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.

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

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:

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

(2) Leadership and management structure;

(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

(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

SR 107: REQUESTING THE AUDITOR TO CONDUCT QUARTERLY PERFORMANCE AND MANAGEMENT AUDITS OF THE DEPARTMENT OF EDUCATION AND ITS ATTACHED AGENCIES.

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