August 24, 2023
The California State Auditor's Updated Assessment of Issues and Agencies That Pose a High Risk to the State.
http://bsa.ca.gov/reports/2023-601/index.html
State High-Risk Audit Program
The California State Auditor’s Updated Assessment of Issues and Agencies That Pose a High Risk to the State
August 24, 20232023-601
The Governor of California
President pro Tempore of the Senate
Speaker of the Assembly
State Capitol
Sacramento, California 95814
Dear Governor and Legislative Leaders:
As required by Government Code section 8546.5, my office presents this report about statewide issues and state agencies that represent a high risk to the State or its residents. Our work to identify and address such high-risk statewide issues and agencies aims to enhance efficiency and effectiveness by focusing the State’s resources on improving the delivery of services related to important programs or functions.
We describe in this report four high-risk statewide issues that include aspects of state management of COVID-19 federal funds, state management of financial reporting and accountability, information security, and water infrastructure. We also conclude that three state agencies meet our criteria to be designated as high-risk: the Employment Development Department, the California Department of Technology, and the Department of Health Care Services. Finally, we have removed from our state high-risk list higher education, the California State Teachers’ Retirement System, other postemployment benefits, the California Department of Public Health, transportation infrastructure, and the California Department of Corrections and Rehabilitation. We have based these decisions on factors including changes in circumstances and the significant progress that the State has made toward mitigating various risk factors.
We will continue to monitor the risks we have identified in this report and the actions the State takes to address them. When the State’s actions result in significant progress toward resolving or mitigating such risks, we will remove the high-risk designation based on our professional judgment.
Respectfully submitted,
GRANT PARKS
California State Auditor
Selected Abbreviations Used in This Report
| ACFR | Annual Comprehensive Financial Report |
| CalPERS | California Public Employees’ Retirement System |
| CalSTRS | California State Teachers’ Retirement System |
| CCC | California Community Colleges |
| CDCR | California Department of Corrections and Rehabilitation |
| CDT | California Department of Technology |
| CSU | California State University |
| DHCS | Department of Health Care Services |
| DOL | Department of Labor |
| EDD | Employment Development Department |
| IT | information technology |
| MHSA | Mental Health Services Act |
| OIG | Office of the Inspector General |
| OPEB | other postemployment benefits |
| PAL | Project Approval Lifecycle |
| UC | University of California |
| UI | Unemployment insurance |
