State & Local Reports

What Was Performed? An examination of the Appoquinimink School District’s Schedule of Construction Projects for Fiscal Year Ended June 30, 2019. Why This Engagement? School construction examination engagements, which are mandated by Delaware Code, are performed to determine compliance with Delaware Code, the State of Delaware Department of Education School Construction Technical Assistance Manual, and the State of Delaware Budget and Accounting Policy Manual. This engagement was performed in accordance with 29 Del. C. §7526 and examines Bond Bill construction project expenditures incurred by the school district. What Was Found? It is my pleasure to report this engagement contained an unmodified opinion.1 Our examination did disclose two findings required to be reported under Government Auditing Standards: • Of the 29 construction purchase orders we sampled, 15 of them – totaling $34,176,340 – did not contain the Facilities Manager’s signature. • The district did not properly document $9,245,875 for the Fairview Campus: Cantwell’s Bridge Middle School and Odessa High School projects on its Schedule of Construction Projects. The Fiscal Year Ended June 30, 2019 Statewide School Districts’ Construction Projects Examination Engagements for Appoquinimink School District can be found on our website.

The State of Oklahoma Single Audit Report for the fiscal year ended June 30, 2020 contains the independent auditor’s reports on compliance for each major federal program, on internal control over compliance, and on the Schedule of Expenditures of Federal Awards (SEFA) required by Uniform Guidance. Additionally, the Statewide SEFA is included and reflects $10,130,470,891 in federal expenditures during the year. The total federal expenditures increased by approximately $3 billion from SFY2019 due to the receipt of additional federal funding because of COVID-19. he 2020 Single Audit Report disclosed federal questioned costs of $34,145,474 and state questioned costs of $7,391,874 that are detailed within the findings presented in the Schedules of Findings and Questioned Costs section of the report. The resolution of these questioned costs will be determined by the respective federal grantors.

The objective of our audit was to assess the city’s financial controls related to the initial federal aid Denver received for its pandemic response efforts. This audit specifically focused on the $126.9 million the city received from the federal Coronavirus Relief Fund. The audit found that, in 2020, the Department of Finance sufficiently managed the city’s progress in spending federal coronavirus relief funds on pandemic-related expenses, but the city should also better document individual transactions. Additionally, we found problems related to how the city accounted for the interest it earned on the relief dollars.

The objective of our audit was to assess the city’s financial controls related to the initial federal aid Denver received for its pandemic response efforts. This audit specifically focused on the $126.9 million the city received from the federal Coronavirus Relief Fund. The audit found that, in 2020, the Department of Finance sufficiently managed the city’s progress in spending federal coronavirus relief funds on pandemic-related expenses, but the city should also better document individual transactions. Additionally, we found problems related to how the city accounted for the interest it earned on the relief dollars.

The Office of Inspector General (OIG) conducted an audit to determine whether the ward superintendent position within the Department of Streets and Sanitation (DSS) is appropriately classified as Shakman Exempt. More specifically, our objective was to determine whether the ward superintendent position meets the legal standard to qualify for Shakman Exempt status it currently possesses. The City of Chicago is legally bound to comply with court-ordered Hiring Plans when undertaking employment actions, including among others, hiring, promotions, and terminations. Chapter VIII of the City’s General Hiring Plan excludes so-called “Shakman Exempt” positions from certain aspects of the otherwise applicable and legally mandated selection processes and standards; most notably, for present purposes in their allowance for consideration of political reasons or factors when making hiring or termination decisions. Outside of these specified Exempt positions, taking political affiliation into account in government hiring decisions generally is not permissible because it violates the First and Fourteenth Amendments of the United States Constitution, which guarantee citizens the right to political association and expression. Courts, however, have carved out an exception for government positions where political affiliation is a relevant qualification to job performance.OIG concluded that the ward superintendent title does not meet the legal requirements for a Shakman Exempt designation and therefore should be subject to the standards and procedures, as well as political factor prohibitions, generally applicable under the City’s Hiring Plan.OIG found that the ward superintendent job description, the primary focus for analysis based on binding legal precedent, does not include inherent powers and responsibilities that support a determination that the position is Shakman Exempt. In addition, the ward superintendent’s placement within the organizational structure of DSS undermines any assertion that the position involves policymaking or discretion for politically sensitive matters, as is required for Shakman Exempt status. We also found the actual day-to-day functions and responsibilities of the position––as described by a cross-section of ward superintendents assigned across the City––confirm the reliability and accuracy of the job description and do not involve political or policymaking duties or authority. Accordingly, the position lacks characteristics necessary to justify its inclusion on the City’s list of Shakman Exempt positions for which political considerations may be considered and factored in the selection process.

The audit found the college’s use of federal assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been consistent with federal guidelines. The audit examined the period of March 1, 2020 through September 30, 2020.

What Was Performed? An examination of Jeanne Jugan Residence Long-Term Healthcare Facility as of June 30, 2016. Why This Report? The State of Delaware is required to ensure that the fiscal records at nursing care facilities are retained and properly support the cost report – which is the financial report showing the cost and charges related to Medicaid activities – 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 facilities around the state each year. These examinations are to ensure facilities’ cost reports and wage surveys comply with federal and state requirements. What Was Found? This examination could not be completed because of a severe lack of documentation. Administration at the Jeanne Jugan Residence was unable to produce sufficient data showing how many patients were served each day. Without accurate patient census data, it was impossible to determine whether the facility costs billed to state government were correct. The Jeanne Jugan Residence Long-Term Healthcare Facility Examination as of June 30, 2016, can be found on our website.

What Was Performed? An examination of the Cape Henlopen School District’s Schedule of Construction Projects for Fiscal Year Ended June 30, 2019. Why This Engagement? School construction examination engagements, which are mandated, are performed to determine compliance with Delaware Code, the State of Delaware Department of Education School Construction Technical Assistance Manual, and the State of Delaware Budget and Accounting Policy Manual. This engagement was performed in accordance with 29 Del. C. §7526 and examines Bond Bill construction project expenditures incurred by the school district. What Was Found? It is my pleasure to report this engagement contained an unmodified opinion.1 In addition, there were no findings required to be reported under Government Auditing Standards. The Fiscal Year Ended June 30, 2019 Statewide School Districts’ Construction Projects Examination Engagements for Cape Henlopen School District can be found on our website.

As authorized by state law, our office conducted a state high risk audit of the Department of Health Care Services’ (Health Care Services) management of federal funds related to the COVID-19 public health emergency that began in 2020. Health Care Services administers the Medi-Cal program, which received a significant increase in federal support to respond to the emergency. The following report details our conclusion that Health Care Services is not doing enough—notwithstanding the emergency—to resolve eligibility questions about Medi-Cal beneficiaries and avoid federal financial penalties associated with individuals who should not be enrolled in Medi-Cal.