State & Local Reports

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business‐type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the State of Hawaii (the State) as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the State’s basic financial statements and have issued our report thereon dated December 30, 2020.

What Was Performed? A financial statement audit was performed to review the University of Delaware’sactions for managing and spending state funds for fiscal year 2020.Why This Engagement? In January 2019, under new leadership, the Office of the State Auditor thoroughlyreviewed Delaware Code. Upon review, it was revealed that the Office of the State Auditor was lacking inparticipation in jointly selecting an audit firm with the University of Delaware to perform their financialreport.This engagement was performed in accordance with 29 Del. C. §2906(h) and 14 Del. C. § 5109. It requiresa separate audit to be conducted for the use of state funds. The Code permits joint section of the auditingfirm with input from the State Auditor’s Office and the University of Delaware.What Was Found? The financial statements were presented fairly.We found that $111.2 million of the $125.3 million of state funds was spent on payroll and benefits. Basedon the samples tested, the majority of the payroll amounts tested were comingled.The General Assembly has spelled it out in the University’s charter at 14 Del. C. §5109 that if theUniversity commingles funds from a state appropriation with other funds, the audit of state appropriatedfunds may include the commingled nonstate funds. § 5109 Audit of accounts.27 Del. Laws, c. 117, § 5; Code 1915, § 2337; 32 Del. Laws, c. 166, § 1; Code 1935, § 2779; 14 Del. C.1953, § 5109; 54 Del. Laws, c. 256, § 2.;It also states” (e) This section shall not affect § 5109 of Title 14 which shall remain in full force andeffect; however, any other provision which stands in conflict with this section shall be null and void.”

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business‐type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the State of Hawaii (the State) as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the State’s basic financial statements and have issued our report thereon dated December 30, 2020.

What Was Performed? A financial statement audit of the State of Delaware 401 (a) Match Plan Financial Statements for Fiscal Years Ended December 31, 2019 and 2018 was performed.Why This Engagement? The 401 (a) Match Plan is a voluntary retirement program available to most State of Delaware employees including employees of the Legislature, Judicial, and Higher Education Institutions.This engagement was performed in accordance with 29 Del. C. §2906 and §6058.Delaware Code Title 29, Part V, Chapter 60A sets forth the requirements for deferred compensation programs for public officers and employees of the State of Delaware. The purpose of Chapter 60A is to create a vehicle through which all employees of the State may, on a voluntary basis, provide for additional retirement income security

The Office of Inspector General (OIG) conducted an audit of the development and evaluation of the City’s Capital Improvement Program (CIP), a five-year plan for infrastructure spending. Our objective was to determine if the City develops and evaluates its CIP in accordance with leading practices outlined in the United States Government Accountability Office’s (GAO) Executive Guide: Leading Practices in Capital Decision-Making. OIG concluded that the City’s CIP development and evaluation process largely follows leading practices for development but does not consistently evaluate goal achievement using performance measures or incorporate lessons learned from completed projects into future capital decision-making. We recommended that the Office of Budget and Management (OBM) define Citywide standards and increase transparency.

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

State management is responsible for designing, implementing and maintaining internal controls to ensure the financial statements are fairly presented, and to provide reasonable assurance regarding the reliability of financial reporting and to prevent and detect fraud. We identified deficiencies in internal controls at the Employment Security Department (ESD) that adversely affected the State’s ability to prevent and detect fraud.

What Was Performed? An Agreed Upon Procedure of the Office of the State Treasurer Bank Reconciliations for Quarter Ended December 31, 2018 was performed.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 ensure that the total amounts are accurate in both systems.Why This Engagement?According to the State of Delaware Constitution, Article II, Section 24, The State Treasurer shall settle his or her accounts annually with the General Assembly or a joint committee thereof, which shall be appointed at every ninety legislative day session. No person who has served in the office of the State Treasurer shall be eligible to a seat in either House of the General Assembly until he or she shall have made a final settlement of his or her accounts as treasurer and discharged the balance, if any, due thereon.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 Office of Inspector General (OIG) conducted an evaluation of the use of the affidavit override in disciplinary investigations of Chicago Police Department (CPD) members conducted by CPD’s Bureau of Internal Affairs, CPD District and Unit accountability sergeants, the Independent Police Review Authority (IPRA) and the Civilian Office of Police Accountability (COPA).The override process, if used as designed, is an effective tool for ensuring that police misconduct is meaningfully investigated, while also providing an opportunity for verification of the reliability of complaints for which CPD members may be investigated. Historically, however, the process has been underused and, perhaps, poorly understood.OIG’s evaluation produced the following findings:1. The majority of finalized disciplinary investigations were closed for lacking an affidavit;2. CPD, COPA, and IPRA (COPA’s predecessor agency) did not pursue affidavit overrides and improperly closed investigations for lacking an affidavit, including:a. Investigations closed for lacking an affidavit when there was objective, verifiable evidence which supported the allegations rendering them eligible for an override;b. Investigations closed following an insufficient preliminary investigation; andc. Instances in which the investigation was assigned a case status reserved for investigations closed for lacking an affidavit when the investigation was either exempt from the affidavit requirement, or another closure type was more appropriate.3. The investigating agencies often closed investigations associated with a civil lawsuit for lacking an affidavit, without regard to the possibility of the City potentially bearing financial costs for conduct which is never meaningfully investigated, the possibility that materials associated with a civil suit might provide sufficient basis for an override request, and that a civil suit may give rise to sworn statements that might be substituted for an otherwise required affidavit, or provide a reliable basis for obtaining an affidavit override.4. Investigations completed on the basis of an affidavit override result in Sustained allegations at a higher rate than do investigations completed via a signed affidavit or an exemption from the affidavit requirement.

Overall, we found that while OPH has processes to ensure data on the number of positive cases and deaths is not over-reported on its dashboard, laboratories did not always submit all COVID-19 test results to OPH, and the results they did provide were not always submitted in a timely manner.