The Port of Wilmington will undergo audit by Delaware State Auditor
WILMINGTON- Delaware state auditor, overseer of the Port of Wilmington, Lydia York, announced that her office would open an investigation into the Diamond State Port Corporation (DSPC) – the state-owned entity that oversees the port facility and directs $635 million in expansion plans.
The audit, called a performance audit, will scrutinize Port Corporation operations more thoroughly than the auditor’s standard financial audit.
“The performance audit is going to look at more of their processes, and how they receive funds, have to spend funds, and how they regulate themselves,” said Lydia York.
In 1995, the state of Delaware purchased the port from the city of Wilmington and created Diamond State Port Corporation to operate the facility. The Port of Wilmington is located at the confluence of the Delaware and Christina Rivers, and is the busiest terminal on the Delaware River.
The port generates millions of dollars in revenue for the state each year. The port is a key economic driver for Delaware and is expected to become even more important with the construction of a new terminal.
“This is a significant industrial development- adjacent to or inside the city of Wilmington.”
The audit will result in a report that contains the auditor’s opinion and the assurance that the port is operating efficiently, looking into how the Port Corporation has handled hundreds of millions of dollars in taxpayer funds, interviews with current and former board members, and examination of the Port Corporation’s stewardship of funds for the Fiscal Year 2025.
“There may be interviews, there may be inquiries,” York said. “We’re just going to ask questions, and seek documentation for the reason for and the answers that began.”
The audit will examine how the Port Corporation has spent money on the Edgemoor expansion project. The Edgemoor project is a planned expansion of the Port of Wilmington to build a new port terminal at a site in Edgemoor, Delaware. The Edgemoor industrial site was purchased by the DSPC in 2017.
The project has been delayed due to financial issues, opposition from neighbors, and conflicts with permits.
“Construction is paused because they don’t have the permits,” said York.
Asked if the plans were on pause for now, York said “just because you’re not digging doesn’t mean you’re not planning, and I would expect that’s what’s going on now.”
According to the Auditor of Accounts office, state funds totaling nearly $200 million were recently transferred from the Extraordinary Escheat Claims fund into the Diamond State Port Corporation for the Edgemoor expansion project.
The funds were earmarked by the former Secretary of Finance, former Director of the Office of Management Budget, and chairs of the Joint Capital Improvement Committee. The process is detailed in epilogue language of the Bond Bills of Fiscal Year 2023 and Fiscal Year 2024. The money was being held in an interest-bearing state special fund since June 2024.
The transfer followed the signing of a joint development agreement between the Diamond State Port Corporation and Enstructure in December.
“I think that with any large project, especially one that’s funded this capacity of dollars, (the Wilmington community) is going to want to be protected and that the benefit will come to the city of Wilmington,” she said.
As far as how long the audit will take, York explained they are still in the very early stages. Now focusing on ensuring all necessary internal resources are available when the work needs to be done. The process of an audit must be planned, where the scope is established and the work still needs to be outlined. The individual procedures are conducted to validate the scope, leading to conclusions as part of the overall process.
“We think it’s going to be fast, but it may feel slow, but the time that we spend will be well spent, and I think everyone will find the results informative.”
Claudia is a Philadelphia-based journalist and reporter passionate about storytelling that informs and engages the community. Claudia, a proud Temple University graduate, has built a career covering impactful stories and creating compelling content across digital and print media platforms. With a strong background in writing, editing, and research, Claudia has worked on various topics, from local news to in-depth features, always striving to deliver meaningful and accurate reporting.
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