REPORT DIGEST

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND COUNCIL OF ILLINOIS

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 2000

Summary of Findings:

Total this audit 1
Total last audit 1
Repeated from last audit 1

Release Date:
March 29, 2001

 

 

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

 

 

 

 

 

 

 

SYNOPSIS

 
  • The Council was unable to determine whether drycleaners were paying the proper amount of annual license fees. In fiscal year 2000 the Council licensed approximately 1,450 drycleaner facilities, of which approximately (85%) paid license fees at the lowest level.

 

 

DRYCLEANER ENVIRONMENTAL RESPONSE
TRUST FUND COUNCIL OF ILLINOIS
FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 2000

STATISTICS

Year Ended 6/30/00

Year Ended 6/30/99
RECEIPTS:
License Fees Collected
Solvent Tax and Stock Fees Collected
Insurance Premium Collected
Late Payment Fees and Miscellaneous
Subtotal
Less 4% Department of Revenue Fees
Net Fees Collected for Council
Interest Income
Net Receipts
-
DISBURSEMENTS
Contractual Services
Travel
Advertising
Refunds
Other
Total Disbursements
Excess Receipts Over (Under) Disbursements
Council Equity, Beginning of Period
Council Equity, End of Period
$1,176,274
810,339
58,900
242,270
$2,287,783
(79,464)
$2,208,319
139,192
$2,347,511


$513,688
1,995
1,500
22,448
8,298
$547,929
$1,799,582
2,674,726
$4,474,308
$871,430
794,195
0
0
$1,665,625
(66,625)
$1,599,000
67,687
$1,666,687


$135,475
3,057
0
0
0
$138,532
$1,528,155
1,146,571
$2,674,726

The above information was obtained from Comptroller records and reconciled to Council records.
COUNCIL CHAIRMAN
During Audit Period: James E. Sober
Currently: James E. Sober
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85% of the 1,450 drycleaner facilities licensed paid license fees at the lowest level

INTRODUCTION

The Drycleaner Environmental Response Trust Fund Council was created under the Drycleaner Environmental Response Trust Fund Act (Act). The Act was established to protect the health and safety of the citizens and natural resources of the State of Illinois.

The Act requires the Council to be audited annually by the Auditor General.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

DRYCLEANER LICENSE FEES NOT VERIFIABLE

The Council was unable to determine whether drycleaners were paying the proper amount of annual license fees.

The license fees are set at $500, $1,000 or $1,500 depending on the number of gallons of drycleaner solvent purchased in the preceding license year. A license application has been developed that requires the drycleaner operator to indicate which fee category is applicable. However, Council representatives stated they do not have a cost-effective method to verify that the operator has properly completed the application and remitted the appropriate fee.

For 2000 the Council licensed approximately 1,450 drycleaner facilities, of which approximately 85% paid license fees at the $500 level. (Finding 1, pages 12 - 13).

The Council accepted our recommendation to implement additional procedures to verify solvent purchases. The Department of Revenue collects a tax on drycleaner solvent sales; however, the seller of the solvent rather than the purchaser (the drycleaner operator) remits the tax. The Council said it has submitted a request to the Department of Revenue that it require the collectors of the tax to list the gallonage of solvent sold to individual drycleaner operators.

AUDITOR’S OPINION

Our auditors stated the financial statements of the Drycleaner Environmental Response Trust Fund Council of Illinois as of June 30, 2000, and for the year then ended are fairly presented in all material respects.

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Sikich Gardner & Co, LLP.