State Auditor, R. Thomas Wagner, Jr., has released the Fund to Combat Violent Crimes Agreed-Upon Procedures reports for the City of Delaware City, the Town of Cheswold, the Town of Felton, and the Town of Greenwood. Each municipality was reviewed for the State fiscal years ended June 30, 2014, 2015, and 2016.

This engagement was performed by the Office of Auditor of Accounts in accordance with 11 Del. C. §4101(h), 11 Del. C. c 84, and the Internal Operating Guidelines for the Fund to Combat Violent Crimes Law Enforcement Program.

Please read the full reports to gain an understanding of the procedures performed and conclusions reached.

If you have any questions, please contact R. Thomas Wagner, Jr., State Auditor, at 302-739-5055 or R.Thomas.Wagner@delaware.gov.

State Auditor, R. Thomas Wagner, Jr., has released the School District Authorized Tax Rate Agreed-Upon Procedures Report for Fiscal Years Ended June 30, 2015 and 2016.

The Office of Auditor of Accounts (AOA) performed procedures to determine whether Delaware school districts’ tax rates were adequately supported and properly authorized. The majority of our exceptions resulted from procedures performed on match tax rates. The exceptions identify school districts that collected a tax rate higher than the authorized amount, which is largely attributable to the minimal guidance regarding how a match tax rate should be calculated and the level of discretion afforded to school districts when calculating these match tax rates.

The engagement was performed by AOA in accordance with Government Auditing Standards, issued by the Comptroller General of the United States.

For the full results of School District Authorized Tax Rate Agreed-Upon Procedures Engagement, please see the published report.

If you have any questions, please contact R. Thomas Wagner, Jr., State Auditor, at 302-739-5055 or r.thomas.wagner@delaware.gov.

State Auditor, R. Thomas Wagner, Jr. has released the Annual Report of the Delaware College Investment Plan for the Calendar Year ended December 31, 2016.

The review was conducted by BDO under the direction of the Office of Auditor of Accounts in accordance with 29 Del. C. §2906.

This report is intended solely for the information and use of the Delaware Plans Management Board and is not intended to be, and should not be, used by anyone other than this specified party. However, this report is a matter of public record and its distribution is not limited. This report, as required by statute, was provided to the Office of the Governor, Office of the Controller General, Office of the Attorney General, and Office of Management and Budget.

For any questions regarding the report, please contact State Auditor, R. Thomas Wagner, Jr., CGFM, CICA, CFE, at 302-739-5055 or R.Thomas.Wagner@delaware.gov.

State Auditor R. Thomas Wagner, Jr.’s Office has released the Delaware Veterans Home Special Investigation Report. During the investigation, the Office of the Auditor of Accounts (AOA) learned that Delaware Veterans Home uses a complex variety of earnings codes as well as an excessive amount of manual adjustments for each employee each pay period due to overtime pay and shift differentials associated with the 24-hour facility. Overall, AOA found that Delaware Veterans Home appropriately calculated employee wages during the investigative period; however, AOA’s work did reveal minor variances.

For the full results of the special investigation, please see the published report.

If you have any questions, please contact R. Thomas Wagner, Jr., State Auditor, at 302-739-5055 or r.thomas.wagner@delaware.gov.

Dover, DE – State Auditor R. Thomas Wagner, Jr. today raised concerns regarding the ability of the Delaware Department of Health and Social Services Division of Social Services (DSS) and Division of Child Support Services (DCSS) to administer Delaware’s Temporary Assistance to Needy Families (TANF) block grant program. Specifically, Wagner took issue with a “material weakness” in meeting federal requirements concerning payments to individuals who fail to cooperate with child support requirements.

The results of an annual independent audit of the State’s finances for the year ended June 30, 2016, overseen by the Office of the Auditor of Accounts (AOA), determined that 25% of the TANF cases tested did not comply with federal grant monitoring requirements. The requirements are designed to identify and sanction TANF program beneficiaries who do not cooperate with the State in determining paternity, or in modifying or enforcing a child support order. The failure to comply was the result of lax internal controls, specifically a lack of communication, on the part of both DSS and DCSS, leading to overpayments to program recipients.

“The material weakness found in the way DSS and DCSS comply with the grant requirements could have been avoided if the appropriate internal controls had been in place,” said Wagner. “Yet, the failure to do so puts the State in a position where the Federal government could levy strong penalties resulting in a loss of funding.” Wagner continued.

Under Federal requirements, DSS failed to reduce or suspend TANF benefits for beneficiaries that were non-cooperative with child support. DCSS is responsible for identifying the non-compliant beneficiary and reporting the information to DSS. DSS is responsible for levying sanctions until compliance is met. The audit shows that DCSS and DSS failed to consistently meet these requirements. The failure to comply with Federal regulations could cost the State of Delaware program dollars needed to implement existing programs.

“DSS has reviewed these cases and is working with Audit and Recovery Management Services (ARMS) to recoup over payments,” said Wagner. “In addition, the sanctions required under TANF were applied to any cases identified by the auditors that remain open,” Wagner concluded.

Please direct any questions to John Fluharty at 302-857-3937.