The issue needed to be addressed as a matter of urgency, the report found.
In 2013, the ministry streamlined its attendance services awarding the Tai Tokerau Attendance Services, run by the Ngapuhi Iwi Social Services, with the Northland contract.
In the same year, Northland had the highest rate of truancy in the country.
While the service was given $562,970 a year from the ministry, it was one of three regions to receive a funding top-up this year due to high demand.
The ministry declined to say how much extra the service received due to commercial confidentiality.
While the report stated a further report investigating the issue would be ready by March, when contacted by the Northern Advocate the attendance service said it was not yet ready. The service declined to comment further.
Te Tai Tokerau Principals Association president Pat Newman partially attributed the issue to the high proportion of Maori in poverty.
Things like no food, no transportation and inadequate clothing often kept students from school, Mr Newman said.
The issue should be no surprise to anybody. "I totally totally agree that something needs to be done about it."
Northland College principal Jim Luders said school was not a positive experience for many Maori.
"It doesn't surprise me that Maori feel the most disenfranchised," Mr Luders said.
"They've probably had years and years of people telling them 'you're not up to scratch'."
Both principals, as well as Tikipunga High School principal Alec Solomon, said the attendance service was working well.
An important aspect of truancy was to be proactive, Mr Solomon said. "If there looks like there is a trend then we will refer."