Report 2013-122 Recommendation 10 Responses

Report 2013-122: California Department of Toxic Substances Control: Its Lack of Diligence in Cost Recovery Has Contributed to Millions in Unbilled and Uncollected Costs (Release Date: August 2014)

Recommendation #10 To: Toxic Substances Control, Department of

To improve the accuracy of its outstanding costs related to the CLEAN loan program and federal grants, the department should do the following:

- Continue to identify and remove outstanding costs for the federal grants when it determines it has already received funding.

6-Month Agency Response

Federal grant projects, with the exception of US EPA Support Agency - Multiple Site Cooperative Agreement (MSCA) grants, ceased being tracked in DTSC's Cost Recovery Billing System (CRBS) on June 30, 2011. In July 2014, DTSC identified 43 federal grant projects from this previous period that potentially needed adjustment. The list of 43 grant projects were analyzed and appropriate federal grant projects and associated costs were removed from CRBS. DTSC finalized and implemented federal grant adjustment desk procedures to guide Cost Recovery Billing Unit staff if further costs are identified.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

Federal grant projects, with the exception of US EPA Support Agency Cooperative Agreement - Multiple Site (MSCA) grants, ceased being tracked in DTSC's Cost Recovery Billing System (CRBS) on June 30, 2011. In July 2014, DTSC identified 43 federal grant projects from this previous period that could potentially need adjustment. Desk procedures were developed to address the identification and removal of pre-2011 unbilled costs for federal grants other than MSCA grants. Analysis and adjustment of unbilled costs will be complete by January 2015.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2013-122

Agency responses received are posted verbatim.