Financial and Compliance Audit of the Department of Hawaiian Home LandsPosted on Apr 25, 2023 in Most Recent, Summary
Financial Statements, Fiscal Year Ended June 30, 2022
THE PRIMARY PURPOSE of the audit was to form an opinion on the fairness of the presentation of the financial statements for the Department of Hawaiian Home Lands, as of and for the fiscal year ended June 30, 2022, and to comply with the requirements of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which established audit requirements for state and local governmental units that receive federal awards. The audit was conducted by Akamine, Oyadomari & Kosaki CPA’s, Inc.
FOR THE FISCAL YEAR ended June 30, 2022, DHHL’s total revenues exceeded total expenses by $45.9 million. Revenues totaled $113.8 million and consisted of (1) program revenue of $52 million and (2) state appropriations, transfers, and adjustments of $61.8 million. Expenses totaled $67.9 million. Program revenues were comprised of interest income (approximately 11 percent), grants and contributions (36 percent), revenue from the general lease program (50 percent), and other sources (3 percent).
As of June 30, 2022, total assets of $1.31 billion exceeded total liabilities of $375 million, resulting in a net position balance of $932 million. Total assets included net capital assets of $470 million, cash of $432 million, loans receivable of $89 million, and other assets and deferred outflows of resources of $316 million. Loans receivable consisted of 1,295 loans made to native Hawaiian lessees for the purposes specified in the Hawaiian Homes Commission Act. Loans are for a maximum amount of approximately $453,000 and for a maximum term of 40 years. Interest rates on outstanding loans range up to 10 percent. Total liabilities included bonds and lease liabilities totaling $39 million and temporary deposits payable and other liabilities of $336 million.
|About the Department
The Hawaiian Homes Commission Act sets aside certain public lands as Hawaiian home lands to be utilized in the rehabilitation of native Hawaiians. These public lands are managed by the Department of Hawaiian Home Lands (DHHL), a state agency headed by the Hawaiian Homes Commission, whose primary responsibilities are to serve its beneficiaries and to manage this extensive land trust. DHHL provides direct benefits to native Hawaiians in the form of 99-year homestead leases at $1 per year for residential, agricultural, or pastoral purposes, and financial assistance through direct loans, insured loans, or loan guarantees for home purchase, construction, home replacement, or repair. In addition to administering the homesteading program, DHHL leases trust lands not in homestead use at market value and issues revocable permits, licenses, and rights-of-entry. Its financial statements include the public trusts controlled by the Hawaiian Homes Commission.