Audit accuses UH
of mismanaging special funds

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By B.J. Reyes
Associated Press

The University of Hawaii is not using its non-general fund resources efficiently or effectively, according to a report released yesterday that cites numerous instances of mismanagement and some abuses in the oversight of six such special funds.

Among the abuses cited in the report was the use of marine and atmospheric research funds by a dean to pay for a $163-per-person dinner for 10 people that included an executive chef, a sous chef and a waiter.

"The University of Hawaii's mismanagement of its nongeneral funds results in little assurance that the university has an adequate understanding of its overall fiscal condition," stated the report from state Auditor Marion Higa.

University of Hawaii President Evan Dobelle disagreed.

"Most of these issues are systematic and have, in fact, been previously identified internally, and our fiscal staff has been working diligently to address them," Dobelle said in a news release.

Among the findings of Higa's audit:

>> Lax monitoring has led to the inappropriate use of funds in at least two nongeneral funds.

>> The university lacks documented policies and procedures for the use and distribution of its Research and Training Revolving Fund and its Tuition and Fees Special Fund.

>> Outdated procedures may have contributed to the university's inability to provide adequate loans to qualified students from its State Higher Education Loan Fund.

>> The university has disregarded some sound contracting practices by allowing contractors to render services before contracts were fully and properly executed.

The $163-per-person dinner was held to discuss "avenues of funding and cooperative research opportunities ... particularly in the areas of ocean and marine science," according to the audit.

On another occasion, the same dean held an event at his home for about 60 guests and charged the same endowment account for food, beverages and valet parking, the audit said.

The dean, who is not identified in the report, told auditors that the event was held to "foster SOEST (School of Ocean and Earth Science and Technology) marine and atmospheric research projects," the audit said.

However, the audit noted that the valet service invoice designated the event as a Christmas party, and the guest list included local entertainers and a former food editor of a local newspaper.

C. Barry Raleigh, dean of the School of Ocean and Earth Science and Technology, was unavailable for comment.

Responding to the report, James "Wick" Sloane, the university's chief financial officer, said: "Both events were intended to discuss, promote or foster research initiatives and projects in the areas of ocean and marine science. We will re-evaluate the guidelines regarding this fund."