Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

2 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

2 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

3 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

3 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

3 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

3 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

3 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

3 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

3 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

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

DON'T MISS

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

DON'T MISS

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

DON'T MISS

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

DON'T MISS

Musk Announces Forming of ‘America Party’ in Further Break From Trump

DON'T MISS

Death Toll From Texas Floods Reaches 59, Including 21 Children

DON'T MISS

California’s Politics Drifts Right While New York’s Leans Left

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

UP NEXT

Death Toll From Texas Floods Reaches 59, Including 21 Children

UP NEXT

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

UP NEXT

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

UP NEXT

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

San Luis Obispo’s Madre Fire Grows to 35,000 Acres, More Evacuations Ordered

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

UP NEXT

CHP Officer Dies in Line of Duty After Medical Emergency While on Patrol

UP NEXT

Downtown Housing Could Rise in Many California Cities, but Barriers Remain

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

4 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

4 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

4 hours ago

California’s Politics Drifts Right While New York’s Leans Left

4 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

1 day ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

1 day ago

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

2 days ago

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

2 days ago

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

2 days ago

Oil Dips Ahead of Expected OPEC+ Output Increase

2 days ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A suspected DUI driver crashed into a parked California Highway Patrol motorcycle and tow truck along Highway 99 near North Avenue, missing ...

3 hours ago

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
3 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
3 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
3 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
4 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Tesla Chief Executive Officer Elon Musk gets in a Tesla car as he leaves a hotel in Beijing, China May 31, 2023. (Reuters File)
4 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

A search dog operates at Camp Mystic after deadly flooding in Kerr County, Texas, U.S., July 5, 2025. (Reuters/Sergio Flores)
4 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

2024 Democratic National Convention
4 hours ago

California’s Politics Drifts Right While New York’s Leans Left

Solar Farm in Riesel, Texas
1 day ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

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

Search

Send this to a friend