Calif. auditor paints damaging picture of official's use of funds

SACRAMENTO - Californian Secretary of State Kevin Shelley bent rules, missed deadlines and failed to do proper paperwork as he spent millions of dollars in federal election money, state Auditor Elaine Howle told a legislative committee conducting its first hearing Monday to investigate the embattled state elections official.

Howle meticulously told the Joint Legislative Audit Committee that Shelley's management failures, which also included the questionable use of federal money, added up to "disregard for proper controls and poor oversight" of money given California to modernize its voting systems.

But a representative of Shelley's office testified under oath that much of the audit represented "old news," and that the elections agency had committed itself to renewed compliance with rules and making California "a national model" in spending federal money.

Tony Miller, special counsel to Shelley, said the office has hired MGT of America, a Florida-based management and consulting firm to continue tightening its policies, devise new internal controls and develop a detailed new implementation plan.

"Indeed, we are going to dot every I and cross every T," Miller claimed, saying he accepted responsibility for many of the issues raised by Howle.

But Sen. Tom McClintock, R-Northridge, challenged Miller's promises "to get it back on track," saying months of bad publicity left the secretary of state's office no other choice.

"The question is: what was done with millions of dollars of public funds when the public wasn't watching?" he asked.