The O'Keefe Media Group on Tuesday released undercover video of California's top Controller Communications official admitting that audits "are not getting done" while acknowledging that fraud is rampant in the state.

Bismarck Obando told an undercover O'Keefe Media Group journalist that there is no plan to tackle homelessness.

"Do you feel there's fraud going on in the state of California?" the OMG journalist asked Obando.

Without skipping a beat he replied, "Everywhere, cities, counties, special districts, hospitals, insurance companies."