HomeMy WebLinkAbout2024-02 DEM Abandoned and Derelict Vehicle Program
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Hawai‘i County is an Equal Opportunity Provider and Employer
July 3, 2024
Honorable Heather Kimball, Council Chair
and Members of the Hawaiʻi County Council Hawaiʻi County Council 25 Aupuni Street
Hilo, Hawaiʻi 96720
Dear Council Chair Kimball and Council Members,
In accordance with generally accepted government auditing standards and the Hawaiʻi County
Charter Section 3-18(d)(2), the Office of the County Auditor conducts or causes to be conducted
performance and/or financial audits of the funds, programs, services, and operations of any
county agency, executive agency, or program, as set forth by the county auditor in an annual audit
plan that shall be transmitted to the county council and the mayor and file with the county clerk
as a public record.
We have completed our engagement of the Derelict and Abandoned Vehicle (DAV) Program. The
objective was to determine if the Department of Environmental Management Solid Waste Division
administers its Derelict/Abandoned Vehicle Program in accordance with Hawaiʻi Revised Statutes
§290 and other relevant governance to identify, remove, and dispose of abandoned vehicles,
thereby enhancing public safety, protecting the environment, and maintaining community
aesthetics.
While the program continues to improve its value to the community, we identified improvement
opportunities, which led us to make five recommendations.
We appreciate the program's unrestricted access to sites, information, personnel, and
coordination throughout the audit. The cooperation was exceptional.
In response to a draft of this report, management expressed general agreement with our audit results.
To improve government accountability and ensure audit recommendations are implemented or
resolved, we will continuously monitor the status of recommendations using our remediation
tracker. To view the department's status, visit us at https://www.hawaiicounty.gov/our-
county/legislative/office-of-the-county-auditor.
County of Hawaiʻi Office of the County Auditor 120 Pauahi St., 309 Hilo, HI 96720 F 808.961.8905 www.hawaiicounty.gov
Tyler J. Benner
County Auditor County of Hawaiʻi Office of the County Auditor Ph 808.961.8386
If there are any questions or concerns about the status of the recommendations discussed, feel
free to contact our office at 808.961.8386.
Respectfully,
Tyler J. Benner
County Auditor
cc: Mitchell D. Roth, Mayor Deanna Sako, Managing Director Diane Nakagawa, Finance Director
Jon Henricks, County Clerk Ramzi Mansour, Director of Environmental Management Brenda Lokepa-Moses, Deputy Director of Environmental Management Michael Kaha, Solid Waste Operations Deputy Division Chief Juliana Holzman-Escareno, Derelict/Abandoned Vehicles Specialist
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Table of Contents
Report Highlights ..................................................................................................................... 1
About Us ................................................................................................................................... 2
Objective, Scope, and Methodology ....................................................................................... 3
Chapter 1 Introduction ............................................................................................................. 4
Commendations & Noteworthy Events .................................................................................12
Chapter 2 Audit Results ..........................................................................................................15
Limited Personal Protective Measures........................................................................... 15
Recommendation 1: Prioritize Personal Protective Measures ............................17
Lack of Reporting Options for Abandoned Vehicles ....................................................... 18
Recommendation 2: Increase Reporting Options ...............................................20
Gaps in Policies and Procedures ................................................................................... 21
Recommendation 3: Enhance Written Policies and Procedures .........................22
Inconsistent Vehicle Auction Processes ......................................................................... 23
Recommendation 4: Modernize Vehicle Auction Processes ...............................24
Lack of Cross-Training for Program Continuity .............................................................. 25
Recommendation 5: Provide Cross-Training for Program Continuity ..................26
Chapter 3 Fraud, Waste, and Abuse ......................................................................................27
Conclusion .................................................................................................................... 28
Chapter 4 Management Response .........................................................................................29
1 | Report Highlights
Why We Conducted This Audit
The Office of the County Auditor (OCA) conducted
an annual risk assessment that highlights certain risks, including:
• Impacts on public health and safety
• Compliance with state and county laws and
departmental rules
• Direct interaction with the public
What We Found
The Derelict and Abandoned Vehicle Program has made improvements to identify and remove vehicles. However, the program has overlooked
fundamental documentation, processes, and employee safety elements. Finding 1: Limited Personal Protective Measures Finding 2: Lack of Reporting Options for Abandoned Vehicles Finding 3: Gaps in Policies and Procedures Finding 4: Inconsistent Vehicle Auction Processes Finding 5: Lack of Cross-Training for Program Continuity
We Recommend
1. DEM Solid Waste Division prioritizes personal
protective measures.
2. DEM implement a proactive campaign to
educate residents on reporting abandoned
vehicles but not limited to:
• Working with the Information Officer to
increase public service announcements
• Using social media
• Using a 311 helpline, app, or similar
services
• Using online form
3. DAV management continue to enhance
procedures to ensure consistent and safe
administration of the program.
4. DAV increase the frequency of auctions for
abandoned vehicles to reduce time stored in
impound lots; establish user-friendly online
tools for consistent and timely auctions.
5. DEM management cross-train staff for
operational continuity during absences.
Performance Audit of the Department of Environmental Management
Derelict and Abandoned Vehicle Program
County of Hawaiʻi
Office of the County Auditor
July 2024
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2 |About Us
About Us
Mission
It is our mission to serve the Council and citizens of Hawaiʻi County by promoting accountability, fiscal integrity, and openness in local government. Through performance and/or financial audits of County agencies and programs, the Office of the County Auditor examines the use of public funds, evaluates
operations and activities, and provides findings and recommendations to elected officials and citizens in an objective manner. Our work is intended to assist County government in its management of public resources, delivery of public services, and stewardship of public trust.
Audit Authority
Hawaiʻi County Charter §3-18 establishes an independent audit function within the Legislative branch through the Office of the County Auditor. Purpose This engagement aimed to verify if the Department of Environmental Management's derelict and abandoned vehicle processes are effectively administered and complies with state and local regulations. Performance Audit Definition
Performance audits provide objective analysis, findings, and conclusions to assist management and those charged with governance and oversight with, among other things, improving program performance and operations, reducing costs, facilitating decision-making by parties responsible for
overseeing or initiating corrective action, and contributing to public accountability.
Our objective in performance auditing is to improve public services provided by the County government. We do this by recommending specific actions addressing the issues we raised and by providing valuable information to the public, the administration, program leadership, the county council, and the mayor.
3 |Objective, Scope, and Methodology
Objective, Scope, and Methodology
Audit Objective
Does the Department of Environmental Management Solid Waste Division administer its Derelict/Abandoned Vehicle Program in accordance with Hawaiʻi Revised Statutes §290 and other relevant governance to identify, remove, and dispose of abandoned vehicles, thereby enhancing public
safety, protecting the environment, and maintaining community aesthetics? Scope
The audit was conducted from August 2023 to June 2024
• Reviewed inventory data from FY 2016-17 to FY 2022-23
• Reviewed financial data from FY 2016-17 to FY 2021-22
• Reviewed data from the Vehicle Disposal Assistance Program between FY 2018-19 to FY 2023-24 Areas not evaluated
• We did not evaluate cash handling processes conducted on impound lots
• We did not evaluate financial transactions conducted for abandoned vehicle auctions Methodology To accomplish our objective, we:
• Reviewed HRS § 290 and subsections relevant to the subject matter
• Reviewed the department's written rules, policies, and procedures
• Reviewed GAO Green Book, OSHA standards, and best practices
• Developed an understanding of the department's internal control system, processes, practices,
and document flows
• Participated in two ride-alongs and site visits with DAV staff to observe various work processes
• Interviewed appropriate staff
• Gained an understanding of the Vehicle Disposal Fund program sustainability
• Assessed controls over the abandoned and derelict vehicle processes as follows: o Vehicles identified for extraction
o Towing and removal o Determination of disposition versus destruction o Impound storage costs
• Monitored and tracked inventory
• Evaluated how collected fees are managed and tracked
• Noted any exceptions and identified opportunities/areas for improvements,
• Was mindful of potential fraud, waste, and abuse during the audit
We conducted this performance audit in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives.
We believe the evidence obtained provides a reasonable basis for our findings and conclusions based
on our audit objective.
4 |Introduction
Chapter 1
Introduction
What is an Abandoned Vehicle?
A vehicle that is unlawfully parked and left unattended for a continuous period of more than twenty-
four hours on any public highway, public property, or private roads that are located within any ungated
subdivision, where roads are open to and used by the public.
What is a Derelict Vehicle? A vehicle that has been abandoned on property owned, managed or administered by the authority, if
a part has been removed or material damage to the vehicle has rendered the vehicle inoperable and
one of the following conditions exists:
1. The vehicle is registered for the current registration period and the registered and legal owners
no longer reside at the addresses on the record with the County Director of Finance;
2. The vehicle has been registered for the current or previous registration period and the
registered and legal owners disclaim ownership, or a notice of transfer has been submitted by
the registered and legal owners and recorded with the director of finance and the new owner
has not transferred the title or registration into the new owner's name within thirty days of
release;
3. The vehicle identification number and license plates have been removed so as to nullify efforts
to locate or identify the current registered and legal owners;
4. The vehicle has not been registered for the previous twelve-month period; or
5. The vehicle registration records of the county director of finance contain no record that the
vehicle has ever been registered in the County.
What is the Derelict and Abandoned Vehicle Program (DAV)?
The Derelict and Abandoned Vehicle Program (Program) provides for the identification, removal, and
temporary storage and processing of all paperwork related to derelict and abandoned vehicles, as well
as processing, recycling, and auctioning of abandoned vehicles in accordance with program
procedures.
What is DAV's Purpose? A program which has operated since inception in 1979 and later incorporated by the Department of
Environmental Management for the purpose of disposing of abandoned or derelict vehicles and
implementing a public outreach program to educate the public about the disposition of such vehicles.
5 |Introduction
What are the Program Objectives? 1. Coordinate the removal of vehicles from public and private roadways classified as derelict or
abandoned.
2. Monitor the program and contracts to ensure that all derelict/abandoned vehicles are being
processed and recycled in compliance with Hawaiʻi Revised Statutes, Hawaiʻi County Code,
Department of Health Requirements, and Departmental Rules.
3. Continue the planning and design of the environmental cleanup for the Hilo Scrap Metal
Facility.
4. Conduct at least one auction of eligible vehicles per year.
5. Provide Vehicle Disposal Assistance Programs for the public.
What is the Vehicle Disposal Assistance Program (VDAP)? There is established a vehicle disposal assistance program to assist Hawai'i County residents with disposal of vehicles. Assistance shall be contingent on the availability of funds within the County's vehicle disposal fund and at the discretion of the director. What is VDAP's Purpose? The Vehicle Disposal Assistance Program (VDAP) assists residents of Hawaiʻi County with the towing
and disposal fee of junk vehicles based on available funding.
Mission Statement To protect public health, safety, and the environment by removing and recycling derelict/abandoned
vehicles and properly disposing of waste generated from such vehicles.
6 |Introduction
Organization Structure The program operates within the Department of Environmental Management's (DEM) Solid Waste
Division.
Source: Courtesy Department of Environmental Management
FY 2024-25 Staffing The program is made up of four positions, with an additional position currently requested:
Hilo Office
• Derelict and Abandoned Vehicle Specialist (Supervisor)
• Derelict/Abandoned Vehicle Coordinator (Inspector)
• Clerk III Kona Office
• Coordinator/Vehicle Inspector (Vacant)
• Clerk III (Requested)
Department of Environmental Management
Solid Waste Division
Programs
Recycling ProgramsDerelict/Abandoned Vehicle Program
7|Introduction
How is the Program Funded? The program is funded through a Special Revenue Fund called the Vehicle Disposal Fund and is used
to accumulate money for the towing, removal, disposal, and recycling of abandoned or discarded
automobiles and automobile parts. Financing is provided through annual fees collected with motor
vehicle registrations.
Revenue is comprised of five primary sources:
• Vehicle Disposal Fee
o $12.00 per registered vehicle per year
• Towing Fee
o Vehicles towed to County impound lots, amounts vary by conditions, location, and
contractor
• Vehicle Storage Fee
o $10.00 per day charged at County impound lots
• Sale of Abandoned Vehicles
o Proceeds from vehicle auctions, amounts vary by bid
• Sundry and Miscellaneous
Revenues
Fiscal Year
Licenses and Permits Charges for Services Miscellaneous Revenue
Total
Disposal Fees Towing Charges Storage Fees Auction Sales Sundry & Misc.
FY 2016-17 $2,282,664.00 $2,723.60 $840.00 $12,937.50 $0.00 $2,299,165.10
FY 2017-18 $2,382,252.00 $3,617.00 $2,160.00 $24,242.00 $10,483.39 $2,422,754.39
FY 2018-19 $2,444,784.00 $6,130.50 $3,467.00 $31,692.00 $818.69 $2,486,892.19
FY 2019-20 $2,364,625.00 $4,956.85 $3,067.50 $0.00 $393.00 $2,373,042.35
FY 2020-21 $2,437,248.00 $5,315.11 $3,580.00 $0.00 $0.00 $2,446,143.11
FY 2021-22 $2,515,179.00 $18,713.99 $5,770.00 $77,364.00 $1,489.71 $2,618,516.70
TOTAL $14,426,752.00 $41,457.05 $18,884.50 $146,235.50 $13,184.79 $14,646,513.84
Table 1: EDEN Fresh approved budget hardcopy reports from FY 2016-17 to FY 2021-22, compiled courtesy of County Auditor
8 |Introduction
How is the Money Spent? Expenditures are comprised of five primary sources:
• Vehicle Disposal
o Salaries and wages
o Vehicle and parts disposal (i.e., Operations: towing, disposal, security, phones, etc.)
o Vehicle and parts disposal equipment (i.e., Operational equipment: vehicles,
computers, printers, office furniture, etc.)
• Inter-department
o Transfer to Capital Project Fund
• Pensions and Contributions
o Pension Accumulation
Vehicle Disposal Fund Expenditures
Ending Fiscal Year Vehicle Disposal Inter-Department Pensions & Contributions Total
FY 2016-17 $1,466,478.75 $0.00 $33,922.60 $1,500,401.35
FY 2017-18 $1,188,055.63 $0.00 $38,065.15 $1,226,120.78
FY 2018-19 $1,727,885.71 $0.00 $41,490.51 $1,769,376.22
FY 2019-20 $1,367,489.41 $298,786.46 $37,919.54 $1,704,195.41
FY 2020-21 $1,884,273.41 $302,194.00 $45,305.13 $2,231,772.54
FY 2021-22 $3,186,247.01 $582,220.00 $46,580.96 $3,815,047.97
TOTAL $10,820,429.92 $1,183,200.46 $243,283.89 $12,246,914.27
Table 2:EDEN Fresh Expenditure Status Report FY 2016-17 to FY 2021-22, compiled courtesy of County Auditor
9 | Introduction
Where are Abandoned Vehicle Impound Lots Located? There are three abandoned vehicle impound lots island-wide:
Hilo Abandoned Vehicle Facility 1651 Ho'olaulima Road
Hilo, HI 96720
• Zone 1
o Kaʻū o Puna o North Hilo
o South Hilo Kona Abandoned Vehicle Facility 74-598 Hale Mākaʻi Place Kailua-Kona, HI 96740
• Zone 2 o Kaʻū o North Kona
o South Kona Pu'uanahulu Abandoned Vehicle Facility 71-111 Queen Kaahumanu Highway Waikoloa, HI 96738
• Zone 3 o Hamakua o North Kohala
o South Kohala DAV and VDAP Processes The distinction between DAV and VDAP lies in the status of vehicle ownership. DAV refers to
vehicles abandoned by individuals. VDAP involves vehicles whose owners still possess them but
are actively working to properly dispose of their vehicle or private property owners looking to
dispose of derelict vehicles left on their property.
Reporting 1a. DAV vehicles are generally flagged in one of two ways. The public can call HPD to report
vehicles they believe are derelict/abandoned, or HPD can initiate tagging while on patrol.
Regardless of the method, the process begins with a notice on the vehicle when flagged.
After a 24-hour waiting period, HPD checks if the vehicle was moved in accordance with
HRS § 290-1, which states, "If a vehicle has been left unattended for a continuous 24-hour
period, a notice is conspicuously posted on the vehicle."
Source: Google Map, compiled courtesy, County Auditor
10 | Introduction
1b. VDAP – Vehicle owners may surrender their vehicle or apply for derelict vehicles to be
removed from their private property by filling out an application, which may be obtained
from the Hawaiʻi County website at
https://www.dem.hawaiicounty.gov/services/derelict-and-abandoned-vehicles
The following tables highlight program progression.
Vehicle Disposal Assistance Program
Timeframe Vehicles Towed Per Residence
Who Paid Disposal Fees? Who Arranged for Towing? Who Paid the Towing Fees?
8/2018 to 8/2020 1 County Owner Owner
9/2020 to 7/2023 2 County Owner Owner
8/2023 to Present 2 County County County
Table 3: Vehicle Disposal Assistance Program, courtesy Department of Environmental Management
VDAP Applications and Tows
Fiscal Year Applications Received # of Tows
8/2018 to 8/2020 784 676
9/2020 to 7/2023 847 632
8/2023 to 4/2024 550 411
Table 4: VDAP Applications and Tows, compiled courtesy of County Auditor Inspecting
2a. DAV-Per HRS § 290-12, The Hawaiʻi County Police Department (HPD) initiates a report.
When completed, reports are approved and transmitted to DAV. The Clerk accesses
reports daily, extracts specific data, and Coordinators perform vehicle inspections on the
vehicles identified.
Source: Hawaiʻi County Police Department
11 | Introduction
2b. VDAP-Coordinators schedule visits to residents requiring vehicle inspections, verify
conditions and match application details.
Towing
After the inspection, a contracted towing company delivers vehicles to one of three impound lots
or the scrap yard.
3a. DAV-The County frontloads towing charges; if the vehicle is returned to the owner, the
owner is responsible for repayment.
3b. VDAP-Towing of up to two vehicles per year is free of charge to the public.
A written notice shall immediately be sent by registered or certified mail to the legal and registered
owner of the vehicle per HRS § 290-2. A notice need not be sent to a legal or registered owner
or anyone with an unrecorded interest in the vehicle whose name or address cannot be
determined.
Inventory
4a. DAV – Impound lots are inventoried once per week, and vehicles are inspected and
marked. All vehicles are validated using a division-maintained database.
4b. VDAP – Vehicles are immediately taken to be scrapped and are not entered into
inventory.
Disposal
5a. DAV – Disposal happens in one of two ways. Either vehicles are scrapped or sold at
auction per HRS § 290-3. Vehicles may be disposed of by public auction, oral tenders, or
sealed bids after a public advertisement is made once in a newspaper of general
circulation, provided that the public auction shall not be held less than five days after the
publication has been made. Auctions are conducted in accordance with DEM Rule 2-9-
4. A typical auction disposes of approximately 40 vehicles. Where no bid is received, the
vehicle may be sold by negotiation, disposed of, sold as junk, or donated to any
governmental agency.
5b. VDAP – Vehicles are immediately taken to be scrapped with disposal paid for by DAV.
12 | Commendations and Noteworthy Events
Commendations & Noteworthy Events
We commend the Department of Environmental Management's Solid Waste Derelict and
Abandoned Vehicle Program for its proactive efforts to reduce abandoned vehicles on public
roads and beautify the environment.
Beautification Projects
• 70 vehicles removed from the Puna District between December 2022 and August 2023
through collaborative efforts with the Hawaiʻi County Police Department.
• 58 vehicles removed from Hawaiian Oceanview Estates in July 2021
• 383 vehicles removed from Makuʻu Hawaiian Homes in September 2020
Source: Department of Environmental Management Solid Waste Division Derelict/Abandoned Vehicle Section
13 | Commendations and Noteworthy Events
Kaheakeola Place (Makuʻu Hawaiian Homes)
Before Beautification Project
Source: Department of Environmental Management Solid Waste Division Derelict/Abandoned Vehicle Section
14 | Commendations and Noteworthy Events
Kaheakeola Place (Makuʻu Hawaiian Homes)
After Beautification Project
Source: Department of Environmental Management Solid Waste Division Derelict/Abandoned Vehicle Section
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15 | Audit Results
Chapter 2
Audit Results
Limited Personal Protective Measures
Audit Activity To assess DAV's provision of personal protective measures during field inspections, we:
• Reviewed OSHA Act of 1970 SEC. 5. Duties
• Participated in two ride-alongs with DAV staff, where we observed the following
inspections:
o Vehicle inspections on public roads
o Vehicle disposal assistance program on personal properties
o Vehicle inspections in County impound lots
• Interviewed employees
• Requested safety-related policies and procedures
Overview The County is responsible for providing a workplace free from serious hazards and complying
with standards, rules, and regulations issued under the OSHA Act of 1970 SEC. 5. Duties.
Personal protective measures ensure employee safety, health, legal compliance, and morale.
Prior to 2018, DAV inspected or released vehicles together in pairs for safety reasons. In 2018,
coordinators were assigned individual tasks to enhance coverage. While the change increased
efficiency, it also increased employee risk. Inherent risks include environmental factors, location,
public interaction, and policies and procedures:
Environmental Factors
Risks include physical injuries from working in hazardous terrain and around the presence of deteriorating vehicles. Vehicles are often deposited under suspicious circumstances, heightening the potential for dangerous encounters. Coordinators might be mistaken for trespassers,
particularly since they often work in plain clothes. Encounters with wild dogs pose another risk during inspections. Location Inspections often take place in remote areas where communication systems are unreliable. Public Interaction Although there is 24-hour security service as some impound lots, employees may encounter potential risks. Employees often meet and release alone with members of the public, including the vehicle owner and a driver. These interactions, which may involve cash transactions, can escalate due to heightened emotions regarding the payment and release of vehicles. Consequently, employees face the risks of being unprepared to manage anger and disputes.
16 | Audit Results
Employees survey the area for potential dangers before exiting their vehicles to mitigate risks. If surveying results in an actual or perceived danger, employees bypass the vehicle and return later.
Depending on the issue, employees coordinate with HPD for an escort during their return inspection. Policies and Procedures DAV has no policies and procedures related to their safety and work processes. We Found
• Program personnel lack uniforms and work in plain clothes instead.
• Policies and procedures do not address safety protocols, including personal protective
equipment.
• Staff does not adapt equipment and resources to new working conditions or provide
training.
• Personal protective gear like high-visibility vests and industrial boots are not required.
• Reliable communication and emergency support systems or protocols are not established
in hazardous or remote areas.
• Measures like physical booths or online payments to minimize risks are not implemented.
• Safety devices such as lights and cameras are not installed at all impound lots.
• Comprehensive training in conflict resolution and equipment usage is lacking.
• Safety-related policies and procedures are not in place, exposing employees to potential
hazards.
Conclusion The review of personal protective measures for employees during field visits highlights gaps in
safety protocols. Despite the County's obligation to minimize hazards to an acceptable level, environmental risks, remote locations, and some public interactions threaten employee safety. A lack of safety assessments and standards leaves coordinators vulnerable to potential hazards.
Finding 1: Limited Personal Protective Measures
Cause of the Condition Safety concerns persist because DEM hasn't established a safety standard matching the risks employees face. Effect of the Condition The County leaves Coordinators vulnerable during hazardous vehicle-related activities.
17 | Audit Results
Recommendation 1: Prioritize Personal Protective Measures
We recommend that the Department of Environmental Management's Solid Waste Division prioritize personal protective measures.
In collaboration with the Safety Division, we recommend that the Department of Environmental Management pursue additional personal protection measures including but not limited to: Environmental Factors
• Provide or require high-visibility vests, logo-embroidered uniforms, and appropriate personal protective gear (i.e., industrial boots, gloves, head, and eye protection)
• Consider appropriate personal protective devices after proper training has been administered. Location
• Implement two-way radios or equivalent communication devices and GPS for real-time communication.
• Employ noise-making devices such as whistles or air horns.
• Establish a buddy system in hazardous or remote areas.
Public Interaction
• Install physical booths to separate employees from individuals at impound lots or collect
payments via online applications or equivalent before vehicle release to minimize risks.
• Install perimeter safety devices at impound lots, such as lights and cameras at all impound lots.
• Require comprehensive training in conflict resolution, de-escalation techniques, and equipment usage. Policies and Procedures
• Create policies and procedures related to safety-refer to Recommendation 3
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18 | Audit Results
Lack of Reporting Options for Abandoned
Vehicles
Audit Activity To determine if DAV educates the public on reporting derelict/abandoned vehicles, we conducted
the following activities:
• Gained an understanding of applicable laws and governance:
o Hawaiʻi Revised Statues § 290 Abandoned Vehicles
o DEM Rules of Practice and Procedure 2-9-1(a)
• Reviewed DEM's Abandoned Vehicles website
o Reviewed Derelict/Abandoned Vehicle Procedures
• Benchmarked other municipalities administering abandoned vehicle programs
Overview
The County removes and disposes of abandoned vehicles in accordance with HRS § 290-1(a). A
vehicle is defined as abandoned when left unattended unlawfully for over 24 hours on public or
certain private properties.
DEM Rule 2-9-1(a) states that “all derelict or abandoned vehicles located on public property or
private roads may be reported to the County police dispatcher." Police identify vehicles in
population centers and high-traffic areas. In remote locations, it becomes more important for the
public to report vehicles that police might not otherwise tag actively. However, the public is limited
to a single reporting methodology: calling in the vehicle. Public reporting can also be problematic.
Errors and discrepancies include:
• Vehicles may be reported multiple times, whereas those in remote locations might not be
reported at all
• Reports often contain inaccurate information
• Nuisance vehicles located on private property cannot be towed
The County's process of reporting an abandoned vehicle is currently by telephone:
Source: https://www.dem.hawaiicounty.gov/services/derelict-and-abandoned-vehicles Date Last Accessed: 04/23/2024
19 | Audit Results
Benchmarking
Comparing Hawaiʻi County's program with other municipalities, including Clark County, Nevada,
Seattle, and San Jose, we found that timelines for identifying, removing, and handling dispositions
are consistent with counterparts.
Cities and municipalities often use 311 services or apps for residents to access local government
services. The difference between 311 and an app is the mode of access and interaction.
311 is an easy-to-access, non-emergency phone number that people can dial to connect with
local government services and report non-urgent issues like abandoned vehicles, graffiti, illegal
dumping, potholes, dead animals, noise complaints, and more. A 311 mobile application provides
functionality similar to the 311-phone service but in a digital format. Users can use the app to
report issues, access information, and communicate with local government services. The app
often offers additional features such as GPS location tagging for issue reporting, photo uploads,
and status tracking of submitted requests.
Using a 311 helpline or app streamlines communication with local government, simplifying the
reporting process.
Source: SanJose 311 (sanjoseca.gov) Date Accessed: 04/23/2024
We found
• The program does not have options for reporting abandoned vehicles
• The program relies on customers reporting abandoned vehicles by phone via police dispatch
• The program does not have policies and procedures to address how it educates the public
• During ride-alongs, we observed derelict and abandoned vehicles are rarely reported in remote areas, and therefore, not removed.
20 | Audit Results
Conclusion The Department of Environmental Management established a program to dispose of abandoned
vehicles and educates the public through its website. Relying solely on a website for public education can pose challenges because it may not reach all demographics or cater to varying learning preferences. Additionally, it might limit accessibility for those with limited internet access
or technological literacy. Community policing and patrols have effectively increased the number of vehicles identified and removed, especially in areas of high visibility. In remote areas, the program relies heavily on public participation. While information about the program is accessible to the public, simply making it available does not equate to actively engaging in a public outreach effort to educate them. Given that the public plays a crucial role in reporting, providing tools that facilitate education and reporting to enhance participation is essential. Finding 2: Lack of Reporting Options for Abandoned Vehicles
Cause of the Condition The program does not proactively educate the public on reporting abandoned vehicles.
Effect of the Condition Vehicles remain in remote or undesirable areas for extended periods.
Recommendation 2: Increase Reporting Options
We recommend DEM 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
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21 | Audit Results
Gaps in Policies and Procedures
Audit Activity To determine if the program has sufficient written policies and procedures, we conducted the following activities:
• Interviewed staff to assess understanding of policies and procedures
• Conducted site visits to observe workflow processes and practices
• Reviewed applicable laws and written guidance o Hawaiʻi Revised Statutes §290 Abandoned Vehicles
o Department of Environmental Management (DEM) Rules of Practice and Procedure April 2023 (rules) o DEM Derelict/Abandoned Vehicle Procedures
• Reviewed Government Accountability Office (GAO) Greenbook o OV1.03 Definition of Internal Control
o 11.14 Design of Security Management o 12.02 Documentation of Responsibilities through Policies Overview The Government Accountability Office (GAO) Green Book recommends establishing written
policies and procedures to document internal controls and responsibilities. "Internal controls comprise the plans, methods, policies, and procedures used to fulfill the entity's mission, strategic plan, goals, and objectives. Internal controls help managers achieve desired results through
effective stewardship of public resources1. Creating program policies and procedures strengthens internal controls.
GAO's Greenbook provides best practices for management implementing control activities to restrict user access in IT, including unique user IDs or tokens, aligning access with job roles, promptly updating access rights, and managing access across interconnected IT elements. At the County, each department is responsible for creating and maintaining its own internal control policies and procedures by using the Department of Finance's Accounting Manual2 to establish a system of internal controls. We Found Although DEM has rules and procedures for reporting, removal, disposal, auctions, and knowledge staff to regularly review and update policies, it is best practice to provide detailed
instructions. Written guidance does not address:
• Basic safety needs of employees
• Field protocols including processing reports, final disposition, notice to owners, claiming of vehicles, auctions, and cash handling procedures
• User role security in software tracking (NexGen System, a Data Asset Management System)
• Compliance with HRS §290: procedural safeguards, owner notification, and environmental considerations.
1 United States Government Accountability Office. Standards for Internal Control in the Federal Government (Green Book) Definition of Internal Control OV1.03, pg. 5. https://www.gao.gov/assets/gao-14-704g.pdf Date accessed 4-12-24. 2 Accounting Manual Part 1 County of Hawaii Department of Finance. Departmental Internal Control Systems. June 7, 1999.
22 | Audit Results
Conclusion Identifying gaps in guidance helps management strengthen controls, add detailed instructions,
and clarify procedures. Staff should be trained on established and approved procedures. Standardizing work processes with clear policies enhances consistency, efficiency, and
productivity, minimizes errors, promoting accountability and facilitates knowledge sharing, quality control, and organizational effectiveness. Finding 3: Gaps in Policies and Procedures
Cause of the Condition
Program policies and procedures have not been updated to reflect operational practices.
Effect of the Condition
Not having formalized written policies and procedures causes confusion and inefficiency. Recommendation 3: Enhance Written Policies and Procedures
We recommend DAV management continue to enhance policies to ensure consistent and safe administration of the program.
23 | Audit Results
Inconsistent Vehicle Auction Processes
Audit Activity To determine if vehicle auctions are regularly performed, we conducted the following activities:
• Reviewed Hawaiʻi Revised Statues o Section 290-2 Notice to Owner o Section 290-3 Public Auction
o Section 290-5 Waiver of Public Auction Requirements
• Reviewed DEM Rules of Practice and Procedures o Rules 2-9-4 Auction of Abandoned Vehicles
• Reviewed Auction Data from FY 2016-17 to FY 2022-23 Overview The Vehicle Disposal Fund's goal is to conduct auctions for the sale of abandoned vehicles that
have met state-mandated holding and notification periods. Required holding and notification period HRS § 290-2 provides time frames for repossession and requires notifying vehicle owners of abandoned vehicles via registered or certified mail of the vehicle description, location, and intended disposition of the vehicle.
Some vehicles brought to the impound lots are set aside for auctioning, which may occur once or twice per fiscal year, or not at all, depending on resources. Staff stated that auctions are scheduled when 40 to 60 vehicles are available. Vehicle auction data is recorded in the Police Report & Daily Logs report within the impound inventory and/or auction. These logs detail the impound date, vehicles selected for auction, and the impound lot location. We Found Our review of inventory logs revealed that some abandoned vehicles remained on impound lots
for prolonged periods. Vehicles identified for auctions are set aside at impound lots until auctions are held. When auctions aren't held regularly, extended outdoor storage contributes to deterioration, negatively impacting the salvage value of vehicles.
Vehicles Sold at Auction
Fiscal Year Auction Conducted Number of Eligible Vehicles
Sold
Revenues Generated
FY 2016-17 Yes 39 $12,937.50
FY 2017-18 Yes 62 $24,242.00
FY 2018-19 Yes 69 $31,692.00
FY 2019-20 No 0 $0.00
FY 2020-21 No 0 $0.00
FY 2021-22 Yes 81 $77,364.00
FY 2022-23 No 0 $0.00
TOTAL 251 $146,235.50
Table 5: Revenues from Abandoned Vehicle Auctions, from Source: DAV Compiled OCA
24 | Audit Results
Conclusion In conclusion, DAV does not have an established auction schedule. No auctions were conducted
during the global pandemic in 2019 or 2020, and since then, the department has held auctions in
September 2021 and again in June 2022. No auctions have been held since.
Finding 4: Inconsistent Vehicle Auction Processes
Cause of the Condition
Scheduled auctions are not held regularly. Effect of the Condition Vehicles selected for auction lose value as they degrade over time, contributing to lost revenue. Recommendation 4: Modernize Vehicle Auction Processes
We recommend that DAV increase the frequency of auctions for abandoned vehicles to reduce the time stored in impound lots. If possible, utilize online tools to establish a more user-friendly and consistent process for timely auctions of these vehicles.
25 | Audit Results
Lack of Cross-Training for Program
Continuity
Audit Activity To determine if staff are cross trained to provide program continuity, we conducted the following
activities:
• Interviewed Solid Waste Division Chief
• Interviewed DAV staff
• Conducted site visits to observe operations
• Reviewed Government Accountability Office (GAO) Green Book: o 4.02 Expectations of Competence
o 4.05 Recruitment, Development, and Retention of Individuals
Overview DAV is made up of four positions, with an additional position currently requested:
Hilo Office
• Derelict and Abandoned Vehicle Specialist/Supervisor (Supervisor)
• Coordinator/Vehicle Inspector (Coordinator)
• Clerk III Kona Office
• Coordinator/Vehicle Inspector (Vacant)
• Clerk III (Requested)
Section 4.05 of GAO's Greenbook describes management's obligations to recruit, train, mentor, and retain personnel to nurture professional competence. This Professional competence GAO Section 4.02 is achieved by obtaining relevant knowledge, skills, and abilities to carry out assigned responsibilities. We found The supervisor is a knowledgeable resource and guides staff; however, no staff is trained to manage the office temporarily during their absence. When DAV supervisors are absent, the Solid Waste Division Chief, with a full workload, serves a temporary support role while managing their regular essential duties and responsibilities. The limited availability inhibits the program's ability
to respond to issues promptly, impacting timelines and decision-making. Conclusion
For programs with small work groups, cross-training personnel is important for ensuring coverage and continuity because it increases staff knowledge and creates flexibility in operations. When trained in multiple roles, employees can cover for absent colleagues or handle increased
workloads more effectively. This reduces the risk of disruptions to operations and ensures that critical tasks can still be performed even when key personnel are unavailable. Additionally, cross-training promotes a more knowledgeable and skilled workforce, enhancing the organization's resilience and adaptability to changing circumstances.
26 | Audit Results
Finding 5: Lack of Cross-Training for Program Continuity
Cause of the Condition Staff are not cross trained to assume the responsibilities of peers during absences. Effect of the Condition The lack of comprehensive cross-training of personnel:
• Impacts the overall decision-making process
• Reduces the effectiveness of meeting public needs
• Impacts monitoring of workflow and oversight Recommendation 5: Provide Cross-Training for Program Continuity
We recommend DEM management cross-train staff for operational continuity during absences.
27 | Fraud, Waste, and Abuse
Chapter 3
Fraud, Waste, and Abuse
As a practice, we remain mindful and document instances of fraud, waste, and abuse within the
scope of the audit objective and not specifically departmental or countywide. We did not detect any instances of fraud, waste, or abuse throughout this audit.
During entrance, we inquired with the Department of Environmental Management about Fraud, Waste, and Abuse in their Division relevant to the objectives of the audit. DEM management reported no fraud, ongoing investigations, or pending litigation that would impact this audit. During exit, we inquired with the Department of Environmental Management about Fraud, Waste, and Abuse in their Division relevant to the objectives of the audit. DEM management reported no fraud, ongoing investigations, or pending litigation that would impact this audit. In closing, the improper use of government resources or positions are commonly uncovered by
employees and the public. We strongly encourage reporting of any concerns through our fraud
and whistleblower hotlines:
Fraud and Waste Hotline: Whistleblower Hotline: (808) 480-8213 (808) 480-8279 Email: concern@hawaiicounty.gov
Fax Number: (808) 961-8905 Mail: Office of the County Auditor 120 Pauahi St. Ste. 309
Hilo, HI 96720
To access the complaints directory:
https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county-auditor/inquiry-
and-complaint
Submit a claim:
https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county-auditor/inquiry-and-
complaint/intake-form
28 | Conclusion
Conclusion
Based on our evaluation, the Department of Environmental Management Solid Waste Division
appears to administer its Derelict/Abandoned Vehicle Program in alignment with Hawaiʻi Revised
Statutes §290 and relevant governance. Our assessment suggests that the program effectively
identifies, removes, and disposes of abandoned vehicles, contributing to enhanced public safety,
environmental protection, and community aesthetics.
We acknowledge that while our evaluation leans towards a favorable assessment, it's important
to note that compliance may not be absolute in every instance due to variances in individual
performance and judgment.
To improve government accountability and ensure audit recommendations are implemented or
resolved, we will continuously monitor the status of pending recommendations using our
remediation tracker. To view the status, visit us at: https://www.hawaiicounty.gov/our-
county/legislative/office-of-the-county-auditor/remediation-tracker
29 | Management Response
Chapter 4
Management Response
30 | Management Response
31 | Management Response
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Tyler J. Benner
County Auditor
County of Hawaiʻi
Office of the County Auditor
120 Pauahi St., 309
Hilo, HI 96720
808.961.8386
www.hawaiicounty.gov
The Office of the County Auditor is tasked with promoting accountability, fiscal integrity, and openness in local government.
Our work is intended to assist County government in its management of public resources, delivery of public services, and
stewardship of public trust. Copies of this audit report can be obtained by contacting the Office of the County Auditor or
visiting our website: https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county-auditor/audit-reports