Eight Republican Assembly members have given California State Controller Malia Cohen 14 days to produce records showing how her office audited state spending before taxpayer dollars were paid out. In a September 14 letter, the lawmakers asked for the volume of claims California paid in fiscal years 2023–24 through 2025–26, how many received field or detailed audits, and the Controller’s audit records for high‑risk or high‑dollar programs.
What the letter demands
According to the letter, signed by Assembly Republican Leader Alexandra Macedo and Assembly members Carl DeMaio, Stan Ellis, Tri Ta, Kate Sanchez, David Tangipa, Natasha Johnson, and Leticia Castillo, the group wants:
- The number of claims California paid in FY 2023–24 through 2025–26, and how many received field or detailed audits.
- Controller audit records involving the Employment Development Department (EDD), Department of Motor Vehicles (DMV), homelessness programs, Medi‑Cal payments, and nonprofit recipients of state funds.
- Clarification on whether the Controller allows an agency, vendor, or grantee’s attestation to substitute for additional Controller review.
Assemblyman Carl DeMaio summarized the demand as: “WHERE ARE THE AUDITS?” Republican Controller candidate Herb Morgan added: “Follow the money. Verify the payment. Make the receipts public.” (Both quotations attributed to the letter’s public rollout as described in the source material.)
What the Controller’s public page shows
The State Controller’s Office publishes audit reports on its website, listing dozens of audits across payroll, state agencies, and grant programs. The lawmakers’ request focuses on what the Controller’s Office itself reviewed on major, high‑spend areas—and what issues, if any, it identified.
On the Controller’s State Agency Audits page, the most recent High‑Speed Rail‑specific audit listed is from March 2020 and focuses on travel reimbursements. The current public list shows the latest DMV‑specific audit as an accounts‑receivable audit from June 2020, which predates Cohen’s tenure. The source material also notes that Cohen said her office did not audit EDD or DMV during her tenure for reasons described below.
Why the pressure: big costs and unresolved losses
Capitol Annex: A 2018 proposal estimated replacing the Capitol Annex, relocating parking, and building a visitor center at approximately $543 million. The project’s current allocation is $1.1 billion. As of July 2026, the Legislature reports $668 million already spent, with completion expected in fall 2027. Project officials have pointed to nearly four years of litigation, pandemic‑era construction inflation and supply‑chain disruptions, delays, and additional security requirements following January 6 as contributors to the increase. These figures are drawn from the project’s public materials cited in the source.
High‑Speed Rail: The 2008 plan put the San Francisco–to–Los Angeles/Anaheim backbone at roughly $33 billion. The California High‑Speed Rail Authority’s 2026 Business Plan estimates the complete Phase 1 system at $126.08 billion. The figures are expressed in different‑year dollars and are not a perfect inflation‑adjusted comparison. The Authority reports $15.041 billion in capital expenditures through February 2026. The California State Auditor previously concluded that flawed decision‑making and poor contract management at the Authority contributed to cost overruns and delays.
EDD: During the pandemic, EDD said approximately $20 billion in unemployment benefits were likely fraudulent. EDD later developed estimates reaching $55 billion in ineligible payments—a broader category than fraud—but the California State Auditor found that estimate unreliable because EDD could not adequately substantiate it. The State Auditor continues to classify EDD as a high‑risk agency, reporting approximately $1.5 billion in estimated improper payments during 2023 and 2024 and estimating more than $500 million in fraudulent payments in 2024.
What Cohen said about EDD and DMV
While running for Controller in 2022, Cohen told CalMatters she intended to scrutinize EDD, DMV, and California’s homelessness programs. In 2026, Cohen told the Los Angeles Times her office had not audited EDD because the Legislature was already reviewing it, and had not audited DMV because the Legislature and State Auditor were doing reviews.
The open questions
The lawmakers’ letter does not dispute that audits exist across state government. It asks a narrower question: what did the State Controller’s Office itself review before payments went out, what problems did it find, what payments did it question, and where are those records? With a 14‑day response window, the letter seeks a specific accounting for programs including EDD, DMV, Medi‑Cal, homelessness initiatives, and nonprofit grantees.
