Please ensure Javascript is enabled for purposes of website accessibility

Tensions Between Some Tahoe Residents and Wildlife Workers Become Unbearable

17 hours ago

California Republican Leader Calls for ‘Two State Solution’ Amid Redistricting Fight

17 hours ago

Three Dead in Minneapolis Shooting, Including Shooter, Justice Department Official Says

18 hours ago

Israeli Tanks Close in on Gaza City, Trump to Chair Meeting

19 hours ago

Trump Says Soros and His Son Should Be Charged With RICO

20 hours ago

Wall Street Opens Muted in Countdown to Nvidia Earnings

20 hours ago

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

2 days ago

Poll: Katie Porter Holds Early Edge in California Governor’s Race

2 days ago

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

2 days ago

California Farming Couple Seeks $300 Million for Aspen Estate

2 days ago
'High Risk' of Waste, Fraud in California COVID Spending, Auditor Warns.
gvw_ap_news
By Associated Press
Published 5 years ago on
August 25, 2020

Share

SACRAMENTO — California is getting so much money from the federal government because of the coronavirus — more than $71 billion — that the state’s auditor on Tuesday warned Gov. Gavin Newsom’s administration it is at high risk of waste, fraud and abuse.

In a letter to Newsom and legislative leaders, Elaine Howle said she was invoking a state law giving her authority to keep a close watch on 18 government agencies in charge of overseeing the spending.

“The swift appropriation of federal COVID-19 funds, along with the prior audit findings, raise the possibility that responsible state agencies do not have adequate processes in place to address these risks,” Howle wrote.

Howle’s office identified more than $71 billion in federal coronavirus aid that the state has either received or is expected to receive to operate 35 federal programs. More than half of that money. or $40 billion, is how much the state expects to borrow from the federal government to help pay unemployment benefits for millions of people who have lost their jobs because of the pandemic.

More than $10 billion is for the state’s Medicaid program, the low-income health insurance service that has seen its enrollment grow during the pandemic. The rest is divided up among a myriad of programs, including education, public health and housing.

History of Past Money Management Problems

California has had trouble managing federal money in the past. Howle noted nine programs that have received or are expected to receive coronavirus funding were recently audited, and six of them had issues with how they manage federal money, including the Department of Education and the Department of Social Services.

“These past audit findings highlight issues with departments’ abilities to manage federal funds appropriately even before the significant influx of federal COVID-19 funding,” Howle wrote.

The Department of Finance, which has received $9.5 billion in federal coronavirus aid and oversees spending at most state agencies, told Howle the extra monitoring is unnecessary. The agency noted its Office of State Audits and Evaluations has been helping state agencies and departments, including local governments, on how to use and track the federal money.

The agency has already assisted the six state programs that were cited in recent audits, Department of Finance spokesman H.D. Palmer said. Since April, the agency has been gathering spending data on a weekly basis from state departments.

“Since the onset of this pandemic, Finance has made oversight and transparency a priority in reporting how these funds are spent, which is why we’ve established processes to safeguard the expenditure of these funds and comply with all of the related federal requirements,” Palmer said.

Howle wrote that she appreciates the agency’s perspective, but she said a “substantial risk” still exists.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Israeli Official Accused of Nevada Sex Crime Ordered to Appear in Court via Zoom

DON'T MISS

Think You Can’t Afford College? Go Online and Get a CalKIDS Scholarship

DON'T MISS

US CDC Director Ousted Weeks Into Job

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Mario Garcia

DON'T MISS

Shooter Kills Two Minneapolis Schoolchildren in Church, Injures 17

DON'T MISS

Did Fresno Restaurateur Bobby Salazar Commit Arson? Feds Lay Out Their Case

DON'T MISS

Hanford Police Arrest Two Teens After Shootouts Leave 17-Year-Old Wounded

DON'T MISS

US CDC Director Being Ousted Weeks Into Job, Washington Post Reports

DON'T MISS

Israeli Foreign Minister Saar Says There Will Not Be a Palestinian State

DON'T MISS

All UN Security Council Members, Except US, Say Famine in Gaza Is ‘Man-Made Crisis’

UP NEXT

Second-Highest Unemployment Rate Still In California

UP NEXT

Commercial Vehicle Fire Closes Southbound I-5 Near Grapevine

UP NEXT

Tensions Between Some Tahoe Residents and Wildlife Workers Become Unbearable

UP NEXT

California’s Environmental Agency Investigated by US Justice Department

UP NEXT

California Republican Leader Calls for ‘Two State Solution’ Amid Redistricting Fight

UP NEXT

Meta to Launch California Super PAC Backing Pro-AI Candidates

UP NEXT

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

UP NEXT

California High-Speed Rail Project Hit With New $175 Million Cut

UP NEXT

Poll: Katie Porter Holds Early Edge in California Governor’s Race

UP NEXT

ICE Is Suddenly Showing Up in CA Hospitals. Workers Want More Guidance on What to Do

Valley Crime Stoppers’ Most Wanted Person of the Day: Mario Garcia

12 hours ago

Shooter Kills Two Minneapolis Schoolchildren in Church, Injures 17

12 hours ago

Did Fresno Restaurateur Bobby Salazar Commit Arson? Feds Lay Out Their Case

12 hours ago

Hanford Police Arrest Two Teens After Shootouts Leave 17-Year-Old Wounded

12 hours ago

US CDC Director Being Ousted Weeks Into Job, Washington Post Reports

13 hours ago

Israeli Foreign Minister Saar Says There Will Not Be a Palestinian State

13 hours ago

All UN Security Council Members, Except US, Say Famine in Gaza Is ‘Man-Made Crisis’

13 hours ago

Trump’s Tax Bill Expands 0% Capital Gains Eligibility in 2025

14 hours ago

Second-Highest Unemployment Rate Still In California

14 hours ago

Trump Holds Gaza Policy Meeting With Blair and Kushner, White House Official Says

14 hours ago

Israeli Official Accused of Nevada Sex Crime Ordered to Appear in Court via Zoom

An Israeli official accused of trying to meet a 15-year-old girl for sex outside Las Vegas has been ordered to appear via videolink next wee...

11 hours ago

The flag of the U.S. state Nevada is seen in this illustration taken, August 21, 2024. (Reuters/Dado Ruvic/Illustration)
11 hours ago

Israeli Official Accused of Nevada Sex Crime Ordered to Appear in Court via Zoom

12 hours ago

Think You Can’t Afford College? Go Online and Get a CalKIDS Scholarship

Susan Monarez, U.S. President Donald Trump's nominee to be director of the Centers for Disease Control and Prevention, testifies before a Senate Health, Education, Labor, and Pensions Committee confirmation hearing on Capitol Hill in Washington, D.C., U.S., June 25, 2025. (Reuters File)
12 hours ago

US CDC Director Ousted Weeks Into Job

Mario Garcia is Valley Crime Stoppers' Most Wanted Person of the Day for August 27, 2025. (Valley Crimes Stoppers)
12 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Mario Garcia

Law enforcement use K-9 dogs to search a nearby neighborhood, after a shooting at Annunciation Church, which is also home to an elementary school, in Minneapolis, Minnesota, U.S. August 27, 2025. REUTERS/Tim Evans
12 hours ago

Shooter Kills Two Minneapolis Schoolchildren in Church, Injures 17

Bobby Salazar motorcycle gang fire restaurant Blackstone fresno insurance fraud
12 hours ago

Did Fresno Restaurateur Bobby Salazar Commit Arson? Feds Lay Out Their Case

A 17-year-old boy was shot and wounded in Hanford, and police arrested two juvenile suspects in connection with the shootings. (Hanford PD)
12 hours ago

Hanford Police Arrest Two Teens After Shootouts Leave 17-Year-Old Wounded

Susan Monarez, U.S. President Donald Trump's nominee to be director of the Centers for Disease Control and Prevention, testifies before a Senate Health, Education, Labor, and Pensions Committee confirmation hearing on Capitol Hill in Washington, D.C., U.S., June 25, 2025. (Reuters File)
13 hours ago

US CDC Director Being Ousted Weeks Into Job, Washington Post Reports

Search

Help continue the work that gets you the news that matters most.

Send this to a friend