Examination – Fiscal Years Ended June 30, 2020-2023

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Report Summary

Background

The Office of Auditor of Accounts (AOA) conducted an examination of the Schedule of Cash Receipts and Cash Disbursements of the State of Delaware Distressed Cemetery Fund (Fund) for the fiscal years ended June 30, 2023, 2022, 2021, and 2020 to determine whether it is in accordance with the criteria set forth in the Delaware Code and the State of Delaware Budget and Accounting Policy Manual (BAM).

The objectives of the examination engagement included the following:

• Determine if registration fees (revenues) are accurately applied to an account in accordance with 29 Del. C. 7906A
• Determine if death certificate fees (revenues) are accurately applied to an account in accordance with 29 Del. C. 7907A (a)
• Determine if DCF receives and forwards complaints from any person relating to a Delaware cemetery to appropriate agencies of the State in accordance with 29 Del. C. 7904A (8)
• Determine if the DCF Board:
  • Resolved that the cemetery is considered Distressed in accordance with 29 Del. C. 7904A (5) and either authorized or rejected work to be performed at a distressed cemetery in accordance with 29 Del. C. 7904A (6)
  • Authorized payment to a distressed cemetery from the Fund in accordance with 29 Del. C. 7904(6)
  • Obtained a thorough accounting of each recipient’s use of money from the Fund in accordance with 29 Del. C. 7904A (7)
  • Determine if DCF Board members were reimbursed for reasonable and necessary expenses incident to their duties, to the extent that funds are available and the expenditures are in accordance with state laws, per 29 Del. C. 7903A (b)
  • Determine if DCF is keeping records related to meeting of the Board per 29 Del. C. 7904A (1) (3)
  • Confirm the existence of department policies and procedures and ensure that they are properly managed and maintained. In addition, evaluate the effectiveness of policies and procedures in fulfilling goals and strategic objectives.

The audit was performed according to AOA’s authority as set forth in 29 Del. C. §2906. The Distressed Cemetery Fund law mandates an annual audit.

Key Information and Findings

Many cemeteries nationwide face abandonment and neglect due to limited resources. As a result, some have become unsafe. In 2009, the State of Delaware Department of Health and Social Services, Division of Public Health (DHSS-DPH) established the Distressed Cemetery Fund to address this issue.

Per 29 Del. C. §7901A, the three objectives of the Fund are: to provide for the registration of cemeteries in Delaware, to appropriately refer complaints from the public relating to cemeteries, to create a fund that can be used to ameliorate (improve) the conditions in a distressed cemetery.

During Fiscal Years 2020 – 2023:

• 262 cemeteries were registered with the Fund through June 30, 2023
• 26 cemeteries received assistance from the Fund totaling $179,037

The amounts collected from cemetery registration fees and sales of death certificate fees allocable to the Fund totaled $510,064.

There were two instances of significant deficiencies in internal controls. A Significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness yet important enough to merit attention by those charged with governance.

• Cash Receipts Supporting Documentation: The supporting documentation for allocation of death certificate fees to the Fund were incomplete in several of the sampled deposits due to of the lack of review and approval of these transactions.

• DCF Revenue: Three allocations of death certificate fees involved sales of death certificates below the standard charge. DHSS-DPH either included correction certificates in its population of death certificates sold or did not collect the full $25 amount of the death certificate sold. DHSS-DPH did not provide complete supporting documentation for the transactions.