REPORT DIGEST

ENVIRONMENTAL PROTECTION TRUST FUND COMMISSON

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2012

Release Date:   March 21, 2013

Summary of Findings:
Total this audit: 1
Total last audit:  1
Repeated from last audit: 1

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 and Full Report are also available on
the worldwide web at www.auditor.illinois.gov


SYNOPSIS

• The Commission did not have adequate controls over its
accounts receivables and collection.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO IMPROVE CONTROLS OVER ACCOUNTS RECEIVABLE

The Commission did not have adequate controls over its
accounts receivables and collection.

During our review of 34 receivable accounts, we noted
the following:

• Fifteen (44%) receivable accounts tested totaling
$232,293 were not established timely.  The time elapsed
from the due date to the set-up of receivables ranged
from 1 to 1,070 days.

• Two (6%) receivable accounts tested totaling $1,900
did not have a Memo to Establish the Accounts
Receivable.

• Fifteen (44%) receivable accounts tested totaling
$238,334 did not have demand letters or follow up
notices to the debtor when payments became past due.

• Twenty One (62%) receivable accounts tested totaling
$245,692 did not have referral letters to the
Comptroller’s Offset System when payments became 60-90
days past due.

• Eighteen (53%) receivable accounts tested totaling
$244,822 did not have referral letters to a private
collection agency when payments became 91-180 days past
due.

• Seventeen (50%) receivable accounts tested totaling
$217,966 did not reflect any requests for write-offs
being sent to the Attorney General’s Office when
payments became 365 days past due.

• Four (12%) receivable accounts tested showed that
demand or follow-up notices were sent, however, they
were sent 12 to 277 days after becoming past due.
(Finding 1, pages 7-9)

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

Commission officials accepted our recommendation and
stated the Agency is putting procedures in place to
actively pursue all past due accounts.   The Agency will
utilize the Illinois Comptroller’s Offset system in
addition to the services of a private collection agency
when applicable.   When all collection avenues are
exhausted, the Agency will be aggressive in submitting
uncollectable accounts for write off.

AUDITORS’ OPINION

We conducted a compliance examination of the Commission
as required by the Illinois State Auditing Act.  The
Commission has no funds that require an audit leading to
an opinion of the financial statements.

WILLIAM G. HOLLAND
Auditor General

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SPECIAL ASSISTANT AUDITORS

E.C. Ortiz & CO., LLP were our special assistant
auditors.