Implementation of State Auditor's Recommendations - 2013

Classified by Standing/Policy Committee

On this page we include links to summaries of audit reports we issued during the previous two years that relate to policy areas that generally correspond to the Assembly and Senate standing committees.

Because an audit or investigation may involve more than one issue or because it may cross the jurisdictions of more than one standing committee, a report summary could be included in more than one policy area. For example, for an audit of the state overtime costs, the audit report summary would be listed under three policy areas—Governmental Organization; Labor, Employment and Industrial Relations; and Public Employees and Retirement.

We also provide the following links to our audit report summaries classified by auditee/entity and by budget subcommittee.

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Classified by Auditee
Classified by Budget Subcommittee

View the executive summary for the original audit report by clicking on the report number. The executive summary includes a link to the complete original audit report in PDF format.

View the summary of each audit report and the status of the auditee's implementation of the State Auditor's recommendations for each report by clicking on the report title.


View the complete Special Report to Assembly and Senate Standing/Policy Committees or view individual sections of the report by using the following links:

Report Cover
Transmittal Letter
Introduction and Summary Table
Audit Report Summaries by Policy Area

IndexState And Local Entities with Recommendations from Audits Included In This Special Report

Policy Areas

Banking and Finance
Business, Professions, and Consumer Protection
Education
Governmental Organization
Health
Higher Education
Housing and Community Development
Human Services
Insurance
Jobs, Economic Development, and the Economy
Judiciary
Labor and Employment
Local Government
Natural Resources
Public Employees, Retirement and Social Security
Public Safety
Revenue and Taxation
Transportation
Water, Parks and Wildlife
Investigative Reports


Banking and Finance

Report Number 2010-123 (Issued 2011-02-24)
California Housing Finance Agency: Most Indicators Point to Continued Solvency Despite Its Financial Difficulties Created, in Part, by Its Past Decisions

Report Number 2011-118/2011-613 (Issued 2012-08-23)
Conduit Bond Issuers: Issuers Complied With Key Bond Requirements, but Two Joint Powers Authorities' Compensation Models Raise Conflict-of-Interest Concerns

Business, Professions, and Consumer Protection

Report Number 2011-106 (Issued 2011-11-29)
Intellectual Property: An Effective Policy Would Educate State Agencies and Take Into Account How Their Functions and Property Differ

Report Number 2011-116.1 (Issued 2011-12-08)
Department of General Services: The Division of the State Architect Lacks Enforcement Authority and Has Weak Oversight Procedures, Increasing the Risk That School Construction Projects May Be Unsafe

Report Number 2011-116.2 (Issued 2012-05-31)
Department of General Services: Strengthening the Division of the State Architect's Workload Management and Performance Measurements Could Help It Avoid Delays in Processing Future Increases in Workload

Report Number 2011-119 (Issued 2012-06-26)
Physical Therapy Board of California: Although It Can Make Improvements, It Generally Processes Complaints and Monitors Conflict-of-Interest Requirements Appropriately

Education

Report Number 2010-119 (Issued 2011-04-07)
Commission on Teacher Credentialing: Despite Delays in Discipline of Teacher Misconduct, the Division of Professional Practices Has Not Developed an Adequate Strategy or Implemented Processes That Will Safeguard Against Future Backlogs

Report Number 2011-116.1 (Issued 2011-12-08)
Department of General Services: The Division of the State Architect Lacks Enforcement Authority and Has Weak Oversight Procedures, Increasing the Risk That School Construction Projects May Be Unsafe

Report Number 2011-116.2 (Issued 2012-05-31)
Department of General Services: Strengthening the Division of the State Architect's Workload Management and Performance Measurements Could Help It Avoid Delays in Processing Future Increases in Workload

Report Number 2011-117 (Issued 2012-03-15)
High School Graduation and Dropout Data: California's New Database May Enable the State to Better Serve Its High School Students Who Are at Risk of Dropping Out

Report Number 2012-103 (Issued 2012-11-29)
Los Angeles Unified School District: It Could Do More to Improve Its Handling of Child Abuse Allegations

Governmental Organization

Report Number 2010-036 (Issued 2011-02-15)
Indian Gaming Special Distribution Fund: Local Governments Continue to Have Difficulty Justifying Distribution Fund Grants

Report Number 2011-103 (Issued 2012-01-31)
California's Mutual Aid System: The California Emergency Management Agency Should Administer the Reimbursement Process More Effectively

Report Number 2012-039 (Issued 2012-04-26)
Fi$Cal Status Letter

Health

Report Number 2011-104 (Issued 2011-12-13)
Medi-Cal Managed Care Program: The Departments of Managed Health Care and Health Care Services Could Improve Their Oversight of Local Initiatives Participating in the Medi-Cal Two-Plan Model

Report Number 2011-113 (Issued 2012-03-08)
Salinas Valley Memorial Healthcare System: Increased Transparency and Stronger Controls Are Necessary as It Focuses on Improving Its Financial Situation

Report Number 2011-119 (Issued 2012-06-26)
Physical Therapy Board of California: Although It Can Make Improvements, It Generally Processes Complaints and Monitors Conflict-of-Interest Requirements Appropriately

Report Number 2011-126 (Issued 2012-08-09)
Nonprofit Hospitals: Statute Prevents State Agencies From Considering Community Benefits When Granting Tax-Exempt Status, While the Effects of Purchases and Consolidations on Prices of Care Are Uncertain

Report Number 2012-042 (Issued 2012-07-12)
Children's Hospital Program: Fund Disbursements Are Appropriate, but Estimates of Cash Needs Have Been Consistently High

Report Number 2012-105 (Issued 2012-11-27)
Departments of Public Health and Social Services: Weaknesses in the Administration of the Child Health and Safety Fund and the State Children's Trust Fund Limit Their Effectiveness

Higher Education

Report Number 2010-105 (Issued 2011-07-28)
University of California: Although the University Maintains Extensive Financial Records, It Should Provide Additional Information to Improve Public Understanding of Its Operations

Report Number 2012-032 (Issued 2012-10-16)
California's Postsecondary Educational Institutions: Some Institutions Have Not Fully Complied With Federal Crime Reporting Requirements

Housing and Community Development

Report Number 2010-123 (Issued 2011-02-24)
California Housing Finance Agency: Most Indicators Point to Continued Solvency Despite Its Financial Difficulties Created, in Part, by Its Past Decisions

Report Number 2011-103 (Issued 2012-01-31)
California's Mutual Aid System: The California Emergency Management Agency Should Administer the Reimbursement Process More Effectively

Report Number 2011-118/2011-613 (Issued 2012-08-23)
Conduit Bond Issuers: Issuers Complied With Key Bond Requirements, but Two Joint Powers Authorities' Compensation Models Raise Conflict-of-Interest Concerns

Report Number 2012-037 (Issued 2012-10-23)
Department of Housing and Community Development: Awards of Housing Bond Funds Are Appropriate, but Cash Balances Are High and Monitoring Continues to Need Improvement

Human Services

Report Number 2010-121 (Issued 2011-09-29)
Foster Family Home and Small Family Home Insurance Fund: Expanding Its Coverage Will Increase Costs and the Department of Social Services Needs to Improve Its Management of the Insurance Fund

Report Number 2011-101.1 (Issued 2011-10-27)
Child Welfare Services: California Can and Must Provide Better Protection and Support for Abused and Neglected Children

Report Number 2011-101.2 (Issued 2012-03-29)
Los Angeles County Department of Children and Family Services: Management Instability Hampered Efforts to Better Protect Children

Report Number 2012-105 (Issued 2012-11-27)
Departments of Public Health and Social Services: Weaknesses in the Administration of the Child Health and Safety Fund and the State Children's Trust Fund Limit Their Effectiveness

Insurance

Report Number 2010-112 (Issued 2011-03-24)
Employment Development Department: Its Unemployment Program Has Struggled to Effectively Serve California's Unemployed in the Face of Significant Workload and Fiscal Challenges

Report Number 2010-121 (Issued 2011-09-29)
Foster Family Home and Small Family Home Insurance Fund: Expanding Its Coverage Will Increase Costs and the Department of Social Services Needs to Improve Its Management of the Insurance Fund

Jobs, Economic Development, and the Economy

Report Number 2010-102 (Issued 2011-02-08)
Administrative Office of the Courts: The Statewide Case Management Project Faces Significant Challenges Due to Poor Project Management

Report Number 2011-106 (Issued 2011-11-29)
Intellectual Property: An Effective Policy Would Educate State Agencies and Take Into Account How Their Functions and Property Differ

Report Number 2011-111 (Issued 2012-03-27)
Federal Workforce Investment Act: More Effective State Planning and Oversight Is Necessary to Better Help California's Job Seekers Find Employment

Judiciary

Report Number 2009-109 (Issued 2011-01-20)
Sacramento and Marin Superior Courts: Both Courts Need to Ensure That Family Court Appointees Have Necessary Qualifications, Improve Administrative Policies and Procedures, and Comply With Laws and Rules

Report Number 2010-102 (Issued 2011-02-08)
Administrative Office of the Courts: The Statewide Case Management Project Faces Significant Challenges Due to Poor Project Management

Report Number 2011-030 (Issued 2011-05-26)
State Bar of California: Its Lawyer Assistance Program Lacks Adequate Controls for Reporting on Participating Attorneys

Labor and Employment

Report Number 2010-112 (Issued 2011-03-24)
Employment Development Department: Its Unemployment Program Has Struggled to Effectively Serve California's Unemployed in the Face of Significant Workload and Fiscal Challenges

Report Number 2011-111 (Issued 2012-03-27)
Federal Workforce Investment Act: More Effective State Planning and Oversight Is Necessary to Better Help California's Job Seekers Find Employment

Local Government

Report Number 2010-036 (Issued 2011-02-15)
Indian Gaming Special Distribution Fund: Local Governments Continue to Have Difficulty Justifying Distribution Fund Grants

Report Number 2011-101.1 (Issued 2011-10-27)
Child Welfare Services: California Can and Must Provide Better Protection and Support for Abused and Neglected Children

Report Number 2011-101.2 (Issued 2012-03-29)
Los Angeles County Department of Children and Family Services: Management Instability Hampered Efforts to Better Protect Children

Report Number 2011-103 (Issued 2012-01-31)
California's Mutual Aid System: The California Emergency Management Agency Should Administer the Reimbursement Process More Effectively

Report Number 2011-104 (Issued 2011-12-13)
Medi-Cal Managed Care Program: The Departments of Managed Health Care and Health Care Services Could Improve Their Oversight of Local Initiatives Participating in the Medi-Cal Two-Plan Model

Report Number 2011-113 (Issued 2012-03-08)
Salinas Valley Memorial Healthcare System: Increased Transparency and Stronger Controls Are Necessary as It Focuses on Improving Its Financial Situation

Report Number 2011-118/2011-613 (Issued 2012-08-23)
Conduit Bond Issuers: Issuers Complied With Key Bond Requirements, but Two Joint Powers Authorities' Compensation Models Raise Conflict-of-Interest Concerns

Report Number 2011-120 (Issued 2012-08-16)
California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties

Report Number 2011-121 (Issued 2012-09-06)
Probationers' Domestic Violence Payments: Improved Processes for Managing and Distributing These Payments Could Increase Support for Local Shelters

Report Number 2011-127 (Issued 2012-08-28)
Metropolitan Transportation Commission: The Use of Toll Revenues to Purchase a New Headquarters Building Is Likely Legal, but the Transaction Exposes Toll Payers to Undisclosed Financial Risk

Report Number 2011-131 (Issued 2012-06-28)
City of Vernon: Although Reform Is Ongoing, Past Poor Decision Making Threatens Its Financial Stability

Report Number 2012-106 (Issued 2012-08-20)
City of San José: Some Retirement Cost Projections Were Unsupported Although Rising Retirement Costs Have Led to Reduced City Services

Natural Resources

Report Number 2010-125 (Issued 2011-08-23)
State Lands Commission: Because It Has Not Managed Public Lands Effectively, the State Has Lost Millions in Revenue for the General Fund

Report Number 2011-123 (Issued 2012-08-14)
Oil Spill Prevention and Administration Fund: The Department of Fish and Game and the Office of Spill Prevention and Response Need to Improve Their Administration of the Spill Fund

Public Employees, Retirement and Social Security

Report Number 2012-106 (Issued 2012-08-20)
City of San José: Some Retirement Cost Projections Were Unsupported Although Rising Retirement Costs Have Led to Reduced City Services

Public Safety

Report Number 2010-116 (Issued 2011-07-12)
Sex Offender Commitment Program: Streamlining the Process for Identifying Potential Sexually Violent Predators Would Reduce Unnecessary or Duplicative Work

Report Number 2010-118 (Issued 2011-05-24)
California Prison Industry Authority: It Can More Effectively Meet Its Goals of Maximizing Inmate Employment, Reducing Recidivism, and Remaining Self-Sufficient

Report Number 2010-124 (Issued 2011-09-06)
Department of Corrections and Rehabilitation: The Benefits of Its Correctional Offender Management Profiling for Alternative Sanctions Program Are Uncertain

Report Number 2011-110 (Issued 2012-02-16)
Office of Traffic Safety: Although It Exercises Limited Oversight of Sobriety Checkpoints, Law Enforcement Agencies Have Complied With Applicable Standards

Report Number 2011-121 (Issued 2012-09-06)
Probationers' Domestic Violence Payments: Improved Processes for Managing and Distributing These Payments Could Increase Support for Local Shelters

Report Number 2011-129 (Issued 2012-09-11)
Juvenile Justice Realignment: Limited Information Prevents a Meaningful Assessment of Realignment's Effectiveness

Report Number 2012-103 (Issued 2012-11-29)
Los Angeles Unified School District: It Could Do More to Improve Its Handling of Child Abuse Allegations

Revenue and Taxation

Report Number 2011-126 (Issued 2012-08-09)
Nonprofit Hospitals: Statute Prevents State Agencies From Considering Community Benefits When Granting Tax-Exempt Status, While the Effects of Purchases and Consolidations on Prices of Care Are Uncertain

Report Number 2011-131 (Issued 2012-06-28)
City of Vernon: Although Reform Is Ongoing, Past Poor Decision Making Threatens Its Financial Stability

Transportation

Report Number 2010-122 (Issued 2011-04-28)
California Department of Transportation: Its Capital Outlay Support Program Should Strengthen Budgeting Practices, Refine Its Performance Measures, and Improve Internal Controls

Report Number 2011-110 (Issued 2012-02-16)
Office of Traffic Safety: Although It Exercises Limited Oversight of Sobriety Checkpoints, Law Enforcement Agencies Have Complied With Applicable Standards

Report Number 2011-120 (Issued 2012-08-16)
California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties

Report Number 2011-127 (Issued 2012-08-28)
Metropolitan Transportation Commission: The Use of Toll Revenues to Purchase a New Headquarters Building Is Likely Legal, but the Transaction Exposes Toll Payers to Undisclosed Financial Risk

Report Number 2011-504 (Issued 2012-01-24)
High-Speed Rail Authority Follow-Up: Although the Authority Addressed Some of Our Prior Concerns, Its Funding Situation Has Become Increasingly Risky and the Authority's Weak Oversight Persists

Water, Parks and Wildlife

Report Number 2010-117 (Issued 2011-05-19)
General Obligation Bonds: The Departments of Water Resources and Finance Should Do More to Improve Their Oversight of Bond Expenditures

Investigative Reports

Report Number I2008-1021 (Issued 2011-01-18)
Investigations of Improper Activities by State Employees: Delay in Reassigning an Incompetent Psychiatrist, Misuse of State Resources, Failure to Protect the Security of Confidential Documents, Theft of Registration Fees, and Other Violations of State Law (California Conservation Corps)

Report Number I2007-0887 (Issued 2011-01-18)
Investigations of Improper Activities by State Employees: Delay in Reassigning an Incompetent Psychiatrist, Misuse of State Resources, Failure to Protect the Security of Confidential Documents, Theft of Registration Fees, and Other Violations of State Law (Department of Corrections and Rehabilitation)

Report Number I2009-0607 (Issued 2011-01-18)
Investigations of Improper Activities by State Employees: Delay in Reassigning an Incompetent Psychiatrist, Misuse of State Resources, Failure to Protect the Security of Confidential Documents, Theft of Registration Fees, and Other Violations of State Law (Department of Corrections and Rehabilitation)

Report Number I2008-1024 (Issued 2011-01-18)
Investigations of Improper Activities by State Employees: Delay in Reassigning an Incompetent Psychiatrist, Misuse of State Resources, Failure to Protect the Security of Confidential Documents, Theft of Registration Fees, and Other Violations of State Law (Department of General Services)

Report Number I2008-0731 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (Department of Transportation)

Report Number I2010-0844 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (California Energy Commission)

Report Number I2009-1203 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (Department of Corrections and Rehabilitation)

Report Number I2009-0601 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (Department of Fish and Game)

Report Number I2008-0902 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (Department of Industrial Relations)

Report Number I2009-0644 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (Department of Mental Health)

Report Number I2009-1476 (Issued 2011-08-25)
Investigations of Improper Activities by State Agencies and Employees: Waste of State Funds, Misuse of State Resources, Falsification of Records, Inexcusable Neglect of Duty, Failure to Monitor Time Reporting, and Other Violations of State Law (State Controller's Office)

Report Number I2009-0689 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (California Correctional Health Care Services and Department of Corrections and Rehabilitation)

Report Number I2010-1151 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (California Correctional Health Care Services and Department of Corrections and Rehabilitation)

Report Number I2011-1083 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (California Department of Education)

Report Number I2009-1341 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (California State Athletic Commission)

Report Number I2009-1218 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (Department of Fish and Game)

Report Number I2008-1217 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (Employment Development Department)

Report Number I2009-0634 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (Franchise Tax Board and Office of the Secretary of State)

Report Number I2009-1321 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (Natural Resources Agency)

Report Number I2010-1022 (Issued 2012-12-11)
Investigations of Improper Activities by State Agencies and Employees: Bribery, Conspiracy to Commit Mail Fraud, Improper Overtime Payments, Improper Use of Lease Proceeds, Improper Travel Expenses, and Other Violations of State Law (University of California, Office of the President)


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