• SERC has not fully met the statutory requirements for collecting the filing fee for hazardous substance reports. First, although NRS 459.744(1) requires fees to approximate cost, SERC has not determined how much it costs to process the hazardous substance reports. Second, contrary to the statute, SERC has not formally established the fee in regulation. As a result, many facilities paid the $100 filing fee even though SERC has not fully met the statutory requirements for collecting the fee. (page 10)

• Facilities paid more than $228,000 months after the statutory due date. In addition, fiscal year 1996 hazardous materials transport fees totaling $56,000 were not transferred to SERC from the Department of Motor Vehicles and Public Safety until after the year end. The failure to receive hazardous materials fees by the required due date delays the granting of these funds to LEPC's. (page 11)

• The procedures used to collect toxic chemical release fees do not ensure money is adequately safeguarded. As a result, payments totaling $26,000 were not deposited timely as required by law. (page 13)

 
• Controls have not been developed to ensure the effective management of accounts receivable. Reports do not indicate if payments on past due accounts were made or if additional collection procedures were conducted. As a result, the Commission failed to collect $1,000 from two facilities. (page 14)

 
• Procedures have not been established to ensure that all expenditures are proper. As a result, of the 15 payments we examined, 2 were for invoices that had previously been paid, 1 did not have sufficient documentation to determine if it was appropriate, and 1 included sales tax. (page 15)

 
• The grant monitoring system has not been reviewed to determine if each procedure is necessary to ensure accountability and compliance. In addition, expenditure tracking reports prepared by SERC do not always agree with those prepared by LEPC's. Unnecessary pro- cedures can result in the inefficient use of resources and inaccurate reports diminish the value of the monitoring system. (page 17)

 
• Employee work performance evaluations have not been prepared in accordance with laws and regulations. As a result, one employee had only two evaluations since 1993. (page 18)

1     Comply with NRS 459.744 when establishing fees.......             X

2     Request legislation amending NRS 459.744 to be in
        agreement with Public Law 99-499 concerning
        hazardous materials inventory reporting dates.........                  X

3     Consider requesting legislation amending NRS 459.744
        to include penalties for late payment of fees.............                 X

4     Inform facilities that late filings will be referred to the
        U. S. Environmental Protection Agency for
        additional enforcement action...................................                X

5     Develop written procedures to ensure all fees are
        deposited timely as required by law..........................                X

6     Develop written procedures to ensure all refunds are
        issued in compliance with state law..........................                 X

7     Develop written procedures to ensure accounts
        receivable are properly managed and collected.......                  X

8     Develop written procedures to ensure all expenditures
        are properly approved...............................................              X

9     Document the reconciliation of all transactions
        recorded in the contingency account for hazardous
        materials...................................................................               X

10   Conduct periodic reviews to ensure grant monitoring
        controls are cost effective and operating as intended.                X

11   Develop work performance standards and prepare
        annual employee evaluations as required by law.....                   X

12   Request assistance from the Office of Financial
        Management, Training and Controls to develop
        and implement a complete system of internal
        controls.....................................................................              X

TOTALS                                                                                       12                         0