- Associated Press - Wednesday, June 3, 2015

SACRAMENTO, Calif. (AP) - The California controller’s office has found that a Bay Area government group lacked sufficient internal controls, providing opportunities for misuse of funds.

Auditors with the office of State Controller Betty T. Yee launched a review of the Association of Bay Area Governments in February, following allegations that its former financial services director had embezzled $1.3 million.

The review found that the director was authorized to release money and record transactions, which is inconsistent with practices calling for separate people to authorize spending and process related paperwork. The association said it has launched an independent review and will develop a remedial plan.

The association is the regional planning agency for the nine-county Bay Area. A spokeswoman declined immediate comment.

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This story has been corrected to reflect Betty T. Yee’s title.

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