Ka Wai Ola - Office of Hawaiian Affairs, Volume 3, Number 8, 1 August 1986 — Accounting Firm Named for Management Audit [ARTICLE]

Accounting Firm Named for Management Audit

Office of Hawaiian Affairs Board Chairman Rockne C. Freitas announced that a contract was signed July 22 with the international accounting firm of Arthur Young and Company to conduct a comprehensive management audit of the agency. Freitas said implementation of the audit was one of his prime goals when he assumed the OHA chairmanship in February of this year. The full Board of Trustees unanimously supported the concept and appropriated funds to conduct the audit at its March meeting on the island of Molokai. This first-time review of OHA's operations and programs is in addition to the agency's regular annualfinaneial audit conducted by Deloitte Haskins and Sells. Management audit specifications were drawn after samples were provided by the State legislative auditor's office. Three highlyqualified firms bid on the project and Arthur Young and Company was selected after submitting the winning bid of $47,461. The firm's Honolulu office has completed audits and provided financial assist-

anee to a variety of private firms as well as government agencies in Hawaii. These include the Department of Accounting and General Services, Legislative Auditor, Hawaii Housing Authority, Department of Agriculture, Department of Transportation and the University of Hawaii. The audit is expected to begin later this month. A final report will be submitted around the end of October. In its broadest scope, the management audit will cover all current operations, from organizational structure to staffing policies and individual programs. Specifically the audit will provide a comprehensive review of: • The structure and organization of OHA, including the Board of Trustees. • Policies and their effectiveness in meeting OHA's objectives. • Operations and management including evaluation and appraisal of control systems. • Program effectiveness.

In addition, the project includes reviewing the programs of other agencies and organizations to identify missing, weak and duplicative functions with those provided by OHA. Program objectives of the management audit are to: • Determine whether the structure, organization and policies of OHA promote the efficient and effective attainment of the program's objectives. • Determine whether all programs of OHA are efficiently, effectively and adequately implemented and operated. • Evaluate the program's effectiveness in attaining its objectives. • Determine the adequacy with whieh OHA's programs have been effectively and efficiently implemented. Chairman Freitas said he is looking forward to building a stronger and more effective agency based on the audit recommendations.