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Home My WebLink AboutCOM 1061.000 2024-2026Clare McAdam JNZV OF N4ly County Auditor �o• " \ q, qTF UF•NO'� C�OUTIN of �C�1TilY�Y OFFICE OF THE COUNTY AUDITOR 120 Pauahi St. Suite 309 Hilo, Hawaii 96720 Phone (808) 961-8386 • Fax (808) 961-8905 E-mail: countyauditor(&hawaiicounty.gov • Website: https://www.hawaiicountygov/auditor G3 113 August 26, 2026 1-4 Honorable Dr. Holeka Goro Inaba, Council Chair and Members of the Hawai'i County Council 1.9 Hawai'i County Council w 25 Aupuni Street Hilo, Hawai'i 96720 Dear Chair Inaba and Hawaii County Councilmembers, n CD C--, —� We respectfully submit our first follow-up review dated August 26, 2026 (the "Review") of the County of Hawai'i's Department of Environmental Management (DEM) Derelict and Abandoned Vehicle Program (DAV) Audit Report No. 2024-02, dated July 3, 2024 (the "Audit Report"). _:-.r The Review was conducted pursuant to Section 3-18(d)(3) of the Hawai'i County Charter to assess whether the audit recommendations have been addressed through appropriate corrective actions. Of the five recommendations from the Audit Report, three have been completed and two remain in progress. Source: Office of the County Auditor Hawai'i County is an Equal Opportunity Provider and Employer Comm. No. W Ref. To: Ref. Dcte AUG 2 l 2026 In response to a draft of this Review, DEM management expressed general agreement with the findings. DEM management's complete response is included on page 11. We appreciate the professionalism, cooperation, and timely assistance by DAV throughout this Review. We commend the DAV team for its continued efforts to strengthen accountability and program oversight. To promote accountability and monitor implementation of audit recommendations, the Office of the County Auditor maintains a remediation tracker, available at: https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county-auditor/remediation- tracker. If you have any questions or concerns regarding this Review or the status of recommendations, please feel free to contact me at (808) 961-8386. Respectfully, County Auditor cc: Dr. C. Kimo Alameda, Ph.D., Mayor William V. Brilhante Jr., Managing Director Jon Henricks, County Clerk Daniel Girvan, P.E., Director Craig Kawaguchi, Deputy Director Mike Rivera, Solid Waste Division Chief Tiffany Wallace, Derelict and Abandoned Vehicle Program Specialist Erica Perez, Environmental Management Commission Chair Environmental Management Commission Members Department of Environmental Management Derelict and Abandoned Vehicle Program This page intentionally left blank Clare McAdam County Auditor E-mail: August 26, 2026 Eauut of'Patuai`z OFFICE OF THE COUNTY AUDITOR 120 Pauahi St. Suite 309 Hilo, Hawai'i 96720 Phone (808) 961-8386 • Fax (808) 961-8905 • Website. ,-, , Honorable Dr. Holeka Goro Inaba, Council Chair and Members of the Hawai'i County Council Hawai'i County Council 25 Aupuni Street Hilo, Hawai'i 96720 Dear Chair Inaba and Hawaii County Councilmembers, We respectfully submit our first follow-up review dated [August 26, 20261 (the "Review") of the County of Hawai'i's Department of Environmental Management (DEM) Derelict and Abandoned Vehicle Program (DAV) Audit Report No. 2024-02, dated July 3, 2024 (the "Audit Report"). The Review was conducted pursuant to Section 3-18(d)(3) of the Hawai'i County Charter to assess whether the audit recommendations have been addressed through appropriate corrective actions. Of the five recommendations from the Audit Report, three have been completed and two remain in progress. 3 Corrective action has been implemented and is operating effectively. 2 Progress has been made, but additional work is required and Auditor will continue to monitor. Source: Office of the County Auditor Hawai'i County is an Equal Opportunity Provider and Employer In response to a draft of this Review, DEM management expressed general agreement with the findings. DEM management's complete response is included on page 11. We appreciate the professionalism, cooperation, and timely assistance by DAV throughout this Review. We commend the DAV team for its continued efforts to strengthen accountability and program oversight. To promote accountability and monitor implementation of audit recommendations, the Office of the County Auditor maintains a remediation tracker, available at: https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county-auditor/remediation- tracker. If you have any questions or concerns regarding this Review or the status of recommendations, please feel free to contact me at (808) 961-8386. Respectfully, County Auditor cc: Dr. C. Kimo Alameda, Ph.D., Mayor William V. Brilhante Jr., Managing Director Jon Henricks, County Clerk Daniel Girvan, P.E., Director Craig Kawaguchi, Deputy Director Mike Rivera, Solid Waste Division Chief Tiffany Wallace, Derelict and Abandoned Vehicle Program Specialist Erica Perez, Environmental Management Commission Chair Environmental Management Commission Members Table of Contents ReviewHighlights.................................................................................................. 1 Summary of Audit Recommendations................................................................. 2 Status of Recommendations......................................................................... 3 - 10 Management Response................................................................................ 11-14 Objective, Scope, and Methodology.................................................................. 15 Appendix A Derelict and Abandoned Vehicle Process .................................................. 16 This page intentionally left blank Review Highlights Implementing these Audit Report recommendations will strengthen the DAV Program and improve employee safety, operational efficiency, and service delivery. Enhanced safety measures, operating procedures, reporting tools, and auction processes will support timely and consistent removal and disposition of abandoned vehicles. The Audit Report recommendations aim to improve program continuity, reduce storage costs, and promote operational consistency through better documentation and cross -training. Implementation will ensure services remain reliable during staffing changes and that procedures are applied uniformly. Department of Environmental Management 1. Priortizing personal protective measures enhances employee safety in the field, reduces the risk of inquiry, and supports effective field operations. z. Implementing a proactive awareness campaign for reporting abandoned vehicles enables quicker identification and removal of abandoned vehicles. 3. Formalizing policies and procedures improves employee safety, ensures consistency, and supports effective program administration. 4. Modernizing vehicle auction processes reduces Collectively, these improvements support a more vehicle storage time and costs, improves efficient, accountable, and responsive Derelict and inventory management, decreases vehicle Abandoned Vehicle Program that better serves the backlogs, and supports timely vehicle disposal. community while protecting public resources and employees. 5. Cross -training staff maintains operational continuity and reduces service disruptions during staff absences or turnover. 11 Review Highlights Summary of Audit Recommendations Definitions • Completed: Fully implemented. Auditor will no longer monitor. • In Progress: Partially implemented. Auditor will continue to monitor. No Recommendation 1. Prioritize Personal Protective Measures Completed The Department of Environmental Management Derelict and Abandoned Vehicle Program should prioritize personal protective measures. 2. Increase Reporting Options for Abandoned Vehicles Completed Implement a proactive campaign to educate residents on reporting abandoned vehicles. 3. Formalize Policies and Procedures In Progress Continue to enhance policies to ensure consistent and safe administration of the program. 4. Modernize Vehicle Auction Processes In Progress Increase the frequency of auctions to reduce the time stored in impound lots. If possible, utilize online tools to establish a more user- friendly and consistent process. 5. Provide Cross -Training for Program Continuity Completed Crosstrain staff for operational continuity during absences. Source: Office of the Countv Auditor 2 1 Summary of Audit Recommendations Recommendation 1: Prioritize Personal Protection Measures The DAV Program should prioritize personal protective measures. Completed Status Update The DAV program has implemented several measures to improve employee safety during field inspections, including: • Safety Policy: Developed a draft Safety Policy in March 2024 to provide guidance on safe work practices. Personal Protective Equipment: Since 2024, required, field staff to wear County -branded, high - visibility safety vests, and safety shoes. • Vehicle Safety: Installed Zonar fleet management devices in October 2024 to improve vehicle monitoring and employee safety. • Communication: Issued two- way radios in July 2026 to improve communication during field inspections. 51 DAV — Puako Boat Ramp, July 2026 • Staffing: The FY 2025-26 supplemental budget approved two additional coordinator positions. In July 2026, DAV requested to fill the approved positions, and DEM Human Resources is currently processing the position allocations. Once filled, the additional staffing is expected to further enhance field safety by supporting a two -person "buddy system" during field inspections. 3 1 Status of Recommendations Credit Card Payment: Evaluating the implementation of credit card payment capabilities to reduce cash handling and improve employee safety. Finance was consulted in October 2024, discussions resumed in June 2026, and DAV continues to work with the Department's Business Manager to implement this service. Conclusion Based on interviews with staff, site visits, ride -a- long observations, and our review of the draft Safety Policy, and implemented safety measures including personal protective equipment, two-way radios, and Zonar fleet management devices, we determined that this recommendation has been implemented. DAV - Ho'olaulima Road, July 2026 We commend DAV for strengthening employee safety through these initiatives. We encourage DAV to finalize and distribute the Safety Policy to reinforce consistent safety practices and provide clear guidance for field operations. We also encourage DAV to continue pursuing technology -based solutions, such as credit card payment, to reduce cash handling, improve accessibility and streamline program operations. [pyj DAV — Nanawale Community Clean Up, August 2026 4 1 Status of Recommendations Recommendation 2 Completed Increase Reporting Options for Abandoned Vehicles Implement a proactive campaign to educate residents on reporting abandoned vehicles, including, but not limited to: • Collaborating to facilitate easy reporting, increase community involvement, and expedite the identification and removal of abandoned vehicles from remote or undesirable areas: o Working with the Information Officer to increase public service announcements o Using social media o Using a 311 helpline, app, or similar services o Using online form Status Update The Hawai'i Police Department enforces abandoned vehicle laws, while DEM's Derelict and Abandoned Vehicles (DAV) Program coordinates the removal process, including storage, legal notification and documentation, and final disposition through owner release, recycling, public auction, or disposal. The Derelict and Abandoned Vehicle Program (DAV) provides for the identification, removal, and temporary 1 storage and processing of all paperwork related to derelict and abandoned vehicles, as weLL as processing, recycling, and auctioning of abandoned vehicles. DAV-Kupuna-Coffee with a Cop, Ainaloa Neighborhood Watch, July 2026 DAV Program To increase program awareness and improve reporting accessibility, the DAV Program Specialist conducts island -wide outreach and education on identifying and reporting suspected abandoned vehicles. Outreach activities include Kupuna meetings, Coffee with a Cop events, Neighborhood Watch meetings, and distribution of informational flyers at community locations. 5 I Status of Recommendations DAV also developed a fillable application' and informational flyer to simplify the reporting process and provide residents with clear guidance on available services. FREE JUNK V_ FREE TOWING FREE DISPOSAL ATTENTION HAWAII'I PROPERTY OWNERS Aloha i ka 'aina. Abandoned vehicles don't belong in our communities. Remove them today! CALL OR VISIT Us ONLINE TO APPLY Hilo! (808) 961-9552 Kona: (808) 327-3539 bit.ly/abandonedhawaii MALAMA I KCU KULFANA I TAKE CARE OF YOUR RESPONSIBILITY W I M W2;: � a , - , r, .M � ,mom I DAV — Free Junk Vehicle Removal In FY 2025-26, DAV processed 584 Vehicle Disposal Assistance Program (VDAP) applications and recycled 436 vehicles. Compared to FY 2024-25, there were 543 VDAP applications and DAV recycled 437 vehicles. Conclusion Based on our review of applicable laws and regulations, program procedures and supporting documentation, site visits, ride -a -long observations, and staff interviews, we determined that this recommendation has been completed. We commend DAV for expanding public outreach and improving awareness of abandoned vehicle reporting. We also encourage the program to continue evaluating technology -based solutions, such as online payment processing, an inventory management system, and enhanced digital reporting options, to further improve accessibility and operational efficiency. 'County of Hawai'i Derelict and Abandoned Vehicle Program. Vehicle Disposal Assistance Program Application. https://www.dem.hawaiicounty.gov/home/showpublisheddocument/307083/638380669007130000. Accessed: 7-16-26 6 1 Status of Recommendations Recommendation 3: In Progress Formalizing Policies and Procedures Continue to enhance policies to ensure consistent and safe administration of the program. Status Update The Derelict and Abandoned Vehicles (DAV) Program has made progress toward formalizing its policies and procedures by: • Drafted Standard Operating Procedures (SOPS) for the Derelict and Abandoned Vehicle Section, which are undergoing internal review and refinement • Developed a Derelict and Abandoned Vehicle Process Flowchart to document and clarify program operations (Appendix A) • Completed a draft Safety Policy, which is undergoing final review and approval by the County's Safety Division Conclusion Based on our review of the draft SOPs, draft Safety Policy, site visits, and staff interviews, we determined DAV has made progress toward implementing this recommendation. We encourage DAV to finalize and implement its policies and procedures to promote consistent, safe, and effective program operations. DERELICTIABANDONED VEHICLE SECTION STANDARD OPERATING PROCEDURES SECTION 1: DERELICTfABANDONED VEHICLE (DAV) SECTION I. PURPOSE This operations nlarual o.ltlines the duties and respersib lities ofthe Derelict'aaanconed Vehicle Secticr the Section: and as:aelishes internal pmcedu•es for its operations. It serves as a reference and guide fcr Secticn staff ensuring :oat all activities ccrlp y'with Hawaii Revised Statutes iHRS`. cun7y Code 1,HCCj, and relevant departmental anc county policies This 'ftanual wi.l oe periodically reviewed and updated by tl:e Section to rmainlain its relevance and accuracy in reflecting current procedures. An electronic version is available in the Abandoned Vehicle server folder. II. MISSION Tc protect p.lclic nealih. safe:'- and the an: rcrment b; re1-ocin; axl recycling dereict and aoanceied :ahiJes anc p'ooer dishosiny c-%:ate e generated from such ven c es. III. OVERVIEW OF THE SECTION The primary aurpose of :ne Sect -Di is tc mar age 115 icing and fir cisocsition cf deielci anc aoanceiat ;enicl=.=_ a :el as a 1-oemant Ii.1 o l- C•.11'e a.9 p'•]•J f a 1115 :oat Ii1'c r` •7t e p 1'.lp e' r e 9l•.le it ,PC Sal 7'a•=[I �eS. The Sect of s fespons cla fci identifying i erloving :enlpe a i sto'ing aoancoied vences. It also hard es :ne a35ccia:ed ;:aand ccnlracts 'e ate•d tc tovi ng re :o iig. and duct o9 ro these rallicles Additionally tl,e Section adm rise's :ne '.�Ehic E D sposal Assistance Program C�.'.�� v:hicn arcs -a: jai' cu1-:'1 'esiders •%: tl- tl'e cisoosal ❑-Ilaiallc: anc ur :ec 'veil- es. ASs star[` IS Sub eci to :ne aval a] I C: cf -L 9•:Is ii the Co.mtf'i Fe9 cle cisposa f.= arc is rovided at the IV. SECTION FUNDING The p•09'a91 is kl'd-;t tl' CL•J9 a scar al feve9.1e fu id kio'� n as the Vehicle Cisl;asal Fure Tn s fur l5 C?SI•Jna:3a to CG:51tl"e -,]vs cf tor-rt fenlc=al disposal. and rec'.cing a- acarcicnec cr discarded :ehi:les anc •vehicle pa-s. C s 'ecenshec annuaf< th'o.1gh -ees collected r:itl• lnotorvehicle registrations. DAV — Standard Operating Procedures 7 1 Status of Recommendations This page intentionally left blank Recommendation 4: In Progress Modernize Vehicle Auction Processes Increase the frequency of auctions for abandoned vehicles to reduce the time stored in impound lots. If possible, use online tools to establish a more user-friendly and consistent process for timely auctions of these vehicles. Status Update DAV reported that the County of Hawai'i is the only jurisdiction in the state conducting its own auctions. No auctions have been held since December 2024. DAV stated that the December 2024 auction required a minimum of four staff members to coordinate and safely conduct. As of July 2026, DAV is recruiting two clerks to support program operations, including auction -related activities. The additional staffing is expected to improve the program's capacity to coordinate and conduct auctions. County of Hawaii News , as 0 as— ■— A Abandoned Vehicle Section's Auction Held in December 2024 Post Date: 11/20/2024 3:24 PM The County of Hawaii Department of Environmental Management's Abandoned Vehicle Section will hold an abandoned vehicle auction in December in Kailua-Kona. All prospective kidders are encouraged to view the vehicles prior to bidding. The vehicles available for auction will be clearly labeled with an item number. In no case will failure to view constitute grounds for the withdrawal of a bid. No person may enter or open any vehicle within the impound lot. Footwear is required when viewing. Vehicle Viewing is on the following days and times: • Friday, December 13, 2024 9:00 a.m. - 4:00 p.m. • Saturday, December 14, 2024 9:00 a.m. - 4:00 p.m. • Sunday, December 15, 2024 9:00 a.m. - 4:00 p.m. Bid rules: Bidders must deposit twenty-five percent (25%) of the bid price in cash or certified funds with their sealed bid. Bids must be at or above the upset price and will be accepted in whole dollar amounts only. Only signed bids will be accepted. Any bidder defaulting on a payment or canceling a bid shall forfeit the deposit. Bid deposits of unsuccessful bidders will be refunded. Bid deposits of successful bidders will be applied to the bid price. Bidders may submit a completed bid form during viewing hours. A valid government -issued photo identification is required for all bills of safe. Vehicle list can be found in the Hawaii Tribune -Herald on Sunday, December 1st, Sunday, December 8" and Tuesday, December 101h and West Hawoi'i Today on Saturday November 30", Saturday, December 7` and Tuesday, December 10`h , or online at www.dem.haw icounty_gov/services/derelict-and-abandoned- vehicles Please call the Abandoned Vehicle Section at 8CB-961-8552 with any questions. Ooc. DAV —Auction Notice DAV also reported that auction frequency depends on the number of vehicles available for auction. While the program remains committed to conducting at least one auction per fiscal year, additional staffing may provide greater flexibility to increase auction frequency. DAV indicated that it would use an inventory -based auction trigger. Once the number of auction - eligible vehicles reaches an established threshold, DAV would assess the staffing and costs required and determine whether an auction is appropriate. This approach would allow the County to hold auctions more frequently when sufficient inventory is available while ensuring that resources are used responsibly. DAV reported it will continue to evaluate technology -based auction solutions, including online platforms, where appropriate. It will also research auction practices used by other counties within Hawai'i and jurisdictions outside the State to identify opportunities to improve the auction process. 8 1 Status of Recommendations Because abandoned vehicles are often acquired without maintenance records, keys, or information regarding their mechanical condition, DAV believes that allowing prospective bidders to inspect vehicles in person promotes transparency and informed purchasing decisions. This approach helps manage bidder expectations and supports the program's mission to reduce abandoned vehicles while minimizing the likelihood that auctioned vehicles will later be abandoned on County roadways. DAV —Kona Impound Lot Conclusion Based on staff interviews, news releases, and auction notice, we determined that DAV has made some progress toward implementing this recommendation. We encourage DAV to continue pursuing technology -based improvements to modernize program operations. Opportunities include implementing an inventory management system, expanding digital reporting options, and automating payment and auction administration. 9 1 Status of Recommendations Recommendation 5: Completed Expand Cross -Training to Ensure Program Continuity DEM management should cross -train staff for operational continuity during staff absences. Status Update DAV has implemented cross -training to improve program continuity and reduce reliance on individual staff. Cross training began in October 2024 in preparation for staffing transitions. By January 2025, existing staff had assumed program responsibilities, with former staff available to provide transition support and guidance. Staffing capacity also improved with the filling of the West Hawaii Coordinator position in July 2024 and the Program Specialist position in February 2026. During vacancies, the coordinators assumed critical program functions to maintain uninterrupted operations. Cross -training activities include coordinator participating in community outreach events to { gain hands-on experience with public interactions, program procedures, and operational responsibilities. The Program Specialist and coordinators also provide island -wide coverage during staff absences to maintain continuity of services. DAV is currently recruiting two clerks to further support program operations including ' auction -related events. DAV-Kupuna Meeting / Coffee with a Cop, Ainaloa Neighborhood Watch, July 2026 Conclusion: Based on staff interviews, site visits, ride -a -long observations, and review of supporting documentation, we determined that this recommendation has been implemented. DAV has established cross - training practices and staffing coverage that support continuity of program operations during staff vacancies and absences. 10 1 Summary of Audit Recommendations This page intentionally left blank Management Response C. Kimo Alameda, Ph.D. ;,',l Daniel Girvan, P.E. Mayor :, Director William V. Brilhante Jr. %:; « Craig Kawaguchi Deputy Director Manoging Director County of Hawaii DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 345 Kekuanao'a Street, Suite 41 Hilo, Hawai'i 96720 cohdem@hawaiicounty.gov Ph: (808) 961-8083 Fax: (808) 961-8086 August 20, 2026 Clare McAdam County Auditor County of Hawai'i 120 Pauahi Street, Suite 309 Hilo, Hawai'i 96720 Aloha Ms. McAdam: The Department of Environmental Management (DEM) appreciates the opportunity to respond to the Office of the County Auditor's first follow-up review of the Derelict and Abandoned Vehicle (DAV) Program Audit Report No. 2024-02. DEM is in general agreement with the findings of the follow-up review and appreciates the Auditor's recognition of the progress made by the DAV Program. Since the original audit, the program has undergone significant changes in staffing, operations, safety practices, documentation, and community outreach. We are pleased that three of the five recommendations have been determined to be completed, with the remaining two in progress. MANAGEMENT RESPONSE TO AUDITOR'S FIRST FOLLOW-UP Recommendation 1—Prioritize Pe!sonal Protective Measures —Completed DEM concurs with the completed status of this recommendation. The Department has implemented several measures to improve employee safety, including high -visibility safety vests, safety footwear, two-way radios, and fleet monitoring technology. The DAV Program has also developed a draft Safety Policy and continues to work toward additional improvements, including reducing the need for employees to handle cash. Employee safety will continue to be a priority as the program grows and field operations evolve. Howai'i County, is on Equal Opportunity Provider and Employer 11 1 Management Response Clare McAdam County Auditor August 20, 2026 Page 2 Recommendation 2 — Increase Reporting Options for Abandoned Vehicles — Completed DEM concurs with the completed status of this recommendation. Because enforcement and initial reportingof abandoned vehicles fall underthe Hawai'i Police Department, DEM continues to work within that process while focusing on areas where the Department can improve public awareness and accessibility. The DAV Program has expanded community outreach through Neighborhood Watch meetings, Kupuna meetings, Coffee with a Cop events, community cleanups, informational materials, and other opportunities to educate residents about abandoned vehicles and the Vehicle Disposal Assistance Program (VDAP). DEM will continue looking for opportunities to improve public access to information and services. Recommendation 3 — Formalize Policies and Procedures — In Progress DEM concurs with the in -progress status of this recommendation. The DAV Program has developed draft Sta,idard Operating Procedures, a program process flowchart, and a draft Safety Policy. These documents are currently being reviewed and refined. Our goal is not only to complete written policies and procedures, but to make sure they accurately reflect current operations and can be used as practical tools for staff training, consistency, and program continuity. DEM will continue working toward finalizing and implementing these documents. Recommendation 4 — Modernize Vehicle Auction Processes — In Progress DEM acknowledges the in -progress status of this recommendation and remains committed to evaluating ways to improve the auction process. The Department continues to believe that auction frequency should take into consideration available inventory, staffing, cost, and the condition of vehicles available for sale. Unlike traditional surplus property, abandoned vehicles often come to the County without keys, maintenance records, or information regarding their mechanical condition. In some cases, registered or legal owners may also reclaim vehicles before they become eligible for auction. As a result, the number of vehicles available for auction can fluctuate significantly. Howai'i County is an Equal Opportunity Provider and Employer 12 1 Management Response Clare McAdam County Auditor August 20, 2026 Page 3 DEM stands by its position that auctions should be conducted when there is sufficient inventory to make the process fiscally responsible and when doing so is in the best interest of the County. Establishing a set auction schedule without considering available inventory and the costs associated with conducting an auction could result in the County expending resources that outweigh the benefit of holding the auction. DEM also believes there is value in allowing prospective bidders to inspect vehicles in person. This provides greater transparency regarding vehicle condition and helps reduce the possibility of vehicles being purchased without a clear understanding of their condition and later being abandoned again in the community. At the same time, DEM recognizes that th- current auction process can be improved. The Department will continue evaluating online and technology -based options and researching practices used by other counties in Hawai'i and jurisdictions outside the state to identify opportunities to improve efficiency. As additional staffing becomes available, the program will also evaluate opportunities to conduct auctions more efficiently and, when sufficient inventory is available, more frequently. As part of these efforts, DEM will also explore adding dedicated auction information to its webpage to help provide the public with a better understanding of the auction process. This could provide greater transparency and make general auction information more accessible to the public. DEM remains committed to improving the auction process while balancing efficiency, fiscal responsibility, available resources, and the best interests of the County and the community. Recommendation 5 — Provide Cross -Training for Program Continuity — Completed DEM concurs with the completed status of this recommendation. Cross -training has become an important part of DAV operations. Staff provide coverage across districts when needed, coordinators have been given opportunities to learn additional program functions, and staff participate in community outreach and other activities outside of their normal day-to-day assignments to broaden their understanding of the program. The Department recognizes that cross -training is an ongoing effort and will continue providing opportunities for staff to learn additional responsibilities and maintain continuity during vacancies and absences. Howai'i County is on Equal Opportunity Provider and Employer 13 1 Management Response Clare McAdam County Auditor August 20, 2026 Page 4 DEM appreciates the time and effort the Office of the County Auditor has put into both the original audit and this follow-up review. The process has provided an opportunity for us to take a closer look at our operations, recognize where improvements were needed, and document the progress that has been made. While there is still work to do, we are proud of how far the DAV Program has come since the original audit. We remain committed to completing the outstanding recommendations and continuing to look for practical ways to improve safety, efficiency, accountability, and service to our community. We also appreciate the professionalism and collaborative approach of the audit team throughout this process. Mahalo for the opportunity to provide our response. Sincerely, Daniel Girvan, P.E. Director, Department of Environmental Management Howai'i County is an Equal Opportunity Provider and Empioyer 14 1 Management Response Objective, Scope, and Methodology Objective Did the Department of Environmental Management's (DEM) Derelict and Abandoned Vehicle (DAV) Program implement the 2024 Audit Report recommendations? Scope This Review covered the period from August 2024 through August 2026. The Review was limited to assessing the status of corrective actions related to the 2024 Audit Report recommendations and does not address new issues or matters outside the original audit scope. Methodology To verify the status of the audit recommendations, we: • Obtained and reviewed sufficient and appropriate evidence to support our conclusions • Worked with program staff to verify management responses and corrective actions • Reviewed applicable laws, regulations, policies, and governance requirements • Tested internal controls and control environments • Conducted site visits and ride -a -long observations to assess program operations, monitoring practices, and safety measures • Remained alert to indicators of fraud, waste, and abuse • Identified exceptions and areas for improvement This first follow-up review was conducted by Maxinne Pacheco and Melissa Duarte. Questions or requests for additional information may be directed to the Office of the County Auditor at ci _iityc,.�itor@hawaiicounty.gov or (808) 961-8386. Mahalo. 15 I Objective, Scope, and Methodology 1 Residents must report derelict/ abandoned vehicles to the Police Departments non -emergency line at 4 AV Staff inspection the vehicle to IIIIII ensure all information on the police report match the vehicle at the location and determined if the vehicle with be impounded or sent straight to scrap for recycling/disposal. III IMPOUNDED ' VEHICLES A police officer will be dispatched to the vehicles to make the initial inspection. If the vehicle is in violation, the officer will mark the vehicle as abandoned and the 24-hour waiting period begins. 5 Tow requests are sent to contracted tow companies and vehicles should be picked up within 72-hours of the request. If the vehicle is not moved within 24-hours, police report is generated. Once the officers completes the report and it is approved, it is sent to the Derelict/Abandoned Vehicle (DAV) Office for review and final disposition. GIf the vehicle is not at the location indicated the police report or moved to private property the case is closed and no further action is taken. Letters are sent to the last known registered owner on record with the Vehicle Registration and Licensing Division. Registered owners have 10-30 days to claim their vehicles, unclaimed vehicles are sent to scrap or sent to public auction. This page intentionally left blank County of Hawai'i Fraud, Waste, and Abuse Hotline The Office of the County Auditor maintains a Fraud, Waste, and Abuse Hotline that provides County employees and members of the public with a confidential way to report suspected fraud, waste, abuse, or misuse of County resources within any County department, agency, or facility. All reports are taken seriously and reviewed promptly. Information submitted through the hotline supports the public interest and helps promote transparency, accountability, and responsible stewardship of public resources. To submit a report, call (808) 961-8386 or click on the QR code. 0 13