Maui County's Budget, Finance, and Economic Development Committee meeting on July 1, 2025, spotlighted critical findings from the latest audit report, revealing both strengths and weaknesses in the county's financial management. The audit, which received an unmodified opinion—the highest possible rating—also highlighted several areas needing improvement.

Key among the findings was a significant deficiency related to the preparation of the schedule of expenditures for federal awards, particularly concerning the coronavirus state and local fiscal recovery funds. This issue resulted in a $10 million increase in reported expenditures due to new reporting requirements. Additionally, various financial reporting errors were identified, including issues with fiduciary funds and deferred inflows, although management has since corrected these discrepancies.

The committee also discussed the county's ongoing challenges with the transient accommodations tax (TAT), noting that the county has fallen behind in collecting these taxes. This issue underscores the need for improved policies and procedures, especially as the county continues to develop its approach to managing these transactions.

Despite these challenges, the county's corrective action plan, prepared in response to the audit findings, aims to address the identified issues. The committee's discussions emphasized the importance of compliance and monitoring, particularly regarding subrecipients of federal funds, where lapses in required documentation were noted.

As the meeting concluded, members were encouraged to ask questions, reflecting a commitment to transparency and accountability in Maui County's financial practices. The outcomes of this audit and the subsequent actions taken will be crucial for the county's financial health moving forward.