Report 2010-101 Recommendation 3 Responses

Report 2010-101: Department of Resources Recycling and Recovery: Deficiencies in Forecasting and Ineffective Management Have Hindered the Beverage Container Recycling Program (Release Date: June 2010)

Recommendation #3 To: Resources Recycling and Recovery, Department of

To improve oversight of grants and ensure that the intended value is received from the grant funds it awards, the department should do the following: For recipients of market development grants that are unable to meet the goals of their grants, maintain contact with grantees after the project is completed to determine if the goals may ultimately be achieved.

Annual Follow-Up Agency Response From October 2013

The Department surveyed recipients of the five closed Market Development Expansion (MDE)Grants that the Department determined were unable to meet their project goals. These surveys were conducted in January/ February 2012 along with follow-up contact to fully determine whether these five recipients untilmately achieved the goals. The Department will continue to survey MDE grant recipients that do not complete their grant objectives with the same survey.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Only 2 of the 5 grantees responded to the survey--of the other 3 grantees, 2 declined to participate and 1 appears to have gone out of business. Despite this low rate of response, we consider this recommendation fully implemented as the department has no further steps to take to implement our recommendation.

Annual Follow-Up Agency Response From September 2012

ABX8 7 allows the Market Development Expansion grant program to sunset on January 1, 2012. The current grants are governed by the Grant Management Procedures Manual, Section X, Project Management and Administration, Section G. Final Report and Section H. Close Out, that require CalRecycle grant managers and supervisors maintain contact with all grantees until the files are closed, both those that are on track and those that are unable to fulfill the goals of their grant. The grant files cannot be closed without explanation and final payment adjustment for any goals not met, which will not be possible until the grant agreements expire at the end of FY 2013/2014. After the grant files are closed as approved by Branch Management, CalRecycle will continue to contact grantees to assess whether the goals of the projects were ultimately achieved.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

All Recommendations in 2010-101

Agency responses received after June 2013 are posted verbatim.