HomeMy WebLinkAboutAnnual Audit Plan FY 2025-2026Hawaiʻi is an Equal Opportunity Provider and Employer
June 23, 2025
Honorable Holeka Goro Inaba, Council Chair and Members of the Hawaiʻi County Council Hawaiʻi County Council 25 Aupuni Street
Hilo, Hawaiʻi 96720
Dear Chair Inaba and Council Members,
In accordance with Hawaiʻi County Charter Section 3-18(d)(2), the Office of the County Auditor’s
Fiscal Year 2025-26 Annual Audit Plan is attached. This provision requires our office to transmit
an annual audit plan to the Hawaiʻi County Council and the Mayor.
The plan includes the following:
• Annual Comprehensive Financial Report for Fiscal Year Ending 2025
• Single Audit of Federal Financial Assistance Programs for Fiscal Year Ending 2025
• Audit of the Financial Statements of the Department of Water Supply for Fiscal Year Ending 2025
• One peer review
• One follow-up audit
• Three carry-over audits
• Four surprise cash counts
• Unplanned engagements, and special projects (Grant-in-Aid, Whistleblower
Investigations)
• 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 2025-26
County of Hawaiʻi
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
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Date: June 23, 2025 To: Honorable Holeka Goro Inaba, Council Chair
and Members of the Hawaiʻi County Council
From: Tyler J. Benner, County Auditor Subject: Annual Audit Plan Fiscal Year 2025-26
Executive Summary
Under Hawaiʻi County Charter Section 3-18(d)(2), the Office of the County Auditor
respectfully submits its Fiscal Year 2025-26 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 C. Kimo Alameda, PhD., Mayor
William V. Brilhante Jr., 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 independently serve the County Council and the citizens of Hawai‘i
County by promoting accountability, fiscal integrity, and transparency in local government.
We conduct performance and financial audits of County agencies and programs in
accordance with Government Auditing Standards.
The Office of the County Auditor examines the use of public funds, evaluates operations
and activities, and provides analyses, options, and recommendations to decision-makers
in an objective manner. Our work supports County government in managing public
resources, delivering public services, and upholding 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 2025-26 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, 2025
Single Audit* of Federal Financial Assistance Programs for Fiscal Year Ended
June 30, 2025
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, 2025
*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 Information Technology, Cybersecurity Audit (Phase I)
Fieldwork and testing
Unpublished
Hawaiʻi County Fire Department, Follow up Performance Audit.
Planned entrance conference (July 2, 2025)
Unpublished
Department of Research and Development
Suspended until other projects are completed
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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Follow-Up Audit
Office of Housing and Community Development Housing Credits Audit Follow-up
Our audit will follow up on Report No. 2023-01, published February 1, 2023, titled “Office of Housing and Development
Affordable Housing Credits” to determine the progress and implementation status of seven (7) recommendations previously
identified.
As of June 23, 2025, the status of recommendations for reports being tracked are as follows:
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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 (Wai-Wai)
Remediation tracker
Surprise cash counts
Peer Review
Tips requiring further research from Fraud and Whistleblower Hotlines
Since inception in 2022, our fraud, waste, and abuse hotlines have received
approximately 99 calls, both substantiated and unsubstantiated*.
The improper use of government resources or positions are commonly uncovered by
employees and the public. We strongly encourage reporting of any concerns through our
fraud waste and abuse hotlines:
Fraud and Waste: 808.480.8213 Abuse: 808.480.8279
*as of June 5, 2025
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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