State & Local Reports

What Was Performed? An examination of the Laurel 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 Laurel School District complied, in all material respects, with the criteria mentioned above. Laurel School District Authorized Positions Examination for 2018 through 2019 can be found on our website. 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 Lake Forest 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 Lake Forest School District complied, in all material respects, with the criteria mentioned above. Lake Forest School District Authorized Positions Examination for 2018 through 2019 can be found on our website. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.

What Was Performed? A financial statement audit of the State of Delaware Water Pollution Control Revolving Loan Fund for Fiscal Year 2021 was performed. Why This Engagement? This engagement was conducted in accordance with 29 Del. C. §2906. The State Auditor’s Office conducts post-audits of all financial transactions of state agencies. The Fund, commonly known as the Clean Water State Revolving Fund, was created by the Delaware Legislature in 1990. The Fund provides low-interest loans and grants to municipalities, private organizations, nonprofit organizations and private individuals for projects that will improve water quality. What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1 The State of Delaware Water Pollution Control Revolving Loan Fund financial statement audit for Fiscal Year 2021 can be found on our website. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.

What Was Performed? A financial statement audit of the State of Delaware Drinking Water Revolving Loan Fund for Fiscal Year 2021 was performed. Why This Engagement? This engagement was conducted in accordance with 29 Del. C. §2906. The State Auditor’s Office conducts post-audits of all financial transactions of state agencies. The Drinking Water State Revolving Fund (DWSRF) was established in 1996 and provides financial assistance to eligible public water systems in Delaware for the planning, design and construction of drinking water facilities, as well as loans for land acquisition for source water protection purposes. The Drinking Water State Revolving Fund is funded through federal grants, but the Safe Water Drinking Act requires the State of Delaware (the State) to provide matching funds equal to 20% of federal funds received. The Fund is jointly administered by the Department of Natural Resources and Environmental Control (DNREC) and the State of Delaware Department of Health and Social Services (DHSS). What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1 The State of Delaware Water Pollution Control Revolving Loan Fund financial statement audit for Fiscal Year 2021 can be found on our website. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov. 1 An unmodified opinion is sometimes referred to as a “clean” opinion. It is one in which the auditor expresses an opinion that the financial statements present fairly, in all material respects, an entity’s financial position, results of operations and cash flows in conformity with generally accepted accounting principles.

The investigation determined that Building Official John Travers, the city employee in charge of BSD and all building permitting within the city, engaged in misconduct1 when he knowingly sanctioned unpermitted construction on a project to build a 12-story condominium building and then, after BSD staff issued a stop-work order for performing work without a permit, he issued the project a sham permit that enabled construction to continue without necessary plans reviews—most notably, for fire safety.

What Was Performed? An examination of the Colonial 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 Colonial School District complied, in all material respects, with the criteria mentioned above. Colonial School District Authorized Positions Examination for 2018 through 2019 can be found on our website. 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 Delmar 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 Delmar School District complied, in all material respects, with the criteria mentioned above. Delmar School District Authorized Positions Examination for 2018 through 2019 can be found on our website. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.

The Broward Office of the Inspector General (OIG) has concluded its review into Broward County’s expenditure of the funds that it received from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The OIG conducted this review to independently monitor the administration of the CARES Act funding that the United States Department of the Treasury (Treasury) allocated to Broward County through the Coronavirus Relief Fund (CRF).