Lydia E. York Delaware State Auditor
State of Delaware Water Pollution Control Revolving Loan Fund FY22-FY23
Financial Statement Audit – Fiscal Years Ended June 30, 2022 and 2023
Report Summary
Background
The Fund, commonly known as the Clean Water State Revolving Fund, was created by the State of Delaware Legislature in 1990.
The Fund provides below market rate interest rate loans and grants to municipalities, private organizations, nonprofit organizations, individuals, and other qualifying applicants of the state for projects that will improve water quality under the United States Environmental Protection Agency’s (“EPA”) Capitalization Grants for Clean Water State Revolving Funds federal assistance program. The federal capitalization grants require the State to provide matching funds equal to 20% of federal funds received.
During fiscal year ended June 30, 2023, the Fund received additional grants funded by the Infrastructure Investment and Jobs Act (IIJA) which to provides funds for the Clean Water State Revolving Fund Program.
The Delaware Department of Natural Resources and Environmental Control (DNREC) and the State of Delaware Department of Health and Social Services (DHSS) administers the fund.
This engagement was conducted in accordance with 29 Del. C. §2906.
Key Information and Findings
This audit contains an unmodified opinion on the financial statements. An unmodified opinion is sometimes referred to as a “clean” opinion, in which the auditor expresses an opinion that the financial statements are presented fairly, in all material respects, an entity’s financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. There were no findings required to be reported under Government Auditing Standards.
In fiscal Year 2023, DNREC received a Federal Capitalization Grant for $3,953,364 from the U.S. Environmental Protection Agency (EPA). The combined total capitalization amount on June 30, 2023 was $328,287,794 since inception of the fund. During fiscal year 2023, DNREC received additional funds from IIJA in the amount of $459,000 for the Emerging Containments and $8,738,000 for the General Supplemental grants. No amounts were expended under these grants at June 30, 2023.