California State Auditor

Report Fraud, Waste and Abuse

The Recovery Act encourages the reporting and investigation of waste, fraud, and abuse that occurs in connection with the distribution of federal stimulus funds to state and local governments and to private contractors. Employees of government and private businesses receiving federal stimulus funds are given special protection under the law against retaliation by their employer for reporting any of the following:

  • gross mismanagement of a contract or grant;
  • gross waste of stimulus funds;
  • any danger to public health or safety related to the use of stimulus funds;
  • abuse of authority related to stimulus funds; or
  • violations of any statute, regulation, or rule relating to a contract or grant.

These protections are in addition to the protections against retaliation otherwise afforded to California state employees who file a complaint under the California Whistleblower Protection Act.

You may report fraud, waste, and abuse involving federal stimulus funds to the State Auditor. Although the State Auditor is only authorized to investigate reports about California state agencies and employees, any reports received by the State Auditor about the misuse of federal stimulus funds by agencies and persons outside of the State Auditor's jurisdiction will be referred by staff to the appropriate authorities. Anyone complaining to the State Auditor about a misuse of stimulus funds has a right to remain confidential. Complaints may even be filed anonymously. For more information on filing a complaint, go to File a Complaint.

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