Resolution to audit UH moves forward

HSB Note: "A state audit of the University of Hawaii athletic department moved a step closer to reality at the Legislature yesterday, but still has a way to go. A resolution requesting a thorough look at the books of UH's $26 million a year budget for interscholastic sports passed through the house higher education committee yesterday and moves on to the legislative management committee."

Shannon Wood, who testified on behalf of the resolution, said:
"I think it's something that needs to be done." (HSB)

HSB Note: "UH vice president Howard Todo said UH has a cumulative $4.9 million deficit, but testified that another audit isn't necessary, since the department is audited by an independent firm each year, and there will be an additional audit with the transition to a new athletic director."

Supporting the audit, Rep. Takai said:
"It would be wise to start with a clean slate, but also one that is transparent and honest." (HSB)

During the hearing yesterday, Takai told Howard Todo (UH's VP for budget and finance and CFO):
"We don't know where you are." (HSB)

HSB Note: "Todo reported that the UH athletic department has a cumulative deficit around $4.9 million. Takai expressed frustration with conflicting information, including a revision of the 2005-2006 books that reflects an $82,000 deficit instead of what was initially reported, a $7,000 surplus."

About how there is uncertainty on the actual financial situation at UH, Takai said:
"What it points to is the lack of transparency, although we got the closest today. That's a step in the right direction from my perspective. At least now we're talking numbers. In May, everybody was saying I was dreaming up this stuff. At least now there's some admittance and some acknowledging of these deficits." (HSB)

HSB Note: "Takai and other lawmakers want the state auditor to take a thorough look at UH's books. Yesterday, the House Higher Education committee passed a resolution to request such an audit for the years 2003 through 2007 (in its original form, it was for 1999 to 2007). The resolution was passed unanimously by the nine members of the committee present, and now goes to the legislative management committee. Todo said a state audit isn't necessary, because UH is audited each year by an independent firm. Also, there will be an additional audit with the changing of athletic directors; Jim Donovan is expected to be confirmed by the Board of Regents this week, replacing Herman Frazier, who was dismissed in January."

About how they are not looking to find wrongdoing by HF, Takai said:
"I don't think there's fraud. I don't think there's criminal activity. We're looking at systemic problems within the athletic department, looking backwards. And figuring out what they are and how we can fix them. So moving forward we don't have to deal with all this stuff in the future." (HSB)

About how UH's internal management audit is designed to clear up budget questions before Donovan takes over, Todo said:
"That's something that has been done when there's a change in leadership, not only for athletics, but for a major college or school or department. Because it does give the new person a clean slate to start with." (HSB)

HSB Note: "Takai also said he wants more specifics because of increased expected expenses, including proposed facility improvements and salary increases like new football coach Greg McMackin's $1.1 million per year."