State Auditor’s report points out accounting woes in jobless compensation fund


Delaware Auditor of Accounts Lydia E. York issued a special report on the Delaware Unemployment Compensation Fund (DUCF) that found “significant deficiencies in internal accounting controls.”

The report summarizes the findings of a months-long inquiry by auditors at the Department of Labor Division of Unemployment Insurance.

These issues contributed to what the office termed as an “unprecedented disclaimer of opinion.”

“This report describes a specific occurrence of poor oversight and adherence to accepted accounting procedures. That leaves the State vulnerable to adverse consequences,” said York. “It is my hope that these findings lead to real corrective action and an accounting for millions of dollars our state is a steward of that are meant for unemployment benefits.”

The DUCF is a fund managed by the Division of Unemployment Insurance, which contains employer and grant contributions to the unemployment insurance program.

Thousands of Delaware employers contribute to this fund, which currently reported cash assets of around $390 million in the fiscal year 2023 ACFR. The ACFR independent auditor’s report includes findings that the 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.”

“I want to commend this office’s highly qualified non-partisan audit staff, who spent months investigating and putting together this report. Their hard work every day contributes to greater transparency and accountability across our state government,” said York. “I also want to thank Secretary Hubbard for her cooperation and access to Department of Labor personnel.”

In 2022, York became the first African American woman elected to a state executive office in Delaware history.


The office until now has maintained a low profile after York won a primary battle against incumbent Kathy McGuiness and also won in the general election. McGuiness was convicted on two misdemeanor counts related to her conduct in office. One charge was thrown out. McGuiness continues to maintain her innocence.