Follow-Up on an Audit of the Research Corporation of the University of Hawaii

Report No. 95-9

Our 1993 Audit of the Research Corporation of the University of Hawaii, Report No 93-10, found a lack of accountability and oversight in the corporation's operations, financial management, and contract administration. The corporation also lacked clear policies, criteria, and management controls for contracts with state agencies. Also, the corporation’s management fee structure for state agencies was arbitrary and not linked to services provided. In this follow-up, we found that the corporation had made progress by improving its financial reporting and by drafting a proposed master agreement establishing the terms and conditions under which it may contract with state agencies. Nonetheless, the fee structure is still arbitrary.