State audit: more accountability needed for environmental programs

DES MOINES - State Auditor Mary Mosiman is recommending more accountability from the Iowa Department of Natural Resources in administering environmental programs that received about $118 million in state funds over five fiscal years.

Mosiman issued audit findings Friday that call for DNR officials - in consultation with the Legislature - to establish measurable goals and benchmarks, program reporting and program evaluation requirements for the Resource Enhancement and Protection (REAP) program and the Solid Waste Alternatives Program (SWAP) to help determine the success or the failure of the programs and to ensure the projects were completed in accordance with the project agreements.

In an interview, Mosiman said there has been limited on-site monitoring of the projects for the two largest programs under DNR administration, but overseers did not maintain consistent documentation to track the use of taxpayer money for the review period from July 1, 2009, through June 30, 2015.

'We know there's an economic impact but is it measurable? We couldn't find that,” said Mosiman.

For the five-year period through fiscal 2015, Mosiman said DNR officials administered 17 grant and loan programs which provided about $118 million in financial assistance - with the REAP and SWAP programs being the largest with awards of about $38.9 million in overall financial assistance for those years.

REAP financial assistance was awarded via 311 grants to cities, counties, and private/public entities providing matching funds, and programs for conservation education totaling about $26.2 million during fiscal years 2010 through 2015. Of the $26.2 million awarded, the state audit found that $13.9 million was awarded to cities, $7.5 million was awarded to counties, $2.6 million was awarded to private/public entities providing matching funds, and $2.2 million was awarded to the Conservation Education Programs.

Loans, forgivable loans and grants to projects funded under SWAP and its two sub-programs - the Derelict Buildings program and the Environmental Management Systems program - funded effort to divert and reduce waste in landfills, increase recycling and develop educational materials.

A total of 309 SWAP projects were awarded about $12.7 million during fiscal years 2010 through 2015. Of the $12.7 million awarded, the state audit found $8.9 million consisted of $4.1 million of forgivable loans, $3.3 million of interest free loans, and $1.5 million for loans with 3-percent interest rates. The remaining $2.8 million awarded were for grants issued under the two sub-programs.

In a letter, Mosiman and Warren Jenkins, a deputy state auditor, noted that the legislation establishing the REAP and SWAP programs did not include measurable goals, but they added 'it is important DNR periodically evaluate the REAP programs to determine their overall impact on the enhancement and protection of the state's resources.

'DNR also does not measure the actual tons of materials diverted from landfills or other measurable goals for SWAP projects,” they added. 'As a result, the overall success of the REAP and the SWAP programs and the benefits realized by the State are not readily known.”

Mosiman noted that DNR officials implemented comprehensive written policies and procedures regarding on-site monitoring in spring 2014, which she called 'a good start” but not enough to ensure 'taxpayers have a comfort level the money being appropriated is achieving the purpose intended.”

In DNR responses included in the audit, agency officials said it would be difficult if not impossible to determine the portion of diversion or reduction of waste to Iowa landfills that could be attributed only to SWAP efforts. They also noted that measuring the return on investment for REAP was not considered in the enabling legislation and would be impractical for grant recipients to measure.

'The department considers the fact the program has been ongoing for 26 years a testament to the success of the program,” according to a DNR response included in the state audit. 'REAP is consistently funded by appropriation every year and the number of grants requested annually exceeds funds allocated. In addition, at the REAP Congress, held every other year, delegates have voted to not make changes to the program.”

For her part, the state auditor recommended DNR officials continue to develop on-site monitoring procedures for the REAP and SWAP programs, such as developing comprehensive written policies that include the frequency of on-site monitoring, the selection process, procedures to be performed during on-site monitoring, and procedures for documenting and following-up on any findings identified during on-site monitoring.

Mosiman also recommended DNR officials work with the Legislature to establish measurable goals, program reporting, and program evaluation requirements for the REAP and SWAP programs to determine the success of the programs and the benefits realized by the state.

A copy of the report is available at the state auditor's website.