Oops--California Audit Finds Tons of “Lost” Cash

Townhall.com ^ | August 5, 2012 | Ann-Marie Murrell

[Kaslin]

Last May, Governor Jerry Brown threatened to close 70 state parks in order to help balance the budget and plug the holes of the sinking ship that is California. 

 

Immediately, park-loving activists went to work and through bake sales and donations, the public helped save 69 of the 70 parks.

But then, oops---California auditors recently looked under their government couch cushions and located over $286 million in “misplaced” funds.

From the L.A. Times (emphasis added):  “Gov. Jerry Brown's administration on Friday announced that $119 million more in untapped money was found in a sweeping audit of state accounts, bringing to more than $286.5 million the sum lawmakers were unaware of as they repeatedly cut government services…The additional money that lawmakers were unaware of includes funds for healthcare programs, reimbursement of crime victims and cleanup of underground petroleum tanks.”

“Unaware of”??  Even if I won the lottery and became a gazillionaire, I can’t imagine not being aware of $286.5 million. 

A Mercury News review found at least 17 accounts that “appeared to have significantly more serve cash than what individual departments reported to the finance department.” 

This sudden bounty of cash is causing a few more headaches for Brown. 

For one, the activists, local governments and non-profits that collected money to save the state parks are now asking for refunds.

"There was a sense of betrayal," said Carolyn Schoff, head of the California League of Parks Associations, an alliance of nonprofits. "We're the ones in the trenches raising funds for state parks, and now there's a dark shadow over us."

Another problem is the obvious—how in the world can one state “misplace” so much money?  Lots of finger wagging is happening, with each department scrambling to place blame elsewhere.

One of the largest discrepancies occurred within the Public Utilities Commission, which regulates telecommunications and energy services.

A spokeswoman for the commission said the accounting discrepancies are probably only "recording errors."

Sigh.

Democrat lawmakers are saying the audit “would not have changed how the state pieced together its budget this year”—yet these same lawmakers have used the funds to pay bills and according to the Times, the Legislature now owes them $4.3 billion (with a ‘b’), “a nearly sixfold increase since 2008.” 

These major monetary discrepancies perfectly explain why Republicans are constantly screaming and shouting about “big government”.  Any state that is so out of control that it can misplace enormous amounts of money—making politicians and Union fat cats richer and richer while her cities are filing bankruptcy--needs a major dose of checks and balances.

The good news in all of this is that perhaps these mishaps will result in some job openings to help boost California’s rising unemployment rate.  I suggest they start by hiring a few good accountants--and maybe an Oversight Committee or two. 

On a personal note--because I live here in La La Land-- I remain ever hopeful that the good citizens of California will finally see the light and will stop voting for the same old Democrats who seem intent on running this beautiful state further into the abyss.

[Lancey Howard]

Great... Another gimmick to use at budget time.
Now the scum can add a line: “cash unaware of” and put in any number they want.

[NorthernTraveler]

One of the funds that they ‘found’ money in is the Off Highway Vehicle Fund... this is money collected from off-road users of motorcycles, ATV, and probably 4x4’s to acquire land for their usage, develop riding areas and repair damage, etc.

This money can only be used for those purposes... this is mandated in the law.

Note that the Parks Department has failed to use this money for it’s required usage and has instead allowed it to pile up in the bank.

Now that Sacramento has ‘found’ it note the pressure to take it and use it for other purposes - never mind what the law says it MUST be used for.

Considering how leftist green the Parks Department probably is, this may have been their agenda all along... they don’t like the dirt bikes/ATVs/4x4’s so they tax them to provide them riding opportunities and then fail to provide them.

So this is a cautionary tale... just because the government sets up a ‘closed’ fund that collects money for some purpose DOESN’T mean the money will be used for that purpose.

Think Social Security, gas taxes, cigarette taxes, etc.

[Sarajevo]

Immediately, park-loving activists went to work and through bake sales and donations, the public helped save 69 of the 70 parks.

OK, let me get this right - the state screws up, and taxpayers need to set the screwup straight by donating even more of their own time and energy to clean up the state government's mess? Does this seem more than a little odd to anyone else?

[Wuli]

Dysfunctional junctions of programs involving more than one level of the state government, and/or more than one level of government (state to county to local) are rampant in California.

As the state has involved itself in more and more local matters, and as it has made more and more mandates on localities, and established its own local state entities among the localities, and designed programs that may involve all of the above at once - “where’s the money” can be like a “Rube Goldberg” puzzle.

[ThunderSleeps]

Let me take a wild guess here... The powers that be CA now want to be able to spend this “found” cash on other pet projects, not the parks etc. it was originally budgeted and allocated for...

[blueunicorn6]

What if.....the Democrats needed lots of money for the 2008 campaign and took it out of state funds in California? Now it’s being paid back, probably by drug dealers. How would you explain it? Remember the Democrat campaign fund manager who went to prison because of all that “lost” Democrat campaign money? And California elects every liberal on the ballot, but votes down legalizing marijuana? Drug money owns the California Democrat party.

[bikerman]

$286 million in “misplaced” funds.

Wraped up in plastic and stored in the freezer? that kind of “misplaced” funds??

[JoanneSD]

California needs to fire the whole bunch of accountants, my grand daughter was drawing unemployment up until a few month ago..the company she worked for left this thieving state, and this week she got a notice from the great state that thy had over paid her to the tune of $1350.00 in one letter they sent and then the next letter they revised it and said she owed $650.00 dollars more, and all kinds of wrath will come down on her if this is not repaid.. apparently the state employees cannot read the chart that says how much you are to be paid, it is simpler than a bus schedule, they have no data entry skills, and cannot figure out how may weeks one is eligible to be on it..but they make the error and you must pay them back...of course work is very hard to find in california, so this bill will be sent to collection as they bullied and said in two separate letters .. ruining her attempt to establish some credit

[Triple]

Municipal accounting rules are very different from corporate accounting. Until the rules for municipal accounting change there will continue to be lost pockets of money. These funds are ripe for misuse/theft/graft...