Controller Cohen releases report on Mendocino County’s financial reporting and internal controls

SACRAMENTO - Today, State Controller Malia M. Cohen released a report of Mendocino County's internal controls over its annual financial reporting process.

The review was required by Government Code section 12464 and was specifically requested by county officials after county financial reports for fiscal year 2020-21 and 2021-22 were delinquent. Section 12464 vests exclusive jurisdiction in the Controller for ensuring timely financial reporting to the Controller as well as authorizes fines for late reporting.

The review confirmed that the county has not met its statutory financial reporting deadlines for the prior two fiscal years. The review disclosed that the county's inability to meet required deadlines was due to challenges resulting from a loss of leadership through retirement and resignation, a loss of key personnel coupled with unusually high staff turnover, and internal control weaknesses also identified in the report.

"It is critically important that Mendocino County take the steps necessary to return to timely reporting to avoid the imposition of fines and to protect its bond ratings against future downgrades. This review provides recommendations that will serve as a roadmap for the county to improve its internal financial reporting controls," said Controller Cohen.

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state's financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation's two largest public pension funds. Follow the Controller on Twitter at @CAControllerand on Facebook at California State Controller's Office.

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