Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 3, 1 March 1996 — The truth about OHA's asset value [ARTICLE+ILLUSTRATION]

The truth about OHA's asset value

byCIayton Hee OHA chairman, Trustee O'ahu Mrs. Beamer is at it again. Now she is erroneously claiming that OHA's asset value is 300 million doīlars. She is using her inaccurate conclusions to a DAGS ref)ort as the basis for her logic. She has not requested a response or clarification ffom the OHA administration or the OHA auditor, Deloitte and Touche. She has instead seized what she views as an opportunity to onee again ctenegrate the organization she represents. Deputy administrator Sesnita Moepono said,

OHA's December 31, 1995, asset halanee was: 1 . General Fund Appropriations $2, 1 92, 1 22.00; 2. Hawaiian Projects Fund $257,799.00; 3. Special and "Tmst" Fund Appropriations $6,638,752.00; 4. Native Hawaiian RighLs Fund $262,133.00; 5. Mauna 'Ala Repositor> $412,742.00; 6. Native Hawaiian Revolving Loan Fund $3,773,918.00; 7. Housing for Kūpuna at Waimānalo Project $7,817.00;

8. Downpayment Loan Program DHHL $1,024.00; 9. Home Improvement Program DHHL $16,592.00; 10. Loan Program Repayment DHHL $152,713.00; 1 1. Fed Home Loan Bank Grant Program $97,874.00; 12. Petty Cash Fund $5,300.00. 13. OHA Portfolio at Market Value $212,713,021 .00. The total Market Value of OHA's cash assets $226,531,807.00.

"Regardless of what Tmstee Beamer says, the truth is Beamer's conclusions based on the numbers she has used from DAGS are incorrect. At OHA, the account balances we strictly rely on are from our auditor, Deloitte and Touche, and ffom the OHA custodian, First Hawaiian Bank; just as any reasonable person wou!d rely on their auditor for their business asset status and their bank for their accurate Hnaneial statements." Gary Nishikawa, paftner in charge of auditing services for Deloitte and Touche said, "We have audited OHA for 15 years. As far as we are concerned no one knows OHA's asset value better than us. OHA's financial assets are correctly and accurately reported in the OHA Hnaneial statement every year. Regardless of what anyone else says, we stand by our audit report and its aeeu-

racy." I am so confident of Deloitte and Touche and First Hawaiian Bank that at a Board meeting on February 1, 1996, 1 said that if Billie Beamer was correct that OHA had a portfolio value of 300 million dollars I would resign. I further asked Beamer publicly that, assuming she was as confident in her data, if she was wrong would she put her money where her mouth is and resign as well? She indignantly responded, "NO!" That tells me a lot about Beamer.

OHA stands by the audited findings and eonclusions of Deloitte and Touche. The fact is OHA is required by DAGS to report its figures according to a reporting format utilized exclusively by DAGS. Unfortunately, Beamer doesn't understand the format system and never bothered to

eheek itemized reports under the board heading "expenditures." Had Beamer checked with the OHA administrator or accountant for the tmth she would have found that OHA's tme expenditures for 1993-94 was $11,910,124.00 and not $274,260,226.00. Interestingly enough. Bilhe Beamer should be familiar with audits - the fmancial audit of the loan funds of the Department of Hawaiian Home Lands conducted by Main Lafrentz & Co., CPA, for the legislative auditor states on page 1 1 : "Ordinarily, an auditor is able to attest to the reasonable accuracy of an organization's financial statements. However, in the audit of the department's loan funds, Main Lafrentz & Co. was unable to issue an audit opinion on the department's 1977-78 loan fund statements ... it became apparent that the department's accounting and intemal control systems were seriously deficient and the financial records were inaccurate ... " On page 15 of the DFIHL audit they said, "We believe the department has erred in the past by treating the accounting function as an item of low priority ." Guess who ran the Department of Hawaiian Home Lands during the period January 1, 1975 to July 31, 1978? Here'sahint ... her initials are BB!