In the wake of a case involving a Waipahu High business manager who is accused of stealing nearly $500,000 from the school over five years, the Department of Education plans to set up a fraud-reporting hot line, offer training to help staff quickly spot possible theft and beef up its internal auditing arm.

Schools Superintendent Kathryn Matayoshi said the department is also working to review its policies to determine whether any need to be strengthened.

"There are just a range of system improvements that we’re looking at, some immediate," Matayoshi told the Star-Advertiser on Monday.

The state on Nov. 3 charged former Waipahu High business manager Warren S. Harada, 61, with one count of first-degree theft and four counts of money laundering in the theft of $499,769.50 in school funds from July 28, 2005, to Feb. 11, 2010.

Harada, who was fired by the state Dec. 30, faces up to 10 years in prison and a $25,000 fine if convicted.

His first court appearance is scheduled for Nov. 21.

A criminal complaint filed in state Circuit Court said Harada allegedly cashed large checks for $10,000 or more from B&H Photo Video, a New York City-based video and camera equipment company, that were meant for the school. Harada is said to have bought expensive equipment with school funds, then returned it to the company and cashed the refund checks.

Harada was the business manager at Waipahu High for 17 years.

State education officials have declined to discuss the particulars of the case, citing the continuing investigation.

BUT Matayoshi did say Monday the department is working to ensure similar thefts don’t happen again.

She pointed out the department recently hired a new chief financial officer, who will begin "fraud training" for business managers at complex areas and other staff.

It’s unclear when the school hot line will be set up, but Matayoshi said the department wants to ensure calls go to an office that can handle them promptly.

The department also plans to hire an internal auditor to add to the department’s staff of three.

She said the department is interested in not just investigating one fraud, but understanding "how does that relate to improving the systems?" She added, "These fraud cases have been so different, and so we really need to look at it systemically."

The Harada case comes three months after Pearl Ridge Elementary School secretary Denise Hayashi, 41, was sentenced to five years’ probation and 1,500 hours of community service for stealing $68,870 from the school.

Hayashi also paid back the money she stole.

In a December 2010 case, Lehua Elementary secretary Janel Echiberi was ordered to perform 450 hours of community service after stealing $13,000 from fundraisers and donations the school collected for student programs.