CITY AGAIN EARNS “LOW RISK” AUDIT DESIGNATION

             Independent financial auditors have once again 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.

            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.

             Mayor Mufi Hannemann said, “This further demonstrates how the City is succeeding in meeting our goal of fiscal openness and accountability.  We were the first in the state to have our bond rating upgraded because of our policies of fiscal discipline and spending money on core City services.  Our budget proposals, which are under review by the City Council, reflect our adherence to those policies.  Moreover, I’ve vowed that no future mayor or Council, not to mention future generations, should have to shoulder the kind of financial demands that arise out of irresponsible budgeting and long-term planning.”

            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 added, “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 Emergency Management.  We have a top-notch City team, and the outcome reflects their professionalism and integrity.”

Bill Brennan, 527-6928