Outdated policies and a lack of staff have hamstrung the Department of Education’s ability to efficiently manage school construction and repair projects, according to an internal audit released Tuesday.

As a result, some neighbor island schools have been using general education funds to pay for urgent campus repairs, essentially taking money away from academics and other educational uses. Other inefficiencies have led to delays and cost overruns for school projects.

The DOE’s facilities development branch "does not have updated, comprehensive and consolidated policies and procedures to manage design and construction projects," according to the 69-page report by Deloitte & Touche. The firm was contracted in 2011 for $451,000 to perform two audits.

The branch oversees approximately $250 million worth of capital improvement projects each year. Separately, it manages a repair and maintenance backlog totaling $266 million.

The audit found that "inefficiencies in capital planning, construction bidding and construction management limit (the branch’s) ability to maximize use of its budget to repair, maintain and construct new school facilities throughout the state."

Public school projects previously were managed by the Department of Accounting and General Services, or DAGS, until 2004, when lawmakers transferred responsibility for Oahu schools to the DOE.

Neighbor island facilities still fall under DAGS, which the audit says is "insufficiently staffed," leading to long delays, costly change orders and budget overruns.

The report said projects are prone to mistakes and poor workmanship because DAGS inspectors are stretched thin and have to manage multiple large projects.

For example, at Paia Elementary on Maui, a fire hydrant was inadvertently installed in the middle of a sidewalk during construction of a new cafeteria building. And on Hawaii island a softball field project at Konawaena High sat idle for at least nine months after completion in part because the wrong bleachers were ordered.

Matt Wolfram, a manager with Deloitte’s Los Angeles office, told the Board of Education’s Audit Committee on Tuesday that neighbor island schools are "likely" to draw from their weighted student formula — or per-pupil funding for school spending — and contract directly with a third party for repair and maintenance work. He said the DOE seems to have adequate staffing to address Oahu schools’ needs.

DAGS said in a written response that it has been losing positions for the program since 2008, adding that "efforts to increase staff have not been successful."

Duane Kashiwai, public works administrator for the DOE’s facilities branch, said the department is looking at hiring project managers for each of the state’s 15 complex areas, which includes a high school and its surrounding feeder schools. The idea is being piloted this year with the Farrington complex.

"That gives us eyes and ears on the ground," Kashiwai said.

The construction report is the latest in a string of audits called for by schools Superintendent Kathryn Matayo­shi in an effort to address department-wide inefficiencies.