(SACRAMENTO) — Amid reports of excessive expenditures and inappropriate, Senator George Runner (R-Antelope Valley) and Senator Deborah Ortiz (D-Sacramento) presented a request to the Joint Legislative Audit Committee late yesterday afternoon for the State Auditor to conduct a performance audit of the California Institute of Regenerative Medicine (CIRM) and the Independent Citizen’s Oversight Committee (ICOC) which were created by Proposition 71.

 

“Since the passage of Proposition 71, this Institute has been mired in controversy from excessive expenditures to their resistance to open meetings and strict conflict-of-interest standards.  This performance audit serves as a needed check to ensure this Institute is not abusing taxpayer resources,” said Senator Runner. The performance audit will review the strategic policies and plans developed by the CIRM and the ICOC; policies and procedures for issuance of research and facility contracts and grants; policies for hiring and compensation of staff and for procurement of goods and services; policies for managing conflicts of interest for ICOC and working group members; and policies and procedures relating to management of intellectual property rights associated with research funded or commissioned by the CRIM. In its one-year existence well over $2 million with most of it spent on contracts and staffing.  There have been reports of excessive contracts where even some ICOC board members have voiced concern. Furthermore, reports have also highlighted problems with open meetings and resistance to adopting strict conflict-of-interest standards for board members. Runner said, “While the Institute seems to be making some progress on adopting more open meeting and conflict-of-interest provisions, it is important that there is an audit to ensure that the taxpayer dollars are being spent appropriately.”

The Joint Legislative Audit Committee approved the audit request with a bipartisan 9-0 vote.