CA Controller Finds Lack of Finance Authority Oversight by Association of Bay Area Governments
SACRAMENTO—State Controller Betty T. Yee today announced the results of her team’s review of the Association of Bay Area Governments (ABAG), finding that a lack of internal controls in administration of an affiliated financing authority provided opportunities for potential misuse of funds.
Who is Association of Bay Area Governments ABAG and why do we care? ABAG deals with land use, housing, environmental quality, and economic development and is consulted and referenced extensively in Bay Area Sunnyvale California Environmental Quality Act CEQA Environmental Impact Reports EIR.
Initiated in February, the Controller’s review followed up on allegations that the director of the ABAG Finance Authority for Nonprofit Corporations (Authority), a joint powers agency charged with issuing debt for projects in member jurisdictions, had embezzled about $1.3 million in an elaborate scheme.
“Crucial internal control standards were not adequately followed at ABAG in its oversight of the Authority,” said Controller Yee, the state’s chief fiscal officer. “Local governments must protect public money by ensuring that those who authorize spending are not the same people who write the checks.” Continue reading