State & Local Reports

What Was Performed? The Auditor of Accounts (OAOA) performed an Agreed-Upon Procedures engagement on bank reconciliations prepared by Office of the State Treasurer (OST) for the Quarter Ended September 30, 2020. Why This Engagement? The Auditor of Accounts is mandated to arrange this engagement in accordance with 29 Del. C. §2906(b) to determine that the books and records maintained by the office of the Secretary of Finance are kept in accordance with generally accepted accounting principles and are reconciled with the various bank accounts. The Office of Auditor of Accounts reviewed the bank reconciliation produced by the Office of the State Treasurer to ensure the reconciliations are accurately stated. Agreed-Upon Procedures: The OAOA performed specific procedures agreed to be appropriate for the purpose of representing those records maintained by the office of the Secretary of Finance are kept in accordance with generally accepted accounting principles and are reconciled with the various bank accounts. What Was Found? The General Fund/Special Fund cash balance of $3,854.2 million noted in the Department of Finance’s monthly Financial Report, as of September 30, 2020, did not agree to thecash total of $3,850.3 million recorded in First State Financials for a difference of $3.9 million. This difference was reported to OST for follow up. The Agreed Upon Procedures report on the OST bank reconciliations for quarter ended September 30, 2020, can be found on our website: click here. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov

What Was Performed? An examination of the Capital School District’s compliance with the Authorized Position requirements set forth in the Delaware Code, Delaware Law (formerly, 149th General Assembly; Senate Bill No. 235 (SB235)), and the State of Delaware Budget and Accounting Policy Manual (BAM).Why This Engagement? The State Auditor performed an examination to ensure Fiscal Year 2019 Authorized Positions were not exceeded by comparing the number of authorized positions versus the number of actual positions a school district employed. In accordance with 14 Del. C. §1504, the Office of Auditor of Accounts is directed to examine the number of authorized positions versus the number of actual positions a district has employed as part of the regular, annual audit review for all public-school districts that commence on or after July 1, 1991.During Fiscal Year 2019, the State budgeted approximately $999 million to cover the State’s share of salaries and benefits for school district authorized positions. School District personnel costs comprise 23% of the State’s budget. In March 2020, the Governor of the state of Delaware declared a state of emergency in response to the spread of COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021, including closures of school districts. Because of the hurdles school districts faced in relation to teaching, remote learning, nutrition and emotional support to students, State Auditor McGuiness honored the requests of school districts to delay this engagement. This accommodation not only fulfilled the needs of school districts but ensured the integrity of the engagement. What Was Found? It is my pleasure to report Capital School District complied, in all material respects, with the criteria mentioned above. Capital School District Authorized Positions Examination for 2018 through 2019 can be found on our website: click here. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness atKathleen.Mcguiness@delaware.gov.

What Was Performed? An examination of the Polytech School District’s compliance with the Authorized Position requirements set forth in the Delaware Code, Delaware Law (formerly, 149th General Assembly; Senate Bill No. 235 (SB235)), and the State of Delaware Budget and Accounting Policy Manual (BAM).Why This Engagement? The State Auditor performed an examination to ensure Fiscal Year 2019 Authorized Positions were not exceeded by comparing the number of authorized positions versus the number of actual positions a school district employed. In accordance with 14 Del. C. §1504, the Office of Auditor of Accounts is directed to examine the number of authorized positions versus the number of actual positions a district has employed as part of the regular, annual audit review for all public-school districts that commence on or after July 1, 1991.During Fiscal Year 2019, the State budgeted approximately $999 million to cover the State’s share of salaries and benefits for school district authorized positions. School District personnel costs comprise 23% of the State’s budget. In March 2020, the Governor of the state of Delaware declared a state of emergency in response to the spread of COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021, including closures of school districts. Because of the hurdles school districts faced in relation to teaching, remote learning, nutrition and emotional support to students, State Auditor McGuiness honored the requests of school districts to delay this engagement. This accommodation not only fulfilled the needs of school districts but ensured the integrity of the engagement. What Was Found? It is my pleasure to report Polytech School District complied, in all material respects, with the criteria mentioned above. Polytech School District Authorized Positions Examination for 2018 through 2019 can be found on our website: click here. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness atKathleen.Mcguiness@delaware.gov.

We have conducted the Statewide Single Audit of the State of Connecticut for the fiscal year ended June 30, 2021. Among other findings, this report identifies that Connecticut nursing home residents and staff for COVID-19, the state Department of Public Health did not track whether testing providers were also collecting insurance payments that would need to be remitted to the state

We have conducted the Statewide Single Audit of the State of Connecticut for the fiscal year ended June 30, 2021. Among other findings, this report identifies that Connecticut nursing home residents and staff for COVID-19, the state Department of Public Health did not track whether testing providers were also collecting insurance payments that would need to be remitted to the state

What Was Performed? A performance audit of the design and operation of Caesar Rodney School District’s internal controls over Local Funds and compliance with the requirements of the Delaware Code, State of Delaware Administrative Code, State of Delaware Budget and Accounting Policy Manual, School District Accounting Policies, and the School District Budget.Why This Engagement? The State Auditor is authorized under 29 Del. C., §2906 to conduct post-audits of local school district tax funds budgets and expenditures. Delaware Code provides for school districts and vocational-technical school districts to levy and collect additional taxes for school purposes upon the assessed value of real estate in the district with some exceptions. For purposes of this report, real estate taxes levied for school purposes are referred to as “Local Funds.” The school districts’ authority to levy taxes is governed by 14 Del. C., c. 19 for nonvocational districts and by 14 Del. C., c. 26 for vocational districts.There were four objectives established for the performance audit of the school district:1. School district internal controls over the expenditure of Local Funds were designed and operated based on requirements in the Delaware Code, State of Delaware Administrative Code, State of Delaware Budget and Accounting Policy Manual, School District Accounting Policies, and the School District Budget.2. The school district’s internal controls over the receipt of Local Funds were designed and operated in accordance with the requirements.3. The school district’s real estate taxes were approved and calculated in accordance with the requirements.4. The school district’s tuition tax funds were calculated and spent in accordance with the requirements.In March 2020, the Governor of the State of Delaware declared a state of emergency to mitigate the spread of COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021 and included temporary school district closures. In response to the challenges faced by school districts relatedto teaching, remote learning, nutrition and emotional support to students, State Auditor McGuiness honored requests from school districts to delay this engagement. This accommodation not only fulfilled the needs of school districts but ensured the integrity of the engagement.What Was Found? It is my pleasure to report that no findings were found during this performance audit.The Caesar Rodney School District Local Funds Performance Audit for Fiscal Year Ended June 30, 2021 can be found here.For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness atKathleen.Mcguiness@delaware.gov.

What Was Performed? A performance audit of the design and operation of Milford School District’s internal controls over Local Funds and compliance with the requirements of the Delaware Code, State of Delaware Administrative Code, State of Delaware Budget and Accounting Policy Manual, School District Accounting Policies, and the School District Budget.Why This Engagement? The State Auditor is authorized under 29 Del. C., §2906 to conduct post-audits of local school district tax funds budgets and expenditures. Delaware Code provides for school districts and vocational-technical school districts to levy and collect additional taxes for school purposes upon the assessed value of real estate in the district with some exceptions. For purposes of this report, real estate taxes levied for school purposes are referred to as “Local Funds.” The school districts’ authority to levy taxes is governed by 14 Del. C., c. 19 for nonvocational districts and by 14 Del. C., c. 26 for vocational districts.There were four objectives established for the performance audit of the school district:1. School district internal controls over the expenditure of Local Funds were designed and operated based on requirements in the Delaware Code, State of Delaware Administrative Code, State of Delaware Budget and Accounting Policy Manual, School District Accounting Policies, and the School District Budget.2. The school district’s internal controls over the receipt of Local Funds were designed and operated in accordance with the requirements.3. The school district’s real estate taxes were approved and calculated in accordance with the requirements.4. The school’s district’s tuition tax funds were calculated and spent in accordance with the requirements.In March 2020, the Governor of the State of Delaware declared a state of emergency to mitigate the spread of COVID-19. Precautionary measures to slow the spread of the virus continued throughout 2021 and included temporary school district closures. In response to the challenges faced by school districts relatedto teaching, remote learning, nutrition and emotional support to students, State Auditor McGuiness honored requests from school districts to delay this engagement. This accommodation not only fulfilled the needs of school districts but ensured the integrity of the engagement.What Was Found? It is my pleasure to report that no findings were found during this performance audit.The Milford School District Local Funds Performance Audit for Fiscal Year Ended June 30, 2021 can be found here.For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness atKathleen.Mcguiness@delaware.gov.

What Was Performed? A special report reviewing the Auditor’s Office Fraud Hotline available to the public to provide tips on suspected fraud, waste, abuse, or other concerns related to the economy and efficiency of state government.WhyThis Engagement? In accordance with 29 Del. C. §2909, the State Auditor shall file written reports covering the Auditor’s postaudits with the state agency concerned, the Governor, the General Assembly, the Attorney General and the Director of the Office of Management and Budget; and, if the Auditor deems necessary, the Auditor may present special reports to the General Assembly for consideration and action.The audit reports shall set forth: (1) Whether all expenditures have been for the purpose authorized in the appropriations therefor; (2) Whether all receipts have been accounted for and paid into the State Treasury as required by law; (3) All illegal and unbusinesslike practices; (4) Recommendations for greater simplicity, accuracy, efficiency and economy; and (5) Such data, information and recommendations as the Auditor of Accounts may deem advisable and necessary.This special report reviews the Auditor’s Office’s Fraud Hotline and improvements made over recent years to improve accessibility for tipsters, implement data analytics, and continue the Auditor’s Office’s commitment to the continual improvement process in state government.What Was Found?• Increasing Accessibility Yields More Tips: The Auditor’s addition of the web-based reporting on the Fraud Hotline in recent years increased the number of tips.• Improving the Auditor’s Office Communication: Efforts to communicate and educate the public about the Fraud Hotline led to an increase in fraud reporting. • 2021 Was a Big Year for Fraud Reporting: Fraud tips tend to mirror current events, and popular issues of debate in 2021 including criminal justice related issues and concerns over Unemployment Insurance were frequent subjects of reports in 2021. • State Agencies Subject to the Most Hotline Reports: The Dept. of Justice and the Dept. of Labor are the two highest reported agencies via the Fraud Hotline. • Fraud Hotline Continues to be a Valuable Resource: The Fraud Hotline improves policy and procedures; deters fraud, waste, and abuse; boosts efficiency and effectiveness; uses report data to identify trends and address risks; strengthens internal controls; informs the audit plan; and makes actionable recommendations to management. The Special Report, Auditor’s Office Fraud Hotline Summary Report of Fiscal Year 2022, can be found here.For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness atKathleen.McGuiness@delaware.gov