Finding - Environmental Health and Solid Waste budgets did not match.
Finding - Solid Waste project costs exceeded revenues.
Finding - 1990 non-service costs were not distributed to direct service cost centers.
Finding - No written cost accounting policies and procedures.
Finding - Did not comply with 1991 budget provisos.
Finding - Costs of environmental health services to City of Seattle borne by County.
Finding - Monthly tonnage/volume reports not regularly reviewed by EHS.

There was disagreement between the Department of Public Health and the Solid Waste Division over the amount charged to Solid Waste by Public Health in 1990, resulting in the under funding of Environmental Health's solid waste regulatory function. In 1990, the amount budgeted by Public Health as revenue from the Solid Waste Division for tonnage fees and interfund transfers, and the Solid Waste Division's adopted budget for tonnage fee payments and interfund transfers to Public Health did not match. Consequently, Solid Waste Division paid Public Health less than the amount billed in 1990.

The study recommended that the Department of Public Health, the Solid Waste Division, and the Budget Office should ensure that the revenue/expense accounts between Public Health and Solid Waste Division be reconciled.

Finding 2. Solid Waste project costs exceeded revenues.

Project costs incurred in 1990 by the Department of Public Health for its solid waste activities exceeded revenues by $86,341 mainly due to underpayment of interfund transfers by the Solid Waste Division. This deficit was erased by a $17,533 contribution from the Current Expense Fund and $68,808 from the Public Health Pooling Fund and/or other Public Health projects excess receipts. In 1991, the increase in tonnage fees was increased to fully cover the cost of Environmental Health's supported solid waste activities.

Finding 3. 1990 non-service costs were not distributed to direct service cost centers.

Department of Public Health project cost accounting did not distribute indirect costs of about $200,000 to various related direct service cost centers in 1990. In 1991, the project cost accounting methodology was revised. Indirect costs were appropriately distributed to and accounted for as line items under direct service cost centers.

Finding 4. No written cost accounting policies and procedures.

The Department of Public Health does not have written policies and cost accounting procedures to provide detailed guidance and understanding of the cost accounting methodology for various public health projects. Written policies and procedure would provide information concerning the tracking and accounting of project costs, the determination of direct and indirect costs, the allocation and distribution of non-service center costs, and revenue recognition and allocation; and also would maintain continuity and consistency of accounting practices.

Finding 5. 1991 budget provisos not complied with.

As of September 30, 1991, the Department of Public Health had not yet fully complied with 1991 adopted budget provisos requiring the Department of Public Health to submit a report to the Council by July 1991. The report required an analysis of programs in which revenues exceed or do not fully fund program costs; an analysis on how current expense funds are provided to pay for the costs and services to unincorporated residents; a plan to achieve full recovery from fees, grants, and contracts; an analysis of the need for creating fund balance reserves for environmental health fee supported programs; and a proposed motion to identify financial policy issues related to implementing the overhead allocation plan.

The study recommended that the Department of Public Health comply with the provisos.

Finding 6. Costs of environmental health services to City of Seattle borne by County.

The City of Seattle per the 1984 Interlocal Agreement does not reimburse the County for its share of the costs incurred by the Department of Public Health in providing environmental health services, including some solid waste services, to the residents of the City. Some solid waste services not reimbursed by the City of Seattle are: illegal dumping investigations and follow-ups, waste exchange, and medical waste consultations. The City of Seattle also has a contract with the Department of Public Health for screening of special waste generated in the City of Seattle.

The study recommended that the County consider reviewing and negotiating changes in its funding policies with the City of Seattle to ensure full recovery of costs in providing basic public health services to the residents of the City of Seattle.

Finding 7. Monthly tonnage/volume reports not regularly reviewed by EHS.

The Environmental Health Services Division did not regularly review tonnage/volume reports of private owners of landfills, resulting in receiving inaccurate and incomplete reports and payments.

The study recommended that the Environmental Health Services Division should provide instructions to landfill owners on how to complete the monthly tonnage/volume reports. These monthly tonnage/volume reports should be reviewed regularly by the Environmental Health Services Division.

Updated: 10/25/06