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REPORT DIGEST DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL OF ILLINOIS COMPLIANCE
EXAMINATION For the Year Ended: June 30, 2007 Summary of Findings: Total this audit 3 Total last audit 2 Repeated from last audit 2 Release Date: May 22, 2008
State of Illinois Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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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
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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, 2007
|
STATISTICS |
FY 2007 |
FY 2006 |
|
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.............................................. |
$2,564,633 979,683 1,026,200 43,823 $4,614,339 198,805 $4,813,144 |
$1,253,957 1,063,868 1,119,800 44,828 $3,482,453 178,958 $3,661,411 $5,361,299 |
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 2007 |
FY
2006
|
|
License applications
received............................................ |
1,272 |
1,311 |
|
Licenses in force............................................................... |
1,239 |
1,288 |
|
Insurance
applications received......................................... |
719 |
791 |
|
Insurance policies in
force................................................. |
712 |
784 |
|
Eligible remedial and
insurance claims filed......................... |
699 |
656 |
|
Eligible remedial and
insurance claims closed..................... |
151 |
88 |
|
Cost per eligible
claim filed................................................ |
$351 |
$430 |
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COUNCIL CHAIRMAN |
|
During Audit Period: John
Polak Currently: John Polak |
|
For 57% of vouchers
tested, billings were submitted 4 to 888 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 20 of
35 (57%) vouchers tested, totaling $305,972, paid billings that were
submitted 4 to 888 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, Pages 9-10) We
recommended the Council enforce the requirement that invoices and necessary
documentation be submitted timely as required by the Act or continue to seek
legislative remedy to the statutory requirement. Council
representatives accepted our recommendation and responded that a legislative
remedy would be sought to eliminate the statutory requirement. Council
representatives further stated that legislation was introduced in March 2008 to eliminate the 30-day 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 1,239 drycleaning facilities and issued 712
insurance policies during fiscal year 2007.
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 accepted our recommendation and responded that they have
filed amended rules with the Secretary of State’s office to further clarify
the record retention requirements as they pertain to the licensing and the
insurance application processes, the filing of claims and the filing of
appeals with the Council. OTHER FINDING The other finding pertains to expired
Council member appointments. Council
representatives agreed with the finding and recommendation and they are
reportedly being given attention by the Council. We will review progress
toward implementing our recommendation in our next examination. 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. |