An annual audit of the city's 2008 fiscal year released last week shows no material weaknesses in the city's financial reporting.

However, the audit, conducted by N&K CPAs Inc., did pick up several errors, including listing the purchase price of a pickup truck at $3,524,813 instead of $35,248. The error was caused by an incorrect manual entry, according to the audit. The city did not overpay for the truck except on paper.

"The auditor looked for exceptions and they might have caught it (the truck price) because it stood out," City Auditor Les Tanaka said. "They may have just caught it because it was such a large amount."

Other errors discovered in the audit include:

• Depreciation expenses for two sewer projects were understated by a total of $3.48 million.

• Capital assets were overstated by about $234,000 because new equipment additions were duplicates of previously acquired assets.

• Capital assets for the Sewer Fund were understated and repairs and maintenance expenses were overstated.

Some of the problems stem from a conversion to a new accounting system, Tanaka said.

"When they transferred some of the numbers sometimes the numbers didn't come over really accurately," he said. "Hopefully, in the next financial audit, these kind of errors will be corrected."

The audit recommends the city take several steps to improve its procedures for recording capital assets.

"Accuracy is important," Tanaka said. They've got to be as accurate as necessary."

Rix Maurer III, director of Honolulu's Department of Budget and Fiscal Services, was unavailable for comment yesterday.

According to the audit, the city has identified and addressed each of the specific issues raised and is in the process of centralizing and streamlining the recordkeeping of capital assets.