REPORT DIGEST

DRYCLEANER ENVIRONMENTAL RESPONSE TRUST FUND
COUNCIL

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  March 13, 2018

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 01 -- 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 within the State. The
Council has contracted with a third party
administrator to conduct fiscal and
administrative duties, under the oversight of
the Council.

SYNOPSIS

• (17-01) The Council has several members
serving on expired terms.
OTHER MATTER

The Council’s financial projections for the
Drycleaner Environmental Response Trust Fund
(Fund) for the period of July 1, 2017,
through the Fund’s sunset date of January 1,
2020, indicated the Fund would have program
deficits of approximately $17,920,896.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EXPIRED COUNCIL MEMBER APPOINTMENTS

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

During testing, we noted Council member
appointments or reappointments had not been
made as required by the Drycleaner
Environmental Response Trust Fund Act for
four of seven Council member positions (57%).
The following chart depicts the amount of
time passed as of June 30, 2017, after each
noted Council member’s term expired:

(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 indicated the Council’s
members have applied for reappointment
directly and online and that the Council will
continue to make contacts with the Governor’s
Office to secure appointments for the terms
that have expired.  (For the previous Council
response, see Digest Footnote #1.)

OTHER MATTER

SIGNIFICANT PROJECTED DEFICIT

The Council’s financial projections for the
Drycleaner Environmental Response Trust Fund
(Fund) for the period of July 1, 2017,
through the Fund’s sunset date of January 1,
2020, indicated the Fund would have program
deficits of approximately $17,920,896 based
on program assumptions as of July 1, 2017.

According to Council officials, the Council
has several legislative and non-legislative
options to reduce the projected program
deficit.  The options under consideration are
described within the report on page 13.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Council for the year ended
June 30, 2017, 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:spn

DIGEST FOOTNOTES

#1 – Expired Council Member Appointments

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.