An audit of Kauai County's furlough program found deficiencies in planning, a lack of transparency and accountability and possibly favoritism.
The furlough program closed county offices for two days a month between July and December of 2010.
The county auditor says the furlough was not needed to address financial difficulties and the county actually had a surplus of over $58 million.
Most employees took a pay cut during the program, but some received hefty pay raises right before the furlough.
Kauai Mayor Bernard Carvalho responded to the audit saying:
"There are issues raised in the press release that were not included in the draft report, and therefore we had no opportunity to comment on them prior to the audit being finalized.
"Furthermore, the auditor's release contains inaccurate statements... and inflammatory comments that are not consistent with the audit findings."