ENVIRONMENTAL PROTECTION TRUST FUND COMMISSON
For the Two Years Ended June 30, 2010
Summary of Findings:
Total this audit: 1
Total last audit: 0
Repeated from last audit: 0
Release Date: February 24, 2011
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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• The Commission did not have adequate controls over its accounts receivables and collection.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROL OVER RECEIVABLES AND COLLECTION
The Commission did not have adequate controls over its accounts receivables and collection.
During our review of 40 receivable accounts, we noted the following:
• Seven (18%) receivable accounts tested were not established timely. The time elapsed from the due date to the set-up of receivables ranged from two to 964 days.
• Three (8%) receivable accounts tested totaling $22,027 had no Memo to Establish the Accounts Receivable on file.
• For 20 (50%) receivable accounts tested totaling $198,416, demand letters or follow up notices to the debtor were not sent when payments became past due beyond 30 days.
• For 14 (35%) receivable accounts tested totaling $170,669, referral letters were not sent to the Comptroller’s Offset System when payments became 60-90 days past due.
• For 16 (40%) receivable accounts tested $111,417, referral letters were not sent to a private collection agency when payments became 91-180 days past due.
• For 22 (55%) receivable accounts tested totaling $97,291, requests for write-off were not sent to the Attorney General’s Office when payments became past due beyond 365 days.
• Nine (23%) receivable accounts tested had demand or follow-up notices sent from one to 35 days after becoming past due. Three (8%) receivable accounts tested were referred to a private collection agency from 89 to 803 days late. Four (10%) receivable accounts tested were sent to the Attorney General’s Office to be certified as uncollectible from 181 to 216 days late.
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 IEPA is currently reorganizing and consolidating the financial functions within the Agency. They further stated as part of this effort, the Agency is identifying additional staff resources and improved processes that include improved management, tracking, reporting, and overall control of Trust Fund Commission receivables to maximize collections and to ensure compliance with internal collection procedures.
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 financial statements
WILLIAM G. HOLLAND
SPECIAL ASSISTANT AUDITORS
E.C. Ortiz & CO., LLP were our special assistant auditors.