Annual audit process will safeguard student activity funds

The State Department of Accounting and General Services Audit Division is preparing its annual review of nonappropriated student activity funds to ensure funds are spent appropriately.

These funds are used for activities outside the formal class period that are not required for classwork or credit. Examples include field trips, school clubs, student association dues and any other activities not essential to any particular course.

The Department of Accounting and General Services audit is required by state law. It establishes safeguards around the separate, insured checking accounts in which funds for class dues, school dues, fundraisers and more are maintained.

“The Hawaiʻi Department of Education assigns us the schools it would like audited. We start our audits every January to review the finances of the previous year,” said Department of Accounting and General Services Director and Comptroller Keith Regan. “We are pleased to provide this service to the community; the Audit Division’s mission is to promote financial accountability and make recommendations to improve internal controls.”

The Department of Education provides a list of about a dozen schools to audit. The audit will start in January and will be completed by June.

“These checks and balances are in place to make sure we are properly managing the students’ money and protecting it from misuse,” stated Audit Division Administrator Ronald Shiigi.

Once the Department of Accounting and General Services hands the reports to the Department of Education, the internal audit office will follow up with the schools to ensure the complete Corrective Action Plan if needed.

Audits are not posted online, but more information on the Audit Division can be found on the state website.