Virginia is being scrutinized for its charitable registration system after a federal judge found that the state is under-reporting charitable donations and was not required to keep the information up-to-date.
The nonprofit registration system was supposed to begin in April and was set to last through the end of July.
The program is a critical part of the federal Affordable Care Act.
The federal government is using the system to help fund health care and other social services.
But, on Friday, a federal appeals court ruled that Virginia was violating federal law and had to fix the problem.
Virginia Secretary of Health and Human Services Donna R. Robinson and her chief of staff, Amy B. Neely, have not responded to requests for comment.
Virginia officials say the problem has been caused by a combination of factors, including an increase in the number of people who have signed up for the program.
But some experts say the problems stem from the fact that the program is not designed to accurately track the number and distribution of individuals who have given money to a charity.
“The whole thing is a mess,” said Andrew P. Gershman, a professor of medicine at the University of California, Los Angeles.
“They have failed to take care of their records and have not made it a priority to make sure that people are getting their money.
The problem is not just that they’re not doing their job.
The problem is that they are not following regulations that are designed to be effective.
So they’re going to be unable to be trusted to keep track of that.”