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Mayor Mufi Hannemann today announced that a special accounting task force has further protected the City’s bond ratings by closing out more than 100 old City contracts stretching as far back as one decade, worth a total of more than $10 million.

“We are committed to careful and prudent management of taxpayer dollars, and this accounting review was part of our ongoing effort to clean up any financial problems we inherited,” Mayor Hannemann said. “Fiscal responsibility is one of our top priorities, and our excellent bond ratings save taxpayers money by reducing our interest payments.”

The task force carefully reviewed City financial records to identify contracts for projects that were completed under budget, were not pursued or otherwise remained “open” for accounting purposes.

The Mayor’s Project Management Office coordinated several City departments to officially close out these contracts and review others. These successful efforts will:

·         Reduce the City’s authorized but unissued general obligation bond debt balance.

·         Reduce the deficit balance in the Capital Projects Funds unreserved fund balance and reduce the fund balance reserved for encumbrances.

·         Provide a better financial picture to bond raters to protect the City’s excellent bond ratings and enhance opportunities for improving them further.

·         Create new procedures to ensure contracts are closed out in a timely manner.

“Closing out contracts in a timely manner is key goal as we move forward, and is an integral part of prudent and accountable contract management,” said Department of Budget and Fiscal Services Director Mary Pat Waterhouse.

Independent financial auditors this year designated the City and County of Honolulu as a “low-risk auditee,” only the second time in 11 years the City has earned this high mark.

Auditors from the Honolulu firm of N&K CPAs, Inc., were selected by the City Auditor to audit federally funded programs and internal controls, in conjunction with the annual financial audit for the fiscal year that ended June 30, 2007. The firm issued an “unqualified” or clean report on the audit, and found no material weaknesses or significant deficiencies.


Contact: Department of Budget and Fiscal Services Director Mary Pat Waterhouse, 768-3901


Wednesday, October 01, 2008

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