I2025-1 Investigations of Improper Activities by State Agencies and Employees

Audit Recommendations Disclosure

When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor’s assessment of auditee’s response based on our review of the supporting documentation.

Recommendations to California Air Resources Board

Recommendation 4

Recommendation 6

Determine whether its managers and supervisors require additional training on CARB’s leave policies and provide such training as needed.

Recommendations to California Department of Veterans Affairs

Recommendation 7

Report to the SCO previously unreported and underreported taxable fringe housing benefits for the 12 employee-tenants and inform these employee-tenants of their potential tax liabilities.

Provide training to the manager and to CalVet’s Human Resources personnel who report taxable fringe housing benefits to ensure that all individuals involved in such reporting to the SCO understand their responsibilities.

Develop and document a process in which the manager and CalVet Human Resources consult monthly regarding the information they must each determine to make accurate reports to the SCO.

Recommendations to Department of Alcoholic Beverage Control

Recommendation 10

Review the vehicle use of the employees identified in this report and recoup the cost of any state vehicle misuse.

Take appropriate corrective action for those individuals.

Ensure that the supervisor and managers involved in this investigation have received training on and are familiar with ABC policy and state law related to state vehicle use.

Determine whether the department’s vehicle misuse extends beyond managers who report to the supervisor and address identified misuse, if any.

Review the receipts that Employees A and B submitted, ensure that the State has received all items that these employees purchased, that all of these purchased items are appropriate, and that the items have been inventoried where required.

Take appropriate corrective action for those involved and ensure that they receive training on and are familiar with State Parks policy and state law related to procurement.

Correct the control deficiencies we identified, including adding all assets that cost more than $400 to the inventory list and creating a process for the separation of duties in purchasing.

Provide training to all relevant managers on the applicable policies, laws, and internal controls related to purchasing and procurement.