Ka Wai Ola - Office of Hawaiian Affairs, Volume 14, Number 4, 1 April 1997 — State auditor report: OHA invests beneficiary money wisely [ARTICLE]

State auditor report: OHA invests beneficiary money wisely

by Deborah L. Ward Ajust-completed state legislative auditor's report has concluded that the Office of Hawaiian Affairs has mueh to be proud of in its handling of long-term investments and has established a foundation of sound investment policy and investment

management." The legislative audit states, "OHA's long-term investment policy has significantly improved, and its present investment strategy (investing longterm assets in a diversified eombination of equity and fixed ineome securities and reinvesting the dividends and interest payments received from those investments) is reasonable for the time being." OHA has more than $245 million in cash and investments. The 59-page audit just eompleted was intended to describe and assess OHA's management controls over its programs, its cash and short-term investments, and its long-term invest- • ments. The audit concludes that

OHA should build on its investments, and plan strategically to link investments to programs whieh better conditions for Hawaiians. It called for OHA to develop a comprehensive strategic plan for the use of its long-term investments, including specific strategies for assisting native Hawaiians, and decisions on whieh long-term programs will be supported.

OHA Chairman Clayton Hee said, "We take seriously our commitment to strengthening this , financial competence and soundness as these are 1 critical prerequisites for achieving future goals and objectives." Under Chapter 10, Hawai'i Revised Statutes, OHA is the principal public agency in the state responsible for the performance, development and coordination of programs

,, and activities relating to natave Hawaiians and Hawaiians, except for programs administered by the Department of Hawaiian Home Lands. OHA was established under the state constitution as a corporate body and self-governing agency sepa- ' rate from the executive branch, whose mission is to better the i conditions of all persons of Hawaiian ancestry. State law requires the audi- 1 tor to conduct an audit of OHA at least onee every four years. , Previous audit reports were issued in December 1993 and in ■ February 1990. The auditor also , noted that "OHA needs better 1 working relationships and clear- .. er directions for its programs." The report said OHA's trustees <

and statl need to rise above internai discontent and discord that could compromise OHA's mis- , sion, and move ahead to meet challenges in pro- 1 gram planning, monitoring, evaluation and budgeting." The legislative audit contains detailed recommendations for improving OHA's working relationships and providing program direction.

"We take seriously our connmitment to strengthening this financial competence and soundness as these are critical prerequisites for achieving future goals and objectives." — Clayton Hee