California auditor finds millions in wasted dollars in state agencies

The California State Auditor’s office found that several agencies wasted, misused or failed to report over $5 million in funds.

The report released earlier this month found five substantiated allegations involving state agencies.

Some $4.6 million was wasted on monthly service fees for over 6,200 mobile devices that went repeatedly unused, in many cases for over two years, by the Employment Development Department.

The agency said it was unaware that the funds were being wasted the past five years despite having access to reports.

Another agency, the California Air Resources Board, was found to have compensated an employee who was on extended leave and preparing for retirement, resulting in an extra $170,000 paid from June 2023 to August 2024.

At the Veterans Home of California-Yountville, roughly $400,000 in taxable fringe benefits were not reported from 2023 through 2025. The money was from taxable housing benefits for employees who rented state-owned housing on the facility grounds. They may now face significant unpaid tax liabilities.

At the Department of Alcoholic Beverage Control, a manager misused state vehicles to commute and for other personal drives. He stored the vehicles at his home without the proper permitting and did not log trips.

Two employees at the Department of Parks and Recreation submitted receipts that were altered to make it look like the purchases were for work. One employee allowed others to use his card, and both failed to record some purchases.

The report noted that some agencies are taking measures to stop the waste.

EDD has since terminated service for over 2,800 mobile devices and implemented a policy that will terminate service for any cellphone not used for three months.

CARB said it was in the process of collecting the overpaid leave money.

At CalVet, the agency said it will report the taxable fringe housing benefits.

At ABC, a manager was placed on leave for the misuse of agency vehicles, and further corrective action is pending.

At Parks and Recreation, an employee lost card privileges after misusing it.

This report came after Minnesota’s scandal involving many from its Somali diaspora. Over 90 people have been accused and some convicted of defrauding hundreds of millions of dollars from the state.

Two Democrats, Gov. Tim Walz and Somali American Rep. Ilhan Omar, are especially targets.

“The fraud is not small. It isn’t isolated. The magnitude cannot be overstated,” Assistant U.S. Attorney Joseph Thompson said at a press conference last week. “What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud.”