More than a quarter of the special, revolving, and trust funds maintained by the University of Hawaii — including the Athletics Special Fund — do not meet legislative criteria and should be repealed or reclassified, a state audit released Tuesday concluded.

The Auditor’s Office reviewed 65 special funds, revolving funds, trust funds and trust accounts, which collectively had year-end balances totaling at least $266 million in the past five fiscal years.

Seventeen of the funds and accounts do not meet the basic criteria for such funds, including funds that no longer serve their original purpose, have no clear nexus between benefits and charges, or are not financially self-sustaining, the report said.

“We do not assess the effectiveness of programs and their management,” the 67-page report said. “However … we do conclude on the fund’s necessity based on the purpose and scope of the program it supports, and whether the program can be implemented successfully under the general fund appropriation process.”

One of the funds recommended for repeal is the UH-Manoa Intercollegiate Athletics Special Fund, which had a negative balance of $15.35 million at the end of fiscal 2014. The fund is used to account for revenues and expenditures associated with the 21-team athletics programs.

“This fund is not self-sustaining as it has reported deficit ending balances since (fiscal year) 2002. 

Therefore, the fund does not meet the criteria for a special fund and should be repealed,” the report said.

In its formal response, UH said that while the financial sustainability of the athletics fund is of “vital concern,” it is essential for operating the athletics program. 

Other findings include:

>> UH did not report all funds as required by law. (“Fifteen of the 65 funds and trust accounts we reviewed were not reported to the Legislature.”)

>> UH is not reporting administratively created funds. (“These informational gaps hinder the Legislature’s ability to monitor non-general funds.”)

>> UH receives general fund appropriations for programs also supported by special and revolving funds.

In its response, UH agreed with the recommendations to repeal six funds, reclassify three others, and discontinue the use of two others (the Hurricane Iniki Insurance Proceeds special fund and the Unrestricted Quasi-Endowment Income and Scholarship Revolving Fund). It disagreed with the recommendations to repeal six other funds.

“After reviewing UH’s response, we maintain our analyses are appropriate and stand by our conclusions,” the audit said.

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Online: http://files.hawaii.gov/auditor/Reports/2014/14-18.pdf