Mission

It is our mission to serve the Council and citizens of Hawai‘i 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

Hawai‘i County Charter §3-18 establishes an independent audit function within the Legislative Branch through the Office of the County Auditor (OCA).

Purpose

The purpose of this audit is to determine if services are being provided effectively, efficiently, and economically, comply with relevant governance, and whether resources in their current allocations contribute or limit program success.

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.

Objectives

1. Is the Hawaiʻi Fire Department internal control system suitably designed and operating effectively to ensure compliance with applicable laws, National Fire Protection Association (NFPA) standards, and County policies and procedures?

    

2. Is the Hawaiʻi Fire Department internal control system suitably designed and operating effectively to deliver an array of fire protection services adequately?

    

3. Evaluate key performance indicators such as demand for services, best practices, public expectations, and outcomes to determine if current resources contribute or limit department success? Has the department established adequate internal controls to ensure applicable operational procedures were completed and adequately enforced?

Scope

The audit used trend data for a period ranging from FY2017 to FY2021. Demand for service data ranged from January 2017 to December 2021. Single-year data considered FY2021. The audit referenced HFD's  2015–2020 strategic plan. We reviewed Ocean Safety and Fire Inspections in a limited capacity. The audit began in November of 2021 and concluded in March 2022.

Methodology

To accomplish our objectives, we:

• Traced performance outcomes achieved against the 2015 - 2020 strategic plan
• Interviewed appropriate staff and management to assess their understanding of and compliance with relevant internal controls, County policies and procedures, and applicable standards.
• Reviewed applicable documents relating to operations.
• Developed an understanding of the department’s internal control system, processes, practices, and document flow.
• Reviewed the department’s written policies and procedures.
• Observed monitoring and safeguarding practices.
• Conducted site visits.
• 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 objectives.  Conclusions on the effectiveness of these controls are detailed within this report.

Background

The County of Hawaiʻi Fire Department (HFD) has grown and evolved its workforce since beginning operations in 1888 as a volunteer group of citizens who organized themselves into the Hilo Volunteer Fire Department. HFD is an “all-hazards” department consisting of twenty career and eighteen volunteer stations. All hazards mean the department responds to an array of incidents whose categories include but are not limited to fire protection, rescue, hazmat, EMS and Ocean Safety.

HFD has a workforce of approximately 570 individuals consisting of paid firefighters, volunteers, administration, and specialty roles, covering a service area of 4,028 square miles and protecting the lives and property of 200,528 residents.                 

When fire or EMS services can’t or aren’t administered correctly, people can perish, and property is put at risk of destruction. Nationally, in 2020, direct fire damage was estimated to have caused $ 21.9 billion in property damage and caused 3,500 civilian deaths. One hundred forty firefighter fatalities were reported. Departments across the country are adapting to increasing volumes of EMS calls and other threats, including increased natural disasters and acts of terrorism.

Consequently, decision-makers need tools to determine the optimal alignment of resources with the service commitments required for the adequate protection of citizens.

The Fire Chief and administrative staff coordinate department resources and activities. The department recognizes two distinct divisions, emergency operations and support services.

Emergency operations include eleven eastside fire stations (Battalion 1) and nine westside fire stations (Battalion 2). Special Operations units also have search and rescue, hazardous material response, and ocean safety. Ocean Safety exists independently from battalion command. The stations respond to a full array of public emergencies, including fire suppression, hazardous materials incidents, rescue operations, and emergency medical operations.

Support Services Division provides essential services to the public and emergency response personnel that support the mission of HFD. They include the Fire Prevention Bureau, Training Bureau, Emergency Medical Services Bureau, and the Auxiliary Services Bureau.

• Fire Prevention Bureau provides:
  • Public fire education programs
  • Inspections
  • Investigations
  • Maintains current codes
  • Conducts plan reviews
• Training Bureau provides:
  • Education
  • Training
• Emergency Medical Services Bureau provides:
  • Mobile advanced life support service
    • Definitive treatment of trauma and fall prevention assessment
    • Community paramedicine programs
• The Auxiliary Services Bureau consists of:
  • Communications section
  • Apparatus and equipment repair section
  • The warehouse/logistics section

Demand for Services

Over the last five years, HFD averaged 25,886 calls per year. Between the calendar years 2017 to 2021, approximately 70% of incidents HFD responded to were requests for emergency medical services (EMS). Fire calls represented about 3.5% of the overall volume. Daily call volumes tend to climb beginning at six am, peaking at the eleven to twelve o’clock hour, and remains steady throughout the day, declining beginning about six pm.

Calls by Station by Type

EMS calls represent an ever-growing portion of the workload for HFD. EMS workloads should be a primary consideration for long-term planning, and stations may need to regularly accommodate multiple EMS vehicles and their personnel at a single station. HFD may also see an outsized benefit of continuing to recruit employees who can serve the dual Fire/EMS roles.

Performance Self-Assessment

To gain understanding, we interviewed HFD management to determine how they perceived their current level of performance. We asked 131 questions in seven categories. We corroborated with management and determined ten do not apply to their operations. Of the remainder, management determined they were incorporating approximately 41.3% of the performance measures into their operations and were not achieving about 58.7%. We determined HFD was accurately reporting their performance.

Self-Assessment Matrix

In 2015, HFD produced the Hawaiʻi Fire Department Strategic Plan (Plan) 2015-2020. While not every item from the plan is addressed in our audit, we determined some deliverables identified in the plan to be more critical to the successful operations of a prudently run department. The ten key performance criteria include:

Performance Categories

1. Assessment and Planning
2. Essential Resources
3. External System Relations
4. Financial Resources
5. Goals and Objectives
6. Governance and Administration
7. Human Resources
8. Physical Resources
9. Planning
10. Training and Competency

Within the ten performance categories, HFD identified milestones and activities that it needed to achieve to support the plan.

In total, the plan included 203 items that ranged from activities as small as advocating for new positions to as large as completing major capital improvement projects.

Significant accomplishments included some of the proposed capital projects, such as the replacement of the Kawailani Station (completed), the Combined Communications Center (in progress), and the aerial Chopper 2 replacement (in progress). 

Initially, several policies were created which aligned with the plan. However, over time, most of the items in the plan were not achieved, and some of the items that were initially developed were not maintained. Some deliverables could not be substantiated.  

• Communications
• EMS support and oversight
• Hazmat support and response
• Technical rescue support and response
• Strategic plans to compliment the master

A masterplan can be finalized in as little 6 months from project initiation to completion.

An example masterplan can be found at:

https://www.modestogov.com/DocumentCenter/View/10867/Modesto-Fire-Department-Master-Plan-Final-Report-PDF

Cause and Condition

Without a master plan, HFD’s strategic plan loses its purpose, and the vision diminishes over time.

Effect

Stakeholders who cannot clearly see the vision, do not understand why it is important.

Recommendation

We recommend HFD develop a master plan.

"If you fail to plan, you plan to fail"   ~Benjamin Franklin 

HFD defined the assessment and planning section as “A process by which the Hawaiʻi Fire Department can evaluate the progress and success in department programs, activities, and services by utilizing established plans identifying goals, strategies, and tactics.”

HFD’s plan model stated that it would pursue four deliverables in the assessment and planning category. We evaluated one item:

• Achieve accreditation as a fire department through the Commission on Fire Accreditation International (CFAI). 

 Results

•  HFD did not achieve accreditation.

Audit Activity

We reviewed the County’s Final Program Objectives and proposed operating budget, including program highlights from FY 2015-2020. We benchmarked and found that the Honolulu Fire Department was accredited in 2000 by the CFAI and re-accredited in 2005, 2010, 2015, and 2020. As of February 2022, the Hawaiʻi, Kauai, and Maui County Fire Departments are not accredited.

Accreditation Overview

Accreditation is the process of officially recognizing the organization as having a particular status or being qualified to perform a particular activity and is important to the public interest because it provides assurance that the organization has methodologies to review all aspects of operations.

Accreditation is a multi-step process.

Accreditation requires a self-assessment of present performance, past performance, defined objectives, and it aids plan creation. Supporting documents and exhibits validating quantitative or qualitative statements are required.

A community risk analysis must be performed to assess buildings and infrastructure and classify them into risk categories. This helps the department align its equipment and apparatus to the needs of a potential incident.

Cause and Condition

HFD was unable to commit ongoing resources to achieve accreditation.

Effect

HFD is not proactively developing internal methods to improve service delivery in the communities it is expected to serve and protect.

Recommendation

We recommend HFD work toward CFAI accreditation as reported in their Hawaiʻi Fire Department Strategic Plan 2015-2020. Pursuing the accreditation process will serve as the foundational building block to help HFD meet the department’s performance, mission, and public expectations.

HFD defined the essential resources section as “The identification of department equipment, supplies, personnel positions, facilities and programs necessary for the efficient delivery of emergency and non-emergency services to Hawaiʻi County.”

HFD’s plan model stated that it would pursue six deliverables in the essential resources category. We evaluated three items:

 Results

Audit Activity

Vehicles Replacement Schedules

We interviewed the Fire Chief and found this schedule does not exist.  We interviewed the Chief Mechanic and found the out-of-service vehicle list and repair and maintenance records were incomplete.  Personnel said physical repairs are a priority, and there is no clerical support.

NFPA Overview

The NFPA “is a global non-profit organization established in 1896, and whose stated mission is to eliminate death, injury, property, and economic loss due to fire, electrical and related hazards. NFPA delivers information and knowledge through more than 300 consensus codes and standards, research, training, education, outreach, and advocacy.”

NFPA codes and standards are supported by a rigorous development process.

NFPA standards may be legally enforceable when they are predicated on OSHA standards or when incorporated into code. For example, Hawaiʻi County Code Chapter 26 includes the adoption of the state fire code, which incorporates NFPA 1, the Uniform Fire Code. Although not all standards are attainable for every department, there are numerous benefits to adopting achievable NFPA standards.  NFPA standards tend to represent evidence of what a reasonably prudent fire department should be doing.

Applicable NFPA reference standards

• NFPA 1900 is currently being revised to incorporate the following standards:
  • NFPA 1901 Standard for Automotive Fire Apparatus
  • NFPA 1906 Standard for Wildland Fire Apparatus
  • NFPA 1917 Standard for Automotive Ambulances
  • NFPA 414 Standard for Aircraft Rescue and Fire-Fighting Vehicles
• NFPA 1911 Standard for the Inspection, Maintenance, Testing, and Retirement of In-Service Automotive Fire Apparatus
• NFPA 1912 Standard for Fire Apparatus Refurbishing

The standard includes a guideline (Annex D, 2017 edition) which offers general guidance. It’s important to note that while the standard does not include mandatory replacement schedules, other criteria, including apparatus design, or elements such as seatbelt warning signals, or anti-lock brakes, are required safety features that may be missing from older vehicles.  In 2009 major additions were added, including rollover stability, tire pressure sensors, extended seatbelts to accommodate fully dressed firefighters, and new restraint system requirements.

The annex suggests that apparatus more than fifteen years old but properly maintained be put into reserve status but should be upgraded according to NFPA 1912 standards. It further indicates that vehicles unable to meet the criteria, and where retro fitment exceeds the salvage value, and those apparatus over twenty-five years old, should be replaced. It also points out that some vehicles may wear out in as little as eight to ten years, whereas quality vehicles treated well, and maintained properly, may still be serviceable as a reserve vehicle at twenty years.

Source: Compiled Courtesy OCA

 Vehicles tend to follow similar stages in their economic life cycles:

HFD continues to work with fragmented vehicle lists and does not collect data in a fashion that allows it to analyze downtime, efficiency, or lifetime maintenance costs.  Additionally, the department's fleet is not always optimized to work in the geography to which it is assigned.

New vehicle, body damage. Needed additonal ground clearance – Courtesy County Auditor

Cause and Condition

HFD is not able to determine if lifetime repair and maintenance costs exceed the vehicle’s value. 

Effect

HFD’s resources are primarily focused on out-of-service apparatus rather than preventative maintenance.

Recommendation

We recommend HFD develop and implement a comprehensive vehicle profile for each of its apparatus.

We further recommend HFD develop and implement a maintenance and replacement plan to ensure safe and cost-effective operations based on evidence. The plan should include the following:

 Facilities:

Volunteer Facilities: 

Pictures Compiled Courtesy OCA

2. The provision of facilities maintenance to ensure an efficient, useful life

Audit Activity

We gained an understanding of HFDs’ Capital Improvement Project (CIP) allotments from 2017 to current.  We reviewed and compared outstanding work order items to observations made during site visits.  We interviewed staff and management.  We reviewed policies and procedures to identify responsible parties.

Facilities Maintenance Overview

HFD operates twenty fire stations island-wide. Fire stations are owned by State, County, and private entities. Fire station's age and conditions vary widely.

Additionally, HFD manages 18 volunteer sites. Sites range from vehicles parked at homeowner residences under tents to industrial garages. Sites with structures have electricity, no sleeping quarters, and plumbing varies.  HFD has agreements with neighborhood associations to provide different degrees of maintenance.

 Pictures Compiled Courtesy OCA

We reviewed HFD’s Rules and Regulations Section 7. That states the Fire Captain, “Supervises station activities, including the maintenance, and upkeep of facilities, grounds, and equipment.” Based on the department’s current definitions, it is the Fire Captain’s responsibility to manage maintenance issues affecting the station.

Elements of facilities maintenance can be charged to operating budgets or, if appropriate, added as projects in the capital improvement budget.

Repair and maintenance are defined as preventative and routine upkeep and/or the preservation or restoration of an existing element, space, building, or facility.

Capital improvements are any addition or alteration to real property that:

Examples of repair and maintenance versus capital improvements:

R&M versus CIP

 HFD Work Orders

Source: DPW Building Division 

We requested a comprehensive maintenance work order list from Department of Public Works Building Division.  We found the work order list to be incomplete, and some items, especially those identified as CIP, are not being repaired in a timely fashion.

During site visits, we observed instances of occupational and health, and safety hazards, placing employees in harm’s way. Health and safety concerns should be addressed immediately.

Some examples were observed during our site visits: 

  Conditions varied from:

During our site visit, we observed that the Kailua Station was using a mobile generator as a substitute because the station’s generator died.  We also observed several of the station’s generators are in use well beyond their useful life.  We also observed missing smoke detectors and out-of-service fire alarm systems in county facilities that are occupied twenty-four hours a day.

The lack of a complete and comprehensive work order list is contributing to poor facilities maintenance.  Additionally, “big ticket” repairs such as overhead doors at multiple stations are not being aggregated together into a single project where leveraged bargaining power will deliver the most cost-effective repairs.

Cause and Condition

HFD has no formal process to compile, monitor, or manage outstanding work orders to make informed decisions.

Effect

Repair and maintenance work is not performed timely.

Recommendations

We recommend HFD work with its Fire Captains to develop a system to compile and maintain a master list of work order items.

Where appropriate, HFD should leverage its economy of scale into CIP projects, including but not limited to:

Facilities

 Compiled Courtesy OCA

 Note: This data picture is for the above-mentioned positions only and does not represent all payroll expenditures.

3.  Determine and meet NFPA standards for staffing requirements.

Audit Activity

We interviewed staff, reviewed NFPA standards HFFA CBA agreements, examined calendar schedules and payroll activity reports.

Staffing Overview

HFD’s staffing standard includes six personnel at most stations.  A typical company is comprised of a Captain, Equipment Operator, Fire-EMS Specialist II, and three Firefighters.

Staffing consists of three shifts, A, B, and C.  All members assigned to a station regardless are defined as a company.  Shifts begin at 8 a.m. and run for twenty-four hours until 8 a.m. on the following day.  Staffing is grouped into work periods.  Work periods include all shifts worked inside of a nine-day window. Uniformed staff work twenty-four hours on shift, then are relieved to rest and recuperate for twenty-four hours before coming back on shift. This cycle is repeated a total of three times, and uniformed staff then go on a four-day, ninety-six-hour relief period.

NFPA 1710

NFPA 1710, Section 5.2.3 identifies the units as companies by function and establishes staffing relative to the function.

Engine companies and ladders require minimum staffing of four members.  High incident zones and geographically challenging areas can require five to six on-duty members as determined by the authority having jurisdiction.

Where EMS services are being provided, minimum staffing consists of two personnel trained to deliver basic life support.

HFD’s primary concern is to provide sufficient staffing to maintain operational readiness.  Needs are affected by absences, operations, and incidents.  The department has the discretion to backfill absences in an overtime capacity—this practice results in significant overtime expense.  The goal of the department should be to actively minimize and preserve unanticipated budget capacity for large or prolonged events.

Some overtime is expected.  The total number of hours worked during a nine-day period is seventy-two.  By (CBA) agreement, uniformed staff is entitled to four hours of overtime, over and above sixty-eight worked in a work period, a minimum of four hours of overtime if all hours are worked as scheduled.  This creates a category referred to as scheduled overtime which can be anticipated and budgeted; however, HFD is incurring millions of dollars over and above the budget.  In FY2021, the County paid over $ 7.8 million in overtime wages.

Five largest categories of overtime:

Six positions account for over 88% of the overtime:

Source: Eden pyActHstSumDet Time Period 07/01/20 to 06/30/21. Compiled Courtesy County Auditor

We highlight these figures because, under the existing framework, sick and vacation hours are costs that must be covered through backfill and overtime.  HFD currently has no mechanism to backfill these absences without paying a premium.  However, the premiums have little correlation to incidents. They are a result of required delegation as described in the CBA. Rank-For-Rank (RFR) requires employees of equal rank to have the first opportunity to backfill in the event of an absence.

It is the policy of HFD to look within the station to provide the backfill.  An FTE from a different shift in the company is called in on a day off and is paid a premium to stand in.  According to the HFFA contract, uniform employees are to be offered twelve shifts per year of RFR or 288 hours.

HFD has policies to contain costs.  Section 656.01 Procedures Manual states, “Non-Emergency-Overtime (79-2) is strictly prohibited without the prior authorization of the Fire Chief or Deputy Fire Chief.  Requests shall be initiated through the organizational chain of command of the Fire Department with justification for work to be accomplished.”  Quota-based overtime is contrary to this department policy, and the department is not able to demonstrate that it is actively enforcing this procedure.  We corroborated with HFD and found pre-authorization of overtime is not generally followed or enforced.

Chief’s Memorandum No. 2019-036 Section H. states that ninety-six hours shall be allowed every four months (quadrimester, quad), July 1 - Oct 31, Nov 1 - Feb 28, Mar 1 - Jun 30) Section I.  “Each employee is responsible for the total amount of rank-for-rank worked, and Battalion Chiefs are responsible for the tracking of the hours and the equitable distribution.  Employees who go over their allotted hours shall be subject to corrective action.”

For FY 2021, we tested RFR hours and found that seventeen employees went over in Quad one ranging from between 96.5 to 192 total hours, Quad two found eighteen employees went over from between 103.5 to 192 total hours, and Quad three found thirteen employees went over from between 108 to 192 total hours.

The proper delegation of this overtime is important to manage because employees hired prior to July 1, 2012, fall under grandfathered collective bargaining agreements where premium payments are part of a calculation that averages the three highest-earning years and pays lifetime pensions based on those earnings, with limited exceptions.  Not correctly monitoring and delegating violates the HFFA agreement, HFD policy, and contributes to long-term pension obligations.  As of November 2021, approximately 240 active employees belonged to grandfathered programs.

HFD is not meeting its constant staffing needs or enforcing its cost control procedures related to payroll. However, adding personnel in the existing framework to achieve minimum staffing will not reduce its overtime burden because those employees will be assigned to a shift and called back in an overtime capacity just as existing staff.  Straight-time substitution can be achieved in a few ways.  HFD could add excessive overcapacity so that a callout would not affect minimum staffing.

In this scenario, HFD is paying premium cost to maintain constant staffing.  Alternatively, HFD could add a relief pool without a designated station assignment.

Some benefits of a relief pool:

• Reduce employee burnout
• Reduces costs related to callbacks
• Reduces costs related to scheduled leave

Analysis of FY2021 data shows potential cost savings through the addition of a relief pool.

Relief Pool Calculation                                                             

One full-time equivalent (FTE) employee

Total Hours Available                                                                                            Hours

Total Annual Hours Available                                                                               2,920

Less                                                                                                                         Hours

Contractual Scheduled Overtime                                                                          160

Contractual Rank-for-Rank                                                                                     288

Net Hours Available                                                                                              Hours

                                                                                                                                 2,472

Sick and Vacation Leave (S&V)                     Average Hours Leave       Total Average Hours (AH)

                    10 Battalion Chief                                    427                                                         4,270         

                    59 Fire Captains                                       340                                                        20,060         

                    66 Equipment Operators                        391                                                        25,806

                    18 Fire Rescue Specialists                      382                                                          6,876

                    42 Fire/EMS Specialists II                       342                                                        14,364

                  141 Firefighters                                         263                                                         37,083

Grand Total                                                                                                                                     108,459

Where costs are:

Average Compensation          Hourly Average x Fringe = True Hourly x (AH) =                 Cost

Battalion Chiefs                       $ 45.18                   41%          $ 63.71      4,270      $ 272,041.70

Fire Captains                           $ 36.27                    41%          $ 55.37    20,060   $ 1,110,722.20            

Equipment Operators             $ 31.03                   41%          $ 43.75    25,806   $ 1,129,012.50            

Fire Rescue Specialists          $ 28.25                   41%          $ 39.84      6,876      $ 273,939.84            

Fire/EMS Specialists II           $ 32.12                   41%          $ 45.29    14,364      $ 650,545.56            

Firefighters                              $ 24.11                   41%          $ 34.00    37,083   $ 1,260,822.00  

Grand Total                                                                                                                     $ 4,697,083.80

And where these costs must currently be covered by over time backfill at 1.5x.

Average Compensation                    Cost             Overtime Multiple             Overtime Cost

Battalion Chiefs                     $    272,041.70               1.5x                               $ 408,062.55            

Fire Captains                           $ 1,110,722.20              1.5x                            $ 1,666,083.30

Equipment Operators             $ 1,129,012.50             1.5x                            $ 1,69,3518.75

Fire Rescue Specialists          $    273,939.84              1.5x                               $ 410,909.76

Fire/EMS Specialists II           $    650,545.56              1.5x                               $ 975,818.34

Firefighters                              $ 1,260,822.00              1.5x                                  $ 1,891,233

Grand Total                                                                                                              $ 7,045,625.70

And where a relief pool would have the following availability to substitute:

Position                              Net Annual Less Avg S&V = Remaining

Battalion Chiefs                     2,472      -        427                   2,045

Fire Captains                           2,472      -        340                   2,132

Equipment Operators             2,472      -        391                   2,081

Fire Rescue Specialists          2,472      -        382                   2,090

Fire/EMS Specialists II           2,472      -        342                   2,130

Firefighters                              2,472      -        263                   2,209

And where the pool composition needs are as follows:

Position                                    S&V Hours / Avail per sub = (Rounds down) Staff Needed

10 Battalion Chiefs                           4,270                  2,045                                       2

59 Fire Captains                              20,060                  2,132                                       9

66 Equipment Operators               25,806                  2,081                                     12

18 Fire Rescue Specialists               6,876                  2,090                                       3

42 Fire/EMS Specialists II              14,364                  2,130                                       6

141 Firefighters                              37,083                  2,209                                     16

Grand Total                                                                                                                        48

Despite calculations, modeling suggested a cost savings up to a break-even point of 24 personnel. We advise a slow, phased approach to implementation.

Estimated Cost Savings                                                                

Adding a one-year pilot relief pool program consisting of twelve employees could: 

Lower Employee Cost Model

Cost County taxpayers:                            Provide:                                    Create:

Position                         S&W                    Sub Hours             Save                 Net Savings

12 Firefighters       $ 1,105,177.74           26,508         $ 1,351,908          $ 246,730.26

Grand Total            $1,105,177.74                                                                  $246,730.26

Alternatively: 

Higher Employee Cost Model

Cost County taxpayers:                            Provide:                                    Create:

Position                                        S&W              Sub Hours               Save             Net Savings 

2 Battalion Chiefs                $  324,605.97         4,090          $ 390,881.30        $ 66,275.33                

9 Fire Captains                  $ 1,319,865.35        19,188       $ 1,593,563.40     $ 273,698.05                 

1 Fire/EMS Specialist II       $ 124,821.96          2,090          $ 141,994.60       $ 17,172.64

Grand Total                        $ 1,769,293.28                                                           $ 357,146.02

Cause and condition

HFD backfills all absences with overtime.

Effect

HFD historically exceeds its budgeted salary and wages for overtime.

Recommendations

We recommend HFD pilot a relief pool program to control overtime expenditures while better meeting NFPA Standards.

We further recommend HFD follow and enforce internal controls to limit rank-for-rank overtime to ninety-six hours for each quadrimester.

We further recommend HFD follow and enforce the non-emergency overtime policy.

HFD defined the financial resources section as “An analysis of the financial condition of an agency to determine its ability to fund operational priorities, its effectiveness in serving the community needs and its prognosis for long-range quality of service.”

HFD’s plan model stated that it would pursue five deliverables in the financial resources category. We evaluated one item.

Audit Activity

We benchmarked HFD’s FY 2021’ expenditures against five comparable fire departments based on criteria of 20% plus or minus population variance.

Financial Resources Overview

HFD said that it is underfunded relative to its industry peers. HFD has several unique aspects which make benchmarking difficult. For example, the vast area it responds to sets it apart from industry peers.

We identified seven common benchmarks:

Financial Resources Overview

We compared HFD’s funding to other municipals serving communities of similar size. When considering EMS services as part of the department’s offerings, the relationship changes.

HFD receives revenues from the State and County.

Area                State    County

EMS                100%       0%              

Operations          0%   100%

Ocean Safety   34%     66%

We looked at five municipals with populations +/- 20% of the population HFD serves and protects to develop an understanding of how the department compares. This list is not exhaustive and serves as an indicator.

Compiled Courtesy OCA

Cost per employee to the taxpayer

The Cost per Employee to Taxpayer (CET) is HFD’s total budget divided by the number of employees. This measure is important because a CET too high from the median can mean poor economy to the taxpayer, and a CET too low, and after accounting for the salary portion of wages can indicate underinvestment in an expense category for the department. The average comp cost per employee in this comparison is $153,580. HFD is $97,890. Because the department average CET is lower than its comps, and the percentage of wages is higher than its comps, our analysis indicates that the department is underfunded in some or all categories of expenses.

Average cost per capita

The Cost per Capita (CC) is HFD’s total budget divided by the population of the island. This CC is the second measure of the economy to the taxpayer and accounts for the department’s level of infrastructure. The average CC was $ 226. HFD was slightly higher at $ 234. Our analysis indicates HFD’s per capita cost is slightly higher than average to its comps. This is likely because HFD has more stations to maintain.

Cost per station

The Cost Per Station (CPS) is the total budget divided by the number of (paid) fire stations. This measure is not meant to indicate how many dollars are supporting each station. Instead, a CPS too high from the median may indicate a bloated budget. However, infrastructure carries fixed costs, and CPS too low from the median may indicate a lack of financial support. The average CPS was $ 3.4 million. HFD’s is $ 2.1 million. Our analysis suggests HFD budget in aggregate equivalent to its comps; however, with so much more infrastructure to support, it is operating with significantly fewer resources.

Ratio of sworn employees to civilian

The ratio of Sworn staff to Civilians (S:C) measures the number of production staff (sworn) to the number of support (civilian) personnel.  This is important to measure because a low ratio of S:C may indicate an organization is failing to use technology or is structured in an inefficient manner.  A high S:C ratio may indicate an efficient use of technology but also may indicate that production personnel is being misused. The average S:C in our analysis was 13.06:1. HFD’s average ratio is 29.9:1. We determined that HFD is not using technology solutions to achieve its high ratio. HFD said that they lacked support staff.  During our site visits, we observed uniformed staff members carrying out the functions of clerical employees.  Uniform employees are being paid substantial salaries but are regularly performing low-impact work.

Percentage of salary and wages (S&W) to budget

Percentage of Salary and Wages to Budget (SWB) measures department compensation to staff divided by its overall funding. The SWB is important because a percentage too high may indicate the department is overcompensating through premium wages and/or underfunding other areas of its budget.  The average SWB was 83.3%.  HFD’s SWB is 85.9%.  Our analysis indicates that HFD could achieve a lower ratio by increasing other areas of its budget, decreasing payroll expenses, adding support staff who typically do not require the same level of premium compensation, or by a mix of these proposals.

Percentage of Budget

The Percentage of Budget (PB) measures the department's budget allocation compared to the total general fund. The PB is important because while the aggregate dollars will be vastly different, the percentage provides a more stable indicator of what proportion of revenues should fund departments performing specialized functions. The average PB was 19.9%. For HFD, it is 10.6%. HFD ranked lowest among its comps.

HFD said they depend on charitable donations. Historically, HFD accepted donated equipment to enhance its inventory, such as:

In 2020, average donations significantly increased, including:

While partnerships with charitable organizations are beneficial, it is the responsibility of the County to ensure HFD has the tools it needs to perform its duties adequately.  Philanthropic contributions should enhance the value of making good great.

Cause and condition

Analysis indicates HFD is underfunded relative to its peers.

Effect

HFD is not able to acquire the items they need and depends on charitable organizations.

Recommendation

We recommend HFD develop budgeting benchmarks to assist county management’s understanding of budget requests.

Cause and condition

HFD has outdated policies and procedures that are not reviewed annually.

Effect

HFD’s staff said roles and expectations are not clearly defined.  

Recommendation

We recommend HFD update and clearly distinguish SOP’s, SOG’s, MOA’s, MOU’s, policies, rules, and regulations.

Elements the department should include but not be limited to:

• A standard format
• Annual review
• Version control
• Distribution

NFPA Benchmarks

Source: NFPA compiled courtesy OCA

We look at company size compared to operational effectiveness.  The National Institute of Standards and Technology (NIST) conducted a series of side-by-side field experiments in 2010 to assess two, three, four, and five-person performance outcomes.  Among the results (on average):

Low Hazard Structure Fires: 

Time to Water on Fire: 

 Ground Ladders and Ventilation: 

Hose Stretch Time: 

When evaluating whether the NFPA 1710 “industry standard could be achieved,” time started from the first engine arrived at the hydrant and ended when fifteen firefighters were assembled on the scene.

An effective response force was assembled by the five-person crews three minutes faster than the four-person crews.  Two and three-person crew scenarios were unable to assemble enough personnel to meet this standard.  Results show a tangible benefit between people and performance.

Until such time as the County can fully fund HFD with paid firefighters, volunteers create value by increasing the total number of on-scene responders.  HFD experiences low recruitment and an enthusiasm gap for participation on the east side of the island.  Average volunteer company size ranges from about four to six on the eastside and nine to twelve on the westside.  Volunteers are not issued a breathing apparatus and cannot enter structure fires which limits how and where they can deploy on-scene.  There is minimal incentive to participate.

HFD has limited resources to scale operations.  Volunteers offer a low-input, high return on investment opportunity.  Volunteers can serve roles aside from firefighting.  Volunteers can take on support roles, helping the department to coordinate the logistics of personnel and resources, enhancing community outreach, etc., as determined by management.

Cause and condition

HFD has not capitalized on the important support role that volunteers can play.

Effect

Volunteer participation suffers, and the department finds itself unable to meet NFPA 1710 standards of deployment.

Recommendation

We recommend HFD evaluate its volunteer program to:

1. Online Assignments
2. Captain-Led Training
3. Certification
4. Incumbent Training Programs
5. Multi-Company Drills
6. Full-Scale Exercises

HFD’s program updates led stakeholders to believe that training could be achieved and maintained online.  While some of the training can and should be done between calls for service, other training requires hands-on, field simulation, and multi-company cooperation.

HFD cited challenges including:

1. Staffing
2. Budget
3. Training Program Inabilities

• Offer
• Deliver
• Evaluate
• Maintain

    4.  Guiding Documents

    5.  Records

    6.  Leadership

Cause and condition

HFD did not clearly acknowledge the gap between online management and field training.

Effect

Stakeholders expect training and certification should be achievable online and during downtimes at the station.

Recommendation

We recommend HFD earmark a set number of training hours annually for each employee based on their position title and training needed to maintain proficiency.

We further recommend HFD develop a tracking mechanism to measure:

• Participation
• Certifications held
• Renewal dates

Audit standards require that we remain mindful and document all instances of waste, fraud, and abuse.

We noted specific issues that we communicated directly to HFDʻs management.  We appreciate their commitment to resolving these matters.

During fieldwork, we observed two occasions where personal electric vehicles were charging off fire stations.  HFD installed solar panels at multiple stations in 2015 as part of an initiative to reduce energy costs.  We corroborated with the Chief. He said the activity was unauthorized and had denied the one and only request that was presented to him.

HFD Rules and Regulations, Station Commander duties and responsibilities Sub Section 2. “Officers shall not knowingly allow County property to be used for individual personnel benefit not associated with official duties.”

Cause and condition

Vehicle use policy is not followed or enforced.

Effect

The department is using taxpayer resources inappropriately.

Recommendation

We recommend HFD work with other departments to revise the County’s Vehicle Use Policy, specifically refueling, to include provisions for electrically powered vehicles.  

9. Using fair and consistent analysis provides decision-makers with assurance that funding is appropriately supported by evidence.

10. Updating all relevant documents governing HFD’s operations will provide staff with assurance that the administration is leading them by example and not just managing them through crisis.

Deployment

11. Managing HFD volunteer companies like an organization with structure, roles, and expectations create opportunities and engagement that can break the bonds of budget constraints.

Training

12. Determining how many hours remain after accounting for sick, vacation, and training will help HFD plan for what staffing is needed to ensure no interruption in service.

Waste, Fraud, and Abuse

13. Addressing the improper use of resources at County facilities will build public trust.

We would like to express our sincere appreciation for the Hawaiʻi Fire Department's unrestricted access to sites, information, personnel, and coordination throughout the audit. The cooperation was exceptional.