City Auditor Memo to County Council, June 30, 2026 (excerpts)

LINK: Audit-Suspension-Memo-HESD-CORE.pdf

This memorandum serves as formal written notification that the Office of the City Auditor (hereinafter "the Audit Team") is suspending the performance Audit of the City’s Resource Management and Administration of the Crisis Outreach Response and Engagement Program, and the Honolulu Emergency Services Department, effective June 30, 2026….

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III. BASIS FOR SUSPENSION

A. Data Reliability Concerns

In the course of performing audit procedures, the Audit Team identified significant concerns regarding the accuracy, completeness, and integrity of data and records provided by the Auditee. In accordance with GAO-20-283G, the extent of our data reliability assessment and the final determination are guided by three core factors: the expected importance of the data to the final report, the strength of any corroborating evidence, and the anticipated risk of using the data.

Based on the evaluation process outlined in the guidance, we identified problems or uncertainties in the data that cannot be sufficiently addressed. Consequently, the data has been assessed as Not Sufficiently Reliable (NSR) for the audit’s specific objectives. Consistent with GAS §§ 8.62–8.67, the Audit Team conducted data reliability assessments and identified the following issues:

o Absence Of Reliable Source Systems and Data Lifecycle Controls: Fieldwork observations and interviews with program management revealed that the program lacks an integrated, controlled data environment including record management deficiencies prior to 2026, input vulnerabilities and data omissions, and reactive reporting capabilities where the program lacks automated reporting tools or real-time data visibility. Audit fieldwork interviews and system reviews revealed systemic flaws in the data lifecycle and collection environment including tracking which relied on fragmented, handwritten logs because of a lack of centralized databases that were not yet created or consistently updated. Management acknowledged that program data is only as accurate and good as the one who inputs it and field workers may not be consistent and timely in submitting encounter data leading to systemic underreporting and data gaps.

o Data Integrity & Internal Reconciliation Issues: Monthly reports contain conflicting mathematical totals and shifting data universes that make it difficult to establish accuracy including unreconciled sample sizes, mismatched totals, tracking disconnects.

o Definition and Methodological Gaps: Reporting and documentation lacks clear frameworks and transparency regarding how data is captured including lack of core definitions and performance metrics. The program cannot provide standard metrics essential for a comprehensive performance audit as a result of interchangeable terminology and missing performance metrics.

B. Significant Change in Program Direction and Objectives

Since the commencement of this audit on September 9, 2025, the Audit Team has identified changes to the Crisis Outreach Response and Engagement Program that materially alter the program's scope, direction, and/or objectives. More specifically, we found that the program’s mission, service model, and governance had not been clearly defined or consistently maintained.

o Resolution 25-109, CD1 required an evaluation of effectiveness against a defined mission and public safety and health goals. We found that an audit baseline could not be established due to constant, fundamental shifts in CORE’s program goals, structure, and strategic target metrics. Program definition and mission have not been consistently defined over time. The CORE program is described inconsistently across sources and the program has shifted its efforts five times since 2021. The program’s direction has evolved without formal redefinition of its scope. As a result, effectiveness is difficult to measure and key performance indicators were inconsistent during this period.

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V. RESULTS OF WORK PERFORMED TO DATE

While no formal conclusions or testing were finalized, the preliminary work highlighted the following risks or areas of concern that management should monitor:

• Record Management and Input Vulnerabilities Audit fieldwork interviews and system reviews revealed systemic flaws in the data lifecycle and collection environment including tracking which relied on fragmented, handwritten logs because of a lack of centralized databases that were not created yet or consistently updated. Management acknowledged that program data is only as accurate and good as the one who inputs it and field workers may not be consistent and timely in submitting encounter data leading to systemic underreporting and data gaps.

• CORE’s Mission, Service Model, and Governance Have Not Been Clearly Defined or Consistently Maintained

 o The program experienced an immediate disconnect between design origin and operational reality when ownership transferred from the Office of Housing and Homelessness to HESD in December 2021.

 o The program's core operational focus has been inconsistent, shifting from an initial outreach focus to a "shelter emphasis" in March 2023, only to pivot back to an "outreach emphasis" between June and November 2023.

 o A medical respite facility opened under the program in June 2023 but abruptly stopped accepting referrals just five months later in November 2023, completely disrupting corresponding performance tracking.

o The program's scope is currently transitioning away from purely voluntary engagement toward the "MH-3" framework (legislated in March 2024 with a planned full launch in July/August 2026). This framework allows crisis outreach and law enforcement to involuntarily transport severely mentally ill individuals for emergency psychiatric evaluations, entirely changing the universe of legal and operational metrics.

(EDITOR's NOTE: "Good!")

As a result of these changes, the audit objectives established during the planning phase—as set forth in the audit notification letter dated April 6, 2026—no longer accurately reflect the program’s current operational environment. Continuing the audit under the original objectives would produce findings that are not responsive to the program's current state and could result in misleading or inapplicable conclusions…

read … FULL REPORT

CB: Honolulu Homeless Services Program Too Disorganized To Assess, Auditor Says - Honolulu Civil Beat