Ka Wai Ola - Office of Hawaiian Affairs, Volume 40, Number 4, 1 April 2023 — 2023 State Audit of OHA ls the 'Glass Half Empty' or 'Half Full'? [ARTICLE+ILLUSTRATION]

2023 State Audit of OHA ls the 'Glass Half Empty' or 'Half Full'?

Audits ean be a difhcult pill to swallow. However, in the end, they ean prove to be good medicine. Audits are often viewed from differing perspectives. The auditor may view an audit as being an objective and independent assessment while the party being audited may view it as a one-sided account that does not include the full context. Put simply, the auditor may have a 'glass half empty' perspective while the auditee may have a 'glass half full' view-

point. On March 13, 2023, the State of Hawai'i Ofhce of the Auditor published its constitutionally mandated audit of OHA. State Auditor Les Kondo and his team did a thorough job identifying where the glass is 'half-empty.' One issue that the auditor raised was related to the development of OHA's properties at Kaka'ako Makai, now known as Hakuone. I agree with the auditor that the people of our state, both Hawaiian and non-Hawaiian, deserve to see better progress by now. At the same time, I hope the auditor and his team recognize that the glass is also 'half-full' and becoming fuller. OHA has made significant progress over the past several years in overcoming ehallenges whieh kept it ffom being fully productive. Most notably, by implementing prior audit recommendations, OHA has moved away from tolerating 'fraud, waste and abuse' to actively promoting transparency. OHA has also revamped its grants system whieh now provides millions of dollars more to beneficiaries. And OHA has renewed its pursuit of developing land resources to serve Hawaiians, such as Hakuone at Kaka'ako Makai. Here are some examples of the 'glass half full' and the glass half empty' contrasts. Real Estate Strategy 'Half Empty': The state auditor reported that OHA expanded its land portfolio without adopting a Real Estate Strategy. 'Half Full': Actually, OHA expanded its land portfolio by adhering to OHA's strategic plan Mana i Mauli Ola and OHA's Real Estate Vision, Mission, and

Strategy Policy. While OHA acknowledges that these documents need formalizing, the policy framework for a real estate strategy does exist and is being used by Trustees to guide their decision-making. Laek of Development at Kaka'ako Makai 'Half Empty': The state auditor claimed that OHA is not close to developing its properties at Kaka'ako Makai and was unfamiliar with OHA's forma-

tion of a "special committee" related to these parcels. 'Half Full': Actually, OHA's Trustees inherited the Kaka'ako Makai development project from previous boards and administrations. Since then, OHA has been proactively lobbying the legislature to lift residential restrictions. In addition, the "special committee" that the auditor claims to be unaware of was a Permitted Interaction Group (PIG) formed in 2021 for the purpose of investigating the development of policies and strategies related to its Kaka'ako Makai parcels. Classification of Legacy Lands 'Half Empty': The state auditor had concerns over the stewardship agreements related to OHA's legacy lands, particularly Waimea Valley (i.e., Waimea Falls). 'Half Full': OHA operates as a partner with other stakeholders who assert various rights to the properties. As to Waimea Falls, it is actually not a legacy property, but a commercial venture of whieh OHA is one member of the group that manages the venture. So, is the glass half empty' or is the glass half full ? The answer depends on whether you are looking at a snapshot of the past or at what has happened since then and going forward. The state audit is a valuable tool to assist OHA in serving our beneficiaries. But a complete picture should also look at the progress OHA has made in recent years. E hana kākou! Let's work together! ■

Keli'i Akina, Ph.D. Trustee, At-large