The California State Controller’s Office has begun an audit of the City of Stockton’s internal financial controls to determine whether they are strong enough to prevent mismanagement, waste, or fraud. The review will focus on the period between July 2023 and December 2025, though investigators could expand the scope depending on what they find.
The audit was requested by Vice Mayor Jason Lee, who chairs the City Council’s Audit Committee. Lee compared the city’s financial oversight to “a bank with the back door left open and no one watching it.” He cited concerns including spending decisions made without City Council approval, unapproved budget changes, questionable hiring practices, payroll errors, and weaknesses in the city’s procurement and contracting oversight.
The audit process is expected to take about eight to twelve weeks to complete.
In addition to requesting the audit, the Stockton City Council voted unanimously in November to refer allegations of potential financial misconduct by city officials and staff to the California Attorney General, the San Joaquin County District Attorney, and the San Joaquin County Civil Grand Jury for review.
Read more at Stocktonia.