Reid Ginoza at 03:02, 5 June 2006

2006-06-05T03:02:52Z

Reid Ginoza at 02:59, 11 March 2006

2006-03-11T02:59:36Z

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2. In addition, we recommend that
the issue of whether native Hawaiian
ranchers can award grazing permits to
non-native Hawaiians be resolved.
3. Financial Management and
Reporting
Improvements are needed in the
financial management and reporting
systems to provide for the
maximization of revenues as well as
providing DHHL with the means of
making sound management decisions and
for providing accurate and timely
reporting on the discharge of its
trust responsibilities. Our review
disclosed that cash management has
been ineffective, complete financial
statements were not prepared, the
accounting system was unauditable, and
the required annual report was not
based entirely on accurate and
supported data.
Cash Management
DHHL has not maximized income by
analyzing current cash needs and
investing all cash excess to current
needs into revenue-producing
investments. We estimate that DHHL
lost in excess of $100,000 of interest
revenue for the 9 months ending
February 28, 1982, from uninvested
cash of just one DHHL fund and another
$180,000 from three other funds.
The Hawaii Department of Budget and
Finance invests "excess" cash in time
certificates of deposit when so
requested by the DHHL f i s c a l officer.
These investments are authorized by
Section 225 of the Act. Section 225
also specifies the DHHL fund accounts
to which the interest revenues are to
be credited. The certificates of
deposit can be purchased'for periods
as short as 30 days in the amount of
$100,000 or more. During the 9 months
ending February 28, 1982, the rate of
return has varied on such c e r t i f i c a t es
393
from about 10.5 percent to 16.2
percent.
We reviewed the cash balances of
the Hawaiian Home Development Fund for
the 9 months ending February 28, 1982.
During this period, the development
fund had an average uninvested cash
balance of about $1.2 million.
Investments were made in only 2 out of
these 9 months. In our opinion, the
uninvested cash balance was greatly in
excess of current operating needs,
especially considering that revenues
exceeded expenditures during the
9-month period. We estimate that DHHL
could have generated additional
revenues of over $100,000 by investing
the development fund cash that was
excess to immediate needs.
We also reviewed the cash balances
for the Hawaiian Home Administration
Account, the Hawaiian Home General
Loan Fund, and the Native Hawaiian
Rehabilitation Fund. The average
uninvested cash balances in these
three funds totaled about $2 million
for the 9 months ending February 28,
1982. If this money was fully
invested, we estimate that DHHL could
have generated additional revenues of
about $180,000.
We did not attempt to determine the
total amount of interest for all DHHL
fund accounts, nor did we determine
how lonq this situation existed. But
-
we believe that inadequate cash
management is a major problem, since
DHHL must rely largely on internallygenerated
monies to fund its
programs.
We believe this problem exists
because aggressive cash management has
not been stressed as a high priority
by the Commission. We also believe
that the lack of adequate financial
statements as discussed below may have
caused the Commission to be unaware of
the situation.

@@ Line 3: / Line 3: @@
 ranchers can award grazing permits to
 non-native Hawaiians be resolved.
 . Financial Management and
-Reporting
+====3. Financial Management and Reporting====
 Improvements are needed in the
 financial management and reporting
@@ Line 21: / Line 22: @@
 based entirely on accurate and
 supported data.
 Cash Management
 DHHL has not maximized income by
 analyzing current cash needs and
@@ Line 32: / Line 34: @@
 cash of just one DHHL fund and another
 $180,000 from three other funds.
 The Hawaii Department of Budget and
 Finance invests "excess" cash in time
 certificates of deposit when so
-requested by the DHHL f i s c a l officer.
+requested by the DHHL fiscal officer.
 These investments are authorized by
 Section 225 of the Act. Section 225
@@ Line 45: / Line 48: @@
 $100,000 or more. During the 9 months
 ending February 28, 1982, the rate of
-return has varied on such c e r t i f i c a t es
+return has varied on such certificates
 from about 10.5 percent to 16.2
 percent.
 We reviewed the cash balances of
 the Hawaiian Home Development Fund for
@@ Line 66: / Line 69: @@
 the development fund cash that was
 excess to immediate needs.
 We also reviewed the cash balances
 for the Hawaiian Home Administration
@@ Line 78: / Line 82: @@
 have generated additional revenues of
 about $180,000.
 We did not attempt to determine the
 total amount of interest for all DHHL
 fund accounts, nor did we determine
-how lonq this situation existed. But
+how long this situation existed. But
 we believe that inadequate cash
 management is a major problem, since
@@ Line 88: / Line 92: @@
 monies to fund its
 programs.
 We believe this problem exists
 because aggressive cash management has
@@ Line 96: / Line 101: @@
 caused the Commission to be unaware of
 the situation.

Template:Nhsc-v1-393 - Revision history

Reid Ginoza at 03:02, 5 June 2006

Reid Ginoza at 02:59, 11 March 2006