Lydia E. York Delaware State Auditor
Delaware 403(b) Plan 2023
Financial Statement Audit – Calendar Year Ended December 31, 2023
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Report Summary
Background
The Office of Auditor of Accounts (AOA) performed a financial statement audit of the State of Delaware 403(b) plan for Calendar Year ended December 31, 2023.
This engagement was conducted in accordance with 29 Del. C. § 2722 (e)(7). This section of the Delaware Code specifies that “The (Plans Management) Board shall arrange for an annual financial audit of each of the Plans, which shall be provided annually to the General Assembly. The Board shall enter into a memorandum of understanding with the Auditor of Accounts regarding each such audit…”
29 Del. C. §2906 charges the Auditor of Accounts with the duty of conducting audits of all the financial transactions of all state agencies.
Key Information and Findings
The 403(b) Plan is a voluntary plan available to all employees working in a public school, charter school, DTCC, DSU, and the Dept of Education regardless of pension eligibility. The auditor’s responsibility is to conduct an audit of the State of Delaware 403(b) Plan’s financial statements in accordance with governing standards and to issue an auditor’s report.
For the year ended December 31, 2023:
- There were approximately 6,800 active participants with account balances totaling $548.2 million
- Approximately 1,425 individuals received distributions from the Plan totaling $34.6 million
The auditor has disclaimed expressing an opinion on the financial statements due to the auditor’s inability to obtain sufficient audit evidence, with respect to individual participant account balances accumulated from the inception of the Plan, to test the completeness and accuracy of the beginning account balances. A disclaimed opinion is a modified opinion in the Independent Auditor’s Report. Professional AICPA standards specify “The auditor should disclaim an opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.”
The results of tests disclosed no instances of noncompliance or other matters that are required to be reported under Governmental Auditing Standards.
The 403(b) Plan is a voluntary plan available to all employees working in a public school, charter school, DTCC, DSU, and the Dept of Education regardless of pension eligibility. The auditor’s responsibility is to conduct an audit of the State of Delaware 403(b) Plan’s financial statements in accordance with governing standards and to issue an auditor’s report.
For the year ended December 31, 2023:
- There were approximately 6,800 active participants with account balances totaling $548.2 million
- Approximately 1,425 individuals received distributions from the Plan totaling $34.6 million
The auditor has disclaimed expressing an opinion on the financial statements due to the auditor’s inability to obtain sufficient audit evidence, with respect to individual participant account balances accumulated from the inception of the Plan, to test the completeness and accuracy of the beginning account balances. A disclaimed opinion is a modified opinion in the Independent Auditor’s Report. Professional AICPA standards specify “The auditor should disclaim an opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.”
The results of tests disclosed no instances of noncompliance or other matters that are required to be reported under Governmental Auditing Standards.
