What Was Performed? A financial statement audit was performed to review the University of Delaware’sactions for managing and spending state funds for fiscal year 2020.Why This Engagement? In January 2019, under new leadership, the Office of the State Auditor thoroughlyreviewed Delaware Code. Upon review, it was revealed that the Office of the State Auditor was lacking inparticipation in jointly selecting an audit firm with the University of Delaware to perform their financialreport.This engagement was performed in accordance with 29 Del. C. §2906(h) and 14 Del. C. § 5109. It requiresa separate audit to be conducted for the use of state funds. The Code permits joint section of the auditingfirm with input from the State Auditor’s Office and the University of Delaware.What Was Found? The financial statements were presented fairly.We found that $111.2 million of the $125.3 million of state funds was spent on payroll and benefits. Basedon the samples tested, the majority of the payroll amounts tested were comingled.The General Assembly has spelled it out in the University’s charter at 14 Del. C. §5109 that if theUniversity commingles funds from a state appropriation with other funds, the audit of state appropriatedfunds may include the commingled nonstate funds. § 5109 Audit of accounts.27 Del. Laws, c. 117, § 5; Code 1915, § 2337; 32 Del. Laws, c. 166, § 1; Code 1935, § 2779; 14 Del. C.1953, § 5109; 54 Del. Laws, c. 256, § 2.;It also states” (e) This section shall not affect § 5109 of Title 14 which shall remain in full force andeffect; however, any other provision which stands in conflict with this section shall be null and void.”
DE
United States
