TRENTON — State agencies left confidential data such as child abuse reports and Social Security numbers on discarded computers that were set to be auctioned off, according to a report released today by the state comptroller.

The audit revealed that 79 percent of computer hard drives inspected were not wiped clean before the agencies disposed of them. About one-third had confidential or personal information. State guidelines say agencies must delete all information before disposing of a computer, and releasing confidential data to unauthorized people is prohibited by state and federal law.

“At a time when identity theft is all too common, the state must take better precautions so it doesn’t end up auctioning off taxpayers’ Social Security numbers and health records to the highest bidder,” State Comptroller Matthew Boxer said.

The computers were at the state's surplus property warehouse and ready to be sold at public auction. During the audit, which ran from 2008 to the end of 2010, the comptroller also found a state judge's tax returns, mortgage information and life insurance trust agreement; personnel reviews and state employees' e-mails; internal memos from a state agency and personal contact information for members of a previous governor's cabinet.

Auditors also said some state equipment was given away without all agencies, local governments and nonprofits receiving equal access or notice, as state rules dictate. More than 900 cell phones sent to the surplus warehouse were set aside for one nonprofit, the report said.

The comptroller makes 10 recommendations to avert potential breaches of security and to ensure surplus equipment is distributed appropriately. Under state rules, other agencies have 30 days to claim surplus computers from the warehouse, and whatever remains is auctioned to the public or donated.

The audit was launched after an investigation by state law enforcement officials into alleged illegal activity by warehouse employees in 2007. All five of the employees were charged with theft and official misconduct, and four of those have pleaded guilty. The warehouse staff was completely replaced, since four employees were terminated and one is on disciplinary suspension.

Previous coverage:

• State warehouse worker admits rigging surplus auction