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State government agencies are facing increased legal scrutiny and the potential loss of federal funding due to audits examining their email policies, business processes, data management, and other operational issues. As federal funding makes up a large portion of many state budgets, failing such audits could significantly constrain state administrations at a time when other revenue sources are decreasing. Modernization and digital transformation in government agencies requires changes to information flow and processes that audits are now examining beyond just financial matters.

