KEY POINTS:
Education authorities have called for a Maori immersion school's board of trustees to be dissolved and a specialist commissioner appointed.
An Education Review Office report on Te Kura Kaupapa Maori o Kaikohe details numerous issues at the school - including allegations of bullying, cheating and financial problems.
It has been a topic of discussion in the Far North, with community leader Sonny Tau emailing the school's wider whanau yesterday that the report "makes shocking reading".
A police spokeswoman said a complaint about a "sexual activity" against a senior staff member, who the board of trustees suspended from the school, was investigated but had been reported outside the statute of limitations.
School board of trustees member Lahni Sowter said principal Deborah Mutu had been on paid leave since October while an employment issue was being worked through.
She said another staff member - understood to be Mrs Mutu's husband and respected Maori educator Hone Mutu - was also on paid leave but would not provide details.
The board issued a comprehensive statement in response to the ERO report, claiming it inherited an "organisational disaster" when elected last year and said it could not reconcile its knowledge of the kura with much of the ERO's report.
The board - chaired by Vanessa Whiu - wanted to remain and did not want a commissioner to be appointed.
"No one could have made any more progress in the past 12 months than this board," it wrote."To appoint a commissioner at this time would set the school back 12 months."
A spokeswoman for Education Minister Chris Carter said he was considering the matter.
The Ministry of Education was preparing a report for Mr Carter.
The kura, a decile 1 school, has about 185 students ranging from new entrants to Year 13 students and 19 teachers.
The ERO report said a limited statutory manager was appointed from late 2003 to early 2004 to address financial management concerns.
An auditor's review of the kura's financial statements from 2006 noted a deterioration in its financial position and identified board expenditure that "may be wasteful or shows a lack of probity or financial prudence", according to the report.
A new board was elected last year.
In April the ministry reported the financial position of the school had improved.
The ERO report said students appeared keen to learn and New Zealand Qualifications Authority data showed improvement between 2004 and 2006 in students' NCEA participation.
It said one staff member was seen speaking "inappropriately" to children in class and some former students, parents and teachers reported physical, emotional and text bullying of students.
NOT GOOD ENOUGH
* 2006 financial statements included "excessive" hospitality or entertainment spending, failure to obtain competitive tenders for large contracts and advances to staff.
* Some ex-students, parents and teachers reported to the ERO incidents of physical, emotional and text bullying of students.
* Some senior students enrolled in a tertiary institution plagiarised work from other students who had completed courses.