California State Auditor report says state employees mishandled about $2.6 million

California’s State Auditor released a report Thursday outlining eight instances of state departments and employees mishandling funds. 

The instances add up to about $2.6 million in what the department calls waste, inefficiency and improper hiring in state government. 

That includes $1.6 million that the Department of Education collected in 2024 to conduct on-site reviews of nonpublic agencies. The report said it’s legally obligated to conduct the reviews, but failed to do it. It recommended the department conduct the reviews before certifying agencies and again on a 3-year basis. 

The report also showed that the Department of Health Care Services held onto a check from Los Angeles County for almost $875,000 without depositing it for two years. That incident was part of a back and forth that began with the county reporting a missing check from the department. 

The report said a state employee also operated a business for about 20 years teaching people how to get state jobs by lying on their resumes and giving them answers for state exams. He charged clients typically between $500 and $600 for the services. 

The employee had been a manager in several different state agencies over the course of his career. The report said the manager and at least three of his clients held unlawful appointments in state government. 

It recommended that CalTrans, one of the agencies that has employed the manager, “pursue appropriate corrective or disciplinary action” against him. It also suggested that the Department of Human Resources and the State Personnel Board work with relevant agencies to address the unlawful appointments outlined in the report. 

Additionally, the report cited several managers and a supervisor in the Department of General Services participating in unfair hiring practices. Two hired family members, and another two hired acquaintances. In most of those instances, the person hiring gave the person applying for the job information like interview questions ahead of time. 

It also showed a home for veterans that’s run by the state Department of Veterans Affairs ruining $23,500 worth of furniture by storing it outside, in some cases for up to four years.