OHA slashes trustees’ allowance

The Office of Hawaiian Affairs Board of Trustees on Thursday cut the $22,200 annual allowance for each trustee by two-thirds and placed other limitations on the funds.

The revisions to OHA’s Trustee Protocol Allowance, approved on an 8-0 vote with Trustee Robert Lindsey excused, follow a 2018 state auditor’s report that was highly critical of the program. The auditor’s report said “rules governing trustee allowances are broad and arbitrarily enforced, leading to many instances of questionable spending.”

OHA Chairwoman Colette Machado said the new rules demonstrate the trustees’ commitment to working together “in the spirit of lokahi (unity) to implement meaningful internal changes to better fulfill our fiduciary duties and meet the needs of our beneficiaries.”

The revisions were first adopted by an ad hoc committee of the board that reviewed existing OHA policies, external guidelines, policies of other elected bodies, trustee fiduciary duties, the state Ethics Code and audits of OHA and of other governing bodies.

Key amendments will:

>> Reduce the annual per-trustee allocation from $22,200 to $7,200 — the funding level prior to the enactment of policy amendments in 2013.

>> Make the allowance a reimbursable fund requiring trustees to pay for expenses with their own money and then get reimbursed.

>> Establish an appeals process when the administration refuses to reimburse an expense.

>> Require the posting on OHA’s website of quarterly expenditure reports by each trustee.

The amendments also specify permissible and impermissible expenses. Trustees cannot use the money for alcoholic beverages, political or charitable contributions, expenses related to campaign activities, gifts, personal expenses and airline club memberships.

It is also impermissible to spend the allowance on food or beverages purchased to thank or appreciate staff or for social occasions or events, such as birthday celebrations, farewell parties or retirement parties.

In February former Trustee Rowena Akana was fined $23,000 by the state Ethics Commission for 47 ethics violations, some of which are noted on the list of unpermitted expenses. Akana’s attorney said the ruling would be appealed.

Thursday’s action lifts the allowance spending freeze implemented by the board following the audit in February 2018. Trustees will have access to the pared down fund beginning in July.