Randall Jensen, writing today in Bond Buyer, reports on an audit released in June "that received little media attention" -- an audit conducted by the State Dept. of Finance between April 2010 and January 2011 that focussed on [emphasis ours]
$7 billion of [Proposition 1D] bond money handed out through the state [Office of Public School Construction]...[The audit] found that billions of dollars of bond proceeds spent on projects considered to have a high risk of misuse of funds went unchecked...
....The facilities program provides funds for building and upgrading K-12 schools. The State Allocation Board hands out the bond money through the the school construction program.
“Although OPSC has established accountability processes and controls for Proposition 1D bond funds, a number of these controls are either not implemented or not working as intended,” the audit report said. “These issues, if left unresolved, will continue to adversely affect bond accountability.”
...According to the report, the Office of Public School Construction only audited 6% of 744 construction projects that had a high risk of misuse over roughly a one-year period, leaving $4 billion of costs unaudited, according to the audit report that was released in June but has received little media attention.