Report 2010-101 Recommendation 11 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 #11 To: Resources Recycling and Recovery, Department of

The department should better follow its three-year plan to audit beverage distributors. Steps to accomplish this goal could include performing an analysis of risks that could result in underpayment of redemption payments or implementing policies to terminate audits after the department’s initial assessment of a beverage distributor concludes that it is unlikely that an underpayment exists.

1-Year Agency Response

The department has included a risk-based evaluation in its audit program to determine whether there is material harm to the fund and to terminate audits based on initial assessments. The department updated its current three-year audit plan to reflect this change, and its auditors received training on this risk-based process. (2012-406, p. 158).

California State Auditor's Assessment of 1-Year Status: Fully Implemented

All Recommendations in 2010-101

Agency responses received after June 2013 are posted verbatim.