The State legislature asked for the audit as a result of its concerns about the agency's recent transition to departmental status and about progress in implementing a consent decree resulting from a lawsuit. The audit used information from previous studies, a survey of a randomly chosen sample of staff, and interviews with management staff at all the correctional facilities and the agency headquarters. Findings showed that many management problems are longstanding, others are to be expected during a reorganization, and most are not unique. However, one unique problem is the geographical separation of Hawaii from mainland correctional organizations and personnel. Many of its problems could be solved by sending task forces to the mainland to bring back effective programs and procedures already in use there. In addition, contacts should also be developed with Asian nations, many of which have new developments to offer in penal policy and practice. 20 references and attached survey results and agency responses.