Specifications include, but are not limited to: Article VII, Section 10 of the Hawaii State Constitution and Section 23-4, Hawaii Revised Statutes (HRS), require the Auditor to conduct post-audits of the transactions, accounts, programs, and performance of all departments, offices, and agencies of the State of Hawaii (State) and its political subdivisions. These provisions further require the Auditor to certify to the accuracy of all financial statements issued by the respective accounting officers of the State. The Auditor is issuing this Request for Proposals (RFP) to solicit Proposals from prospective Offerors demonstrating successful experience in providing auditing, accounting, and related professional services and intends to employ the services of certified public accounting firms to conduct such engagements. Pursuant to Section 3-122-149, Hawaii Administrative Rules (HAR), relating to multi-term contracts, all prospective Offerors should be aware that funds for services as agreed shall be available for only the initial fiscal year of a multi-term contract. Further, the contractual obligations of both parties in each subsequent fiscal year are subject to the appropriation and availability of funds. A contract will be cancelled when funds are not appropriated or otherwise made available to support continuation of performance in any fiscal year succeeding the initial term of the contract; however, this does not affect either the State’s rights or the Contractor’s rights under any termination clause of the Contract. The Contractor will be notified on a timely basis by the Auditor, as Head of the Purchasing Agency (HOPA), on the availability of funds for the continuation of the Contract for each succeeding fiscal year as required under Section 3-122-149(f)(6), HAR. In the event of cancellation, as noted above, the Contractor will be reimbursed the unamortized, reasonably incurred, nonrecurring costs pursuant to Section 3-122-149(f)(7), HAR. 1. Conduct audits of the financial statements of DHHL for the fiscal years ending June 30, 2024, 2025, and 2026, in accordance with the U.S. Government Accountability Office’s Government Auditing Standards (Government Auditing Standards), in accordance with generally accepted auditing standards as prescribed by the American Institute of Certified Public Accountants (AICPA), and shall include sufficient testing of the financial data to provide the Contractor with a basis to report on the fairness of the financial statements, on the propriety of the expenditures, and on the accuracy of the accounting of all revenues and other receipts to which DHHL is entitled have been collected and accounted for in accordance with the laws, rules, regulations, policies, and procedures of the State of Hawaii, and if applicable, the federal government. The audits shall include all fund types. 2. In connection with the financial audits, the Contractor will consider the internal controls over financial reporting as a basis for designing the Contractor’s audit procedures over accounting of revenues, expenditures, assets, and liabilities. The Contractor shall report and make appropriate recommendations for improvements for any significant deficiencies and material weaknesses identified in DHHL’s financial accounting systems and procedures. 3. Ascertain and report on the adequacy of internal controls over compliance in providing assurance that federal programs are being managed in compliance with the applicable federal laws and regulations. 4. Assist DHHL in the preparation of its financial statements and notes in accordance with the accounting and financial reporting requirements promulgated by the Governmental Accounting Standards Board. In accordance with Government Auditing Standards, DHHL accepts responsibility for the financial statements and notes and is in a position to make informed judgments about them. DHHL shall: a. Designate a qualified management-level individual to be responsible and accountable for overseeing the drafting of the financial statements and notes;
