Posted on: Saturday, April 23, 2005

UH at risk of losing millions in federal grants

By Beverly Creamer
Advertiser Education Writer

The University of Hawaii's external auditor warned regents yesterday the school is at risk of losing millions of dollars because officials have failed to comply in a timely manner with federal requirements for the $283 million in research grants awarded last year.

Funds in jeopardy are those affecting 80 percent of the grant payrolls, according to Jim Gaines, interim vice president for research.

But Gaines said that problems will be solved in the next 90 days as necessary paperwork is filed.

"I don't want to excuse it but every university is under the same problem," he said.

Also, the auditor said UH failed to comply in a timely manner on federal Pell grants.

Doris Ching, vice president for student affairs for the UH system, said "there's a threat" of losing $25.5 million in financial aid funding because of the failure to follow through promptly.

Ching blamed the problems on a lack of staffing in the financial aid office, a lack of automation as the Banner student information system was being installed, and a lack of coordination between offices.

"We will lose funds if we don't come through with this," she warned.

Regents expressed concern about the issues that regent vice chairwoman Kitty Lagareta said go back to president Evan Dobelle's tenure as UH president. And she said she wanted to see the problems resolved.

Regent Byron Bender noted that this is the second year there's been a failure to send information in on time about who is being paid with each grant.

"This is a repeat finding, meaning a year ago, this problem existed," said Bender.

The auditor noted that one of the problems is the UH infrastructure support to handle grants hasn't grown as the volume of grants has increased.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.