Gail Griffin Warns AZ's Noncompliance with Single Audit Will Cut Billions in Health Funding

State Representative Gail Griffin (R-19) recently warned that Arizona's continued noncompliance with the federal Single Audit under Governor Katie Hobbs (D-AZ) will cost the Grand Canyon State billions in healthcare funding.

The Context

As Cactus Politics previously reported in September, the Single Audit is the report that states and other entities must file when they spend more than $1 million in federal funds.

Assistant Secretary for Financial Resources Gustav Chiarello told the Arizona Joint Legislative Audit Committee (JLAC) about the state's failure to meet the audit deadline under Gov. Hobbs, calling it "inadequate."

State Representative Matt Gress (R-4) and State Senator Mark Finchem (R-4) both demanded Gov. Hobbs take accountability for the failure, especially as Auditor General Lindsey Perry suggested the 2025 audit would not be completed until next March, a full year after the original deadline.

Griffin's Warning

Now, State Rep. Griffin is warning of the consequences: repeated noncompliance has led federal agencies to withhold or freeze hundreds of millions of dollars from Arizona's public universities because of the late audits, including about $154 million from the National Institutes of Health. The universities ultimately separated from the State's Single Audit to protect their federal funding.

"Governor Hobbs has allowed Arizona to remain out of compliance year after year, and now the healthcare and benefits Arizonans depend on are exposed to federal penalties," State Rep. Griffin said in a press release. "We are talking about $18.3 billion in HHS funding and services that seniors, people with disabilities, and vulnerable families rely on. These Arizonans should not have to worry about losing benefits because the Governor has failed to meet basic federal accountability requirements."

She continued, "For four years under Governor Hobbs, this problem has gotten worse instead of better. Arizona has missed four consecutive federal deadlines, the number of audit findings has grown, and HHS is now warning about federal enforcement. Even after HHS formally notified the Governor that Arizona was not in compliance, her office did not have a direct conversation with the federal official responsible for addressing the delinquency. Four years is more than enough time to get this under control."

"Governor Hobbs needs to take responsibility and fix this," Griffin concluded. "Arizona needs a credible timeline, direct engagement with the Department of Health and Human Services, and an immediate plan to bring the State back into compliance. Seniors, families, and Arizonans with disabilities should not have their health care and other essential benefits put at risk because the administration cannot get its financial reporting in order."