REQUESTING THE DEPARTMENT OF EDUCATION'S INTERNAL AUDIT OFFICE TO CONDUCT SEMIANNUAL PERFORMANCE AND MANAGEMENT AUDITS OF THE DEPARTMENT AND ITS ATTACHED AGENCIES.

SR107

THE SENATE

S.R. NO.

107

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

SENATE RESOLUTION

requesting the Auditor to conduct quarterly performance
and management audits of the Department of education and its attached agencies
.

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WHEREAS, the
Department of Education represents nearly a quarter of the State's general fund
operating budget; and

WHEREAS, the Department of
Education receives hundreds of millions of dollars in federal funding each year;
and

WHEREAS, the Board of
Education recently amended its bylaws to reestablish an Audit Committee within
the Board of Education; and

WHEREAS, the scope of the
Audit Committee is limited to accounting and financial reporting processes;
compliance with legal and regulatory requirements; and systems of internal
controls over financial reporting and compliance with the adopted codes of
conduct and ethical standards, including regular review and approval of
internal audit plans; and

WHEREAS, the Audit Committee lacks
the authority to evaluate the efficacy of programs within the Department of
Education to ensure student academic success and workforce readiness; and

WHEREAS, the existing Internal
Audit Office within the Department of Education is administratively attached to
the Office of the Superintendent, according to the July 1, 2025, Department of
Education organization chart; and

WHEREAS, the organization
chart states that the Internal Audit Office is independent of all other
departments within the Department of Education; and

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WHEREAS, the
organization chart further states that the Internal Audit Director reports
directly to the Superintendent of Education and the Chairperson of the Board of
Education; and

WHEREAS, this organizational
structure creates a conflict of interest where the Internal Audit Director is
expected to act independently while also reporting directly to the
Superintendent of Education and the Chairperson of the Board of Education; and

WHEREAS, the need for regular
and timely reviews of the program and organizational structure of the
Department of Education grows as the standards for student success change over
time; and

WHEREAS, the Auditor is a
fully independent entity with the power and authority to conduct performance
and management audits pursuant to in Article VII, section 10, of the Hawaii
State Constitution; chapter 23, Hawaii Revised Statutes; and other state laws; now,
therefore,

BE IT RESOLVED by the Senate
of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026,
that the Auditor is requested to conduct quarterly performance and management
audits of the Department of Education and its attached agencies; and

BE IT FURTHER RESOLVED that
the Auditor is requested to rotate the quarterly performance and management
audits amongst the Department of Education and its attached agencies, and is
also requested to conduct no fewer than two performance audits and two
management audits per year; and

BE IT FURTHER RESOLVED that
the Auditor is requested to base each of the quarterly performance and
management audits on at least one of the following categories:

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(1)
�
Academic performance of existing programs compared
to the strategic plan objectives for the Department;

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(2)
�
Leadership and management structure;

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(3)
�
Federal funding, including grants,
entitlements, reimbursements such as Medicaid reimbursements, and emergency
relief funding such as Elementary and Secondary School Emergency Relief funds;
and

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(4)
�
School academic and financial plans; and

BE IT FURTHER RESOLVED that
the Department of Education and its attached agencies are urged to use the
audit findings to evaluate existing programs and structures and to reallocate
resources as necessary to increase student academic success and workforce readiness;
and

BE IT FURTHER RESOLVED that
certified copies of this Resolution be transmitted to the Superintendent of
Education, State Librarian, Executive Director of the Executive Office on Early
Learning, Executive Director of the School Facilities Authority, Executive
Director of the Hawaii State Public Charter School Commission, Executive Director
of the Hawaii Teacher Standards Board, and the Auditor.

OFFERED BY:

_____________________________

Report Title:

DOE;
Audits; Auditor