REPORT DIGEST

 

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST

FUND COUNCIL

 

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2008

 

Summary of Findings:

Total this audit††††††     ††††††† 3

Total last audit††††††††††† †    † 3

Repeated from last audit    2

 

 

 

Release Date:

April 2, 2009

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

DRYCLEANER ENVIRONMENTAL RESPONSE

TRUST FUND COUNCIL

COMPLIANCE EXAMINATION

FOR THE YEAR ENDED JUNE 30, 2008

 

STATISTICS

FY 2008

FY 2007

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..............................................

†††††

 

 

 

$2,405,450

850,972

1,024,100

†††††† 50,928

$4,331,450

†††† 245,086

$4,576,536

 

 

$†† 771,694

4,267

34,955

2,754,704

$3,565,620

 

 

 

$2,564,633

979,683

1,026,200

†††††† 43,823

$4,614,339

†††† 198,805

$4,813,144

 

 

$†† 789,978

2,606

30,275

2,694,659

$3,517,518

 

 

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 2008

FY 2007

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

1,217

1,272

Licenses in force................................................................

1,197

1,239

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

†† 685

†† 719

Insurance policies in force..................................................

†† 674

†† 712

Eligible remedial and insurance claims filed..........................

†† 699

†† 699

Eligible remedial and insurance claims closed......................

†† 254

††† 151

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

$312

$351

 

COUNCIL CHAIRMAN

During Audit Period:John Polak

Currently:John Polak

 

 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


For 80% of vouchers tested, billings were submitted 7 to 570 days late

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

††††† The Drycleaner Environmental Response Trust Fund Council (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 28 of 35 (80%) vouchers tested, totaling $723,651, paid billings that were submitted 7 to 570 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)This finding was first reported in 2006.

 

††††† 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. Representatives responded that legislation was introduced in March 2008 to eliminate the 30-day requirement, but was not considered by the Senate before the end of session. Draft legislation was expected to be filed again in February.

OTHER FINDINGS

 

††††† The other findings are reportedly being given attention by the Council. We will review the Councilís progress toward implementing our recommendations in our next examination.

 

 

AUDITORS' OPINION

 

†††† We conducted a compliance examination of the Drycleaner Environmental Response Trust Fund Council 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

 

 

AUDITORS ASSIGNED

 

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

 

 

 

DIGEST FOOTNOTE

 

#1 FAILURE TO ENFORCE STATUTORY TIMEFRAMES FOR PAYMENT REQUESTS - Previous Council Response

 

2007: The Council is seeking a legislative remedy to eliminate the statutory 30-day requirement.When the Council became aware of the non-compliance finding in April 2007, they took action at their April 24, 2007 Council meeting by passing a motion to seek legislation to eliminate the requirement.

 

†††††††††† Legislation was introduced in March 2008 which would eliminate the 30-day requirement.