Every year the California State Auditor releases a report on activities by state employees and agencies that is improper. This year’s report features items from five different departments.The largest amount of state funding the auditor found spent improperly was $4.6 million by the Employment Development Department (EDD) for unused cell phones and wireless hotspot devices. The auditor found that the department had more than 6,200 mobile devices that hadn’t been used for anywhere from six months to upwards of two years from November of 2020 through April of 2025. EDD was responsible for providing benefits and services to people who lost their jobs during the COVID-19 pandemic. By Dec. 2020, the department had issued more than 7,224 mobile devices for its Unemployment Insurance Branch to use while working remotely during the Gov. Newsom’s stay-at-home order. The order was lifted in February of 2023, but EDD was still paying monthly service fees for 5,097 of those devices by April of 2025, according to the audit. Nearly 500 of them were still being paid for service while not used for four years.Starting in April, the EDD established a process where they review non-usage reports by the phone carriers and terminate inactive lines. They put it into effect in September.The California Air Resources Board (CARB) was found to have paid a worker leave for which they did not have time. It consistently paid one worker $171,446 for nearly fifteen months, even though that employee was no longer working. CARB is in the process of collecting the overpayment from the employee and is correcting the leave usage pending retirement policy.Other issues found included a manager at the Department of Alcoholic Beverage Control misused state vehicles for personal use and two employees at the Department of Parks and Recreation who altered receipts to support purchases they made with a state purchasing card.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

Every year the California State Auditor releases a report on activities by state employees and agencies that is improper. This year’s report features items from five different departments.

The largest amount of state funding the auditor found spent improperly was $4.6 million by the Employment Development Department (EDD) for unused cell phones and wireless hotspot devices.

The auditor found that the department had more than 6,200 mobile devices that hadn’t been used for anywhere from six months to upwards of two years from November of 2020 through April of 2025.

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EDD was responsible for providing benefits and services to people who lost their jobs during the COVID-19 pandemic.

By Dec. 2020, the department had issued more than 7,224 mobile devices for its Unemployment Insurance Branch to use while working remotely during the Gov. Newsom’s stay-at-home order. The order was lifted in February of 2023, but EDD was still paying monthly service fees for 5,097 of those devices by April of 2025, according to the audit.

Nearly 500 of them were still being paid for service while not used for four years.

Starting in April, the EDD established a process where they review non-usage reports by the phone carriers and terminate inactive lines. They put it into effect in September.

The California Air Resources Board (CARB) was found to have paid a worker leave for which they did not have time. It consistently paid one worker $171,446 for nearly fifteen months, even though that employee was no longer working. CARB is in the process of collecting the overpayment from the employee and is correcting the leave usage pending retirement policy.

Other issues found included a manager at the Department of Alcoholic Beverage Control misused state vehicles for personal use and two employees at the Department of Parks and Recreation who altered receipts to support purchases they made with a state purchasing card.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel