CA Gov't Code Section 17616

The Controller shall have the authority to do either or both of the following:

(a)

Audit the fiscal years comprising the base year entitlement no later than three years after the year in which the base year entitlement is established. The results of such audits shall be used to adjust the base year entitlements and any subsequent apportionments based on that entitlement, in addition to adjusting actual cost payments made for the base years audited.

(b)

Verify that any local agency or school district receiving funds pursuant to this article is providing the reimbursed activities.