‘FISCAL MESS’: What California Audits Show as Trump Administration Probes Potential Fraud |
Recent California audits show several state departments are struggling with internal controls in distributing taxpayer-funded grants, as federal authorities are probing potential fraud.
A 544-page report, released late last month, shows that independent auditors flagged 10 different federally funded programs in the state that failed to follow rules for how federal grant money is spent, noted the fiscal watchdog group Truth in Accounting.
The California independent audit shows the state lacked procedures to ensure child care providers receiving federal subsidies were meeting basic federal health and safety requirements, such as CPR certification, disease prevention protocols, emergency preparedness, and pediatric care.
“The [California Department of Social Services] has not established health and safety monitoring procedures to ensure licensed-exempt providers serving children who receive subsidies comply with all applicable health and safety requirements,” the state audit says. It added that “no monitoring procedures were performed.”
A spokesperson from the California Department of Social Services did not respond to phone and email inquiries from The Daily Signal for this story.
Federal regulations require independent audits for state and local government entities receiving federal funding. Such audits are made available to Congress and federal agencies.
Independent audits should be the starting point for fraud........