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Wednesday, November 29, 2017
Auditor: DLIR Joins Long List of Departments Not Reporting Funds to Legislature
By Hawaii State Auditor @ 2:50 PM :: 3567 Views :: Hawaii State Government

Review of Special Funds, Revolving Funds, Trust Funds, and Trust Accounts of the Department of Labor and Industrial Relations

Hawaii State Auditor, Report No. 17-12 November 2017

One special fund did not meet criteria

OUR REVIEW OF TEN SPECIAL FUNDS, one revolving fund, four trust funds, and five trust accounts of the Department of Labor and Industrial Relations (DLIR) found one special fund did not meet criteria and should be closed.

Section 23-12, Hawai‘i Revised Statutes (HRS), requires the Auditor to review all existing special, revolving, and trust funds every five years. Reviews are scheduled so that each department’s funds are reviewed once every five years. Although not mandated by statute, we included trust accounts as part of our review. This is our fifth review of DLIR’s revolving funds, trust funds, and trust accounts. It is our first review of DLIR’s special funds.

We used criteria developed by the Legislature and by our office based on public finance and accounting literature. For each fund, we present a fiveyear financial summary, the purpose of the fund, and conclusions about its use. We did not audit the financial data which is provided for informational purposes. We do not present conclusions about the effectiveness of programs or their management, or whether the programs should be continued.

Reporting shortfall

WE ALSO NOTED that DLIR did not file statutorily required reports for non-general funds and for administratively created funds. Accurate and complete reporting will greatly improve the Legislature’s oversight and control of these funds and provide increased budgetary flexibility.

Agency response

DLIR GENERALLY AGREED with our findings and will take appropriate action to close the special fund that did not meet criteria. DLIR will also comply with reporting requirements.

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