State & Local Reports

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.

What Was Performed? A financial statement audit of the State of Delaware 401(a)Match Plan for Calendar Years Ended December 31, 2019 and 2020.WhyThis Engagement? This engagement was conducted in accordance with 29 Del. C. §§2906, 6058 and 2722.The 401(a) Match Plan voluntary retirement program is available to most state employees,including employees of the General Assembly, the judicial branch and higher educationinstitutions. This plan allows employees to create additional retirement income security.As of December 31, 2020, the 401(a) Match Plan had approximately 9,000 participants and anet position of about $25 million.What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1The 401(a) Match Plan Annual Report 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, pleasecontact State Auditor Kathleen K. McGuiness at Kathleen.Mcguiness@delaware.gov.

What Was Performed? A financial statement audit of the Delaware HealthInformation Network for fiscal years ended June 30, 2019 and 2020.WhyThis Engagement? This engagement was performed in accordance with 16 Del. C. §10303(a)(18) and 29 Del. C. § 2906.The Delaware Health Information Network (DHIN) was created by the General Assembly in1997 as a public-private partnership to benefit all Delawareans. DHIN became a publicinstrumentality of the state in 2011.DHIN is the sole corporate member of the Delaware Center for Health Innovation Inc.(DCHI), a charitable nonstock corporation incorporated in 2014. DCHI was created tofurther the efforts of the Delaware Health Care Commission (DHCC). The goal of DHIN is toadvance the creation of a statewide health information network and to address Delaware’sneeds for timely, reliable and relevant healthcare information. DHIN’s major operation is thedesign and implementation of an integrated statewide health system.DHIN’s activities are financed and operated as an enterprise fund in such a way that costsand expenses of providing services are primarily recovered through user charges. DHIN’snet position decreased 3 percent in FY19 and increased 19 percent in FY20. Operatingexpenses exceeded operating revenue both years.DHIN revenue included results delivery revenue from related parties, community healthrecord fees and professional service income. DHIN’s operating revenue increased 14 percentin FY19 and decreased 10 percent in FY20. Those fluctuations were related to DHIN’sservices to DHCC, which supports the development of Delaware’s Health Care ClaimsDatabase (HCCD). DHCC funded these costs through a $2 million State Innovation Modelgrant.DHIN was also approved for a $505,567 federal Paycheck Protection Program (PPP) loan inMay 2020 amid changing federal guidance regarding which entities qualified for such loans.At DHIN’s request, the federal government waived the loan repayment in December 2020.DHIN expected to use these funds to support employee salaries in FY21; however, our officehas not yet audited DHIN’s FY21 statements to confirm the use of that money.What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1The Delaware Health Information Network Financial Statement Audit for Fiscal Years endedJune 30, 2019 and 2020, can be found on auditor.delaware.gov.For any questions regarding the attached report, please contact State Auditor Kathleen K.McGuiness at Kathleen.Mcguiness@delaware.gov.

Why This Report? This financial statement audit was performed in accordance with 29 Del. C. § 2906and 3 Del C. §§ 904(a)(8) and 904(a)(9).The Department of Agriculture manages Delaware’s Agricultural Lands (Aglands) Preservation Program.This program, established in 1991, allows landowners to voluntarily preserve their farms through a twophaseprocess. There are 490,000 acres of farms, which comprise 39% of the land area in Delaware.Delaware’s farmland preservation program has two major components: Agricultural PreservationDistricts and Agricultural Conservation Easements.Preservation Districts are voluntary agreements where landowners agree to continue to only use their landonly for agriculture for at least 10 years. Agricultural easements are purchases of development rights bythe foundation, placing a permanent agricultural conservation easement on the property. Landownersmust enroll their farm into a Preservation District before they can sell an easement.In FY21, the Aglands program received $5 million from the state Bond Bill and $48,621 from the state’soperating budget.What Was Found? It is my pleasure to report this audit contained an unmodified opinion.1The audited financial statements of Delaware Agricultural Lands Preservation Foundation for FiscalYears 2020 and 2021 can be found on our website auditor.delaware.gov.