State Audit Division reviews public school student funds

The State Department of Accounting and General Services (DAGS) Audit Division is preparing to perform its yearly review of non-appropriated Student Activity Funds (SAF), to make sure funds are appropriately spent. These funds are used for activities outside of the formal class period that are not required for class work or credit. Examples include field trips, school clubs, student association dues and any other activity not essential to any particular course.

It’s a common scenario: a parent of a public school student will pay money to the school now and then for class dues, school dues, fundraisers and more — and may wonder what happens to that money. Parents can rest assured that schools establish safeguards around the separate, insured checking accounts in which these funds are maintained, in trust and for the benefit of students. DAGS’ audit is required by state law, according to department officials.

“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 DAGS 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 to make recommendations to improve internal controls.”

“These checks and balances are in place to make sure we are properly managing the students’ money and protecting it from misuse,” said Audit Division Administrator Ronald Shiigi. The DOE provides a list of about a dozen schools to audit.

The audits start in January and are completed by June. Once DAGS hands the reports to the DOE, the education department’s Internal Audit Office follows up with the schools to ensure they complete a Corrective Action Plan, if needed. The audits are not posted online.

More on DAGS Audit Division at https://ags.hawaii.gov/audit/.