Y2K celebration report still due
By Katherine Nichols
Advertiser Staff Writer
More than a year after its job ended, the Hawai'i Millennium Commission has not yet filed a required report with the Hawai'i Tourism Authority explaining how it spent the $750,000 it received.
The commission received the money from the authority in late 1999 to put on a New Year's Eve bash and promote tourism to Hawai'i throughout 2000.
The commission, co-chaired by former Gov. John Waihe'e, hoped to bring 100,000 additional visitors to the state that year.
The commission's first act — the $114,000 New Year's Eve party that included a youth dance attracting 12,000 people, a rising pineapple in Waikiki and a laser-light show that was largely obscured by smoke from fireworks — fell short of some expectations. Altogether, the commission said it sponsored 167 events.
The commission's failure to file a report to the authority came to light last week after questioning about authority expenditures listed in a recent state auditor's report and about the authority's accountability for the $61 million in tourism marketing money that it oversees.
At a Senate hearing, Sen. Donna Mercado Kim, D-15th (Kalihi Valley, 'Aiea), chairwoman of the Tourism and Intergovernmental Affairs Committee, asked the authority for a copy of the millennium commission's report.
Rick Humphreys, interim chief executive of the tourism authority, said he was unaware of the millennium commission, which finished its work before he took his voluntary position at the authority. At a subsequent meeting of the tourism authority, he scolded board members for not keeping track of such details.
These are the "ridiculous things" that an audit will pick up, he said. "They make you look like an idiot because you haven't done it."
The commission's staff disbanded early in 2001, after the end of the observance. Lynn Madden, who voluntarily co-chaired the commission with Waihe'e, said the 24-page report was finished a year ago but has been delayed in its design and layout stages for the past 12 months.
The commission said it plans to file the report as soon as it's printed.
"It was a great year, and I think (the report) will show that," said Waihe'e. "We contributed to what turned out to be a boomer year for tourism in Hawai'i."
In a draft copy of the report, the commission said it succeeded in developing a new niche market in tourism by targeting former Island residents and return visitors with the "Hawai'i Come Home" campaign, creating a year-long celebration in the Islands and establishing a foundation for Hawai'i's youth called the Ke Au Hou Fund.
The report also lists expenditures for the year, including $14,705 for "administrative and miscellaneous" and $248,823 for "general" that included payment for the commission's office lease at Victoria Ward Ltd., utilities and approximately two paid staff members.
Sue Berg, the literary services manager in the Native Hawaiian Library at Alu Like, was paid $74,722 for serving as executive director of the commission, according to documents. Lei Fukuhara, the other paid staff member, received about $38,000 over a six-month period.
Rep. Jerry Chang, D-2nd (S. Hilo), chairman of the House Tourism and Culture Committee, said the responsibility for obtaining reports such as the commission's should fall to the tourism authority's paid 18-member staff.
"The board is voluntary," Chang said. "The staff is responsible for keeping up with what is happening, with what is due." And, he added, "We shouldn't be reminding them."
Lloyd Unebasami, chief administrative officer at the tourism authority, said in a later interview that the authority staff had asked the Millennium Commission repeatedly for the report.
"It's really unfortunate that their paid staff left," said Unebasami, referring to why the report had not been submitted. Unebasami said the length of the delay associated with the commission's report is not typical for organizations that are granted money from the authority. But he noted that many small groups struggle to hold their events and complete their reports in a timely manner.
Most contracts end one month after the event, which means the report must be filed by that time for the organization to collect the remaining 10 to 25 percent of the money, which is withheld until the report is received — except in the case of the Hawai'i Millennium Commission.
Such groups typically ask for one-month extensions, he said. In response, the authority usually grants a three-month extension to save on administrative costs. According to Unebasami, this occurs less than 10 percent of the time.
Another general concern associated with the reports is the limited information they offer.
To solve this problem, said Unebasami, report policies are continually evolving.
In the future, Humphreys said he will ask recipients of money from the authority to provide more detailed reports that include how many people attended, if relevant, what was accomplished, and new surveys to identify how many people actually came to Hawai'i for the event.
