Ka Wai Ola - Office of Hawaiian Affairs, Volume 35, Number 5, 1 May 2018 — OHA doubles its fiscal reserve [ARTICLE]

OHA doubles its fiscal reserve

By Sterling Wong OHA's net assets increased by more than $26 million and the agency's fiscal reserve more than doubled to $4.2 million during fiscal year 2017, according to a recently eompleted independent audit. At the close of the fiscal year, OHA's total net position stood at $600,726,145, with the Native Hawaiian Trust Fund accounting for $370,321,707 and the agency's capital assets, including land and buildings, amounting to $250,931,473. The gain in OHA's total net position was primarily due to increased revenue

from interest and investment earnings. The audit was one of two that are conducted annually by independent auditors. This year, N&K CPAs, ine., performed the audits. The first audit report is intended to provide an opinion on whether OHA's financial statements were prepared in accordance with generally accepted accounting principles (GAAP). In this audit, the auditor reviewed OHA's reported balances and internal controls to determine any material misstatements or control weaknesses that would qualify their opinion that the agency's financials fairly represent the linaneial condition of the organization. The audit found no major findings or exceptions, and this is the

seventh consecutive year that OHA's financial statements received an "unqualified" or "elean" opinion. The second report was conducted to audit eomplianee for eaeh major federal program administered by OHA and was also completed with no major audit findings or exceptions. OHA administers three federally funded programs: • the Native Hawaiian Revolving Loan Fund, whieh provides business loans; • the Hālawa Luluku Interpretive Development, whieh was created largely to mitigate any adverse impact resulting from the construction of the H-3 Highway; and • a Brownfield Assessment Grant, whieh is intended to perform environmental assessments for several of OHA's Kaka'ako Makai properties. ■