One employee misused state-owned equipment, materials and staff to perform side jobs, investigators said.
The association’s leaders “did not institute basic safeguards that could have prevented and discouraged improper activities,” the report said.

Side Jobs on the Taxpayers’ Dime

For example, a fair employee punched in at work, took a state vehicle to perform work on a side job, and then returned at day’s end to punch out on his time card.
Employees racked up more than $132,000 in credit card purchases with no supporting receipts and another $130,000 of individual credit card purchases without the required approval of the CEO, the report said.
The state also paid more than $5,100 for late fees and interest because the association didn’t pay its credit card bills on time, according to auditors.

Department of Food and Ag Failed in Oversight Role

The California Department of Food and Agriculture, which oversees the fair districts, “did not perform biannual compliance audits of the association that could have discovered and addressed many of these improper governmental activities,” the report said.
The ag department “takes the findings of the state auditor seriously and work is already underway to address many of the recommendations,” said Steve Lyle, its director of public affairs. That work includes adding internal auditors, boosting legal support and increasing training, he said in a statement.

Discipline of CEO and Employees Recommended

The audit recommends the department take disciplinary action against the district association’s CEO, maintenance supervisor, and other staff who engaged in improper activities and recoup funds from people who misused state resources.
The department must also strengthen oversight of the districts to protect state assets and prevent misuse of resources, auditors said.
(Associated Press contributed to this report.)