Controller Chiang Releases Cudahy Audits
State Controller John Chiang released several audits of the City of Cudahy examining the city’s internal controls and fiscal management practices, as well as its compliance with state laws governing the use of transportation and redevelopment funds.
The Controller found the City’s administration during the period between July 2010 and June 2012 had virtually no internal controls to prevent the misuse of taxpayer dollars. His investigations identified questionable leave pay, violations of the City’s contract code, uncontrolled credit card spending and mismanaged state grant funds. The Controller also reviewed redevelopment asset transfers and ordered $22.7 million in redevelopment assets to be returned to the successor agency.
“These audits found that the city’s prior leaders displayed little regard for fundamental accounting and fiscal management practices necessary to promote transparency and protect taxpayer dollars,” said Chiang. “Very few controls or checks and balances existed to guard against corruption, abuse, and fiscal mismanagement. The few rules that did exist were not followed, and questionable spending was rampant.”
The Controller initiated the internal control audit late last year at the request of the City’s new management, and provided draft copies of the report to the City in February. The City’s response to each finding is included in the published report.