​By Karen Hartley-Nagle, Former President, New Castle County Council (2016–2024)​​

October 18, 2025 | Investigative Report | Audit Reckoning Series | Report 5 ​​​​

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​How “Hope” Became a Headline — and Accountability Became Optional

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“They called it a legacy.
The audits call it a liability.”

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Prologue — The Farewell That Aged Poorly

New Castle County Press Release — November 17, 2021

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“New Castle County Executive Matt Meyer named Carrie Casey General Manager of Community Services… She will fill the position by outgoing General Manager Marcus Henry, who announced his retirement last month. ‘I am incredibly grateful for Marcus’ leadership and his decade of service,’ said Meyer. ‘His legacy includes purchasing the Hope Center.’” (New Castle County Government Press Release, 2021)

That line — “his legacy includes purchasing the Hope Center” — was supposed to seal Meyer’s reputation for compassion and efficiency.
Two years later, the FY 2023 Single Audit would reveal that “legacy” for what it was: a ledger of non-compliance and concealment.

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I. The Clean That Wasn’t

The Meyer-Henry administration sold the public a story of reform and recovery. The numbers say otherwise.

Findings from the FY 2023 Single Audit (CliftonLarsonAllen LLP):

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• Hope Center Accounting Still Broken — unreconciled cash and receivables; late approvals; missing payables.

• HUD HCV Program Errors — a $700,797 prior-period correction entered after the fact.

• CDBG Program Non-Compliance — 3 of 5 tested subawards ($487,714 of $801,983) lacked federal reporting; auditor issued a material weakness and qualified opinion.

• Repeat SEFA Classification Errors — the same mistakes flagged in 2022 resurfaced in 2023.

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The County called the audit “clean.”
The auditor called it qualified. And qualified means it failed.

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II. Spin and Silence

When the Audit Committee finally met again in late 2023, County Auditor Bob Wasserbach told members the results were “very positive news.” Minutes from the meeting show no mention of the Hope Center findings or the federal qualifications.

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At the April 2025 session, he praised the CARES Act report as “remarkable” and thanked the Executive Office for “cooperation and achieving positive results.” The year with the worst federal failures was erased from the record.

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Spin: “Unmodified financial opinion means we’re fine.”
Fact: It means the books add up in aggregate, not that the controls work. Two programs still failed compliance.

Spin: “Delays were pandemic-related.”
Fact: Council met on time every month via Zoom. The Audit Committee could have too — it chose not to.

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III. The Inheritance of Neglect

By 2023, Meyer was running for Governor; Marcus Henry was preparing his campaign for County Executive.

Neither had closed the loop on the Hope Center’s failures. Instead, the County issued a new policy memo “developing procedures for external bank accounts.” After the fact.

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This is how rot moves through government — it doesn’t resign; it gets promoted.

Meyer became Governor.
Henry became County Executive.

And the audit trail they left behind now defines them both.

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IV. The Paper Trail That Wouldn’t Stay Buried

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Year

What the Auditors Found

What the County Said

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2020

$59 M in federal funds moved before contracts existed

“Emergency conditions.”

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2021

Audit Committee inactive > 1000 days

“Scheduling issues.”

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2022

Off-book Hope Center account ($1 M omitted) + qualified opinions

“Administrative oversight.”

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2023

Repeat federal non-compliance + qualified CDBG program

“Clean overall audit.”

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Each excuse was worse than the finding itself.

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V. What Real Leadership Would Have Done

If Matt Meyer were a steward, not a storyteller:

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• Publicly release a Corrective Action Plan within 30 days.

• Freeze new subawards until FFATA and SLFRF controls were verified.

• Order a county-wide bank-account reconciliation and post the results.

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If Marcus Henry had been a competent General Manager:

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• Require Finance approval for every account in the County’s name.

• Install a two-person ledger reconciliation team for the Hope Center.

• Brief the Audit Committee quarterly until findings were cleared.

They did none of it. Instead, they left the mess to the auditors and the taxpayers.

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VI. The Cost of Silence

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• Financial cost: Each repeat finding adds tens of thousands in consultant fees and audit testing.

• Legal risk: Material weaknesses invite federal scrutiny and possible grant clawbacks.

• Moral loss: When leaders lie about the ledger, trust dies by compound interest.

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VII. Anticipating the Spin (And the Facts)

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Spin: “We fixed it going forward.”
Fact: Fixing after exposure is not reform — it’s damage control.

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Spin: “These were minor administrative issues.”
Fact: Auditors labeled them “material weaknesses” — the highest severity short of fraud.

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Spin: “The Audit Committee met when needed.”
Fact: Law requires quarterly meetings. Records show gaps up to 11 months.

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VIII. What a Top Auditor Would Have Done

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• Publish a Federal Risk Map highlighting SLFRF and CDBG exposure.

• Create a Corrective Action Matrix and track closure publicly.

• Escalate non-compliance to Council within 30/60/90 days of missed targets.

• Require an independent peer review (QAR) every three years and post the results.

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IX.  Why It Matters to Every Taxpayer

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Every audit failure ends up in someone’s bill.
When federal funds are mismanaged, local taxes rise to fill the gap.

When oversight collapses, services suffer — from housing to public safety.
And when the same people responsible for those failures move up the ladder, the message to every honest employee is clear: integrity is optional.

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X. The Reckoning

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“Good governance isn’t partisan — it’s procedural.”

Quarterly means quarterly.
Reconciled means reconciled.
Clean means clean — not qualified, not delayed, not rewritten by press release.

Until New Castle County follows its own laws and its leaders tell the truth about the books, Delaware will keep paying for their legacies.

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Receipts

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• CliftonLarsonAllen LLP. (2024, Mar 28). New Castle County, Delaware — Single Audit, FY Ended June 30, 2023.

• CliftonLarsonAllen LLP. (2023, Mar 27). FY 2022 Audit Results Presentation (Slide Deck).

• Wasserbach, R. (2025, Apr 10). Audit Report Memo — Hope Center (Final).

• Wasserbach, R. (2024, Apr 17). Audit Report — CARES Act Coronavirus Relief Funds (CRF) [Email to County Council].

• Audit Committee Agendas & Minutes (2023–2025). 11/28/23; 5/10/24; 4/10/25.

• New Castle County Government. (2021, Nov 17). Press Release: Meyer Nominates Carrie Casey to Role of GM of Community Services. https://www.newcastlede.gov/CivicAlerts.aspx?AID=2086

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Cite as: Hartley-Nagle, K. (2025, Oct 23). The Legacy That Failed Itself: How “Hope” Became a Headline — and Accountability Became Optional. The Truthline Network. https://www.karenhartleynagle.com/the-legacy-that-failed-itself-audit-reckoning-report-5

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Sources (APA)

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• CliftonLarsonAllen LLP. (2023, March 27). New Castle County, Delaware—Single Audit, year ended June 30, 2022: Independent auditors’ reports; Schedule of expenditures of federal awards; Schedule of findings and questioned costs; Corrective action plan. (Findings 2022-001/003/004; Hope Center omission; SLFRF and FFATA issues.)

• New Castle County, DE. (2025, April 10). Audit Committee Meeting Agenda (Item III: Audit Memorandum – NCC Hope Center). 

• New Castle County, DE. (2024, May 10). Audit Committee Meeting Minutes (discussion of Community Services controls and Hope Center operations). 

• New Castle County, DE. (Accessed Oct. 15, 2025). Archive Center—Comprehensive/Annual Financial Reports & Single Audits (FY2020, FY2021, FY2023, FY2024 listed, FY2022 not listed). ​

• U.S. Department of the Treasury. (2024, July 1). SLFRF Project & Expenditure Report User Guide.

• U.S. Department of the Treasury. (2022–2025). SLFRF Compliance & Reporting Guidance / Final Rule FAQs (obligation definition & updates). 

• U.S. General Services Administration. (n.d.). FSRS (FFATA Subaward Reporting System). 

• National Institutes of Health; Health Resources & Services Administration. (2010–2025). FFATA reporting requirements (first-tier subawards ≥$30,000; executive compensation thresholds). 

• U.S. Government Accountability Office. (2014; 2025). Standards for Internal Control in the Federal Government (Green Book). 

• Government Finance Officers Association. (n.d.). Internal Control Environment; Internal Control and Management Involvement / Corrective-Action Follow-up. 

• CliftonLarsonAllen LLP. (2023, May 1). New Castle County, Delaware: (SlideDeck PDF) Audit results for the year ended June 30, 2022. (Report date: March 27, 2023). County of New Castle, Delaware.

• New Castle County Auditor’s Office. (2025, April 10). Audit Memorandum – NCC Hope Center. County of New Castle, Delaware. 

• New Castle County Auditor’s Office. (2025, April 10).  Audit Reports. County of New Castle, Delaware. 

• County of New Castle, Delaware. (2024–2025). Budget and legislative materials referencing audit delays and Hope Center reporting issues. 

• Spotlight Delaware. (2024, April 24). New Castle County to manage Hope Center after audit. 

• Delaware LIVE. (2024, April 25). New Castle County to manage Hope Center after audit.

• Delaware Business Times. (2024, September 13). New Castle County files lawsuit against former Hope Center operators. 

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​Note: The FY2023 Single Audit details and all quoted finding labels/conditions are drawn from the County’s own audit package and corrective-action plan. The Single Audit Report referenced in this report was conducted by an independent, certified public accounting firm, in accordance with federal and state law. It was not performed by the New Castle County Auditor’s office.

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Read full documents → Sources above

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Audit Reckoning Series  |  Report 1  |  Report 2  |  Report 3  |  Report 4  | Report 5

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Attribution

Content and analysis © 2025 The Truthline Network, a division of Nexus Innovation Group LLC.
All content authored by Karen Hartley-Nagle — Founder & Publisher, The Truthline Network; Editor-in-Chief, Host & Executive Producer, The Truthline (Radio & Live); Former President, New Castle County Council (2016–2024); Founder & CEO, Nexus Innovation Group, LLC.

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Excerpts, data, or quotations may be reproduced for noncommercial use with attribution to The Truthline Network and a direct link to the original report. Commercial use or republication requires written permission.

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Cite as: “The Legacy That Failed Itself,” The Audit Reckoning Series: Report 5, The Truthline Network (October 27, 2025). https://www.karenhartleynagle.com/the-legacy-that-failed-itself-audit-reckoning-report-5-truthline-network

“Transparency isn’t charity. It’s the rent you pay for pow​