The Education Review Office Report has found ongoing issues with Ngataki School and Te Hapua School - New Zealand's two most northern schools.
These included the poor quality of education provided for students but also the governance and management capability.
Te Hapua School, about 100km north of Kaitaia, is the furthest north school in the country while Ngataki School is about 50km north of Kaitaia. Between them, they have about 50 students, predominantly of primary school age.
Ministry of Education spokeswoman Katrina Casey said the boards of trustees were dissolved and a commissioner, Harry Burkhardt, appointed for both schools in October 2013.
"The Education Review Office had identified inexperienced and ineffective professional leadership in both schools, and the boards were not well placed to implement the necessary changes," Ms Casey said.