{"id":64234,"date":"2026-06-08T13:34:20","date_gmt":"2026-06-08T17:34:20","guid":{"rendered":"https:\/\/www.rightwinggranny.com\/?p=64234"},"modified":"2026-06-08T13:34:20","modified_gmt":"2026-06-08T17:34:20","slug":"shouldnt-every-state-be-required-to-pass-an-audit","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=64234","title":{"rendered":"Shouldn&#8217;t Every State Be Required To Pass An Audit?"},"content":{"rendered":"<p>On Sunday, <a href=\"https:\/\/www.dailysignal.com\/2026\/06\/07\/13-states-failed-basic-financial-audits-here-are-the-7-biggest-red-flags\/\" target=\"_blank\" rel=\"noopener\">The Daily Signal<\/a> posted an article about an audit of states that was done to verify billions of dollars in unemployment spending, Medicaid payments, and pension obligations in federally-funded programs. Needless to say, some states had problematic results.<\/p>\n<p>The article reports:<\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>The findings in the <a href=\"https:\/\/www.truthinaccounting.org\/library\/doclib\/Financial-Transparency-Score-2026.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2026 Financial Transparency Score<\/a> report, released by the government watchdog Truth in Accounting, found that 13 states failed to earn clean audit opinions. The report comes as the Trump administration is cracking down on how states are spending federal dollars.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>The organization used data from annual comprehensive financial reports, or ACFRs, produced by each state as a requirement for getting federal funding.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>The biggest culprits of the unlucky 13 states, according to the analysis, were Delaware and Georgia, as auditors were unable to obtain enough evidence to issue an opinion at all. This is a \u201cdisclaimer\u201d in audit terms.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>&#8230;Arizona\u2019s audit identified one of the more striking problems cited by the Truth in Accounting report.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>\u201cArizona was unable to substantiate much of its financial statements, including a discrepancy of $231.1 million between the Arizona Department of Economic Security\u2019s cash balance and its bank records,\u201d the report says, citing the state\u2019s 2023 ACFR.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>&#8230;California\u2019s most <a href=\"https:\/\/www.sco.ca.gov\/Files-ARD\/ACFR\/ACFR25web.pdf\" target=\"_blank\" rel=\"nofollow noopener\">recent ACFR<\/a>, which reviewed the state\u2019s finances for 2024, found the state had to correct $1.4 billion in prior-year accounting errors, a previously unreported $950 million in loans, and a $196.5 billion unrestricted deficit driven by pension and retiree obligations. It further had to note that the state\u2019s Medicaid system helped create an $11.8 billion budget shortfall.<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>The 2025 state budget act partially addressed the Medicaid shortfall; one measure included an enrollment freeze, H.D. Palmer, spokesman for the California Department of Finance, told the Daily Signal.\u00a0\u00a0<\/strong><\/p>\n<p class=\"wp-block-paragraph\" style=\"padding-left: 40px;\"><strong>Palmer added that the administration directed the Labor and Workforce Development Agency to assess potential concepts to pay down the outstanding unemployment insurance loan balance. Regarding the $196.5 billion in unrestricted debt, Palmer said it is mostly for pensions.\u00a0<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>&#8230;In Alaska, auditors reported that the state\u2019s Medicaid payment-processing system relies on outside contractors. However, it says the state failed to obtain independent assurance that the contractors\u2019 financial controls were functioning effectively during fiscal year 2024.<\/strong><\/p>\n<p>You get the picture. Please follow the link to the article to get the rest of the list.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Sunday, The Daily Signal posted an article about an audit of states that was done to verify billions of dollars in unemployment spending, Medicaid payments, and pension obligations in federally-funded programs. Needless to say, some states had problematic results. &hellip; <a href=\"https:\/\/www.rightwinggranny.com\/?p=64234\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[19605,95,19604,30,3069,1972,10397,19606],"class_list":["post-64234","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-2026-financial-transparency-score-report","tag-arizona","tag-audit-of-state-funds","tag-california","tag-delaware","tag-georgia","tag-the-daily-signal","tag-truth-in-accounting"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/64234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64234"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/64234\/revisions"}],"predecessor-version":[{"id":64235,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/64234\/revisions\/64235"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}