COMMENT RESCUE: State Auditor Determines That The Finances Of The Division Of Unemployment Insurance Are…
UNAUDITABLE. Liberal Geek posted the following:
Auditor York is gettin’ stuff done. And WTF is going on at the Unemployment Insurance office at DOL. Sheesh.
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/03/DOLUI-Final-Report.pdf
WTF, indeed. As in:
This year, the Independent Auditors’ Report includes an unprecedented disclaimer of
opinion related to the Delaware Unemployment Compensation Fund (DUCF). To my
office’s knowledge, the Delaware ACFR has never before included a disclaimer opinion.
The DUCF is managed by the Delaware Department of Labor Division of Unemployment
Insurance (DOLUI).As of June 30, 2023, the DUCF reported cash assets of approximately $390
million consisting of contributions from the federal government and businesses of all sizes who
hire Delawareans. The firm hired to prepare the Independent Auditors’ Report,
CliftonLarsonAllen LLP (CLA), has determined that this fund is not auditable for fiscal year
2023. Simply put, DOLUI was unable to provide detailed accounting records of any kind to
allow CLA to reach an opinion. The enclosed special report provides details on AOA’s
inquiry into how this happened, and our suggestions for a path forward.There’s more:
Basis for Disclaimer of Opinions on Business-type Activities and
Unemployment Fund:The State’s 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. The State’s records do not permit us, nor is it practical to
extend or apply other auditing procedures, to obtain sufficient appropriate audit
evidence to conclude that the account balances and related cash flows in the
business-type activities and unemployment fund were free from material
misstatement. As a result of these matters we were unable to determine whether
further audit adjustments may have been necessary in respect to the
unemployment fund account balances, and the elements making up the statement
of activities and cash flows.
Hmmm, let’s see who is Delaware’s Director for the Division Of Unemployment Insurance…holy shit. It’s former state legislator Darryl Scott. He was there in 2021 when the problems were first brought to the Division’s attention. Didn’t do shit about them. He’s still there now. Yo, Carney, this is on you. Aren’t you the ‘budget-smoothing’ guy who allegedly keeps a stranglehold on the budgetary process? What the fuck are you doing about this?
Hey, at least we’ve finally got a State Auditor who holds public agencies accountable.
Reading further into the report it gets worse. They hired three separate outside accounting firms to try to piece the accounting records together and they were unable to do it. And in January when Auditor York’s office visited, they were blown off by the UI folks. Maybe someone in finance can comment on what this will mean for the bond rating.
I don’t see any in Darryl Scott’s bio that hints at wholesale incompetence. Is this a case of generic white guy fails upward?
DARRYL M. SCOTT
DIRECTOR DIVISION OF UNEMPLOYMENT INSURANCE / DEPARTMENT OF LABOR, STATE OF DELAWARE
Darryl Scott has served since March 2019, as the Director of the Delaware Division of Unemployment Insurance. Prior to that role, he was a Director, Global Account Operations and Account Management for Sitel, a global provider of business process management services. In that role, Darryl directed operations of more than 1,000 associates providing customer engagement services.
https://leadershipdelaware.org/teams/darryl-m-scott/
I don’t think so. I was genuinely surprised. He was a classic Markell rep–good on social issues, a big supporter of corporate education. Pretty sure he even has a RODEL connection.
Troublesome considering the only thing carney can say about his 8 years is that government was run somewhat effectively and competently. And that the state didn’t fall into the ocean. I can’t imagine this is the only part of government with these problems.
“And that the state didn’t fall into the ocean.”
https://www.wdel.com/news/beach-breach-in-sussex-county/article_75b9ce82-eb85-11ee-a321-6b405e35a1aa.html
…on his watch.
Speaking of Markell, guess who else flunked their audit:
Apparently this has been an ongoing problem since 2022. Here is link takes you to WHYY providing some additional information:
https://whyy.org/articles/delaware-auditor-unauditable-unemployment-fund/
Actually 2020:
“The issues with the management of the trust fund have persisted since 2020 but became acute in the past few months. Audits dating back to 2020 found “significant deficiencies in internal controls.”
BTW, Bleeping Geisenberger:
“Finance director Rick Geisenberger said the state knows the amount of money in the trust fund because it gets a report from the U.S. Treasury. He rebuffed criticism in the report aimed at one of his divisions.
“She’s an independently elected official, and she can say whatever she wishes to say,” he said. “I believe the division of accounting did exactly what it’s mandated to do.”
I don’t care WHAT you believe. Bottom line: You can’t prove it.
Arrogance personified.
“ I don’t care WHAT you believe. Bottom line: You can’t prove it.”
Oh so is Geisenberger advising BHL on strategy too? Seems familiar. Another best in class Carney appointee.
I hope Meyer cleans house of all of these people that really should have stopped serving in government a decade or more ago.
Rick’s been around since Carper. As have, come to think of it, most of Carney’s top people.
Which is why BHL is running. They want to keep those jobs.
BHL will be the status quo.