REPORT DIGEST

REPORT DIGEST

ENVIRONMENTAL PROTECTION TRUST FUND COMMISSION

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit 1

Total last audit 0

Repeated from last audit 0

Release Date:

March 10, 2005

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

INTRODUCTION

The Environmental Protection Trust Fund Commission is authorized by statute to accept funds from any source for the purpose of environmental protection and related enforcement programs. The Commission has no employees and has no equipment. Its members serve without compensation. The Environmental Protection Agency handles the financial activities of the Commission and absorbs administrative costs.

The Commission consists of representatives of the:

¨ Environmental Protection Agency;

¨ Department of Natural Resources;

¨ Pollution Control Board; and

¨ Attorney General.

SYNOPSIS

¨ The Commission did not devote sufficient resources to ensure that accounts receivable activities were performed in a timely manner.

{Expenditures and Activity Measures are summarized on the reverse page.}

ENVIRONMENTAL PROTECTION TRUST FUND COMMISSION

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2004

RECEIPTS AND EXPENDITURE STATISTICS

FY 2002

FY 2001

FY 2002

! Total Expenditures (All Funds)............

OPERATIONS TOTAL.........................

% of Total Expenditures...................

GRANTS TOTAL.................................

% of Total Expenditures..................

! Cost of Property and Equipment..........

! Total Receipts ....................................

$2,995,000

$2,995,000

100%

$4,582,910

$2,995,000

$2,995,000

100%

$3,588,887

$2,995,000

$2,995,000

100%

$4,989,044

COMMISSION MEMBERS

During Audit: EPA - Renee Cipriano; DNR - Brent Manning (7-1-02 through 3-31-03)/Joel Brunsvold (effective 4-1-03); PCB – Thomas E. Johnson (7-1-02 through 11-30-03)/Philip Novak (effective 12-1-03); AG - Lisa Madigan

Currently: Renee Cipriano, Joel Brunsvold, Philip Novak, Lisa Madigan

Insufficient resources dedicated to ensure accounts receivable activities were performed timely

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INCONSISTENCY OF COLLECTION PROCEDURES WITH THE COLLECTION ACTIVITIES AND LATE NOTIFICATION OF ACCOUNTS RECEIVABLE TO CASH MANAGEMENT UNIT

The Commission did not devote sufficient resources to ensure that accounts receivable activities were performed in a timely manner. We noted the following:

¨ The Commission did not report all of the receivables arising from penalties, court orders and administrative citations in a timely manner to the EPA’s Cash Management Unit.

¨ The Commission collection activities were not consistent with the Illinois Collection Act, the SAMS Manual or the collection procedures in place during the examination period or the newly developed Illinois EPA Debt Collection Process.

The receivable balance as of June 30, 2004 was approximately $5.1 million, of which approximately $2.3 million has been due over one year. (Finding 1, pp. 8-9)

We recommended the Agency continue its efforts in devoting sufficient resources to follow up on receivables, ensure proper internal reporting of receivables and comply with internal procedures to maximize the collection of receivables to avoid loss of State funds.

Agency officials accepted our recommendation and stated the Agency has assigned a full-time legal investigator to collection activities. In addition, a formal debt collection process has been established with the Attorney General’s Revenue Litigation Bureau. Lastly, the Agency has completed a new collection file protocol and created a collection file tracking report that will improve the collection efficiency and accountability of the Agency’s collection efforts.

AUDITORS’ OPINION

Our special assistant auditors conducted a compliance examination of the Environmental Protection Trust Fund Commission as required by the Illinois State Auditing Act. We have not audited any financial statements of the Commission for the purpose of expressing an opinion because the Commission does not, nor is it required to, prepare financial statements.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this audit were PTW & Co.