By Yasmin Anwar
Advertiser Staff Writer
A state audit of the Office of Hawaiian Affairs released today criticizes the agency for poor planning, mismanagement, inadequate oversight of grants and loan programs and a hasty reorganization of administrative staff.
The report applauds the current OHA board’s willingness to address the audit’s recommendations, but cautions trustees against continuing the past practice of resorting to internal discontent, suspicion and discord.
“If the Office of Hawaiian Affairs fails to improve within a reasonable time period, the Legislature may need to consider options to increase its oversight of the agency,” according to the the 35-page report.
OHA chairwoman Haunani Apoliona said harsh external scrutiny of the agency had helped establish a roadmap for trustees, who are charged with setting policy and approving expenditures.
“We’re going to make the corrections and move forward,” she said.
State auditor Marion Higa’s latest report on the 21-year-old state agency charged with bettering conditions of Hawaiians said OHA had much work ahead to fulfull its fiduciary and trust obligations.
According to a summary of its findings, the report says:
 Trustees have failed adequately to plan to improve the conditions of Native Hawaiians and Hawaiians.
Trustees failed to uphold their fiduciary duties and ineffectively managed nearly $345 million in public land trust funds.
Inadequate oversight of the OHA grants program and Native Hawaiian Revolving Loan Funds allows for waste and misuse of money.
Hasty reorganization of the administrator’s staff has led to an organizational crisis demanding the trustees’ immediate attention.
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