Ka Wai Ola - Office of Hawaiian Affairs, Volume 23, Number 5, 1 May 2006 — Fiscal autonomy --at last! [ARTICLE+ILLUSTRATION]

Fiscal autonomy --at last!

Dante Keala Carpenter TrustEE, O'ahu

Aloha mai kākou. In 2005, the Legislature passed Act 107, whieh authorizes the Office of Hawaiian Affairs to make all neeessary and appropriate disbursements of its moneys by issuing checks in its own name and by other means. In other words, OHA gained fiscal autonomy through Act 107. Webster's Dictionary defines autonomy as the "quality or state of being self-governing." Act 107 amends Chapter 10, Hawai'i Revised Statues, and adds a new section to be appropriately designated and to reads as follows: "§10- Authority over disbursements. (a) Except as provided in subsection (b), and notwithstanding any other law to the contrary, the office shall have and exercise the power to make all necessary and appropriate disbursements of its moneys by issuing checks in its own name and by any other means. "(b) The office shall have and exercise the power to deposit any of its moneys in any banking institution within or outside the State, to the extent necessary to implement subsection (a). "(c) The department of accounting and general services, with the approval of the office of Hawaiian affairs, may eonhnue to perform the payroll function of the office, including the issuance of salary checks for the office's employees." Act 107 takes effect on July 1. So what does that mean for OHA? This act gives OHA greater autonomy to issue its own checks and payments, rather than having to go through the bureaucracy of the state's financial system.

OHA has begun communication with the Department of Accounting and General Services (DAGS) to discuss the implieations for OHA pursuing disbursement and check-writing capabilities. OHA's Treasury and Other Services (TOS) division has the task of reviewing the check-writing mechanisms that need to be developed. Operational processes and procedures will need to be implemented and documented to establish stronger internal controls. In order to undertake this charge, TOS expects to increase its staffing to sustain all controls that are currently handled by DAGS. Staff is also preparing a request for proposal (RFP) for banking services for the Office of Hawaiian Affairs. TOS staff has also had discussions with the University of Hawai'i and the Department of Education relating to encumbrances, reporting requirements and procurement matters. These conversations will allow OHA to choose the best practices methods in accountability for the expenditure and monitoring of OHA funds. Yes, this is a huge accomplishment for the Office of Hawaiian Affairs. We are very excited to take on fiscal autonomy. We expect a more efficient process to accommodate OHA's financial processing. Down the road, OHA may also look at processing its own payroll, but we'll take one step at a time. On another note, this is a reminder to kūpuna: the deadline for enrolling into the Medicare Prescription Drug program is May 15. If you need assistance, please eall OHA at 594-1835 and ask for our heahh staff. This is an important date to remember. As always, my staff and I invite your comments on the above or any other concerns within our purview. My OHA access numbers are: phone 5941854, fax 594-0210 and e-mail address - dantec@oha.org. Mālama pono, a hui hou. □

^ LEO 'ELELE • TRUSTEE M ESSAG ES