CA Auditor Warns 18 State Agencies ‘High Risk’ for Waste, Fraud, Abuse of Federal COVID Funds
California’s non-partisan State Auditor, Elaine Howle, warned Governor Gavin Newsom this week that she has very serious concerns about 18 state agencies responsible for doling out $17 billion in federal COVID-19 relief funds.
These 18 departments have officially been added to the State Auditor’s “high risk” watch list for potential waste, fraud or abuse. The Auditor says the “potential mismanagement of funds could leave individuals without medical care, or money to pay for food or housing.”
Gov. Gavin Newsom’s Finance department responded practically telling the Auditor to “pound sand,” saying it believes that the State’s management of federal COVID‑19 funds does not meet the regulatory criteria, nor does adding the issue to the high risk list serve the purpose of the state high‑risk program.