REPORT DIGEST

ENVIRONMENTAL PROTECTION TRUST FUND
COMMISSION

Compliance Examination
For the Two Years Ended June 30, 2014

Release Date:  June 23, 2015

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  1 -- 1 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 1 -- 2

FINDINGS LAST AUDIT: 1

Category 1:	Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2:	Findings that are
significant deficiencies in internal control
and noncompliance with State laws and
regulations.
Category 3:	Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

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

• (14-1)  The Commission failed to
adequately establish and monitor its
accounts receivable.
• (14-2)  The Commission had inadequate
controls over receipts.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER RECEIVABLES AND
COLLECTION

The Environmental Protection Trust Fund
Commission (Commission) did not have
adequate controls over the administration of
its account receivables.

During our review of 25 receivable accounts,
we noted the following:
• Seven (28%) receivable accounts tested,
totaling $485,800, were not established
timely. The time elapsed from the due date
to the set-up of receivables ranged from 7
to 107 days.
• Eighteen (72%) receivable accounts tested,
totaling $1.452 million, were over 90 days
past due and had not been referred to the
Comptroller’s Offset System or the
Department of Revenue’s Debt Collection
Bureau.  In addition, 13 of 25 (52%)
accounts tested totaling $3.803 million were
over one year old and were not referred to
the Attorney General for write off.
• Four of 25 (16%) account balances tested
had incorrect balances reported. The
differences totaled from $24 to $10,000.
(Finding 1, pages 8-9)  This finding was
first reported in 2010.

We recommended the Commission pursue all
reasonable and appropriate procedures to
collect on outstanding debts as required.
We also recommended the Commission ensure
its accounts receivable balances are
correctly reported.  We further recommended
the Commission refer overdue accounts to the
appropriate parties when required.

Commission officials agreed with the
recommendation and stated collection efforts
for the Trust Fund Commission’s accounts
receivable balances had fallen behind during
Fiscal Years 2013-2014.  Several years ago,
much of the Commission’s current $10.700
million accounts receivable balance was
referred to the Comptroller’s offset system
for collection efforts and referred to the
Attorney General’s office for potential
write-off (respectively, $7.985 million and
$7.302 million) but further actions were not
taken to follow-up on these referrals during
Fiscal Years 2013-2014.  In addition, the
Commission agrees the TFC accounts
receivable which became past due during
Fiscal Years 2013-2014 were not referred to
the Comptroller or the Attorney General in a
timely manner.  (For the previous Commission
response, see Digest Footnote # 1.)

INADEQUATE CONTROLS OVER RECEIPTS

The Commission did not have adequate
controls over receipts.

During our testing, we noted the following:
• Five of 25 (20%) receipts tested, totaling
$176,853, were deposited from 2 to 22 days
late.
• For 3 of 25 (12%) receipts tested,
totaling $93,200, the receipt date was not
documented so we could not determine whether
they were deposited timely. (Finding 2, page
10)

We recommended the Environmental Protection
Agency ensure Commission receipts are
deposited timely and the receipt date is
documented.

Commission officials agreed with the
recommendation and stated they have
strengthened its procedures to ensure
deposits are made timely and the required
information is recorded.

ACCOUNTANT’S OPINION

We conducted a compliance examination of the
Commission for the two years ended June 30,
2014 as required by the Illinois State
Auditing Act.  The auditors stated the
Commission complied, in all material
respects, with the requirements in the
report.

WILLIAM G. HOLLAND
Auditor General

WGH:PH

AUDITORS ASSIGNED

This examination was performed by the Office
of the Auditor General’s staff.

DIGEST FOOTNOTE

# 1 - INADEQUATE CONTROLS OVER RECEIVABLES
AND COLLECTION

2012: Accepted. 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.