The review team also notes that, while the board works well with close support and guidance, trustees continue to demonstrate a limited understanding of their governance role and responsibilities, including their role in managing and supporting principals' performance.
Similar issues and concerns have been apparent over many years, the ERO says.
It recommends intervention. Options include either a statutory manager or a commissioner who will step in if the board is dismissed.
The Ministry of Education is yet to decide what the intervention will be.
"The aim is to intervene no more than is necessary, at the same time as addressing the risks promptly and effectively," Katrina Casey, the ministry's head of sector enablement and support, said.
The collegiate opened when three schools joined in 2004. It has 1200 mainly Maori and Pasifika pupils and is decile 1.
It had a commissioner in 2009 following serious concerns about student safety, the quality of teaching and the board's capability.
Middle school principal and board representative Kallie Ngakuru-Syder said that after reading the latest review, the three principals were keen to make changes.
"We have already identified our next steps," Mrs Ngakuru-Syder said. "We are doing a lot of things that are really successful in each of the schools, and plan to choose some of those to make them collegiate-wide."
She said there was no school in New Zealand with a seamless curriculum and the school was striving to do something unique.
Senior school principal Peter Uys said the school did have literacy and numeracy issues, and battled transience among its low socio-economic community.
But it was committed to breaking down barriers and wanted to work hard to either promote or give extra help to students according to ability, rather than year level.
It also had a plan for its Maori students.
ERO identified the school's 20 per cent Maori population as an area needing attention. Figures show that last year a disproportionate number of Maori students left the school with no qualifications.
Half of boys and 70 per cent of girls reached NCEA Level 2. Nationally, 77 per cent of school leavers had Level 2. Only 8 per cent of Maori boys got UE, compared to 34 per cent for the school overall, and 50 per cent of students nationally.
There were 50 stand-downs per 1000 students last year, compared to a national rate of 20.
Board chairman Ianoe Vine did not want to comment until a final decision on intervention was made.
The school
• Sir Edmund Hillary Collegiate, Otara
• Created when Clydemore Primary School, Bairds Intermediate School and Hillary College joined in 2004
• Asked Sir Edmund (pictured) if it could take his name, and his former home is now at the school site
• Last had a commissioner in 2009 after safety concerns
