HomeMy WebLinkAboutCOM 0009.000 2010-2012 40J NSY • OF Nye i
Colleen M. Schrandt
Legislative Auditor
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Mailing Address: Business Address:
Hawai `i County Building ( � 1266 Kamehameha Avenue
25 Aupuni Street �0 �] lt1t Y Ironworks Building, Room A -1
Hilo, Hawaii 96720 �" Hilo, Hawaii 96720
OFFICE OF THE LEGISLATIVE AUDITOR
Telephone: (808) 961 -8386 Facsimile: (808) 961 -8905
Date: December 6, 2010
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To: Dominic Yagong, Chairman `
And Members of the County Council
From: Colleen Schrandt /0 0
Legislative Auditor
Enclosed for your information and review is a letter from external auditor Accuity LLP
requesting an increase of $50,000 to Contract No. 002904 (to conduct audits of the accounts and
financial transactions of the County of Hawai`i), pertaining to the single audit of the County's
federal financial assistance programs for fiscal year end June 30, 2010.
In order to receive federal funds, the County is required to undergo a single audit. The Office of
Management and Budget (OMB) Circular A -133 establishes specific requirements and
thresholds for the single audit and the number of programs required to be included in the single
audit. Therefore, the number of programs required to be included in the single audit changes
each year based upon application of the requirements and thresholds and the amount of federal
funds received during that year. For the Fiscal Year 2009 -2010, this resulted in eight major
federal assistance programs being audited to meet the single audit requirement. The original
contract fee proposal from Accuity LLP is based upon three programs for the fiscal year ended
June 30, 2010, with any additional programs to be billed at $10,000 per program. This request is
for five additional programs for a total of $50,000.
Upon approval, we will request that the Department of Finance certify the $50,000 from the
Legislative Auditor's External Audit Miscellaneous Contract Services, Account No.
010.108.5108.15.115, as sufficient funds were budgeted to cover the additional contract cost.
Should you have any questions, please contact Colleen Schrandt, Legislative Auditor.
Att.
Ref. To:
Re f. Date DEU 0 Z 20t1t
Serving the Interests of the People of Our Island
Hawaii County is an Equal Opportunity Provider and Employer
DOMINIC YAGONG gy p• �'•!',, FRED BLAS
Chairperson BRENDA FORD
DONALD IKEDA
PETE HOFFMANN DENNIS "FRESH" ONISHI
Vice Chair +f•:• ..... K. ANGEL PILAGO
�
BRITTANY SMART
J YOSHIMOTO
HAWAII COUNTY COUNCIL
County of Hawai'i
Hawai'i County Building
25 Aupuni Street
Hilo, Hawai'i 96720
December 7, 2010
Dominic Yagong, Chairperson
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
RE: Communication No. 9 Transmittal from the Office of the Legislative
Auditor submitting external auditor Accuity LLP request for a fee increase.
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawaii, this written request is submitted with my approval that the above - referenced matter be
waived from the Committee on Finance to the full Council for immediate action. In reviewing
this matter, timely approval is crucial. It is therefore advantageous that approval is granted and
the matter be placed onto the next Council agenda for review. However, in the event this request
is denied, for whatever reason, I understand the matter shall be referred to the Committee on
Finance for placement on its future agenda.
Sincere l ,
• fii°
Brenda J. Ford, Chair
v Committee on Finance
Approv /Date /Naive Council: Disapproved /Date /Refer to FC:
� Dominic Yagong, Chairperson Dominic Yagong, Chairperson
Hawai`i Count Council
County Hawai'i County Council
BJF /dkr
Serving the Interests of the People of Our Island
1 AN! C U I tyLLP
CERTIFIED PUBLIC ACCOUNTANTS
November 9, 2010
Ms. Colleen Schrandt
Legislative Auditor
County of Hawaii
1266 Kamehameha Avenue, Suite A -1
Hilo, HI 96720
Dear Ms. Schrandt:
Due to the uncertainty of the number of federally funded programs that would be required to be audited
as major programs under OMB Circular A -133, Audits of States, Local Governments, and Non - Profit
Organizations, the Request for Proposal No. 2614 requested that the cost proposal for the single audit of
the County of Hawaii's federal financial assistance programs be based on the assumption of a minimum
of three major programs. Our cost proposal was based on auditing three major programs for the fiscal
year ended June 30, 2010. However, upon receiving the County of Hawaii's schedule of expenditures of
federal awards and performing the necessary risk assessment of the programs, we have determined that
eight major programs are required to be audited for the fiscal year ended June 30, 2010.
We are kindly submitting our request for additional audit fees due to a significant change in the scope in
the number of federally funded programs that are required to be audited. As stated in our proposal, we
estimated that the cost of auditing each major program in excess of three would be $10,000 per program
and therefore, we are requesting additional professional fees of $50,000 for the five additional programs.
The eight federal financial assistance programs that are required to be audited are:
Program Name and CFDA Number Includes ARRA Expenditures?
Community Development Block Grants /State's
Program and Non - Entitlement Grants (CFDAs
14.228 and 14.255) Yes
Section 8 Housing Choice Vouchers (CFDA
14.871 ) No
Workforce Investment Act Cluster (CFDAs 17.258,
17.259, and 17.260 ) Yes
Highway Planning and Construction Cluster (CFDA
20.205 ) Yes
Federal Transit — Capital Investment Grants (CFDA
20.500 ) No
Formula Grants for Other Than Urbanized Areas
CFDA 20.509 Yes
Capitalization Grants for Clean Water State
Revolving Funds CFDA 66.458 Yes
Capitalization Grants for Drinking Water State
Revolving Funds CFDA 66.468 Yes
999 BISHOP STREET, Surn 1900
HONOLULU, HAWAII 96813
TELEPHONE: 808 5313400 FACSIMILE: 808 5313433
Ms. Colleen Schrandt Page 2 November 9, 2010
Thank you for your consideration. If you have any questions regarding this request, please contact Cindy
Yee or Donn Nakamura at (808) 531 -3400.
Very truly yours,
.ate LIP
CY /DN
ACCEPTED:
County o awaii
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