Audit Faults University of Hawaii’s Use of Certain Funding Sources
UH agreed with many recommendations, but disputed the state auditor’s call to repeal six of the 65 funds reviewed.
The state auditor’s office, led by Jan Yamane, has聽found that 17 of 65 funding sources for the University of Hawaii聽have at least one thing wrong with them and some should be repealed altogether because they no longer serve their original purpose.
The auditor’s 74-page report, released Tuesday, offers聽a聽look at聽UH’s special, revolving and trust funds and trust accounts. Together, the funds聽collected聽more than $641 million last year and spent or transferred almost $637 million. The report shows an ending balance of almost $267 million as of June 30.
The audit raises questions about the university supplementing at least 10聽revolving and special funds with general fund money.
The state auditor has reviewed 65 funding sources for the University of Hawaii.
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For instance, the report notes that the Student Health Center Revolving Fund reported fiscal year ending balances ranging from $444,000 in 2010 to $3.6 million in 2014. During that same period, the center received general fund appropriations of $320,000 in 2010 and as much as $530,000 in 2013.
“It appears the revolving fund could have paid for core administrative personnel and that general fund appropriations used were not necessary,” the auditor wrote, noting that the fund’s ending balance was $2.8 million.
UH President David Lassner responded in a letter to the auditor, saying the center relies on the general fund money to fund administrative personnel.
“To impose this cost to our students at this time would mean having to raise our mandatory student health fee again,” he said. “Students are already faced with increasing tuition and other fee increases. This would cause additional financial hardship for many of our students and could detrimentally impact our student enrollment numbers.”
The audit does not include the Research Corporation of the University of Hawaii, which maintains some 500 revolving funds with聽an untold amount of money. The report notes that oversight of these funds remains with UH and that those funds require further analysis.
Here’s the complete audit:
