Delaware News

DE Auditor Issues Special Report on Unemployment Insurance

Auditor of Accounts | Auditor of Accounts Lydia York | News | Date Posted: Tuesday, March 26, 2024


Delaware Auditor of Accounts Seal

Delaware Auditor of Accounts Issues Special Report on Delaware Unemployment Compensation Fund

The special report follows the issuance of a disclaimer of opinion in the fiscal year 2023 Annual Comprehensive Financial Report.

Dover, DE – Delaware Auditor of Accounts Lydia E. York issued a special report on the Delaware Unemployment Compensation Fund (DUCF) today. The report summarizes the findings of a months-long inquiry by auditors at the Department of Labor Division of Unemployment Insurance that found significant deficiencies in internal accounting controls. These issues contributed to an unprecedented disclaimer of opinion in the Independent Auditor’s Report of the Delaware Annual Comprehensive Financial Report (ACFR) for fiscal year 2023.

“This report describes a specific occurrence of poor oversight and adherence to accepted accounting procedures. That leaves the State vulnerable to adverse consequences,” said Auditor York. “It is my hope that these findings lead to real corrective action, and an accounting for millions of dollars our State is a steward of that are meant for unemployment benefits.”

The DUCF is a fund managed by the Division of Unemployment Insurance containing employer and grant contributions to the unemployment insurance program. Thousands of Delaware employers contribute to this fund, which currently reported cash assets of around $390 million in the fiscal year 2023 ACFR. The ACFR independent auditor’s report includes findings that the “Department of Labor was unable to provide sufficient appropriate audit evidence for the balances and financial activity of the account balances of the unemployment fund.”

“I want to commend this office’s highly qualified non-partisan audit staff, who spent months investigating and putting together this report. Their hard work every day contributes to greater transparency and accountability across our State government,” said Auditor York. “I also want to thank Secretary Hubbard for her cooperation and access to Department of Labor personnel.”

Delaware Auditor of Accounts Lydia E. York is a public servant with decades of experience in accounting, finance, and the legal profession. In 2022, she became the first African American woman elected to executive office in Delaware history.

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For Immediate Release: March 26, 2024
Contact: Samuel Barry, Fiscal & Policy Analyst
(302) 382-0651, Samuel.Barry@delaware.gov

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DE Auditor Issues Special Report on Unemployment Insurance

Auditor of Accounts | Auditor of Accounts Lydia York | News | Date Posted: Tuesday, March 26, 2024


Delaware Auditor of Accounts Seal

Delaware Auditor of Accounts Issues Special Report on Delaware Unemployment Compensation Fund

The special report follows the issuance of a disclaimer of opinion in the fiscal year 2023 Annual Comprehensive Financial Report.

Dover, DE – Delaware Auditor of Accounts Lydia E. York issued a special report on the Delaware Unemployment Compensation Fund (DUCF) today. The report summarizes the findings of a months-long inquiry by auditors at the Department of Labor Division of Unemployment Insurance that found significant deficiencies in internal accounting controls. These issues contributed to an unprecedented disclaimer of opinion in the Independent Auditor’s Report of the Delaware Annual Comprehensive Financial Report (ACFR) for fiscal year 2023.

“This report describes a specific occurrence of poor oversight and adherence to accepted accounting procedures. That leaves the State vulnerable to adverse consequences,” said Auditor York. “It is my hope that these findings lead to real corrective action, and an accounting for millions of dollars our State is a steward of that are meant for unemployment benefits.”

The DUCF is a fund managed by the Division of Unemployment Insurance containing employer and grant contributions to the unemployment insurance program. Thousands of Delaware employers contribute to this fund, which currently reported cash assets of around $390 million in the fiscal year 2023 ACFR. The ACFR independent auditor’s report includes findings that the “Department of Labor was unable to provide sufficient appropriate audit evidence for the balances and financial activity of the account balances of the unemployment fund.”

“I want to commend this office’s highly qualified non-partisan audit staff, who spent months investigating and putting together this report. Their hard work every day contributes to greater transparency and accountability across our State government,” said Auditor York. “I also want to thank Secretary Hubbard for her cooperation and access to Department of Labor personnel.”

Delaware Auditor of Accounts Lydia E. York is a public servant with decades of experience in accounting, finance, and the legal profession. In 2022, she became the first African American woman elected to executive office in Delaware history.

# # #

For Immediate Release: March 26, 2024
Contact: Samuel Barry, Fiscal & Policy Analyst
(302) 382-0651, Samuel.Barry@delaware.gov

image_printPrint

Related Topics:  


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.