Summary

This operational audit of the Department of Environmental Protection (Department) focused on the Department’s management of State financial assistance.  The audit included the period July 2005 through February 2007 and selected actions taken through November 2007.  We found that improvements in the Department’s grants management processes were needed.

Finding No. 1:     Compliance Supplements had not been established for programs representing a significant percentage of State financial assistance disbursed during the 2005-06 and 2006-07 fiscal years. 

Finding No. 2:     The Department paid to recipients $138,734 for services provided and personnel expenses incurred prior to the time allowed for in the applicable grant agreements.

Finding No. 3:     A Department report used as the basis for reminding non-State entities of their responsibilities to provide audit reports did not include 8 entities from which audit reports were due.  Audit reports were not submitted to the Department by 11 recipients, including the 8 which did not receive reminder letters.

The Secretary's response is included at the end of this report as Appendix B.