Report 2010-101 Recommendations and Responses in 2014-041

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

Department Number of Years Reported As Not Fully Implemented Total Recommendations to Department Not Implemented After One Year Not Implemented as of 2013-041 Response Not Implemented as of Most Recent Response
Department of Resources Recycling and Recovery 4 18 6 2 3

Recommendation 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 implement policies to ensure that cities and counties spend grant funds for recycling purposes by requiring periodic reporting of expenses or reporting of how funds were used after the grant ends.

Response

Based on the audit recommendations, staff are changing how the program is currently monitoring active cycles (FY 2011-12, 2012-13, 2013-14) for the Beverage Container City County Payment Program. Currently, program staff request 60 random sample payment recipients to submit an expenditure report into the City/County Annual Payment and Reporting System (CAPRS). CalRecycle's will now require 60 random payment recipients to upload back-up documentation to CAPRS and program staff will review this information to ensure accountability of reported expenditures. Since these cycles have no end date which payment recipients have to expend funds by (i.e., there is no term for the program under the current agreements), program staff are unable to enforce cycle closure.

CalRecycle will implement the following changes for FY 2014-15 and future cycles:

Require all payment recipients submit expenditure reports in CAPRS by date certain. If they do not account for all funds for a specific year, CalRecycle will invoice the payment recipient to return funds.

Require all payment recipients to upload back up documentation to CAPRS. Program staff will review backup documentation of a random sample of 60 to ensure accountability of reported expenditures. This sample size may change or a tiered review approach may be considered based on accuracy and accountability of reporting.

Payment recipients that do not complete the expenditure report by the end of the 2nd year will be invoiced for the amount not reconciled. If they do not pay CalRecycle back by date certain, they will not be eligible to apply for the next cycle.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: December 2017
  • Response Date: December 2014

Recommendation To: Resources Recycling and Recovery, Department of

The department should weave benchmarks, coupled with metrics to measure the quality of its activities, into the strategic plan for the beverage program to allow it to better measure progress in meeting goals.

Response

Pursuant to Chapter 452 (AB341, Statutes of 2011), CalRecycle is required to provide a report to the Legislature by January 1, 2014, that provides strategies to achieve a 75% waste diversion policy goal that also includes other specified information. This report is forthcoming. In addition, a structural funding deficit of almost $100M in the Beverage Container Recycling Fund requires that CalRecycle work with stakeholders on a sustainable remedy that involves what could be significant program reforms. The implication of both of these efforts to a comprehensive, detailed and relevant strategic plan is significant. CalRecycle anticipates that the stakeholder processes will result in more specific proposals in the 2014 and 2015 fiscal years and will inform a formal strategic planning process that will take final form in 2015.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: 2015
  • Response Date: October 2014

Recommendation To: Resources Recycling and Recovery, Department of

The department should ensure that the strategic plan incorporates all relevant activities of the beverage program.

Response

Pursuant to Chapter 452 (AB341, Statutes of 2011), CalRecycle is required to provide a report to the Legislature by January 1, 2014, that provides strategies to achieve a 75% waste diversion policy goal that also includes other specified information. This report is forthcoming. In addition, a structural funding deficit of almost $100M in the Beverage Container Recycling Fund requires that CalRecycle work with stakeholders on a sustainable remedy that involves what could be significant program reforms. The implication of both of these efforts to a comprehensive, detailed and relevant strategic plan is significant. CalRecycle anticipates that the stakeholder processes will result in more specific proposals in the 2014 and 2015 fiscal years and will inform a formal strategic planning process that will take final form in 2015.

  • California State Auditor's Assessment of Status: Not Fully Implemented
  • Completion Date: 2015
  • Response Date: October 2014

Current Status of Recommendations

All Recommendations in 2014-041