Uniform Guidance Single Audit FY25
Single Audit – Fiscal Year Ended June 30, 2025
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Report Summary
Background
The Office of Auditor of Accounts, Delaware Department of Finance, and Division of Accounting present the Annual Uniform Guidance Single Audit Report, for the State of Delaware, for fiscal year ended June 30, 2025.
The Single Audit Act establishes requirements for audits of States, local governments and Indian tribes that expend over a threshold amount in Federal awards during a fiscal year. The State of Delaware is required by federal law to have an annual audit of the administration of the federal assistance programs. Governments that are subject to the Single Audit Act are required to prepare and have audited the Schedule of Expenditures of Federal Awards (SEFA). The SEFA reports amounts expended, not the amount received, during the fiscal year. Uniform Guidance requires that the independent auditor performing a Single Audit render an in-relation-to opinion on the SEFA as part of the independent auditor’s report on the government’s financial statements.
In fiscal year 2025, the state administered over $4.1 billion in federal programs through various state agencies. Eighteen major federal programs across various state agencies were reviewed for the Uniform Guidance Single Audit.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
This engagement was performed in accordance with 29 Del. C. §2906(a).
Key Information and Findings
CliftonLarsonAllen, LLP (CLA) issued its opinions on the State of Delaware Annual Uniform Guidance Single Audit Report as of and for the year ended June 30, 2025. CLA expressed seven qualified opinions and eleven unmodified opinions on the eighteen major federal programs.
The single audit included 26 findings: 11 material weaknesses and 15 significant deficiencies found within 12 of the 18 major programs tested, including 15 repeat findings from FY24. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
The Financial Statements and Schedule of Expenditures of Federal Awards subsection shows a disclaimer of opinion on the Business-Type Activities – Enterprise Fund – Department of Labor Unemployment Insurance Fund. One finding was written about the Material Weakness in Internal Control over Financial Reporting on the Unemployment Insurance Trust Fund. This is a repeat finding since FY2022. However, a disclaimer on this fund on the State of Delaware’s Annual Comprehensive Financial Report was not expressed until FY2023. In total, seven of the 18 major programs audited included a qualified opinion on compliance.
Information on the totality of federal awards to the State of Delaware since FY2020 is contained in
the below charts:
| Fiscal Year | Total Federal Awards |
|---|---|
| 2020 | $3,509,731,473 |
| 2021 | $5,038,982,819 |
| 2022 | $4,432,831,986 |
| 2023 | $4,439,595,005 |
| 2024 | $4,291,135,386 |
| 2025 | $4,170,993,237 |
| Findings by Compliance Requirement | Material Weaknesses | Significant Deficiencies | Total Findings | Repeat Findings from FY2024 |
|---|---|---|---|---|
| Allowable costs/cost principles | 2 | 5 | 7 | 4 |
| Cash Management | 0 | 1 | 1 | 0 |
| Eligibility | 1 | 2 | 3 | 1 |
| Period of Performance | 1 | 0 | 1 | 0 |
| Procurement | 0 | 1 | 1 | 0 |
| Reporting | 4 | 4 | 8 | 5 |
| Special Tests and Provisions | 3 | 2 | 5 | 5 |
| Totals | 11 | 15 | 26 | 15 |
| Findings by State Agency | Material Weaknesses | Significant Deficiencies | Total Findings | Repeat Findings from FY2024 |
|---|---|---|---|---|
| Labor | 3 | 5 | 8 | 7 |
| Education | 1 | 0 | 1 | 0 |
| DelDOT | 0 | 0 | 0 | 0 |
| Health and Social Services | 7 | 7 | 14 | 7 |
| Office of the Governor | 0 | 2 | 2 | 1 |
| Department of State | 0 | 1 | 1 | 0 |
| Totals | 11 | 15 | 26 | 15 |
| State Agency | Major Programs Audited | Major Programs with Findings | Major Programs with Qualified Opinions |
|---|---|---|---|
| Labor | 1 | 1 | 1 |
| Education | 2 | 1 | 1 |
| DelDOT | 1 | 0 | 0 |
| Health and Social Services | 10 | 8 | 5 |
| Office of the Governor | 1 | 1 | 0 |
| Department of State | 1 | 1 | 0 |
| Delaware Technical Community College | 1 | 0 | 0 |
| Delaware National Guard | 1 | 0 | 0 |
| Totals | 18 | 12 | 7 |