State & Local Reports

The audit found no deficiencies in its administration of the Adult Diversion (YADP) and Victim Witness Assistance (VWAP) Programs, but notes that its current case management system, known as the District Attorney Management Information Office Network (DAMION), is not well-suited to track and report on many aspects of the criminal justice system. The audit examined the period of July 1, 2018 through June 30, 2020.

What Was Performed? A special report that reviewed Delaware’s contract and overall relationship with pharmacy benefit manager (PBM) Express Scripts Inc. (ESI) for fiscal years 2018-2020. 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 evaluates the contract terms made with Express Scripts Inc. and pharmaceutical drug data for FY2018-20. This special report is intended to help lawmakers review and improve laws that regulate PBM behavior.What Was Found? Because of a lack of transparency in Delaware’s contract with ESI, the state has overlooked questionable charges and practices from the PBM. The report highlights five observations:1. Excessive PBM Costs: Delaware taxpayers footed prescription drug bills at 3 times the nationalinflationary average.2. Weak Contract Terms: Contract terms allowed the PBM to audit and assess penalties on pharmacies for minor errors and keep reclaimed funds concealed from the state plan.3. Leveraging Costs to Increase Revenue: An abundance of administrative fees created multiple pathways to mask true costs and ensure PBM profits on the backs of Delaware taxpayers.4. Lack of Transparency Requirements: Lack of transparency allowed the PBM to operate as an unregulated go-between that charges state taxpayers’ health plans more than it pays the pharmacy in reimbursement.5. PBM Predatory Practices: PBM behaviors fueled its profits on the backs of community pharmacies (and even chains), forcing closures, cutting access to healthcare for patients and causing job loss in Delaware.The special report offers five recommendations for improvement. The new special report, “Lack of Transparency & Accountability in Drug Pricing Could be Costing Taxpayers Millions,” can be found on our website.

The audit showed the Disabled Persons Protection Commission (DPPC) has been consistently missing required state deadlines for abuse investigations and did not have a system for identifying persons with repeated allegations of reported abuse. The audit examined July 1, 2017 through June 30, 2019.

The purpose of this audit was to identify potentially improper payments the Louisiana Workforce Commission (LWC) made to deceased individuals.We found that, of the approximately $8.57 billion in State and Federal Unemployment Insurance (UI) benefit payments made by LWC, approximately $1.08 million (0.013%) was paid to 374 individuals after they died. Of that amount, $629,091 in payments could not have been prevented, $337,007 of the payments should have been prevented by LWC’s current controls, and $123,194 could have been prevented if LWC conducted a weekly match with the Louisiana Department of Health’s (LDH) death data.

What Was Performed? An Agreed Upon Procedure of the Office of the State Treasurer (OST) Bank Reconciliations for Quarter Ended June 30, 2020. OST’s bank reconciliations team reconciles the collections and disbursements recorded with banks with what is recorded in the state’s accounting system (First State Financials). The team ensures the total amounts are accurately recorded in both systems.Additionally, the team haphazardly1 selected a sample of wire transfers to ensure they matched the bank statements and occurred within one business day.What was found? All tested samples reconciled correctly.Why This Engagement? This engagement was performed in accordance with 29 Delaware Code §2906(b). The State Auditor reviews the bank reconciliations produced by OST to ensure the reconciliations are accurate.The Agreed Upon Procedures of the Office of the State Treasurer Bank Reconciliations forQuarter Ended June 30, 2020, can be found on our website.1 Haphazard sampling is a sampling method in which the auditor does not intend to employ a systematic approach to selecting a sample

The audit of MSLC shows improvements in oversight of lottery sales and game integrity. The audit, which examined April 5, 2019 through March 31, 2020, pointed to deficiencies in criminal background record checks for lottery sales agents, reconciliation reports for terminated sales representatives, as well as the process the agency was using to prevent family members of lottery employees from claiming winning tickets.

This report presents our compliance audit of the State of Colorado for Fiscal Year 2020. The Statewide Financial Audit Report, which was released under separate cover in March 2021, includes the financial and IT-related findings and recommendations from our Fiscal Year 2020 audit.

What Was Performed? An Examination of the Smyrna School District’s Schedule of Construction Projects for Fiscal Year Ended June 30, 2019.Why This Engagement? School construction examinations 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 expenses incurred by the school district. What Was Found? It is my pleasure to report this engagement contained an unmodified opinion. 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 Engagement for Smyrna School District can be found on our website.

What Was Performed? An Agreed Upon Procedure of the Office of the State Treasurer Bank Reconciliations for Quarter Ended March 31, 2020. The Office of the State Treasurer’s bank reconciliations team (Reconciliations and Transaction Management) reconcile the collections and disbursements recorded with the banks with what is recorded in our accounting system (First State Financials). The bank reconciliations team ensures that the total amounts are accurately recorded in both systems. Additionally, the team haphazardly1 selected a sample of wire transfers to ensure agreed to the bank statements and occurred within one business day.What was found? All tested samples reconciled correctly.Why This Engagement? This engagement was performed in accordance with 29 Del. C. §2906(b). The State Auditor reviewed the bank reconciliation produced by the Office of the State Treasurer to ensure the reconciliations are accurately stated.The Agreed Upon Procedures of the Office of the State Treasurer Bank Reconciliations for Quarter Ended March 31, 2020, can be found on our website.