HomeMy WebLinkAboutCOM 0612.000 2012-2014 J Yoshimoto Lane Shibata
01∎11.7 h+h Acting Legislative Auditor
Chair&Presiding Officer �o.•, ,-: 9,� g S
Council District 2 : - - LG�%
*:4\, =�1f:* Business Address
1266 Kamehameha Avenue
Mow•P■ Suite A-8
44 OF•NP' Hilo,Hawaii 96720
OFFICE OF THE LEGISLATIVE AUDITOR
25 Aupuni Street * Hilo, Hawaii 96720 * (808)961-8386 * Fax(808)961-8905
website: http:,'"hawaiicountv.gov e-mail:publiclao(a�co.hawaii.hi.us
MEMORANDUM ° 7
DATE: January 9, 2014
TO: J Yoshimoto, Council Chair
and Members of the Hawai`i County Council r -
FROM Lane H. Shibata, Acting Legislative Auditor -,
SUBJECT: Request for Fee Increase for Two (2) Additional Programs for Fiscal Year Ended y-
June 30, 2013 by external auditor Accuity LLP
Enclosed for your information and review is a letter from external auditor Accuity LLP dated
January 7, 2014 requesting an additional audit fee in the amount of$23,000 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
ended June 30, 2013, for two (2) additional programs due to a significant change in scope in the
number of federally funded programs that are required to be audited.
In order to receive federal funds, the County of Hawai`i 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 2012-2013,
this resulted in five (5) major federal assistance programs being audited to meet the single audit
requirement. The original contract fee proposal from Accuity LLP is based upon three (3)
programs for the fiscal year ended June 30, 2013, with each additional program(s)to be billed at
$11,500 per program. Therefore, per the contract terms, external auditor Accuity LLP is
requesting an additional $23,000 for two additional programs.
Upon Council approval, we will request that the Department of Finance certify the $23,000 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. Thank you.
Att. Comm. No. 612'
Ref.To: re—
Ref. Dote JAN 1 0 2014
Hawai`i County is an Equal Opportunity Provider and Employer
ACcu I LLP
CERTIFIED PUBLIC ACCOUNTANTS
January 7, 2014
Mr. Lane Shibata
Acting Legislative Auditor
County of Hawaii
1266 Kamehameha Avenue, Suite A-8
Hilo, HI 96720
Dear Mr. Shibata:
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, 2013. 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, 2013.
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 $11,500 per program
and therefore, we are requesting additional professional fees of$23,000 for the two additional programs.
The five federal financial assistance programs that are required to be audited are:
Program Name and CFDA Number 1 Includes ARRA Expenditures?
Community Development Block Grants/Entitlement I No
Grants(CFDA 14.228)
WIA Cluster(CFDAs 17.258, 17.259, and 17.278) No
Highway Planning and Construction Cluster(CFDA
20.205) Yes
Capitalization Grants for Clean Water State
Revolving Funds (CFDA 66.458) No
Capitalization Grants for Drinking Water State
Revolving Funds(CFDA 66.468) 1 Yes
�deoendent member of 999 BISHOP STREET,SUITE 1900
BAKER TILLY HONOLULU,HAWAII 96813
INTERNATIONAL TELEPHONE:808 531 3400 FACSIMILE:808 531 3433
Mr. Lane Shibata Page 2 January 7, 2014
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,
'AC c.LF>
CY/DN
ACCEPTED:
County of Hawaii
By:
Date: