CITY RELEASES COMPREHENSIVE ANNUAL FINANCIAL REPORT

The City administration today posted the audited financial statements for the City and County of Honolulu for the 2005-06 fiscal year, which ended on June 30, 2006.

The 226-page document can be downloaded from www.honolulu.gov/budget/cafr.htm.

The financial statements comprise what is known as the Comprehensive Annual Financial Report, which was prepared by the Department of Budget and Fiscal Services under the leadership of Director Mary Pat Waterhouse. The report covers the City’s first full fiscal year under the administration of Mayor Mufi Hannemann.

“This report and the auditors’ approval is another indication that we are on the right track in restoring fiscal accountability to the City and County of Honolulu,” said Hannemann. “It also demonstrates the good work being done by our Department of Budget and Fiscal Services.”

The annual audit was conducted by the independent accounting firm of Nishihama & Kishida, CPAs, Inc., under the direction of City Auditor Leslie Tanaka.

Waterhouse said, “The independent auditors issued an unqualified – or ‘clean’ – opinion on the City’s financial statements, that such statements present fairly, in all material respects, the City’s financial position as of June 30  and changes in financial position for the fiscal year that ended on June 30 in conformity with generally accepted accounting principles.

“The financial statements indicate a strong financial performance and improved fiscal stability,” said Waterhouse.

The City strengthened its financial position over the previous fiscal year because of strong revenue growth:

·   Revenues increased $124.0 million to $1.4186 billion for fiscal year 2006, mainly because of increases in real property and other taxes and in sewer revenues.

·   Net assets increased $5.7 million to $981.2 million as of June 30, 2006.

            Waterhouse noted that Standard & Poor’s Rating Service cited the City’s unaudited financial statements for FY2006 in raising Honolulu’s bond rating HonHhto “AA” from “AA-minus.”

            The audit confirms that the bond raters had a true picture of the City’s financial position, she said.

            The City’s comprehensive annual financial report has received the prestigious Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association 19 times (including last fiscal year)  in the past 20 years.

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Contact:

            Mary Pat Waterhouse, Director of Budget and Fiscal Services, 523-4617