COMMENT RESCUE: State Auditor Determines That The Finances Of The Division Of Unemployment Insurance Are…

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.