An audit of the Office of Hawaiian Affairs says the agency needs to improve management of real estate holdings and do a better job of monitoring grants it awards.

The audit released Wednesday by Acting State Auditor Jan Yamane says OHA needs a better investment policy to keep up with a rapid growth in its real estate portfolio. The audit notes OHA is Hawaii’s 13th largest landowner.

As an example, the audit found that the $21.4 million purchase of the Gentry Pacific Design Center violated a policy on conflict of interest.

The audit also examined 30 grants and found recipients weren’t monitored to ensure they continued to comply with grant eligibility requirements.

OHA’s response says it will improve land and grant policies but disagrees with the audit’s Gentry acquisition finding.