The Office of Hawaiian Affairs has not managed its information functions well and should hire a chief information officer to improve the situation, state Auditor Marion Higa said.

On the other hand, Higa said, compared with four years ago the agency is "a much more stable and functional organization that is focused on its strategic mission." The exception, she said, was management of the agency's information systems.

OHA, in its response, said it is "generally satisfied" with the report's findings and supports Higa's recommendations.

The focus of the management audit was on information technology. A separate study being conducted on OHA's investment strategies is expected to be out later this summer, Higa said.

The report, issued Monday, found that major information technology components were "dispersed throughout OHA without focused oversight and coordination."

A strong, centralized information technology authority is necessary, the report said. "Without such guidance, OHA faces an increased risk of wasted time and resources as well as the inability to react quickly and effectively to information requirements posed by the changing needs of the organization," the audit said.

Higa pointed out that in contracting out the Kau Inoa program designed to create a registry of Native Hawaiians, "OHA did not consider the risks involved in lodging custody of personal information to an external entity," the auditor said.

While the program has not run into security problems, it was a situation that deserved stronger upper management guidance, Higa said.

She pointed out that OHA is not the only segment of the state government that should be more focused on managing information technology. A recent audit of the Lingle administration came to the same conclusion and suggested that state Comptroller Russ Saito has too many other duties to also be the chief information officer.

OHA officials said they are in the midst of a six-year strategic planning process.

"During this initial phase, it became very clear that OHA needs to be a culturally sensitive, data driven organization and has recognized the need for information systems to be managed at a strategic level," OHA said in its written response to the audit's findings.

The agency intends to complete the strategic plan by the end of the year with Higa's recommendations. In a press release, OHA officials said they are pleased Higa found an improved atmosphere at the agency.