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HomeMy WebLinkAboutFY26-27 Auditing: Investigative Services - AccuityAUGUST 28,2026 Statement of Qualifications to provide Audit Professional Services to the Department of Finance of the County of Hawaii Table of Contents 03 Checklist 04 The Accuity Team 21 Summary of Services or Other Relevant Work and References 23 Our Firm 30 Appendices I. Peer Review Report II. PCAOB Inspection Report August 28, 2026 Ms. Diane Nakagawa Director of Finance County of Hawai‘i 25 Aupuni Street, Suite 2103 Hilo, Hawai‘i 96720 Via email: crystallene.pacheco@hawaiicounty.gov Dear Ms. Nakagawa, Thank you for the opportunity to submit our qualifications to provide audit (FN.5 and FN.7) professional services to the Department of Finance, County of Hawaii for the fiscal year 2026-2027.Accuity has served Hawaii for more than 75 years and now has approximately 190 highly qualified professionals and staff. Over the years, we have developed a reputation for our commitment to quality, as well as our timely and responsive approach to addressing the needs of our clients.With our knowledge and experience in the state and local government industry, and our access to national technical resources, we are uniquely positioned to partner with you. In the following statement of qualifications, we will discuss how our approach can address more than just your basic needs. We look forward to working with you. If you have any questions or would like to discuss the content of our statement of qualifications, please contact Kim Miyoshi at (808) 531-3488 or kim.miyoshi@accuityadvisors.com.Sincerely,Kim Miyoshi Principal, Accuity LLP Page 3 ITEM DESCRIPTION RESPONSE 1 The name of the firm or person, contact information including email address, the principal place of business, and location of its offices; Contact person: Kim Miyoshi, Assurance Principal 808) 531-3433 kim.miyoshi@accuityadvisors.com Honolulu 999 Bishop Street, Suite 2300 Honolulu, Hawaii 96813 1001 Bishop Street, Suite 1200 Honolulu, Hawaii 96813 Wailuku 1885 Main Street, Suite 407 and 408 Wailuku, Hawaii 96793 Hilo 1437 Kilauea Avenue, Suite 104 Hilo, Hawaii 96720 Kona 73-4976 Kamanu Street, Suite 107 Kailua-Kona, Hawaii 96740 2 The age of the firm and its average number of employees over the past five years;Accuity has served Hawaii for 75 years. The average number of employees for the past 5 years is 125.3 The education, training, and qualifications of the firm's key employees in accordance with HRS 103D-304;Please see The Accuity Team on pages 4–20.4 A list of recent projects and the names of up to five clients who may be contacted, including at least two for whom services were rendered during the preceding year; and Please see Services and References on pages 21–22.5 Any promotional or descriptive literature which the firm desires to submit Please see pages 23–29. Return to Table of Contents Return toTableofContentsChecklist Page 4 Local Experience The Accuity Team ReturntoTableofContents Return to Table of Contents We have used our market leader position in Hawaii to build “critical mass” in several key industries, including state and local government, not-for-profit, education, insurance (health, property and casualty, life, and disability), retail/wholesale, real estate, and hospitality.We believe that we are the only firm in Hawaii with the requisite knowledge and experience to deliver the quality of service that you expect and deserve.We know that we can deliver. Page 5 ReturntoTableofContents Return to Table of Contents Current number of personnel in the organization All work will be performed out of Accuity’s Hawaii-based offices. Employee Classification Audit Tax Client Advisory Services Consulting Support Total Partners / Principals 13 6 1 1 1 22 Directors 7 1 1 9 Senior Managers / Managers 16 5 6 3 30 Supervisors / Seniors 28 11 13 9 61 Staff 21 11 9 19 60 Technical Specialist 4 1 3 8 Total organization employees 78 44 31 1 36 190 Page 6 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Michigan; BBA; Accounting and Finance Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Association of Certified Fraud Examiners Hawai‘i Society of Certified Public Accountants Heart Start Hawaii Foundation Honolulu Japanese Chamber of Commerce Institute of Internal Auditors IV& V Institute Society of Financial Examiners Licenses ( State; Type; Number; Original License Date; License Expiration Date):Hawai‘ i; CPA; CPA-3877; Issued: 2001; Exp.: 2027 Guam; CPA; Issued: 2003; Exp.: 2026 Other Certifications: CFE, 2007; CFF, 2007; CGMA, 2011; IVVT, 2019 Permit( s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements:Partner/ Principal for the following government clients:City and County of Honolulu*Department of Education**Department of Hawaiian Home Lands**Department of Health**Department of Taxation Hawai‘ i Housing Finance and Development Corporation**continued on next page)TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS Years of Experience 30 12 -Includes ACFR and Single Audit Includes Single Audit Includes SOC 1 examination Yes No Name: Cory Kubota Position with Firm:CEO, Accuity Advisors, LLC Partner, Accuity LLP Yes No Return toTableofContentsReturn to Table of Contents Page 7 continued from previous page) Hawai‘i Hurricane Relief Fund Oahu Transit Services Office of the Auditor, Hawai‘i Health Systems Corporation Research Corporation of the University of Hawai‘i** State of Hawai‘i*** State of Hawai‘i, Information Technology Governance Audit State of Hawai‘i Insurance Division University of Hawai‘i** Other clients include: Aloha United Way** East-West Center** First Hawaiian Bank*** Hawai‘i Medical Service Association*** Kamehameha Schools Kuakini Health System** Kyo-ya Pacific Company, LLC Lanai Island Holdings Outrigger Hotels Hawaii RDH, Inc.The Kahala Hotel & Resort Waikiki Marriott Cory Kubota CEO, Accuity Advisors, LLC Partner, Accuity LLP Includes ACFR and Single Audit Includes Single Audit Includes SOC 1 examination Return toTableofContentsReturn to Table of Contents Page 8 TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS Years of Experience 29 4 6 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Massachusetts at Amherst; BBA; Accounting Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants Honolulu Japanese Chamber of Commerce Women Corporate Directors – Hawai‘i Chapter Licenses (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-4331; Issued: 2006; Exp.: 2027 Massachusetts; CPA; CPA-20950; Issued: 2001; Exp.: 2026 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Partner/Principal for the following government clients: Department of the Attorney General* Department of Transportation, Airports Division* Department of Transportation, Harbors Division* Employees’ Retirement System of the State of Hawai‘i Hawai‘i Hurricane Relief Fund University of Hawaii*Other clients include:Dongbu Insurance Company Four Seasons Resort O‘ahu Hawaii Dental Service Lanai Island Holdings Outrigger Hotels Hawaii R.C. Wo & Sons, Ltd.Return to Table ofContentsReturntoTable of Contents Includes Single Audit* Name:Erin Takamine Position with Firm: Partner, Accuity Advisors, LLC Managing Partner, Accuity LLP Yes No Yes No Page 9 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): Santa Clara University; BSC; Accounting Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants Honolulu Japanese Chamber of Commerce IV&V Institute Licenses (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-3964; Issued: 2002; Exp.: 2027 Guam; CPA; Issued: 2012; Exp.: 2027 Other Certifications: IVVT, 2019 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Partner/Principal, engagement quality control reviewer, or manager for the following government clients: Board of Water Supply** City and County of Honolulu* County of Hawai‘i* County of Kaua‘i, Department of Water Department of Agriculture** Department of Health** Department of Human Services** Department of Transportation, Harbors Division** Department of Transportation, Highways Division** continued on next page) TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS Years of Experience 28 12 - ReturntoTableofContents Return to Table of Contents Includes ACFR and Single Audit Includes Single Audit Name:Donn Nakamura Position with Firm:Partner, Accuity Advisors, LLC Partner, Accuity LLP Yes No Yes No Page 10 continued from previous page) Hawai‘i Housing Finance and Development Corporation** Hawai‘i Tourism Authority** Oahu Metropolitan Planning Organization** Oahu Transit Services Office of the Auditor: Department of Budget and Finance Department of Transportation Hawai‘i Health Systems Corporation Public Utilities Commission State of Hawaii*Other clients include:Kuakini Health System**Kyo- ya Pacific Company, LLC Maui Land and Pineapple Company Waianae Coast Comprehensive Health Center**Return toTableofContentsReturn to Table of Contents Donn Nakamura Partner, Accuity Advisors, LLC Partner, Accuity LLP Includes ACFR and Single Audit Includes Single Audit Page 11 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Southern California; Bachelor of Science; Accounting and Accounting Information Systems Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants IV&V Institute License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-4571; Issued: 2008; Exp.: 2027 Other Certifications: CGMA, 2014; CSSBB, 2017; IVVT, 2019 Permit(s) to practice public accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Partner/Principal of the following government clients: Department of Education** East-West Center and Foundation** Hawai‘i Convention Center Hawai‘i Tourism Authority** Research Corporation of the University of Hawai‘i** State of Hawai‘i* University of Hawai‘i** Other clients include: Kyo-ya Pacific Star of Honolulu Cruises and Events TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS Years of Experience 21 7 - ReturntoTableofContents Return to Table of Contents Includes ACFR and Single Audit Includes Single Audit Name:Ryan Horiuchi Position with Firm:Partner, Accuity Advisors, LLC Partner, Accuity LLP Yes No Yes No Page 12 TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS AS MANAGER IN OTHER FIRMS Years of Experience 23 2 1 20 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): Seattle University; BABA; Accounting Membership in Professional Organizations: Hawai‘i Society of Certified Public Accountants License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-3681; Issued: 2002; Exp.: 2027 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Summary: As Partner of Accuity’s Client Advisory Services (CAS) group, Melanie leads the CAS practice which offers Hawaii’s businesses transactional accounting support, back office transformation, staff augmentation and Controllership. Melanie started her career in public accounting as an auditor with Price Waterhouse, LLP.She subsequently spent over 15 years in commercial banking, where she developed and leveraged strong skills in financial statement and risk analysis in structuring financial solutions to meet unique needs of local middle market businesses while ensuring compliance with banking regulations.After a successful tenure in commercial banking, Melanie moved to client advisory where she adopts a collaborative approach to help clients achieve their goals.Return toTableofContentsReturn to Table of Contents Name: Melanie Shishido Position with Firm:Partner, Accuity Advisors, LLC Partner, Accuity LLP Yes No Yes No Page 13 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Hawai‘i; BBA; Accounting Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-4034; Issued: 2002; Exp.: 2027 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Principal or engagement quality control reviewer for the following government clients: Board of Water Supply** City and County of Honolulu* County of Hawaii* Department of Education** Department of Hawaiian Home Lands** Department of Health** Department of Human Services** Department of Transportation, Airports Division** Department of Transportation, Highways Division** Hawai‘i Housing Finance and Development Corporation** Hawai‘i Tourism Authority** Oahu Metropolitan Planning Organization** State of Hawai‘i* ReturntoTableofContents Return to Table of Contents TOTAL AS PARTNER/ PRINCIPAL IN THIS FIRM AS PARTNER/ PRINCIPAL IN OTHER FIRMS AS MANAGER IN OTHER FIRMS Years of Experience 27 4 -18 Includes ACFR and Single Audit Includes Single Audit Name:Kimberly Miyoshi Position with Firm:Principal, Accuity Advisors, LLC Principal, Accuity LLP Yes No Yes No Page 14 continued from previous page) Other clients include: Four Seasons Resort O‘ahu Gentry Homes, Ltd. Aloha United Way** Seven-Eleven Hawaii, Inc.Waianae Coast Comprehensive Health Center**Return toTableofContentsReturn to Table of Contents Kimberly Miyoshi Principal, Accuity Advisors, LLC Principal, Accuity LLP Includes ACFR and Single Audit Includes Single Audit Page 15 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Hawai‘i; Masters; Accounting Claremont McKenna College; BA; Economics and Accounting Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-4615; Issued: 2009; Exp.: 2027 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Manager for the following government clients: Board of Water Supply** City and County of Honolulu* County of Hawai‘i* County of Kaua‘i, Department of Water Department of Hawaiian Home Lands** Department of Health** Department of Human Services** Department of Transportation, Highways Division** Hawai‘i Tourism Authority** State of Hawai‘i* TOTAL AS MANAGER/ SENIOR IN THIS FIRM AS MANAGER/ SENIOR IN OTHER FIRMS Years of Experience 19 12 - ReturntoTableofContents Return to Table of Contents Includes ACFR and Single Audit Includes Single Audit Name:Matthew Oda Position with Firm:Senior Manager, Accuity Advisors, LLC Senior Manager, Accuity LLP Yes No Yes No Page 16 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Hawai‘i; BBA, Accounting and Finance Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-4967; Issued: 2012; Exp.: 2027 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: County of Kauai Department of Transportation, Harbors Division* East-West Center and Foundation University of Hawaii*Other clients include:First Hawaiian Bank Hawaii Dental Service Kamehameha Schools Outrigger Hotels Hawaii TOTAL AS MANAGER IN THIS FIRM AS MANAGER IN OTHER FIRMS Years of Experience 16 11 0 Includes Single Audit* Name:Josh Sakamoto Position with Firm: Senior Manager, Accuity Advisors, LLC Senior Manager, Accuity LLP Yes No Yes No Return to Table ofContentsReturntoTable of Contents Page 17 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Hawai‘i; BBA; Management Information Systems Membership in Professional Organizations: American Institute of Certified Public Accountants Hawai‘i Society of Certified Public Accountants Information Systems Audit and Control Association International Information System Security Certification Consortium IV&V Institute Other Certifications: CISA, 2010; CISSP, 2015; IVVT, 2019 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Manager on Information System engagements for the following government clients: Board of Water Supply** City and County of Honolulu* County of Hawai‘i* County of Kaua‘i, Department of Water Department of Education** Department of Health** Department of Human Services** Department of Labor and Industrial Relations** Department of Taxation Department of Transportation, Harbors Division** Department of Transportation, Highways Division** State of Hawai‘i* State of Hawai‘i, Information Technology Governance Audit University of Hawai‘i** continued on next page) ReturntoTableofContents Return to Table of Contents Includes ACFR and Single Audit Includes Single Audit Name:Chris Ichiki Position with Firm:Technology Assurance Senior Manager, Accuity Advisors, LLC Technology Assurance Senior Manager, Accuity LLP TOTAL AS MANAGER/ SENIOR IN THIS FIRM AS MANAGER/ SENIOR IN OTHER FIRMS Years of Experience 28 20 - Yes No Yes No Page 18 continued from previous page) Other clients include: AlohaCare First Hawaiian Bank Grand Wailea Hawaii Dental Service Hawai‘ i Medical Service Association Hawaiian Electric Industries, Inc. Hawaiian Host Kamehameha Schools Kuakini Health System Kyo- ya Pacific Company, LLC Maui Land and Pineapple Company, Inc.Outrigger Hotels Hawaii Return to TableofContentsReturnto Table of Contents Includes ACFR and Single Audit Includes Single Audit Chris Ichiki Technology Assurance Senior Manager, Accuity Advisors, LLC Technology Assurance Senior Manager, Accuity LLP Page 19 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): University of Portland; BBA; Accounting and Finance Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants License (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-5695; Issued: 2018; Exp.: 2027 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Manager or in-charge for the following government clients: City and County of Honolulu* County of Hawai‘i* Department of Health** Hawaii Housing Finance and Development Corporation**Hawaii Tourism Authority**State of Hawai‘i*Other clients include:Kamehameha Schools Lanai Island Holdings Maui Land and Pineapple Company, Inc.ProService Hawaii Waikoloa Land Company Y. Hata & Co., Ltd.TOTAL AS MANAGER/ SENIOR IN THIS FIRM AS MANAGER/ SENIOR IN OTHER FIRMS Years of Experience 10 4 - Return to Table ofContentsReturntoTable of Contents Includes ACFR and Single Audit Includes Single Audit Name:Lance Chee Position with Firm: Senior Manager, Accuity Advisors, LLC Senior Manager, Accuity LLP Yes No Yes No Page 20 TOTAL AS MANAGER/ SENIOR IN THIS FIRM AS MANAGER/ SENIOR IN OTHER FIRMS Years of Experience 13 1 11 Current CPE Requirements Met: In accordance with 2024 revision of Government Auditing Standards) Education (College; Degree; Specialization): West Texas A&M University; MAcc; Accounting West Texas A&M University; MS; Finance and Economics Membership in Professional Organizations: AGA – Hawai‘i Chapter American Institute of Certified Public Accountants Licenses (State; Type; Number; Original License Date; License Expiration Date): Hawai‘i; CPA; CPA-5625; Issued: 2018; Exp.: 2027 Texas; CPA; CPA-101021; Issued: 2001; Exp.: 2026 Permit(s) to Practice Public Accountancy in the State of Hawai‘i: Responsibilities on Previous Government or Similar Type of Engagements: Manager/Senior for the following government clients: Department of Education* Department of Transportation, Airports Division* California State University* Navajo Nation* State of Hawai‘i* Other clients include: AKC Insurance Company LLC Outrigger Hotels Hawaii Ronald D. Howard, Inc. & Subsidiaries Return toTableofContentsReturn to Table of Contents Includes Single Audit*Name: Angela Shan-ting Yao Position with Firm:Senior Manager, Accuity Advisors, LLC Senior Manager, Accuity LLP Yes No Yes No Page 21 STATE OF HAWAII Scope of Work Financial and Single Audit for fiscal year 2014 – present Type II Service Organization Control 1 Report for fiscal year 2014 – present Hours • 7,300 Principal Client Contact Name and Phone Number Mr. Les Kondo, State Auditor, (808) 587-0800 Mr. Keith Regan, Comptroller, (808) 586-0400 CITY AND COUNTY OF HONOLULU Scope of Work Financial and Single Audit for fiscal year 2019 – 2023 Financial Audit of the Sewer Fund for fiscal year 2019 – 2023 Financial Audit of the Public Transportation System - Bus and Paratransit Operations for fiscal year 2019 – 2023 Financial and Single Audit, Board of Water Supply for fiscal year 2022 – present Report on Financial Assessment Subsystem for fiscal year 2019 – 2023 Hours • 4,500 Principal Client Contact Name and Phone Number •Mr. Troy Shimasaki, Acting City Auditor, (808) 768-3134 Within the last five years Accuity has performed audit and other attest services for the following governmental units in the State of Hawaii:Summary of Services or Other Relevant Work and References Return to TableofContentsReturnto Table of Contents Our Current and Previous Government Experience Page 22 ReturntoTableofContents Return to Table of Contents Summary of Services or Other Relevant Work and References Our Current and Previous Government Experience (continued) Within the last five years Accuity has performed audit and other attest services for the following governmental units in the State of Hawaii:DEPARTMENT OF TRANSPORTATION, HARBORS Scope of Work •Financial and Single Audit for fiscal year 2021 – present Hours • 1,000 Principal Client Contact Name and Phone Number Mr. Rex Akutagawa, Administrative Services Officer,808) 587-1933 DEPARTMENT OF TRANSPORTATION, HIGHWAYS Scope of Work •Financial and Single Audit for fiscal year 2021 – present Hours • 2,060 Principal Client Contact Name and Phone Number Ms. Vanessa Lau, Fiscal Management Officer,808) 587-2251 UNIVERSITY OF HAWAII Scope of Work •Financial and Single Audit for fiscal year 1995 – present Hours •6, 000 Principal Client Contact Name and Phone Number Ms. Amy Kunz, Associate Vice President for Budget and Finance/Controller, ( 808) 956-5445 Page 23 Our Firm ReturntoTableofContents Return to Table of Contents Accuity is the brand under which Accuity LLP and Accuity Advisors, LLC provide professional services. The two entities operate together in an Alternative Practice Structure in accordance with the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct and all applicable laws and professional standards. Accuity LLP is a licensed, independent CPA firm that provides attest services and Accuity Advisors, LLC provides tax and business consulting services. Although our services are delivered through two separate legal entities, we operate collaboratively under the Accuity brand to provide clients with a seamless and integrated experience while maintaining the independence, quality, and regulatory compliance required for attest engagements. Since our founding in 1951, we’ve fostered a deep sense of connection with our clients and community that reflects our unique culture in Hawai‘i. We work hard to embody the values of our community, cultivating a strong commitment to care for one another and our clients, as well as developing future generations of business leaders. We have created a full-service professional services firm that distinguishes itself as a strategic advisor with the know-how to navigate Hawai‘i’s complex regulatory, political, business and cultural landscape. We embody a “no surprises” approach, communicating on an ongoing basis with your teams about the audit process, as well as new accounting, auditing and regulatory developments. Our senior team members are personally committed and involved in our work; they ensure that management’s input for identified issues are integrated into practical solutions. 190 PROFESSIONALS 75-YEAR HISTORY IN HAWAII 67 CPAs, CFEs, CISAs, JDs Accuity is one of the largest full-service professional services firms in our state, with 190 qualified employees including 67 Certified Public Accountants (CPAs), Certified Fraud Examiners (CFEs), Certified Information Systems Auditors (CISAs), and Juris Doctors (JDs) that offer a range of assurance, tax, consulting, and advisory services to some of the largest and most influential organizations and government agencies in Hawaii. Page 24 ReturntoTableofContents Return to Table of Contents Our Services Assurance Assurance is Accuity’s largest practice area. Our services include financial and information technology (IT) audits, reviews, accounting and regulatory advice, and other attest and non-attest services. Our assurance professionals provide meaningful and tailored analyses and insights in response to organizational issues and requirements, and our risk-based methodology and use of data analytics offers a comprehensive view of your organizational risks, internal processes and internal controls. Advisory Accuity’s professionals approach our work with a strategic mindset that allows us to assess our clients’ needs across a wide array of challenges which enables us to offer actionable insights that result in successful outcomes. Accuity offers accounting services, educational consulting, IT managed services, robotic process automation, independent verification and validation, project and organizational change management, Lean Six Sigma business process reengineering, and strategic planning services. Tax Accuity is one of the few practices in Hawai‘i with in-depth experience serving not-for-profit entities. Our tax group provides core compliance and preparation services, keeping you informed of tax law changes at the federal level along with Hawai‘i’s unique state and local laws so you’re always up to date on current rules and regulations. Our experienced tax team helps you identify tax savings, minimize your obligations, take advantage of credits and incentives, and understand exposure issues. Page 25 Our affiliations enable us to strengthen our overall capabilities, while accessing valuable resources and approaches to provide broader insights to our clients. ReturntoTableofContents Return to Table of Contents Powerful alliances with national and global resources Current (formerly known as Crete Professionals Alliance) Accuity is a proud member of Current (formerly known as Crete Professionals Alliance), a national alliance of over 40 leading accounting and advisory firms spanning coast to coast. Current was purpose-built to help high-performing firms scale responsibly while remaining deeply rooted in their local markets. Through this partnership, Accuity retains decision-making authority in our local office, allowing us to continue serving clients with the same judgment, discretion, and market knowledge that have defined our success, while gaining access to enterprise-level resources, specialized expertise, and advanced technology across the Current network. Current has made a significant, long-term investment in technology and innovation, including strategic partnerships with Thrive Capital and OpenAI. Together, we are developing proprietary, secure software platforms designed specifically for the accounting profession, focused on increasing efficiency, improving accuracy, strengthening controls, and enhancing the client experience across tax, audit, and advisory services. These tools are not generic AI overlays; they are purpose-built solutions informed by real practitioner workflows, rigorous compliance standards, and a commitment to confidentiality and data integrity. BDO Alliance USA Accuity is an Independent Member of BDO Alliance USA, one of the industry's largest associations of accounting and professional services firms. Through this affiliation, Accuity has direct access to the technical resources, specialized industry expertise, and national reach of BDO USA, P.C. and, through BDO USA's affiliation with BDO Global, to the broader international network of BDO member firms. The Alliance brings deep experience serving high-profile state and local governments, with technical resources spanning governmental accounting, single audits, and federal compliance. Page 26 ReturntoTableofContents Return to Table of Contents Independence, Integrity and Objectivity We rigorously protect the integrity of our work by taking proactive steps to remain objective, independent, and transparent at all times. The maintenance of our independence on attest engagements is non-negotiable and a cornerstone to the profession we operate in. Our independence protocols ensure that employment, financial, and business relationships between Accuity and its clients are transparent. We require all professional staff to disclose potential independence conflicts at least once a year and perform in-depth conflict of interest checks to reaffirm that we are independent of our clients and their related entities. Talent Development We have carefully designed protocols for recruiting, professional development and advancement. All candidates go through an extensive screening process. All professionals, from associate to partner, are regularly evaluated on their performance from a technical competency and client service perspective. Our comprehensive continuing education program is designed to develop and nurture our greatest resource – our people. In addition to core curriculum such as accounting, auditing and tax technical updates; ethics and business conduct; and cross-line of service coordination; each professional attends industry specific training based on his or her respective specialization and discipline. Our philosophy is not to hire “number crunchers” – we develop well-rounded business professionals and advisors who understand the needs of our clients and help them to move forward. Selectivity and Risk Management We are extremely proud of our client portfolio and are very selective about who we serve. Our client acceptance and continuance procedures are designed to screen the accounting, auditing, tax, regulatory, legal and reputational risks of existing and prospective clients, and to determine whether they are and/or continue to be compatible with our firm. Local and Industry Specialization You need to be confident that your service provider will be in sync with your operations and knowledgeable about your industry, give you the right answers to your questions, and deliver service in a timely manner. In your constantly changing business environment, you don’t have the time to train your auditors/accountants or teach them how you do business. We have used our position as one of the largest firms in Hawai‘i to build “critical mass” in several key industries, including state and local government, not-for-profit, health and property and casualty insurance, healthcare, education, real estate, trusts and estates, hospitality and employee benefits. Page 27 ReturntoTableofContents Return to Table of Contents Quality Control Our reputation depends on our compliance with the highest standards of quality and excellence. We monitor quality both internally and through participation in external review programs. We are subject to PCAOB inspection and external peer review every three years. We have attached for your reference our most recent peer review and PCAOB inspection reports. In addition to undergoing regular regulatory reviews, we have implemented an ongoing internal monitoring program to ensure compliance with firm quality management policies and procedures and adherence to professional standards. Our Use of Technology We recognize the changes occurring in our profession where technology is becoming a powerful tool that should be leveraged to gain operational efficiencies in our audits while providing valuable business insights. As we challenge our profession’s traditional audit methods, we believe a movement has begun towards further automating the audit to transform mundane tasks into critical analysis. We are utilizing new technologies powered by computing intelligence that can securely ingest data from the County’s accounting systems. Accuity LLP is the only Hawaii based firm registered and regulated by the PCAOB Audit Software We utilize paperless, cloud-based audit and tax software, to document, organize and manage our work product. The system allows for real-time, continuous collaboration among our team members across all lines of service while enabling our engagement leads to actively review the progress and status of our work securely from any location at any time, resulting in higher quality audits and increased service efficiency.Research Tools We use web-based tools from Thomson Reuters and CCH to research relevant accounting and auditing standards and incorporate them into our service approach. We also utilize a comprehensive financial statement and Single Audit disclosure checklist system that is tailored to state and local governments, customized to include broad based transaction types and updated for elections to early adopt new accounting standards. Page 28 Data Extraction, Analytics and Visualization Tools We’ve begun incorporating several data extraction and analytics tools into our audit process. Tools such as Power BI, Power Query and MindBridge assist with the extraction, transformation and loading of data from various sources such as client systems, web pages, PDF files or Microsoft Office files into our data analysis software. Depending on the audit procedure, additional tools such as IDEA and PowerPivot complement the extraction and analysis tools to perform general and subledger data analysis procedures, including applying statistical, logical or regression analysis to evaluate, visualize, and summarize financial transactions. This analysis also extends to fraud-related tests pertaining to journal entry, vendor, and payments to employees testing. We use data visualizations to analyze entities in more meaningful and intuitive ways to enhance the audit experience. We can also use these tools to develop customized diagnostic and sustainable analytical solutions to assist in providing more in-depth insight into performance and to monitor enhanced financial metrics. Secure Collaboration Tools Accuity offers flexible methods of collaborating with our clients. We can set up clients on a Microsoft Teams channel to post audit updates and files, while participating in virtual meetings to discuss accounting and audit-related matters. We have also collaborated and attended numerous management and Audit Committee meetings with our clients using the Microsoft Teams, Zoom or WebEx platforms for general discussion and presentation of materials and used separate rooms for private sessions. We offer the use of a cloud-based file sharing tool named Suralink which incorporates built-in internal workflows and dashboards to reduce the administrative time to organize and coordinate file sharing. We also license ShareFile software to securely email sensitive files to our clients. ReturntoTableofContents Return to Table of Contents Page 29 Automation and Repetitive Task Removal We constantly strive to improve the efficiency and effectiveness of our audits and have successfully incorporated robotic process automation RPA) using DataSnipper platform. We have established an RPA Center of Excellence to formalize best practices in the development, testing and release of RPA to our audit environment. DataSnipper is a powerful tool that we use to automate tests of detailed transactions (e.g., revenue and expense testing), using advanced OCR and machine learning to automatically match and validate transaction details to source documents. Data Security In addition to our strict vendor oversight protocols for cloud-based technology tools, we commit significant resources to ensure that client data is fully secure through encrypted virtual private network connections as well as the implementation of encryption software, server firewalls, spam filters and antivirus technology. ReturntoTableofContents Return to Table of Contents ReturntoTableofContents Return to Table of Contents I. Peer Review Report II. PCAOB Inspection Report Appendices ReturntoTableofContents Return to Table of Contents ReturntoTableofContents Return to Table of Contents 1 | 2024 Inspection Accuity LLP Headquartered in Honolulu,Hawaii)September 27,2024 THIS IS A PUBLIC VERSION OF A PCAOB INSPECTION REPORT PORTIONS OF THE COMPLETE REPORT ARE OMITTED FROM THIS DOCUMENT IN ORDER TO COMPLY WITH SECTIONS 104(g)(2)AND 105( b)(5)(A)OF THE SARBANES-OXLEY ACT OF 2002 PCAOB RELEASE NO.104-2024-148 BACK TO CONTENTS BACK TO CONTENTS TABLE OF CONTENTS 2024 Inspection 2 Overview of the 2024 Inspection and Historical Data by Inspection Year 3 Part I: Inspection Observations 5 Part IA: Audits with Unsupported Opinions 6 Part IB: Other Instances of Non-Compliance with PCAOB Standards or Rules 7 Part IC: Independence 8 Part II: Observations Related to Quality Control 9 Appendix A: Firm’s Response to the Draft Inspection Report A-1 BACK TO CONTENTS 2024 INSPECTION Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |2 In the 2024 inspection of Accuity LLP,the Public Company Accounting Oversight Board (PCAOB)assessed the firm’s compliance with laws,rules,andprofessional standards applicable to the audits of public companies. We selected for review three audits ofissuers with fiscal years ending in2022.For each issuer audit selected,we reviewed a portion of the audit.We also evaluated elements of the firm’s system ofquality control. 2024 Inspection Approach In selecting issuer audits for review,we use a risk-based method of selection.We make selections based on (1)our internal evaluation of audits we believe have aheightened risk of material misstatement, including those with challenging audit areas,and (2)other risk-based characteristics,including issuer and firm considerations.In certain situations,we may select all ofthe firm’s issuer audits for review. When we review anaudit,we donot review every aspect ofthe audit.Rather,wegenerally focus our attention onaudit areas we believe to be of greater complexity,areas ofgreater significance orwith a heightened risk ofmaterial misstatement to the issuer’s financial statements,and areas ofrecurring deficiencies.We may also select some audit areas for review in a manner designed to incorporate unpredictability. Our selection of audits for review does not necessarily constitute a representative sample of the firm’s total population ofissuer audits.Additionally,our inspection findings are specific to the particular portions of the issuer audits reviewed.They are not an assessment ofall of the firm’s audit work or ofall of the audit procedures performed for the audits reviewed. View the details on the scope of our inspections and our inspections procedures. BACK TO CONTENTS OVERVIEW OF THE 2024 INSPECTION AND HISTORICAL DATA BY INSPECTION YEAR The following information provides an overview of our 2024 inspection as well as data from the previous inspection.We use a risk-based method to select audits for review and to identify areas on which we focusourreview.Because ourinspection process evolves over time,it can,and often does,focus on a different mix of audits and audit areas from inspection to inspection and firm to firm.Further,a firm’s business,the applicable auditing standards,or other factors can change from the time ofone inspection to the next.As a result of these variations,we caution that our inspection results are not necessarily comparable over time or among firms. Firm Data and Audits Selected for Review 2024 2021 Firm data Total issuer audit clients in which the firm was the principal auditor 3 3 Total engagement partners on issuer audit work1 1 1 Audits reviewed Total audits reviewed 3 3 Audits in which the firm was the principal auditor 3 3 Integrated audits of financial statements and internal control over financial reporting ICFR) 0 1 Audits with Part I.A deficiencies 1 0 Percentage of audits with Part I.A deficiencies 33%0% If we include a deficiency in Part I.A of our report,it does not necessarily mean that the firm has not addressed the deficiency.In many cases,the firm has performed remedial actions after the deficiency was identified.Depending on the circumstances,remedial actions may include performing additional audit procedures,informing management of the issuer of the need for changes to the financial statements or reporting on ICFR,or taking steps to prevent reliance on prior audit reports. 1 The number of engagement partners on issuer audit work represents the total number of firm personnel (not necessarily limited to personnel with an ownership interest)who had primary responsibility for an issuer audit (as defined in AS 1201, Supervision of the Audit Engagement)during the twelve-month period preceding the outset of the inspection. Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |3 BACK TO CONTENTS Our inspection may include a review,on a sample basis,ofthe adequacy ofa firm’s remedial actions, either with respect to previously identified deficiencies or deficiencies identified during the current inspection.If a firm does not take appropriate actions to address deficiencies,we may criticize its system of quality control or pursue a disciplinary action. If we include a deficiency in our report —other than those deficiencies for audits with incorrect opinions on the financial statements and/or ICFR —it does not necessarily mean that the issuer’s financial statements are materially misstated or that undisclosed material weaknesses in ICFR exist.It is often not possible for us to reach a conclusion on those points based on our inspection procedures and related findings because,for example,we have only the information that the auditor retained and the issuer’s public disclosures.We donot have direct access to the issuer’s management,underlying books and records,and other information. Audit Areas Most Frequently Reviewed This table reflects the auditareas we have selected most frequently for review in the 2024 inspection and the previous inspection.For the issuer audits selected for review,we selected these areas because they were generally significant tothe issuer’s financial statements,may have included complex issues for auditors,and/or involved complex judgments in (1)estimating and auditing the reported value of related accounts and disclosures and (2)implementing and auditing the related controls. Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |4 2024 2021 Audit area Audits reviewed Audit area Audits reviewed Investment securities 2 Investment securities 2 Revenue and related accounts 1 Revenue and related accounts 1 Significant estimates 1 Long-lived assets 1 Participant and employer contributions 1 Participant distributions 1 BACK TO CONTENTS PART I:INSPECTION OBSERVATIONS Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |5 Part I.A of our report discusses deficiencies,ifany,that were of such significance that we believe the firm,at the time it issued its audit report(s),had not obtained sufficient appropriate audit evidence to support its opinion(s)on the issuer’sfinancial statements and/or ICFR. Part I.B discusses certain deficiencies,if any,that relate to instances of non-compliance with PCAOB standards orrules other than those where the firm had not obtained sufficient appropriate audit evidence to support its opinion(s).This section does not discuss instances of potential non-compliance with SEC rules or instances of non-compliance with PCAOB rules related to maintaining independence. Part I.C discusses instances of potential non-compliance with SEC rules or instances of non-compliance with PCAOB rules,if any,related to maintaining independence. Consistent with the Sarbanes-Oxley Act (“Act”),it is the Board’s assessment that nothing in Part I of this report deals with a criticism of,or potential defect in,the firm’squality control system.We discuss any such criticisms or potential defects in Part II.Further,you should not infer from any Part I deficiency,or combination of deficiencies,that we identified a quality control finding in Part II.Section 104(g)(2) of the Act restricts usfrom publicly disclosing Part II deficiencies unless the firm does not address the criticisms or potential defects to the Board’s satisfaction no later than 12 months after the issuance of this report. Classification of Audits with Part I.A Deficiencies Within Part I.A of this report,we classify each issuer audit in one of the categories discussed below based on the Part I.A deficiency or deficiencies identified in our review. The purpose of this classification system is to group and present issuer audits by the number of Part I.A deficiencies we identified within the audit as well as to highlight audits with an incorrect opinion on the financial statements and/or ICFR. Audits with an Incorrect Opinion on the Financial Statements and/or ICFR This classification includes instances where a deficiency was identified in connection with our inspection and,as a result,an issuer’s financial statements were determined to be materially misstated,and the issuer restated its financial statements.It also includes instances where a deficiency was identified in connection with our inspection and, as a result, an issuer’s ICFR was determined to be ineffective,or there were additional material weaknesses that the firm did not identify,and the firm withdrew its opinion,or revised its report,on ICFR. This classification does not include instances where,unrelated to our review,an issuer restated its financial statements and/or an issuer’s ICFR was determined to be ineffective.We include any deficiencies identified in connection with our reviews of these audits in the audits with multiple deficiencies or audits with a single deficiency classification below. Audits with Multiple Deficiencies This classification includes instances where multiple deficiencies were identified that related to a combination of one ormore financial statement accounts,disclosures,and/or important controls in an ICFR audit. Audits with a Single Deficiency This classification includes instances where a single deficiency was identified that related to afinancial statement account or disclosure or to an important control in an ICFR audit. PART I.A:AUDITS WITH UNSUPPORTED OPINIONS This section ofour report discusses the deficiencies identified,by specific issuer audit reviewed,in the audit work supporting the firm’s opinion on the issuer’sfinancial statements. We identify each issuer by aletter (e.g.,Issuer A).Each deficiency could relate to several auditing standards,but we reference the PCAOB standard that most directly relates tothe requirement with which the firm did not comply. We present issuer audits below within their respective deficiency classifications (asdiscussed previously).Within the classifications,we generally present the audits based onour assessment asto the relative significance of the identified deficiencies,taking into account the significance ofthe financial statement accounts and/ordisclosures affected,and/orthe nature or extent of thedeficiencies. Audits with an Incorrect Opinion on the Financial Statements and/or ICFR None Audits with Multiple Deficiencies Issuer A Type of audit and related area affected In our review,we identified deficiencies in the financial statement audit related to Significant Estimates, for which the firm identified a significant risk. Description of the deficiencies identified The issuer engaged a specialist to develop an estimate.The firm did not test the accuracy and completeness of issuer-produced data that the company’s specialist used to develop the estimate.(AS 1105.A8a) Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |6 The firm did not perform procedures to test another estimate,beyond reconciling the amount to a confirmation.(AS 2501.07) Audits with a Single Deficiency None PART I.B:OTHER INSTANCES OF NON-COMPLIANCE WITH PCAOB STANDARDS OR RULES This section of our report discusses certain deficiencies that relate to instances of non-compliance with PCAOB standards or rules otherthan those where the firm had not obtained sufficient appropriate audit evidence to support its opinion(s).This section does not discuss instances of potential non-compliance with SEC rules or instances of non-compliance with PCAOB rules related to maintaining independence. When we review anaudit,we donot review every aspect of the audit.Asaresult,the area below was not necessarily reviewed on every audit.Insome cases,we assess the firm’s compliance with specific PCAOB standards or rules on other audits that were not reviewed and include any instances of non- compliance below. We identified the following deficiency: In one audit reviewed,the engagement team performed procedures to determine whether or not matters were critical audit matters but,in performing those procedures,didnot include certain matters that were communicated to the audit committee and that related to accounts or disclosures that were material to the financial statements.In this instance,the firm was non-compliant with AS 3101,The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.This instance of non-compliance does not necessarily mean that other critical audit matters should have been communicated in the auditor’s report. Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |7 PART I.C:INDEPENDENCE Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |8 In the 2024 inspection,we did not identify,and the firm didnotbring to our attention,anyinstances of potential non-compliance with SEC rules or instances of non-compliance with PCAOB rules related to maintaining independence.Although this section does not include any instances of potential non- compliance that we identified or the firm brought toour attention,there may be instances of non- compliance with SEC or PCAOB rules related to independence that were not identified through our procedures or the firm’s monitoring activities. While the firm did not bring to our attention any instances of potential non-compliance,the number, large or small,offirm-identified instances of potential non-compliance may be reflective ofthe size of the firm,including the number of associated firms;the design and effectiveness of the firm’s independence monitoring activities;and the size and/or complexity of the issuers it audits,including the number of affiliates of those issuers.Therefore,we caution against making any comparison of firm- identified instances of potential non-compliance across firms. PART II:OBSERVATIONS RELATED TO QUALITY CONTROL Accuity LLP,PCAOB Release No. 104-2024-148,September 27,2024 |9 Part II of our report discusses criticisms of,and potential defects in,the firm’s system of quality control. We include deficiencies in Part II if an analysis of the inspection results,including the results ofthe reviews of individual audits,indicates that the firm’s system of quality control does not provide reasonable assurance that firm personnel will comply with applicable professional standards and requirements.Generally,the report’sdescription of quality control criticisms isbased on observations from our inspection procedures. This report does not reflect changes or improvements to the firm’s system of quality control that the firm may have made subsequent to the period covered by our inspection.The Board does consider such changes or improvements in assessing whether the firm has satisfactorily addressed the quality control criticisms ordefects no later than 12 months after theissuance of this report. When we issue our reports,we do not make public criticisms of,and potential defects in,the firm’s system of quality control,to the extent any are identified.If a firm does not address tothe Board’s satisfaction any criticism of,or potential defect in,the firm’s system of quality control within 12 months after the issuance of our report,we will make public any such deficiency. APPENDIX A:FIRM’S RESPONSE TO THE DRAFT INSPECTION REPORT Pursuant to Section 104(f)of the Act,15 U.S.C.§7214(f), and PCAOB Rule 4007(a),the firm provided a written response to a draft of this report.Pursuant to Section 104(f)of the Act and PCAOB Rule 4007(b), the firm’s response,excluding any portion granted confidential treatment,isattached hereto and made part of this final inspection report. The Board does not make public any of a firm’s comments that address a nonpublic portion of the report unless a firm specifically requests otherwise.In some cases,the result maybe that noneof a firm’s response is made publicly available. In addition,pursuant to Section 104(f)ofthe Act,15 U.S.C.§7214(f),and PCAOB Rule 4007(b),if afirm requests,and the Board grants,confidential treatment for any of the firm’s comments on a draft report, the Board does not include those comments in the final report.The Board routinely grants confidential treatment,if requested,for any portion of a firm’s response that addresses any point in the draft that the Board omits from,orany inaccurate statement in the draft that the Board corrects in,the final report. Accuity LLP, PCAOB Release No. 104-2024-148, September 27,2024 |A-1 Accuity LLP, PCAOB Release No. 104-2024-148, September 27,2024 |A-2 A-1 | BACK TO CONTENTS Thank you for this opportunity. We look forward to hearing from you. FIRST HAWAIIAN CENTER 999 Bishop Street Suite 2300 Honolulu, Hawaii 96813 P 808.531.3400 F 808.531.3433 info@accuityllp.com www.accuityllp.com 2026 Accuity Accuity”is the brand name under which Accuity LLP and Accuity Advisors,LLC provide professional services. Accuity LLP and Accuity Advisors,LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws,regulations,and professional standards. Accuity LLP is a licensed independent CPA firm that provides attest services to its clients,and Accuity Advisors,LLC provides tax and business consulting services to their clients.Accuity Advisors,LLC is not a licensed CPA firm.