Financial Statement Audit – Fiscal Years Ended June 30, 2023 and 2024

Sign Up For Our Audit Reports Email Distribution List

---

Report Summary

Background

Financial statement audits of the State of Delaware Hazardous Substance Cleanup Fund for Fiscal Years Ended June 30, 2024 and 2023 were performed. These audits also include a review of internal controls over financial reporting and on compliance and other matters.

This engagement was conducted in accordance with 29 Del. C. §2906. The State Auditor’s Office conducts post-audits of all financial transactions of state agencies.

In July of 1990, the State of Delaware (the State) legislature passed, and the Governor signed, legislation establishing the State’s “Hazardous Substance Cleanup Act” (HSCA) (the 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. The Act also provides a funding mechanism for the program

The Fund is divided into four sub-funds: The “Cleanup Fund” for the remediation activities of the Fund and the collection of tax assessments and other revenues; the “Administrative Account” for the administrative activities of the Fund, as well as the cost recovery program; the “Voluntary Cleanup Program” for the oversight of voluntary cleanup efforts; and the “Brownfields Development Program” for the cleanup and redevelopment of vacant, abandoned, or underutilized properties, which may be contaminated. Funds are collected and deposited directly into the appropriate sub-fund until program disbursements are made.

Key Information and Findings

It is our pleasure to report this audit contains an unmodified opinion. An unmodified opinion is sometimes referred to as a “clean” opinion. It is one in which the auditor expresses an opinion that the financial statements present fairly, in all material respects, an entity’s financial position, results of operations and cash flows in conformity with generally accepted accounting principles.

AOA found a significant deficiency in the payroll process. Of the 40 payroll items selected, 4 items did not have supervisory documentation that payroll had been reviewed. The combined total net position of the Fund as of June 30, 2024 decreased by $501,048 from June 30, 2023.

The Fund realized an operating loss of $501,048 in fiscal year 2024, which represents a decrease of $8,814,374, from fiscal year 2023’s operating income of $8,313,326.

	2024	2023	2022	2021	2020
Net Change in Fund Balance	($501)	$8,313	$4,283	($4,887)	$3,165
Pooled Cash	$28,437	$28,938	$20,625	$21,229	$65,066