The California State Controller's office has completed payroll audits of two state agencies and found more than a million dollars was paid to employees improperly or without authorization.
At New Folsom Prison, there were more than 170 such cases.
Jacob Roper with the State Controller's Office says some New Folsom Prison employees were given credit for working holidays they didn't work or received vacation pay when they didn't take vacation.
"They had improper supervisor pay where an individual was being paid as a supervisor in a classification that would involve supervising a large number of people. In one case an individual only supervised two people."
Employees have been notified they will have to re-pay more than $100,000.
Roper says two fraud cases at the Patton state mental hospital in San Bernadino County total $900,000.
He says it all could have been avoided.
"There were very few controls in place, very little supervision, there weren't different people reviewing transactions from the people who keyed them in in the first place."
The Controller's office began auditing payrolls after it was discovered in 2012 that $54 million had been hidden by the Department of Parks and Recreation and employees had received improper benefits.
Six other audits are underway with six more planned.