WISCONSIN LEGISLATIVE AUDIT BUREAU
AUDIT SUMMARY
Report 02-19
November 2002
PETROLEUM INSPECTION FEE REVENUE OBLIGATIONS PROGRAM
The Petroleum Inspection Fee Revenue Obligations Program provides financing for payment of claims under the Wisconsin Petroleum Environmental Cleanup Fund Award (PECFA) program. As requested by the departments of Commerce and Administration, we audited the Revenue Obligations Program’s Statement of Changes in Program Assets for the fiscal years ending June 30, 2002 and 2001.
As necessary parts of the financial audit, we reviewed the program’s control procedures, assessed the fair presentation of its financial statement and notes, and reviewed compliance with applicable laws and regulations. We were able to provide an unqualified auditor’s report on the program’s financial statement and notes, and we found no instances of material weaknesses in the internal control structure or material instances of noncompliance.
Between January 2000 and June 30, 2002, the State issued $280.25 million of revenue obligations under the program. This debt has allowed the State to reduce a backlog of approved but unpaid PECFA claims. However, the Department of Commerce continues to receive claims and, as of June 30, 2002, had a backlog of over $30 million in approved claims awaiting payment. In addition, nearly $50 million in claims had been received but not yet reviewed and approved.
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