State & Local Reports

What Was Performed? A performance audit of the Smyrna School District’s compliance withconducting criminal background checks for covered employees, contractors, volunteers andstudent teachers for calendar years January 1, 2014, through December 31, 2019.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. § 2906 andevaluated the district’s compliance with state laws and regulations regarding criminal backgroundchecks required for all district employees, contractors, volunteers and student teachers.Our performance audit had two objectives:(1) Determine if the district complied with state laws and regulations for criminal backgroundchecks on all required employees, contractors, volunteers and student teachers, and(2) Assess the district’s internal controls and determine if the controls have been properlyemployed to reduce the risk of harm to district students.This report is intended to assist district management with recommendations to improveprocedures, processes and internal controls as necessary.What Was Found? We found the district could strengthen its internal controls in several ways,including by improving documentation to ensure the following:(1) employees, contractors, volunteers and student teachers are cleared, certified and suitable fortheir positions in accordance with state laws and regulations, and(2) employee, contractor, volunteer and student teacher files contain the requisite documentationto provide evidence of the district’s compliance with relevant state laws, regulations and policies.The report contains several recommendations for improvement, which we encourage districtmanagement to consider implementing. These recommendations were developed based onevaluation of audit evidence obtained for not only this school district but also all districts acrossthe state, and they are designed to help keep schoolchildren safer by improving internal controlsrelated to certifying the criminal background check processes.

What Was Performed? A performance audit of the Sussex Technical School District’s compliancewith conducting criminal background checks for covered employees, contractors, volunteers andstudent teachers for calendar years January 1, 2014, through December 31, 2019.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. § 2906 andevaluated the district’s compliance with state laws and regulations regarding criminal backgroundchecks required for all district employees, contractors, volunteers and student teachers.Our performance audit had two objectives:(1) Determine if the district complied with state laws and regulations for criminal backgroundchecks on all required employees, contractors, volunteers and student teachers, and(2) Assess the district’s internal controls and determine if the controls have been properlyemployed to reduce the risk of harm to district students.This report is intended to assist district management with recommendations to improveprocedures, processes and internal controls as necessary.What Was Found? We found the district could strengthen its internal controls in several ways,including by improving documentation to ensure the following:(1) employees, contractors, volunteers and student teachers are cleared, certified and suitable fortheir positions in accordance with state laws and regulations, and(2) employee, contractor, volunteer and student teacher files contain the requisite documentationto provide evidence of the district’s compliance with relevant state laws, regulations and policies.The report contains several recommendations for improvement, which we encourage districtmanagement to consider implementing. These recommendations were developed based onevaluation of audit evidence obtained for not only this school district but also all districts acrossthe state, and they are designed to help keep schoolchildren safer by improving internal controlsrelated to certifying the criminal background check processes.

What Was Performed? The State of Delaware Annual Comprehensive Financial Report (ACFR) for FiscalYear ended June 30, 2021.Why This Engagement? The purpose of the ACFR is to be transparent about the use of taxpayers’ moneyand to provide an accounting of all state expenditures. The ACFR does this by including dozens of basicand intricate financial reports, along with notes, narratives and supporting data.The state’s ACFR examines all funds, departments, organizations, bureaus, boards, commissions, offices ofelected officials and authorities that make up the state’s legal entity. Individually presented componentunits, which are legally separate entities for which the State is financially accountable, are also included.These entities had their own financial statement audits performed:• Delaware State Housing Authority*,• Diamond State Port Corporation*,• Riverfront Development Corporation,• Delaware State University,• Delaware Agricultural Lands Preservation Foundation*, and• 23 charter schools.In addition, the Department of Transportation* and the Delaware State Lottery* had separatefinancial statement audits and are included as business-type activities in the ACFR. Business-typeactivities recover all or a portion of their costs through user fees and charges.The ACFR is an important tool used to analyze the state’s overall financial position for purposes ofbond financing and for establishing financial transparency and credibility with its creditors andoversight agencies.This engagement was performed in accordance with 29 Del. C. § 2906(a). This ACFR audit wasconducted using generally accepted auditing standards (GAAS) in the United States. The internalcontrol report and findings of the ACFR, conducted according to generally accepted governmentauditing standards (GAGAS), will be presented at a later date.

What Was Performed? A performance audit of the Department of Education’s (DOE’s)compliance with conducting criminal background checks for covered employees for calendaryears January 1, 2014, through December 31, 2019.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. § 2906 andevaluated DOE’s compliance with state laws and regulations regarding criminal background checksrequired for all employees.Our performance audit had two objectives:(1) Determine if DOE complied with state laws and regulations for criminal background checks onall required employees, and(2) Assess the DOE’s internal controls and determine if the controls have been properly employed.This report is intended to assist DOE’s management with recommendations to improveprocedures, processes and internal controls as necessary.What Was Found? We found the DOE could strengthen its internal controls in several ways,including by improving documentation to ensure the following:(1) employees are cleared, certified and suitable for their positions in accordance with state lawsand regulations, and(2) employee files contain the requisite documentation to provide evidence of DOE’s compliancewith relevant state laws, regulations and policies.The report contains several recommendations for improvement, which we encourage DOE’smanagement to consider implementing. These recommendations were developed based onevaluation of audit evidence obtained for DOE, and they are designed to help keep schoolchildrensafer by improving internal controls related to certifying the criminal background checkprocesses.The Department of Education Criminal Background Checks Performance Audit for 2014 through2019 can be found on our website.Please do not reply to this email. For any questions regarding the attached report, p

What Was Performed? A performance audit of the Brandywine School District’s compliance withconducting criminal background checks for covered employees, contractors, volunteers andstudent teachers for calendar years January 1, 2014, through December 31, 2019.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. § 2906 andevaluated the district’s compliance with state laws and regulations regarding criminal backgroundchecks required for all district employees, contractors, volunteers and student teachers.Our performance audit had two objectives:(1) Determine if the district complied with state laws and regulations for criminal backgroundchecks on all required employees, contractors, volunteers and student teachers, and(2) Assess the district’s internal controls and determine if the controls have been properlyemployed to reduce the risk of harm to district students.This report is intended to assist district management with recommendations to improveprocedures, processes and internal controls as necessary.What Was Found? We found the district could strengthen its internal controls in several ways,including by improving documentation to ensure the following:(1) employees, contractors, volunteers and student teachers are cleared, certified and suitable fortheir positions in accordance with state laws and regulations, and(2) employee, contractor, volunteer and student teacher files contain the requisite documentationto provide evidence of the district’s compliance with relevant state laws, regulations and policies.The report contains several recommendations for improvement, which we encourage districtmanagement to consider implementing. These recommendations were developed based onevaluation of audit evidence obtained for not only this school district but also all districts acrossthe state, and they are designed to help keep schoolchildren safer by improving internal controlsrelated to certifying the criminal background check processes.

What Was Performed? A performance audit of the Caesar Rodney School District’s compliancewith conducting criminal background checks for covered employees, contractors, volunteers andstudent teachers for calendar years January 1, 2014, through December 31, 2019.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. § 2906 andevaluated the district’s compliance with state laws and regulations regarding criminal backgroundchecks required for all district employees, contractors, volunteers and student teachers.Our performance audit had two objectives:(1) Determine if the district complied with state laws and regulations for criminal backgroundchecks on all required employees, contractors, volunteers and student teachers, and(2) Assess the district’s internal controls and determine if the controls have been properlyemployed to reduce the risk of harm to district students.This report is intended to assist district management with recommendations to improveprocedures, processes and internal controls as necessary.What Was Found? We found the district could strengthen its internal controls in several ways,including by improving documentation to ensure the following:(1) employees, contractors, volunteers and student teachers are cleared, certified and suitable fortheir positions in accordance with state laws and regulations, and(2) employee, contractor, volunteer and student teacher files contain the requisite documentationto provide evidence of the district’s compliance with relevant state laws, regulations and policies.The report contains several recommendations for improvement, which we encourage districtmanagement to consider implementing. These recommendations were developed based onevaluation of audit evidence obtained for not only this school district but also all districts acrossthe state, and they are designed to help keep schoolchildren safer by improving internal controlsrelated to certifying the criminal background check processes.

The Office of Inspector General (OIG) conducted an audit of the City’s compliance with the Tax Increment Financing (TIF) Sunshine Ordinance and the TIF Surplus Executive Order. The audit had two objectives:1. To determine if the Department of Planning and Development (DPD) is meeting the requirements of the TIF Sunshine Ordinance, Municipal Code of Chicago § 2-45-155, which requires the City to make certain data related to TIF projects and districts publicly available.2. To determine if DPD and the Office of Budget and Management (OBM) comply with Executive Order 2013-3, Declaration of TIF Surplus Funds in TIF Eligible Areas, which requires the City to annually declare at least 25% of the City’s unallocated TIF balance as “surplus” to be remitted to taxing bodies affected by TIF.OIG concluded that the City does not provide the public with all of the data required by the TIF Sunshine Ordinance. We also concluded that the City declared a TIF surplus in accordance with the Executive Order in 2020, but limited the amount to be considered for surplus declaration. This limitation was a result of recording errors, a lack of consistency in reviewing projects, and the allowance of stagnant unspent funds.

The audit shows the university did not add over one thousand newly hired individuals to its payroll system in a timely fashion. The audit, which examined the period of July 1, 2017 through March 31, 2019, evaluated whether the university had taken measures to address management issues first identified in a 2017 external audit conducted by KPMG.

What Was Performed? A special report that reviewed healthcare-relatedshortages and legislative changes concerning pharmacists’ provider status in effortsto protect and expand consumer access to critical services.Why This Engagement? Under the Delaware Code, it is the State Auditor’s job to offersuggestions to improve efficiency and effectiveness in state government. This special reportevaluates national and state legislative changes that can help improve the effectiveness ofthe state’s healthcare systems and prevent any further loss of professional pharmacyservices in underserved areas.What Was Found?• Healthcare Shortage: There is currently a shortage of roughly 43,000 physicians nationwide,most notably in rural and urban areas.• Poor Access to Care: 25% of Delawareans live in a Health Professional Shortage Area(HPSA), and Delaware ranks 48th in the nation for access to care in a designated HPSA.• Excessive Costs: Delaware has the 5th-highest spending in the country per patient, withmuch of that cost stemming from patients forced to seek medical care at hospitals.• Legislative Solutions: 37 states have passed reimbursement and provider status legislationfor licensed pharmacists to address the healthcare provider shortage. In 2021 alone, 213bills were introduced in 43 states to codify federal and state emergency authority grantedduring the pandemic.• Recommendations: This report contains 3 recommendations and an analysis of benefits ofcomparable legislative changes for key stakeholders (patients, health plans, andpharmacists).The new special report, “Strengthening our Frontlines: Securing Provider Status for Delaware’sPharmacists” can be found here.Under Delaware Code 2909, the State Auditor may produce special reports that examine stateagencies’ performance and offer recommendations for greater accuracy and efficiency, as wellas data, information, and recommendations the auditor deems advisable and necessary.Please do not reply to this email. For any questions regarding the attached report, please contactState Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.

During our audit, we identified internal control and compliance findings that we believe are either directly, or indirectly, related to a lack of resources available for processing and adjudicating unemployment claims with the onset of the COVID-19 public health emergency. Since March 2020, the ramifications of the COVID-19 public health emergency have significantly affected the Commission’s operations. To address the rapid rise in unemployment, the federal government provided additional federal funding to states and implemented several new unemployment-related benefits. The Commission struggled to adapt to these changes due to a lack of both staffing and technology resources. As a result, the Commission was not able to process unemployment benefit claims using its historical processes. While the Commission tried to process claims quickly, outdated technology and limited staffing resulted in a significant number of errors in benefit payments. The Commission did not detect many of these errors until after it issued payments, and the Commission did not have the systems or processes in place to record overpayments to recoup these funds.