San Luis Obispo County waste agency’s financial troubles continue

September 9, 2025

By KAREN VELIE

The latest audit for San Luis Obispo County’s waste agency found “inadequate internal controls over payroll during an employee’s leave of absence.” The SLO County Integrated Waste Management Authority board is scheduled to discuss the 2023-2024 fiscal year audit on Wednesday.

The certified public accounting firm Brown Armstrong finished their year-long analysis of the agency’s finances and found that “strengthening year-end closing procedures and improving payroll system policies, training, controls and approvals” were necessary, according to the staff report.

An employee of the waste agency resigned after she reported “gross misappropriation of public funds,” which agency staff then attempted to “sweep under the rug,” according to Ivonne Diaz’s Jan. 15 letter of resignation. While on leave in 2023, then Deputy Director Jordon Lane was paid both full regular wages and state disability insurance benefits, resulting in an overpayment.

Peter Cron served as the waste agencies executive director at the time of the overpayment. He announced his resignation on July 22, effective July 31.

The agency recently hired a new executive director, Coby Skye.

“Management has addressed this issue through revising its complete payroll system that includes replacing the previous payroll processing vendor with one that is familiar with the California Family and Medical Leave Act and SDI rules and regulations,” Skye wrote in response to the audit. “In addition, management has added additional safeguards by adding an outside accountancy review and is in the process of onboarding a third-party human resource firm that will take on the processing of payroll to ensure that this issue will not occur again.”

In July, the waste agency board approved a $1,250 per month agreement for human resources services.  The new firm’s expertise is in payroll and leave of absence.