Report 2005-105 Highlights - September 2005

Department of Corrections:

It Needs to Better Ensure Against Conflicts of Interest and to Improve Its Inmate Population Projections


Our review of the California Department of Corrections' (department) processing of two no-bid community correctional facility (CCF) contracts and its projections of inmate populations revealed the following:

  • Although one CCF contract was never executed, actions taken by two of the contractor's employees who formerly worked for the department may have violated conflict-of-interest laws.
  • The department does not ensure that retired annuitants in designated positions file statements of economic interests.
  • The department, the facility owner, and the potential contractor all incurred costs before the department received approval to proceed with a no-bid contract.
  • Information the department relied upon to determine the need for the no-bid contracts appears accurate.
  • The department's inmate population projections are useful for budgeting, but have limited value for longer-range planning, such as determining when to build additional facilities.
  • Because certain practices increase the subjectivity of the department's projections and no documentation of the projection process exists, our statistical expert could not establish the validity of the projection process.

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