A state audit says Hawaii failed to protect taxpayer money while rushing to build homeless housing, bad news for the governor's signature program but not evidence of theft.

• The audit found more than $13.7 million paid out without proper checks, including $7.7 million that was never properly authorized.
• The state office running the $42 million program lacked qualified staff, written rules, and basic internal controls.
• The core problem was building first and documenting later, so costs were approved before anyone verified they were allowed.
• Governor Josh Green says the program is working and changing lives, while contractor Homemade Hawaii's CEO accepts responsibility for sloppy record-keeping.
• This was a performance audit, not a fraud investigation — no one is alleging money was stolen.

Outlook: The auditor wants a full review by people with construction experience to figure out which costs were legitimate and claw back the rest.