SUMMARY

In FY 2018-19, state agencies administered $12.4 billion in federal financial assistance. Our audit focused on 16 federal programs that accounted for 51.2 percent of the federal financial assistance administered by state agencies in FY 2018-19. We found that state agencies generally complied with federal requirements, and we provided an unmodified opinion on federal compliance for 13 of the programs we reviewed. We qualified our opinion on compliance related to cash management requirements for the other 3 federal programs. We make recommendations to four state agencies—DOA, DHS, DMA, and DPI—to improve the administration of federal programs. The federal government will work with state agencies to resolve the concerns we identified.