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HomeMy WebLinkAbout2020-COH - Local Governent Financial Test WorksheetCOUNTY OF HAWAII STATE OF HAWAII LOCAL GOVERNMENT FINANCIAL TEST WORKSHEET INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES Fiscal Year Ended June 30, 2020 N&KCPAs, Inc. ACCOUNTANTS, CONSULTANTS 999 BISHOP STREET, SUITE 2200, HONOLULU, HAWAII 96813 T (808) 524-2255 F (808) 523-2090 nkcpa.com N&K CPAs, Inc. ACCOUNTANTS, CONSULTANTS 999 BISHOP STREET, SUITE 2200 HONOLULU, HAWAII 96813 T (808) 524-2255 F (808) 523-2090 INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES To the Director of Finance County of Hawaii, State of Hawaii We have performed the procedures enumerated below on the accompanying Local Government Financial Test Worksheet (Worksheet) prepared in accordance with the Federal Register (40 CFR Part 258), Criteria For Municipal Solid Waste Landfills of the County of Hawai'i, State of Hawai'i (County) for the fiscal year ended June 30, 2020. The County's management is responsible for the Worksheet. The County has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose to verify that the computations on the Local Government Financial Test Worksheet were arithmetically correct. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and associated findings are as follows using the definitions in Attachment 2: 1. With respect to the computation of the excess of revenues over expenditures/expenses, we recomputed the amount for the fiscal year ended June 30, 2020 by deducting total expenditures/expenses, as adjusted, from total revenues. We compared the amounts, which comprise the total revenues and total expenditures/expenses, as adjusted, with the related amounts in the County's Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020 and we found such amounts to be in agreement with the amounts presented in the County's CAFR. 2. We verified that the computations on the Local Government Financial Test Worksheet were arithmetically correct. 2 N&K CPAs, Inc. ACCOUNTANTS, CONSULTANTS 3. We audited the County's CAM as of and for the fiscal year ended June 30, 2020 to determine whether the County's basic financial statements were prepared in accordance with accounting principles generally accepted in the United States of America and have issued our report thereon dated December 30, 2020. Our independent auditor's report states that, in our opinion, the County's basic financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County as of June 30, 2020, and the respective changes in the financial position and, where applicable, cash flows thereof and the budgetary comparison for the general fund for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. We have not performed any additional auditing procedures since the date of the aforementioned auditor's report. We were engaged by the County to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not perform an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Local Government Financial Test Worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of management of the County and the U.S. Environmental Protection Agency, and is not intended to be and should not be used by anyone other than those specified parties. N&K CPAs, Inc. Honolulu, Hawaii October 20, 2021 3 County of Hawaii State of Hawaii LOCAL GOVERNMENT FINANCIAL TEST WORKSHEET Fiscal Year Ended June 30, 2020 Attachment 1 (in thousands) Computation of excess of revenues over expenditures/expenses Revenues: Gross revenues Governmental funds: $ 578,282 Proprietary funds: $751 Component unit: $49,053 Non-operating revenues - interest and other Proprietary funds: $5 Component unit: $4,678 Total revenues: $632,769 Expenditures/expenses Governmental funds: $585,853 Proprietary funds: $645 Component unit: $60,325 Less: Debt service (governmental funds): $(47,811) Debt service (proprietary funds): $(25) Debt service (component unit): $(1,559) Capital outlays (governmental funds): $(79,536) Total expenditures/expenses, as adjusted: $517,892 Excess of revenues over expenditures/expenses: $114,877 4 County of Hawaii State of Hawaii LOCAL GOVERNMENT FINANCIAL TEST WORKSHEET - DEFINITIONS Fiscal Year Ended June 30, 2020 Attachment 2 The following terms used in the accompanying Local Government Financial Test Worksheet are defined in the Federal Register (40 CFR Part 258.74), Criteria For Municipal Solid Waste Landfills - Financial Assurance Criteria - Allowable Mechanisms, as follows: A) Total revenues include revenues from all taxes and fees, but does not include the proceeds from borrowings or asset sales, excluding revenue from funds managed by the local government on behalf of a specific third party. B) Total expenditures/expenses include all expenditures, excluding capital outlays and debt repayment. C) Debt service is the amount of principal and interest due on loans in a given time period, typically the current year. 5