REPORT DIGEST

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  December 11, 2019

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 1 -- 1
TOTAL:  0 -- 1 -- 1

FINDINGS LAST AUDIT: 1

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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
www.auditor.illinois.gov

SYNOPSIS

• (19-01) The Council has several members
serving on expired terms as well as a
vacancy.

OTHER MATTERS

• During Fiscal Year 2019, the Council’s
financial projections for the period of July
1, 2018, through the Fund’s sunset date of
January 1, 2020, indicated the Fund had
program deficits of approximately
$16,283,310 based on program assumptions as
of July 1, 2018.

• Public Act 101-0400 will abolish the
Council on July 1, 2020, and transfer its
powers, duties, rights, and responsibilities
to the Environmental Protection Agency.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EXPIRED COUNCIL MEMBER APPOINTMENTS

The Drycleaner Environmental Response Trust
Fund Council (Council) has several members
serving on expired terms as well as a
vacancy.

During testing, we noted Council member
appointments or reappointments had not been
made as required by the Drycleaner
Environmental Response Trust Fund Act (Act)
for four of the seven Council member
positions (57%).  The following chart
depicts the amount of time passed as of June
30, 2019, after each noted Council member’s
term expired or became vacant:

Member #1  --  Vacant February 28, 2019  --
122 days
Member #2  --  Term Expired May 1, 2016  --
1,155 days
Member #3  --  Term Expired May 1, 2019  --
60 days
Member #4  --  Term Expired May 1, 2008  --
4,077 days
(Finding 1, page 7).  This finding has been
repeated since 2007.

We recommended the Council continue to work
with the Governor’s Office to obtain current
Council member appointments as soon as
possible.

Council management stated the Council’s
members have applied for reappointment
directly and online.  Council management
also noted Senate Bill 171 was signed by the
Governor on August 16, 2019, which abolishes
the Council on July 1, 2020.

OTHER MATTERS

• During Fiscal Year 2019, the Council’s
financial projections for the period of July
1, 2018, through the Fund’s sunset date of
January 1, 2020, indicated the Fund had
program deficits of approximately
$16,283,310 based on program assumptions as
of July 1, 2018 (page 12).

• Senate Bill 171 passed both houses of the
General Assembly on May 27, 2019. The bill
was signed into law as Public Act 101-0400
by the Governor on August 16, 2019. This law
will:
1) transfer the Council’s powers, duties,
rights, and responsibilities to the
Environmental Protection Agency as of July
1, 2020;
2) limit administrative costs paid from the
Fund;
3) require the prioritization of
expenditures from the Fund in accordance
with rules to be adopted by the Pollution
Control Board;
4) establish an additional administrative
assessment fee;
5) establish criminal penalties for false
statements;
6) abolish the Council on July 1, 2020;
7) prohibit the Council from extending the
Administrator’s contract beyond June 30,
2020; and,
8) extend the sunset date of the Fund to
January 1, 2030. (page 12)

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Council for the year
ended June 30, 2019, as required by the
Illinois State Auditing Act.  The
accountants stated the Council complied, in
all material respects, with the requirements
described in the report.

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

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:meg