Delaware Hazardous Substance Cleanup Fund FY25-24
Financial Statement and Independent Auditor’s Reports
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Report Summary
Background
Financial statement audits of the State of Delaware Hazardous Substance Cleanup Fund for Fiscal Years Ended June 30, 2025 and 2024 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 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 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.
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”. In this audit, AOA expresses an opinion that the Fund’s financial statements present fairly, in all material respects, the Fund’s balance sheets and its revenues, expenditures, and changes in fund balance in accordance with the modified cash basis of accounting.
AOA found a significant deficiency in the payroll process. Of the 40 payroll items selected, 11 items did not have supervisory documentation that payroll had been reviewed. This finding is a repeat from fiscal year 2024.
The fund balance decreased from $28,437,129 as of June 30, 2024 to $22,293,901 as of June 30, 2025.
The Fund realized an operating loss of $6,143,228 in fiscal year 2025, which represents a decrease of $5,642,180 from the fiscal year 2024 net loss of $501,048. The fiscal year 2025 net loss was attributed to increased remediation activities, brownfield reimbursements, emergency response expenditures, and other environmental cleanup activities supported by the Fund.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Pooled Cash/Fund Balance | $22,294 | $28,938 | $28,938 | $20,625 | $16,342 |
| Net Change in Fund Balance | ($6,143) | ($501) | $8,313 | $4,283 | ($4,887) |