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Washington State Auditor: Taholah School District No. 77
OLYMPIA, Washington, Oct. 11 -- The office of the Washington State Auditor issued the following performance audit report entitled "Taholah School District No. 77."
Here are excerpts:
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AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In most of the areas we examined, District operations complied, in all material respects, with applicable state laws, regulations, and its own policies, and provided adequate controls over safeguarding of public resources.
As referenced above, we identified areas where the District could make
... Show Full Article
OLYMPIA, Washington, Oct. 11 -- The office of the Washington State Auditor issued the following performance audit report entitled "Taholah School District No. 77."
Here are excerpts:
* * *
AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In most of the areas we examined, District operations complied, in all material respects, with applicable state laws, regulations, and its own policies, and provided adequate controls over safeguarding of public resources.
As referenced above, we identified areas where the District could makeimprovements. These recommendations are included with our report as a finding.
In keeping with general auditing practices, we do not examine every transaction, activity, policy, internal control, or area. As a result, no information is provided on the areas that were not examined.
About the audit
This report contains the results of our independent accountability audit of Taholah School District No. 77 from September 1, 2024 through August 31, 2025.
Management is responsible for ensuring compliance and adequate safeguarding of public resources from fraud, loss or abuse. This includes the design, implementation and maintenance of internal controls relevant to these objectives.
This audit was conducted under the authority of RCW 43.09.260, which requires the Office of the Washington State Auditor to examine the financial affairs of all local governments. Our audit involved obtaining evidence about the District's use of public resources, compliance with state laws and regulations and its own policies and procedures, and internal controls over such matters. The procedures performed were based on our assessment of risks in the areas we examined.
Based on our risk assessment for the year ended August 31, 2025, the areas examined were those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the following areas during this audit period:
* Tracking and monitoring of theft sensitive assets, such as computers, tools, and equipment
* Payroll - gross wages and leave cash outs
* Compliance with service contract terms
* Student enrollment reporting - basic education
* Compliance with supplemental contracts for enrichment activities
* Use of restricted funds - professional learning and local revenue for enrichment activities
* Financial condition - reviewing for indications of financial distress
* Open public meetings - compliance with minutes, meetings and executive session requirements
* * *
The report is posted at: https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1040563&isFinding=false&sp=false
Washington State Auditor: City of Sammamish
OLYMPIA, Washington, Oct. 11 -- The office of the Washington State Auditor issued the following performance audit report entitled "City of Sammamish."
Here are excerpts:
* * *
AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In most of the areas we examined, City operations complied, in all material respects, with applicable state laws, regulations, and its own policies, and provided adequate controls over safeguarding of public resources.
As referenced above, we identified areas where the City could make improvements. These
... Show Full Article
OLYMPIA, Washington, Oct. 11 -- The office of the Washington State Auditor issued the following performance audit report entitled "City of Sammamish."
Here are excerpts:
* * *
AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In most of the areas we examined, City operations complied, in all material respects, with applicable state laws, regulations, and its own policies, and provided adequate controls over safeguarding of public resources.
As referenced above, we identified areas where the City could make improvements. Theserecommendations are included with our report as a finding.
In keeping with general auditing practices, we do not examine every transaction, activity, policy, internal control, or area. As a result, no information is provided on the areas that were not examined.
About the audit
This report contains the results of our independent accountability audit of the City of Sammamish from January 1, 2025 through December 31, 2025.
Management is responsible for ensuring compliance and adequate safeguarding of public resources from fraud, loss or abuse. This includes the design, implementation and maintenance of internal controls relevant to these objectives.
This audit was conducted under the authority of RCW 43.09.260, which requires the Office of the Washington State Auditor to examine the financial affairs of all local governments. Our audit involved obtaining evidence about the City's use of public resources, compliance with state laws and regulations and its own policies and procedures, and internal controls over such matters. The procedures performed were based on our assessment of risks in the areas we examined.
Based on our risk assessment for the year ended December 31, 2025, the areas examined were those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the following areas during this audit period:
* Use of restricted funds - building and land use permit fees
* Cash receipting - timeliness and completeness of deposits, voids and adjustments
* Accounts payable - purchase cards
* Surplus of fire department vehicles - disposition and receipt of sales proceeds
* Payroll - leave cash outs
* Financial condition - reviewing for indications of financial distress
* Open public meetings - compliance with minutes, meetings and executive session requirements
* * *
The report is posted at: https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1040611&isFinding=false&sp=false
Ill. Auditor General: Teachers' Retirement System of the State of Illinois
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
INTRODUCTION
This digest covers the Compliance Examination of Census Data for the following agencies (collectively, the Employers) as of and for the year ended June 30, 2025:
* North Cook Intermediate Service Center #1
* DuPage County Regional Office of Education #19
* Lake County Regional Office of Education #34
* LaSalle, Marshall, and Putnam Counties Regional Office of Education #35
* Will County Regional Office of Education #56
* Regional Office of Education
... Show Full Article
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
INTRODUCTION
This digest covers the Compliance Examination of Census Data for the following agencies (collectively, the Employers) as of and for the year ended June 30, 2025:
* North Cook Intermediate Service Center #1
* DuPage County Regional Office of Education #19
* Lake County Regional Office of Education #34
* LaSalle, Marshall, and Putnam Counties Regional Office of Education #35
* Will County Regional Office of Education #56
* Regional Office of EducationProfessional Services
* State of Illinois, Department of Human Services - Illinois School for the Visually Impaired
* Illinois State Board of Education
* State of Illinois, Department of Human Services - Illinois School for the Deaf
Our Special Assistant Auditors for the Teachers' Retirement System of the State of Illinois (System) were engaged to perform various census testing to determine the Employers' compliance over certain specified requirements. Those requirements were as follows:
A. All of the Employers' employees required to be enrolled in the System in accordance with applicable laws, rules, and regulations were properly enrolled in the System during the census data accumulation year ended June 30, 2024.
B. The changes in significant elements of census data for employees required to be enrolled in the System occurring during the census data accumulation year ended June 30, 2024, were completely and accurately reported by the Employers to the System.
The significant elements of census data of the System include each employee's:
a. social security number;
b. first and last name;
c. date of birth;
d. gender;
e. rate of pay; and,
f. employer contribution.
C. The changes in significant elements of census data for employees required to be enrolled in the Teachers Health Insurance Security Fund (Fund) administered by the State of Illinois, Department of Central Management Services (CMS) occurring during the census data accumulation year ended June 30, 2024, were completely and accurately reported by the Employers to the Fund.
The significant elements of census data of the Fund include each member's:
a. social security number;
b. first and last name;
c. date of birth; and,
d. gender;
e. rate of pay; and,
f. employer contribution.
D. The employee and/or employer contributions remitted by the Employers to the System and Fund during the proportionate share allocation year ended June 30, 2025, were complete, accurate, and in accordance with applicable laws, rules, and regulations.
There were no material findings of noncompliance disclosed during our examination.
ACCOUNTANT'S OPINION
The accountants conducted a compliance examination of census data for the Employers for the year ended June 30, 2025. The accountants stated the Employers complied, in all material respects, with the requirements described in the report.
This compliance examination of census data was conducted by Forvis Mazars, LLP.
COURTNEY DZIERWA
Deputy Auditor General
This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act.
CHRISTOPHER B. MEISTER
Auditor General
CBM:dmg
* * *
The report is posted at: www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/Retirement-Systems/TRS-Census-Data-Reports/FY25-TRS-Comp-Census-Data-Digest.pdf
Ill. Auditor General: Regional Office of Education #34 Lake County
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
SYNOPSIS
* (21-1) The Regional Office of Education #34 did not provide completed financial statements in an auditable form by the August 31 deadline.
* (21-2) The Regional Office of Education #34 did not comply with grant requirements.
Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance).
Category 2: Findings that are significant deficiencies in internal
... Show Full Article
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
SYNOPSIS
* (21-1) The Regional Office of Education #34 did not provide completed financial statements in an auditable form by the August 31 deadline.
* (21-2) The Regional Office of Education #34 did not comply with grant requirements.
Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance).
Category 2: Findings that are significant deficiencies in internalcontrol and/or noncompliance with State laws and regulations.
Category 3: Findings that have no internal control issues but are in noncompliance with federal and/or State laws and regulations.
1 The FY 2021 beginning net position was restated by $761,922 due to a change in accounting principle from generally accepted accounting principles (GAAP) basis to cash basis of accounting.
2 Capital asset amounts include debt associated with a capital lease.
Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Roycealee Wood
Currently: Honorable Michael Karner
The Regional Office of Education #34 did not provide completed financial statements in an auditable form by the August 31 deadline.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
DELAY OF AUDIT
The Regional Office of Education #34 (ROE) did not provide completed financial statements in auditable form until March 2026.
The ROE is subject to 105 ILCS 5/2-3.17a which requires the Auditor General's office to cause an audit to be made, as of June 30th of each year, of the financial statements of all accounts, funds and other moneys in the care, custody or control of the regional superintendent of schools of each educational service region in the State and of each educational service center established in the School Code. The audit is to be conducted in accordance with Generally Accepted Government Auditing Standards. A Regional Office of Education or Educational Service Center may utilize a cash basis, modified cash basis, or generally accepted accounting principles (GAAP) basis of accounting to prepare the financial statements for audit. The ROE has chosen the cash basis of accounting for financial reporting.
In accordance with 105 ILCS 5/2-3.17a, the Auditor General has promulgated administrative rules and regulations to govern this process. Those rules, 74 Ill. Adm. Code 420.320 (c)(2), state that for audit purposes, each regional office of education and educational service center shall make available to the Auditor General or its designee all books and records deemed necessary to make and complete the required audits. The records shall be completed in auditable form by August 15 of the succeeding fiscal year. Financial reports are to be available no later than August 31 in order that the annual audit may be done by an independent auditor selected by the Auditor General. In addition, prudent business practices and transparency require timely preparation and completion of financial statements.
Regional Office management indicated Fiscal Year 2021 financial statements were not available until March 2026. (Finding 2021-001, pages 11-12) This finding was first reported in 2019.
The auditors recommended the ROE should implement procedures to ensure compliance with 105 ILCS 5/23.17a and 74 Ill. Adm. Code 420.320 (c)(2). These financial statements need to be presented to the Auditor General's independent auditors for audit by the August 31 deadline.
ROE Response: The ROE agrees with the finding and is working with their contracted accounting firm to ensure that the office gets back on schedule with the yearly audit deadlines.
NONCOMPLIANCE WITH GRANT REQUIREMENTS
The Regional Office of Education #34 (ROE) did not comply with grant requirements. The ROE submitted 13 out of 13 (100%) expenditure reports untimely, ranging from 6 to 69 days late.
Item 5 of Section A of the Illinois State Board of Education's State and Federal Grant Administration Policy, Fiscal Requirements, and Procedures requires grantees with an approved state and/or federal grant program to submit quarterly expenditure reports, at minimum, on or before 20 calendar days after the end of the reporting quarter.
ROE management indicated they did not have adequate procedures in place to ensure expenditure reports were reviewed and submitted within required deadlines. (Finding 2021-002, pages 13-14)
The auditors recommended the ROE should implement procedures to ensure expenditure reports are prepared, reviewed, and submitted in a timely manner in accordance with grant requirements.
ROE Response: The ROE responded that it will review expenditure reports on a timely basis to ensure they are submitted within the required timeframe.
AUDITORS' OPINION
Our auditors state the Regional Office of Education #34's financial statements as of June 30, 2021 are fairly presented in all material respects.
This financial audit was conducted by the firm of Sikich CPA LLC.
TRICIA WAGNER
Division Director
This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act.
CHRISTOPHER B. MEISTER
Auditor General
CBM:JMT
* * *
The report is posted at: www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/ROE/roe34/FY21-ROE34-Fin-Digest.pdf
Ill. Auditor General: Office of the Governor
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
SYNOPSIS
* (25-1) The Office did not make all required appointments to various boards, commissions, councils, committees, and other entities to fill vacancies.
* (25-2) The Office did not make the required appointments to fill vacancies for certain boards, commissions, councils, committees, and task forces it considered non-operational.
* (25-3) The Office's internal controls over its receipt processing function were not operating effectively during the examination
... Show Full Article
SPRINGFIELD, Illinois, Oct. 11 (TNSLrpt) -- The Illinois Auditor General issued the following report:
Here are excerpts:
* * *
SYNOPSIS
* (25-1) The Office did not make all required appointments to various boards, commissions, councils, committees, and other entities to fill vacancies.
* (25-2) The Office did not make the required appointments to fill vacancies for certain boards, commissions, councils, committees, and task forces it considered non-operational.
* (25-3) The Office's internal controls over its receipt processing function were not operating effectively during the examinationperiod.
Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance).
Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations.
Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations.
73% of operational entities tested lacked the required number of Governor-appointed members
Members continued to serve for up to 13 years after expiration of terms for 22% of operational entities tested
Office accepted recommendation
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
APPOINTMENTS OF MEMBERS TO BOARDS, COMMISSIONS, COUNCILS, AND COMMITTEES
The Office did not make all required appointments to various boards, commissions, councils, committees, and other entities to fill vacancies.
We tested a sample of 49 current laws which required the Governor to appoint members to boards, commissions, councils, and committees which were considered operational by the Office. Based on documentation provided by the Office, we noted 36 of 49 (73%) such entities lacked the required number of Governor-appointed members as of June 30, 2025.
Members of boards, commissions, councils, and committees are generally allowed or required to continue to serve until a successor has been appointed. However, we noted reappointments or new appointments had not been made as of June 30, 2025 for 11 of 49 (22%) entities tested for 6 months to over 13 years after expiration of members' terms. (Finding 1, pages 10-17) This finding has been reported since 2007.
We recommended the Office take necessary measures to ensure timely appointment of qualified members to the boards, commissions, councils, committees, and other entities as required by statute or seek legislative remedy.
The Office accepted the recommendation and responded that appointments require a nuanced level of attention to find candidates who satisfy the specific statutory requirements of the position for the particular board, commission, council, or committee. The Office stated it prioritizes the appointment of members to regulatory boards and those boards that have insufficient numbers of sitting members to transact business because they do not have a quorum.
The Office further noted that those individuals serving in expired terms on non-senate confirmed boards, commissions, councils, and committees are almost always able to holdover after their statutory terms have ended and until additional appointment action can be taken. In such circumstances, while a vacancy may exist as to the term of office, the holdover officers remain authorized to exercise the duties of the position and may continue to transact business on behalf of the state as de facto officers.
In addition, the Office noted that after the examination period, it pursued a legislative remedy to address some of the boards and commissions that are no longer necessary and sought and obtained legislative approval of the inclusion of a process for reviewing boards and commissions considered to be inactive.
43% of entities in the sample were considered non-operational
Entities lacked current appointments by the Office
Office accepted recommendation
FAILURE TO MAKE APPOINTMENTS TO ENTITIES CONSIDERED NON-OPERATIONAL
The Office did not make the required appointments to fill vacancies for certain boards, commissions, councils, committees, and task forces it considered non-operational.
We noted 37 of 86 (43%) mandated boards, commissions, councils, and committees tested were considered nonoperational by the Office. Statutory requirements for 12 of the non-operational entities were subsequently repealed and the remaining 25 (68%) such entities lacked current appointments by the Office as of June 30, 2025:
* The Office did not make appointments to fill vacancies or expired terms to 20 of 25 (80%) boards, commissions, councils, and committees tested, which the Office stated were non-operational during the examination period.
* The Office did not make the required number of appointments to fill all positions on 1 committee tested.
* Four of 37 (11%) entities tested were not created, thus no members were appointed. (Finding 2, pages 18-22) This finding has been reported since 2019.
We recommended the Office strengthen internal controls over required appointments to boards, commissions, councils and committees. We specifically recommended the Office monitor vacancies and changes in operational status of entities, document conclusions reached and actions taken, and either comply with statutory requirements or seek a legislative remedy.
The Office accepted our recommendation and noted that it subsequently sought and obtained legislative approval of the inclusion in Illinois law of a process for reviewing boards and commissions considered to be inactive.
RECEIPT PROCESSING INTERNAL CONTROLS NOT OPERATING EFFECTIVELY
The Office's internal controls over its receipt processing function were not operating effectively during the examination period.
Due to our ability to rely upon the processing integrity of the Enterprise Resource Planning System (ERP) operated by the Department of Innovation and Technology (DoIT), we were able to limit our receipt testing at the Office to determine whether certain key attributes were properly entered by the Office's staff into the ERP. In order to determine the operating effectiveness of the Office's internal controls related to receipt processing, we selected a sample of key attributes (attributes) to determine if the attributes were properly entered into the ERP System based on supporting documentation.
Key attributes not properly entered into the system
Office accepted recommendation
Our testing noted 4 of 20 (20%) attributes were not properly entered into the ERP System. Therefore, the Office's internal controls over receipt processing were not operating effectively. (Finding 3, pages 23-24)
We recommended the Office design and maintain internal controls to provide assurance its data entry of key attributes into ERP is complete and accurate.
The Office accepted this finding and responded that controls have been implemented and confirmation of date fields on the ERP system and reports have been reviewed. The Office also stated staff has established standard operating procedures to aid in better control and support the Office and to ensure that data entered is complete and accurate.
OTHER FINDINGS
The remaining findings pertain to personal services, property, and information technology. We will review the Office's progress towards the implementation of our recommendations in our next State compliance examination.
ACCOUNTANT'S OPINION
The accountants conducted a State compliance examination of the Office for the two years ended June 30, 2025, as required by the Illinois State Auditing Act. The accountants qualified their report on State compliance for Findings 2025-001 through 2025-003. Except for the noncompliance described in these findings, the accountants stated the Office complied, in all material respects, with the requirements described in the report.
This State compliance examination was conducted by Adelfia, LLC.
DENNIS M. GIBBONS
Division Director
This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act.
CHRISTOPHER B. MEISTER
Auditor General
CBM:lkw
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The report is posted at: www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/Governor/FY25-Governor-Comp-Digest.pdf
Governor Stein and Emergency Management Officials Urge Vigilance as Isaias Moves Through the State
RALEIGH, North Carolina, Oct. 11 -- Gov. Josh Stein, D-North Carolina, issued the following news release:
* * *
Governor Stein and Emergency Management Officials Urge Vigilance as Isaias Moves Through the State
*
Governor Josh Stein and North Carolina Emergency Management officials continue to monitor impacts from the remnants of Hurricane Isaias. All North Carolinians should remain vigilant as the storm system moves out of the area throughout today because flash flooding remains a threat in some areas. There have been multiple tornado warnings this morning and early afternoon, and the threat
... Show Full Article
RALEIGH, North Carolina, Oct. 11 -- Gov. Josh Stein, D-North Carolina, issued the following news release:
* * *
Governor Stein and Emergency Management Officials Urge Vigilance as Isaias Moves Through the State
*
Governor Josh Stein and North Carolina Emergency Management officials continue to monitor impacts from the remnants of Hurricane Isaias. All North Carolinians should remain vigilant as the storm system moves out of the area throughout today because flash flooding remains a threat in some areas. There have been multiple tornado warnings this morning and early afternoon, and the threatof tornados remains elevated throughout the day, especially in central and southeast North Carolina.
"We are grateful to the first responders and emergency management officials who worked through the night to keep people safe," said Governor Josh Stein. "Our state's public safety community, including North Carolina's Search and Rescue Teams, stepped up to meet the moment. Visit ReadyNC.gov to learn how to prepare for storms."
Overnight, the state saw impacts from Isaias, especially in western North Carolina, where heavy rains led to flooding, a few rescues, and several landslides. North Carolina Emergency Management and the State Emergency Response Team supported local emergency management offices in public notification and coordinating response efforts overnight.
At its peak, power outages were just over 22,000 across the state, with about half of those in the mountains. Crews continue to work hard to restore power to those impacted, with current outages just over 10,000 as of 10:30 a.m.
More than 2,300 NCDOT employees mobilized across the state to ensure thousands of signs, trucks, and debris-clearing equipment were ready and in good working order ahead of this storm. Crews have begun assessing damage where it's safe to do so and are working to get roads open as swiftly as possible.
State Emergency managers remain in contact with their local partners to assess any needs they may have. Pre-positioned swift water rescue teams and search and rescue teams remain ready to mobilize if needed. NCDOT continues to encourage North Carolinians to stay off the roads, unless necessary. If you must go out, drive with extra caution, and if you encounter flooding: turn around, don't drown. Real-time travel conditions for North Carolina roads can be found at DriveNC.gov Opens in new window.
North Carolinians should pay attention to their local news for the latest updates and to follow instructions from their local emergency management and public safety officials. Visit ReadyNC.gov Opens in new window for storm information Opens in new window, evacuations Opens in new window, power outages Opens in new window, shelters Opens in new window and more.
Residents and visitors can get the latest updates by monitoring local news for the latest advisories from the National Weather Service Opens in new window, as well as state and local emergency management officials. North Carolinians are encouraged to follow local weather forecasts for updates.
For the latest information and preparedness tips from the State Emergency Response Team, visit ReadyNC.Gov/Isaias Opens in new window.
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Original text here: https://governor.nc.gov/news/press-releases/2026/10/11/governor-stein-and-emergency-management-officials-urge-vigilance-isaias-moves-through-state
Calif. State Auditor: Investigations of Improper Activities by State Agencies and Employees Waste, Inefficiency, Misuse of State Resources, Contracting Violations, and Other Improper Governmental Activities
SACRAMENTO, California, Oct. 11 (TNSrep) -- The California State Auditor issued the following report entitled "Investigations of Improper Activities by State Agencies and Employees Waste, Inefficiency, Misuse of State Resources, Contracting Violations, and Other Improper Governmental Activities."
Here are excerpts:
* * *
October 1, 2026
Investigative Report I2026-1
The Governor of California
President pro Tempore of the Senate
Speaker of the Assembly
State Capitol
Sacramento, California 95814
Dear Governor and Legislative Leaders:
The California State Auditor, as authorized by the California
... Show Full Article
SACRAMENTO, California, Oct. 11 (TNSrep) -- The California State Auditor issued the following report entitled "Investigations of Improper Activities by State Agencies and Employees Waste, Inefficiency, Misuse of State Resources, Contracting Violations, and Other Improper Governmental Activities."
Here are excerpts:
* * *
October 1, 2026
Investigative Report I2026-1
The Governor of California
President pro Tempore of the Senate
Speaker of the Assembly
State Capitol
Sacramento, California 95814
Dear Governor and Legislative Leaders:
The California State Auditor, as authorized by the CaliforniaWhistleblower Protection Act, presents this report summarizing some of the investigations of alleged improper governmental activities that my office has recently completed. This report details nine substantiated allegations involving several state agencies. Our investigations found waste, inefficiency, misuse of state resources, contracting violations, and other improper governmental activities. Our findings include approximately $885,000 that state agencies have wasted, misused, did not collect, or spent on purchases that they did not properly advertise.
For instance, an agency cost the State an estimated $107,000 when it did not reduce leave balances for two employees who took leaves of absence. We determined that this error originated in the agency's lack of adequate controls. In another case, an agency enacted a poorly conceived plan to address two employees' accounts receivable, delaying the agency's collection of over $33,000 from the employees for more than a year. We also found that an agency did not advertise solicitations for nearly $624,000 worth of Non-IT goods, so the agency could not ensure that it received the most competitive prices for its purchases. An employee at another agency cost the State $69,000 by misusing a state vehicle and state time for his personal commute.
State agencies must report to my office any corrective or disciplinary action that they have taken in response to recommendations that we have made. Their first reports are due within 60 days after we notify them of the improper activity, after which they report monthly until they have completed the corrective action.
Respectfully submitted,
GRANT PARKS
California State Auditor
Summary
Results in Brief
Under the authority of the California Whistleblower Protection Act, the California State Auditor's Office (State Auditor) conducted investigative work from July 1, 2025, through June 30, 2026, on 1,721 allegations of improper governmental activity, some of which we received prior to this time period. Some of these investigations substantiated improper activities, including waste, inefficiency, misuse of state resources, contracting violations, and other improprieties. We provide information in this report on only a selection of the cases we have investigated as a deterrent for state agencies and state employees so they can avoid similar improper governmental activities.
Department of Health Care Services
The Department of Health Care Services did not reduce an employee's leave balances for two instances of maternity leave, costing the State an estimated $86,000. During our investigation, we found another employee whose leave balances it also did not reduce when she took maternity leave, and we found that the agency did not have adequate controls in place to reduce employees' leave hours when they took such leaves of absence.
State Controller's Office
The State Controller's Office violated state law by failing to collect the accounts receivable for an employee, and its high-ranking officials formed a poorly conceived plan for how to address the accounts receivable for this and another employee, resulting in an unnecessary, year-long delay in collecting more than $33,000 from both employees.
Additionally, two employees at the State Controller's Office teleworked from Idaho, Tennessee, and Alabama while they did not reside in California, contrary to state law.
California Department of Forestry and Fire Protection
An employee at the California Department of Forestry and Fire Protection improperly used a state vehicle to commute between his headquarters and his home or near his home for about five years, costing the State an estimated $42,000. The employee also improperly included commute time between his home and headquarters as time worked, costing the State an estimated $27,000 in salary paid for work not performed.
California Department of Resources Recycling and Recovery
An employee at the California Department of Resources Recycling and Recovery violated the law and misused state funds by renting and driving vehicles for more than one year after her license had been suspended. As a result, the employee put the public at risk, and the State paid nearly $22,000 in expenses for rental vehicles and fuel that the employee incurred while she was not licensed to drive.
Unnamed State Agency
A high ranking law enforcement officer misused access to a confidential law enforcement database by looking up information about himself, his family members, agency staff, and vehicles without a business purpose for doing so. We are not naming the agency that is the subject of this report because doing so may identify or lead to the identification of the individuals mentioned in the report, which would violate state law.
California Department of Education
A manager at the California Department of Education improperly facilitated the hire of an employee with whom she had a long term friendship and, together with the employee, failed to satisfy the requirement that civil service appointments be made and accepted in good faith, which resulted in the employee's appointment being unlawful.
California Department of Transportation
The California Department of Transportation's Division of Equipment neither completed required written solicitations nor advertised for competitive pricing for nearly $624,000 worth of non information technology goods in 2024, resulting in the agency's failure to comply with state contracting requirements and its inability to ensure that it received the most competitive prices for its purchases.
California Student Aid Commission
The California Student Aid Commission selected the most expensive vendor for automated call services, expedited the contract just prior to the end of the fiscal year, and did not follow State Contracting Manual requirements to keep adequate documentation of its procurement process and contractor selection. Consequently, it may not have received the best value on the contract.
Introduction
Under the California Whistleblower Protection Act (Whistleblower Act), anyone who reports in good faith an improper governmental activity is a whistleblower and is protected from retaliation.1 An improper governmental activity is any action by a state agency or by a state employee performing official duties that does any of the following:
* Violates state or federal law.
* Is economically wasteful.
* Involves gross misconduct, incompetence, or inefficiency.
* Does not comply with the State Administrative Manual, the State Contracting Manual, an executive order of the Governor, or a California Rule of Court.
Whistleblowers are critical to ensuring government accountability and public safety. The State Auditor protects the identities of whistleblowers and witnesses to the maximum extent required by law. Retaliation against state employees who file reports is unlawful and may result in monetary penalties and imprisonment.
Ways That Whistleblowers Can Report Improper Governmental Activities
Individuals can report suspected improper governmental activities through the toll-free Whistleblower Hotline (hotline) at (800) 952-5665, by U.S. mail, or through our website at www.auditor.ca.gov/whistleblower/.
Investigation of Whistleblower Allegations
The Whistleblower Act requires our office, as the recipient of whistleblower allegations, to investigate and, when appropriate, authorizes us to report on substantiated improper governmental activity by state agencies and state employees. We may conduct investigations independently, or we may request assistance from other state agencies to perform confidential investigations under our supervision.
As Figure 1 shows, 1,331 of the 1,721 cases for which we conducted investigative work lacked sufficient information for investigation. For another 324 cases, we conducted work--such as analyzing available evidence, contacting witnesses, and requesting information from state agencies--to assess the allegations. We independently investigated or performed follow-up work on implementing recommendations for another 61 cases, and we referred five cases to relevant agencies that could further investigate the matters.
The Whistleblower Act authorizes the State Auditor to issue public reports when investigations substantiate improper governmental activities. When issuing public reports, our office must keep confidential the identities of the whistleblowers, any employees involved, and any individuals providing information in confidence to further the investigations. In this report, we may have changed how we refer to the gender of individuals involved in our investigations to protect their identities.
We may also issue nonpublic reports to the heads of the agencies involved and, if appropriate, to the Office of the Attorney General, the Legislature, relevant policy committees, and any other authority we deem proper. Our office cannot release the identities of the whistleblowers or any individuals providing information in confidence to further the investigations without those individuals' express permission.
Our office performs no enforcement functions: this responsibility lies with the appropriate state agencies, which are required to regularly notify us of any actions they take in response to the investigations, including disciplinary actions, until they complete their final actions.
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The report is posted at: www.auditor.ca.gov/wp-content/uploads/2026/10/I2026-1-Report.pdf
