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FINAL REPORT OF
BISHOP ESTATE FACT FINDER
JUDGE PATRICK K.S.L. YIM

Posted online Friday, Dec. 19, 1997

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PATRICK K. S . L. YIM
Fact Finder
P.O. Box 240027
Honolulu, Hawaii 96824-0027

FIRST CIRCUIT COURT
STATE OF HAWAII
FILED

1997 DEC-4 P.M. 2:24

D. SAKIMOTO
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CLERK



IN THE CIRCUIT COURT OF THE FIRST CIRCUIT


STATE OF HAWAII

In the Matter of the Estate

of

BERNICE P. BISHOP,

Deceased.



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EQUITY NO. 2048


FINAL REPORT OF FACT FINDER;
EXHIBITS "A", "B", "C", "D", "E" and
"F"; CERTIFICATE OF SERVICE


FINAL REPORT OF FACT FINDER


I. INTRODUCTION

The foundation, upon which the Kamehameha Schools Bernice Pauahi Bishop Estate rests, is the Will and Two Codicils of Princess Bernice Pauahi Bishop. On December 2, 1884, her Will was admitted to probate in the Supreme Court of the Hawaiian Islands. In pertinent part, the Will provides:

"... to erect and maintain in the Hawaiian Islands two schools...called the Kamehameha School. ... to provide first and chiefly a good education in the common English branches, and also instruction in morals and in such useful knowledge as may tend to make good and industrious men and women. .. "

Attached hereto and incorporated herein by reference as Exhibit "A", is the Will and Two Codicils of Bernice Pauahi Bishop.

II.BACKGROUND OF THE FACT FINDING PROCESS

On May 14, 1997, Kamehameha Schools Bishop Estate's ("KSBE") General Counsel, Nathan Aipa, Esq., first inquired as to Judge Patrick K.S.L. Yim's ("Fact Finder" or "Yim") availability to serve as a Fact Finder. In light of the fact that it was anticipated that a Petition for Instructions was to be filed, and in view of the daunting magnitude of the investigation, the Fact Finder immediately made it known that if the expectation was for the task to be completed by October. 1997, his calendar of professional commitments precluded his service as Fact Finder. The Fact Finder informed Mr. Aipa that he (the Fact Finder) fully intended to honor all the commitments (i.e., mediations, arbitrations on Oahu and the neighbor islands) that had already been scheduled for June, July, August and September of 1997. It should be noted however, that the Fact Finder agreed to defer scheduling any further commitments in order to address this matter during the remainder of the year. Having an immediate appreciation for; a) the emotional nature of the assignment, b) the openendedness of the scope of the fact finding, c) the number of people that, in all likelihood, would wish to speak to the Fact Finder, and d) the amount of information that would be forthcoming, the Fact Finder expressed concerns about the expectations of the affected persons. The Fact Finder also indicated his availability if expectations were for the completion of the Fact Finding assignment beyond November, 1997. While also keeping the commitments already on his calendar. if selected, the Fact Finder agreed to superimpose the Fact Finding process onto his calendar. Because of the sensitive and important nature of the task at hand, the Fact Finder has committed a vast amount of his time since August of 1997 until now to conduct this Fact Finding process.

Filed on May 14, 1997, the PETITION OF THE TRUSTEES FOR INSTRUCTIONS ("Petition") was initially heard on June 13, 1997, a copy of the Petition is attached hereto and incorporated herein by reference as Exhibit " B" . The Court's ORDER GRANTING PETITION OF THE TRUSTEES FOR INSTRUCTIONS FILED ON MAY 14, 1997 ("Court's Order" or *'Order") was filed on July 10, 1997, a copy of the Order is attached hereto and incorporated herein by reference as Exhibit " C" .

Upon receiving a copy of the Court's Order, the Fact Finder immediately began to develop a strategy to address the assignment, arrange for a site at which to headquarter and conduct the Fact Finding process, and to address personnel and logistical needs.

III.PETITION FOR INSTRUCTIONS AND ADMINISTRATION OF FACT FINDING

The Fact Finder determined that the Petition indicated that an inquiry by way of a neutral investigation and fact finding was necessary due to an already existing internal situation concerning the management and administration of the Kamehameha Schools.

The Petition recited that the Trustees expressed a certain lack of knowledge regarding various allegations, rumors and innuendo affecting the management and administration of the Kamehameha Schools. Therefore, in order to address this lack of knowledge and their inability to determine the genesis of the Controversy, the Trustees determined that there was a need to appoint a Fact Finder.

In this unprecedented measure, the Trustees authorized and delegated requisite power and authority to the Fact Finder. The Trustees authorized the Fact Finder to conduct an inquiry into the controversy, to act as a mediator with full authority to inquire, and to render advice and counsel with respect to resolution.

Although there was an attempt to gather information in an orderly manner, the broad nature of the inquiry and the lack of a particular focus at the early stages of the Fact Finding, coupled with the general anxiety, fear and trepidation of witnesses within the Kamehameha Ohana, made the task both difficult and challenging

The Fact Finder commenced the process by setting appointments and interviewing the Petitioners and administrators of the Kamehameha Schools.

The Fact Finder interviewed witnesses who came forward voluntarily, though in some instances reluctantly, to provide information and to express their concerns about certain incidents, policies and practices that they considered unfair. Their perception was that an oppressive and generally negative environment exists at the Kamehameha Schools. Most believe that this environment is not conducive to the positive learning environment that should be demanded of an educational institution such as the Kamehameha Schools (which has been charged with such a noble, if not sacred, role in Hawaii's future.)

During the course of the Fact Finding, the Fact Finder interviewed Trustees, former Trustees, administrators, teachers, students, alumni and parents. The witnesses provided information and data regarding educational/programmatic concerns, administrative concerns, interpersonal concerns, fears, observations, and perceptions. These concerns were numerous and varied in content.

Under the general rubric of the Petition and Order, while conducting the interviews, the Fact Finder proceeded, by necessity, to allow the witnesses to provide information in a narrative manner. Since the Fact Finder was not aware of what each witness intended to speak about, the Fact Finder hoped that the narrative format would make the witnesses comfortable and allow them to be open and candid in providing the information they wished to share. There was no effort, due to the general nature of the inquiry, to direct the interview, except to clarify certain areas addressed by the witnesses. The inquiry was lengthy, difficult and extremely challenging. The witnesses were anxious and concerned about anonymity. Much of the information obtained from the witnesses was provided as a result of the Fact Finder's assurances of confidentiality as to their identity, and that the Fact Finder would not use the information provided if the witness would be recognized as being the only possible source of such information. With rare exception, the witnesses expressed their wish for confidentiality. Furthermore, the Fact Finder utilized only information that was corroborated either by other witnesses or by written reports, letters, memoranda, etc., which have been circulated to more than one other person.

The Fact Finder conducted interviews extensively on Oahu. Further, after public notices appeared both in the print and electronic media on the neighbor islands, the Fact Finder traveled to Maui, Hawaii, and Kauai to meet with individuals who were willing to come forward

To the extent that certain witnesses were not primary sources of information regarding certain incidents, the Fact Finder attempted to, and at times, was able to elicit from these witnesses the names of persons who might be primary sources of information.

In an effort to obtain the maximum amount of input within the time frame allowed, and the logistical constraints of the Fact Finding, the Fact Finder circulated confidential questionnaires to the KSBE Ohana and, thereafter, reviewed over 1,300 questionnaire responses to determine the existence of primary sources of information. To a great extent, the responses were anonymous. Where the witnesses identified themselves and provided first hand information, the Fact Finder contacted some of these individuals to obtain further information and/or clarification. The Fact Finder also endeavored on 'his own to contact potential witnesses who had not voluntarily come forward.

The Fact Finder notes that the majority of individuals who came forward appeared sincere in their concern for the children, the educational opportunities provided by Pauahi's Will, and the future of the Estate. Those that did step forward felt they needed to address and correct the problems that now confront the Kamehameha Schools.

In assessing and determining the credibility of the information provided, the Fact Finder weighed the following factors: a) the means by which the witnesses' obtained the information; b) the witnesses' demeanor and candor (or lack thereof; c) their particular individual or organizational interest in the outcome of the inquiry; d) the internal consistency of their individual statements. and e) independent corroboration of the witnesses' statement(s!

In order to be able to conclude that a fact has been established, it is necessary to establish an appropriate level of persuasion (in legal terms, burden of persuasion). The Fact Finder rejected as unacceptable measurements: mere suspicion, perception, innuendo, or scintilla of proof. Proof beyond a reasonable doubt, the standard of proof in criminal proceedings, was deemed inappropriate for this process. Proof by clear and convincing evidence was also rejected as being inappropriate and unduly burdensome in this endeavor. Instead, the Fact Finder established that the appropriate burden of persuasion as to the finding of a "fact" is by a preponderance of the evidence; that is, that a matter is determined to be a fact if it is more likely than not to be true.

After interviewing all witnesses who voluntarily came forward, the Fact Finder proceeded to re-interview certain witnesses, and to interview others who did not voluntarily come forward initially. As to the latter, the Fact Finder observed that when contacted, these witnesses were very concerned about confidentiality. In spite of their concern and fear of reprisal after being assured of confidentiality, these witnesses were generally cooperative and showed no less concern with the situation at the Kamehameha Schools than those who responded initially.

The witnesses who provided information to the Fact Finder were deeply concerned about the "Controversy" and considered their observations to be of vital concern. In preparing this report, the Fact Finder found it necessary to look beyond the details provided and the multitude of concerns expressed, which at times was overwhelming. The Fact Finder viewed these details as being symptomatic of broad areas of concern, and attempted to avoid the distraction of being overwhelmed by the myriad detail expressed during the interviews and in the questionnaires. The Fact Finder wishes to assure the witnesses that all their concerns, if found to have merit, were given appropriate consideration and weight.

IV.RELEVANT SECTIONS OF THE COURT'S ORDER (EXHIBIT "C")

A. FINDINGS OF FACT

"1. Petitioners Richard Sung Hung Wong, Oswald Kofoad Stender, Marion Mae Lokelani Lindsey, Gerard Aulama Jervis and Henry Haalilio Peters are the duly appointed, qualified and acting Trustees under the Will and of the Estate of Bernice Pauahi Bishop, Deceased.
2. As more particularly set forth in the Trustees' Petition, there now exists and internal situation arising from various allegations, rumors and innuendo concerning the management and administration of the Kamehameha Schools (the "Controversy").

3. The nature of the situation warrants the selection of a neutral and impartial third-party charged with the obligation to ascertain the material and relevant facts concerning the Controversy (the " Fact Finder" ) .

4. In the interest of actual and apparent fairness to all concerned and for the good of the Kamehameha Schools, the Fact Finder must be a person of unquestioned probity whose fairness and integrity will be recognized by all reasonable persons."

B. CONCLUSIONS OF LAW

"1. This Court has personal jurisdiction of the parties to and the subject matter of the Trustees' Petition.

3. The Trustees are authorized to delegate to the Fact Finder requisite power and authority to undertake the work described in the following Order:

a. to conduct an inquiry into the Controversy
b. to act as a mediator with full authority to inquire concerning the Controversy;
c. to render a written report of his findings of material and relevant facts concerning the Controversy; and
d. to render advice and counsel with respect to resolution of the Controversy."


C. ORDER GRANTING PETITION OF THE TRUSTEES FOR INSTRUCTIONS

"1. PATRICK K.S.L. YIM is hereby appointed as the Fact Finder herein, to serve as such without bond.

3. The Fact Finder shall give a full and fair opportunity to be heard to, and use his best efforts to resolve the concerns of, all persons who are involved in or who may have information relevant to the Controversy .

4. The Fact Finder is authorized and empowered:

a. to inquire of and meet with any persons or group of persons who have or may claim to have relevant information concerning the Controversy, including, but not limited to trustees, retired trustees, staff, employees, parents, students, alumni, teachers, retired teachers, administrators, retired administrators, friends and supporters of the Kamehameha Schools ("Witnesses");

b. to receive statements, testimony and information from Witnesses with such assurances to them of confidentiality as he reasonably deems appropriate;

c. to establish and make known such rules and procedures for the receipt of information from Witnesses as he reasonably deems appropriate;

d. to maintain a dedicated post office box address, facsimile machine and telephone if he deems it appropriate to do so;

e. to meet at the Kamehameha Schools or elsewhere in the State of Hawaii with Witnesses;

f. to meet with such Witnesses as may be absent form the State of Hawaii in such circumstances, at such times and in such manner as he reasonably deems appropriate, and to incur reasonable travel expenses for himself or any Witnesses; and

g. to retain the services of such independent professionals as the Fact Finder reasonably shall deem necessary or appropriate to assist him in the circumstances, including persons and organizations expert in education and school administration, and others whose professional skills or services he reasonably requires.

h. to retain the services or otherwise to involve national educational and scholastic accrediting services, institutes or associations as he reasonably deems appropriate.


5. The Fact Finder shall establish procedures to assure the confidentiality of Witnesses and shall hold in confidence the identity of Witnesses and information gained from Witnesses that could lead to their identification. No such confidence shall be broken by the Fact Finder except with the express approval of the Witness concerned or except as required by law. The records, notes, logs and other materials assembled or produced by the Fact Finder shall be and remain his confidential work product.

8. At the conclusion of his efforts, the Fact Finder shall render a report thereof to the Court (the "Report"). No particular form of Report is established or required by this Order.

9. Prior to filing his Report, the Fact Finder shall make a good faith determination as to (a) whether any information contained therein is (i) privileged to any person, including any Witness, (ii) subject to a confidentiality agreement between the Fact Finder and any Witness, or between any Witness and a third party, or (b) whether publication of any information therein poses a serious and immanent threat likely to lead to loss, detriment or disadvantage to any person or the Kamehameha Schools Bernice Pauahi Bishop Estate. In any of the foregoing events, the Fact Finder shall afford the Court adequate opportunity to determine the reasonable necessity of publication of such information. Such information is hereinafter referred to as "Confidential Information"

10. The Trustees or the Attorney General may petition the Court for a protective order to seal any Confidential Information and, upon a showing that such Confidential Information is privileged, subject to valid confidentiality agreement, or that its publication poses a serious and immanent threat likely to lead to loss, detriment or disadvantage to any person or the Kamehameha Schools Bernice Pauahi Bishop Estate, and after the Trustees and the Attorney General are afforded a reasonable opportunity to be heard, the Court may grant a petition for a protective order to seal such Confidential Information upon such terms and conditions as the Court shall determine by its final order. The party seeking to maintain the seal shall have the continuing burden to show such continuing privilege, confidentiality or prejudice.

11. The entire contents of the Report shall be filed with the clerk of the Court with such portion or portions as contain Confidential Information covered with the superimposed statement " Disclosure of this information is subject to order of the Court to seal or unseal "

12. The entire contents of the Report shall be delivered unredacted to the judge of this Court, the Attorney General and the Trustees. The Confidential Information contained therein shall be held by each of them in strict confidence and none of them shall release, publish or disclose such Confidential Information except upon final order of this Court to unseal the same.

14. In the event that the Fact Finder reasonably shall determine that a process of mediation, conciliation or other mechanism of alternative dispute resolution is appropriate, he shall have the authority to proceed with such process under such reasonable rules and procedures as he may establish in agreement and coordination with the persons involved therein. The Fact Finder shall not have the powers of an arbitrator under Chapter 658, Hawaii Revised Statutes, as to any matter unless all persons involved in such arbitration shall have expressly and in writing agreed to submit the matter to arbitration."


V.THE FACT FINDER'S PROGRESS REPORTS ("EXHIBITS "D" & "E")

During the course of this Fact Finding process, the Fact Finder issued two Progress Reports which are attached hereto as Exhibit "D" and Exhibit "E", and incorporated herein by reference.

VI.GENERAL FINDINGS

After careful and detailed consideration of the Court's Order and all relevant evidence, input, information, data, observations and perceptions deemed reliable and credible, the Fact Finder reports as follows:

A. Present Organizational Structure of KSBE

Attached hereto and incorporated herein by reference as Exhibit "F" is the KSBE Fiscal Year 1997-1998 Organization Chart.

The Fact Finder notes that, at present, KSBE has an Organizational Chart structured essentially as follows:

Below the Trustee level there are five "Groups":

1. Education

2. Asset Management

3. Budget and Review

4. Legal

5. Administration

Each of these Groups has direct reporting lines to the Trustees.

The President of Kamehameha Schools ("President") as head of the Education Group, reports directly to the Trustees. Vertically, the Vice President of the Education Group reports to the President. Only three programs within the Education Group report directly to the President's office: Chaplain, Program Evaluation and Planning, and the Grants Office. The divisions reporting to the Vice President's office include the following: Administration, Secondary School, Kamehameha Elementary School, Kamehameha School East Hawaii Campus, Pre-School Division, and Community Relations. Also included under the umbrella of the Vice President's office is the Curriculum and Instructional Coordinator.

As the Table of Organization is presently structured, the Education Group is arranged in the traditional vertical fashion. Within President Michael Chun's office are the following positions: Assistant to the President and an Executive Assistant. Within Vice President Dr. Rockne Freitas' office are the following positions: Executive Assistant, Executive Assistant/Fiscal Affairs, Senior Administrative Assistant, and a secretarial position.

The Fact Finder notes that the other groups with direct lines of reporting responsibility to the Trustees are headed by the following principal executives:

Yukio Takemoto, Office of Budget and Review Group

Nathan Aipa, Esq., Legal Group

Rodney Park, Administration Group

The Asset Management Group is without a Principal Executive since the death of Anthony Sereno in 1995, and is presently directed by Trustee Peters.

It is noted that the Asset Management Group does not directly impact on the Administration of the Kamehameha Schools. Since the work of the Asset Management Group was and is generally the subject of the Court Master's Report and the Attorney General's inquiry, the Fact Finder holds that his scope is limited solely to the management and administration of the Kamehameha Schools. The Legal Group contains the following divisions: Office of the General Counsel, Administration and Records Management Division, Corporate Investment Legal Division, Litigation and Risk Management Division, the Real Estate Litigation Division, Tax Departrnent, and Documentary Department. The Fact Finder notes that while the Legal Department generally has the responsibility to oversee all matters relating to legal issues, the Legal Department itself has only a minor role within the scope of issues being investigated in this Fact Finding.

However, the other Groups do impact directly upon the Education Group. The Office of Budget and Review includes Budget Administration, the Engineering Department, the Internal Auditor, Planning and Program Review, and Policies and Procedures. The Administration Group includes the Office of the Director, Communications Division, Comptrollers, General Services Department, Government Relations Department., Information Systems Division, the Personnel Division, and also handles accounts payable and accounts receivable within the Administration function. Each of the departments and divisions is tasked with managing such functions as benefits and compensation, employee relations, recruitment, and related functions.

B. Board of Trustees of KSBE

The current Board of Trustees of KSBE includes the following persons in order of seniority:

ï Henry Peters

ï Oswald Stender

ï Richard Wong, Chairman

ï Lokelani Lindsey

ï Gerard Jervis. Esq.

C. Board of Trustees Governance and Responsibility

The Trustees have essentially divided their work so as to designate a "Lead Trustee" who provides oversight within the broad areas of the Trustees' work. The division of those responsibilities by category is as follows: Henry Peters for Asset Management; Lokelani Lindsey for Education Affairs; Gerard Jervis, Esq. for Legal Affairs; Richard Wong for Governmental Affairs; Oswald Stender has no specific oversight responsibilities at this time.

D. Scope/Authority of "Lead Trustee"

In their practice of allowing oversight by the Lead Trustee of a particular group, the Board of Trustees has:

1) Failed to adopt any guidelines or criteria in order to provide the Lead Trustee(s) with guidance as to how the specific oversight is to be conducted, and

2) Allowed the Lead Trustee(s) to carry out his/her responsibilities in the given area in a highly individualistic manner.

Although it is understood among the Trustees that the final decision-making authority rests with the Trustees as a whole, the Board has not articulated what decisions are reserved to the Board, so that, in fact, the Lead Trustee exercises broad decision-making power over his/her area.

The "Lead Trustee" practice and the lack of guidelines relating thereto have created confusion among the Board and among the impacted subordinates. This Lead Trustee managerial style and level of decision-making exercised on an ad hoc basis is, at best, confusing. It is often unclear as to whether the actions of an individual Trustee in his/her role as Lead Trustee, are in fact individual Trustee action or full Board action. This situation is exacerbated by the fact that Board minutes, as they address the specific subject matter, reflect little historical or future guidance and/or direction.

Additionally, when clarification of requested or demanded action is sought of the Lead Trustee or middle management, there is a reluctance and/or refusal to put responses in writing. Directives, for the most part, are issued verbally. This management style exacerbates the climate of confusion and has often lead to misunderstandings and misperceptions. This lack of clear-cut direction is fundamental to the frustration experienced by the persons charged with the responsibility of implementing the Board's actions. Rather than being guided by clear instruction in writing, requests for clarification are often met with rejection with no specific explanation as to why. The Fact Finder finds that the foregoing action demonstrates that the Lead Trustee system is fraught with inherent systemic flaws.

It is quite significant to note that this Fact Finder was charged specifically with investigating and finding fact within the specific realm of the Education Group as it relates to the Trustees and visa versa. The Fact Finder makes no findings or observations concerning the Trustees' management system (i.e., the ULead Trustee" system) in regard to any other Group.

E. Board of Trustees' Internal Interaction

1. Staff Reports

Ordinarily, matters that are brought before the Board for action and/or review are in the form of staff reports. Said staff reports set forth a) the purpose of the report, b) the particular recommendation conveyed via that report, c) the background related to the issues which are the subject of that report, d) discussion and/or analysis of that report including advantages, concerns, and alternatives, and e) a conclusion. Typically the staff reports are presented in writing and are often augmented with a live presentation by the particular staff member rendering the report.

The matters which are to be reviewed at a particular Trustee's meeting are set forth on the meeting agenda. However, there have been occasions when staff reports are "walked in" to the Board and presented without having previously appeared on the agenda. Though a staff member prepares the staff report, the subject thereof may be the project of a Trustee's initiation.

In the normal course of action relating to a staff report, the written staff report bears the name of the preparer of the staff report, and is initialed and dated by the preparer. Thereafter, the report is routed to the division or department head for review and further action. The report is then directed to the principal executive from the group from which the staff report emanates. The report is then presented to the Trustees for review, consideration and action.

2. Meeting Agendas and Decision-Making

The Chairman of the Board of Trustees is responsible for establishing and circulating the meeting agenda. The Chairman is also responsible for determining what matters are to be considered on a particular agenda. If a staff report is submitted at a Trustee meeting, but the Trustees feel that the report has provided insufficient and/or incomplete insight into the issue at hand, the Trustees will defer any decision on that staff report. On occasion the Trustees direct the staff members to conduct additional research, due diligence, or information gathering necessary for decision making

Furthermore, if there is disagreement among the Trustees on the staff report, then the matter may be deferred for further discussion and review or until there is consensus among the Trustees. Purportedly the Trustees currently operate using a consensus-based decision-making model; however, there have been occasions when final decisions of the Board have been subsequently questioned by a particular Trustee. When and if a final decision is made by a "consensus" of the Trustees, that action is recorded in the minutes. Dissents or "nay" votes are not recorded in the minutes. As such, the minutes provide minimal detail as to the Board's action or the decision made as to the staff report.

F. Board Interaction with KSBE School Administration

As presently structured, the Lead Trustee for the administration of the Education Group is Lokelani Lindsey (hereinafter "Lead Trustee" or "Trustee Lindsey"). The Fact Finder finds that a vast majority of communication between the Trustees and the Education Group is facilitated through Trustee Lindsey. The Organization Chart for the Education Group implies that the lines of authority run from President to Vice President to various department heads within the Education Group.

It is not uncommon for Trustee Lindsey as Lead Trustee to bypass the President and articulate instructions to others below the President on the Organizational Chart. For the most part, until recently, the other four Trustees have acquiesced to Trustee Lindsey's oversight of the school. The Lead Trustee's actions undermine the integrity of the Organizational Chart and established hierarchy of the Education Group

G. The Interface of Other Groups with the Education Group

The interface of the Budget and Review Group with the Education Group generally occurs within the areas of Engineering, Budget and Administration, and Internal Auditing (presently there is no internal auditor).

The interface between the Education Group and the Administration Group is wide spread and includes Communications, Comptrollers, Information Systems Division, and Personnel.

The interface between the Education Group and the Legal Group is on an "as needed" basis only and is not as frequent as with other groups

VI. SPECIFIC FINDINGS

Based upon a thorough and careful review of information, data and evidence gathered through several hundred personal interviews, the review of over 1300 questionnaires, discussions with administrators, Trustees, former Trustees, teachers, alumni, students and other interested persons. this Fact Finder respectfully issues the following specific findings.

A. Lead Trustee Lokelani Lindsey has made recent observations regarding certain complaints against President Michael Chun (which are allegedly the basis for the Trustees' lack of confidence in his ability to manage and lead the Education Group) and has stated that the support for those complaints are purportedly included in the contents of two bankers boxes submitted by the Lead Trustee to the Fact Finder on or about November 12, 1997. However, the Fact Finder finds specifically that the scope of this Fact Finding does not include inquiry into whether or why the Trustees are or may be dissatisfied with President Michael Chun. If, in fact, the Trustees do harbor those feelings or beliefs, and have come to certain conclusions about his management skills or lack thereof, then those are matters already known to them and thus are not necessary or appropriate for factual determination by this inquiry. In other words, the Fact Finder finds that the Court's Order authorizes a Fact Finding into "allegations, rumors and innuendo." The Court's Order does not require the Fact Finder to conduct a performance appraisal of Dr. Chun's work as President of the Kamehameha Schools, and the Fact Finder believes it would be inappropriate for him to do so.

It is significant to note that the Fact Finder thoroughly reviewed the information provided by Trustee Lindsey on November 12, 1997. which was further augmented by way of a December 2, 1997 transmittal entitled, "AN IMPERATIVE FOR EDUCATIONAL CHANGE." The Fact Finder has accorded this information due consideration in the context of the totality of the information .gathered during this Fact Finding.

It appears that what may not be known to the all of the Trustees of KSBE are the specific actions of the Lead Trustee (or other Trustees) that have impacted negatively on the Education Group. Such actions have been the principal cause of the Controversy which lead to the filing of the Petition.

B. The Lead Trustee system itself is inappropriate for a Board of Trustees to adopt as a means of oversight for the Education Group. However, the fact that the system is inappropriate is not the cause of the Controversy. The cause is the manner in which the system has been established and carried out by this Board and by the Lead Trustee of the Education Group.

As stated earlier in the Report, the Lead Trustee system creates an environment of misdirection, miscommunication, misperception, and frustration. The subordinates within the Education Group are frequently unable to distinguish the individual actions of the Lead Trustee from the approved actions of the Board of Trustees.

C. There are no written guidelines, protocols, or procedures that establish the method by which the Lead Trustee should carry out his/her responsibilities within the framework of his/her assigned area of oversight, or delineate with specificity what decision-making authority the Lead Trustee has and what authority is reserved to the full Board of Trustees.

D. The chain of command (Organizational Chart) which exists between the Trustees and the Education Group, has been bypassed by the Lead Trustee on a regular basis. The continual bypassing of the existing chain of command has undermined the integrity of the Office of the President and has caused extreme confusion among virtually all subordinates including teachers, students, support staff, parents, and alumni.

E. The physical existence of an office for the Trustees (an office that is located directly across the hall from the Office of the President on the Kamehameha Schools campus), and a parking stall on campus, has created a sense of "direct supervision" of the entire school by the Trustees. This further serves to undermine the duties, responsibilities and functions of the President.

F. Prior to the Lead Trustee's appointment to the Board, Trustee Peters reviewed the hiring of all the Kamehameha Schools employees. Since her appointment the Lead Trustee has been allowed by the Trustees to assume, and has exercised, final authority on all the Kamehameha Schools hiring. The Lead Trustee's insistence on reviewing in detail all aspects of the hiring process has resulted in many delays in filling positions and has therefore negatively impacted on Kamehameha School programs and teacher and student morale.

G. Trustee Lindsey and Trustee Jervis have undermined the "Zero Tolerance" policy as to drugs and theft by intervening on behalf of students who were either relatives or the children of friends, without regard for the impact of this intervention on staff and other students. Granting exceptions to established policies on an arbitrary basis further enhances the perception, held by many, of the inequality and favoritism that exists at the Kamehameha Schools.

H. Additionally, the Lead Trustee has involved herself directly with other disciplinary measures imposed by the staff for other rule infractions, again, without regard to the impact of this intervention on staff, morale, and other students.

I. Though viewed as a worthy endeavor by a number of teachers, the initiative to prepare curriculum guides in late July of 1996, as instructed by the Lead Trustee, caused the teachers unnecessary anxiety and frustration for the following reasons:

1. Without prior notice, available teachers were instructed to either return to school during the summer vacation to work with pay to prepare these curriculum guides, or wait until school started and, in addition to teaching, prepare the guides without additional compensation.
2. When the other teachers returned at the start of the year, in addition to their teaching duties, they were initially required to prepare the guides without additional compensation.
3. The deadlines set by the Lead Trustee were unreasonably short.
4. The teachers were not guided by any written format and/or clear instructions, which occasioned numerous revisions due to a lack of such guidance from the outset.
5. The demand that teachers who were just returning to school complete this project within an unreasonable time frame, imposed additional unreasonable and unnecessary demands upon the them as they worked to meet the normal demands associated with the start of the school year.
6. As of September, 1997, because the Lead Trustee had not accepted the curriculum guides submitted for K4, the effort is still ongoing in order to satisfy her review.
7. Although the Curriculum Office in the Table of Organization is situated under Vice President Freitas, the office is de facto under the direct supervision of the Lead Trustee.
8. Through the curriculum document which guides the kindergarten social science section, the Curriculum Office has instructed that Kindergartners must be able to identify the five Trustees by picture and by name.

J. With regard to the review/censorship within the Education Group by the Lead Trustee:

1. The Lead Trustee must review and approve all communications between the KSBE staff and parents, teachers, agencies, governments, and the public.
2. The Lead Trustee must review and approve all materials such as ads, programs. letters, handbooks, flyers, T-shirts, etc.
3. When first appointed in 1993, the Lead Trustee commenced a review to familiarize herself with the activities of the Kamehameha Schools. She has since expanded her review to include such matters as writing style, design, spelling, syntax, formatting, etc.
4. The Lead Trustee has reviewed or has caused to be reviewed by Hawaiian language persons outside of the Kamehameha Schools department, the usage and appropriate application of Hawaiian words and phrases, despite the extensive credentials of the members of that department.
5 The ramifications of these reviews by the Lead Trustee have, in fact, resulted in projects being delayed, tardy, and/or rendered totally futile because their approval was not completed until after the time intended for the usage of said materials. This has not only resulted in needless anxiety, frustration and disappointment on the part of teachers, staff, alumni, parents and students, but also, on occasion, additional costs have been incurred by the program.
6. The reviews as described above, are not only inappropriate, but are also an inefficient use of Trustee time This behavior is indicative of the Lead Trustee's basic lack of understanding as to her roles and responsibilities as a Trustee.
7. The review/censorship practice as carried out by the Lead Trustee undermines faculty and student confidence in their ability to complete tasks within the necessary time frame and has frustrated and demoralized teachers, parents, students and alumni.

K. The Lead Trustee's special relationship with certain staff members has created an environment of favoritism that has blurred the lines of authority at the Kamehameha Schools. These favored individuals are known to flaunt their relationship with the Lead Trustee and to exercise power and influence disproportionate to their specific functions within the Education Group. Empowered by the Lead Trustee beyond their level of actual authority, these employees undermine the actions of their superiors. The Fact Finder notes again that the absence of fidelity to the Organizational Chart and the corresponding chain of command that is attendant thereto, has undermined the administration of the President and managers of the Education Group.

L. The intemperate, inappropriate and at times ill-advised comments of the Lead Trustee have had a negative impact on the morale of the teachers and staff at the Kamehameha Schools. For example, comments such as:

ï "Teachers are overpaid and underworked"
ï "Everyone on campus is incompetent"
ï "Teachers are spoiled"
ï "The Trustees decided that the school should be college prep by the flipping of a coin"

serve as evidence of her insensitivity and lack of leadership capabilities. The Fact Finder specifically finds that these comments are not only disrespectful and demoralizing, but are inappropriate coming from an individual charged with serving as a leader and a model for others to follow.

M. The climate and morale at the Kamehameha Schools is further undermined and viewed as oppressive by the staff and teachers due to the fact that they have little or no confidence in "the leadership" as carried out through the office of the Lead Trustee. Because the President is viewed as the scapegoat for the problems that exist at the Kamehameha Schools (even though in reality he may bear some of the responsibility), the tension that is created by the duality of leadership (i.e., the Lead Trustee on the one hand and the President on the other) creates uncertainty, suspicion, fear and divisiveness among the staff and teachers as well as the students. The "us" vs. "them" mentality pervades the Kamehameha Schools campus and is the major reason that factions exist and divided loyalties are, unfortunately, the norm.

N. As noted earlier, the Lead Trustee has favored certain staff members within the Education Group. These persons are viewed by a vast majority of witnesses as the Lead Trustee's informants. When combined with the other actions and activities of the Lead Trustee, the campus environment of control, oppressiveness, favoritism and arbitrary action is heightened and exacerbated by this situation.

O. The Lead Trustee has publicly reprimanded teachers and staff, further demonstrating her insensitivity to her position and her role as a Trustee. These public reprimands serve only to amplify the negative impact upon the morale of the staff.

P. The Fact Finder specifically finds that management by intimidation, as 5 demonstrated by the Lead Trustee's inappropriate use of her authority, is inappropriate in any educational setting. It is specifically inappropriate in the context of the Kamehameha Schools. The insensitive comments of the Lead Trustee have created a negative perception of all the Trustees and of the Trustees' management of the school.

Q. Regarding the so-called " talk story" sessions conducted by the Lead Trustee, on at least one occasion when it was expected that participants would be allowed to speak freely, a teacher who asked for clarification on a certain matter was chastised publicly for making the inquiry.

R. In the early 1990's the Education Group prepared a strategic plan. In June of 1996 the Board instructed President Chun to prepare another strategic plan. The unreasonable time frame imposed upon the President for the preparation and submission of the Board-requested strategic plan to the Board of Trustees, doomed the completion of the task at the outset. The Fact Finder specifically finds that the initial deadline of 4 months which was imposed on the President was unreasonable. Furthermore, there was little or no guidance given by the Board of Trustees to the President as to the particulars of what was expected in the strategic plan. On January 31, 1997, after rejections, extensions, and a lengthy illness suffered by the President. a strategic plan was submitted to the Trustees. The plan was prepared with the assistance of Dr. Richard Kosaki and Ms. Mildred Kosaki, highly respected educators in Hawaii. This plan was rejected by the Trustees as being " inadequate. "

S. Regarding the Hawaiian Language Department at Kamehameha School, the Fact Finder specifically finds that:

1. The Lead Trustee directed the faculty to teach the Hawaiian Language using "traditional language", as opposed to using new Hawaiian words which are being developed in today's environment. Her directive ignores the emerging lexicon that is developing through discussion among Hawaiian language instructors throughout the State of Hawaii. In other words, the Lead Trustee instructed that only the traditional Hawaiian Language should be taught, without regard for potential and actual modern applications, and that English words be used for modern words such as "computer.

2 The Lead Trustee insists that her directive is consistent with a prior directive of the entire Board. The Fact Finder has not been given, nor has he discovered, any evidence of that past directive.

3. The teaching of the Hawaiian language at Kamehameha Schools is unnecessarily limited since a large majority of the materials and teaching techniques currently being developed in the wider Hawaiian academic community are prohibited from being used at Kamehameha Schools.

4. In spite of written requests for clarification by the Hawaiian Language instructors as to what is meant by "traditional Hawaiian Language," there has been no clarification forthcoming from the Lead Trustee in this regard.

5. A verbal "response" was given saying that only words contained in the Pukui-Elbert Dictionary were to be used.

6. If the directive is implemented by the Hawaiian language instructors, it would result in Kamehameha School graduates, who intend to major in Hawaiian in the University of Hawaii system, to not be adequately prepared due to their lack of modern vocabulary.

7. Despite the vast experience of the Hawaiian language teachers at the Kamehameha Schools, the Lead Trustee has formed her own Hawaiian language committee outside of the Kamehameha Schools to provide her guidance as to what is "proper" usage of the language. Such a practice is presumptuous, insulting and demoralizing to the Kamehameha School Hawaiian language teachers.

T. The Fact Finder finds that a number of the Lead Trustee's actions set forth in this Report were or should have been known to the other four Trustees that comprise the Board. Given the problems which were fermenting on the campus leading up to the recent Controversy, the Trustees knew or should have known that the Lead Trustee was engaged in actions that were detrimental to Kamehameha School and reflected poorly upon the Board of Trustees. It is inconceivable to the Fact Finder that her fellow Trustees acting in concert could not find out what the Lead Trustee was doing on campus. Though the alarms were being sounded by the actions of one of the Trustees. the others either ignored it, or failed to grasp the consequences of it.

U. On April 14, 1994, the staff report regarding the Education Management Group ("EMG") with the support of the Lead Trustee, was presented to the Board of Trustees and approved by Trustees Jervis, Stender, Wong and Lindsey. Previously, over that holiday season, as a demonstration of the project, EMG had provided, at no cost to the Kamehameha Schools, eight teacher/student work stations which in turn were connected via satellite communications to the EMG studio in Scottsdale, Arizona. In spite of concerns about the relative costliness of the hardware, the recurring annual program leasing costs, and its non-existent course ware for the Secondary School, the Administration Group has not brought any concerns to the attention of the Trustees. To date, for the eight EMG workstations including hardware, software and annual program leasing costs, the total costs are approximately $3,359,000.00. Additionally, the current annual program cost is approximately $284,000.00. Staff reluctance to bring this expenditure before the Trustees is bewildering. The Fact Finder can only speculate as to what forces are keeping this information from being brought forward.

V. Regarding the Van Dyke Collection ("the Collection"), the Fact Finder finds that the following sequence of events occurred:

1. Unbeknownst to the other Trustees, sometime approximately in 1995, Robert Van Dyke ("Van Dyke"), the owner of the Collection, approached Trustee Oswald Stender to market the Collection to KSBE.

2. After scrutinizing a sample of forty volumes selected by Van Dyke, with the help of Kamehameha Schools Hawaiian/Pacific Collection Librarian Sigrid Southworth and Kamehameha School Archivist Janet Disk, Trustee Stender declined to present the purchase to the Board in spite of Van Dyke's offer to sell the Collection for $250,000. Trustee Stender declined to purchase the Collection because he believed the Collection was either duplicative or of little value to the Kamehameha Schools, and overpriced for the Kamehameha Schools curricular needs.

3. Shortly thereafter, contact was made between Trustee Lindsey and Van Dyke, and in the course of ensuing conversations, he offered his personal library of materials related to Hawaii and his collection of photographic works created by the late Ray Jerome Baker for $450,000.00. The final purchase price was negotiated in the amount of $422,831.86.

4. Thereafter, the Legal Group with the support of the Lead Trustee, prepared and submitted the staff report to support the purchase of the Collection.

5. On July 16, 1996, though not on the agenda, the staff report was "walked in" to the Trustees' meeting and the purchase was approved by the Trustees in attendance (Trustees Jervis, Wong, and Lindsey). The Trustees approved the staff report and decided to pay the full balance into an escrow account with the execution of a bill of sale subject to total or partial cancellation upon completion of due diligence since the Collection had not yet been inventoried or appraised.

6. The Agreement was executed by the Trustees on October 14, 1996 by Trustees Peters, Lindsey and Jervis.

7. The actual executed Agreement fails to include the due diligence requirements which were specific conditions of the approval of the Agreement by the Board of Trustees.

8 Funds were released to Van Dyke from escrow in excess of the earnest money deposits and before due diligence was completed.

9. The purchase of the Collection was discussed, approved and implemented without consulting Gail Fujimoto, the Head Librarian at Kamehameha Schools, or Dr. Robert Whiting, Director of the Midkiff Learning Center.

10. The Lead Trustee assigned Sigrid Southworth ("Southworth") to inventory, clean, pack, debug, and arrange for transport of the Collection to Midkiff Learning Center for storage.
11. Southworth commenced her work on the Collection in early September 1996 and completed it in early April 1997.

12. During that period of time (with some assistance from Stacy Rezentes, Esq. of the KSBE Legal Group and Albert Jeremiah, Jr., Esq. a private attorney retained on an hourly basis), the books were cleaned, title pages photocopied, inventory notes made and the books were packed. In addition, due to the fact that active mold and insect damage were present, arrangements were made for freezing each carton of books at the Bishop Museum.

13. For the above-noted seven month period, Southworth was not able to perform any of her work with students and she was thus lost as a valuable resource to the Kamehameha Schools students.

14. The actual cost of the Collection includes not only the purchase price, but also the time expenditure by Southworth, Rezentes, and Jeremiah, together with other costs such as rent for the Collection while the inventory was conducted, transportation costs, freezing costs, and costs of supplies and equipment.

W. The Fact Finder finds that the submission of teachers' contracts approximately two weeks prior to the commencement of instruction is insensitive, demoralizing, threatening, and abusive. Other private institutions around the State generally offer teachers' contracts in February or March for the following Fall semester. By depriving the Kamehameha School teachers of the ability to plan their lives, the Trustees have exerted a subtle form of control over the teachers, and have fostered a hostile environment where the teachers believe that they have been manipulated and left with few or no options in the event their contract is not renewed. It should be noted that when viewed in the context of the June 1995 teacher and staff terminations, the teachers' anxiety is profound and, unfortunately, not misplaced. Common sense and common courtesy suggest that the contracts be tendered in a timely manner

X. Regarding the terms and conditions of the contracts, the teachers suggested to the Fact Finder that the standard Kamehameha School teachers' contract does not provide adequate security since the employer or employee can terminate it any time. While it would be a benefit to foster an environment of long-term contractual security for all employees at Kamehameha School, the Fact Finder notes that Hawaii is an " at will" employment state. Accordingly, the employee and the employer have a right conferred to them by public policy to end the employment relationship for whatever purpose or cause they deem appropriate with but a few statutory limitations

Y. The Fact Finder finds that the Lead Trustee's summoning of senior student Kamani Kuala'au from campus to her office in May, 1997, for whatever purpose, was threatening and inappropriate. Publicly, Trustee Lindsey has not expressed any remorse or regret for summoning this student to her office. She does not appear to appreciate the power of her position as a Trustee and the absolute lack of power on the part of a Kamehameha student. Trustee Lindsey's lack of insight in this situation, coupled with her present justification for engaging in this conduct calls into question her judgment.

Z. Trustee Lindsey has interrupted teachers during class time without any concern as to the effect the disruption may cause. This demonstrates a complete lack of respect for the teachers and students.

AA. The Fact Finder finds that although certain questions regarding Kamehameha School programs, etc. needed to be raised - the nature of the Lead Trustee's inquiry, her lack of appreciation for the power and impact of her position as a Trustee, her inquiry at any organizational level regardless of the Organization Chart, the volatility of her personality and her rash utterances, have all combined to create an oppressive and hostile atmosphere on campus.

BB. These chilling practices have in turn created instability which has permeated all levels of the Kamehameha Schools.

CC. The Lead Trustee has often required administrators to comply with her directives without informing them as to the reasons therefore, (or providing reasons which do not comport with sound practice). As a result, these administrators, when questioned by teachers, often respond defensively:

ï "Just do it"

ï "You should feel fortunate that you have a job"

ï "If you don't like it, you can leave"

ï "There are a lot of others that are waiting to have your jobs"

Such utterances have destroyed the mutual respect that teachers and administrators have cultivated over the years. The administrators are themselves concerned about their jobs, and the teachers feel powerless and do not feel that they are supported or appreciated.

DD. The Lead Trustee authorized that the Hawaiian Diet Program under the auspices of Dr. Terry Shintani be conducted at the Kamehameha Schools, and that certain selected employees were to participate. Two sessions were authorized, three weeks duration each, seven days a week, three meals a day. The costs, including food, labor and consultation, exceeded $100,000.00. Said costs were not reimbursed by the participants, and are funded totally by KSBE without Board approval.

EE. Some Trustees have exerted influence over the Elementary School Admission process so that the Admission Committees have been instructed by the Admission Director that names with red dots are to be admitted regardless of qualifications. (Note: these students are neither indigent nor orphaned).

FF. Because the majority of the Board of Trustees had lost their confidence in President Chun, they:

1. Employed Dr. Rockne Freitas in July, 1995;

2. Redistributed a large measure of Dr. Chun's duties and responsibilities to Dr. Freitas;

3. In 1996, eliminated certain entertainment functions previously ratified expressly and/or implicitly by the prior Board of Trustees.

GG. It should be noted that the Board:

1. From 1988 until 1996, approved and increased President Chun's entertainment budget from $20,743.00 to $166,290.00;

2. Approved the construction of the Long House at the President's home (Hale Pelekikena) for entertainment purposes;

3. Approved a full time position within the Food Service Department for a banquet person to assist with entertainment;

4. Approved Dr. Chun's hosting, on the Trustees' behalf, certain investment partners at Dr. Chun's home.


HH. President Chun permitted the demise of the Kamehameha Schools Association (KSA), which association provided a mechanism for the teachers to bring forth their grievances, suggestions, complaints, etc. This action has effectively left the teachers and other Kamehameha School employees without any formal means of being heard.

II. Regarding the Fact Finder's recent meeting with the Trustees on Monday, November 10, 1997, it should be noted that in the July 10, 1997 Order, the Trustees were authorized to delegate to the Fact Finder requisite power and authority to " act as a mediator. " The Court, at paragraph 14 states in pertinent part:

"In the event that the Fact Finder reasonably shall determine that a process of mediation, conciliation or other mechanism of alternative dispute resolution is appropriate, he shall have the authority to proceed...."

Approximately one and a half weeks prior to that date, the Fact Finder informed the Trustees personally and through KSBE General Counsel that he wished to speak with the Trustees regarding some of the recommendations that would be included in his Report to the Court. The Fact Finder indicated that the recommendations shared would be without benefit of the specific findings in support thereof.

At the meeting with the Trustees, the Fact Finder disclosed the following:

1. The Fact Finder's report was going to be filed on or before December 5, 1997;

2. These recommendations were being shared to allow the Trustees the opportunity to consider and adopt the recommendations before the Report was filed.

3. The following recommendations were shared with the Trustees:

a. The practice of having a "Lead Trustee" as to the Education Group is not appropriate;

b. Trustee Lindsey should immediately relinquish her oversight of the Education Group;

c. The Trustees should, through an independent neutral person or committee, arrange with an organization/foundation which is above reproach and beyond KSBE's influence, to independently conduct an audit of both the management and the educational components of Kamehameha School. This audit shall determine the strengths and weaknesses of the Education Group, including a review of programs and personnel, and make recommendations to improve the Education Group.

To date, the Fact Finder is unaware of any positive steps or initiatives that have been undertaken by the Trustees in response to the above-noted recommendations.


VIII. RECOMMENDATIONS

Based upon careful consideration of the totality of the information received and the findings above, the Fact Finder recommends as follows:

A. Trustee Lokelani Lindsey must immediately relinquish or be removed from any position of control regarding the direct oversight, management and/or administration of KSBE education and/or other related functions. Recognizing that she has, as Lead Trustee, inflicted harm upon the Kamehameha School Ohana, the other Trustees should be vigilant to insure that her power over the Education Group is in strict conformity with the general governance exercised by all other Trustees. This means that as one of the Trustees she may make decisions regarding the governance over the Education Group only in conjunction with the other Trustees;

B. The Board must abolish the practice of having a Lead Trustee for the Education Group;

C. The Trustees of KSBE, in order to restore a climate of support, learning, Ohana and community, should immediately:

1. Relinquish their physical office that is located in the administration building;

2. Relinquish their on-campus parking stall(s);

3. When on campus, conduct themselves in such a manner that their presence is viewed as supportive, nurturing, ceremonial, benevolent, and benign;

4. Restore the sense of orderly governance and respect for appropriate authority by adhering to the formal lines of communication and authority set forth in the Table of Organization;

5. Within the next 60 days, schedule a training and education session for the full Board with an outstanding national expert in the field of academic administration. This expert should provide guidance and specific tools to the Trustees in regard to their relationship with the Education Group. These sessions should be held on a regular basis to reconfirm the proper roles and practices of the Trustees, in support of the trusting relationship that should exist between Trustees and their chosen President and the Kamehameha School Ohana;

6. Support and provide the President of Kamehameha Schools with all the necessary means to accomplish the mission of the Kamehameha Schools;

7. Schedule and implement a series of retreats dedicated to: restoring organizational harmony; building better lines of communication; and creating an environment of collaboration, trust, appreciation, respect and aloha. The retreats should include direct participation by all levels of KSBE Ohana (i.e., Trustees, executives, administrators, faculty, support staff, students and alumni.)

D. Furthermore, subject to the Court's instruction, in order to appropriately address the current status and the programmatic and administrative improvements necessary to position the Kamehameha Schools and prepare the children of Hawaii for the challenges of the next millennium, the Trustees should immediately engage an independent, neutral, professionally-qualified expert to nominate, screen and retain a foundation/organization to conduct:

1. A thorough management audit of the Kamehameha Schools education institution. In order to avoid any question as to the credentials/objectivity of the auditing agency and the product of their work, the Fact Finder recommends that the selection, hiring, and supervision of the auditor be subject to the Court's instructions, and that the Trustees be required to delegate all appropriate and necessary authority to that auditor. The resulting audit must be filed with the Probate Court;

2. A thorough audit of the educational functions and programs of Kamehameha Schools so as to assist the Kamehameha School Ohana and Trustees to collaboratively create an educational/operational strategic plan that will position and guide Kamehameha Schools and Hawaii's children into the next millennium. The Fact Finder recommends that the educational audit be conducted in accordance with the protocol set forth above.

E. The Trustees should immediately adopt a policy regarding teacher contract offers, whereby offers are tendered no later than 180 calendar days prior to the commencement of the next school year.

F. The Trustees should immediately adopt and support an internal mechanism or management sponsored association by which grievances, suggestions, complaints, compliments, and recommendations can be brought to the fore and shepherded through the appropriate administrative levels for review and resolution. This system should be open, supportive and constructive in nature.

G. In order to vest the President's position with the appropriate level of authority and accountability to capably perform his tasks and functions and to carry out Pauahi's charge, the Fact Finder recommends that the Board of Trustees adopt a Table of Organization that recognizes the paramount reason for the existence and prudent management of the Trust's assets - to educate Hawaii's children and specifically amend the Table of Organization so that the Principal Executive position (President) of the Education Group is elevated above and senior to the other Principal Executives of the Estate's other groups. In other words, the Trustees should create a Chief Education Officer (CEO). This CEO would not be the sixth Trustee, instead he/she would serve as the person that the entire Kamehameha School Ohana holds accountable for the proper and prudent management of the Kamehameha Schools. The CEO would carry out these responsibilities with fidelity to the Kamehameha strategic plan and mission and in collaboration with and at the direction of the full Board of Trustees.


IX. CONCLUSION

The Fact Finder is deeply honored and humbled by the trust and faith that have been bestowed upon him in this undertaking. The Fact Finder greatly appreciated and welcomed the encouragement, prayers and aloha offered to him.

At times in his labors the Fact Finder was greatly saddened by the suffering, angst and pain brought on by the Controversy. Hopefully, through the Fact Finding process, the healing within the Kamehameha Schools Ohana can begin.

The Fact Finder hopes and prays that his efforts will be the catalyst for positive change for the sake of Hawaii's children and the future of na kanaka maoli.

E malamaOEia na pono o kaOEaina, e naOEopio.

The traditions of the land are perpetuated by its youth.

DATED at Honolulu, Hawaii, December 4, 1997.

[SIGNATURE]

Patrick K.S.L. Yim, Fact Finder

46






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