In a significant development for accountability in federal funding, the University of Hawaii has agreed to pay $499,950 to settle allegations of improper oversight related to AmeriCorps grants. The settlement, announced by the United States Attorney’s Office for the District of Columbia, stems from allegations that the university and the Hawaii Commission for National and Community Service (HCNCS) made false certifications regarding the use of grant funds, claiming they were utilized for authorized purposes in compliance with grant terms.
The U.S. Attorney for the District of Columbia, Matthew M. Graves, emphasized the importance of proper oversight in managing federal funds. “AmeriCorps grant funds are designated to help enrich and strengthen people’s lives, but instead were misappropriated under the University of Hawaii’s watch,” he stated. This civil settlement underscores the responsibility of institutions receiving federal grants to ensure transparency and accountability in their financial reporting.
The investigation was prompted by prior criminal prosecutions involving HCNCS and its oversight of AmeriCorps funds. Notably, former HCNCS Executive Director Stacy Higa pleaded guilty to embezzling funds in 2021, leading to further scrutiny of the university’s management practices. Additional cases involved other officials connected to AmeriCorps subgrantees, revealing a pattern of financial misconduct that raised serious concerns about the integrity of grant management.
During the time when the grant funds were allegedly misused, the University of Hawaii submitted reports to AmeriCorps affirming that the funds were being utilized correctly. However, the U.S. government contends these reports were knowingly inaccurate due to inadequate oversight practices by both HCNCS and the university.
AmeriCorps is a federal program designed to address various community needs, from education to environmental conservation. The settlement highlights the ongoing need for vigilance and accountability in the administration of such significant public resources, as outlined by Michael Pritchard, the Acting Inspector General for AmeriCorps. He noted that the mismanagement of funds could have been prevented with proper oversight by the University of Hawaii.
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