Requesting The Auditor To Conduct A Performance Audit Of The Department Of Hawaiian Home Lands' Commercial Lease Management Practices, Revenue Optimization, And Rent Collection Procedures.
Impact
The resolution highlights existing challenges that could jeopardize revenue generation for the DHHL. A previous audit of the Department of Land and Natural Resources revealed significant deficiencies, such as below-market lease rates and failure to collect delinquent rents. Diagnostics from the previous audit suggest that similar issues could afflict DHHL’s practices, which could hinder its ability to provide necessary services and support for over 29,000 beneficiaries currently on the homestead waitlist.
Summary
Senate Resolution 12 (SR12) requests a comprehensive performance audit of the Department of Hawaiian Home Lands (DHHL) focusing on its commercial lease management practices, revenue optimization strategies, and rent collection procedures. The DHHL is responsible for managing approximately 200,000 acres of land with the aim of returning native Hawaiians to their lands through homestead leasing, while also generating revenue necessary to support its operations and programs.
Conclusion
Ultimately, the audit seeks to ensure accountability and transparency within the DHHL by examining the effectiveness and efficiency of lease management. The results of this audit could provide actionable recommendations for legislative improvements aimed at enhancing the Department's ability to manage its resources effectively, thereby fulfilling its fiduciary responsibilities to Hawaiian home lands beneficiaries.
Contention
Supporters of SR12 assert that optimizing lease management practices is essential for addressing the revenue shortfall that could further impede efforts to develop new homesteads and provide meaningful benefits to Hawaiian beneficiaries. Conversely, there may be concerns about the potential implications of closer state scrutiny over lease practices, especially among current lessees who might experience changes in rental agreements almost immediately after the audit findings are released.
Same As
Requesting The Auditor To Conduct A Performance Audit Of The Department Of Hawaiian Home Lands' Commercial Lease Management Practices, Revenue Optimization, And Rent Collection Procedures.