Template:Nhsc-v1-378

Despite t h i s stepped-up effort, we estimate it will take over 50 years and over $600 million to s a t i s f y the applicants on the present e l i g i b i l i ty l i s t s . a. The r e s i d e n t i a l homestead program accomplishments were r e s t r i c t e d by a v a i l a b i l i t y of funds. The r e s i d e n t i a l program is under a subdivision concept with DHHL providing s i te improvements, such as roads, u t i l i t i e s , and other f a c i l i t i e s at no cost to the homesteader. In addition, DHHL provides financing at favorable i n t e r e s t rates for home construction and repairs because homesteaders are not normally able to obtain conventional financing. b. The farm and ranch homesteading program to encourage native Hawaiians to take up farming as a means to achieve social and economic well-being has not been a success. While there are some successful ranchers and farmers, over 60 percent of the awarded farm t r a c t s are not in full c u l t i v a t i o n , including 42 percent that are not under any c u l t i v a t i o n at a l l . It i s estimated that at least 34 percent of the homestead ranch lots are subleased by the homesteaders to others for grazing. According to some native Hawaiians the sublessees include individuals who are not native Hawaiians. By 1951, 5,800 acres of the 7,619 farm acres awarded to homesteaders were subleased to pineapple companies under contracts negotiated prior to Statehood. The homesteaders, thus, were not farmers but landlords. The pineapple companies involved discontinued operation on these lands in 1975-1978 and much of the land is unused. 3. Complete financial statements for a l l cf DHHL's funds are not being prepared. As a r e s u l t , the financial data reported to the Commission and included in the annual report does not provide information necessary to assess management's performance of its t r u s t e e r e s p o n s i b i l i t y . A complete financial audit of all funds which include over $32 million in loan and accounts receivable and $10 million in cash as of February 28, 1982, has not been performed for periods subsequent to 1972. Also, cash management has not been e f f e c t i v e . DHHL maintained large cash reserves in noninterest bearing accounts during a 9-month period ending February 28, 1982. For example, we estimate that an average cash balance of $1,250,000 per month for the Hawaiian Development fund was not in i n t e r e s t bearing investments and, based on the average rate of return, we estimate that over $100,000 in i n t e r e s t was not earned that would have provided additional funds for the purposes of the Act. We noted cash balances at the end of each month for three other funds averaged about $2 million for the 9-month period, and conclude that s u b s t a n t i a l amounts of additional i n t e r e s t could have been earned on these and other funds that were excess to needs. 378