. 50, Reports on the Application of Accounting Principles. Major Issues Discussed With Management Prior to Retention We generally discuss a vaziety of matters, including the application of accounting principles and auditing standazds, with management prior to retention as the County's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no serious difficulties in dealing with management in performing our audit. This information is intended solely for the information and use of the County Council and is not intended to be and should not be used by anyone other than this specified party. Very truly yours, K`PW(G LCP