To improve the accuracy of its outstanding costs related to the CLEAN loan program and federal grants, the department should do the following:
- Follow through with its plan to update its written procedures to include the changes in billing procedures for the CLEAN loan program.
DTSC implemented new written procedures to ensure Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) loan funds are accurately billed and applied to outstanding invoices. The State Auditor evaluated Recommendation 9 as Partially Implemented after DTSC's 60 day response. The new written procedures have now been formally adopted and included in a revision to DPM-CR-18, Cost Recovery: Payments.
DTSC implemented new written procedures to improve the accuracy of its unresolved backlog balance. These reconciliation practices ensure Cleanup Loans and Environmental Assistance to Neighborhoods (CLEAN) Loan funds are accurately billed and applied to outstanding invoices. The procedures require the DTSC Cost Recovery Billing Unit to invoice the DTSC Accounting Branch for sites reimbursed by Fund 1003 (CLEAN) Loan. Upon receipt of the invoice, the Accounting Branch will transfer funds from Fund 1003 (CLEAN) Loan to Fund 0557 (Toxic Substance Control Account) and will provide the CRBU with the Remittance Advice document with journal entry number confirming the transfer of funds. Upon receipt of the remittance advice document, CRBU records the transfer as a receipt for the site in the Cost Recovery Billing System. The new procedures will be finalized by December 2014 in the update to DPM-CR-18.
Agency responses received are posted verbatim.