I2026-1 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 CA Dept. of Health Care Services (I2025-3231)

Recommendation 1

Determine the specific number of hours DHCS should have charged both employees for their maternity leaves of absence and subsequently reduce all leave balances that it is able to reduce or establish an accounts receivable for the amounts they were paid while on leave.

Recommendation 2

Determine whether Employee A’s failure to notify DHCS of the oversight in both instances warrants corrective or disciplinary action and take any actions it deems appropriate.

Recommendation 3

Require its Internal Audits staff to audit the leave records of employees who took an extended leave of absence in calendar years 2023 and 2024 to ensure that DHCS properly reduced the employees’ leave balances.

Recommendation 4

Review its current process for leave reporting to ensure that it provides proper oversight of timesheets and leave usage for employees who go on extended leave and bolster the process as warranted.

Recommendation 5

Implement a process that complies with state policy to conduct regular audits of employees’ leave balances.

Recommendations to the State Controller’s Office (I2024-4034)

Recommendation 6

Immediately begin collecting the overpayment made to Employee A and coordinate with Employee B’s current state employer to collect the overpayment made to her.

Recommendation 7

Provide a reminder to all SCO staff who engage with the accounts receivable process and to all members of SCO executive management team about the requirements in law and the State Administrative Manual for collecting accounts receivable.

Recommendations to the Legislature and State Controller’s Office (I2025-2887)

Recommendation to the Legislature

Recommendation 8

Amend state law to clearly provide that state employees may not regularly telework from locations outside of California.

Recommendations to State Controller’s Office

Recommendation 9

Take action to bring Manager A and Manager B into compliance with state law with regards to their telework locations.

Recommendation 10

Take appropriate corrective or disciplinary action against Manager A and Manager B for teleworking from locations not included on their telework plans.

Recommendation 11

Update and disseminate to all SCO staff policies, procedures, and practices to comply with and communicate the provisions of Government Code 14200 and the guidance from CalHR regarding out-of-state telework.

Recommendation 12

Implement a process to periodically monitor the locations from which employees are teleworking, such as by reviewing the locations of SCO-issued mobile devices, to determine whether telework locations appear to violate either state law or departmental expectations.

Recommendations to CA Dept. of Forestry & Fire Protection (I2025-2448)

Recommendation 13

Ensure that the employee discontinues the practice of commuting in the state vehicle and counting his commute time as time worked.

Recommendation 14

Ensure that the employee’s headquarters are properly designated and determine the best place near his headquarters to store the state vehicle.

Recommendation 15

Further investigate to determine the extent of the vehicle misuse, calculate the amount of funds it can recover for the misuse, and take appropriate steps to recover those funds, if warranted.

Recommendation 16

Determine the amount of compensatory time the employee over-claimed and take appropriate steps to hold him accountable for salary he received for work that he did not perform, including taking appropriate corrective or disciplinary action and collecting any overpayments made for hours that the employee did not work.

Recommendation 17

Provide appropriate training to the manager on the proper use of state vehicles and on how to implement proper controls so that employees do not claim time that they do not actually work.

Recommendations to CA Dept. of Resources Recycling & Recovery (I2025-1481)

Recommendation 18

Determine whether the amounts that CalRecycle paid for the employee’s rental vehicles, including fuel costs, are recoverable, and pursue collection from the employee, if appropriate.

Recommendation 19

Consider including in the employee’s official personnel file documentation that she failed to enroll in the DMV notice program and operated vehicles while her driver’s license was suspended.

Recommendation 20

Identify and enroll all current employees who are required to participate in the DMV notice program.

Recommendation 21

Develop and communicate a policy and procedures that ensure that all employees who are required to participate in the DMV notice program are enrolled.

Recommendations to Unnamed State Agency (I2025-2954)

Recommendation 22

Complete the implementation of all corrective action plan items agreed upon with the DOJ, which include the following:

• Enhanced supervisory review of CLETS access and usage.
• Increased auditing and monitoring of CLETS transactions.
• Periodic validation of user access privileges to ensure a continued business need.
• Strengthened user accountability through documented acknowledgments of authorized-use requirements.
• Mandatory refresher training that addresses CLETS security, confidentiality, and misuse provisions.
• Reinforcement of reporting obligations for suspected violations.
• Review and enhancement of internal policies, procedures, and access-control practices to ensure continued alignment with DOJ and Criminal Justice Information Services security requirements.

Recommendations to CA Dept. of Education (I2025-1797)

Recommendation 23

In consultation with CalHR and SPB, review the circumstances surrounding this appointment—including whether the department made, and the employee accepted, the appointment in good faith—and take appropriate action based on the results of the review. Such action could include, but not be limited to, requesting that CalHR and SPB void the employee’s appointment and obtain any compensation to the employee that may be recovered, if appropriate.

Recommendation 24

Take appropriate corrective or disciplinary action against the manager for her actions during the recruitment.

Recommendation 25

Update CDE’s hiring policies to provide clear expectations for the use of supplemental experience forms and clearly define the policy and expectations of hiring managers and other CDE staff participating in recruitments when they have close personal relationships with candidates that could compromise the integrity of the hiring process.

Recommendations to CA Dept. of Transportation (I2025-4145)

Recommendation 26

Provide training to Parts staff who are responsible for procurement activities to ensure that they are aware of and understand applicable laws and SCM requirements for the different acquisition methods available to the division.

Recommendation 27

Consider creating a guide for Parts staff describing how different acquisition methods relate to delegated purchasing authority limits and competitive solicitation requirements.

Recommendation 28

Strengthen internal controls to ensure that the division follows all competitive solicitation requirements, including advertising in the Register when applicable.

Recommendations to CA Student Aid Commission and CA Dept. of General Services (I2025-4174)

Recommendations to CA Student Aid Commission

Recommendation 29

Evaluate its current policies and procedures related to procurement documentation and strengthen and revise them as warranted to ensure that staff follow state contracting rules.

Recommendation 30

Provide additional training to applicable staff regarding proper documentation in procurement files.

Recommendation to CA Dept. of General Services

Recommendation 31

Complete a review of Student Aid’s procurement with Vendor A to determine whether it is consistent with its policies and expectations and consider whether a wider audit of Student Aid contracts is warranted.