Frequently Asked Questions about Compliance Auditing

How will this Benefit My Business?
If you have ever wanted to confirm that your business or facility was in compliance with all Department of Natural Resources environmental regulations but the potential for finding a violation during a voluntary self-audit kept you from a closer look; this program is for you. An auditor you select can check for environmental compliance on whatever practices or operations you wish. If any violations are discovered you will have up to a year to correct them while you are shielded from civil enforcement.
How Much Will This Cost?
The cost of the audit will of course be proportional to the scope of the investigation and the fee charged if you hire an outside auditor. The incentive for you is that for any violations discovered the forfeiture, if any, is capped at $500 per violation regardless of how long it occurred. If the violation is corrected within 90 days, and this can be extended to a year with DNR approval, there is no other liability. However the limited forfeiture does not apply to:
  • violations that present an imminent threat or cause serious harm to public health or the environment,
  • violations discovered by DNR before submission of an audit report, or
  • violations that were known before the audit was started
Creation of the Program
The Environmental Improvement Program (EIP) was created for progressive companies that strive to keep in compliance with all DNR and EPA regulations. It provides assurance that you will not be subject to large forfeitures for voluntarily reporting violations discovered during a compliance audit. The EIP was modeled after the U.S. Environmental Protection Agency's audit policy and was included in the 2004 Environmental Results Act, (Wisconsin Act 276) also known as Green Tier.
Am I Eligible?
Participation in EIP is open to any public or private entity. You do not have to have any DNR permits or an Environmental Management System to participate. You must have a clean environmental record for the last two years. You are not eligible if within the last two years the DNR, or any other unit of government, has filed a civil suit or citation to enforce an environmental requirement involving the audited facility.
How Do I Participate?
  • Submit a "Notice of Intent to Perform an Environmental Improvement Program Audit [PDF 55KB]" (form 4800-021) to DNR at least 30 days prior to starting the audit.
  • An auditor selected by you then checks the environmental compliance on whatever practices or operations you listed in the notice of intent form.
  • Within 365 days of the intent notice, submit a report on the audit findings using the "Environmental Compliance Audit Report Template [PDF 55KB] (Form 4800-023)."
  • If any violations are discovered, disclose them in the audit report and include a schedule of compliance stating when they will be corrected.
  • Correct any violations within 90 days or within a schedule of compliance agreed to with DNR. DNR cannot agree to schedule that extends beyond 12 months.
  • For violations that you cannot correct within 90 days, you should verify your intention to stick to your schedule of compliance by stating a dollar amount you will forfeit if you fail to meet your deadline. (stipulated penalties)
Additional Information about the Environmental Improvement Program
You may also wish to refer to a one-page fact-sheet [PDF 49KB] and slideshow [PDF 459KB] on Compliance Audits. The factsheet and this EIP program outline provides enough information for most participants, however there are some important details about the program you should be aware of.
  • Audit intent notice - The notice of intent form must be filed at least 30 days prior to starting the audit and must describe the operations or practices to be reviewed during the audit and describe the general scope of the audit. A responsibly official must sign the form to acknowledge that the program does not apply to violations discovered prior to the audit.
  • Audit report - Within 45 days of the auditor submitting the final written audit report to the participant, and within 365 days of the notice of intent, the participant must submit the audit report to DNR. The report must include the audit date, identity of the auditor, what was examined, what was found and any violations revealed.
  • Reporting violations - For all violations reported in the audit report, the following information is required:
    • description of each violation,
    • description of the actions taken or proposed to be taken to correct the violations,
    • schedule of compliance to correct the violation and
    • actions to prevent future violations.
  • Limited forfeitures - For violations that are corrected within 90 days, or within a DNR approved compliance schedule, the DNR has the option of excusing the violation or issuing a citation to collect forfeitures up to $500 per violation regardless of the number of days it continued. Violations excluded from the provisions of this act are:
    • violations that present an imminent threat or cause serious harm to public health or the environment,
    • violations discovered by DNR before submission of an audit report
    • violations that provided a substantial economic benefit,
    • violations found during required monitoring,
    • repeat violations,
    • violations discovered by the participant before the audit
  • Violation that exceed 90 days to correct - For violations that cannot be corrected within 90 days the audit report must include:
    • a compliance schedule for correcting the violations,
    • a justification of the proposed compliance schedule, and /li>
    • a description of measures taken to minimize the effects of the violations in the interim.
    • Participants are also asked to propose stipulated penalties for their failure to comply with their proposed compliance schedule. This provides an incentive to stick to the schedule but, if due to unforeseen circumstances the corrections are delayed, the participant knows the financial obligation.
  • Correction schedules and stipulated penalties - Compliance schedules cannot exceed one year and stipulated penalties cannot extend more than 6 months beyond the end of the schedule. The proposed schedule and stipulated penalties will be reviewed by DNR and it is anticipated they will generally be satisfactory. However if not satisfactory, DNR will negotiate with the participant to attempt to produce an acceptable result.
  • Public notice of violations-When the participant and DNR agree on a correction schedule that extends beyond 90 days and stipulated penalties, the audit results and the proposed solution will be publicly noticed in a newspaper and on the DNR website. The notice will identify the entity and include information about the violation. The public is allowed 30 days to submit comments on the proposed schedule and any stipulated penalties. DNR will evaluate all public comments before finalizing a schedule and stipulated penalties. This only applies to violations that are not corrected within 90 days.
  • The enforcement component - If a participant does not meet their compliance schedule, DNR will collect the stipulated penalties. Uncorrected violations would be subject to regular stepped enforcement processes which may include referral for civil action to collect forfeitures that would not be limited to $500.

Last Revised: Tuesday April 22 2008