REPORT DIGEST

ENVIRONMENTAL PROTECTION AGENCY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2022

Release Date:  July 20, 2023

FINDINGS THIS AUDIT: 18

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 2 -- 2
Category 2:  5 -- 11 -- 16
Category 3:  0 -- 0 -- 0
TOTAL:  5 -- 13 -- 18

FINDINGS LAST AUDIT: 18

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
FRANK J. MAUTINO, 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

• (22-3) The Agency did not have
adequate controls over the
administration of its accounts
receivable.

• (22-5) The Agency did not adequately
administer and monitor its awards and
grants programs.

• (22-12) The Agency, in cooperation
with the Illinois Emergency Management
Agency, failed to perform inspections
on the release of radionuclides at
nuclear power plants.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER ACCOUNTS
RECEIVABLE

The Environmental Protection Agency
(Agency) did not have adequate controls
over the administration of its accounts
receivable.

Excluding receivables from the Water
Revolving Fund and the Environmental
Protection Trust Fund, the Agency
reported $35.4 million in accounts
receivable, of which $12.3 million was
over one year past due as of June 30,
2022.

During testing, the auditors noted the
following:

• Five of 40 (13%) accounts receivable
tested, amounting to $268,372, were
over 120 days to 13 years past due. The
Agency had not made active collection
efforts during the examination period
or referred the accounts to the
Comptroller’s Offset System, the
Department of Revenue’s Debt Collection
Bureau, or the Attorney General.

• Eight of 40 (20%) accounts receivable
tested, totaling $27,134, were placed
in the Comptroller’s Offset System 13
to 696 days after the due dates.

• For six of 40 (15%) accounts
receivable totaling $162,540, the
Agency did not provide documentation to
determine if the Agency pursued
collection efforts. (Finding 3, pages
21-22) This finding has been reported
since 2014.

We recommended the Agency pursue all
reasonable and appropriate procedures
to collect outstanding debts as
required by Agency policies and State
laws and regulations. We also
recommended the Agency maintain records
of accounts receivable and
documentation of its collection
efforts.

Agency officials agreed with the
finding and described corrective
actions being taken.

INADEQUATE CONTROLS OVER AWARDS AND
GRANTS

The Agency did not adequately
administer and monitor its awards and
grants programs.

The Agency expended over $533 million
(72%) and $518 million (69%) for awards
and grants during Fiscal Year 2021 and
Fiscal Year 2022, respectively.   The
auditors sampled five grant programs
and noted:

• Fifty-seven of 313 (18%) progress
reports tested were submitted to the
Agency one to 297 days late.

• Four of 313 (1%) progress reports
tested did not have documentation of
submission date by the grantee to the
Agency; therefore, timeliness of
submission could not be determined.

• Sixteen of 313 (5%) progress reports
tested did not have evidence of a
review by Agency personnel.

• Seventy-two of 313 (23%) progress
reports tested were reviewed by the
Agency two to 265 days after the
submission date by the grantee.
(Finding 5, pages 28-29) This finding
has been reported since 2018.

We recommended the Agency strengthen
its controls to ensure documentation is
maintained and reviews of grantee’s
required reports are timely.   In
addition, we recommended the Agency
ensure that grantees timely submit the
progress reports to comply with the
provisions of the grant agreements.

Agency officials agreed with the
finding and responded with their
planned corrective actions.

FAILURE TO PERFORM QUARTERLY
INSPECTIONS ON THE RELEASE OF
RADIONUCLIDES AT NUCLEAR POWER PLANTS

The Agency, in cooperation with the
Illinois Emergency Management Agency,
failed to perform inspections on the
release of radionuclides at nuclear
power plants.

During our testing, we noted for one of
eight (13%) quarterly inspections
tested, the Agency did not inspect a
nuclear power plant in Illinois during
the second quarter of Fiscal Year 2021.
(Finding 12, page 44)

We recommended the Agency ensure
compliance with the provisions of the
Act by performing the inspections of
the release of radionuclides at nuclear
power plants on a quarterly basis.

The Agency agreed with the finding and
stated staff have conducted all
required quarterly inspections of the
Clinton Power Station since the missed
inspection and they will ensure
quarterly inspections will continue for
all six nuclear power plants in the
future.

OTHER FINDINGS

The remaining findings pertain to
internal controls over assets,
personnel, accounting transactions and
records, information technology and
statutory mandates. We will review the
Agency’s progress towards the
implementation of our recommendations
in our next compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Agency for the two
years ended June 30, 2022, as required
by the Illinois State Auditing Act.
The accountants qualified their report
on State compliance for Findings
2022-001 and 2022-008.  Except for the
noncompliance described in these
findings, the accountants stated the
Agency complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by Roth & Company, LLP.

JANE CLARK
Division Director

This report is transmitted in
accordance with Section 3-14 of the
Illinois State Auditing Act.

FRANK J. MAUTINO
Auditor General

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