HomeMy WebLinkAboutCOM 0396.000 2024-2026County Auditor
County of Hawai'i
Office of the County Auditor
Ph 808.961.8386
County of Hawai'i
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
F 808.961.8905
www.hawaiicounty.pov
June 23, 2025 ry
w
Honorable Holeka Goro Inaba, Council Chair -
and Members of the Hawai'i County Council
Hawai'i County Council
25 Aupuni Street
co
Hilo, Hawai'i 96720
Dear Chair Inaba and Council Members,
In accordance with Hawai'i County Charter Section 3-18(d)(2), the Office of the County Auditor's
Fiscal Year 2025-26 Annual Audit Plan is attached. This provision requires our office to transmit
an annual audit plan to the Hawai'i County Council and the Mayor.
The plan includes the following:
• Annual Comprehensive Financial Report for Fiscal Year Ending 2025
• Single Audit of Federal Financial Assistance Programs for Fiscal Year Ending 2025
• Audit of the Financial Statements of the Department of Water Supply for Fiscal Year
Ending 2025
• One peer review
• One follow-up audit
• Three carry-over audits
• Four surprise cash counts
• Unplanned engagements, and special projects (Grant -in -Aid, Whistleblower
Investigations)
• Consider Council -initiated audits/projects
We want to take this opportunity to share our appreciation with the entire organization as we look
forward to pursuing the upcoming audit engagements and projects for the County of Hawai'i.
Respectfully,
J 150 W
County Auditor
County of Hawai'i
Comm. No.GgV
Ref. To:'000M
Hawaii is an Equal Oppornunity Pivvider and Emplover Ref. Date N 2
County of Hawaii
Annual Audit Plan
Fiscal Year 2025-26
County of Hawaii
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
County of Hawaii
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
Date:
June 23, 2025
To:
Honorable Holeka Goro Inaba, Council Chair
and Members of the Hawaii Coun Council
From:
Tyler J. Benner, County Auditor
Subject:
Annual Audit Plan Fiscal Year 25-26
Executive Summary
Under Hawaii County Charter Section 3-18(d)(2), the Office of the County Auditor
respectfully submits its Fiscal Year 2025-26 Annual Audit Plan. The provision requires
our office to provide an annual audit plan to the Hawaii County Council and the Mayor.
An audit plan identifies specific agencies, departments, divisions, funds, programs, and
activities that may be considered for examination to achieve one or more of the audit
objectives.
After considerable discussion and analysis, we designed the work plan to focus on
priorities including data security, public safety, organization alignment, transparency, and
program efficacy.
Respectfully,
4 J %Ain
County Auditor
County of Hawaii
Cc. Honorable C. Kimo Alameda, PhD., Mayor
William V. Brilhante Jr., Managing Director
Jon Henricks, County Clerk
1
Vision Statement
Our vision is to enhance County government by leveraging new and emerging
technology, evolving the control environment at the speed of business, to provide
reasonable assurance that public resources and services are receiving the adequate
stewardship they deserve.
Mission Statement
It is our mission to independently serve the County Council and the citizens of Hawaii
County by promoting accountability, fiscal integrity, and transparency in local government.
We conduct performance and financial audits of County agencies and programs in
accordance with Government Auditing Standards.
The Office of the County Auditor examines the use of public funds, evaluates operations
and activities, and provides analyses, options, and recommendations to decision -makers
in an objective manner. Our work supports County government in managing public
resources, delivering public services, and upholding public trust.
Audit Objectives
We achieve our mission by pursuing the following audit objectives:
• Determine the effectiveness and efficiency of organizations accomplishing their
mission and identify cost savings and revenue enhancement opportunities.
• Evaluate adequacy and compliance of internal controls, policies and procedures,
systems, and processes.
• Evaluate proper accounting and safeguarding of County -owned assets.
• Cause to conduct reviews of the accuracy of financial and operating transactions.
• Confi-rm compliance with local, state, and federal laws and regulations.
• Proactively identify and investigate reported fraud, theft, waste, abuse, etc. and
recommend controls to prevent and detect such occurrences.
• Determine the effectiveness and efficiency of County programs and resources being
utilized.
• Follow-up, review, and evaluate previously conducted audits to ensure management
actions achieve satisfactory solutions to all significant issues.
2
Fiscal Year 2025-26 Planned Audits
(Order yet to be determined)
Mandated by Charter
➢ Annual Comprehensive Financial Audit of the County of Hawaii
➢ Single Audit of Federal Financial Assistance Programs
➢ Audit of the Financial Statements of the Department of Water Supply
In accordance with Hawaii County Charter Section 10-13, our office will monitor the
contract with the external auditor, Accuity LLP, (RFP #4375a), to complete the following:
➢ Conduct audits of the accounts and other evidence of financial transactions of
the County of Hawaii for the Fiscal Year Ending June 30, 2025
➢ Single Audit* of Federal Financial Assistance Programs for Fiscal Year Ended
June 30, 2025
➢ Report for Landfill Financial Assurance; and
➢ Financial Assessment Electronic Submission of Section 8 — Housing
Choice vouchers
➢ Financial. Audit of the Department of Water Supply for the Fiscal Year Ended
June 30, 2025
*Additional programs may be added as determined by the Schedule of Expenditures of Federal Awards
(SEFA).
9
Audits In Process
The office will complete and publish carryover items from the previous year.
➢ Department of Information Technology, Cybersecurity Audit (Phase 1)
➢ Fieldwork and testing
➢ Unpublished
➢ Hawaii County Fire Department, Follow up Performance Audit.
➢ Planned entrance conference (July 2, 2025)
➢ Unpublished
➢ Department of Research and Development
➢ Suspended until other projects are completed
➢ Unpublished
Additions to the Audit Work Plan
We continuously evaluate risk. Risk can be inherent and dynamic and can evolve rapidly.
Our audit plan may be modified at any time. Modifications should not be considered a
plan failure but should instead reflect the changing environment and the need to adapt to
new and unanticipated threats.
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Council -Initiated Audit
The office will consider Council -related audits and projects brought forward by
resolution.
Performance audits approved by Council Resolution and agreed to by the County
Auditor.
Special Projects (Non -Audit)
Grant -In -Aid (Wai-Wai)
Remediation tracker
Surprise cash counts
r Peer Review
Tips requiring further research from Fraud and Whistleblower Hotlines
Since inception in 2022, our fraud, waste, and abuse hotlines have received
approximately 99 calls, both substantiated and unsubstantiated*.
The improper use of government resources or positions are commonly uncovered by
employees and the public. We strongly encourage reporting of any concerns through our
fraud waste and abuse hotlines:
Fraud and Waste: 808.480.8213 Abuse: 808.480.8279
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Remediation Tracker
To increase government transparency and accountability, we have developed a
remediation tracker. We continuously track the status of recommendations until
implemented or otherwise resolved.
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7
Next Steps
Carryover and new audit engagements will commence as scheduling permits. Completed
audits will be shared with those charged with governance, and responsible parties will
have the opportunity to provide comments. Completed reports will be transmitted to the
County Council and the Mayor and filed with the County Clerk as a public record.
We want to take this opportunity to thank the County Council and the Administration for
their support. We look forward to conducting our work this coming year.
Respectfully,
County Auditor
County of Hawaii