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