City auditor finds Honolulu Fire plans review fund lacks statutory structure and public reporting

The Honolulu City Council Budget Committee heard an audit presentation on Sept. 23, 2025, concluding that the Fire Plans Review Revolving Fund has not been established as a standalone revolving fund as required by Ordinance 12‑4 and therefore ‘‘lacks transparency and accountability,’’ the city auditor said.

City Auditor Troy Shimasaki told the committee the office reviewed fiscal years 2020–2024 and found two primary issues: the fund’s administrative structure does not match the ordinance and reporting is insufficient. The audit sampled 67 expenditures and found 31 (46 percent) ‘‘were not clearly justified or classified by spending category,’’ totaling just over $157,000, the auditor said. The audit noted approximately 80 percent of fund spending over the five‑year period went to operational costs, including salaries and current expenses.

Shimasaki recommended that the Department of Budget and Fiscal Services formally establish the revolving fund as authorized by Ordinance 12‑4, that the Council consider amending the ordinance to remove or clarify the ‘‘appropriated upon receipt’’ clause so fund receipts do not bypass Council oversight, and that the Honolulu Fire Department prepare annual reports of fund activities for the Council.

Chief Howell of the Honolulu Fire Department disputed the implication that expenditures were improper. Howell said many of the items questioned by auditors—repairs, maintenance, parking fees and equipment—are operational necessities tied to contract positions and field work. ‘‘A lot of these things here with the equipment, repairs, maintenance, electrical, solid waste . . . are operational costs,’’ Howell said, adding the department is willing to provide additional reporting to improve transparency.

BFS Director Andy Kawano said his department would work with the fire department and the auditor to improve reporting and could provide balances and receipts information to the Council on an annual basis or as the Council directs. Chair Okimoto said he intends to meet with BFS and HFD to draft legislation that incorporates the auditor’s recommendations.

The committee did not take a formal vote on ordinance language at the meeting but the chair recommended drafting legislation and directed staff to prepare follow‑up briefings and potential draft amendments. The audit report (Report No. 2504, issued Aug. 22, 2025) will be used as the basis for those drafts.

What happens next: the chair said he will meet with BFS and HFD to pursue draft legislation reflecting the audit recommendations, including clarifying appropriation language and establishing reporting requirements.