REPORT DIGEST

 

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND COUNCIL OF ILLINOIS

 

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2006

 

Summary of Findings:

Total this audit             2

Total last audit             0

Repeated from last audit 0

 

 

Release Date:

April 24, 2007

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

 

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

        The Council did not enforce statutory timeframes for reimbursement requests.

 

        The Council did not adopt rules prescribing record retention requirements for drycleaning facilities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Receipts, Disbursements and Activity Measures are summarized on the next page.}

 

 

 

 

 

 

 

 

 

DRYCLEANER ENVIRONMENTAL RESPONSE

TRUST FUND COUNCIL OF ILLINOIS

COMPLIANCE EXAMINATION

FOR THE YEAR ENDED JUNE 30, 2006

 

STATISTICS

FY 2006

FY 2005

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND

RECEIPTS:

License Fees Collected...............................................

Solvent Taxes Collected..............................................

Insurance Premium Collected......................................

Late Payment Fees and Miscellaneous.........................

Net Fees Collected for Council.............................

Interest Income...........................................................

Net Receipts

 

EXPENDITURES:

Contractual Services...................................................

Travel.........................................................................

Refunds......................................................................

Grants and Awards (Claims Payments)........................

Total Disbursements..............................................

 

 

 

$1,253,957

1,063,868

1,119,800

44,828

$3,482,453

178,958

$3,661,411

 

 

$ 912,448

2,438

22,208

4,424,205

$5,361,299

 

 

 

$1,340,403

1,074,820

1,185,848

52,886

$3,653,957

124,339

$3,778,296

 

 

$1,030,491

3,089

32,730

3,742,384

$4,808,694

 

 

The above information was obtained from agency and Comptroller records and includes that portion of the receipts reported by the Illinois Department of Revenue and the Office of the Treasurer. License fees and solvent taxes collected are reported net of a 4% collection fee charged by the Department of Revenue.

 

ACTIVITY MEASURES (Not Examined)

FY 2006

FY 2005

License applications received............................................

1,311

1,345

Licenses issued.................................................................

1,288

1,312

Insurance applications received.........................................

791

872

Insurance policies issued...................................................

784

848

Total eligible claims filed....................................................

656

494

Total eligible claims closed................................................

88

41

Cost per eligible claim filed................................................

$430

$585

 

COUNCIL CHAIRMAN

During Audit Period: John Polak

Currently: John Polak




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


For 71% of vouchers tested, billings were submitted 2 to 1,008 days late

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rules did not prescribe requirements for record retention by drycleaning facilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

The Drycleaner Environmental Response Trust Fund Council of Illinois (Council) oversees the licensure of all drycleaning facilities in the State of Illinois. The Council also reimburses drycleaner facilities for costs of remedial action for solvent releases, which occurred in fiscal years 1998 through 2006. The Council offers insurance to facilities to insure against solvent release cleanup costs subsequent to fiscal year 2006. The Council has contracted with a third party administrator to conduct daily operations and fiscal and administrative duties, under the oversight of the Council.

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

FAILURE TO ENFORCE STATUTORY TIMEFRAMES FOR PAYMENT REQUESTS

 

The Council did not require owners and operators of drycleaning facilities to submit invoices and bills within 30 days of completion of remediation work as required by statute. We noted 25 of 35 (71%) vouchers tested, totaling $413,893, paid billings that were submitted 2 to 1,008 days late.

 

The Drycleaner Environmental Response Trust Fund Act (Act) states that claimants are subject to limitations on reimbursement, including a requirement that all invoices and bills for remediation work shall be submitted not later than 30 days after the work has been performed (415 ILCS 135/40(f)(6). (Finding 1, Page 9)

 

We recommended the Council enforce the requirement that invoices and necessary documentation be submitted timely as required by the Act or seek legislative remedy to the statutory requirement.

 

Council responded that a legislative remedy would be sought to eliminate the statutory requirement.

 

 

 

FAILURE TO ADOPT RULES REGARDING THE RETENTION OF RECORDS

 

The Council did not adopt statutorily required rules prescribing record retention requirements for drycleaning facilities. The Council licensed 1,288 drycleaning facilities and issued 784 insurance policies during fiscal year 2006.

 

The Act requires the Council to adopt rules prescribing requirements for the retention of records by an owner or operator of a drycleaning facility and the periods for which the records must be retained. (Finding 2, Page 11)

 

We recommended the Council adopt rules regarding record retention or seek legislative remedy to the statutory requirement.

 

Council representatives responded that they would begin the process to adopt rules to further clarify the record retention requirements.

 

 

AUDITORS' OPINION

 

We conducted a compliance examination of the Drycleaner Environmental Response Trust Fund Council of Illinois as required by the Illinois State Auditing Act. We have not audited any financial statements of the Council for the purpose of expressing an opinion because the agency does not, nor is it required to, prepare financial statements.

 

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

 

 

WGH:LW:pp

 

 

AUDITORS ASSIGNED

 

This examination was conducted by staff of the Office of the Auditor General.