"Honolulu Auditor Edwin Young told City Council members Wednesday that if fraud had occurred .....  there were no mechanisms in place to report the improprieties."

Ahhhh, the "F" word finally rears its ugly head in writing.  Bravo!

If anyone suspected fraud they could have always walked into the US Attorney's office here in Honolulu and reported it since federal funds were being used.  The FTA now has the timely opportunity to demand a full forensic audit by an independent auditor, not the City auditor who is clearly conflicted, as a condition for the release of any remaining funds.