FOR IMMEDIATE RELEASE                                   March 15, 2007

Release No. M-22-07

CITY EARNS ‘LOW RISK’ AUDIT DESIGNATION

            Independent financial auditors have designated the City and County of Honolulu a “low-risk auditee” for the first time in 10 years, Mayor Mufi Hannemann announced today.

            The auditors from the Honolulu firm of Nishihama & Kishida, CPAs, Inc., audited the City’s federally funded programs and internal controls in conjunction with the annual financial audit of the City for the fiscal year that ended June 30, 2006. The firm issued an “unqualified” or clean report on the audit, and found no material weaknesses or reportable conditions.

            “This audit was conducted by an independent audit firm chosen by the City Auditor,” said Hannemann. “The auditors confirmed that we’re moving in the right direction in my administration’s continuing effort to increase fiscal accountability to taxpayers.”

            Mary Pat Waterhouse, director of the Department of Budget and Fiscal Services, said, “Designation as a low-risk auditee is a significant achievement. Federal guidelines provide for the designation only when municipal or state governments receive unqualified opinions and no significant findings related to internal controls or federal program compliance for two consecutive years.”
            The mayor said, “This designation was achieved through the hard work and dedication of many City employees, particularly in the departments of Budget and Fiscal Services, Community Services, Transportation Services, Environmental Services and the Oahu Civil Defense Agency (now the Department of Emergency Management).”

            The audit was performed to determine the City’s compliance with requirements applicable to its federal financial assistance programs and to evaluate the internal controls over financial reporting and compliance with City, state and federal laws and regulations.

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Contact:

            Bill Brennan, 527-6928

            Mark Matsunaga, 527-5767