Audit of Administrative Fees Charged to the Federal Government for Florida Trust Funds

EXECUTIVE SUMMARY:

The objective of this audit was to determine whether Florida appropriately charged the Federal Government for administrative expenses of selected trust funds.  We found that the State inappropriately assessed an administrative fee totaling $108,850 on the interest earnings of two trust funds maintained by the State Department of Juvenile Justice.  The State used these administrative fees to support general government operations.  OMB Circular A-87 prohibits the use of Federal funds for the cost of general government.  The State did not adequately monitor the trust funds to ensure that all trust funds that contained Federal funds were exempt from the administrative fee assessment.  In addition to procedural recommendations, we recommended that the State repay the $108,850 to the State's Department of Juvenile Justice trust funds.  The State concurred with our findings and recommendations.