What Was Performed? A financial statement audit of the Delaware Department of Natural Resource and Environmental Control’s Hazardous Substance Cleanup Fund for Fiscal Year 2021. WhyThis Engagement? In July 1990, the General Assembly passed legislation establishing the Delaware’s Hazardous Substance Cleanup Act. This act establishes standards to be followed to protect the public health and welfare of citizens and the environment of the state from releases of hazardous substances. This engagement was performed in accordance with 29 Del. C. § 2906. The fund generated over $8 million in revenue in FY21 but accrued liabilities of over $13 million. Although funding is adequate to meet DNREC’s annual expenditure plans and carryover funds exist, the cost of the future cleanup of orphaned sites exceeds the money available in the fund. What Was Found? It is my pleasure to report this audit contained an unmodified opinion1 on the financial statements. However, it contained one finding related to payroll internal controls. Six of 42 employee records sampled showed no evidence of supervisory review and approval prior to being paid. It is recommended that the fund’s management reinforce effective internal controls in accordance with the Budget and Accounting Policy Manual. Additionally, the supervisors of the six employees identified should be retrained in the proper use of the agency’s time-management software. The Delaware Department of Natural Resources and Environmental Control, Hazardous Substance Cleanup Fund Financial Statement Audit for Fiscal Year ended June 30, 2021, can be found on our website at auditor.delaware.gov.
DE
United States
