Independent financial auditors have once again designated the City and County of Honolulu as a "low-risk auditee" -- 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.