HomeMy WebLinkAboutAnnual Audit Plan FY 2024-2025Hawaiʻi is an Equal Opportunity Provider and Employer
June 28, 2024
Honorable Heather Kimball, Council Chair
and Members of the Hawaiʻi County Council Hawaiʻi County Council 25 Aupuni Street Hilo, Hawaiʻi 96720
Dear Chair Kimball and Council Members,
In accordance with Hawaiʻi County Charter Section 3-18(d)(2), the Office of the County
Auditor’s Fiscal Year 2024-25 Annual Audit Plan is attached. This provision requires our
office to transmit an annual audit plan to the Hawaiʻi County Council and the Mayor.
Our plan includes the following:
• Annual Comprehensive Financial Report for Fiscal Year Ending 2024
• Single Audit of Federal Financial Assistance Programs for Fiscal Year Ending
2024
• Audit of the Financial Statements of the Department of Water Supply for Fiscal Year Ending 2024
• One self-initiated audit
• One follow-up audit
• Four surprise cash counts
• Carryover items, unplanned engagements, and special projects
• Consider Council-initiated audits/projects
We want to take this opportunity to share our appreciation with the entire organization as
we look forward to pursuing the upcoming audit engagements and projects for the County
of Hawaiʻi.
Respectfully,
County Auditor County of Hawaiʻi
County of Hawaiʻi Office of the County Auditor 120 Pauahi St., 309 Hilo, HI 96720 F 808.961.8905 www.hawaiicounty.gov
Tyler J. Benner
County Auditor County of Hawaiʻi Office of the County Auditor Ph 808.961.8386
Tyler J. Benner
County of Hawaiʻi
Annual Audit Plan
Fiscal Year 2024-25
County of Hawaiʻi
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
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Date: June 28, 2024 To: Honorable Heather Kimball, Council Chair
and Members of the Hawaiʻi County Council
From: Tyler J. Benner, County Auditor Subject: Annual Audit Plan Fiscal Year 2024-25
Executive Summary
Under Hawaiʻi County Charter Section 3-18(d)(2), the Office of the County Auditor
respectfully submits its Fiscal Year 2024-25 Annual Audit Plan. The provision requires
our office to provide an annual audit plan to the Hawaiʻi County Council and the Mayor.
An audit plan identifies specific agencies, departments, divisions, funds, programs, and
activities that may be considered for examination to achieve one or more of the audit
objectives.
After considerable discussion and analysis, we designed the work plan to focus on
priorities including data security, public safety, organization alignment, transparency, and
program efficacy.
Respectfully,
Cc. Honorable Mitchell D. Roth, Mayor
Deanna Sako, Managing Director
Jon Henricks, County Clerk
County of Hawaiʻi Office of the County Auditor 120 Pauahi St., 309 Hilo, HI 96720
Tyler J. Benner
County Auditor
County of Hawaiʻi
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Vision Statement
Our vision is to enhance County government by leveraging new and emerging
technology, evolving the control environment at the speed of business, to provide
reasonable assurance that public resources and services are receiving the adequate
stewardship they deserve.
Mission Statement
It is our mission to serve the Council and citizens of Hawaiʻi County by promoting
accountability, fiscal integrity, and openness in local government. Through performance
and/or financial audits of County agencies and programs, the Office of the County Auditor
examines the use of public funds, evaluates operations and activities, and provides
findings and recommendations to elected officials and citizens in an objective manner.
Our work is intended to assist the County government in its management of public
resources, delivery of public services, and stewardship of public trust.
Audit Objectives
We achieve our mission by pursuing the following audit objectives:
• Determine the effectiveness and efficiency of organizations accomplishing their mission and identify cost savings and revenue enhancement opportunities.
• Evaluate adequacy and compliance of internal controls, policies and procedures, systems, and processes.
• Evaluate proper accounting and safeguarding of County-owned assets.
• Cause to conduct reviews of the accuracy of financial and operating transactions.
• Confirm compliance with local, state, and federal laws and regulations.
• Proactively identify and investigate reported fraud, theft, waste, abuse, etc. and
recommend controls to prevent and detect such occurrences.
• Determine the effectiveness and efficiency of County programs and resources being utilized.
• Follow-up, review, and evaluate previously conducted audits to ensure management actions achieve satisfactory solutions to all significant issues.
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Fiscal Year 2024-25 Planned Audits
(Order yet to be determined)
Mandated by Charter
Annual Comprehensive Financial Audit of the County of Hawaiʻi
Single Audit of Federal Financial Assistance Programs
Audit of the Financial Statements of the Department of Water Supply
In accordance with Hawaiʻi County Charter Section 10-13, our office will monitor the
contract with the external auditor, Accuity LLP, (RFP #4375a), to complete the following:
Conduct audits of the accounts and other evidence of financial transactions of
the County of Hawaiʻi for the Fiscal Year Ending June 30, 2024
Single Audit* of Federal Financial Assistance Programs for Fiscal Year Ended
June 30, 2024
Report for Landfill Financial Assurance; and
Financial Assessment Electronic Submission of Section 8 – Housing
Choice vouchers
Financial Audit of the Department of Water Supply for the Fiscal Year Ended
June 30, 2024
*Additional programs may be added as determined by the Schedule of Expenditures of Federal Awards
(SEFA).
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Audits In Process
The office will complete and publish carryover items from the previous year.
Department of Environmental Management, Abandoned Vehicles
Completed, Management Response Received
Unpublished
Department of Public Works, Highways and Engineering Divisions, Bridges and
Culverts
Completed, awaiting Management Response
Unpublished
Department of Public Works, Building Permits
Fieldwork in Progress
Unpublished
Additions to the Audit Work Plan
We continuously evaluate risk. Risk can be inherent and dynamic and can evolve rapidly.
Our audit plan may be modified at any time. Modifications should not be considered a
plan failure but should instead reflect the changing environment and the need to adapt to
new and unanticipated threats.
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Self-Initiated Audits
Information Technology: Cyber Security Audit (phase 1 of 3)
In phase 1, we will evaluate the efficiency and effectiveness of the County of Hawaiʻi's
cybersecurity hygiene by aligning the Center for Internet Security (CIS) version 8 and the
National Institute for Standards and Technology with actual practices. We will assess all
cybersecurity elements, from asset inventory and control through incident response and
recovery, to ensure a robust, compliant, and streamlined cybersecurity posture that
mitigates risks and protects critical assets.
Source: https://www.cisecurity.org/controls/v8
Source: Dell.com
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Follow-Up Audit
Hawaii County Fire Department Performance Audit Follow-up
Our audit will follow up on Report No. 2022-02, published March 21, 2022, titled “Hawaii
Fire Department Performance Audit,” to determine the progress and implementation
status of 13 recommendations previously identified.
As of June 28, 2024, status of recommendations for reports being tracked are as follows:
Council-Initiated Audit
The office will consider Council-related audits and projects brought forward by
resolution.
Performance audits approved by Council Resolution and agreed to by the County
Auditor.
Special Projects (Non-Audit)
Grant-In-Aid
Remediation tracker
Surprise cash counts
Tips requiring further research from Fraud and Whistleblower Hotlines
Department /Div Subject Matter Pending Resolved Fully
Implemented
Partially
Implemented
Not
Implemented
Not
Applicable
Follow-Up
Conducted?
Human Resources Hiring 0 3 4 0 0 0 Yes
Fire Performance 13 0 0 0 0 0 No
Mass Transit Cash Handling 0 5 28 6 1 8 Yes
Water Supply Cash Handling 0 1 6 0 0 0 Yes
Real Property Tax Collection 11 0 0 0 0 0 No
Water Supply Contingency Plans 0 1 2 0 0 0 Yes
Housing Housing Credits 7 0 0 0 0 0 No
Information Technology Help Desk 6 0 0 0 0 0 No
Public Works
Contracts and Change Orders 7 0 0 0 0 0 No
Police Community Service,
Health, Training 5 0 0 0 0 0 No
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Remediation Tracker
To increase government transparency and accountability, we have developed a
remediation tracker. We continuously track the status of recommendations until
implemented or otherwise resolved.
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Next Steps
Carryover and new audit engagements will commence as scheduling permits. Completed audits will be shared with those charged with governance, and responsible parties will have the opportunity to provide comments. Completed reports will be transmitted to the County Council and the Mayor and filed with the County Clerk as a public record.
We want to take this opportunity to thank the County Council and the Administration for
their support. We look forward to conducting our work this coming year.
Respectfully,
Tyler J. Benner
County Auditor County of Hawaiʻi