Auditor Reports Improper Activities by State Employees


The state auditor released a report January 18 detailing several examples of waste, fraud and mismanagement within the state government. The auditor's key findings:

  • The Department of Corrections and Rehabilitation wasted at least $366,656 in state funds when it took 35 months to investigate an allegation regarding the competency of a psychiatrist (he was accused of negligently under-prescribing, over-prescribing and inappropriately prescribing drugs). During this time, the employee continued to receive his full salary, and in fact was granted two merit-based salary increases, and continued to accrue 226 hours (equivalent to $29,149) of leave paid to him upon his termination.

  • The California Conservation Corps circumvented competitive bidding requirements when it purchased $64,666 worth of clothing and boots by splitting the purchase into three orders rather than competitively bidding the purchase as required for purchases of goods over $25,000.

  • From June 2006 through August 2009, a supervisor at Kern Valley State Prison allowed an employee to take two-hour breaks nearly every day for three years. As a result, the state paid the employee $23,937 for 1,160 hours during which he was not performing his job duties.

  • The Department of Transportation paid two employees $2,080 in total for hours that they did not work because they repeatedly left work early to teach classes at a local community college – even though both employees had been previously reprimanded for similar actions.

(Source: California State Auditor Report I2010-2, January 18.)

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