Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 4, 1 April 1996 — Explanation of OHA expenditures [ARTICLE]

Explanation of OHA expenditures

There have heen conflicting statements made in the past several months as to the size of the OHA trust and trust expenditures. Specifically , controversy has resulted from a DAGS expenditure report that indicated that in FY 94, OHA had expenditures of $274.2* million. It is important that there is an accurate understanding of what moneys OHA has and how funds are being spent. Thefollowing is a summary prepared by OHA administration to explain numbers recorded in the DAGS report.

OHA is required to report on funds held outside the state Treasury to the Department of Accounting and General Services. DAGS requires OHA to record all expenditures and movement of money outside the state Treasury in a eolumn entitled "expenditures," even if these amounts are not actually expended. For, example, in OHA's settlement from the state in 1993, accounting of this money was reported twice, onee as $124,392,252.09, when it was invested by the investment managers, and second as $125.079,945.59 for a nonrecurring correc-

tion. So the figures are reports of movement of the same money, not actual expenditures. In addition, every time a money manager purchases a stock or bond, that amount is recorded in this eolumn, so in effect, there is multiple counting of the same money. DAGS says this is because their accounting system has no other eolumn to handle this movement of money. OHA's real expenditure for FY 94 was $11,910,124, whieh is reported in OHA's annual external audit for that period.

Expenditure report The $265,914,254.30 fig- Expenditures ure on line three represents the investment of $ 21,623.04 $124,392,252.09 and the $170,448.74 one-time correction of $ 265,914,254.30 $125,079,945.59 whieh $266,106,326.06 includes some payments for investments. Also included $ 6,799.37 in the figure are: fees for $ 476,224.72 professional services $ 4,970,789.88 $320.39; funds movement $ 5,453,813.97 $6,967,000; payments for investments $1,063,766.02; $ and actual expenditures $ 2,700,086.09 $8,410,969.88. $2,700,086.09 The other numbers listed represent actual expendi- 274,260,226.14 tures and loans disbursed.