State & Local Reports

The Cuyahoga County Department of Internal Auditing (DIA) conducted an audit of programs within the Department of Children and Family Services (DCFS) for the period of January 1, 2020 through December 31, 2020. The main objective of the audit was to identify higher risk programs within DCFS and to assess the internal controls relative to the mitigation of fraud and compliance with program guidelines. After obtaining an appropriate understanding of the processes and risk, DIA determined that processes around the establishment of Foster Care and Adoption subsidies contained the highest risk. Audit procedures disclosed internal control weaknesses related to documenting OAC and/or Internal Policy compliance regarding certification, qualification, and reimbursement of Foster Care and Adoption subsidies and services. In addition, audit procedures identified an opportunity for increased efficiency relative to the duplication of efforts for data input requirements within two applications. Recommendations made by DIA included that DCFS update systems utilized to either have payments processed in case management system or make updates to current systems to increase efficiency and add controls to update fields. Also, DIA recommended that DCFS update the Federal Medical Assistance Percentages it uses to calculate Adoption subsidy payments, and to maintain all Add-On and Level of Care documentation.

The audit examined whether DOB whether DOB ensured that its employees had the cybersecurity awareness training required by the Executive Office of Technology Services and Security (EOTSS) as well as oversight over foreign transmittals, and whether the DOB collected, acted on and shared information about licensee holders appropriately. The audit examined the period of July 1, 2017 through June 30, 2019.

What Was Performed? A financial statement audit of the Diamond State Port Corporation forthe fiscal year ended June 30, 2021, was performed.Diamond State Port Corporation is a separate entity that is reported as part of the State’s overall financialstatements. The corporation serves the state by operating the Port of Wilmington, which is a full-servicedeep-water port and terminal.Why This Engagement? This engagement was performed in accordancewith 29 Del. C. § 8786, whichrequires thatthe books and accounts oftheDiamond State Port Corporation be audited annually by anindependent certified public accounting firm that is mutually agreed upon by the State Auditor and theSecretary of State.What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1The Diamond State Port Corporation Financial Statement Audit for fiscal year ended June 30, 2021, can befound on our website auditor.delaware.gov

OIG reviewed Chicago Police Department (CPD) reports of Chicago Fire Department (CFD) badges purportedly lost or stolen from January 1, 2015, through June 30, 2020. Overall, 340 CFD members reported their badges stolen or lost to CPD during this period. Approximately, 79.7% of the reports––271 of the total 340––came from retiring CFD members. Approximately, 22.6% of all retiring members who reported their badges stolen or missing to CPD did so within 6 months prior to retirement.This pattern of a large number of badges reported lost or stolen, as CFD members retire, suggests a number of possible causes, including: 1) that CFD members are committing theft of City property (badges), filing false police reports to cover up the theft, and thereby enabling themselves to retain their CFD badges upon retirement (which since 2018 they are able to replace at a cost lower than the cost of purchasing a retirement badge), or 2) that CFD members may be misplacing their badges and not reporting them missing or stolen until it is time to return the badges to CFD at retirement. Both scenarios constitute control and misconduct concerns. Theft of City property and filing false police reports are crimes. Failing to immediately report a missing or stolen CFD badge is a violation of CFD general orders and the City of Chicago Personnel Rules.Failure to properly account for the CFD badges is a control risk concern. CFD badges designate the holder as having official authority conferred by the City. The purpose of the badge ends when the holder leaves CFD or retires. The current retirement process allows individuals to hold onto official CFD badges through false and fraudulent pretenses, permitting former CFD members to retain these indicia of authority even after leaving City service. Further, CFD has no control over what happens to these “lost” or “stolen” badges, including whether the former CFD member gives the badge to another person.

The Department of Internal Auditing (DIA) has conducted the Jobs and Family Services (JFS) Benefits Compliance Review for the period of January 1, 2019 through January 6, 2021. The main objective was to assess progress on management action plans developed in response to findings and recommendations by federal and state audits. Also, that the progress is sufficiently monitored by management and supported by sufficient documented evidence. Audit procedures disclosed no findings or areas of concerns relative to appropriate progress on management action plans by Cuyahoga County Job and Family Services for audit reports received during the audit period. We commend Cuyahoga Job and Family Services for the establishment of and adherence to processes and procedures that ensure effective resolution of audit findings.

This audit examined whether the Green Communities Division ensured that municipalities applying for green community designation met all of the required criteria, submitted their required annual reports, grant funding distributed through DOER’s Green Communities Designation and Grant Program was used for its intended purposes. The audit examined the period of July 1, 2018 through June 30, 2020.

This report provides the results of our evaluation of the Louisiana Workforce Commission’s (LWC) Unemployment Insurance program (State UI) and federally funded COVID-19 pandemic-related unemployment assistance programs (Federal UI). The purpose of this report was to identify potential overpayments or improper unemployment benefit payments LWC made to claimants. Overall, we found that LWC made approximately $2.9 million in payments that potentially violated unemployment benefit program rules outlined in federal and/or state law, including payments to claimants enrolled in multiple programs at the same time, payments higher than the maximum benefit amount, and duplicate payments.