Financial Statement Audit – Fiscal Years Ended June 30, 2022, 2023

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Report Summary

Background

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 subfunds: 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 subfund until program disbursements are made.

This engagement, a financial statement audit for Fiscal Years ended June 30, 2022 and 2023, including a review of internal controls over financial reporting on compliance and other matters, was conducted in accordance with 29 Del. C. §2906.

Key Information and Findings

This audit contains an unmodified, or “clean” opinion. An unmodified opinion 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. Further, the prior significant deficiency finding related to payroll controls specific to approval of time has been addressed by management.

The combined total net position of the Fund as of June 30, 2023 increased by $8,313,326 from June 30, 2022. The Fund realized operating income of $8,313,326 in fiscal year 2023, which represents an increase of $4,030,424 from fiscal year 2022.