HONOLULU - The Hawaii State Department of Education (DOE) today released its
Annual Financial Audit for the 2014 fiscal year (FY 2014) which shows the Department is doing a better job at keeping its finances in order. The independent report analyzed financial statements of the public school system, including operating, capital improvement and federal funds. The DOE’s FY 2014 audit was submitted last month to the Federal Audit Clearinghouse, which operates on behalf of the Office of Management and Budget.
The DOE’s financial audit provides an objective third-party examination of the presentation of the Department's financial statements for the most recent fiscal year, coordinated by the State of Hawaii's Office of the Auditor. The DOE elects to maintain a separate, independent audit, rather than being incorporated with a single State of Hawaii audit.
"Annual independent audits are crucial to ensure taxpayers’ funds are being monitored and maximized to support teaching and learning in the most efficient way," said DOE Senior Assistant Superintendent and Chief Financial Officer Amy Kunz. "The findings validate our financial controls and provide guidance for improvement in some areas."
The 65-page audit report published by Honolulu-based N&K CPA Inc. reviewed the DOE’s $1.494 billion general fund appropriation for the fiscal year ending June 30, 2014. It concluded internal controls examined are appropriately structured to prevent or detect financial misstatements, and found the DOE to be in compliance with requirements of major federal programs.
Auditors noted "opportunities for strengthening internal controls and operating efficiency." Kunz says the Office of Fiscal Service has already moved to address the recommendations as outlined in the findings, including:
Adjusted the calculation of vacation and sick leave accrual for a small portion of
teachers to align with the correct fiscal year.
Strengthened accounting procedures for new federal grant payments to ensure
During the last four years, the DOE has also increased its
internal audits to identify areas in need of improved controls. This move aligns with the
DOE/Board of Education joint Strategic Plan, which calls for effective organizational, financial, human, and community resources in support of student success.