A report by the state auditor released Friday says the program created by the state legislature to increase the recycling of beverage containers was found to have deficiencies that expose it to fraud.
Click here for the full report.
The report says the program over-relies on self-reporting from distributors and certified redemption centers and lacks adequate controls to monitor the accuracy and completeness of information submitted to them.
This could risk underpayments by distributors and overpayments to certified redemption centers, according to the state auditor.
Uncertified redemption centers may also be operating and collecting reimbursements of deposits paid, as well as handling fees, in violation of state law.
The report also says the program remains exposed to the risk of exempt beverage containers, for which deposits and container fees were not paid, entering the redemption stream.
The auditor says management must strengthen control to ensure the program is collecting deposits and container fees from distributors and the costs of administering the program are minimized.