SUMMARY

We assessed internal controls, compliance with federal grant requirements, agency plans for corrective action, and the State´s Schedule of Expenditures of Federal Awards. State agencies administered nearly $15.0 billion in federal financial assistance in FY 2010-11, including approximately $2.8 billion received under the federal American Recovery and Reinvestment Act of 2009. Although state agencies generally complied with federal grant requirements, we include 58 recommendations to improve the State´s administration of federal funds.