HomeMy WebLinkAboutCOM 0096.000 2012-2014 J Yoshimoto Lane Shibata
voF Hq Acting Legislative Auditor
Chair&Presiding Officer �o°• ws,''•, g g
Council District 2
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-...................... 1266 Kamehameha Avenue
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r4tF OF SF' H(lo, Hawaii 96720
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OFFICE OF THE LEGISLATIVE AUDITOR
25 Aupuni Street * Hilo, Hawai'i 96720 * (808)961-8386 * Fax(808)961-8905
website: http://hawaiicountv.eov e-mail:publiclao(a�co.hawaii.hi.us
•
DATE: January 22, 2013
TO: The Honorable J Yoshimoto, Chairperson
and Members of the Hawai'i County Council
FROM: Lane Shibata, Acting Legislative Auditor4
RE: Single Audit Increase for Two Additional Programs
In an effort to provide transparency, we enclose for your information and review a letter from
external auditor Accuity LLP requesting an increase of$22,000 to Original 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, 2012.
In order to receive federal funds, the County is required to undergo a single audit. The 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 application of the requirements and thresholds and the amount of federal
funds received and expended during that year. For the Fiscal Year 2011-2012, this resulted in
five 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, 2012, with any additional programs to be billed at $11,000 per program.
Therefore, per the contract terms, Accuity LLP is requesting an additional $22,000 relating to
the two additional programs.
We will be requesting that the Department of Finance draft Supplemental Agreement No. 5 and
certify the $22,000 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 don't hesitate to contact me at 961-8494.
Att.
Comm. No, 1(p
Ref.To: FL
Ref. Dote JAN 2 2 2013
Hawaii County is an Equal Opportunity Provider and Employer
•
CUItLLP
CERTIFIED PUBLIC ACCOUNTANTS
December 19, 2012
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, 2012. 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, 2012.
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$11,000 per program
and therefore, we are requesting additional professional fees of$22,000 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?
Highway Planning and Construction Cluster(CFDA
20.205 Yes
Capitalization Grants for Clean Water State
Revolvin• Funds CFDA 66.458 Yes
Capitalization Grants for Drinking Water State
Revolving Funds1CFDA 66.468) _ Yes
Assistance to Firefighters Station Construction Yes
Grant CFDA 97.115)
Program of Competitive Grants for Worker Training
and Placement in High Growth and Emerging
Industry Sectors (CFDA 17.275) Yes
_
999 BISHOP STREET,SurrE 1900
HONOLULU,HAWAII 96813
TELEPHONE: 808 531 3400 FACSIMILE:808 531 3433
Ms.Colleen Schrandt Page 2 of 2 December 19,2012
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,
LP
CY/DN:bn
ACCEPTED:
County of Hawaii
By:
Date: