Ka Wai Ola - Office of Hawaiian Affairs, Volume 33, Number 12, 1 Kekemapa 2016 — 2016 UNAUDITED FINANCIAL STATEMENTS [ARTICLE]

2016 UNAUDITED FINANCIAL STATEMENTS

The following financial statements for the fiscalyear beginning July 1, 2015 and ending June 30, 2016 were prepared internally by the Office of Hawaiian Affairs and were not reviewed by any external auditor. OHA makes no representations asto the accuracyofthesefinancial statements. When audited financial statements become available, they will be available online at oha.org.

Office of Hawaiian Affairs | State of Hawai'i STATEMENT OF NET POSITION For the Fiscal Year Ending June 30, 2016 (Dollars in thousands) Governmental Activities ASSETS: Petty cash $ 2 Cash Held in State Treasury 8,047 Held in bank 17,643 Held by investment managers 9,380 Restricted cash 184 Accounts receivable, net 4,740 lnterest and dividends receivable 40 lnventory, prepaid items and other assets 829 Notes receivable, net: Due within one year 2,447 Due after one year 7,276 lnvestments 334,347 Capital assets - net 252,871 Total assets 637,806 DEFERRED OUTFLOWS 0F RESOURCES 2,527 Total assets and deferred outflows of resources $ 640,333 LIABILITIES: Accounts payable and accrued liabilities $ 6,178 Due to State of Hawai'i 3,359 Due to other fund Long-term liabilities: Due within one year 1,564 Due after one year 51,666 Total liabilities 62,767 DEFERREDINFLOWSOFRESOURCES 2,301 Total liabilities and deferred inflows of resources 65,068 COMMITMENTS AND CONTINGENCIES NET POSITION: lnvested in capital assets, net of related debt 225,290 Restricted 27,152 Unrestricted 322,823 Total net position 575,265 Total liabilities, deferred inflows of resources and net position $ 640,333

Office of Hawaiian Affairs | State of Hawai'i STATEMENT 0F ACTIVITIES For the Fiscal Year Ending June 30, 2016 (Dollars in thousands)

GOVERNMENTAL ACTIVITIES: Board of trustees $ 2,722 $ - $ - $ (2,722) Support services 18,582 5,365 - (13,217) Beneficiary advocacy 24,934 - 958 (23,976) *Ho'okele Pono LLC 372 - 249 (123) *Hi'ilei Aloha LLC 5,011 4,417 - (594) Unallocated depreciation 2,299 - - (2,299) Total governmental activities $ 53,920 $ 9,782 $ 1,207 $ (42,931) GENERAL REVENUES: State allotments, net of lapsed appropriations $ 3,218 Public land trust revenue 15,100 Unrestricted contributions 300 lnterest and investment losses (3,760) Nonimposed employee fringe benefits 213 TRANSFERS 320 Total general revenues and transfers 15,391 CHANGE IN NET POSITION (27,540) NET POSITION: Beginning of year 602,805 NET POSITION AT JUNE 30, 2016 _$ 575,265 * Represents results of fiscal year January 1 - December 31, 2015.

Office of Hawaiian Affairs | State of Hawai'i GOVERNMENTAL FUNDS - BALANCE SHEET For the Fiscal Year Ending June 30, 2016 (Dollars in thousands) ASSETS: Petty cash $ -$ 1$ - $ - $ 1$ - $ 2 Cash: Held in State Treasury 636 7,411 - - - - 8,047 Held in bank - 8,559 6,145 34 2,610 295 17,643 Held by investment managers - 1,930 7,450 - - - 9,380 Restricted cash - - 184 - - - 184 Accounts receivable - 4,331 126 95 179 9 4,740 Due from other fund - - - - ... Interest and dividends receivable - 1 39 - - - 40 lnventory, prepaid items and other assets - 80 - 1 149 - 230 Notes receivable: Due within one year - 343 2,104 - - - 2,447 Due after one year - 666 6,610 - - - 7,276 lnvestments - 329,424 4,923 - - - 334,347 Total assets _$ 636 $ 352,746 _$ 27,581 _$ 130_ $ 2,939 $ 304 $ 384,336 LIABILITIES: Accounts payable and accrued liabilities $ 500 $ 5,062 $ 129 $ 23 $ 464 $ - $ 6,178 Due to State of Hawai'i - 3,059 300 - - - 3,359 Due to other fund - - - - ... Total liabilities 500 8,121 429 23 464 - 9,537 COMMITMENTS AND CONTINGENCIES FUND BALANCES: Fund balances: Nonspendable - lnventory, prepaid items & security - 80 - 1 149 - 230 deposits Restricted for: Beneficiary advocacy - - 49 - - - 49 Native Hawaiian loan programs - - 20,619 - - - 20,619 Long-term portion of notes receivable - - 6,610 - - - 6,610 Committed to - DHHL-issued revenue bonds - 38,597 - - - - 38,597 Assigned to: Support services 59 6,836 - - - - 6,895 Beneficiary advocacy 97 3,692 - - - 304 4,093 *Ho'okele Pono LLC ... 106 . . 106 *Hi'ilei Aloha LLC .... 2,326 - 2,326 Long-term portion of notes receivable - 666 - - - - 666 Public Land Trust - 294,754 - - - - 294,754 Unassigned (20) - (126) - - - (146) Total fund balances 136 344,625 27,152 107 2,475 304 374,799 Total liabilities and fund balances _$ 636 $ 352,746 $ 27,581 _$ 130_ $ 2,939 $ 304 $ 384,336 * Represents results of fiscal year January 1 - December 31, 2015.

Office of Hawaiian Affairs | State of Hawai'i GOVERNMENTAL FUNDS - STATEMENT 0F REVENUESr EXPENDITURESr AND CHANGES IN FUND BALANCES For the Fiscal Year Ending June 30, 2016 (Dollars in thousands) REVENUES: Public land trust revenue $ - $ 15,100 $ - $ - $ - $ - $ 15,100 lntergovernmental revenue - - 475 249 - - 724 Appropriations, net of lapses 3,218 - - 3,218 Charges for services - 5,804 - - 4,452 69 10,325 lnterest and investment losses - (3,760) 483 - - - (3,277) Donations and other - 284 16 - - - 300 Non-imposed fringe benefits 213 - - - - - 213 Total revenues 3,431 17,428 974 249 4,452 69 26,603 EXPENDITURES: Board of Trustees 40 2,682 - - - - 2,722 Support services 1,560 17,960 - - - 9 19,529 Beneficiary advocacy 2,101 21,672 1,161 - - - 24,934 *Ho'okele Pono LLC - - - 407 - - 407 *Hi'ilei Aloha LLC .... 4947 . 4947 Total expenditures 3,701 42,314 1,161 407 4,947 9 52,539 OTHER FINANCING (USES) SOURCES: Proceeds from/to debt - 2,203 - - - - 2,203 Net transfers (to) from other funds - 157 (156) 137 656 (474) 320 Net change in fund balance (270) (22,526) (343) (21) 161 (414) (23,413) FUND BALANCES: Beginning of year 40 6 367,151 27,495 128 2,314 718 398,212 End of year $ 136 $ 344,625 $ 27,152 $ 107 $ 2,475 $ 304 $ 374,799 * Represents results of fiscal year January 1 - December 31, 2015.