Press Releases

SACRAMENTO – State Controller Betty T. Yee announced today that her staff will audit the Association of Bay Area Governments (ABAG) internal administrative and accounting controls following theft allegations.

“As California’s chief fiscal officer, I am charged with protecting state resources,” Controller Yee said. “When public money goes missing, I need to determine how it happened and whether effective controls are in place.”

The State Controller’s audit will initially focus on Fiscal Years 2012-13 and 2013-2014. If state investigators discover accounting weaknesses that may have affected earlier years, the audit may be expanded. The Controller’s Office sent a letter today to ABAG asking that the association make available documents that will be used in the audit including ledgers, contracts, invoices, personnel records, meeting minutes, policies and procedures.

The audit work will begin February 20 and is expected to take a few weeks.

ABAG officials have publicly alleged the former director of financial services at its Finance Authority for Nonprofit Corporations embezzled about $1.3 million in a sophisticated scheme involving illegitimate documents, false identities and deception of the finance authority’s board and bank trustees.

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