Truth in Accounting, a nonprofit dedicated to promoting transparent and accurate government financial reporting, closely examines state audits to highlight risks to taxpayers. Florida's most recent Single Audit—which reviews compliance with federal grant requirements—raises red flags about the management of substantial federal dollars allocated to public health programs. These findings, from the Florida Auditor General's report, underscore issues with accountability, documentation, and potential misuse of funds in two key programs administered by the Florida Department of Health (FDOH).
The Public Health Emergency Preparedness (PHEP) program (CFDA 93.069) received $31,492,289 in federal funds. Auditors found that FDOH failed to maintain adequate records demonstrating compliance with "level of effort" and "maintenance of effort" requirements. These rules ensure federal dollars supplement—rather than supplant—existing state and local funding, and that public health security spending remains at prior-year levels. Without proper documentation, auditors could not verify that these standards were met. This lapse increases the risk that federal funds could be disallowed, recouped, or misused, eroding transparency and accountability for taxpayers who ultimately fund these grants.
Similarly, the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program (CFDA 93.323) involved a much larger amount of federal funding: $131,533,961. Here, auditors identified problems with inaccurate or unsupported financial data in core accounts, as well as missing quarterly reports for COVID-related accounts. These deficiencies stemmed in part from employee turnover and inadequate documentation. As a result, auditors lacked sufficient evidence to confirm the accuracy of reported expenditures or overall compliance with federal requirements.
Both programs received a disclaimer of opinion—the most severe audit outcome—meaning auditors could not express an opinion on compliance due to insufficient evidence. This is not a mere technicality; it signals fundamental weaknesses in oversight that prevent confirmation of proper use of federal taxpayer dollars. In total, Florida's Single Audit included 10 qualified opinions across various programs, indicating broader compliance challenges.
From Truth in Accounting's perspective, these issues fit a pattern seen in many states: governments receive billions in federal grants but struggle with the rigorous tracking, reporting, and documentation required to demonstrate that funds were used appropriately. When records are incomplete or unreliable, they undermine public trust and expose taxpayers to financial risks, including potential repayment demands from federal agencies.
Are stronger internal controls the answer or better record-keeping? What about state staffing issues? Do the states have enough employees to cover tracking these federal dollars? How much does the tracking of federal dollars cost each state?
While Florida has shown overall fiscal strength in its broader financial picture, with recent analyses indicating a taxpayer surplus. Federal grant compliance remains a vulnerability that deserves urgent attention from state leaders. Taxpayers deserve full transparency on how their dollars—whether state or federal—are managed.