State & Local Reports

The primary objective of this report is to show Missouri's spending of federal assistance in the month of May 2021 for the Coronavirus Disease 2019 (COVID-19) emergency and the cumulative financial activity since the state began receiving funding in April 2020.

The primary objective of this report is to show Missouri's spending of federal assistance in the month of June 2021 for the Coronavirus Disease 2019 (COVID-19) emergency and the cumulative financial activity since the state began receiving funding in April 2020.

The COVID-19 pandemic drove the Office of the New York State Comptroller to move forward creatively and identify new ways to tap into and analyze data. Auditors and examiners pursued increased data analysis and used a wider variety of data sources in audit planning and risk assessment, including the Statewide Financial System, First New York data warehouse, New York Benefits Eligibility and Accounting System, CVS Health, National Highway Traffic Safety Administration, and the U.S. Department of Labor’s Employment and Training Administration, as well as internal State agency data

This report details the operation of the New York State UI system, the recent history and specific impacts of the COVID-19 pandemic on the Trust Fund, and steps that can be taken to replenish the Trust Fund balance. Working together, New York State, participating employers and the federal government can develop solutions that restore the Trust Fund while allowing the ongoing economic recovery to continue

The Office of Inspector General (OIG) conducted an audit of the Department of Finance’s (DOF) administration of the process for designating municipal depositories. Banks designated as depositories hold and pay interest on funds deposited by the City and the Chicago Board of Education, essentially serving as the City’s checking accounts. The objectives of the audit were to determine if DOF ensures that banks applying for designation submit the required information, and whether the designation process serves the City’s goal of partnering with institutions that not only have the capacity to fulfill its banking needs, but also provide financial services to Chicago communities in an inclusive and equitable manner.A community’s access to financing is critical to its prosperity. Financial institutions, however, invest much less in some communities than others. To address this inequality, Chicago and other cities have established responsible banking ordinances (RBOs) to encourage equitable lending by the banks that hold their deposits.DOF administers Chicago’s RBO through a request for proposal (RFP) process to determine banks’ eligibility. The RFP process is intended to identify banks that can meet the City’s financial needs and have demonstrated a commitment to providing equitable lending and other banking services throughout Chicago.The municipal depository designation RFP process occurs annually, as required by state law. DOF solicits and reviews banks’ submissions, then identifies eligible depositories in an ordinance. The ordinance is then transmitted to the City Council’s Committee on Finance. The Committee does not always present the ordinance for consideration by the full Council. When it does, following Council proceedings, the Treasurer’s Office determines which of the eligible depositories will hold the City’s deposits. If the full Council does not consider the ordinance, the list of eligible depositories established by the most recent enacted ordinance remains in effect. This audit focused on DOF’s role as the administrator of the process.OIG concluded that, although DOF ensures that banks submit all documentation required by the RFP, it does not evaluate whether the banks provide inclusive and equitable financial services throughout Chicago. Furthermore, DOF, City Council, and the Treasurer’s Office have not coordinated their roles in the municipal depository designation process to achieve the City’s inclusivity and equity goals.Although DOF ensures banks’ RFP submissions are complete, it does not evaluate the banks’ community investment and equitable lending efforts. DOF does identify potentially predatory loans, such as those with an interest rate higher than the federal funds rate. In these cases, the Department follows up with banks to inquire about the specific conditions underlying the loans. According to current DOF staff, however, they have never declined to designate a bank as a municipal depository on the basis of such lending conduct. Without undertaking a substantive evaluation of each bank seeking designation, DOF cannot identify demographic disparities in banking activity. Banks may then continue to lend inequitably across Chicago while the City continues to partner with them.OIG also found that DOF, City Council, and the Treasurer’s Office have not coordinated their efforts in the municipal depository designation process to achieve the City’s objective of encouraging equitable banking practices. The three entities largely act in isolation, and Council designates depositories infrequently. Because Council has not regularly voted on the designation ordinance, one of the City’s previously active banks was able to keep its designation as a municipal depository until March 2021 despite not having responded to the RFP since 2012, and three banks that responded to multiple RFPs since 2016 did not secure designation until March 2021. Moreover, this lack of coordination has hindered meaningful discussion of alternative banking options that may better align with the City’s equitable banking goals. For example, DOF, City Council, and the Treasurer’s Office have all separately expressed interest in allowing credit unions to become municipal depositories. Members of Council and the Treasurer’s Office have supported separate ordinances addressing this issue, but without a coordinated effort, the initiative has failed to gain traction.

This audit report assessed what factors caused delays in the Kansas Department of Labor’s unemployment claims processing during the COVID-19 pandemic? To answer this question, we spoke with officials from the Kansas Department of Labor (KDOL) and reviewed KDOL staffing, incident, and call center reports. This audit also includes an updated unemployment insurance fraud estimate. In February 2021 we released the first part of this audit. In that audit we reported a preliminary estimate of how much fraud could have occurred in Kansas in 2020. In this report, we used KDOL claims data from January 2020 through February 2021 to provide a more precise estimate

What Was Performed? A special report was performed as a follow-up to a recent survey provided by the State Auditor’s Office to independent pharmacy owners on pharmacy benefit manager (PBM) operations.Why This Engagement? Under the Delaware Code, it is the State Auditor’s job to offer suggestions to improve efficiency and effectiveness in state government. This special report reviews the main concerns of small independent pharmacy owners on how PBM operations affect their businesses. This special report is intended to help lawmakers review and improve laws that regulate PBM behavior.What Was Found? Survey results revealed the pressures being placed on Delaware’s independent pharmacies to close shop and place Delawareans’ healthcare in the hands of large retail establishments.The report highlights a series of takeaways, including:1. Direct and Indirect Remuneration (DIR) fees, decreasing reimbursements, and a lack of state-regulated transparency and accountability have a very high impact on Delaware’s independent pharmacies.2. Delaware’s independent pharmacists report being squeezed by pharmacy benefit managers by means of being forced to accept lower reimbursements, exclusionary formularies, and preferred pharmacies.3. Owners of Delaware’s independent pharmacies unanimously felt that PBMs were an obstacle between the patient and the healthcare provider and that they were largely responsible for increasing drug prices.4. Delaware’s independent pharmacies suffer from similar problems noted in the 2019 National Community Pharmacists Association (NCPA) survey, which observed that greater oversight is needed.The new special report, “Predatory Practices: Survey Says Middlemen Destroying Delaware’s Independent Pharmacies,” can be found on our website.

What Was Performed? An examination of Cadbury At Lewes Long-Term Healthcare Facility as of June 30, 2017.Why This Report? The State of Delaware is required to ensure 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 that is submitted to the Medicaid Agency. These costs must comply with federal and state regulations. Under the Delaware Medicaid State Plan, the state is required to examine a sample of long-term carefacilities each year. This is to ensure the facility’s cost reports and wage surveys comply with federal and state requirements.What Was Found? The Cadbury At Lewes Long-Term Healthcare Facility examination could not be fully completed because administration could not provide supporting documentation for a portion of the costs (approximately $1.1 million, or 18 percent) that were included on the 2016 report.Because of the lack of documentation, auditors were unable to determine the accuracy of these costs, whether adjustments to these amounts were necessary, and whether management’s assertions related to these costs were accurate. The Examination of Cadbury At Lewes Long-Term Healthcare Facility as of June 30, 2017, can be found on our website.