I2026-1 Investigations of Improper Activities by State Agencies and Employees
Published: October 1, 2026
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 | Current State Auditor Assessment Status |
|---|---|
| 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. | Partially implemented |
| 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. | Pending |
| 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. | Partially implemented |
| 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. | Fully implemented |
| Recommendation 5 Implement a process that complies with state policy to conduct regular audits of employees’ leave balances. | Pending |
Recommendations to the State Controller’s Office (I2024-4034)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Partially implemented |
| 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. | Pending |
Recommendations to the Legislature and State Controller’s Office (I2025-2887)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| Recommendation 8 Amend state law to clearly provide that state employees may not regularly telework from locations outside of California. | Pending |
| Recommendation 9 Take action to bring Manager A and Manager B into compliance with state law with regards to their telework locations. | Resolved |
| Recommendation 10 Take appropriate corrective or disciplinary action against Manager A and Manager B for teleworking from locations not included on their telework plans. | Resolved |
| 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. | Partially implemented |
| 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. | Partially implemented |
Recommendations to CA Dept. of Forestry & Fire Protection (I2025-2448)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| Recommendation 13 Ensure that the employee discontinues the practice of commuting in the state vehicle and counting his commute time as time worked. | Fully implemented |
| Recommendation 14 Ensure that the employee’s headquarters are properly designated and determine the best place near his headquarters to store the state vehicle. | Fully implemented |
| 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. | Partially implemented |
| 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. | Partially implemented |
| 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. | Fully implemented |
Recommendations to CA Dept. of Resources Recycling & Recovery (I2025-1481)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Pending |
| 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. | Pending |
| Recommendation 20 Identify and enroll all current employees who are required to participate in the DMV notice program. | Pending |
| 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. | Pending |
Recommendations to Unnamed State Agency (I2025-2954)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Pending |
Recommendations to CA Dept. of Education (I2025-1797)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Pending |
| Recommendation 24 Take appropriate corrective or disciplinary action against the manager for her actions during the recruitment. | Pending |
| 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. | Pending |
Recommendations to CA Dept. of Transportation (I2025-4145)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Pending |
| Recommendation 27 Consider creating a guide for Parts staff describing how different acquisition methods relate to delegated purchasing authority limits and competitive solicitation requirements. | Pending |
| Recommendation 28 Strengthen internal controls to ensure that the division follows all competitive solicitation requirements, including advertising in the Register when applicable. | Pending |
Recommendations to CA Student Aid Commission and CA Dept. of General Services (I2025-4174)
| Recommendation | Current State Auditor Assessment Status |
|---|---|
| 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. | Pending |
| Recommendation 30 Provide additional training to applicable staff regarding proper documentation in procurement files. | Pending |
| 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. | Pending |
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.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
DHCS reported that it has reviewed the extended leaves of absence taken by the employees and plans to reduce their leave balances accordingly after verifying the appropriate number of hours needing reduction.
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.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Pending
Agency Response on 10/01/2026
DHCS stated that its Human Resources staff will review its policies and procedures to determine whether corrective action is necessary for Employee A.
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.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
DHCS reported that its Human Resources staff will review extended leaves of absence taken during 2023 and 2024 to ensure that employees’ leave balances were reduced accordingly and that its Internal Audits will review the assessment.
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.
Agency response status:
Fully implemented
Date of implementation:
April 2026
State Auditor assessment status:
Fully implemented
Agency Response on 10/01/2026
DHCS outlined the changes it has made to its timesheet completion process for employees on extended leave, including the addition of a manager’s secondary review for completeness.
Recommendation 5
Implement a process that complies with state policy to conduct regular audits of employees’ leave balances.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Pending
Agency Response on 10/01/2026
DHCS has not yet provided information on how it plans to ensure that it conducts 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.
Agency response status:
Not fully implemented
Date of implementation:
1/1/2027
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
The SCO has reported that one employee has completely satisfied the account receivable and it is beginning deductions for the other employee.
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.
Agency response status:
Not fully implemented
Date of implementation:
1/1/27
State Auditor assessment status:
Pending
Agency Response on 10/01/2026
The SCO reported that it is in the process of implementing our recommendations, including reminding staff about the requirements governing accounts receivable collections.
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.
Agency response status:
Not fully implemented
State Auditor assessment status:
Pending
Agency Response on 10/01/2026
Not applicable.
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.
Agency response status:
Will not implement
Date of implementation:
Oct. 2026
State Auditor assessment status:
Resolved
Agency Response on 10/01/2026
The SCO reported that both employees have separated from the SCO.
Recommendation 10
Take appropriate corrective or disciplinary action against Manager A and Manager B for teleworking from locations not included on their telework plans.
Agency response status:
Will not implement
Date of implementation:
Oct. 2026
State Auditor assessment status:
Resolved
Agency Response on 10/01/2026
The SCO reported that both employees separated from the SCO.
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.
Agency response status:
Not fully implemented
Date of implementation:
1/1/2027
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
The SCO reported that it is in the process of finalizing updated policies related to 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.
Agency response status:
Not fully implemented
Date of implementation:
1/1/2027
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
The SCO reported that it is finalizing an updated telework policy. The policy will include an internal process to periodically monitor the locations from which employees are teleworking.
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.
Agency response status:
Fully implemented
Date of implementation:
Dec. 2025
State Auditor assessment status:
Fully implemented
Agency Response on 10/01/2026
CAL FIRE reported that the unit chief informed the employee’s supervisor that the employee is required to report to his assigned duty station by his scheduled start time each workday. Further, CAL FIRE informed us that the employee’s supervisor provided the employee with the expectations that he should no longer take an assigned vehicle home.
Recommendation 14
Ensure that the employee’s headquarters are properly designated and determine the best place near his headquarters to store the state vehicle.
Agency response status:
Fully implemented
Date of implementation:
Dec. 2025
State Auditor assessment status:
Fully implemented
Agency Response on 10/01/2026
CAL FIRE informed us that the employee’s supervisor provided the employee with the expectations that he must store the vehicle at his assigned duty station.
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.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
CAL FIRE reported that it had completed its own investigation into the employee’s conduct, substantiated the allegations of misuse, and implemented appropriate action. CAL FIRE also stated that it had initiated a validation of the financial data and intends to establish an account receivable after it finalizes its data.
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.
Agency response status:
Not fully implemented
Date of implementation:
Pending
State Auditor assessment status:
Partially implemented
Agency Response on 10/01/2026
CAL FIRE reported that it had completed its own investigation into the employee’s conduct, substantiated the allegations of misuse, and implemented appropriate action. CAL FIRE also initiated a validation of the financial data and intends to establish an account receivable after it finalizes its data.
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.
Agency response status:
Fully implemented
Date of implementation:
Dec. 2025
State Auditor assessment status:
Fully implemented
Agency Response on 10/01/2026
CAL FIRE reported that it educated the employee’s supervisor on the proper use of state vehicles and the appropriate use of claimed time.
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.
Agency response status:
Pending
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.
Agency response status:
Pending
Recommendation 20
Identify and enroll all current employees who are required to participate in the DMV notice program.
Agency response status:
Pending
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.
Agency response status:
Pending
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.
Agency response status:
Pending
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.
Agency response status:
Pending
Recommendation 24
Take appropriate corrective or disciplinary action against the manager for her actions during the recruitment.
Agency response status:
Pending
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.
Agency response status:
Pending
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.
Agency response status:
Pending
Recommendation 27
Consider creating a guide for Parts staff describing how different acquisition methods relate to delegated purchasing authority limits and competitive solicitation requirements.
Agency response status:
Pending
Recommendation 28
Strengthen internal controls to ensure that the division follows all competitive solicitation requirements, including advertising in the Register when applicable.
Agency response status:
Pending
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.
Agency response status:
Pending
Recommendation 30
Provide additional training to applicable staff regarding proper documentation in procurement files.
Agency response status:
Pending
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.
Agency response status:
Pending
