Audit Services

Audit Services perfroms two separate functions: Internal Audit and External Compliance Audit.  Internal Audit Services reviews the Department's internal operations to ensure procedural compliance and efficiency.  External Compliance Audit Services examines outside businesses to verify required fees are collected and remitted within program guidelines.  These audits are designed to guard public funding from fraud, waste and abuse, to encourage adherence with program statutes and regulations and to ensure trust  in the Department's operational management.

Internal Audit

Overview

The Internal Audit function is an independent and objective assurance and advisory activity within the Audit Services Section of the Louisiana Department of Environmental Quality (LDEQ). Its purpose is to add value and improve the Department’s operations by evaluating risk management, internal controls, and governance processes. Internal Audit provides management with reasonable assurance that programs and operations are conducted in an effective, efficient, and compliant manner.

Role and Support of the Department

Internal Audit supports LDEQ by helping management identify and mitigate risks that could impact the Department’s ability to achieve its mission of protecting human health and the environment. Through systematic reviews and evaluations, Internal Audit assesses compliance with applicable laws, regulations, policies, and procedures, and identifies opportunities to strengthen controls, improve processes, and enhance accountability. By offering objective insights and recommendations, Internal Audit assists leadership in making informed decisions and improving overall operational performance.

Internal Audit Activities

Internal Audit conducts audits and reviews across LDEQ programs and functions, including financial, operational, compliance, and information technology areas. Activities may include:

• Evaluating the adequacy and effectiveness of internal controls
• Assessing compliance with federal and state environmental regulations and internal policies
• Reviewing the efficiency and effectiveness of operations and program activities
• Identifying risks and recommending improvements to processes and controls
• Providing advisory services and management consultations when appropriate
• Monitoring corrective actions to ensure audit recommendations are implemented

Internal Audit performs its work in accordance with professional auditing standards and maintains independence and objectivity to ensure credible, unbiased results. Through these efforts, Internal Audit contributes to transparency, accountability, and continuous improvement across the Department.

External Compliance Audit

Overview

The External Compliance Audit function is responsible for performing compliance audits and reviews in support of the LDEQ Waste Tire Program (WT) and the Motor Fuel Underground Storage Tank Trust Fund Program (MFUSTTF).  Waste Tire Fee and Motor Fuel Delivery Fee audits are performed to verify compliance with the Louisiana Revised Statutes and regulations for each program to include the timely remittance of all required fees.  These examinations are also performed to determine that adequate internal controls are in place to properly document, maintain, and account for the sale of tires and motor fuel products.

The External Compliance Audit function may also perform special audit projects of waste tire processosors/transporters and motor fuel responce action contractors as needed.

Waste Tire Fee Audits

The LDEQ External Compliance Audit section examines financial documents of waste tire generators for the purpose of verifying compliance with the Waste Tire Program regulations and statutes governing the sale and disposal of tires in Louisiana.  These audits generally include:

• Confirming that waste tire generators submit all monthly reports with applicable fees,
• Verifying that all fees were submitted timely and accurately with supporting evidence, and
• Determining that there is adequate records to account for all waste tires manifested from the vendor.

If all required waste tire fees are not remitted at the time of the review, the completed audits could result in financial assessments of additional waste tire fees, late fees and interest, or recommendations to other LDEQ Services for further review or action.

Motor Fuel Delivery Fee Audits

The LDEQ External Compliance Audit section performs audits of motor fuel distributors and certificate holders for the purpose of verifying compliance with the rules and statutes governing the sale and distribution of motor fuel into underground storage tanks. The audits generally include:

• Verifying the monthly reporting of motor fuel sales submittals,
• Confirming that required motor fuel delivery fees were remitted timely and accurately, and
• Determining there is adequate support and/or reasoning for the exemption of specific customers from the motor fuel delivery fee.

If all required motor fuel delivery fees are not remitted at the time of the review, the audit could result in an additional assessment of fees and/or late penalties.