Environmental auditing is a management tool to objectively and systematically evaluates environment management systems with the following objectives:

i) Waste prevention and reduction: ii) Assessing compliance with regulatory requirements. iii) Placing environmental information in the public domain. Compliance with the regulatory norms, through adoption of clean technologies and improvement in management practices for prevention and control of pollution is not only mandatory but also has got wide acceptance among the industrial community. Charter on corporate responsibility for environmental protection (CREP) also calls for commitment and voluntary initiatives of industry for responsible care of the environment, which will help in building a partnership for pollution control. In view of the fact that the enforcement agencies are many times not equipped fully in terms of men power & other infrastructure to identify violation of Pollution Control norms by Industries and since there is every likelihood that the enforcement agencies may monitor only limited number of industries spread over in different areas in the entire state, the Government intends to introduce a new scheme by the name Environmental Auditing Scheme. In this scheme technically qualified professionals (Auditors) become link between Industries, enforcement agencies and Association of Industries, with added vital elements of Accountability and Transparency. The scheme intends to carry out the following Action Plan:

Identification of highly polluting industries in different sectors. Development of Standard Operating Procedures/Protocols in different sectors to assist the industry in developing self-audit programs at individual facilities for evaluating their compliance with the environmental requirements under the environmental laws and regulations for monitoring the pollution. Developing training modules to train the Regulators, Industrial and Environmental Auditors and imparting training to the stakeholders (Auditors/Industries/Regulators) Identification and accreditation of the Environmental Auditors. Development of MIS system to process the Environmental Auditing Reports. Support and guidance to industries to mitigate the pollution.

Environmental Auditing WHAT IS ENVIRONMENTAL AUDITINGResource and Environmental Consultants Limited conducts assessments of potential environmental liabilities associated with industrial, commercial, and residential properties. The transactions associated with our engagements range in size from small, single-site greenfield sites to complex multi-site brownfield deals involving industrial facilities in almost every industrial sector. We have a wide range of highly qualified, experienced technical staff that can be employed to solve any technical issue our clients have. Our staff, amongst the finest in their fields, is what delivers RECs excellent auditing reputation amongst our clients, includes Principal Environmental Auditors registered with IEMA, the Environmental Auditors Registration Association.

Financial auditing, which originated in the late 1800s, is the precise examination of the financial statements of a business. It can be carried out internally, i.e. by employees of the company concerned. However, the law requires that it is also carried out externally, i.e. by a firm of professional auditors who are not employees of the company being audited. The financial audit assesses if finances are being managed correctly, i.e. it is a check of the accounting controls within an organisation. The audit thus plays an important role in verifying if an organisation is profitable or not - important information for those running the company. Such information is commonly referred to as `the bottom line', i.e. the bottom line of an income statement gives an amount of money which reflects either a profit or loss. The bottom line, however, does not reflect environmental consequences (e.g. pollution) that may have been incurred in the process of doing business, as these are often difficult to measure in financial terms. The environmental audit is an attempt to provide information on the environmental performance of a company, and thus include environmental issues in the decision making process.

REDUCING ENVIRONMENTAL AND FINANCIAL COSTS Environmental auditing originated in the United States in the 1970s as a way of checking whether a company was complying with a multitude of new environmental laws and regulations. More recently, it is used as an extremely valuable tool for assessing a company's environmental management systems, policy, and equipment. It provides the company with recommendations on how it can improve its environmental management practices, and reduce the impact that a company is having on the environment. In addition, improved environmental practices often save money in the long run. Environmental audits can be conducted internally by staff of the business concerned, or independently by experts. Unlike financial audits, there is currently no legal requirement for an external audit.

WHO IS AUDITING Environmental audits can happen at many different levels, for example in commerce, industry, municipalities, and governments, and on a less formal level, in households and schools. Within a school, for example, an audit can focus on the classroom, the school grounds, or the entire school. Whether an audit leads to simple changes, such as a school adopting a recycling programme, or more complex changes, such as a supermarket chain introducing energy saving practices, the cumulative effect will benefit all of us.

PLANNING AN AUDIT An audit cannot be designed as a ready-made package to suit all circumstances. This framework will help you in researching and developing an audit to suit your particular needs. * Identify the situation, or place, in which you will audit, e.g. the school grounds, the home kitchen, the office. * Select the area/s or issue/s that you will audit, e.g. waste management, energy, water or biodiversity (see table below). * Identify key questions to focus your investigation within each issue, e.g. how do we attempt to reduce and reuse products, and recycle waste? * For each key question identify additional questions to investigate the issue in more detail. The Enviro Facts listed below will provide

background information to help you identify appropriate and meaningful questions. In developing these questions it is useful to consider the impacts of using a resource in your particular situation, and both before, and after your situation, for example: 1. How much pater is used in the school? 2. What are the environmental effects of afforestation and paper mills? 3. What are the environmental effects of the waste paper? * Work out remedial action, i.e. what can you do to improve the way in which resources are used. Issue: WASTE Question: How do we attempt to reduce and reuse products, and recycle waste? Additional questions: Organic material, glass, paper and card, plastic, metals, liquids (e.g. toxic wastes, oil). Enviro Facts to assist: War on waste; Pollution; Marine pollution; Toxic waste. Issue: ENERGY Question: How do we attempt to reduce the amount of energy used? Additional questions: Heaters, lights, geysers, stoves, transport. Enviro Facts to assist: Global warming; Energy options; Energy and the environment; Deforestation; Desertification. Issue: WATER Question: How do we attempt to reduce the amount of water used? How do we manage rivers, wetlands or dams on the property? Additional questions: Hostel, kitchen, bathrooms, school grounds or gardens. Pollution, riparian vegetation, erosion. Enviro Facts to assist: Precious water; Wetlands; River catchments; Estuaries; Marine pollution. Issue: BIODIVERSITY Question: How do we attempt to increase biodiversity in the grounds and buildings? Additional questions: Poisons used to kill pests, the variety of habitats in the school grounds, encouraging animals to come into the grounds, use of indigenous plants. Enviro Facts to assist: Biodiversity; Biodiversity in South Africa; Gardening for wildlife; Permaculture; Poisons in the home and garden; Soil; Soil erosion; Plant a tree today; Indigenous, alien and invasive; Traditional medicine.

HELPFUL GUIDELINES

Get support! Best results are achieved when the audit has wide support, and the changes it recommends are backed by everyone involved. Get permission for the audit from the relevant authorities; involve as many people as possible and share the results of the audit widely. Don't be dismayed: Most answers to the questions will probably be "No, we don't do this" or "No, we haven't, not yet" - the purpose of auditing is to identify where improvements can occur, not to pass or fail the institution concerned! If a great deal of work needs to be done, don't be daunted. Everything cannot change overnight, and change must be manageable, so pace yourself. The audit may lead to a two month, six month, one year or five year plan.

ACTION AFTER THE AUDIT To be successful the audit must lead to remedial action. A guide for action might be an environmental charter, such as this one drawn up by a school: AT ALL TIMES, THE PUPILS, STAFF AND FRIENDS OF STOFFELSTROOM SCHOOL WILL TRY TO: * teach everyone about the importance of caring for the environment; * keep the school and grounds clear of litter; * save energy by switching off unwanted lights and heaters, and keeping doors and windows closed; * recycle as much as possible, and use products with a recycled content; * develop and improve the school grounds and plant more trees; * keep the school a non-smoking zone.

DID YOU KNOW * These guidelines can easily be adapted for running an audit in your home, school, office, sports club or community centre. * The audit process is also useful for environmental education curriculum development (see "Further Reading" below).

FURTHER READING ENVIRONMENTAL AUDIT: TOWARDS A SCHOOL POLICY FOR ENVIRONMENTAL EDUCATION. K. Baczala. NAEE, England, 1992. Available from Share-Net, address below. ENVIRONMENTAL SENSITIVITY INVENTORY FOR SCHOOLS. C. McNerney and K. Wheeler. Available from ShareNet, address below. ENVIRONMENTAL MANAGEMENT AND AUDITING: GUIDELINES FOR SOUTH AFRICAN MANAGERS. D. Soutter and D. Mohr. WWF-SA, 1991. All books are available from Russel Friedman Books, PO Box 73, Halfway House, 1685. Tel. 011-702 2300/1. Enviro facts: "Environmental management", "Integrated Environmental Management" and "Sustainable Development".

Audit of Environmental Issues

Some environmental responsibilities facing companies include: (1) Meeting regulatory requirements or exceeding those expectations. (2) Cleaning up pollution that already exists and properly disposing of the hazardous material. (3) Disclosing to the investors, both potential and current, the amounts and nature of the preventative measures taken by management. (The requirement for disclosure is the estimated liability must be greater than 10% of the companies net worth.) (4) Operating in a way that environmental damage does not occur. (5) Promoting a company-wide "environmental attitude."

Investors are concerned about environmental responsibility. Investors want to know about potential hazards and future environmental liabilities of companies. Accounting firms are required during an audit to assess contingent liabilities, including environmental risks. Concern regarding environmental risks has led to the development of the field of environmental auditing. The International Chamber of Commerce defines the "environmental audit" as follows: The systematic examination of the interactions between any business operation and its surroundings. This includes all emissions to air, land, and water; legal constraints; the effects on the neighboring community, landscape and ecology; and the public's perception of the operating company in the local area. Environmental audit does not stop at compliance with legislation. Nor is it a 'green-washing' public relations exercise. Rather it is a total strategic approach to the organization's activities. There are several types of environmental audits. Some are as follows: (1) Compliance audits are used to ensure that the company is meeting all regulations regarding specific environmental practices, or the implications of non-compliance. (2) Systems audits focus on how systems are used internally to manage environmental risks. (3) Audits of transactions of property transfers and due diligence for purchasing property are used to reduce or to understand the potential risks involved in these transactions regarding environmental risk. Lending institutions will often require an environmental audit of a piece of property before they approve a mortgage. The lending institution does not want to run the risk of the company defaulting on the loan. In that case, the lending institution would become the owner, and if contamination exists, the lending institution might have to pay for clean up. (4) "Treatment, storage, and disposal facility" audits are used to follow different types of hazardous material throughout their life cycle, from origin to disposal. This helps ensure that they are properly disposed and stored. (5) Audits which focus on preventative measures that can be taken to reduce the amount of risk a company has if these measures are functioning. (6) Audits to determine accrual of the amount of liabilities and costs associated with environmental damages and to determine that proper disclosure of these costs have been made to the public. (7) Audits to appraise the production process itself to ensure that products meet specific requirements. Once the environmental risks have been identified, the auditor must check for compliance with accounting standards. Several rules governing environmental disclosures have been developed in recent years.

What is environmental auditing? Environmental auditing started developing at the beginning of 70s of the past century in the United States of America and in the Western Europe. In that period the developed countries were adopting the environmental legislation in order to reduce the harmful consequences of the companies' actions that had affected the environment. At the beginning the environmental auditing involved reviews of independent experts assessing whether companies operated in line with the demands of the environmental legislation. Presently the companies decide to undertake environmental audits in order to obtain an independent external assessment whether the management has created efficient environmental policy and provided for acceptable environmental attitude. The most important results of the environmental audits are recommendations how a company can reduce the damaging impacts on the environment in an efficient and cost-benefit manner, and how it can in a long-term save funds by using environment friendly technology. The implementation of the environmental audits is not obligatory for the companies never the less it shows high awareness of the companies on their social responsibilities and an overall attitude towards the environment. Greater awareness and understanding of environmental issues have led the supreme audit institutions (SAI) to recognise the key role of the state in defining appropriate measures for reducing the damaging consequences for the environment; for the efficient and effective solutions of environmental problems. The increasing concern has influenced the SAIs to introduce the environmental auditing in the public sector. Environmental auditing in the public sector encompasses independent and objective assessments whether:

the governments implement the international agreements on environmental protection, there is a complete and appropriate institutional framework for the efficient protection and preservation of the environment, there is an efficient control over the implementation of the national legislation in order to realise the set strategic objectives of protection and preservation of the environment, there is provided for the appropriate use of public funds for the assessment and for solving of the environmental problems.

Why is environmental auditing important? Most of the SAIs around the world have recognised the importance of the environmental auditing and have started implementing them as a part of their regular work. In some countries the implementation of the environmental audits is mandatory, namely

the national legislation defining the state auditing determines those audits as obligatory. In order to harmonise the methods of implementing the environmental audits and to exchange the experience in auditing this new area the Working Group on Environmental Auditing has been established within the INTOSAI. The INTOSAI Working Group on Environmental Auditing has developed a strategy for co-operation with the regional organizations of supreme audit institutions. Working Groups on Environmental Auditing operate within six regional organisations of the supreme audit institutions, i.e. AFROSAI (SAIs of African countries), ARABOSAI (SAIs of Arab countries), ASOSAI (SAIs of Asian countries), EUROSAI (SAIs of European countries), OLACEFS (SAIs of Latin-America and Caribbean countries), and ACAG/SPASAI (SAIs of South Pacific countries, Australia and New Zealand). The tasks of the working group are the development of the environmental auditing guidelines, launching initiatives to promote environmental auditing and the assistance in defining environmental auditing methodology. It is of high importance to include the environmental audits in the working programmes of the SAIs, since they can in line with their mandate, by issuing recommendations and remedial measures, contribute to:

the implementation of the adopted international responsibilities and conventions on the environment protection, the defining of the unambiguous and harmonised environmental legislation, the creation of the efficient and effective control mechanisms over the implementation of the national environmental legislation and environmental policy, the implementation of the national environmental programmes and to the allocation of public funds for the redressing the consequences of environmental problems, the efficient and economic use of public funds for the implementation of the centralgovernment and local environmental programmes and for reducing the damaging consequences.

How does the Court of Audit implement the environmental audits? With the Slovenian accession to the European Union, with the implementation of the international agreements on the environmental area, by inclusion of the key development objectives, i.e. principles of environmental balances and sustainability in the Development Strategy of the Republic of Slovenia from 2006 to 2013 and in other strategic documents, the awareness and understanding of environmental issues in Slovenia increased. Further more, the importance of the environmental auditing gained value and was introduced in the working programme of the Court of Audit. It was planned that these audits should be a common element of the Court's activities. The Court of Audit carries out the environmental audits on the basis of the Court of Audit Act, the Rules of Procedure of the Court of Audit, the INTOSAI auditing standards, the European guidelines for the implementation of the INTOSAI auditing standards and the environmental auditing guidelines adopted by the INTOSAI Working Group on Environmental Auditing. The Court

of Audit is an active member of the INTOSAI and EUROSAI Working Group on Environmental Auditing. Among the audited bodies there are Ministry of Environment and Spatial Planning and Ministry of Agriculture, Forestry and Food that carry the responsibility of preparation and monitoring of the environmental policy and commercial and non-commercial public service providers that represent the key entities carrying out the mechanisms of the environmental policy and governmental environment programmes. Up to now there have been four environmental audits carried out. They were performance and regularity audits of the audited bodies that implemented environmental policy and legislation, the audits reviewed waste management, implementation of the environmental policy on the area of water quality and preservation and protection of biotic diversity. Two audits, i.e. performance and regularity, of the implementation of the traffic infrastructure also involved the environmental aspect of the two investments. The Court of Audit implemented two international environmental audits after 2005. It closely co-operated with the SAIs of Austria, Hungary and Croatia. Previously, the Court of Audit co-operated in the implementation of the parallel audit of the implementation of the Convention on co-operation and permanent use of the Danube River and two other audits of environmental aspects of the investments in the traffic infrastructure. Some important environmental audits carried out by the Court of Audit:

the regularity and performance audit of establishing the regional parks Snenik and Koevsko - Kolpa and of the implementation of the projects for preservation of wild animals and forests, the regularity and performance audit of the establishing the Zasavje Centre for Waste Management in Unino, Hrastnik since October 2000 to the end of 2005, the audit of the appropriateness of the decision made by martno pri Litiji Municipality on waste disposal Ostri vrh near Logatec, the regularity and performance audit of the business operation of the Ministry of Environment and Spatial Planning in implementing environmental policy since 2000 to 2004.

What has the Court of Audit found out and what are the impacts of the environmental audits? The most important audit findings of the environmental audits are:

the responsible audited entities did not create the institutional framework for the protection and preservation of the environment in the due time, the responsible audited entities did not prepare planned strategic documents for the environmental policy. There were no strategic documents which would identify objectives, actions, responsible people for their implementation and expected results and impacts for each area of environment protection,

the responsible audited entities did not prepare and implement harmonised measures for the achievement of the planned objectives, instead the measures were in several cases contradictory and did not provide for the achievement of the objectives, the responsible audited entities did not provide for the co-ordination between the institutions that were also involved in the implementation of the environmental measures. Further more they did not co-ordinate nor monitor the implementation of measures, some of the national and governmental programmes of nature protection were not entirely implemented or not all of the objectives were reached, due to inconsistent implementation of the measures, the responsible audited entities did not provide the conditions for the implementation of the sustainable development on the areas where the environmental protection and co-ordinated development is very important.

The most important impact of the environmental audits as well as all other audits is the implementation of the remedial measures due to the found irregularities and inefficiencies. On the basis of the findings of the environmental audits the Court of Audit demanded form the audited bodies to prepare and adopt the strategic documents, to study the efficiency of the implementation of the environmental measures and to prepare a proposal for their coordinated implementation, to prepare guidelines for managing the protected areas. The implementation of the remedial measures is the most important mechanism that is used by the Court of Audit in order to provide for more efficient implementation of the environmental policy and the achievement of the objectives.

How does the Court of Audit plan to implement the environmental audits in the future?

Good understanding of the environmental problems, environmental legislation, responsibilities and organisation of institutions authorised for the implementation of the environmental policy is of key importance for the preparation of the proposals of the future environmental audits. The objective of the Court of Audit is to continue with the implementation of the environmental audits that

shall present and study the key environmental issues in Slovenia and that shall provide for the solution and elimination of the environmental problems. On the basis of the risk analysis referred to each area of the environment protection the Court of Audit shall define a strategy of implementing the environmental audits. In this way it shall provide for the continuous auditing of the key audit issues. A special focus will be placed on the assessment whether Slovenia achieves the set objectives of the international environmental agreements, assessment of important local environment issues and assessment whether the users of public funds are environment friendly in their operation. An important challenge is the audit of the achievements of the sustainable development of Slovenia; this audit shall include almost all working areas of the State. The Court of Audit shall also in the future co-operate with other SAIs when implementing environmental audits. The purpose of such co-operation is to exchange audit experience in order to improve the audit implementation as well as to obtain understanding of the aspects, issues and solutions of the environmental problems in other countries and to define the principles of best practice on the area.

1. HAZARDOUS SUBSTANCES MANAGEMENT AND REMEDIATION

Phase I Environmental Site Assessments EAI is on the approved/qualified environmental consultants list for many banks, savings and loans, financial institutions and insurance companies. Phase I Environmental Site Assessments (ESAs) are conducted to determine if there are any recognized environmental conditions associated with a site. It is EAI's standard practice to complete Phase I ESAs in accordance with the American Society for Testing and Materials (ASTM) Standard E1527 - Standard Practice for Environmental Site Assessments. The ASTM standard defines recognized environmental conditions as the presence or likely presence of any hazardous substances (including petroleum products) on the site under conditions that indicate a past release, existing release, or a material threat of a release of any hazardous substance into structures on the site or into the ground, ground water or surface water of the site. EAI also can, at the request of its client, include other considerations which are beyond the scope of the ASTM standard, e.g., asbestos containing building materials, lead-based paint, radon gas, lead in drinking water, and regulatory compliance issues. ESA's completed by Environmental Audit, Inc. include the following:

Rubber products manufacturer for a potential property transfer. Condominium complex in Los Angeles for a potential property transfer. Furniture manufacturing plants in Southern California for a potential property transfer. Casinos in Las Vegas, Nevada, for potential property transfer. Undeveloped land for a potential bank foreclosure. Clean room equipment manufacturing plant for potential investment purposes. Circuit Board manufacturing plants to establish an environmental baseline against which future facility operations, including hazardous waste and materials management activities.

Former paint manufacturing plant to determine the presence of contamination. Commercial property for a developer interested in redeveloping the site for an apartment complex. Vacant industrial building for a client interested in purchasing the facility to provide space for an expanding business. Residential/commercial property for a developer interested in purchasing land which contained two single-family homes, a self-service car wash and a commercial building which contained a carpet business. Shopping center for a company that was considering foreclosure to determine the potential for environmental contamination. Industrial property for a potential purchase containing a plastic bottle imprinting and distribution business and an artistic welding business. Retail/commercial property for a client interested in purchasing the site which contained a grocery store, speciality wine store, deli restaurant, antique store, several clothing stores, and a gift shop. Fiberglass plant for the owner that wanted to demolish and redevelop the site.

2. 3. HEALTH RISK ASSESSMENTS

4. 5. Health risk assessment/management issues have become increasingly important and controversial, particularly with respect to hazardous materials and air contaminants. Under pressure from concerned citizens and public interest groups, new health risk assessment and management regulations and requirements are being established by many national, regional, and international environmental regulatory agencies. Efforts are being undertaken in many countries to determine the levels of health risk associated with various current and proposed activities, projects, and alternatives. The information being gathered through health risk assessments is being utilized by public health agencies to determine whether the health risks associated with these various endeavors are "acceptable" or "unacceptable" from a public health policy perspective. The issue of health risks has become the deciding factor with respect to approval or denial for many projects. 6. Risk assessments are usually performed to determine the health impacts, both carcinogenic and noncarcinogenic, to the population exposed to the health risks. This exposure may occur via inhalation, ingestion, and/or dermal absorption of

contaminants. The potential magnitude of the health impacts is directly related to the level of exposure to contaminants. 7. Environmental Audit, Inc. believes that health risk assessments will become increasingly more important in the decisions by environmental regulatory agencies to approve or deny current and future hazardous waste management projects. Environmental Audit, Inc. has worked closely with industry and local, state, national, and international environmental regulatory agencies to prepare health risk assessments for a variety of waste management projects. Many of our projects have received approval following completion and submittal of the health risk assessment. In order to maintain its lead in this important field, Environmental Audit, Inc. monitors local, state, national, and international rules, guidelines, and research on health risk assessment issues. 8. HRAs have also become important in determining the appropriate clean up levels for contaminated sites. Many regulatory agencies are allowing the preparation of HRAs to determine the appropriate clean up levels for contaminated sites based on sitespecific conditions. These types of HRAs generally allow for the remediation of sites to more realistic levels while still protecting public health. Environmental Audit, Inc. has successfully completed health risk assessments for major hazardous waste incineration projects, petroleum refinery expansions, marine terminals, paint manufacturers, chrome plating facilities, defense contractors, vehicle manufacturers, seconday lead smelters, battery manufacturing facilities, and transportable hazardous waste treatment units. These HRAs have been prepared for compliance with CalifornAIR QUALITY MANAGEMENT AND PERMITTING

Environmental Audit, Inc. has provided consulting services for a wide variety of air quality management and permitting issues. Environmental Audit, Inc. staff has both the expertise and experience to provide effective services for all types of studies on air quality, ambient air emissions, compliance with regulatory agencies' requirements and procedures, assessing air quality problems, and determining equipment capabilities.

Air quality issues are of extreme concern in almost all portions of the United States. The Clean Air Act established the federal regulations and standards for all areas of the country, and it gave authority for implementation to the Environmental Protection Agency (EPA). States can establish their own regulations and standards which are at least as stringent as those of the federal government. The state agencies, such as the California Air Resources Board (CARB), have the authority to establish and regulate air quality standards in their jurisdictions. The state agencies are responsible for the State Implementation Plan which establishes regulations which must be imposed to attain both state and federal ambient air quality standards. In California, CARB also has authority to control air emissions from mobile sources such as vehicles, airplanes, trains, marine vessels, etc. Stationary sources of air pollution are controlled by local (regional) air pollution control districts, e.g., South Coast Air Quality Management District (SCAQMD), Bay Area Air Quality Management District (BAAQMD), Ventura County Air Pollution Control District (VCAPCD), and San Diego County Air Pollution Control District (SDAPCD). These regional agencies directly regulate air contaminants from stationary sources of emissions. The extent and nature of air quality problems vary with the geographic location and with each specific facility. It is important to determine which regulations apply to each operation, planned modification or new facility so that adequate operational and management procedures can be designed and implemented. Environmental Audit, Inc. has prepared numerous air quality analyses, modified plant designs to add best available control technology, and prepared air emissions inventories for facilities varying from small dry cleaning establishments to major incineration projects. Environmental Audit, Inc. has analyzed air pollutant impacts on painted vehicle surfaces, prepared studies on acid rain, and tracked the development of state and federal regulations designed to reduce the content of lead, sulfur and benzene in fuels. Environmental Audit, Inc.'s air quality services include: - Regulatory Analysis/Permitting - Emission Inventories - SARA Title III - Risk Management Planning Regulatory Analysis/Permitting Environmental Audit, Inc. has prepared and tracked hundreds of applications for permits to construct and/or operate from regional, state, national, and international agencies for a variety of facilities located in 14 States and in the Caribbean, Western Pacific and South America. Examples of these facilities include incineration projects, refinery modifications, spray booths, can manufacturing facilities, carpet manufacturers, vehicle import facilities, and hazardous waste treatment, transfer and disposal facilities. Environmental Audit, Inc. has assisted facilities in complying with Title V Operating Permits for various facilities. Environmental Audit, Inc. has achieved operational flexibility in Title V permitting, prepared emission inventories to determine Title V applicability, and completed

compliance evaluations to determine if facilities are in compliance with all applicable rules and regulation. In addition, Environmental Audit, Inc. provides extensive consulting services for facilities in Southern California that are subject to some of the most stringent air quality rules and regulation under the SCAQMD. Environmental Audit, Inc. is familiar with the rules and regulations that are particular to the SCAQMD including New Source Review for criteria and toxic air contaminants and the RECLAIM regulations. Emission Inventories Environmental Audit, Inc. has prepared emission inventories for criteria pollutants for various types of industrial facilities including paint manufacturers, refineries, hazardous waste treatment, storage, and disposal facilities, polyvinyl chloride manufacturing companies, plastics manufacturers, circuit board manufacturers, electronics company, defense contractors, food production facilities, and cement kilns. These emission inventories have been used to determine annual emission fees, applicability with Title V requirements, the need for additional controls, and the need for new or modified air quality permits. Environmental Audit, Inc. has prepared inventories for toxic air contaminants for industrial facilities to determine compliance with regulations, the potential for health effects, and the need for additional controls. Environmental Audit, Inc. has conducted ambient air quality monitoring for a variety of toxic air contaminants as well. Facilities that Environmental Audit, Inc. has assisted in preparing toxic air emission inventories include refineries, hazardous waste treatment and storage facilities, cement kilns, defense contractors, electronics manufacturers, cadmium plating facilities, secondary lead smelter, lead acid battery manufacturer, marine terminals, film restoration facility, cement terminals, truck washing facility, and paint manufacturers. SARA Title III Environmental Audit, Inc. has assisted facilities in meeting the reporting requirements of SARA Title III. Environmental Audit, Inc. has determined the ambient concentrations of routine emissions of air toxics, investigated the effectiveness for various control methodologies to reduce releases, developed potential accidental release scenarios, and provided information on potential health effects related to the releases. Environmental Audit, Inc. staff has both the expertise and experience to provide effective services for all types of studies on air quality, ambient air emissions, compliance with regulatory agencies' requirements and procedures, assessing air quality problems, and determining equipment capabilities. Risk Management Planning Environmental Audit, Inc. has assisted facilities in complying with risk management analyses. Studies have analyzed the potential and impacts related to a worst case or maximum reasonable release scenario, the potential health impacts, and the availability of mitigation measure to reduce potential exposures.

Risk management analyses have been prepared to comply with California's Risk Management Prevent Plan requirements, federal Clean Air Act Amendments Risk Management Program (Section 112(r)) requirements, local rules and regulations, and to determine project impacts in Environmental Impact Reports.

9. ia's AB2588 "Toxic Hot Spots" regulations, compliance with local air quality rules and regulations, to determine appropriate clean-up levels, and to determine the level of impacts for new/modified projects and facilities. Environmental Audit, Inc. has developed computerized software programs to aid in the efficient and accurate preparation of these health risk assessments, and looks forward to working with interested firms and agencies in the preparation of assessments for a wide variety of projects.

Types of Audits and Reviews The Audit Process In general, a typical audit includes the following sequential steps:

Scheduling an opening conference to discuss the audit objectives, timing, and report format and distribution. Assessing the soundness of the internal controls or business systems and operations. Testing the internal controls to ensure proper operation. Discussing with management all preliminary observations. Discussing with management the draft audit report and their responses, if available, prior to release of the final audit report. Following up on critical issues raised in audit reports to determine if they have been successfully resolved.

Internal Controls Educational Seminar Any department or organization that would like a session on Internal Controls in the University Environment should contact the Director of Internal Auditing Services at Ext. 52547 to schedule it. The seminars are typically 1-2 hours in length and include a 20-minute video on internal controls at colleges and universities. The presentation includes time for questions and answers and can be tailored to address a department's specific needs or requests.

Audits Types of Audits and Reviews: 1. 2. 3. 4. 5. 6. 7. Financial Audits or Reviews Operational Audits Department Reviews Information Systems Audits Integrated Audits Investigative Audits or Reviews Follow-up Audits

Financial Audit A historically oriented, independent evaluation performed for the purpose of attesting to the fairness, accuracy, and reliability of financial data. CSULB's external auditors, KPMG, perform this type of review. CSULB's Director of Financial Reporting coordinates the work of these auditors on our campus. Operational Audit A future-oriented, systematic, and independent evaluation of organizational activities. Financial data may be used, but the primary sources of evidence are the operational policies and achievements related to organizational objectives. Internal controls and efficiencies may be evaluated during this type of review. Department Review A current period analysis of administrative functions, to evaluate the adequacy of controls, safeguarding of assets, efficient use of resources, compliance with related laws, regulations and University policy and integrity of financial information. Information Systems (IS) Audit There are three basic kinds of IS Audits that may be performed: 1. General Controls Review A review of the controls which govern the development, operation, maintenance, and security of application systems in a particular environment. This type of audit might involve reviewing a data center, an operating system, a security software tool, or processes and procedures (such as the procedure for controlling production program changes), etc. 2. Application Controls Review A review of controls for a specific application system. This would involve an examination of the controls over the input, processing, and output of system data. Data communications issues, program and data security, system change control, and data quality issues are also considered.

3. System Development Review A review of the development of a new application system. This involves an evaluation of the development process as well as the product. Consideration is also given to the general controls over a new application, particularly if a new operating environment or technical platform will be used. Integrated Audit This is a combination of an operational audit, department review, and IS audit application controls review. This type of review allows for a very comprehensive examination of a functional operation within the University. Investigative Audit This is an audit that takes place as a result of a report of unusual or suspicious activity on the part of an individual or a department. It is usually focused on specific aspects of the work of a department or individual. All members of the campus community are invited to report suspicions of improper activity to the Director of Internal Auditing Services on a confidential basis. Her direct number is 985-2547. Follow-up Audit These are audits conducted approximately six months after an internal or external audit report has been issued. They are designed to evaluate corrective action that has been taken on the audit issues reported in the original report. When these follow-up audits are done on external auditors' reports, the results of the follow-up may be reported to those external