Report 2013-122 Recommendation 2 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 #2 To: Toxic Substances Control, Department of

To improve the accuracy of the outstanding costs in its billing system, by January 2015, the department should establish a process to track its settlement agreements to ensure that department staff can verify they have updated information for outstanding costs that reflects all adjustments made for settlements paid and reduced in the billing system.

6-Month Agency Response

DTSC created new Cost Recovery Settlement and Judgment Tracking Procedures to ensure settlement agreements and resulting payments are recorded and accurately adjusted in the department's billing system. The procedures outline steps for tracking settlement agreements and judgments to ensure staff have all information necessary to make appropriate accounting adjustments in DTSC's cost recovery billing system and in California's official accounting system. DTSC also updated its Settlement/Judgment Payment Guide (Guide) and made its use mandatory, instead of as requested, every time a settlement agreement or judgment is finalized. Project Managers must now submit the Guide to inform the Cost Recovery Billing Unit how to adjust settlement payments in the billing system. The settlement agreement tracking procedures provide additional quality control and accountability by prescribing the use of DTSC's new Microsoft SharePoint document tracking and dashboard reporting system.

  • Completion Date: February 2015
  • Response Date: February 2015

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

60-Day Agency Response

DTSC is developing tracking procedures that help ensure settlement agreements and resulting payments are recorded and accurately adjusted in the department's billing system. The changes will enhance DTSC's ability to track settlement agreement processing and improve communication between employees. A database developed in July for DTSC's Office of Legal Affairs to track litigation holds and referrals for potential litigation to the Office of the Attorney General will also facilitate the tracking of settlement agreements.

  • Estimated Completion Date: January 2015
  • Response Date: October 2014

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

All Recommendations in 2013-122

Agency responses received are posted verbatim.

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