Fresno EOC Audit Finds Sloppy Records, Out-of-Control Spending

Forensic review uncovers budget issues but no evidence of abuse at social services nonprofit

Published on Feb. 24, 2026

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A forensic audit of the Fresno Economic Opportunities Commission (Fresno EOC) found numerous examples of sloppy recordkeeping and out-of-control spending by administrators, but no signs of wrongful activity. The audit, requested by Assemblymember Joaquin Arambula, revealed that some programs were overspending without budget consideration, and the Finance Committee had been disbanded. Fresno EOC tapped into reserves and took out a $5 million loan to stay afloat, leading to significant organizational changes in 2025 including job cuts and a focus on spending accountability.

Why it matters

The Fresno EOC is a major social services provider in the region, operating programs like Head Start, WIC, and food and transit services. The audit findings raise concerns about financial oversight and management at the organization, which had been on the verge of shutting down due to its financial troubles. The situation highlights the importance of strong budgeting, recordkeeping, and accountability measures at nonprofits that rely on public funding.

The details

The forensic audit, conducted by consulting firm Wipfli LLC, found that "pockets of the organization didn't understand or weren't mindful of budgets." Some employees were unaware of their program's budget or if there even was a budget. In the food services division, which was overspending, administrators were told "to 'go ahead and spend. We'll manage it somehow.'" The audit also revealed that the Finance Committee had been disbanded, and credit card purchases were able to bypass purchasing controls. After the financial crisis became public, Fresno EOC underwent major changes in 2025 including job cuts, benefit reductions, and a focus on spending accountability.

  • The forensic audit was requested by Assemblymember Joaquin Arambula in November 2024.
  • The Fresno EOC board voted in December 2024 not to renew the contract of CEO Emilia Reyes.
  • In early 2025, the board hired Wipfli to conduct the forensic audit.
  • Fresno EOC had already shifted $3 million from its health plan reserves and also needed a $5 million loan to keep the doors open.
  • Fresno EOC burned through $10 million in reserves over a three-year period starting in 2022.

The players

Joaquin Arambula

A California Assemblymember who requested the forensic audit of Fresno EOC after making public that the organization was "hemorrhaging" money and had spent down its reserves.

Emilia Reyes

The former CEO of Fresno EOC from 2020 through 2024, who reportedly played a large role in the organization's poor recordkeeping and financial issues.

Salam Nalia

A former Fresno EOC administrator who was rehired after five years of retirement to help turn the organization around as the interim deputy CEO.

Brian Angus

The former CEO of Fresno EOC who was rehired in 2025 to help restructure the organization.

Steven Lewis

The current CEO of Fresno EOC, hired in 2025 after a national search.

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What they’re saying

“Some programs, specifically food services, were just overspending. And we were told that the instructions to the food director was to 'go ahead and spend. We'll manage it somehow.' So I don't know what happened in those five years beyond the fact that the spending was out of control.”

— Salam Nalia, Interim Deputy CEO (gvwire.com)

“If we had not borrowed funds in 2025 from Self Help, after six banks refused us, we would not be in this building because it would have been sold by now. So we were in a pretty precarious situation. I don't know how we got to it, but we were in that situation.”

— Salam Nalia, Interim Deputy CEO (gvwire.com)

“Can you help us to understand how the administration had no safeguards in place? Was that a decision that the board made? Was that sort of a board chair decision? Was this a CEO decision? And again, I just want to make sure that I'm highlighting this has nothing to do with our current CEO, Steven Lewis. I'm just trying to see why we would authorize the administration to have no safeguards of our rules.”

— Joaquin Arambula, California Assemblymember (gvwire.com)

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.