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Audit of State's Hidden Surplus Money Due Next Week

Jul 27, 2012

We should learn next week whether there’s any more hidden surplus money in California state special funds. The state's Finance Department plans to release its audit of those accounts after $54 million dollars in surplus money was found in two parks funds.

Published reports suggest that special funds in other departments could be off as much as $2.3 billion. H.D. Palmer with the state’s finance department says those reports are inaccurate and incomplete. He says almost 500 million dollars of that is the result of differences in accounting methods used by the controller’s office and the finance department. He believes their audit will prove that.

“Can we say with certainty today that we are not going to find an anomaly like we found last week with the two parks funds, absolutely not, but that’s exactly why Governor Brown directed us to look at each and every one of these funds.”

But Republican Jim Nielsen, Vice Chair of the Assembly Budget Committee, says whatever the problem, it needs to be fixed.

“Something is very very wrong period, and it’s been wrong for a long time and it cannot be tolerated anymore.”

Nielsen and other lawmakers have called for hearings into the financial problems beginning in August.