Latest news with #LydiaE.York
Yahoo
4 days ago
- Business
- Yahoo
Smyrna lacking sufficient financial reporting, governance: State auditor report
A state audit has uncovered serious deficiencies in the Town of Smyrna's financial oversight and internal controls, raising concerns about how public funds are managed and monitored. Conducted by State Auditor Lydia E. York, the 2025 performance audit examined town operations between 2022 and 2023. The report identified deficiencies in Smyrna's governance, including the absence of formal bank reconciliation procedures, poor tracking of capital projects and inadequate monitoring of federal relief funds. The problems are compounded by turnover in key management and accounting roles, the report stated. One major concern identified in the report was the town's inability to provide records detailing the status or funding sources of its capital projects, flagging Smyrna's management of more than $6 million in American Rescue Plan Act funds as particularly concerning. The report noted auditors found insufficient documentation for tracking spending, project progress and a lack of processes to monitor the use of ARPA money. FOR SUBSCRIBERS: Upcoming affordable housing developments in Delaware's lower counties The audit's other key findings include: Financial systems: The town continues to operate two separate accounting software systems, despite planning a transition to a unified platform in 2022. Procurement: The town failed to follow its procurement policy consistently due to insufficient oversight and monitoring. Policy gaps: A lack of comprehensive policy and procedures manual to guide governance and operations, contributing to poor communication between the Town Council and Town manager. Budgeting practices: No established process exists for management to review or approve budget-to-actual financial comparisons. The report findings concluded that these lapses increase the risk of errors and potential fraud. It also emphasized the need for Smyrna to implement corrective actions to improve internal controls, transparency and overall financial governance. Smyrna operates under a council–manager form of government. The auditor's report also included a formal response from Town Manager Torrie M. James. In the report, James stated that many of the audit's concerns are either being addressed or have already been resolved. In addition, the town posted a statement to its website providing further context, emphasizing that the audit was initiated at the request of the Town Council. The statement attributes gaps in internal controls to high turnover in key roles, including the Town Manager and Finance Director, over the past several years. That instability, the statement says, contributed to the weaknesses in financial procedures cited in the audit. 'The audit findings confirm what the current leadership team observed upon stepping into their roles: the Town lacked established written policies, consistent oversight procedures and internal checks and balances across several departments,' the statement reads. It says the lack of documented procedures and oversight created operational risks but emphasizes that no misuse of funds was found. The town asserts that a new leadership team, installed in March 2024, is committed to accountability and transparency in its effort to rebuild its operational foundation and restore public trust in its management. The auditor's report acknowledged Smyrna's growth, with the population rising to over 13,200 residents, a 3.4% increase. It concluded that this growth, combined with weak internal controls and inconsistent financial procedures, created challenges for transparency and effective management. Auditors recommended the town institute stronger systems of oversight, especially as demand for services continues to rise. The full report can be downloaded from the state auditor's website. You can contact staff reporter Anitra Johnson at ajohnson@ This article originally appeared on Delaware News Journal: Smyrna audit report details gaps in procedures, ARPA fund tracking
Yahoo
14-04-2025
- Health
- Yahoo
Audit finds Delaware is mostly compliant spending $4.2B in federal funds; Violations found
Delaware responsibly managed most of the more than $4.2 billion it received in federal funds during the 2024 fiscal year, according to a newly released audit from Delaware State Auditor Lydia E. York. The findings are part of the state's annual Delaware Uniform Guidance Single Audit. However, while the audit found widespread compliance, it also uncovered serious issues and violations in several major programs. The State Auditor's Office described the audit as a key tool for promoting transparency in how federal funds are used to deliver essential public services, especially in areas like public health, education and social welfare. The audit examined how state agencies handled federal funding streams across 17 major federal programs, including Medicaid, food assistance, disaster relief and public health efforts. Funding from these programs covers a broad range of areas, such as education, affordable housing, clean water, child care and pandemic recovery. Agencies included in the review were the Department of Labor, Department of Health and Social Services, Delaware Emergency Management Agency and the Office of the Governor. Some entities, such as the Delaware State Housing Authority and Delaware State University, were not part of this audit because they are subject to separate evaluations under the same federal guidelines. Despite overall compliance, auditors flagged material weaknesses, significant deficiencies and compliance-related issues in five key programs. The five programs with notable findings include: Supplemental Nutrition Assistance Program cluster Unemployment insurance Coronavirus state and local fiscal recovery funds Coronavirus capital projects fund Activities to support state, tribal, local and territorial health department response to public health or health care crises A total of nine programs were found to be out of compliance with federal audit standards, including major services such as the Children's Health Insurance Program, or CHIP, and Medicaid. The findings come as Congress debates possible budget cuts and legal battles continue over the future of federal aid programs. In a statement, York defended the federal funding supporting these programs, emphasizing that the required audit is meant to promote service improvement, rather than drastic reductions to vital public services and jobs. TBD: Medicaid funding battle threatens Delaware's health care system, local leaders warn One of the most critical findings involved the state's Unemployment Insurance program. Auditors were unable to verify how funds from the Unemployment Trust Fund were spent, due to a lack of documentation from the Delaware Department of Labor. As previously reported, former unemployment insurance administrator Michael Brittingham was found to have embezzled more than $181,000 from the trust fund, in 2023. He died by suicide shortly after an internal criminal investigation began in April of that year. Ahead of the audit's release, the Delaware Department of Labor acknowledged ongoing issues and pledged to take action to rebuild public trust. In a statement, Secretary of Labor Lakresha Moultrie announced the department is putting corrective measures in place to strengthen internal controls and ensure compliance with both state and federal standards. Officials also committed to providing regular public updates to maintain transparency throughout the improvement process. You can contact staff reporter Anitra Johnson at ajohnson@ This article originally appeared on Delaware News Journal: State audit report Delaware mostly compliant in managing federal funds
