Posted on 12/21/2005 12:29:23 PM PST by NormsRevenge
SACRAMENTO (AP) - More than $3.8 million in federal election money was spent improperly or without required documentation by former Secretary of State Kevin Shelley, federal auditors said in a report released Wednesday.
The audit, commissioned by the U.S. Election Assistance Commission, confirms an earlier state audit of Shelley's handling of money given to California under the Help America Vote Act. It examined spending through 2004.
Auditors said about $3 million in spending lacked documentation, such as paying salaries for people who didn't submit time sheets, or was improperly awarded to consultants through no-bid contracts.
The audit, conducted by the Department of the Interior's inspector general, also found another $777,502 was improperly spent on salaries, promotional memorabilia and other items that were unrelated to the Help America Vote Act.
Congress passed the act in 2002 after problems with voting machines and access to polls that surfaced during the 2000 presidential election. California has received about $180 million in federal money to upgrade voting equipment and procedures. Federal authorities froze another $170 million after questions about Shelley's spending arose. That money was released in June.
Shelley, a Democrat, denied any wrongdoing but resigned under fire in February after he was accused of mishandling the money, bending state hiring rules to reward political allies and accepting questionable campaign contributions.
Shelley's successor, Republican Bruce McPherson, agreed with some of the audit's findings, but disputed the auditor's claim that about $2 million in no-bid consulting contracts were inappropriate.
Those contracts were cleared for no-bid awards by the state Department of General Services because of a tight deadline to bring California into compliance with the federal law, McPherson said in his response to the audit.
In addition, the office was facing unprecedented pressure from the combination of three elections - the first-ever recall election for a California governor in 2003, followed in 2004 by a presidential primary and a presidential general election, McPherson said.
The federal audit confirms the findings of the California Bureau of State Audits, which also suggested 17 changes in how the secretary of state's office implements the Help America Vote Act.
McPherson told auditors his office has complied with most of the recommendations and is working to implement the rest.
In the campaign finance probe surrounding Shelley, San Francisco real estate agent Julie Lee is facing eight felony charges that she laundered a state grant for a community center into Shelley's 2002 campaign. Lee has pleaded not guilty.
A spokesman for Shelley had no immediate comment on the audit.
Prison ?????
paragraph 6. A Republican would have seen his party in the headline.
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