The Office of Hawaiian Affairs and its trustees have engaged in inappropriate spending of millions of dollars over a two-year period, the state Auditor said today.

An audit of the agency, formally released today, indicated that some of OHA’s expenditures and discretionary spending do not undergo the rigorous vetting, monitoring and reporting requirements of OHA’s formal grant process, and other expenditures are approved by OHA’s administration without Board of Trustee vote or even knowledge.

During fiscal year 2015 and 2016, OHA spent nearly double as much on discretionary disbursements — $14 million — as it did on planned, budgeted and properly vetted and monitored grants — $7.7 million, according to the audit, and to fund the unplanned expenditures, OHA adjusted its budget by $8 million and drew from its reserves to cover most of it.

OHA Chairperson Colette Machado vowed today to do better and proposed to implement new spending controls.

Audit of the Office of Hawaiian Affairs by Honolulu Star-Advertiser on Scribd