Board of Equalization to face outside audit

Allegations of misspending preface Board of Equalization (BOE) audit.  After the Sacramento Bee’s reporting of an office remodel of a BOE member, the century old periodical now reports the agency has been under an audit with the CA Department of General Services since July of this year.  The BOE oversees about $60 billion in taxes and fees with an elected board and field offices all over the state.

Related:  California tax official got $130,000 worth of office furniture

From the Sacramento Bee:

A state tax board that in the past two years misdirected millions of dollars in revenue and approved an expensive office remodel for one of its elected members is under the microscope of a new audit.

California’s Department of General Services launched an audit of the Board of Equalization in July, three months after The Bee reported that the tax board spent $130,000 on a plush office remodeling for Board member Jerome Horton.

Since then, the board has adopted tighter spending controls and promoted a new executive director in longtime BOE employee David Gau.

Gau did not request the outside audit. Spokesmen for both the BOE and Department of General Services characterized it as a routine procedure.

“It was just BOE’s turn,” said Michael Liang, a spokesman for the Department of General Services.

State Controller Betty Yee, a member of the board, last year drew attention to mismanagement at the agency with an audit that prompted a $343 million reallocation of revenue to funds that had been shortchanged.

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