For the third consecutive review, the Louisiana Legislative Auditor has cited the Louisiana Department of Environmental Quality for problems with internal audits.
“An agency with an appropriation level of $30 million or more is required by Louisiana Revised Statute (R.S.) 36:8.2 to have an internal audit function and to annually certify to the department Secretary that the internal audit function conforms to the IIA Standards,” the report reads. “Considering DEQ was appropriated $146 million for fiscal year 2023 and $154 million for fiscal year 2024, an effective internal audit function is important to ensure that DEQ’s assets are safeguarded and management’s policies and procedures are uniformly applied.”
The report, released on Monday, details how the department did not have adequate controls in place to monitor the collection of penalties and settlements for the Hazardous Waste Site Cleanup Fund.
For one settlement agreement, DEQ didn’t collect all scheduled penalty payments by the due date established in the agreement. The remaining balance of $6,500 was required to be provided to DEQ by September 2022; however, the remaining penalty has not been collected, as of June 30, 2024, and no evidence was provided to show collection efforts were made between these dates.
In a letter dated Dec. 20, Sec. Aurelia S. Giacometto says LDEQ does not concur with the findings for the following reasons:
- The voluntary nature of the expedited penalty program, the variables regarding signed agreements and withdrawal option;
- Discretionary nature of withdrawing the expedited penalty;
- No prescribed timeframe for issuance of formal penalty.
Giacometto writes that of the three identified deficiencies, two of the three have been collected as of Dec. 20, with the third settlement expected to be paid within the next four months.
Read the auditor’s summary, or check out the full 15-page report.
