How the university must fix serious problems found in audits

(a) In the event an investigation or audit performed by the independent audit committee, internal auditor, or external auditor, or any audit report reviewed by the independent audit committee finds significant issues with an operation or program of the University of Hawaii, including non-compliance or possible non-compliance with any applicable law, ordinance, rule, or regulation, or any applicable board of [regents] policy or executive policy of the university, and the findings recommend or warrant corrective or remedial action to be taken by the university, the independent audit committee shall immediately notify the board of regents in writing of the significant issue and the corrective and remedial action warranted or recommended to be taken. (b) The board of regents, upon receipt of notice from the independent audit committee under subsection (a), shall: (1) Take up the matter as board business at the meeting of the board of regents held immediately following the receipt of notice from the independent audit committee under subsection (a); provided that the meeting and notice thereof shall comply with the requirements of chapter 92; (2) Set the deadline by which the university shall correct or remedy the significant issue; and (3) Require the university to submit to the board of regents a progress report in a frequency the board of regents deems reasonable. (c) The board of regents shall review the progress reports submitted by the university pursuant to paragraph (b)(3) and take appropriate action to ensure timely implementation of the corrective or remedial action. (d) Upon completion of the university's implementation of the corrective or remedial action, the board of regents shall take action to ensure that the underlying significant issue has been appropriately corrected and remedied.