In a significant development, the University of Hawaii has agreed to pay $499,950 as part of a civil settlement to resolve allegations of insufficient oversight regarding AmeriCorps grants. This settlement comes after an investigation by the United States Attorney’s Office for the District of Columbia, which found that the Hawaii Commission for National and Community Service (HCNCS) and the University made false certifications to AmeriCorps, claiming that grant and sub-grant funds were used appropriately and in compliance with established terms.
U.S. Attorney Matthew M. Graves emphasized the importance of accountability, stating, “AmeriCorps grant funds are designated to help enrich and strengthen people’s lives, but instead were misappropriated under the University of Hawaii’s watch.” The investigation followed earlier criminal prosecutions linked to improper use of AmeriCorps funds, including the embezzlement charges against former HCNCS Executive Director Stacy Higa and others involved with the program.
During the period in question, the University submitted semi-annual Federal Financial Reports to AmeriCorps, falsely certifying that funds were used for authorized purposes. The U.S. government contends these certifications were made despite inadequate oversight by both the University and HCNCS. The improper use of funds was further substantiated by findings from the AmeriCorps Office of Inspector General, which identified misappropriation among HCNCS subgrantees.
AmeriCorps, a federally funded service program, aims to tackle pressing community needs, including educational achievement, poverty alleviation, and disaster preparedness. Michael Pritchard, performing duties as Inspector General, remarked that the crimes committed could have been prevented with better oversight from the University, reinforcing the necessity for organizations to ensure proper management of federal grant funds.
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