State & Local Reports

The Office of the Auditor of Accounts Office (OAOA) prepared this special report to examine the model now used by the Department of Corrections (DOC) to purchase prescription drugs for inmates in Delaware correctional facilities. It includes an evaluation of the purchasing contract between DOC and its vendor Correct RX (CRX) from July 1, 2014 to June 30, 2018, including the two additional two-year renewal addendums that DOC chose to execute; a comparison of prescription drug purchasing models for other populations in Delaware’s care through the state’s Group Purchasing Organization (GPO), Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP Infuse); and a review of national trends of government pharmaceutical purchasing. Additionally, we calculated potential cost savings for three separate options if DOC’s purchasing model was converted to one under MMCAP Infuse. If DOC contracted through MMCAP Infuse instead of with CRX, we estimated that Delaware taxpayers could have saved as much as $44.1 million over seven years for pharmacy services. This would have reduced their annual budget for pharmacy services by nearly half. Our study reviewed DOC prescription drug spending for fiscal years 2019 and 2020 to prepare our estimates.

What Was Performed? A financial statement audit of the Delaware Department of Natural Resource and Environmental Control’s Hazardous Substance Cleanup Fund for Fiscal Year 2020 was performedWhy This Engagement? In July of 1990, the State of Delaware (the State) legislature passed, and the Governor signed, legislation establishing the State’s “Hazardous Substance Cleanup Act” (HSCA)(the Act). This Act establishes standards to be followed to protect the public health and welfare of citizens and theenvironment of the State from releases of hazardous substances. The Act also provides a fundingmechanism for the program.This engagement was performed in accordance with 29 Del. C. §2906 .What Was Found? This report has an unmodified opinion.1The Delaware Department of Natural Resources and Environmental Control, Hazardous Substance Cleanup Fund Financial Statement Audit for Fiscal Year Ended June 30, 2020 can be found on our website: click here.

We conducted an audit of five local governments who play a key role in a Continuum of Care (CoC). Our assessment of CoC agencies—groups of organizations, including local government agencies and homeless service providers, that receive funding from the U.S. Department of Housing and Urban Development to work toward ending homelessness within specified geographic areas—focused on best practices related to homeless services. In general, we determined that the State continues to struggle to coordinate its efforts to address homelessness, and CoCs do not always comply with federal regulations or follow best practices.

The audit shows that the ATB's resolution of cases through mediation has helped it process those cases more efficiently, but is underutilized. The audit examined the period of July 1, 2017 through December 31, 2019.

What Was Performed? An examination of Parkview Nursing and Rehab Long-Term Healthcare Facilityas of June 30, 2017 was performed.The State of Delaware is required to ensure that the fiscal records at nursing care facilities are retained and properly support the cost report, or the financial report showing the cost and charges related to Medicaid activities, submitted to the Medicaid Agency. These costs must be in compliance with federal and state regulations. Why This Report? Under the Delaware Medicaid State Plan, the State is required to examine a sample of six facilities around the State. This is to ensure the facility’s costs reports and wage surveys are in compliance with federal requirements and state requirements.What Was Found? I am pleased to announce that the cost reports and nursing wage survey of Parkview Nursing and Rehab Long-Term Healthcare Facility was in compliance with the federal and state regulations.The Examination of Parkview Nursing and Rehab Long-Term Healthcare Facility as of June 30, 2017 can be found on our website.

What Was Performed? An examination of Manor Care of Wilmington Long-Term Healthcare Facility as of June 30, 2016 was performed.The State of Delaware is required to ensure that the fiscal records at nursing care facilities are retained and properly support the cost report, or the financial report showing the cost and charges related to Medicaid activities, submitted to the Medicaid Agency. These costs must be in compliance with federal and state regulations. Why This Report? Under the Delaware Medicaid State Plan, the State is required to examine a sample of six facilities around the State. This is to ensure the facility’s costs reports and wage surveys are in compliance with federal requirements and state requirements.What Was Found? I am pleased to announce that the cost reports and nursing wage survey of Manor Care of Wilmington Long-Term Healthcare Facility was in compliance with the federal and state regulations.The Examination of Manor Care of Wilmington Long-Term Healthcare Facility as of June 30, 2016 can be found on our website.