Audit slams CPUC's poor bookkeeping

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A recent audit puts the heat on the California Public Utilities Commission (CPUC) finances, finding variances of $189 million in reported revenue and $212 million in expenditures over the past seven budget cycles.

The California Department of Finance audit was released late last week after July 2012 budget discrepancies prompted a statewide investigation of more than 500 special funds. Variances of more than $1 million were found in 50 percent of CPUC's 14 administered special funds as of June 2011.

The audit noted that, "significant weaknesses exist within CPUC's budget operations which compromise its ability to prepare and present reliable and accurate budget information."

Identified weakness included: ineffective organizational structure, poor communication and coordination, inadequate staff training and outdated job descriptions. The audit recommended several fixes, such as boosting staff, clearly defining roles, and developing better processes and procedures.

The CPUC has 90 days to implement a corrective action plan.

For more:
- see the DoF audit

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