Auditor finds school spending poorly tracked

The first Hawaii state auditor's investigation of a regular high school finds missing inventory and a "casual" attitude toward tracking funds.

The audit of Kailua High School found the principal "relying almost exclusively on clerical business office staff to manage its $10 million operations and $2 million inventory." The audit said the principal "placed low priority on maintaining adequate financial records."

"Almost half of the school's $2 million inventory may be fictitious as school staff do not have clear responsibility assignments, support, and oversight over its assets," the report said. "We could not locate $500,000 worth of equipment in our sample and also found items not on the office inventory. Teachers are supposed to keep track of assets they use or move but the requirement is not enforced and teachers do not cooperate."

The auditor's office said Kailua High School was selected in part because of questions its athletic program and fundraising efforts. The report described the athletic department's inventory management as "casual" and sdaid it sometimes waited days before depositing money collected for student activities, one, it said, of many "questionable personnel and fiscal practices." It found coach salary funds "disguised for other athletic purposes" and said background checks on coaches were sometimes not done until entire seasons were over.

The school system issued a statement that background checks were now being done properly, after the disclosure of a coach with a police record.

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