HomeMy WebLinkAboutCOM 0009.001 2010-2012Colleen Schrandt
Legislative Auditor
Alading Address:
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
Date:
To:
From:
RE:
Jounf r of itt ai`i
OFFICE OF THE LEGISLATIVE AUDITOR
Telephone: (808) 961 -8386 Facsimile: (808) 961 -8905
January 12, 2012
Dominic Yagong, Chairperson
And Members of the County Council
Colleen Schrandt, Legislative Auditor0(9)
Business Address:
1266 Kamehameha Avenue
Ironworks Building. Room :1 -I
Hilo, Ilawai'z 96720
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Additional Program Fees per Contract Terms for Single Audit for Fiscal Year
Ended June 30, 2011
In an effort to provide transparency, we enclose for your information and review a letter from
external auditor Accuity LLP requesting an increase of $21,000 to Contract No. 002904 (to
conduct audits of the accounts and financial transactions of the County of Ilawai'i), pertaining to
the single audit of the County's federal financial assistance programs for fiscal year ended
June 30, 2011.
In order to receive federal funds, the County is required to undergo a single audit. Office of the
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 the application of OMB requirements and thresholds and the amount of
federal funds received and expended during that year. For fiscal year 2010-2011, this resulted in
five major federal assistance programs being audited to meet the OMB single audit requirements.
The original contract fee proposal from Accuity LLP was based upon three programs for the
fiscal year ended June 30, 2011, with any additional programs to be billed at $10.500 per
program. Therefore, per the contract terms, Accuity LLP is requesting an additional $21.000
relating to the two additional programs.
As sufficient funds were budgeted to cover the additional contract cost, we will be requesting
that the Department of Finance certify the $21,000 from the Legislative Auditor's External Audit
Miscellaneous Contract Services, Account No. 010.108.5 08.15.1 15.
Should you have any questions, please don't hesitate to contact me.
Att.
cc w/o attachments: Cindy Yee, Accuity LLP
Department of Finance
CS /lhs
Serving the Interests of the People of Our island
Hawaii County is an Equal Opportunity Provider and Employer
Comm. No.
Ref. To: MI
Ref. Date
ACcu ItyLLP
CERTIFIED PUBLIC ACCOUNTANTS
November 14, 2011
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, 2011. 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
five major programs are required to be audited for the fiscal year ended June 30, 2011.
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 $10,500 per program
and therefore, we are requesting additional professional fees of $21,000 for the two additional programs.
The five federal financial assistance programs that are required to be audited are:
Program Name and CFDA Number
Includes ARRA Expenditures?
Section 8 Housing Choice Vouchers (CFDA
14.871)
No
Highway Planning and Construction Cluster (CFDA
20.205)
Yes
Capitalization Grants for Clean Water State
Revolving Funds (CFDA 66.458)
Yes
Yes
Capitalization Grants for Drinking Water State
Revolving Funds (CFDA 66.468)
Assistance to Firefighters Station Construction
Grant
Yes
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,
-4.CC�
999 BISHOP STREET, SUITE 1900
HONOLULU, HAWAII 96813
TELEPHONE: 808 531 3400 FACSIMILE: 808 531 3433
ACCEPTED:
County of Hawaii
By:
Date:
DOMINIC YAGONG
Chairperson
K. ANGEL PILAGO
Vice Chair
January 12, 2012
HAWAI`I COUNTY COUNCIL
County of Hawai`i
Hawaii County Building
25 Aupuni Street
Hilo, Hawai`i 96720
Dominic Yagong, Chairperson
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
FRED BLAS
BRENDA FORD
PETE HOFFMANN
DONALD IKEDA
DENNIS "FRESH" ONISHI
BRITTANY SMART
J YOSHIMOTO
RE: Communication 9.1 : Additional Program Fees Per Contract Terms for Single Audit
for Fiscal Year Ended June 30, 2011
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawai`i, 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.
Sincerely,
y('/ Brenda J. Ford, Chairperson, Finance Committee
Approv (Date /Waive to Council:
jr k Uvvk"4„c.
(o("" Dominic Yagong, Chairper
Disapproved/Date /Refer to FC:
Dominic Yagong, Chairperson
Hawai`i County Council Hawai`i County Council
BJF /dkr
Serving the Interests of the People of Our Island
Hawai`i County is an Equal Opportunity Provider and Employer