State & Local Reports

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.

What Was Performed? A financial statement audit of the 529 Delaware Qualified Tuition Savings Plan for Calendar Years ended December 31, 2019 and 2020.Why This Engagement? This engagement was conducted in accordance with 29 Del. C. §§ 2906 and 2722. The Delaware Qualified Tuition Savings Plan, founded in 1998 through legislation, is a 529 college investment plan that offers federal and state tax benefits while saving for a child’s education. The funds can be used for qualified education expenses of designated beneficiaries.As of December 31, 2020, the Delaware Qualified Tuition Savings Plan had approximately 5,300 participants and a net position of about $730 million.What Was Found? It is my pleasure to report this audit contained an unmodified opinion. The Delaware Qualified Tuition Savings Plan Financial Statement Audit for Calendar Years ended December 31, 2019 and 2020, can be found here. Please do not reply to this email. 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 Deferred Compensation 457(b) Plan for Calendar Years ended December 31, 2019 and 2020.Why This Engagement? This engagement was conducted in accordance with 29 Del. C. §§ 2906, 6058 and 2722.The 457(b) Plan was established in 1971 and is available to most State of Delaware employees. This plan provides supplemental retirement income for state employees in addition to what they may receive through the state’s pension program and through the Social Security Administration.As of December 31, 2020, the Delaware Deferred Compensation 457(b) Plan had approximately 16,600 active participants and a net position of about $841 million.What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1The 457(b) Plan Financial Statement Audit for Calendar Years ended December 31, 2019 and 2020, can be found here.Please do not reply to this email. For any questions regarding the attached report, please contact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.