Reports

In FY 2022-23, Wisconsin state agencies administered $19.8 billion in federal financial assistance, including $3.8 billion that was expended related to the public health emergency and that was separately identified in the State’s Schedule of Expenditures of Federal Awards. This audit focused on 22 federal programs that accounted for 61.2 percent of the federal financial assistance administered. We found that state agencies generally complied with federal requirements, and we provided an unmodified opinion on federal compliance for 16 of the programs we reviewed. However, we qualified our...

We provided unmodified opinions on the University of Wisconsin (UW) System’s financial statements as of and for the years ended June 30, 2023, and June 30, 2022. These financial statements account for the financial position and activity of UW System. We conducted this financial audit by auditing UW System’s financial statements in accordance with applicable government auditing standards, issuing our auditor’s opinions, reviewing internal controls, and issuing our auditor’s report on internal control and compliance. We also reviewed UW System program revenue balances as of June 30, 2023.

The Department of Administration prepares the Annual Comprehensive Financial Report (ACFR), which contains the financial statements of the State of Wisconsin prepared in accordance with generally accepted accounting principles (GAAP) prescribed by the Governmental Accounting Standards Board. The ACFR includes financial information on state funds, including the State’s General Fund, the Transportation Fund, the University of Wisconsin System, the Unemployment Reserve Fund, and the Wisconsin Retirement System. We provided unmodified opinions on the financial statements and related notes of the...

We have audited, in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the U.S. Comptroller General, the financial statements of the governmental activities, business-type activities, aggregate discretely presented component units, each major fund, and aggregate remaining fund information of the State of Arizona as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the State’s basic financial statements, and have...

As North Carolina’s Compulsory Attendance (Truancy) Law was not waived during the pandemic of school year or 2020-2021, the audit objectives were to determine whether six public school districts complied with the Truancy Law during the 2020-2021 school year. The objectives were to assess how many students were chronically absent during the 2020-2021 school year (and how many of this group promoted to the next grade or graduated), and whether the school districts ensured that student attendance data for the 2020-2021 school year was complete and accurate. The auditor found that the Department...

New York City is the largest municipality by population in both New York State and the United States. The City is also the main economic engine of the State, a powerhouse that sits at the center of one of the largest metropolitan economies in the world. While the COVID-19 pandemic initially reversed the City’s progress of the years prior to the pandemic, its economy has since rebounded. This reference document includes major demographic, economic and fiscal indicators that highlight New York City’s contribution to the State. Indicators are provided, where available, going back to 2017 and...

We found the division’s internal controls over the review and processing of unemployment insurance (UI) claims were adequate, and the division was in compliance with applicable laws and regulations. However, in making these determinations, we identified weaknesses in the division’s monitoring of the call center contract, marketing of the Shared Work Program (SWP), request for proposal of collection and disbursement services, and closing of nonmonetary adjudication cases. In addition, our analysis of the significant number of UI claims beginning March 2020 and its impact on the division’s...

The audit of the accompanying financial statements of the Unemployment Compensation Trust Fund of the State of Illinois, Department of Employment Security Department was performed by RSM US LLP as of and for the year ended June 30, 2022. Based on their audit, the auditors expressed a qualified opinion on the Department's Statement of Net Position and a disclaimer of opinion on the Department's Statements of Revenues, Expenses, and Changes in Net Position and Cash Flows. Among their other findings was material weakness and noncompliance regarding the failure to maintain accurate and complete...

In the State of Oklahoma Single Audit Report for the fiscal year ended June 30, 2021, the Oklahoma State Auditor concluded that Oklahoma has systemic issues regarding management and oversight of federal funds provided to the state. These issues resulted in, among other things, the Oklahoma State Auditor questioning $12.2 million in Coronavirus Aid, Relief, and Economic Security Act spending, $1.6 million in Emergency Rental Assistance spending, and $8.3 million in Governor's Emergency Education Relief Fund spending.

As part of our financial statements audit of the Unemployment Reserve Fund, which accounts for Wisconsin’s Unemployment Insurance program paid to eligible individuals, we provided an unmodified opinion on the Fund’s financial statements and related notes as of and for the years ended June 30, 2022, and June 30, 2021. We found the assets of the Reserve Fund exceeded liabilities at the close of fiscal year (FY) 2021-22 by almost $1.4 billion. Except for $19.2 million in certain federal allocations, the Fund’s net position, if positive, can be used only to pay unemployment benefits to eligible...

The objective of this audit was to determine whether the New York Department of Labor is providing appropriate and timely services to workers affected by closings and layoffs that are covered under the Worker Adjustment and Retaining Notification and is effectively overseeing employer compliance with the Act. We found several areas the Department could improve to better meet its obligations under the Act and ultimately the needs of dislocated workers. Specifically we found weakness in the Department's oversight of employer compliance with the advance notice requirements of the Act, among other...

OSA has conducted a performance audit of MassHealth’s payments for telehealth behavioral health services for the period January 1, 2020 through June 30, 2021. During this period, MassHealth paid approximately $96,464,816, for 1,306,414 claims, to its providers for telehealth behavioral health services to MassHealth members. The purpose of this audit was to determine whether MassHealth monitored telehealth practices for behavioral health services to ensure compliance with its All-Provider Bulletins.

The COVID-19 pandemic resulted in upheaval to the economy and government services. Ulster County needed to address the questions of people and organizations during the pandemic as it related to public health concerns. To address public questions and concerns, Ulster County established a COVID hotline. Despite allocating significant resources to promotion and widening the scope of the Service Center, it still receives few calls. The call volume does not seem to align with the staffing and additional resources being allocated to operate a separate unit of government. This downtime could...

The objective of our audit was to determine if the Department of Labor and Workforce Development (Department) maintained an adequate information technology service management level during the increase in claims processing related to the COVID-19 pandemic. We found that the Department provided a sufficient information technology service management level to claimants to meet the increased needs in the unemployment insurance claims processing environment, and we found no evidence that delays in the processing of initial claims or recertifications were caused by deficiencies in the information...

This Single Audit identifies federal funds spent by state agencies from July 1, 2020, to June 30, 2021. During this time, many state agencies were drawing down federal stimulus dollars from the Coronavirus Relief Fund. In this audit millions of questioned costs were discovered. Notable findings include that the Mississippi Department of Employment Security saw a 301 percent increase in known overpayments from the previous year and made at least $473 million in improper or fraudulent unemployment payments this year. This included unemployment payments to prisoners and people outside of...

The objective of this audit was to determine if COVID-19 vaccines that originated from the North Dakota Department of Health warehouse in Bismarck stored and handled according to Center for Disease Control and Prevention (CDC) Guidelines? We found instances where the COVID-19 vaccines originating from the state warehouse were not adequately stored or handled according to CDC guidelines.

We have conducted the Statewide Single Audit of the State of Connecticut for the fiscal year ended June 30, 2021. Among other findings, this report identifies that Connecticut nursing home residents and staff for COVID-19, the state Department of Public Health did not track whether testing providers were also collecting insurance payments that would need to be remitted to the state.

Through this report, we identified several state departments, including the Washington State Office of Management, Department of Commerce, and Department of Social and Health Services, that did not have adequate internal controls, nor comply with certain requirements, for Coronavirus Relief Funds

In this performance audit, we examined the reports Massachusetts Sheriffs' Association (MSA) collected from sheriffs’ offices, and we reviewed MSA’s policies and procedures as well as its budgetary language requirements. The audit found that MSA did not ensure the consistency and accuracy of cost-per-inmate reports and that MSA did not establish policies and procedures for coordinating and standardizing services and programs at the sheriffs’ offices.

The audit of the accompanying financial statements of the State of Illinois, Department of Employment Security Unemployment Compensation Trust Fund was performed by RSM US LLP for the year ended June 30, 2021. Based on their audit, the auditors expressed a disclaimer of opinion on the Department's Unemployment Compensation Trust Fund financial statements. The auditors identified three matters involving the Department's internal controls over financial reporting that they considered to be material weaknesses. Further, the auditors identified three noncompliance matters.

As a part of our audit of the State of Louisiana’s Annual Comprehensive Financial Report and our work related to the Single Audit of the State of Louisiana for the fiscal year ended June 30, 2021, we performed procedures at the Louisiana Workforce Commission (LWC) to provide assurances on financial information that is significant to the state’s Annual Comprehensive Financial Report; evaluate the effectiveness of LWC’s internal controls over financial reporting and compliance; and determine whether LWC complied with applicable laws and regulations. In addition, we determined whether management...

In FY 2020-21, state agencies administered $20.8 billion in federal financial assistance, including $6.6 billion that was expended related to the public health emergency and that was separately identified in the State’s Schedule of Expenditures of Federal Awards. Our audit focused on 24 federal programs that accounted for 82.3 percent of the federal financial assistance administered. We found that state agencies generally complied with federal requirements, and we provided an unmodified opinion on federal compliance for 22 of the programs we reviewed. However, we qualified our opinion on...

As a part of our audit of the Louisiana State University (LSU) and our work related to the Single Audit of the State of Louisiana for the fiscal year ended June 30, 2021, we performed procedures at the LSU and Related Campuses to provide assurances on financial information that is significant to the LSU's financial statements; evaluate the effectiveness of LSU and Related Campuses’ internal controls over financial reporting and compliance; and determine whether LSU and Related Campuses complied with applicable laws and regulations. In addition, we determined whether management has taken...

The Student Success Act provides an extra $1 billion of tax money a year for early childhood education and K-12 school improvement. It requires the Oregon Department of Education (ODE) to track district performance and work with districts to improve, building on other recent state and federal initiatives and bringing the state the closest it has been to meeting the funding recommendations of the Quality Education Model. This advisory report identifies five key risks we found that could undermine K-12 system improvement as the state implements the 2019 Student Success Act. The report draws on...

We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the State of Tennessee as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the State of Tennessee’s basic financial statements. The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the...

The objectives of this audit were to (1) assess the sufficiency of selected Unemployment Insurance Agency practices for worker onboarding and offboarding during the COVID-19 pandemic and (2) to provide information on the administrative funding available to the Unemployment Insurance Agency during the COVID-19 pandemic and other relevant data. We found that the practices were not sufficient.

During the COVID-19 pandemic, claims for unemployment insurance benefits increased significantly, and many claimants experienced lengthy delays in receiving payments. The unprecedented volume of claims made delays inevitable, but the Georgia Department of Labor’s (GDOL) claims management and customer service systems were also factors. GDOL should continue planned improvements to both.

The objective of this audit was to determine the timeliness of first unemployment benefit payments from the Department of Commerce's Division of Employment Security (DES) during the period of January 1, 2020, through March 31, 2021 and, if untimely, identify the causes of the untimely payments. We found that DES did not issue $438 million of first unemployment benefit payments timely during the period of January 1, 2020, through March 31, 2021.

During our audit, we identified internal control and compliance findings that we believe are either directly, or indirectly, related to a lack of resources available for processing and adjudicating unemployment claims with the onset of the COVID-19 public health emergency. To address the rapid rise in unemployment, the federal government provided additional federal funding to states and implemented several new unemployment-related benefits. The Commission struggled to adapt to these changes due to a lack of both staffing and technology resources. As a result, the Commission was not able to...

We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Commonwealth of Kentucky as of and for the fiscal year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Commonwealth of Kentucky’s basic financial statements. Nine findings relate to issues identified by auditors with Kentucky’s Office of Unemployment Insurance and the Unemployment Insurance system.

This report details the growth in Medicaid enrollment before and during the pandemic, as well as evaluating those enrollment changes in relation to the economy’s performance. The report also evaluates risks that could result from more enrollees remaining on Medicaid than projected, and offers recommendations for policy makers as we strive to effectively manage this essential program.

The Department of Taxation and Finance is responsible for administering more than 40 State and localities, including the sales and use tax. Provisions of State Tax impose a tax on sales of taxable personal property and certain services, with some exemptions and require vendors that makes these sales to register for a Certificate of Authority, collect the tax from customers, and remit the tax to the State. The COVID-19 pandemic has negatively impacted sales tax collections due to restrictions on businesses throughout 2020 and 2021. Collections have since begun to rebound, and, as of May 2021...

The Auditor’s Office follows up on audit recommendations to support county government’s accountability. The county implemented most of the Auditor’s recommendations from the first audit report on the county’s response to the COVID-19 pandemic. However. the Multnomah County Sheriff’s Office did not implement our recommendation to expand the use of free-phone calls or modify lobby video visit operations to allow for safe use. Also, for Library locations, the county did not implement our recommendation to add COVID-19 specific cleaning and disinfecting requirements into its contracts with...

As a result of the COVID-19 pandemic, Ohio’s unemployment system was flooded with new claims. Our audit found that the unemployment compensation system was not prepared for the surge in unemployment applications resulting from the pandemic. While limited human resources played a role, antiquated systems and lack of business intelligence made problems worse.

The objectives of this audit are to: 1) obtain, review, and assess agency plans to expend these funds, 2) determine the current status of the RRB IT initiatives to expend all or part of the appropriation, 3) evaluate if the project progress is in accordance with the RRB’s project plan timeline, and reasons for delay, if any, 4) evaluate if the RRB’s goals and timeline are reasonable and attainable to achieve the intended purpose as stated in agency plans, and 5) evaluate the outcomes of the project relative to the anticipated improvements.

We have conducted a performance audit of selected programs and activities of the Division of TennCare for the period July 1, 2019, through May 31, 2021. This audit was conducted pursuant to the requirements of the Tennessee Governmental Entity Review Law. The report presents specific findings related to the implementation of telehealth services during the pandemic.

This report details the operation of the New York State UI system, the recent history and specific impacts of the COVID-19 pandemic on the Trust Fund, and steps that can be taken to replenish the Trust Fund balance. Working together, New York State, participating employers and the federal government can develop solutions that restore the Trust Fund while allowing the ongoing economic recovery to continue.

This audit report assessed what factors caused delays in the Kansas Department of Labor’s unemployment claims processing during the COVID-19 pandemic? To answer this question, we spoke with officials from the Kansas Department of Labor (KDOL) and reviewed KDOL staffing, incident, and call center reports. This audit also includes an updated unemployment insurance fraud estimate. In February 2021 we released the first part of this audit. In that audit we reported a preliminary estimate of how much fraud could have occurred in Kansas in 2020. In this report, we used KDOL claims data from January...

The California Department of Housing and Community Development administers the Emergency Solutions Grant (ESG) program, which received $316 million in federal funding to prevent, prepare for, and respond to the COVID-19 pandemic (ESG-CV) for individuals who are at risk of or experiencing homelessness. Th e following report details our conclusion that the department failed to expedite access to federal funding to address the impact of the COVID-19 pandemic on the homeless population.

This interim report is being issued as part of an ongoing investigation by the Office of the New York City Comptroller into the City’s planning and preparation for and response to the COVID-19 pandemic. The goal of this investigation is to identify the problems encountered by the City preparing for and combatting the pandemic and to recommend actions to prevent similar fiscal and operational challenges from arising in future public health emergencies.

We have audited the accompanying financial statements of the Unemployment Compensation Trust Fund (Trust Fund), an individual nonshared proprietary fund of the State of Illinois, Department of Employment Security, as of and for the year ended June 30, 2020. We found that the Department outsourced unemployment benefit claims processing to a service organization for the Pandemic Unemployment Assistance program and the corresponding Federal Pandemic Unemployment Compensation benefits. The system processing these claims had material weaknesses in the design and operation of internal controls and...

Federal agencies were allocated more than $5 trillion in pandemic response funding to be disbursed to the public and to state and local governments, where a state or local government could have received pandemic response funds from multiple federal programs to improve the overall pandemic response in their communities. Access to information about the total amount of funds received, the purpose of those funds, and the progress made toward achieving the program goals and objectives is not always centralized and can be difficult for the public to track down or may not even be available to the public. The PRAC will conduct impact case studies at 6 different locations and seek to identify the federal pandemic response funds provided to the 6 locations and the purpose of those funds, and to determine if the federal program spending aligned with the intended goals and objectives. The 6 locations identified for this project include: Springfield, Massachusetts; Coeur d’Alene, Idaho; Marion County, Georgia; Sheridan County, Nebraska; White Earth Indian Nation, Minnesota; and Jicarilla Apache Nation, New Mexico.

This report summarizes the results of the Survey of Employee Experiences During the Pandemic, issued by the Auditor’s Office in September 2020. Responses overall were generally positive. However, in analyzing the data and reading over 8,000 written comments, it is clear that employees have had very different experiences.

The objective of this audit was to determine if the Office of Mental Health is adequately monitoring the delivery and performance of telemental health services and ensuring that related telemental health activities are conducted in accordance with applicable laws and regulations.

The objective of our audit was to determine whether adequate controls were in place at the New Jersey Economic Development Authority to approve and disburse funds through the selected programs in compliance with internal requirements and applicable program criteria.

The Comptroller’s Office surveyed Ulster residents on potential uses of the American Rescue Plan funds. The survey was promoted on social media from March 24 through May 3, 2021, and in electronic newsletters to the Comptroller’s Office distribution lists. Two hundred and twelve people responded. Respondents were provided with 14 potential options for the use of funds and asked to grade each on a score of 1 to 10.

As 2020 began, the Metropolitan Transportation Authority (MTA) was already facing challenges in balancing its budget, along with missed capital commitment goals, capital funding risks and escalating debt service costs. The COVID-19 pandemic has exacerbated these troubling trends. The MTA was able to balance its 2020 and 2021 budgets with federal emergency relief and funds that had been earmarked for capital purposes. The authority now faces out-year gaps it intends to close with additional federal aid and borrowed funds, and it must advance a capital program that has barely started.

We have conducted a statewide audit in accordance with auditing standards generally accepted in the United States of America. This report encompasses the year ended June 30, 2020, and is required for the State to continue receiving federal financial assistance, which, as shown in this report, totals approximately $17 billion.

This Single Audit Report reflects federal expenditures of over $19.9 billion. We noted instances of noncompliance that resulted in a qualified opinion on compliance for one of the state’s 24 major federal programs. In addition, we noted other instances of noncompliance that meet the reporting criteria contained in the Uniform Guidance. We also noted material weaknesses and significant deficiencies in internal control over compliance with requirements related to federal programs. In addition, this report presents findings related to the COVID-19 pandemic.

This report is included in the Florida Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020, issued by the Chief Financial Officer. The State of Florida’s basic financial statements. The State of Florida’s basic financial statements for the fiscal year ended June 30, 2020, were presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America

The Montgomery County Office of the Inspector General initiated a review of Montgomery County's purchase of laptop computers to support a mandatory telework order by the Chief Administrative Officer. We sought to determine whether adequate controles were in place during the acquisition, deployment, and subsequent maintenance of the purchased computers.

This report provides the results of our evaluation of the use of telework among the state’s executive branch agencies during the COVID-19 public health emergency. The purpose of this audit was to provide information on the challenges the agencies experienced. We found most agencies did not have telework policies in place prior to the pandemic.

The economic shutdowns in early 2020 led to historically high numbers of UI claims in a very short time (claim surge), and further shutdowns began in December 2020, raising the potential for additional spikes in unemployment. This audit reviewed EDD’s response to the claim surge, its handling of the resulting backlog of unpaid claims, and the assistance it has provided to individuals through its call center

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides qualifying individuals with a recovery rebate (economic impact payment) of up to $1,200 (or $2,400 if married and filing jointly), plus up to $500 for each qualifying child. Congress added a number of exemptions concerning the economic impact payments within the CARES Act; however, it did not exempt child support debt. According to estimates, up to 10.5 million noncustodial parents are delinquent in their payment of child support and could have their economic impact payments intercepted. Based on the significant impact that the CARES Act will have on the collection of delinquent child support due to the intercept of economic impact payments, we determined that the focus of our audit would be to determine whether selected State(s) have policies and procedures in place to ensure that State child support programs collected and distributed delinquent child support under the Federal Tax Refund Offset program.

This limited scope review looks at the measures Department of Accounting and General Services has implemented in response to the COVID-19 pandemic.

The objective of the audit was to determine whether the use of Public Health Emergency Leave aligned with Port policy. In order to achieve this objective, Internal Audit utilized a risk-based approach, selected a sample of individuals who took Public Health Emergency Leave.

The COVID-19 pandemic has created a fiscal emergency for the City of New York, creating significant revenue shortfalls and increased costs associated with managing the public health crisis. Federal relief funding has been inadequate in helping resolve the budget gaps emerging from the fiscal emergency. In response, the City has requested since May that its Transitional Finance Authority (TFA) be provided with authorization by the State Legislature to borrow up to $5 billion to maintain spending and make up for lost revenues not reimbursed by the federal or State government, a practice referred...

The Metropolitan Transportation Authority (MTA) is facing the greatest challenge in its history. On March 1, 2020, New York City reported its first confirmed case of COVID-19, a highly contagious respiratory disease. In the weeks that followed, the caseload grew rapidly in New York City and the downstate region, and the novel coronavirus then spread across the nation. The MTA forecasts budget deficits of $3.4 billion in 2020, $6.3 billion in 2021, $3.8 billion in 2022, $2.8 billion in 2023 and $3.1 billion in 2024. The July Plan’s projected budget gaps are historic in nature. The gap in 2021...

The objective of the evaluation is to determine whether the IRS effectively used its telework program to reduce the impact of the COVID-19 pandemic on IRS operations.

This review was completed as a non-audit service and does not constitute an audit conducted in accordance with Generally Accepted Government Auditing Standards. In agreement with management, we performed the following tasks: Reviewed practices for tracking COVID-19 related payroll and non-payroll expenditures; Reviewed the adequacy of tracking and systems/software for emergency management events; and Researched cost recovery funding sources for local government.

The Department of Administrative Services (DAS) made progress on 11 of the 16 recommendations from the original audit, fully implementing six. COVID-19 response and preparation for the 2021-23 budget made it difficult for DAS to implement some recommendations, specifically those pertaining to end of biennium spending. Additionally, the agency’s choice to deviate from standard response options in four recommendations made our follow-up work more difficult and limited accountability and transparency.

This special report provides information to assist Berkeley’s leaders in navigating the financial challenges ahead. We conducted interviews and reviewed data from government finance and budget officials to compile information on estimates of how the COVID-19 pandemic will affect the local economy and Berkeley’s revenues and expenditures; and considerations from government finance and budget officials for the City Manager and Council to inform decisions about how to manage resources as revenues decline and expenditures increase.

The audit examined Massachusetts Commission Against Discrimination's (MCAD) case management system to determine whether a backlog was present. The audit also reviewed whether MCAD had created a process for ensuring that CARES Act funds received complied with the policies issued by the Office of the Comptroller of the Commonwealth and whether the employees processing these funds were trained in risk management and information security as required by the Executive Office of Technology Services and Security.

This report is a review of risks and possible mitigation strategies related to remote work decisions. The office has not yet completed its assessment of the County’s transitions to remote work and are not yet making recommendations because of the evolving nature of these decisions. However, when the office’s assessment is complete, it will use the information in this document as a starting point for making recommendations in the future.