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County auditor says annual financial audit contract, performance plan moving forward; flags ACFAR cost risks
Summary
County Auditor Tyler Benner told the council his office filed the required annual audit plan, will host a peer review and has a five-year contract for the county's annual financial audit, but warned ACFAR (comprehensive financial report) work could require extra funding due to audit complexity and recent administrative turnover.
HILO — The County Auditor told the County Council on May 20 that the office has filed its mandatory annual audit plan, will host an external peer review, and has executed a multiyear contract for the county’s annual financial audit — while flagging near-term risks and possible extra costs related to the county’s Comprehensive Annual Financial Report (CAFR).
Tyler Benner, who heads the Office of the County Auditor, said the office completed its countywide risk-survey process and transmitted the 2025 annual audit plan as required by the county charter. The office also awarded a five-year contract to a certified public accounting firm (QED LLP) to perform the county’s independent annual financial audit and related procedures.
Benner warned council members that the county’s CAFR process continues to face both short-term and systemic challenges, including turnover in the finance director and controller positions and an ongoing accounting system implementation; those transitions, he said, have complicated the county’s ability to meet normal reporting timelines and have increased audit costs. Benner told the council the auditor’s office had advised the council on Feb. 18 that additional CAFR-related costs and schedule delays were possible.
To manage expectations, Benner said the auditor’s office had budgeted a baseline of approximately $385,000 for the annual financial audit and recommended an encumbrance option that could rise to about $475,000 if additional reports are required — capturing possible extra program audits or additional audit steps. He said unspent audit funds would be returned to the general fund if not needed.
Benner described other work priorities: operating the fraud/waste/abuse hotline, completing performance and financial audit reports on a schedule aligned with government auditing standards, and hosting a required external peer review to confirm the office’s compliance with government auditing standards and training requirements. He said staff vacancies remain a focus and that the office was actively recruiting to fill analyst roles.
Why this matters: Counties must maintain timely, high-quality financial audits to secure federal and state funds, inform bond markets and give the public confidence. Auditor Benner’s notice about potential CAFR costs and schedule risk signals a budget item council members may need to consider as part of the FY26 budget conversation.
Looking ahead: Benner said the auditor’s office will continue to monitor the CAFR timeline, work with Finance to scope any additional audit steps and return in May with more detailed cost projections for the CAFR process if needed.
