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new jersey department of environmental protection  
site remediation program

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 2007 mailed invoices:

http://www.nj.gov/dep/srp/directbilling/direct_billing_cover_letter.pdf [pdf 149 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: 609-633-1439