SUMMARY

State agencies administered $12.5 billion in federal financial assistance in FY 2012-13. Expenditures funded by the federal American Recovery and Reinvestment Act of 2009 decreased from $3.5 billion in FY 2009-10 to $155.1 million in FY 2012-13. We provided an unmodified opinion on federal compliance and included recommendations related to the administration of federal programs. We also questioned more than $520,000 in costs charged to federal programs.