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About Us Controller John Chiang's Audit Programs - Protecting Your Tax Dollars Controller's Audits in the SpotlightController's Audits in the Spotlight
The Controllers teams of expert auditors work throughout the state, completing auditing and oversight work involving hundreds of government and school district agencies large and small.
Much of this important work receives little public notice, but that does not diminish its importance to the protection of taxpayer dollars and the overall fiscal health of the State of California.
Controller Audits and Oversight Activities in the Spotlight...
Controller Issues Findings in Review of Redevelopment Agencies
State Controller John Chiang has released the results of his review of 18 redevelopment agencies in California. The Controller found no reliable means to measure the impact of redevelopment activity on job growth because RDAs either do not track them or their methodologies lack uniformity and are often arbitrary. The review exposes the difficulty of holding RDAs accountable for their funding decisions when existing legal standards are so loose that any area can be deemed "blighted."
"Locally-controlled economic development is vital to California's long-term prosperity. However, the existing approach - born in the 1940's - is not how anyone concerned with performance, efficiency, and accountability would draw it up today." Chiang said.
Want to learn more? Read the Controller's review and news release.
Controller's Review Finds Problems In Bell Audits
State Controller John Chiang has published the results of a quality-control review of the City of Bell and the Bell Community Redevelopment Agency’s audits, which found that the City’s audit firm, Mayer Hoffman McCann (MHM) failed to follow the majority of applicable generally accepted fieldwork audit standards.
Want to learn more? Read the December 2010 audit and news release.
Controller Finds City of Bell Unlawfully Spent State and Federal Funds, Grants
State Controller John Chiang has released the results of an audit that found the City of Bell unlawfully spent at least $710,000 in state and federal funds without valid contracts in place, or made payments for services outside of the scope of an existing contract. In addition, none of the contracts for goods or services examined were awarded through competitive bids.
“This audit show that the former Chief Administrative Officer’s contracting and purchasing practices continue to expose the City of Bell to further financial liability,” said State Controller John Chiang. “The fact that the former CAO was able to pick vendors and award contracts at will using state and federal funds raises serious questions about conflicts of interest, favoritism and other improprieties – at the expense of all taxpayers, not just local residents.”
Want to learn more? Read the November 2010 audit and news release.
Controller Chiang’s Audits Reveal More Failures in Bell’s Redevelopment and Gas Tax Funds
State Controller John Chiang has released audits of the City of Bell’s Redevelopment Agency and Gas Tax Funds, finding at least $1.2 million in inappropriate payments and management failures. This follows a September 2010 report from the Controller showing the city’s inadequate financial controls, inappropriate payroll, illegally-raised taxes, mismanaged bond funds, questionable contracts and land purchases.
“These audit revelations bring us one step closer to a full and complete accounting of what went wrong in the City of Bell,” said Chiang. “Public money dedicated to increasing affordable housing and maintaining local roads were instead used as a self-indulgent slush fund to pay for excessive salaries, perks, and other unlawful expenses.”
Want to learn more? Read the audits and news release...
Controller’s Bell Audit Finds Mismanaged Bonds, Unlawful Payments and Illegal Taxes
State Controller John Chiang has released the first of three audits focusing on the City of Bell’s mismanaged finances. The report found the city’s internal controls were “virtually non-existent,” resulting in the city making inappropriate payroll, illegally raising taxes, mismanaging bond funds and entering into questionable contracts and land purchases. The Controller will release audits on the city’s handling of state and federal funds by the end of October 2010, and an audit of the financial reports prepared by the outside accounting firm retained by the city in early November 2010.
“Our audit found the city had almost no accounting controls – no checks or balances – and the General Fund was run like a petty cash drawer,” said State Controller John Chiang. “The city’s purse-strings were tied to only one individual, resulting in a perfect breeding ground for fraudulent, wasteful spending.”
Controller Questions State and County Oversight of IHSS Payments
Controller Chiang has released a review showing lax state and county oversight of In-Home Supportive Service (IHSS) payments involving providers or recipients listed as deceased may have cost the State more than $11 million in 2008.
“This report questions the actions taken by the California Department of Social Services and individual counties to ensure IHSS payments are properly validated and monitored,” Chiang said.
Want to learn more? Read Controller Chiang's letter on the issue and the news release...
Controller Chiang Finds Massive Losses from Uncollected Fines and Penalties:
Controller Chiang released audit reports revealing that the State loses millions of dollars each year because state agencies often fail to collect the fines and penalties they levy.
“The audits show these agencies do not place a high priority on collecting millions of dollars owed to cash-starved California, even though it is their legal responsibility," Chiang said. “As a result, substandard accounting practices have left taxpayers to pick up the tab for drunk drivers and unscrupulous businesses and employers. Unfortunately, poor collection efforts are not unique to these three agencies, and likely are a systemic problem that plagues the State’s 170 departments, boards and commissions.”
Want to learn more? Read the audit reports and news release for more information...
Controller's Audit Finds Delta College Misspent Bond Funds With Little Oversight:
Controller Chiang released an audit report that found $11.5 million of bond proceeds earmarked to repair, improve, expand and upgrade facilities at San Joaquin Delta College were spent on state-of-the-art athletic facilities and high-tech electronic marquee signs.
The audit also found the college failed to follow State laws that require strong oversight of voter-approved bond funds.
Want to learn more? Read the audit report and Controller Chiang's comments for more information...
Controller’s Review Finds Errors in Property Tax Reporting Cost the State Millions a Year:
Controller Chiang has released the results of a financial review that found errors committed in 2005-2007 by schools, community colleges and redevelopment agencies reporting and computing property tax payments cost the State at least $63 million.
“These reporting and calculation errors resulted in the State unnecessarily spending millions of dollars to backfill schools and community colleges for a portion of funds they did not receive or received and failed to report,” Chiang said. “More alarming is that not only did these errors hurt the State’s strained General Fund, they also shortchanged low- and moderate-income housing projects and other local entities that provide critical services, such as police, fire districts and libraries.”
Want to learn more? Read the audit report and Controller Chiang's comments for more information...
Controller’s Audit Finds California Lottery Owes State $46,000 for Inappropriate Expenditures:
Controller John Chiang has said an audit by his office found the California Lottery inappropriately spent $46,336 in public funds for an employee recognition and training event November 8, 2007.
“Billed as an employee recognition and training event, the expenses actually went to entertainment, prizes and black-peppered prime rib dinners for Lottery employees, retirees and guests,” Chiang said. “These expenditures are an inappropriate use of public funds and the State’s strained coffers should be reimbursed as quickly as possible.”
Want to learn more? Read the audit report and Controller Chiang's comments for more information...
Chiang Releases Results of Financial Review of California's Stem Cell Institute
State Controller John Chiang has released the results of an audit conducted on the California Institute for Regenerative Medicine (CIRM), the stem cell grant program created in 2004 by Proposition 71. The review found CIRM’s conflict-of-interest policies, grant administration, administrative expenses and expenditures conform with Proposition 71 and generally were followed.
“California taxpayers agreed to dig into their pockets and finance up to $6 billion over 10 years to help find cures for a host of debilitating and chronic diseases and every public penny must be protected,” Chiang said. “This audit shows that the Institute’s administrative processes and expenditures are proper and in compliance with Proposition 71’s voter-approved requirements.”
Want to learn more? Read the audit report and Controller Chiang's comments for more information...
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