In FY 2023-24, state agencies administered $18.6 billion in federal financial assistance, including $2.3 billion that was expended related to the public health emergency and that was separately identified in the State’s Schedule of Expenditures of Federal Awards. Our audit focused on 25 federal programs that accounted for 68.7 percent of the federal financial assistance administered. We provided an unmodified opinion on federal compliance for 22 of the programs we reviewed. However, we qualified our opinion on compliance related to certain requirements for 3 programs. We made 101 recommendations to improve the administration of federal programs and to address the internal control deficiencies we identified related to financial reporting. We questioned $36.1 million in costs that state agencies charged inappropriately to federal funds. The federal government will work with state agencies to resolve the concerns we identified.
