(COURTHOUSE NEWS) – A California agency loosely doled out pandemic relief and the state could be forced to return millions of misused funds to the federal government, according to an audit released Thursday.
Overseeing federal aid available to cash-strapped local governments, a new report claims a state agency mismanaged a nearly $60 million stipend by dishing out funds to the California Department of Corrections and Rehabilitation (CDCR) without justification. Auditors say the questionable awards came at the expense of counties and cities that were buckling financially under the weight of the pandemic.
“The Board of State and Community Corrections failed to require CDCR to justify the need for the additional funds or gain assurance that CDCR was effectively or fully spending its initial allocation,” the audit states. “As a result of this failure, community corrections risks one or more actions related to the funds, including the possibility that it may have to return unspent or misused funds to the federal government.”
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