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Environmental Protection I nspector General (2441} September, 2000
Agency Wastii ngton D C 20460
Office of Inspector General
Strategic Plan
Through 2005
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Linking Our Work to Outcomes and
Impacts
All of our work is planned based on the anticipated
value toward influencing resolution of the Agency's
major management challenges, reducing risk,
improving practices, program operations and saving
tax payer dollars, while leading to the attainment of
EPA's Strategic Goals.
"Start With the End In Mind"
ecommendatio
Advic
Asencv Action
Creating a Nexus or Link Between OIG Products/
Services and Environmental Impacts/Goals
Linkage of OIG Products and Services to Improve EPA Business Practices and Impact.
Audit, Evaluation, Advisory,
Investigative Products & Services
Agency Intermediate Outcomes
(Catalysts)
Agency Goals/Outcomes
and Impacts
Questioned Costs/Savings
Recommendations/Opinions
Advice/Analysis/Projects
Indictment/Convictions
Civil/Administrative
Fines/Restitutions
Reports/Briefings
Evaluation Conclusions
Legislative Change
Regulatory Change
Policy Change
Practice Change
Enforcement Actions
Industry, Grantee or
State Monitoring
$s Recovered, Offset or Avoided
Improved Efficiencies
Improved Effectiveness
Improved Controls
Increased Compliance
Improved Reporting
Risk Reduction
Improved Environmental &
Health Results/Indicators
Above is a Logic Model of how our work is planned and designed to influence Agency action,
creating a nexus or linkage between OIG products and services and environmental impacts and goals.
Examples below are prospective EPA outputs and outcomes potentially resulting from Agency acceptance of
our products and services. Environmental impacts and management improvements are logical extensions of
actions taken on audit, evaluation, investigation, advisory products and services
Water & Air Quality
Safe Food & Waste Management
Asst. Agreements & Financial Mgt;
Enforcement and Compliance;
Sound Science and Data Quality
Increased number of watersheds restored
Percentage of population with clean water
Number of states with approved standards
consistent with the Clean Water Act
Quality of stewardship strategies - Percentage
of people with healthy indoor air
Number of states with good air quality
Quality of enforcement actions for
timely site resolution
Number of construction remedies to
control risks to human health
Number of sites cleaned up
Number & quality of pesticides tolerance
assessments and reregistrations -
Percentage of people with safe food
Percentage of people with better treatment
of and access to clean water
Cost accounting information that is
reliable and useful for decision making
Better enforcement actions for better
compliance and reduction of actual risk
Integrity of data used for management,
policy and enforcement actions
Picture on the Cover is of the Grand Tetons, Courtesy of Roland Cyr
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D. C. 20460
THE INSPECTOR GENERAL
September 29, 2000
FOREWORD
I am pleased to present the EPA-OIG's second strategic plan. This plan builds on our past
accomplishments and establishes new directions for contributing to improved environmental
quality and human health and for improving OIG performance. It charts our course through 2005
and demonstrates our commitment to lead by example.
Our new directions include:
Q performing program evaluations to provide Congress and the Agency with best
practices, analyses, and recommendations to address the most serious management
challenges, accomplish environmental objectives, and achieve Government Performance
and Results Act (GPRA) goals;
Q partnering with others, including other Federal and State auditors, evaluators, law
enforcement officials and associations who also have environmental missions, to leverage
our resources to attain maximum environmental benefits with available resources; and
Q implementing human resource and knowledge management strategies that will ensure
we have a diverse, highly motivated and accountable staff with the skill sets and tools
needed to perform increasingly complex work.
Our employees, customers, stakeholders and partners all play critical roles in the achievement of
our goals. They provided valuable insights and assistance in developing this strategic plan. We
look forward to continuing to work together to achieve our mutual goal of improving
environmental quality and human health.
Nikki L. Tinsley
The follow ing page is a graphic summary of how we plan to strategically link our work and
initiatives with our vision and expected outcome?,.
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Vision
We are agents of positive change striving for continuous improvement in
our Agency's management and program operations and in our own office.
We contribute to environmental quality, human health, and good
government through problem prevention and cooperative solutions.
Mission
# Promote economy, effectiveness and efficiency within the agency
# Prevent and detect fraud, waste, and abuse in agency programs and operations
1. Contribute to
improved environment^
quality and human
health
1
Goals
2. Improve EPA's
management and
program operations
II
3. Produce timely,
quality and cost
effective products
and services that
meet customer needs
4. Enhance
diversity,
innovation,
teamwork and
competencies
Objectives
O Influence significant
programmatic changes to
legislation, regulations, policy,
processes and practices that
have a positive impact on the
environment and human health
D Identify and recommend
solutions reducing the highest
environmental risks
D Identify best practices in
EPA, states and other Federal
agencies that have directly
contributed to improved
environmental quality and
human health impacts
O Identify opportunities for
improving economy,
efficiency and
accountability in EPA
programs and operations
D Improve the integrity of
EPA programs and
operations by identifying
actual and potential
vulnerabilities for fraud
and risk reduction
O Help EPA resolve its
major management
challenges
O Provide the right
products, at the right
time, to the right
customers, at the right
cost
D Build infrastructure,
relationships and
partnerships to leverage
change
D Increase professional
image and demand for
products and services
O Improve organizational
systems and business
processes
D Increase recognition for
creativity, innovation and
teamwork
D Promote continuous
learning and demonstrated
competencies in EPA
programs, professional
skills, technical skills and
leadership skills
Strategic Areas of Emphasis
1. Air
2. Water
3. Safe Food
4. Waste Management
5. International Issues
6. Environmental Data
7. Scientific Research
8. Enforcement &
Compliance Assistance
1. Financial Management
& Cost Accounting
2. Assistance Agreements
3. Contracts
4. Computer Security
5. Human Capital
6. Systems
1. Customer Focus
2. Partnering
3. Business Planning
(product/process design)
4. Integrated Measurements
(performance linkages)
5. Outcome Orientation
(Begin with the end in mind)
6. Activity Based Costing
(project management)
1. Human Capital (skills
& development)
2. Communications (trust
& understanding)
3. Organizational
Realignment (matrix
management)
4. Integration of High
Performance Culture
5. Integrated Knowledge
Information Systems
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EPA Office of Inspector General Strategic Plan FY 2001 - 2005
TABLE OF CONTENTS Page Number
Introduction [[[ 1
Our Vision and Mission [[[ 1
Our Leadership Philosophy and Values ........................................ 3
EPA's Goals [[[ 4
OIG Goals, Products, Services and Customers/Stakeholders ........................ 5
Our Strategic Areas of Emphasis by OIG Goal ............................. 6
Goal 1: Contributing to Improved Environmental Quality
and Human Health 7
Goal 2: Improving EPA's Management and Program Operations 11
Relationship of OIG Emphasis Areas to EPA's Goals .................................. 14
Major Management Challenges [[[ 15
Relationship of EPA Major Management Challenges to Planned OIG Emphasis Areas .......... 17
Means To Implement Our Business Line Strategies .................................... 18
Goal 3: Producing Timely, Quality and Cost Effective Products and Services
that Meet Customer Needs ........................................... 21
Goal 4: Enhancing Diversity, Innovation, Teamwork, and Competencies ...... 24
Key External Factors That May Affect Achievement of Our Goals .................... 28
Benchmarking Our Results ................................................. 29
Improving Our Performance ................................................ 29
APPENDIX 1: EPA Goals [[[ 31
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Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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INTRODUCTION
Our overall goal is to provide audit, evaluation,
investigative, and advisory services resulting in
improved environmental quality and human
health. Our employees, customers, stakeholders
and partners all play critical roles in the
achievement of this goal. Therefore, they were
extensively involved in the development of our
plan, including the development of our vision,
goals, and values. We consulted with Agency
managers and key Congressional staff, and met
with our partners- GAO, other Federal IGs and
State auditors.
ISIO
ISSIO
VALUES
OBJECTIVES
MEASURES
BUSINESS LINE STRATEGIES
GANIZATIONAL & PROCESS STRATEGIES
Our work will contribute to good government through problem prevention and cooperative solutions. We
will seek opportunities to influence positive change by developing cooperative relationships with our
Agency and Congressional customers; maintaining collaborative partnerships with GAO, other Federal IGs
and State auditors; and promoting the benefit of joint work to leverage more effective results. We will
evaluate our overall success using a balanced scorecard of measures contributing to improving
environmental quality and human health, return on budget investment, customer service, and employee
innovation and competencies.
OUR VISION AND MISSION
Our Vision
We ai
Agency's management and program operations and in our own office. We contribute
to environmental quality, human health, and good government through problem
Our Mission
Inspector General Act Requirements:
Conduct and supervise independent and objective audits, evaluations and investigations relating to
agency programs and operations.
Promote economy, effectiveness, and efficiency within the agency.
Prevent and detect fraud, waste, and abuse in agency programs and operations.
Review and make recommendations regarding existing and proposed legislation and regulations
relating to agency programs and operations.
Keep the agency head and Congress fully and currently informed of problems in agency programs
and operations and on the status of corrective actions.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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The OIG in EPA: Background, Role and
Authority: Congress passed the Inspector General
Act of 1978 (Public Law 95-452) establishing Offices of
Inspector General within 12 (originally, now at least 60)
Federal Agencies, including the Environmental Protection
Agency, to consolidate existing investigative and audit
resources in independent organizations headed by
Inspectors General. EPA established its Office of
Inspector General (OIG) in 1980.
The major way IGs are different from other
Federal offices is their independence
The authors of the Inspector General Act recognized
that Inspectors General, to be effective, would need both
an unusual degree of independence and a close working
relationship with their Agency heads. Accomplishing
our mission and goals requires that we carefully maintain
our independence while assisting the Agency in improving its management and program operations.
Inspectors General are authorized to:
Q Initiate and carry out independent and objective audits, evaluations, and investigations;
Q Issue subpoenas for information and documents;
Q Have direct access to all records and information of the Agency;
Q Have ready access to the agency head;
Q Report serious or flagrant problems to Congress;
Q Hire and control their own staffs, including Senior Executive Service positions;
Q Contract for resources, services, and expert advice;
Q Administer oaths for taking testimony; and,
Q Request assistance from any Federal, State, or local government.
Appointment of the Inspector General. The Inspector General of EPA is nominated by the President
and confirmed by the Senate without regard to political preference based on his or her personal integrity
and expertise in:
Q accounting, auditing, financial analysis;
Q law, management analysis, public administration; and
Q investigations.
Presidentially appointed IGs can be removed only by the President, with notification to both houses of
Congress of the reasons for such removal.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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OUR LEADERSHIP PHILOSOPHY AND VALUES
1. The OIG is an organization built on trust and personal empowerment.
2. Each person is valued and contributes to our collective success.
3. Leadership is everyone's responsibility.
4. Responsibility and accountability for organizational success resides with each person.
>ur individual values are:
1. Personal integrity. It is our most important asset.
2. Personal Leadership. We are positive role models leading by example.
3. Dignity, Respect, Fairness, Honesty, and Courtesy. We treat each other as customers.
4. Honoring Commitments. We keep promises.
5. Win-Win. We strive for mutually beneficial relationships and results.
Our operating system values are:
1. One OIG. Teamwork within, among, and between staff leverages shared competencies.
2. Open Communication. Information will be disseminated quickly and widely.
3. Customer Focused. We meet agreed-upon customer expectations.
4. Results Oriented. Our results are fast, accurate, complete, and plainly stated.
5. Creative. We support and encourage innovation and responsible risk-taking.
6. Independence, Integrity, Professionalism. We bring these to the Agency.
7. Continuous Learning and Improvement. These are foundational to high performance.
8. Reward and Celebrate Success. Organizational and individual success is linked to values.
OIG Hierarchy of Goals Start with the End In Mind
EPA is charged with protecting and improving the environment and human health. As a part of EPA, the
OIG must also support that mission, but the OIG cannot directly improve the environment or human health.
We do believe, however, our work can and should indirectly contribute to these improvements. Therefore,
we developed a hierarchy of interrelated strategic goals, each linked to outcome objectives, measures and
strategies committed to that end. These goals are both internally focused towards improving the OIG and
externally focused towards improving EPA.
Focusing internally on OIG improvements is our foundational strategic goal involving our people and work
culture expectations. We believe our primary goal ofbuilding a skilled, diverse and motivated work force
of competent people is a requisite to our next goal of generating effective and efficient products and
services that meet customers needs. Focusing externally on EPA improvements, and building on our two
internal goals, is our goal of - improving EPA program management and operations. Collectively, we
believe accomplishment of all of these goals will contribute to attainment of EPA's Goals and our ultimate
goal of- improving the environment and human health.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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EPA'S GOALS
Work of the Office of Inspector General is designed
to support and contribute to the achievement of the
goals identified in the Agency's strategic plan. These
goals are:
" The mission of the United States
Environmental Protection Agency
is to protect human health, and to
safeguard the natural environment
- air, water, and land- upon which
life depends"
;an Air
Clean and Safe Water
Safe Food
Preventing Pollution and Reducing Risk in Communities, Homes,
Workplaces, and Ecosystems
Better Waste Management, Restoration of Contaminated Waste Sites,
and Emergency Response
Reduction of Global and Cross-Border Environmental Risks
Quality Environmental Information
Sound Science, Improved Understanding of Environmental Risk, and
Greater Innovation to Address Environmental Problems
A Credible Deterrent to Pollution and Greater Compliance with the
Law
. Effective Management
See appendices 1 and 2 for a detailed description of each Agency goal and FY 2001 budget request
for each goal.
4
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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OIG GOALS
1. Contributing to improved environmental quality and human health
2. Improving EPA's management and program operations
3. Producing timely, quality and cost effective products and services that meet
customer needs
4. Enhancing diversity, innovation, teamwork and competencies
OIG Products and Services The Work We Do
Audits
Systems
Financial Statement
Contract
Assistance Agreements
Computer Security
Fact Finding
Program Audits
and Evaluations
Process
Outcome
Impact
Cost-Benefit
Advisory/Analysis
Legislation & Regulation
Review
GPRA Implementation
Control Assessment
Fraud Prevention
Presentations & Workshops
Investigations
Program Integrity
Contract & Procurement
Employee Integrity
Assistance Agreements
Hotline
Computer Forensics
EPA OIG Customers, Clients and Stakeholders Include
EPA Administrator, Agency Management, Agency Programs, and Staff
Congress
President and Office of Management and Budget
American Taxpayers, Including Future Generations
State and Local Governments
OIG Staff
Other Federal Agencies, Including GAO and the Department of Justice
The Law Enforcement Community
EPA Contractors and Grantees
Media and Public Interest Groups
Professional and Industry Associations
Listening to the Voice of the Customer - Always a Work in Progress
The EPA OIG Strategic Plan reflects the ideas and concerns of a wide range of customers, clients, partners and
stakeholders, including our staff, Agency managers, Congress, States, and others. We collected information
through: (1) surveys; (2) reports; (3) analysis of strengths, weaknesses, opportunities and threats; (4) meetings;
and (5) interviews. We used specific evaluation criteria to determine our goals, objectives, measures, and
strategic areas of current and emerging concern. This is a dynamic process, and we will continually collect and
evaluate new information from our customer and client base to revise our plans, activities, and the measurements
of our performance to constantly improve our products and services.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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OUR STRATEGIC AREAS OF EMPHASIS BY OIG GOAL
Business Line Goals - The value we addforEPA& its stakeholders
Goal 1. Improving th<
and Human Heah
l.Air
2. Water
3. Safe Food
4. Waste Management
5. International Issues
6. Environmental Data
7. Scientific Research
8 Enforcement & Compliance Assistance
Goal 2. Improving EPA's M
and Program Operations
1. Financial Management & Cost Accounting
2. Assistance Agreements
3. Contracts
4. Computer Security
5. Human Capital
6. Systems
Process, Organizational and Customer Goals - How well we work
Goal 3. Producing timely, quality and Goal 4. Enhancing diversity, innovation,
cost effective products and services teamwork and competencies
that meet customer needs
OIG Organizational Cornerstone Strategies
1. Customer Focus
2. Partnering
3. Business Planning (product/process design)
4. Integrated Measurements (performance linkages)
5. Outcome Orientation (start with the end in mind)
6. Activity Based Costing (project management)
7. Human Capital (skills & development)
8. Communications (trust & understanding)
9. Organizational Realignment (matrix management)
10. Integration of High Performance Culture
11. Integrated and Knowledge Information Systems
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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GOAL 1: Contributing to improved environmental quality and human health
i
Objectives
Q Influence significant programmatic changes to legislation, regulations, policy,
processes and practices that have a positive impact on the environment and
human health. By 2005, the OIG will recommend 350 improvements across EPA's environmental
goals. These will contribute to at least 10% improvement, or prevent 10% environmental indicator
loss, in at least 10 of EPA's environmental program performance objectives for air, water, safe food,
and waste management.
Q Identify and recommend solutions for reducing the highest environmental risks.
By 2005, the OIG will identify and recommend solutions and/or enforcement actions that reduce or
eliminate at least 100 risks of loss to health and environmental quality across EPA's environmental
goals.
Q Identify best practices in EPA, states and other Federal agencies that have
directly contributed to improved environmental quality and human health
impacts. By 2005, the OIG will identify at least 100 best and innovative environmental practices
and actions that can be applied and transferred to or within EPA, influencing at least 10% of EPA's
performance measures.
Results We Intend to Achieve (cumulatively):
> By 2001: 25 improvements; 15 risks; 15 best practices affecting EPA performance measures.
> By 2002: 75 improvements; 30 risks; 30 best practices affecting EPA performance measures.
> By 2003: 150 improvements; 50 risks; 50 best practices affecting EPA performance measures.
> By 2004: 250 improvements; 75 risks; 75 best practices affecting EPA performance measures.
> By 2005: 350 improvements; 100 risks; 100 best practices affecting EPA performance measures.
How We Will Measure Our Progress
/ Legislative Changes
/ Regulatory Changes
/ EPA Policy or Directive Changes
/ Risks Identified
/ Best Practices Identified
/ % of Recommendations Implemented
/ Risks Reduced or Eliminated
/ % of Best Practices Implemented
/ # of Performance Measures Affected
/ % of Performance Measures Affected
/ Examples of Environmental Improvements
/ # of Best Practices Transferred
/ % of Recommendations Accepted
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Strategic Areas of Emphasis for Goal 1.
1. Air
2. Water
3. Safe Food
4. Waste Management
5. International Issues
6. Environmental Data
7. Scientific Research
8. Enforcement &
Compliance Assistance
While we plan to perform work related to each of EPA's ten
goals we will concentrate on the eight areas listed here. Our
work will be designed to help the Agency achieve its
environmental goals in the most effective and efficient way.
We will continue to focus on assessing the Agency's
operations to identify best practices, areas for improvement,
and cooperative solutions to problems identified. We will
perform work related to new programs, activities, and systems
to timely identify potential system and control weaknesses and
to make recommendations to prevent problems from
occurring. Our work will assess the Agency's implementation
of the Government Performance and Results Act (GPRA), including its goals, objectives and
measurements, and the quality of data available to measure achievement of these goals.
Areas of emphasis for our 2001-2005 work are described below. We selected these areas based
on: (1) past work in the area; (2) information on environmental risk and the risk of fraud, waste
and abuse; and (3) the results of our employee and customer surveys. Our annual performance
plans will describe in more detail our approaches and strategies for each of these areas.
J
Air - Air quality improvements achieved during EPA's first quarter century are responsible for
many of the greatest human health and ecological gains from implementation of Federal
environmental laws. More recently, however, local governments and industry have cited rising
costs and diminishing health benefits in arguing against Agency decisions to tighten air quality
standards. Further, questions have been raised about the quality of science used to justify new air
quality rules. Our approach to assessing EPA's achievement of its clean air goal will include
gaining an understanding of key air programs and identifying major opportunities for cost-effective
risk reduction. As described below (emphasis area on Scientific Research), we also plan to analyze
the use of scientific research in carrying out Agency programs, including the air program.
Water - EPA reports that the overwhelming majority of Americans, more than 218 million, live
within 10 miles of a polluted lake, river, stream, or coastal area. In addition, EPA estimates a $277
billion investment will be needed in water supply systems and wastewater treatment facilities over
the next 20 years. Our work will focus on gaining a better understanding of the overall needs and
challenges in protecting the Nation's water resources, important regional or watershed issues like
the Everglades and western farming, ensuring safe drinking water, assessing the need for better
water quality monitoring information, determining the extent of water infrastructure needs and
costs, and assessing the effectiveness of point and non-point source programs. Further, we will
assess whether the Agency has comprehensive contingency plans ensuring continuity and protection
of essential water functions across a wide range of potential emergencies, such as terrorism.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Safe Food - Over the past decade the public debate about food safety — originally shaped by
revelations of cancer-causing pesticides used on farming produce — has matured to reflect an
understanding of cumulative dietary exposures from multiple food products causing a variety of
cancer and systemic health effects. In the Food Quality Protection Act, Congress charged EPA
with filling the gaps in science necessary to determine pesticide food tolerances that adequately
address new concerns, such as cumulative exposure and health effects unique to children, and
developmental effects on the unborn. These issues have focused public attention on EPA's
established methods for assessing systemic health effects and raised criticism of the science
underlying food tolerance decisions.
On another front, biotechnology has broadened the American public's concern about the potential
for unforeseen consequences from genetic research applications to improve crop harvests and
control pests. With the explosion in genetic research over the past few years and prospects for
even greater growth in the future, EPA must assess the capacity of its review processes to keep
pace with this rapidly expanding field. In evaluating the Agency's accomplishment of its safe food
goal, we plan to look at how EPA works with the Food and Drug Administration and the
Department of Agriculture to ensure the safety of the nation's food supply. In this regard, we will
look for possible duplication of efforts or key areas that are not being addressed. Evaluating the
scientific research supporting EPA's decisions about pesticides will also be an important part of our
strategy for work in this area.
Waste Management - GAO estimates that cleanup of the nation's nuclear and other waste sites
could cost the Federal government about $300 billion and the private sector hundreds of billions
more. Our work will focus on determining the extent of sites remaining to be cleaned up, the
environmental risks these sites pose, and how efficiently and effectively EPA is using appropriated
funds for cleanup of hazardous waste sites. Since many of the sites remaining to be cleaned up are
on Federal lands, we will work closely with the GAO and other Federal IGs to accomplish our
work.
International Issues - Water pollution is one of the principal environmental and human health
problems facing small communities located along the U.S./ Mexico border. An area we have
focused on in the past and plan work in the future is the Agency's initiative to provide people living
along the U.S/Mexico border with adequate drinking water, wastewater collection, and treatment
systems.
The Great Lakes basin, along the Canadian border, is home to more than one-tenth of the U.S.
population and has some of the world's largest concentrations of industrial capacity. Environmental
challenges include contaminated sediments, the effects on exotic species, and the loss of habitat.
We have identified the Agency's management of the Great Lakes Program as one of EPA's top
management challenges. Accordingly, we plan to monitor the Agency's actions to restore and
maintain the integrity of the basin.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Environmental Data - We identified environmental data systems as one of the top challenges
to effectively accomplishing EPA's goals. Having the right data at the right time is important for:
(1) managing EPA's programs, (2) monitoring and reporting on environmental quality, and (3)
holding individuals and organizations accountable for achieving specific goals and objectives.
Therefore, we will monitor EPA's actions to identify key data it needs and ensure that systems and
controls are in place to obtain and disseminate relevant and reliable data. Since EPA relies heavily
on the States and other Federal agencies for data on environmental quality, our work will support
the Agency's initiatives to: (1) institute data standards that ensure data compatibility, and (2)
ensure that data quality is known and appropriate for its intended uses. Also, since EPA has
budgeted over $500 million for modernization of its information systems through 2003, we will
review Agency system development and identify opportunities to strengthen methodologies,
controls, and cost efficiencies.
Scientific Research - Scientific data is essential for supporting EPA's decisions. Sound science
enables EPA to identify the most important risks to human health and to use this information in
setting priorities and making other decisions to fulfill EPA's mission. We will analyze EPA's
scientific and peer review programs to evaluate their integrity and independence from regulatory
activities. We will also evaluate the effectiveness of scientific data in influencing program
management decisions including, improper activities in laboratory work used to support EPA
decisions. We will also continue our investigative initiative to uncover criminal activity in the
conduct of laboratory work by contractors and others upon which EPA relies.
Enforcement and Compliance Assistance - Enforcement and compliance assistance are
two of the tools EPA uses to mitigate and avoid risks to human health and the environment. Our
work in this area will focus on evaluating the cost and effectiveness of EPA's compliance activities
in achieving environmental protection and identifying the strengths or weaknesses of EPA's
enforcement efforts in maximizing public health and the environment. We will look for ways for
EPA to achieve greater environmental protection at a reduced cost. Since States provide the vast
majority of enforcement and compliance actions, we will evaluate the effectiveness of EPA and
State relationships, including EPA's efforts to build capacity within the States to ensure compliance
with the nation's environmental laws. We will make recommendations to EPA for improving
compliance, and to Congress when we identify changes to laws that could result in more efficient
and effective ways to achieve environmental protection.
-I U Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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GOAL 2. Imnrovins EPA's Management and Program Oneratio
Objectives
G Identify opportunities for improved economy, efficiency, and accountability in
EPA programs and operations. By 2005, the OIG will identify potential cost savings,
recoveries and fines equaling at least two times the annual dollar investment in the OIG.
Q Improve the integrity of EPA programs and operations by identifying and
reducing actual and potential vulnerabilities for fraud and risk reduction By
2005, the OIG will reduce and prevent the risk of loss from fraud by contributing to at least 250
cumulative criminal, civil, or administrative actions.
QHelp EPA resolve its "major management challenges." By 2005, the OIG will
spend at least 15 percent of available time identifying EPA's Major Management Challenges and
advising the Agency on eliminating each management challenge within three years of its
designation as such, and achieving a rating in the top 20 percent of all agencies for
implementation of the Results Act.
Results We Intend to Achieve:
> By 2001: 100% return on investment (ROI) in IG annual budget; 50 actions reducing risk; and
determine baseline for status of GPRA implementation rating.
* By 2002: 100% ROI; 100 actions reducing risk; 5% time on EPA Management Challenges
> By 2003: 150% ROI; 150 actions reducing risk; 7% time on EPA Management Challenges
* By 2004: 150% ROI; 200 actions reducing risk; 10% time on EPA Management Challenges
*• By 2005: 200% ROI; 250 actions reducing risk; 15% time on EPA Management Challenges
How We Will Measure Our Progress
/ Questioned Costs
/ Recommended Efficiencies
/ Criminal/Civil/Administrative Actions
/ Fines, Recoveries & Restitutions
/ Time Saved (cycle time)
/ % of Recommendations Implemented
/ Best Practices Identified/Implemented
/ Examples of Process/Practice Changes
/ Costs Avoided or Saved
/ % Improvement In GPRA Rating
/ Time to Resolve Management Challenges
/ % Satisfaction with EPA Service Quality
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
11
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Strategic Areas of Emphasis for Goal 2.
1. Financial Management
& Cost Accounting
2. Assistance Agreements
3. Contracts
4. Computer Security
5. Human Capital
6. Systems
While we plan to perform work related to each of EPA's ten
goals, we will concentrate on the six cross-cutting business
areas listed here. Our work will be designed to help the
Agency achieve its environmental goals in the most effective
and efficient manner. We will continue to focus on assessing
the Agency's operations to identify best practices, areas for
improvement, and cooperative solutions to problems identified.
We will perform work related to new programs, activities, and
systems to timely identify potential system and control weaknesses and to make
recommendations to prevent problems from occurring. Our work will assess the Agency's
implementation of the GPRA, including its goals, objectives, and measurements, systems and the
quality of data available to measure achievement of these goals.
Areas of emphasis for our 2001-2005 work are described below. We selected these areas based
on: (1) past work in the area; (2) information on environmental risk and the risk of fraud, waste,
and abuse; and (3) the results of our employee and customer surveys. Our annual performance
plans will describe in more detail our approaches and strategies for each of these areas.
J
Financial Management and Cost Accounting - We identified financial statement
preparation as one of EPA's top management challenges. We will continue to conduct the financial
statement audits mandated by statute, and identify any further improvements needed in financial
management processes, systems, and controls. In addition, we will provide advice and assistance to
Agency managers on developing and implementing financial reporting processes and systems for
accumulating reliable, timely, and useful information on the cost of EPA's program activities.
Ultimately, our goal is to work with Agency managers to integrate cost and program information in
a way that allows them to make the best decisions about how to use available resources to
maximize environmental results. This data will also be a valuable tool to increase accountability
within the Agency.
Assistance Agreements - EPA spends about half of its budget on assistance agreements,
making them the primary means through which EPA delivers environmental and human health
protection. Our work in this area will determine whether: (1) recipients are achieving the goals of
the assistance agreements, (2) the agreements contribute to the attainment of EPA's goals, (3)
recipients are effectively managing funds, and (4) Government laws and regulations are adhered to.
In addition, we will continue our efforts to identify high-risk grantees and criminal and
administrative misconduct in the award and delivery of EPA assistance agreements.
12
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Contracts - EPA spends about one fourth of its budget on contractor support. Our contract
work will evaluate whether EPA's contracts are being awarded and administered in a manner that
supports cost-effective accomplishment of EPA's mission. In addition, we will continue our audits
of contractor costs and our investigative work to uncover criminal and administrative misconduct in
the award and delivery of contract services.
Computer Security - EPA offices are dependent on computers and environmental data to
manage and monitor environmental progress and risks. EPA's computer systems are also used to
manage the Agency's financial resources and administrative activities. We plan to: (1) monitor
computer security weaknesses previously identified by our office and the General Accounting
Office, (2) identify new and emerging vulnerabilities to computer security, and (3) advise the
Agency of any additional computer security enhancements needed to reduce the risk of damage and
disruption to EPA's critical systems. We will also continue performing criminal investigations of
intrusive activities affecting EPA computer security and participate with other law enforcement
agencies in the growing effort to protect computer security.
Human Capital - EPA relies on a workforce of approximately 18,000 employees to carry out its
environmental mission. Maintaining a highly trained and motivated workforce is essential for EPA
to attain its environmental objectives. To accomplish its goals, EPA employees need to know how
their work fits into the attainment of those goals, and be held accountable for and rewarded for their
contributions. Our work will evaluate EPA's management of its human capital, including how it
determines its staffing needs in terms of numbers of staff and skills needed to accomplish its
mission. We will take advantage of best practices and lessons learned from our own experiences to
evaluate and identify improvements that assist the Agency in managing its human capital.
Systems - We will use the President's Quality Award criteria to evaluate EPA's organizational
systems and capacity to achieve its mission and goals. Specifically, we will identify best practices
and areas for improvement in the Agency's: (1) leadership, (2) strategic planning, (3) customer
focus, (4) information systems and analysis, (5) human resources management and development, (6)
process management, and (7) business results. We will evaluate the Agency's systems of financial,
management and administrative controls, and the integration of performance measures to protect
EPA's resources and make sound, well supported decisions.
The following chart shows the relationship between EPA's goals and our planned
strategic emphasis areas.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005 -I J
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Relationship of OIG Emphasis Areas to EPA's 10 Goals
EPA Goals
->
OIG
Emphasis
Areas
Pollution Waste Global Envir.
Prevention Mat. Issues Info.
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Hazar
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Enforcm,,
Compliani
Assistanci
X
X
X
X
X
X
Finani
Manage-
X
X
X
X
X
X
X
X
X
X
Assist;
Agreemen
X
X
X
X
X
X
X
X
X
X
X
X
Capit.
X
X
X
X
X
X
X
X
X
X
Systems
XX XX
X X X X
X
X
The OIG generally provides coverage to all of EPA 's goals, as needed, but those listed are the strategic areas
of emphasis.
14
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Major Management
Challenges
At the request of Congress, Inspectors' General
annually identify the Major Management
Challenges facing their respective departments
and agencies. The Major Management
Challenges in EPA represent areas of systemic
weaknesses or specific vulnerability seriously
threatening the success or integrity of Agency
operations.
We will continue working collaboratively with
Agency managers to provide advice and
recommendations to help EPA resolve these Challenges. We identified the following areas as
major management challenges during fiscal 2000. The Agency is taking action to correct several of
these challenges, but other remain unresolved.
Accountability
Environmental Data Information Systems
Backlog of National Pollutant Discharge
Elimination System (NPDES) Permits
Oversight of Assistance Agreements
Employee Competencies
EPA's Computer Systems Security
Quality of Laboratory Data
Agency Process for Preparing Financial
Statements
Super fund Five-Year Reviews
Great Lakes Program
Accountability - EPA must develop accountability systems. Internally, these systems must establish
accountability and identify costs for Headquarters and Regional employees related to EPA Goals.
Externally, these systems must identify costs and establish performance expectations for grantees and
contractors related to EPA goals.
Environmental Data Information Systems - EPA has not developed an overall strategy to
address the completeness of its environmental data. As a result, EPA's ability to evaluate the
outcomes of its programs in terms of environmental changes will continue to be limited by gaps and
inconsistences in the quality of its data and in EPA's requirements for data across programs.
Backlog of National Pollutant Discharge Elimination System (NPDES) Permits - A key
element of the Agency's effort to achieve its overarching goal of clean and safe water is the reduction
of pollutant discharges from point and nonpoint sources. Under the NPDES program, EPA
establishes controls on pollutants discharged from point sources into the waters of the United States.
EPA recognizes that the backlog of issuing NPDES permits is a nation-wide problem that otherwise
could adversely affect human health and aquatic life. The Office of Water developed a corrective
action plan scheduled for completion in 2004 to resolve this issue.
Oversight of Assistance Agreements - Our prior work identified weaknesses in the Agency's
communication of its expectations, monitoring of grantees' performance, and the improper use of
grants when it should have contracted for work.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
15
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Employee Competencies - The Agency recognizes that one of its biggest challenges over the next
several years is the development and implementation of a strategy that focuses the Agency's attention
and resources on human capital. Appropriate recruitment, contracting, partnering, and training for
staff, including supervisors and managers, is critical to EPA mission accomplishment.
EPA's Computer Systems Security - EPA relies on its information systems to collect, process,
store, and disseminate vast amounts of information used to assist in making sound regulatory and
program decisions. The OIG and General Accounting Office have identified significant and pervasive
problems regarding the security of EPA's computer systems.
Quality of Laboratory Data - Some scientific analyses prepared by EPA and its contract
laboratories and other sources is fraudulent or otherwise lacks quality and should not be used to
support environmental decisions. As a result of data quality problems in contract laboratories, EPA
laboratories, and other laboratories upon which EPA depends, EPA must determine the impact that
fraudulent analyses have had on environmental and enforcement decisions. EPA must devote
additional efforts to ensuring the integrity of all scientific analyses influencing its actions. The OIG
work in reporting on the quality of environmental data by Federal facilities initiated the creation of a
Federal task force to address the lack of Federal standards for environmental data quality.
Agency Process for Preparing Financial Statements - The Agency encountered significant
difficulties in preparing its annual financial statements. These difficulties highlight the need for EPA
to strengthen its coordination and quality control processes to ensure accurate data is available on a
timely basis to prepare the financial statements and to manage the Agency's environmental programs.
Superfund Five-Year Reviews - The Superfund statute requires that remedial actions, where
hazardous substances, pollutants, or contaminants remain on-site, be reviewed every five years to
assure that human health and the environment continue to be protected. This issue is of growing
importance because containment remedies have been used more frequently since 1992. Our most
recent audit of this area showed: (1) the backlog of reviews is growing, (2) approximately 30 percent
of the five-year review reports did not contain a definitive statement on protectiveness or information
in the report seemed to conflict with the statements made, and (3) results of the reviews were not
being reported to the Congress or the public.
Great Lakes Program - We reported EPA needed to improve and complete its Lake-wide
Management Plans and Remedial Action Plans, which were established as systematic and
comprehensive ecosystem approaches to address the Great Lakes. These plans were taking
considerably longer to complete than expected. Without these plans, there was no assurance that
EPA was doing the most cost-effective and highest priority activities needed to protect the Great
Lakes. EPA and its partners have been slow in restoring and maintaining the integrity of the Great
Lakes basin.
The following chart shows the relationship of these major management challenges to our planned areas of
emphasis.
-I O Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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RELATIONSHIP OF EPA MAJOR MANAGEMENT CHALLENGES
TO PLANNED OIG EMPHASIS AREAS
EPA Mgt.
Challenges
-»
OIG
Emphasis
Areas
employee
tits tanc
State-
3 Year Great
Reviews Lakes
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
17
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MEANS TO IMPLEMENT OUR BUSINESS LINE STRATEGIES
Business Line Products and Services The Work We Di
Audits
Systems
Financial Statement
Contract
Assistance Agreement
Computer Security
Fact Finding
Program Audits
and Evaluations
Process
Outcome
Impact
Cost-Benefit
Advisory & Analysis
Services
Legislation &
Regulation Review
GPRA Implementation
Control Assessment
Fraud Prevention
Presentations &
Workshops
Investigations
Program Integrity
Contract & Procurement
Employee Integrity
Assistance Agreements
Hotline
Computer Forensics
Systems Audits review the economy, efficiency and effectiveness of operations by examining the
Agency's leadership systems, its strategic planning, human resources development, customer focus and
process management. These reviews also focus on the integration of performance and financial
information to manage and assess results, and determine the extent of compliance with applicable laws
and regulations to improve the integrity and management of assets and resources.
Financial Statement Audits consist of audits of the Agency's financial systems and statements to
ensure that adequate controls are in place and the Agency's accounting information is accurate,
reliable and useful, and complies with applicable laws and regulations. Our objective is to assist EPA in
making improvements in the financial management processes and controls which will provide better
information for decisions promoting the most cost effective results.
Contract Audits determine the eligibility, allocability, and reasonableness of costs claimed by
contractors and assure that EPA pays only for what it requests and receives. They include audits of
EPA contractors' indirect cost proposals and pre-award, interim, and final contract cost submissions.
Our contract work also includes evaluating whether EPA's contracts are being awarded and
administered in a manner that supports achievement of the Agency's environmental mission.
Assistance Agreement Audits consist of financial and performance audits of EPA's State
Revolving Fund program, Performance Partnership Grants, interagency cooperative agreements and
assistance agreements, all of which provide assistance to state, local and tribal governments;
universities; and nonprofit recipients, and account for about half of EPA's budget. Our work builds on
the Single Audit Act; focuses on resource-intensive, high-risk programs; and helps to ensure that EPA-
funded assistance agreements are being awarded and administered in a manner that supports
achievement of the Agency's environmental mission.
Fact Finding is the service the OIG provides as the "honest broker" to answer specific questions or
gather information at the request of the Agency, Congress, or other customers.
18
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Program Audits and Evaluations use sophisticated analytical tools, methodologies and
specialized skills, applied with a broad perspective to determine the extent to which the desired results
or benefits envisioned by the Administration and Congress are being achieved. They involve the
systematic measurement and analysis of environmental, economic, and other external outcomes,
benefits, and results in relation to the application of resources and legislative and policy initiatives.
They assist the Agency in implementing GPRA by selectively verifying and validating performance
measures, data, and results. Four types of evaluations include:
Process: Assesses the extent to which a program is operating as it was intended.
Outcome. Assesses the extent to which a program achieves its outcome-oriented objectives.
Impact: Assesses net effect of a program by comparing outcomes with the absence of the program.
Cost Benefit: Compares the program's outputs or outcomes with the costs to produce them.
Phase I Evaluations (Review) (1) Reviews of program offices' GPRA plans to assess whether
relationships between environmental programs and outcomes are documented and understood; (2) reviews of
available performance information on key processes, outcomes, impacts, and cost-benefits; (3) prioritizing
possible evaluation questions and issues; (4) incorporating Phase I findings into "knowledge baseline" report
highlighting major information gaps; and (5) developing Phase II plans.
Phase II Evaluations (Analysis) (1) The conduct and coordination of multiple evaluations of program
performance, including process, outcome, impact and cost-benefit evaluations as defined and prioritized in
Phase I; and (2) development of individual program performance evaluation/audit reports including practical
opportunities for improving performance, measured by program outcomes and impacts.
Phase III (Synthesis) (1) Combining the results of Phase I and II into a comprehensive picture of the
environmental program, its GPRA planning structure and baseline performance; and, (2) presenting
recommendations for improving the planning structure, filling data gaps, and making programmatic changes
that will result in significant improvements in the program's environmental performance.
Advisory and Analysis Services include a wide range of products and services designed to give
managers information they need more expediently than audits, and to assist EPA management in
assessing and/or implementing control systems and processes. They often focus on working with
Agency managers to develop solutions to known problems or to design systems and controls to
prevent problems in new programs and activities. These include:
Review and analysis of proposed and existing legislation and regulations;
Assessment of Agency implementation of GPRA and advice on improved planning, measurement,
accountability, linkages, data quality, and reporting;
Review and assessment of internal, financial and management controls;
Fraud prevention awareness and techniques; and,
Presentations, workshops, and analysis of management improvement techniques.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005 -I ^
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Investigations focus on alleged fraud, waste, abuse, and other illegal activities by EPA employees,
contractors, and grantees. Investigations may result in referrals for criminal prosecution and civil
action, indictments, convictions, fines, restitutions, civil recoveries, suspensions, debarments, and other
administrative actions. Investigations are also vital in identifying high risk vulnerabilities, systemic
weaknesses, improvements in programs and operations, savings, and economic benefits. Emphasis
will continue on the initiatives to uncover criminal activity in the award and delivery of EPA assistance
agreements and contracts and in the conduct of laboratory work by contractors. We will also continue
to perform criminal investigations of intrusive activities affecting EPA's computer systems and will
participate with other law enforcement agencies in the growing effort to protect government computer
systems.
Program Integrity Investigations - These investigations focus on activities that could undermine the
integrity of Agency programs concerning safety and public health, and erode public confidence in the
Agency. These cases are initiated in response to allegations or may be self-initiated in high-risk areas
where there is reasonable suspicion of fraud.
Contract and Procurement Investigations - These investigations focus on acquisition management,
contracts, and procurement practices. We specifically focus on cost mischarging, defective pricing,
and collusion on EPA contracts. The decentralized nature, complexity, and the lack of central vendor
and subcontractor database increase the Agency's vulnerability to contract fraud.
Employee Integrity Investigations - These investigations involve allegations against EPA employees
that could threaten the credibility of the Agency. Employee integrity investigations are conducted to
maintain the integrity of EPA personnel.
Assistance Agreement Investigations - These investigations focus on criminal activities related to
Agency grants, State Revolving Funds, Interagency Agreements, and Cooperative Agreements that
provide assistance to state, local, and tribal governments, universities, and nonprofit recipients.
Collectively, these programs account for about half of EPA's budget.
Hotline - These involve reviews of allegations made to the OIG by EPA employees, contractors, and
the public, or as referred from another agency via the telephone or in writing. Substantiated
allegations may result in a full investigation or audit resulting in criminal, civil, or administrative action.
Computer Forensic Investigations - These investigations identify and counter illegal intrusions of
EPA's computer systems. Through a specialized computer intrusion unit, we will coordinate with the
FBI's National Infrastructure Protection Center, and with GAO's Federal Computer Intrusion
Response Center.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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GOAL 3: Producing Timely, Quality and Cost Effective Products and
Services that Meet Customers Needs
Objectives
Q Provide the right products, at the right time, to the right customers, at the right cost By
2005, the OIG will develop and apply market and business knowledge to achieve an overall
customer satisfaction rating of 80% for its products and services.
Q Build infrastructure, relationships, and partnerships to leverage change. By 2005, the OIG
will develop cooperative activities with 10 federal agencies and 30 states.
Q Increase professional image and demand for products and services. By 2005, the OIG will
achieve an 80% positive image rating as an effective agent of change, and at least 50% of the OIG
work will be customer requested, including testimony and speeches. Also, OIG staff will achieve a
90% rating for constructive, professional, and courteous attitude.
Results We Intend to Achieve:
By 2001: 77% avg. satisfaction; partners with 2 federal IGs, 5 states; 30% work requested
By 2002: 79% avg. satisfaction; partners with 5 federal IGs, 10 states; 35% work requested
By 2003: 81% avg. satisfaction; partners with 7 federal IGs, 20 states; 40% work requested
By 2004: 83% avg. satisfaction; partners with 9 federal IGs, 25 states; 45% work requested
By 2005: 85% avg. satisfaction; partners with 10 federal IGs, 30 states; 50% work requested
How We Will Measure Our Progre.
/ % of OIG Work Requested
/ % Customer Satisfaction Ratings
(timeliness, usefulness, clarity, accuracy accessability,
constructiveness, balance),
/ % of Cases/Recommendations Accepted
/ % of Engagement Letter Expectations Met
/ % Positive Image Rating
/ # of Requests to Testify
/ # of Collaborative Efforts, States/Feds
/ Cost & Time Per Assignment
/ # of Contacts With Congress Staff
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
21
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Strategic Areas of Emphasis for Goal 3.
OIG will integrate a customer and market focus culture into all
OIG work and behaviors so that the OIG becomes a customer
driven organization, making customer needs the basis for its long
term planning, day-to-day management, design of our products
and processes and individual transactions. We will seek
opportunities to influence change by building relationships and
collaborative partnerships and by promoting the benefit of our
work to leverage more effective results and a highly positive
image of the OIG. We will build a system of linked measures to
provide a balanced scorecard for both planning and measuring
progress and costs on all activities in relation to the anticipated
outcome. We will use project management techniques for high
efficiency operations.
1. Customer FL^
2. Partnering
3. Business Planning
(product/process design)
. Integrated Measurements
(performance linkages)
J. Outcome Orientation
(start with end in mind)
6. Activity Based Costing
oiect management)
Customer Focus - The primary customers of our work are the Congress, which establishes the laws
governing environmental protection and Agency managers who implement these laws. We established
our goal of contributing to improved environmental quality and human health to support the needs of
our Congressional and Agency customers. We design our products and services to provide them with
the information they need to make important decisions about how to carry out environmental
protection.
To provide our customers with the right information at the right time, we must understand and
anticipate their needs and use this information, along with information about environmental risk and
the risk of fraud, waste, abuse, and improprieties, to plan and carry out our work. Therefore,
developing effective working relationships is critical and greatly impacts our ability to influence
positive change. We will expand our current surveys to obtain continuous customer feedback to drive
our planning, management decisions, and individual behaviors.
Partnering - To maximize attainment of our goals, we will leverage available resources by
maintaining cooperative working relationships with GAO, other Federal Inspectors General, and State
auditors. Accordingly, we have formed an Environmental Consortium of Federal auditors, evaluators,
and investigators to address environmental issues of mutual
interest. Appendix 3 summarizes the environmental work
performed by various Federal agencies. We are also developing
relationships with State auditors to identify areas and projects for
joint participation. In addition, since EPA's environmental
mission significantly impacts the private sector, we plan to identify
groups outside the government with whom we can work to
promote positive environmental change. The following two
charts show (1) the increasing role of States in environmental
programs; and (2) Federal agency 2001 budget requests for
environmental and natural resources programs. 1993
PERCENTAGE OF ENVIRONMENTAL
PROGRAMS DELEGATED TO STATES
Source: Environmental Council of the States
71%
41%
22
1998
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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FEDERAL ENVIRONMENTAL AND NATURAL RESOURCE PROGRAMS
EPA
r $7,407
Special Initiatives
$12,019
Special Initiatives include:
Lands Legacy
Farm Conservation
Climate Change Technology
Clean Water Action Plan
US Global Change Research
$s in millions
Transportation
$2,328
Commerce (NOAA)
$1,048
Defense
$4,317
Agriculture
$3,185
• Interior
f~~ $3,035
-~\ Energy
$7,579
Source: Fiscal 2001 President's Budget
Business Planning & Outcome Orientation - Our business planning strategy involves beginning with
the end in mind - the OIG goals, strategies, areas of emphasis, and results we plan to achieve, as
outlined in this strategic plan. Building on these, we will develop annual work plans outlining specific
work assignments. We will also develop human capital and information technology plans outlining
how the OIG will ensure it has the people and systems to accomplish its goals.
Our annual work plans will allocate our resources to specific work assignments or OIG priorities.
These plans will be developed based on continuous feedback from our customers about our ongoing
and completed work, and about areas on which we should focus in the future. Using this customer
feedback along with our knowledge of EPA's programs and administrative activities, we will apply the
following criteria to determine which audits, evaluations, and investigations to perform.
Evaluation Factors in Determining What Work We Do
Environmental Risk
Risk of Fraud
Substantially Add to Knowledge
Customer/Stakeholder Interest
Federal Investment
Agency Credibility
Considers problems, relative risks, and our potential to reduce or prevent the risks
Considers indicators of fraud, waste, or abuse, and opportunities for improvement
Considers if we can address a major management challenge and improve decision making
Considers if work was requested or can provide specific value to customer/stakeholders
Considers investment level from EPA and others, and potential of larger scale results
Considers if our work would enhance, protect, or restore EPA credibility in its operations
Integrated Measurements with Activity Based Costing - We will develop a Balanced Scorecard
from measures that motivate behavior and action leading to improved performance and attainment of
our goals. A Balanced Scorecard provides a family of business, customer, and staff measures that,
when used together, provide an accurate perspective of relative progress and trade-offs toward our
goals compared to the investment and application of resources. We will achieve an OIG Balanced
Scorecard by developing integrated measures, vertically and horizontally, that link the factors of cost,
quality, and timeliness for process, products, services, and measures of project and individual
contribution with our goals. To control the costs of our product and services, we will implement
activity based costing and project management techniques.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
23
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GOAL 4: Enhancing diversity, innovation, teamwork, and competencies
Objectives
Q Improved organization systems and production processes. By 2005, the OIG will expand its use
of technology by 10% a year, to at least 50% cumulatively from the 2001 baseline, and use
organizational designs that apply multi-discipline resources for high impact solutions.
Q Increased recognition for diversity, innovation, and teamwork. By 2005, the OIG will improve
and recognize employee innovation and teamwork by at least 50% cumulatively from the 2001
baseline.
Q Improved continuous learning and demonstrated competencies in EPA programs,
professional skills, technical skills and leadership skills. By 2005, the OIG will increase its skills,
abilities, and competencies base by 50% from the 2001 baseline.
Results We Intend to Achieve:
> By 2001: Establish baselines in each area of technology, innovation, and competencies
*• By 2002: 10% increases in application of technology, innovation, and competencies
> By 2003: 20% increases in application of technology, innovation, and competencies
*• By 2004: 35% increases in application of technology, innovation, and competencies
> By 2005: 50% increases in application of technology, innovation, and competencies
How We Will Measure Our Progre.
% Staff Meeting Professional Training
Standards and Competency Targets
% Staff In Parity with Civilian workforce
% of Work Completed By Multi-disciplinary
Teams
# of Awards for Creativity, Innovation &
Teamwork
% of Work Performed Electronically
% of Products Available Electronically
# of Innovative Techniques/Processes
% of Innovative Approaches, Techniques, and
Processes Implemented
% Staff Satisfaction on Internal Surveys
24
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Strategic Areas of Emphasis for Goal 4.
The OIG has a number of initiatives designed to ensure that
our office has the tools for becoming a High Performance
organization in its resources, structure, and processes. These
include: (1) identifying skills and competencies essential for
high performance in our organization; (2) inventorying our
existing skills and competencies; (3) recruiting diverse staff
and providing additional training and developmental activities
to existing staff to fill the identified gaps; (4) developing new
performance elements for our staff closely tied to our goals,
values, and high performance definition; (5) implementing a
new reward system; and (6) making greater use of technology.
1. Human Capital
(skills & development)
2. Communications
(trust & understanding)
>. Organization Realignment
(matrix management)
4. Integration of High
Performance Culture
5. Integrated Knowledge
Information Systems
Human Capital Strategies - Our office will continue its deep commitment to recruiting and
maintaining a highly competent and diverse workforce. We recognize that each person contributes to
our collective success, and that responsibility and accountability for organizational success reside with
each person. We will deploy the following strategies to ensure we have a diverse, highly trained,
motivated and accountable staff.
Skills Inventory - We will identify gaps between our existing and needed skills to efficiently and
effectively accomplish our mission. The results of our skills inventory will drive our recruiting and
contracting strategies and help ensure we have personnel with the skills needed to carry out our
current and future work.
Training and Development - Our organizational culture promotes continuous learning and sharing of
knowledge to improve both OIG and Agency performance. Our training and development strategy is
designed to provide our employees with the leadership, management, technical, and team skills to
accomplish the work of today and to prepare us for the work of the future. The results of our skills
inventory will help identify areas where further training and development activities are needed. A large
percentage of our senior leaders and technical experts will be eligible for retirement within the next
five years. Consequently, a critical component of our training and development strategy will be the
deployment of a succession plan to identify and provide developmental activities to prepare our future
experts and leaders. Each staff member will gain the knowledge, skills and abilities that collectively
provide the following balance of core competencies for continuous high performance.
Staff Core Competency Development Targets by Type
* Professional (required by standards)
* Technological (computer literacy)
* Program/Specialty
* Leadership/Team
* Other Personal Growth
25%
20%
25%
20%
10%
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
25
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Diversity - We will continue our pledge of ensuring a diverse workforce that is representative of the
overall national civilian workforce. We will promote equal opportunity for all, which enriches the
organizational culture, relationships, and products with multiple points of view.
Personal Accountability - We will develop new Performance Elements for all OIG staff, focusing on
achieving results aligned with our organizational mission, goals, and values. Staff performance will be
evaluated based on activities and results relating to quality, quantity, timeliness, accuracy, cost
effectiveness, and application of knowledge in four areas. Feedback will be provided by a combination
of external and internal assessments including surveys, discussions, observations, objective data
reports, and 360-degree analysis. The feedback will be used to identify future training and
development needs. Compensation and rewards system will also be tied to these elements.
Q Assignment Accomplishment
Assignments produce results which support OIG strategic goals. Products and services are timely,
accurate, complete, and reflect technical expertise.
* Assignments produce results
* Products and services are timely, accurate, complete, and cost effective
* Demonstrates technical knowledge
Q Customer Service
Responds to customer needs in a manner that provides added value, generates customer demand, and
projects a professional image of the OIG.
*• Exhibits customer and business knowledge
>• Builds relationships and professional image
>• Gathers and acts on feedback
Q Personal Behavior
Exhibits appropriate behavior that supports the OIG's vision, philosophy, and values.
*• Communicates in an open and constructive manner
*• Demonstrates personal integrity and organizational independence
*• Exercises personal leadership
>• Participates actively in team efforts
Q Continuous Learning
Promotes self improvement through continuous learning, which contributes to organizational
improvement and/or self-fulfillment.
*• Maintains and enhances professional competencies
>• Encourages organizational learning
>• Develops others
Rewards System - We are implementing an awards process that aligns our rewards system with our
mission, goals, and values. The process allows staff participation in the awards process by: (1)
creating an OIG Awards Board comprised of staff from various levels in our organization and different
organizational components to make recommendations on the OIG's highest awards, (2) allocating
managers an awards budget, (3) providing the means for peers to nominate other non-supervisory
employees for awards, and (4) publicly recognizing OIG employees receiving the OIG's highest
awards at an annual ceremony. The process encourages the team awards to promote teamwork and
our "one OIG" concept.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Communications - Open communications is one of our core operating systems values, as it is critical
to building trust for OIG-wide teamwork, and mutual understanding between the OIG and its
customers and stakeholders. To establish a system for communicating the OIG goals, priorities,
directions, and values to all employees, we deployed a communications strategy. Out strategy outlines
the OIG's expectations for dissemination of information.
Organizational Realignment - OIG is aligned to support its organizational values and goals. By
using a multi-disciplinary approach, across the Agency Goals and geographic Regions, we are capable
of providing and influencing higher impact results. We are organized to focus on two critical parts of
our business — our people and our systems. These two areas will help us to achieve our goals of: (1)
enhancing the diversity, innovation, teamwork, and competencies of our people; and (2) improving the
quality, cost effectiveness, timeliness, and results of our products and services.
Integration of High Performance Culture - To improve overall organizational effectiveness, we
have adopted an organization model, built on the foundation of valuing people and their contributions
to serving the needs of our customers. Accordingly, all of our employees are responsible for
contributing to the leadership and management of the OIG and the overall achievement of the OIG
goals. Our employees will be involved in all aspects of our work - planning, executing, evaluating
results, and identifying innovative ways of improving our business results. We will increase the use of
multi-disciplinary teams to enhance the value of our products and services.
Knowledge and Information Management Systems - The OIG is developing an integrated
information technology plan and architecture supporting the OIG business products, services and
internal processes and infrastructure. We will maximize our own efficiency for attainment of our goals
and objectives by: (1) promoting the application of advanced electronic techniques, (2) developing
information systems for timely measurements and accountability, (3) streamlining acquisition of
technology resources, (4) providing comprehensive data for our staff, and (5) providing customers
with easier access to OIG products. We will invest in hardware, software, training, and contract
services by prioritizing needs against alternative solutions and potential returns on investment. We will
research best practices in the industry, seek and leverage opportunities for collaborative efforts, and
maintain up-to-date information on staff competencies.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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KEY EXTERNAL FACTORS THAT MAY AFFECT ACHIEVEMENT
OF OUR GOALS
A World of Change - The Factors Influencing Our Results
Political/Legislative Environment Illegal Acts
Environmental change and risks are closely related to demographic, social, economic, cultural and
technological changes. The OIG is dependent upon its ability to influence the Agency and other parties
to take appropriate action. Our ability to influence improved environmental quality and human health
will be affected by some of the following external and environmental factors:
Demographics/Social
XEPA's ability to influence third parties on whom it heavily relies to accomplish its mission;
^Population growth, increasing environmental degradation and demand for natural resources; and
^Significant shifts in population to areas with insufficient environmental protection or infrastructure.
Economic/Resources
XChanges in the economy and the Federal budget outlook and the resulting impact on funding for
environmental programs and the OIG; and by private, state, and municipal environmental investment;
^Difficulties in hiring and retaining staff with appropriate expertise (auditors, investigators, computer
specialists, evaluators, economists, engineers, attorneys, and scientists) in an expanding economy; and,
X Availability of and need for natural resources, especially in rural or sparsely populated areas.
Political/Legislative Environment
XChanges in the role of the Federal government, including the shift toward state/local responsibility;
^Consistency of funding;
XChanges in environmental legislation, moving away from "stovepipe" laws over each separate media
or risk, in preference to more holistic, watershed, regional, or ecosystem based legislation;
^Expanded environmental risks or better solutions from actions of the international community;
XPublic preference, trade-off, or compromise between environmental and economic choices; and,
XThe role of Federal IGs, public demand for accountability, and the capacity of State governments.
Technology
^Technology, which provides greater access to data and greater input to environmental decision-
making, and greatly impacts how we carry out our work and influence change;
XChanges in environmental technology and alternative energy sources;
XNew medical and scientific practices providing better identification of risks and linkages to their
causes and prevention or treatments; and,
XRisks from new technology-driven sources, like bio-engineered foods and electro-magnetic radiation.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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Threats
There is always the possibility of uncontrollable and unforeseen threats that could adversely affect our
results. Threats can be contrived domestically (e.g., fraud) or internationally (e.g., tyranny and military
conflict). There will always be the peril of naturally occurring disasters and the result of environmental
neglect or degradation. We can only be cognizant of such threats, regardless of their probability, and
be flexible and prepared to take contingency actions.
BENCHMARKING OUR RESULTS
Our annual performance plans will provide annual goals to reach our longer-term strategic targets. We
will use fiscal 2001 as the baseline from which we will adjust, as necessary, our long-term targets. Our
goals for fiscal years 2002-2005 will be based on fiscal 2001 results. During fiscal 2001, we will also
refine our measures to better quantify the value of our products and services. In particular, we will
develop additional measures to evaluate and report on our results in contributing to environmental
quality and human health, such as: legislative, regulatory, policy, and procedural changes leading
to indicators of reduced health risks and better environmental quality.
Linkage to the EPA Strategic Plan - Goal 10. Effective Management
The OIG, as part of the EPA, is included in EPA's Strategic Plan, Goal 10. (Effective Management).
To align with that Plan, the OIG developed an objective, subobjective, and "vital few" measures
architecture. This architecture represents a composite or summary of the complete version of OIG
goals, objectives, strategies, and measures provided in this OIG Strategic Plan.
Currently, the information we use to track and measure our performance is collected by OIG staff using
strict professional standards, and is maintained in an internal OIG tracking system. We anticipate that
we will need to rely on Agency and other external systems to help measure the impact of our work on
environmental quality and human health.
IMPROVING OUR PERFORMANCE
In developing this strategic plan, we consulted with both our Agency and Congressional customers, as
well as OIG staff, to develop our goals, strategies, and measures. We will continue our consultations
throughout the duration of this plan and use the feedback we receive to revise our plans and improve
our products and services. We will continue to use customer and staff feedback along with internal
assessments, program evaluations, and external peer reviews to improve our work and its results. We
have a system to collect data from Agency managers about the timeliness, relevance, and usefulness of
our products and services and plan to implement a process to obtain similar feedback from our
Congressional customers. We will also continue conducting periodic operational evaluations to
improve the relevance, timeliness, cost-effectiveness, and overall quality of our work
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Specific Suggestions for Improving OIG Products and Services
From Customer & Staff Surveys
* Improve balance by recognizing: actions taken,
problems resolved, different points of view, and
what is working
* Develop "big picture view" of potential application
and impact of results
* Improve followup on IG work with Agency and
seek progress reports
* Transfer knowledge, findings and improvement
recommendations
* Use more briefings, to explain and educate on
needed actions and opportunities
* Improve program knowledge
* Participate in EPA new employee orientations and
give briefings on IG Act
* Develop shorter report formats and briefing papers
for external stakeholders
* Expand advisory services
* Help Agency improve staff and management
competencies and accountability
* Partner more with stakeholders and clients in
collaborative approaches and solutions
* Expand use of technology and accessability
* Use prospective approach to problems
Validating Our Work and Information Collection
On a 3-year cyclical basis, assess OIG offices' compliance with professional standards and the efficiency
and effectiveness of OIG programs and operations. Areas for review include accomplishments, quality
of work, and impact of products and services. During these assessments, staff review a sample of
completed assignments to determine adherence to standards and use the results to improve OIG
operations. Future internal assessments will include analysis of how well we are achieving our goals
and focus on identifying ways to improve our results. The OIG will continue to use the results from
external peer reviews to provide an independent assessment of our adherence to auditing standards.
Additionally, GAO reviews our annual financial statement audit work to confirm that it can by relied
upon when it reports on the annual audit of the United States Government's Financial Statements. We
will use GAO comments to improve OIG performance.
In accordance with the Federal Managers' Financial Integrity Act of 1982 (P.L. 97-255), the OIG
annually submits an assurance letter to the EPA Administrator reporting on whether the OIG's
management controls reasonably protect OIG programs from waste, fraud, abuse, or mismanagement.
30
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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APPENDIX 1
EPA'S 10 GOALS
Clean Air - The air in every American community will be safe and healthy to breathe. In particular, children, the
elderly, and people with respiratory ailments will be protected from health risks of breathing polluted air. Reducing air
pollution will also protect the environment, resulting in many benefits, such as restoring life in damaged ecosystems and
reducing health risks to those whose subsistence depends directly on those ecosystems.
Clean and Safe Water - All Americans will have drinking water that is clean and safe to drink. Effective
protection of America's rivers, lakes, wetlands, aquifers, and coastal and ocean waters will sustain fish, plants, and
wildlife, as well as recreational, subsistence, and economic activities. Watersheds and their aquatic ecosystems will be
restored and protected to improve public health, enhance water quality, reduce flooding, and provide habitat for wildlife.
Safe Food - The foods Americans eat will be free from unsafe pesticide residues. Particular attention will be given to
protecting subpopulations that may be more susceptible to adverse effects of pesticides or have higher dietary exposures to
pesticide residues. These include children and people whose diets include large amounts of non-commercial foods.
Preventing Pollution and Reducing Risk in Communities, Homes, Workplaces, and
Ecosystems - Pollution prevention and risk management strategies aimed at cost-effectively eliminating, reducing, or
minimizing emissions and contamination will result in cleaner and safer environments in which all Americans can
reside, work, and enjoy life. EPA will safeguard ecosystems and promote the health of natural communities that are
integral to the quality of life in this nation.
Better Waste Management, Restoration of Contaminated Waste Sites, and Emergency
Response - America's wastes will be stored, treated, and disposed of in ways that prevent harm to people and the
natural environment. EPA will work to clean up previously polluted sites, restore them to uses appropriate for
surrounding communities, and respond to and prevent waste-related or industrial accidents.
Reduction of Global and Cross-Border Environmental Risks - The United States will lead other
nations in successful, multi-lateral efforts to reduce significant risks to human health and ecosystems from climate
change, stratospheric ozone depletion, and other hazards of international concern.
Quality Environmental Information - The public will have access to information about environmental
conditions and human health to assist in informed decision-making and help the public assess the general environmental
health of their community. The public will also have access to information and educational tools that provide for the
reliable and secure exchange of quality environmental information.
Sound Science, Improved Understanding of Environmental Risk, and Greater Innovation
to Address Environmental Problems - EPA will develop and apply best available science for addressing
current and future environmental hazards and new approaches to improving environmental protection.
A Credible Deterrent to Pollution and Greater Compliance with the Law - EPA will ensure full
compliance with the laws intended to protect human health and the environment.
Effective Management - EPA will maintain the highest quality standards for environmental leadership and for
effective internal management and fiscal responsibility by managing for results.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005 J 1
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APPENDIX 2
EPA'S 2001 BUDGET BY GOAL
EPA Goal
Clean Air
Clean and Safe Water
Safe Food
Preventing Pollution
Better Waste Management
Reducing Global and Cross-Border Risks
Quality Environmental Information
Sound Science
Credible Deterrent to Pollution
Effective Management
Totals
Dollars in Millions
$648
2,755
86
301
1,830
425
185
329
404
464
$7,427
Workyears
1,857
2,673
712
1,186
4,402
533
809
1,049
2,573
2,256
18,050
Source: EPA's Fiscal Year 2001 Budget Request
EPA'S UTILIZATION OF ITS RESOURCES
OTHER (rent, travel and equipment)
10%
SALARIES
15%
CONTRACTS
25%
GRANTS
50%
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Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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APPENDIX 3
Examples of Cross-Cutting Environmental Issues With Other Federal Agency's QIGs and GAP
EPA-OIG
ce
er Other Other
RA Labs Grt/Cntrt
Energy-OIG
Defense-OIG
Defense-DCIS
Army Audit
Navy Audit
DOT-OIG
DOJ-OIG
USPS-OIG
DOI-OIG
GSA-OIG
HHS-OIG
USDA-OIG
AID-OIG
DOC-OIG
NASA-OIG
NRC-OIG
GAO
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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APPENDIX 4
SOURCES OF INPUT FOR THE OIG STRATEGIC PLAN
Congress
H. Trans & Infrastruct
H. Science
H. Resources
H. Commerce
H. Appropriations
H. Gov't Reform
H. Agriculture
S. Appropriations
S. Gov't Affairs
S. Small Business
S. Eviron/PubWks
S. Budget
/ Management \
I Challenges y
Prior OIG
\Work and Research
OIG STRA TEGIC PLAN
IG Employees
External Stakeholders
Other IGs, Partners
& Associations
EPA
Strategic
Plan & Budget
Audit & Investigatioi
Customer Surveys
98,99
States and
Environmental
Council of the States
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Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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APPENDIX 5
MAJOR LAWS AFFECTING EPA AND OIG WORK
Inspector General Act of 1978, as amended*
Clean Air Act
Toxic Substances Control Act
Clean Water Act
Safe Drinking Water Act
Endangered Species Act
National Environmental Policy Act of 1969
Federal Insecticide, Fungicide, and Rodenticide Act
Food Quality Protection Act*
Federal Food, Drug, and Cosmetic Act
Comprehensive Environmental Response, Compensation and Liability Act*
Emergency Planning and Community Right to Know Act
National Environmental Education Act
Environmental Research, Development and Demonstration Act
Solid Waste Disposal Act
Pollution Prevention Act
Resource Conservation and Recovery Act
Oil Pollution Act of 1990
Ocean Dumping Act
Marine Protection, Research and Sanctuaries Act
Federal Technology Transfer Act
Federal Advisory Committee Act
Federal Facility Compliance Act
Freedom of Information Act/Privacy Act
Paperwork Reduction Act
VA, HUD and Independent Agencies Appropriations Acts
Chief Financial Officers Act*
Government Performance and Results Act
Federal Financial Management Improvement Act*
Competition in Contracting Act
Federal Grant and Cooperative Agreement Act
Federal Managers Financial Integrity Act
Clinger-Cohen Act
Contract Disputes Act
Federal Claims Collection Act
Federal Records Act
Single Audit Act
Anti-Deficiency Act
Whistle-blower Protection Act
U.S. Title 18 (Criminal Code)
Ethics in Government Act
Computer Fraud and Abuse Act/Computer Security Act
* Laws that contain provisions that mandate EPA-OIG work.
Environmental Protection Agency Office of Inspector General Strategic Plan Through 2005
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We request your input, comments, and questions concerning this Strategic Plan r
anything about the EPA Office of Inspector General. Please let us know what we are doing well,
and how we can better serve the our customers. This Plan, information about the OIG, \nd
other OIG products are available on our web site, www.epa.gov/oigearth.
For questions, comments, or to obtain copies
of this Plan, please contact any of the following:
Eileen McMahon, Congressional and Media Relations (202) 260-0401^
Mcmahon.Eileen(@,epa. gov
Melissa Heist, Office of Planning, Analysis and Results (202) 260-1479
Heist.Melissa. (@,epa. gov
Michael Binder, Office of Planning, Analysis and Results (202) 260-9684
Binder.Michael(@,epa. gov
U.S. Environmental Protection Agency
Office of Inspector General
1200 Pennsylvania Ave. NW
Washington D. C. 20460
(mail code 2410)
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