REPORT DIGEST

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST
FUND COUNCIL

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2016

Release Date:  April 6, 2017

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

INTRODUCTION

The Drycleaner Environmental Response
Trust Fund Council (Council) was
established to provide financial
resources for drycleaning facilities to
pay for the cleanup of drycleaning
solvent contamination. The Council
administers a mandatory license
program, a remediation program, and a
voluntary insurance program for all
retail drycleaning facilities in
Illinois.  The Council has contracted
with a third party administrator to
conduct fiscal and administrative
duties, under the oversight of the
Council.

SYNOPSIS

• (16-01) Council member appointments
or reappointments had not been made as
required by statute.

OTHER MATTERS

The Council’s financial projections for
the Drycleaner Environmental Response
Trust Fund (Fund) for the period of
July 1, 2016, through the Fund’s sunset
date of January 1, 2020, indicated the
Fund would have program deficits of
approximately $18,006,445.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

EXPIRED COUNCIL MEMBER APPOINTMENTS

During Fiscal Year 2016, the appointed
terms had expired for all seven (100%)
of the Council members as of May 1,
2007, May 1, 2008, May 1, 2013, May 1,
2015, and May 1, 2016. (Finding 1, page
7) This finding was first reported in
2007

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

The Council administrator stated they
have and will continue to make contact
with the Governor’s Office to secure
appointments for the expired terms.
(For the previous Council response, see
Digest Footnote #1.)

OTHER MATTERS

SIGNIFICANT PROJECTED DEFICIT

The Council’s financial projections for
the Drycleaner Environmental Response
Trust Fund (Fund) for the period of
July 1, 2016, through the Fund’s sunset
date of January 1, 2020, indicated the
Fund would have program deficits of
approximately $18,006,445, based on
program assumptions as of July 1, 2016.

According to Council officials, the
Council has several legislative and
non-legislative options to reduce the
projected program deficit. The options
under consideration by the Council are
described within the report on page 18.

Additionally, Public Act 098-0327
established a Drycleaner Trust Fund
Task Force (Task Force) made up of 17
appointed members to study the Fund and
make recommendations for funding and
improving the Fund. However,
appointments to the Task Force were not
made and Public Act 098-0327 was
repealed, effective January 1, 2016.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Council for the year
ended June 30, 2016, 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.

BRUCE L. BULLARD
Division Director

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

FRANK J. MAUTINO
Auditor General

FJM:JGR

DIGEST FOOTNOTES

#1-EXPIRED COUNCIL MEMBER APPOINTMENTS
- Previous Council Response

Council members have applied for
reappointment directly and online. The
Council has and will continue to make
contacts with the Governor’s Office to
secure appointments for the terms that
have expired.