A recent investigation by the California state auditor’s office has revealed multiple violations involving telework policies and salary overpayments within the State Controller’s Office. The inquiry, prompted by a whistleblower complaint, identified two employees who worked remotely from out of state—specifically Idaho, Tennessee, and Alabama—without authorization, breaching state regulations requiring employees to reside and perform their duties within California or its reasonable commutes.

One employee reportedly worked remotely from Idaho nearly every day for approximately five years, using the address of a family member in California. The other logged in from both Alabama and Tennessee over several months. Despite the state's 2022 telework policy explicitly prohibiting work from outside California, these employees remained undetected for years. Both staff members have since left the Controller’s Office; however, it remains unclear if their departures resulted from disciplinary measures.

In addition to unauthorized telework, the investigation uncovered two employees who received a combined $33,000 in salary overpayments. Efforts to recover these funds were delayed, with the Controller’s Office taking over a year to begin reclaiming the amounts. One employee agreed to a repayment plan, while the other’s case remains unresolved. Officials debated the possibility of filing a claim against the state, contending that the overpayments may not have been the employees’ fault. A spokesperson for the Controller’s Office stated that recommendations from the audit have been implemented and noted that employees’ nondisclosure of their actual work locations hindered earlier detection.

The findings have drawn criticism from political figures, including Herb Morgan, a Republican candidate for state controller, who described the situation as a misuse of public funds rather than mere oversight. The report highlights systemic weaknesses in oversight and enforcement of telework policies across state agencies, prompting calls for clarifying telework obligations and stricter compliance measures.

Separately, the investigation also reported misconduct by a senior law enforcement official who improperly accessed confidential databases to obtain personal information about family members, employees, and local officials without legitimate business reasons. The searches included information on deputies, a county supervisor, and others in law enforcement. The officer claimed that some searches were out of personal curiosity, while others were purportedly part of threat assessments, though no documentation of such assessments was found. Agency leadership disciplined the official, and the case was referred to the local district attorney, who opted not to file charges.

Overall, the audit detailed nine cases across multiple state agencies, noting that these examples are representative and intended to serve as deterrents to misuse of resources and violations of policies. The state auditor’s office emphasized the need for improved management and monitoring of telework arrangements and employee conduct to prevent future violations.