The Orange County Board of Supervisors has received the first phase of a forensic audit examining how billions in county contracts were awarded from 2019 to 2024. Conducted by Weaver and Tidwell LLP, the report reviewed 145 high-priority contracts worth about $486 million, part of a larger analysis of over 2,500 agreements totaling approximately $4.3 billion.
The audit focused on contracts tied to major public funding sources, including the American Rescue Plan Act and the CARES Act, prioritizing human services agreements and sole-source contracts issued during the COVID-19 pandemic. Findings highlighted significant weaknesses in oversight and procurement practices, particularly within the First Supervisorial District under former Supervisor Andrew Do.
The report alleges that former leadership influenced procurement decisions, creating an environment that discouraged scrutiny and favored specific businesses, some linked to political campaigns. Procurement staff reportedly felt pressured to approve contracts without proper oversight.
The emergency purchasing authority implemented during the pandemic allowed contracts to be awarded without competitive bidding or Board approval. This lack of oversight impacted sole-source contracts, which often bypassed competitive processes entirely.
Auditors also raised concerns about county-sponsored cultural events, noting that sponsorship revenues from these events were channeled through third parties, complicating financial transparency. Many procurement staff were unaware of these arrangements.
Additionally, issues with grant distribution were identified, with nonprofit intermediaries reportedly influenced by district leadership in selecting subrecipients for grant funds. Payments to contractors were occasionally authorized despite unresolved issues.
While the majority of contracts showed minor issues, 33 raised elevated risks. The audit team acknowledged limitations in their investigation and indicated that the report could be revised with new information. Further phases of the audit are expected to provide deeper insights into the findings.
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