REPORT DIGEST

 

ENVIRONMENTAL PROTECTION AGENCY

 

FINANCIAL AUDIT

For the year ended June 30, 2006

AND COMPLIANCE EXAMINATION

For the two years ended

June 30, 2006

 

Summary of Findings:

Total this audit                          5

Total last audit                          7

Repeated from last audit           3

 

Release Date:

April 26, 2007

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 and Report Digest are also available on the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

SYNOPSIS

 

 

·        The Agency did not conduct employee performance evaluations in a timely manner. 

 

·        The Agency’s Director appointed an Industrial Hygiene Examining Board as required; however the board has been inactive since October 1994.

 

·        The Agency did not publish an annual report on the progress of pollution prevention as required by the Illinois Pollution Prevention Act and did not submit the 2005 Annual Illinois Water Quality Report as required by the Rivers, Lakes and Streams Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 


ENVIRONMENTAL PROTECTION AGENCY

FINANCIAL AUDIT for the Year Ended June 30, 2006

AND COMPLIANCE EXAMINATION for the Two Years Ended June 30, 2006

 

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

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

 

$388,533,502

$389,837,640

$592,016,400

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

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

$180,514,788

46.5%

$170,670,057

43.8%

$195,718,343

33.1%

         Personal Services........................

            % of Operations Expenditures

            Average No. of Employees....

$59,984,340

33.2%

1,070

$60,345,975

35.4%

1,112

$59,324,021

30.3%

1,196

         Other Payroll Costs (FICA, Retirement)................................

            % of Operations Expenditures

 

$23,942,881

13.3%

 

$29,048,810

17.0%

 

$24,744,541

12.6%

         Contractual Services...................

            % of Operations Expenditures

$83,748,287

46.4%

$70,983,692

41.6%

$78,841,147

40.3%

         All Other Operations Items..........

            % of Operations Expenditures   

$12,839,280

7.1%

$10,291,580

6.0%

$32,808,634

16.8%

 

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

         % of Total Expenditures  

 

 

$208,018,714

53.5%

 

$219,167,583

56.2%

 

$396,298,057

66.9%

     Cost of Property and Equipment......

$26,828,917

$27,836,056

$61,707,059

SERVICE EFFORTS AND ACCOMPLISHMENTS (Not Examined)

 

FY 2006

 

FY 2005

 

FY 2004

CLEAN AIR

  Title V permits issued ……………………

  Facilities inspected......................................

  Vehicle emission tests performed.................

 

190

2,084

1,894,000

 

150

2,255

1,830,000

 

237

2,149

2,083,930

CLEAN LAND

  Facility permits issued ……………………

  Facilities inspected......................................

  Cleanup programs:

     Superfund constructions completed..........

     State cleanup projects completed.............

  Leaking Underground Storage Tanks:

     Incidents reported..................................

  Household Hazardous Waste Collections

 

740

4,721

 

1

6

 

503

30

 

645

3,154

 

1

3

 

549

35

 

649

4,727

 

2

6

 

633

39

CLEAN WATER

  Permits issued............................................

  Facilities inspected......................................

  Financial assistance:

      Wastewater loans issued........................

      Drinking water loans issued.....................

 

9,822

1,439

 

26

22

 

10,212

1,471

 

23

34

 

10,397

1,438

 

12

37

AGENCY DIRECTOR(S)

During Audit Period:  Renee Cipriano (7-1-04 through 6-30-05), Douglas P. Scott

                                    (effective 7-1-05)

Currently:                     Douglas P. Scott

 


 

 

 

 

 

 

 

 

 

Performance evaluations not performed timely

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Board appointed but not active since October 1994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency to seek legislation to repeal State law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Failure to publish annual report on pollution prevention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency to seek legislation to repeal annual reporting requirement

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

 

EMPLOYEE PERFORMANCE EVALUATIONS NOT   PERFORMED ON A TIMELY BASIS

 

      The Agency did not conduct employee performance evaluations in a timely manner for 12 out of 50 (24%) employees tested during the examination period.  The time elapsed from the employee’s previous performance reviews ranged from 13 to 52 months.  In 4 out of 50 (8%) employee personnel files tested, the Agency conducted employee evaluations within the last 12 months; however, the evaluation period ranged from 15 to 36 months.  (Finding 1, page 10)  This finding was first reported in 1994.

 

      We recommended the Agency comply with internal procedures, Administrative Code rules and prudent business practices by performing annual evaluations for all employees in a timely manner.

 

      Agency officials accepted our recommendation and stated the Agency continues to strive for performance evaluations to be completed timely and the Office of Human Resources has increased its efforts to track performance evaluation due dates and to ensure that the appropriate manager or supervisor is aware of the need to complete reviews in a timely manner.  (For the previous Agency responses, see Digest footnote #1.)

 

 

LACK OF INDUSTRIAL HYGIENE EXAMINING BOARD

 

      The Agency’s Director appointed an Industrial Hygiene Examining Board as required by the Industrial Hygienists Licensure Act (Act) in October 1994; however, the board has been inactive since then. 

 

      The Act requires the Director to appoint a board consisting of five persons to serve in an advisory capacity.  Four members shall be certified or licensed industrial hygienists and one member shall be of the public to represent consumer interests.  The Board is charged with recommending to the Director the adoption of all policies, procedures, and rules which may be required or deemed advisable in order to perform the duties and function conferred on the Board, the Director, and the Agency to carry out the provisions of the Act.  (Finding 2, page 11)

 

      We recommended the Agency comply with the Act or seek legislative remedy to the statutory requirement.

 

      Agency officials accepted our recommendation and stated the Agency will seek legislation to repeal the Industrial Hygiene Licensure Act.

 

 

NON-COMPLIANCE WITH POLLUTION PREVENTION REPORTING REQUIREMENTS AND ANNUAL ILLINOIS WATER QUALITY REPORTING REQUIREMENTS

 

      The Agency did not publish an annual report on the progress of pollution prevention as required by the Illinois Pollution Prevention Act (Act). 

 

      The Act states the Agency shall on an annual basis utilize the source reduction and recycling information required to be reported for toxic or hazardous materials and assess and report the progress of pollution prevention and make a comparison for all facilities in Illinois.  In addition, the Agency did not submit the 2005 Annual Illinois Water Quality Report as required by the Rivers, Lakes and Streams Act.  The Rivers, Lakes and Streams Act requires the Agency to submit the Illinois Water Quality Report to the Governor and General Assembly on an annual basis.  (Finding 3, page 12)

 

      We recommended the Agency comply with statutory requirements to publish an annual report on the progress of pollution prevention or seek legislative remedy.  Further, the Agency should ensure the Illinois Water Quality Report is submitted to the Governor and General Assembly on an annual basis. 

 

      Agency officials accepted our recommendation and stated the Agency is currently seeking a legislative change to eliminate the Pollution Prevention annual reporting requirement.  The Agency will also request that the Governor require the Illinois Water Quality Report be submitted biennially, which will parallel submissions under the federal Clean Water Act.

 

 

OTHER FINDINGS

 

      The remaining findings are reportedly being given attention by the Agency.  We will review progress towards the implementation of our recommendations during the Agency’s next examination.

 

     

AUDITORS’ OPINION

 

      Our special assistant auditors stated that the Water Revolving Fund of the Illinois Environmental Protection Agency as of and for the year ended June 30, 2006 is fairly stated in all material respects.

 

 

     

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JSC:pp

 

SPECIAL ASSISTANT AUDITORS

 

      Our special assistant auditors for this audit were Crowe Chizek and Company, LLC.

 

 

DIGEST FOOTNOTES

 

 

#1 – EMPLOYEE PERFORMANCE EVALUATIONS NOT PERFORMED ON A TIMELY BASIS – Previous Agency Response

 

2004:  Accepted.  The Agency has attempted to improve the timeliness of performance evaluations.  The Office of Human Resources will increase its efforts to track performance evaluations due date and to ensure that the appropriate manager or supervisor is aware of the need to complete reviews in a timely manner.