SRP Direct Billing & Cost Recovery
Beginning in 2008, the Department (DEP) started to use its new
NJEMS based billing system and continued the process for shutting down the original Direct Billing System. Both systems were designed to track the costs incurred by the DEP when overseeing environmental cleanups. These "oversight" costs are billable to the responsible parties. Collected monies are used to reimburse the Hazardous Discharge Site Cleanup Fund and the New Jersey Spill Compensation Fund. DEP employees code their timesheets electronically for time spent on specific projects. Based on an oversight cost formula found in the Oversight rules, (N.J.A.C 7:26C-9), salary costs are then calculated which include a salary additive rate, a fringe benefit rate, and an indirect rate. Since 2002 homeowners and innocent purchasers (as determined by the Department in accordance with N.J.S.A. 58:10B-2.1) have been exempt from indirect rate costs. These costs are then forwarded to the Department of Treasury’s Bureau of Revenue for billing (i.e. invoice generation) and collection.
Important Notice
The New Jersey State Legislature’s Office of Legislative Services
(OLS) recently conducted an audit of the Department of Environmental Protection’s
Site Remediation Program’s funds including its automated Direct
Billing System. The audit revealed that for the past 10 years or so, DEP
had not billed a large number of parties for oversight services rendered.
OLS also identified several areas where modifications are needed to improve
the effectiveness of the billing process.
- Bill all entities that received oversight services and were never
billed.
- DEP will not issue No Further Action (NFA) letters until these balances
are paid in full.
- Redesign the existing billing system.
- Interest will be charged on unpaid oversight bills.
- The indirect cost rate will be updated annually based on a figure
determined by an independent Certified Public Accountant (CPA). Based
on the most recent CPA report [pdf 251 Kb], SRP has revised its indirect
cost rate to 163.09% for fiscal year 2008. (Fiscal year 2008 started
July 1, 2007.) In addition, the fringe rate is being revised to 33.15%.
A summary of the recommendations, listed above, for the audit report
can be found at:
http://www.nj.gov/dep/srp/directbilling/auditreportnote.htm
A copy of the complete audit report can be found at:
http://www.njleg.state.nj.us/legislativepub/Auditor/42086.pdf [pdf 781 Kb]
Further information on changes to SRP billing practices can be found
in the recent cover letter enclosed with November 2008 mailed invoices:
http://www.nj.gov/dep/srp/directbilling/direct_billing_cover_letter.pdf [pdf 112 Kb]
If you have any questions, please check the "Frequently Asked Questions"
page or contact the Office of Direct Billing and Cost Recovery
at (609) 633-0701.
Contact:
NJ Department of Environmental Protection
Office of Direct Billing and Cost Recovery, 6th Floor West
P.O. BOX 413
Trenton NJ 08625-0413
Telephone: 609-633-0701
FAX: 609-292-1975
NOTE: If you are officially questioning or disputing an invoice you have received, we ask that you mail your correspondence to us instead of using FAX.
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Quick Billing Update Note
During the week ending 3/21/08, SRP sent out over 6000 invoices to responsible parties. Many of these invoices went to homeowners who were never previously billed for the costs associated with DEP review (oversight) of the clean-up reports that resulted from the removal of underground storage tanks from the homeowners property. As more fully discussed below in the web pages and as directed by the Auditor's report, a new automated billing system was brought on line to properly bill these cases. (These issues were discussed in letter attached to your invoice).
For further clarification, as a homeowner, even though you may have paid a contractor/consultant to remove your underground tank, you are liable for the costs associated with DEP review of the associated reports and the issuance of the No Further Action (NFA) letter. In addition, if you received State Grant Monies to cover the cost of clean-up, these funds cannot be (were not) used to pay for DEP oversight costs. We regret and apologize for the delay in billing. |
Direct Billing & Cost Recovery Information
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