Issues noted include misappropriation of state funds, inadequate controls over grants and loans, and inadequate safeguarding of funds. State law requires agencies to promptly report actual or contemplated unauthorized, illegal, or irregular expenditures of state funds. The law also requires agencies to report the unsafe handling of state funds. “Informing the Auditors of Public Accounts would have made the investigation public, directly violating the confidentiality instruction,” DECD officials said. “DECD notes that once the investigation was made public, the Auditors of Public Accounts were notified.”