FEBRUARY 2004
/ OFFICE OF INSPECTOR GENERAL
roving the Environment
Annual Plan
October 1, 2003 - September 30, 2004
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OIG STRATEGIC PLAN, FISCAL 2004 - 2008
We are catalysts for improving the quality of the
Environment and Government through problem
prevention and identification, and cooperative solutions
2. Cbniri butetQ Improve^
Agency; Business Practices
v_L
OIG Products and Services
& Influence programmatic and
systemic changes and actions that
contribute to improved human health
and environmental quality.
$ Add to and apply knowledge that
contributes to reducing or eliminating
environmental and infrastructure
security risks and challenges.
& Identify recommendations, best
practices, risks, and opportunities to
leverage results in EPA programs and
among its partners.
& Influence actions that improve,
operational efficiency, accountability,
resolve public concerns and
management challenges^ and achieve
monetary savings.
& Improve operational integrity and
reduce risk of loss by detecting and
preventing vulnerabilities to fraud,
abuse, or breach of security.
& Identify recommendations, best
practices, risks, weaknesses,
opportunities for savings, and
operational improvements.
> Improve the timeliness, responsiveness,
and value of our products and services, to
our clients and stakeholders.
0 Apply technology, innovation, leadership,
skill proficiency for motivated staff and
highly regarded products.
©Align organization plans, performance,
measurement, processes, and followup for a
cost accountable results culture.
©Maximize use and diversity of resources.
© Develop constructive relationships to
effectively leverage resources and foster
collaborative solutions.
OIG Product iind Service Line Assignments Addressed in this Plun for TV 2004
Performance Audits
and Evalaatttmx
Air
Wafer
Land
Cross-Media
Financial'Sysiems Audits
Business Systems
Financial Statements
Contracts
Assistance Agreements
Investigaiwtis
Assistance Agreement and Contracts
Laboratory Fraud/Data Integrity
Computer Crimes
Superfund Contracts
, i _ ...
Public inquiry/
Outreach
Ombudsman
Hotline
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Table of Contents
Annual OIG Plan: Structure and Selection Criteria 1
Summary of the Consolidated Annual Plan for Fiscal 2004 2
OIG Performance Targets and Results for FY 2002/2003, With FY 2004 Targets 3
Planned Products and Services Relating to Environmental Results 4
Air 4
Water 5
Land 7
Cross-Media 8
Improving EPA's Management and Program Operations 11
Financial Statements 11
Business Systems 12
Assistance Agreements 13
Contracts 13
Investigations 14
Public Inquiry/Outreach 15
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Annual OIG Plan: Structure and Selection Criteria
The OIG planning process is continuously carried out at three levels. First, the 5-year Strategic Plan, which
is based upon the OIG vision, mission, values, establishes the long-term goals, objectives and measures. This
Strategic Plan is updated every 3 years as required by the Government Performance and Results Act. The
Strategic Plan is implemented through the 3-year Multi-Year Plan. This Multi-Year Plan closely links OIG
Product Line Tracks to EPA's Strategic Plan through interrelated Key Questions, whose answers are critical
to the success of EPA's mission and goals. The OIG Multi-Year Plan is updated annually, in the form of this
Annual Plan, identifying the highest priority assignments, based upon the following criteria.
To maximize the Value Added of our work, we considered the following factors in developing this plan:
* Adequacy of Basing Gaatiol Systems
* Opportunities to Leverage Results witti Partners
Environmental/Busings tategri^ Risk
Prior Audit History or Evafaatioa Results
t Needs gad litteresf
* Federal Investment or Regulatory Authority
We will work to identify emerging Major Management Challenges, provide advice, and recommend
solutions for timely resolution of these issues. We will follow up on our recommendations to improve
Agency accountability for corrective action, and report the value-added contribution of our work.
1. Linking Mission and Management
2. Information Resources Management and Data Quality
3. Human Capital Management (Formerly Employee Competencies)
4. EPA's Use of Assistance Agreements to Accomplish its Mission
5. Protecting Critical Infrastructure from Non-Traditional Attacks
6. Challenges in Addressing Air Toxics Program Phase 1 and Phase 2 Goals
7. EPA's Working Relationships with the States
8. EPA's Information Systems Security
9. Backlog of National Pollutant Discharge Elimination System Permits
10. Management of Biosolids
The text of the OIG Strategic Plan, Multi-Year Plan and EPA's Top Management Challenges are available at:
www.epa.gov/oig EPA's Strategic Plan is available at: mvw.epa.gov/ocfopage/plan/plan.htm
OIG FY 2004 Plan
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Summary of the Consolidated Annual Plan for Fiscal 2004
Environmental Results Assignments/Projects
Assessment of the Port Worth, Texas, Project XL Asbestos Demolition and Renovation Proposal
Assessment of Air Toxics Reporting under the Government Performance and Results Act (GPRA)
Evaluation of Clean Air Act, Title V Permit Quality
Effectiveness of EPA and State/Local Agency Strategies for Reducing Ozone Precursors (NOx and VOCs) from Stationary Sources
Assessment of EPA's Ambient Air Monitoring Program for Air Toxics
Evaluation of EPA's PM-2.5 Network Design for Identifying Sources and Developing Control Strategies
Evaluation of EPA's Mitigation, Response and Recovery Activities Related to the Collapse of the World Trade Center
Evaluation of the Emission Impact of New Source Review Policy Changes
Evaluation of EPA's Air Toxics Source Characterization and Control Strategies Development
Evaluation of State and Local Ozone Permits
Assessment of EPA's PM-2.5 Early Reductions Effort
Evaluation of the Adequacy of Clean Air Act, Title V Fee Collections
Water
Assessment of the Safe Drinking Water Information System Data as a GPRA Measure
Assessment of the Effectiveness of EPA's Effluent Guidelines Program
Evaluation of the Effectiveness of EPA's Pretreatment Program
Evaluation on the Impact of National Pollutant Discharge Elimination System Permit Backlog
Evaluation of Source Water Assessments and Protection
Assessment of Challenges and Opportunities to Implementing the Watershed Approach to Protecting Water Quality
Assessment of Fraud Prone Profiling of Laboratories
Evaluation of Clean Water Monitoring and Assessment
Assessment of the Effectiveness of EPA's Total Maximum Daily Load (TMDL) Program
Evaluation of die Clean Water State Revolving Fund Program
Assessment of the Drinking Water Contaminant Candidate List
Assessment of the Impact of Regulations on Small Drinking Water Systems
Evaluation of the Alaska Department of Environmental Conservation-Village Safe Water Program
Results of Audits from Clean Water State Revolving Fund Projects
Financial Audits of Clean Water and Drinking Water State Revolving Funds
Land
Management Review of the Implementation of the National Brownsfields Program
Evaluation of the Effectiveness of State Hazardous Waste Cleanup Programs and the Role of the Superfund National Priorities List
Evaluation of Superfund Issues in Indian Country
Evaluation of the Financial Responsibilities at Mining Mega-Sites
Special Review of the Petition of the Idaho National Engineering and Environmental Laboratory
Congressional Request for Information on Sufficiency of Superfund Funding
Audit of Awarding Brownfields Grants
Congressional Requested Review of the Gloucester Environmental Management Services Trust
Review of the Management and Recycling Programs for Electronic Waste
Review of Superfund Mandate Relating to the Fiscal 2004 Appropriation
Evaluation of the Role of the National Priority List as it Relates to the Mega-Superfund Sites
Evaluation of the Role of the National Priority List as it Relates State Cleanup Program Assessments
Review of Selected Superfund Claims
Financial Audits of Selected Superfund Cooperative Agreements
Financial Audits of Superfund Remedial Action Contracts
Financial Audits of Emergency Response Contracts
P
Evaluation of the Effectiveness of Compliance Assistance and Other Alternative Compliance Approaches
Congressional Request and Review of EPA Enforcement, Resources, and Accomplishments
Evaluation of Children's Health Initiative Coordination by the Office of Children's Health Protection
Evaluation of the Impact of the Food Quality Protection Act in Reducing the Risks to Children's Health from Exposure to Pesticides
Evaluation of the Domestic Working Group Water Security Assessment
Assessment of the Environmental Justice Actions by EPA
Evaluation of Environmental Justice Impacts Resulting from Air Emission Trading
Evaluation of State's Environmental Stewardship
Audit of Equipment Purchases for Counter-Terrorism Equipment Preparedness
Evaluation of Water Vulnerability Assessments
Evaluation of Ambient and Indoor Air Protection Efforts under the Safe Buildings Program-Bio watch-Homeland Security
Evaluation of Water's Emergency Response Plan and Measures-Homeland Security
Evaluation of the Validation of Results of State Stewardship
Evaluation of Environmental Justice Impacts Resulting from Trading Water Credits
Evaluation of Food Safety-Homeland Security
OIG FY 2004 Plan
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1
Performance Management and Accountability Assignments/Projects
Statements
FY 2003 Agency-wide Financial Statements
FY 2003 Pesticide Reregistration and Expedited Processing Fund Financial Statements
FY 2004 Agency-wide Financial Statements
FY 2004 Pesticide Reregistration and Expedited Processing Fund Financial Statements
Chemical Safety Board Financial Statements
Business
Financial Application Development
EPA's Implementation of Network Firewalls
Validation of EPA's Quarterly Security Report Data
EPA's Human Capital Strategy
Federal Information Security Management Act (FISMA) Review
Chemical Safety and Hazard Investigation Board FISMA Review
Fiscal 2004 Application Controls for the Integrated Financial Management System
Service Continuity Plans for the Financial Management Centers
EPA's Managing for Results
Followup Audit of Information Technology Project Management
Remote Access Servers and Configuration Management
EPA's Data Quality Strategic Plan
EPA's Energy Efficiency and Conservation
Assistance
Audit of Competition in Grants
Audit of EPA/Agency for International Development Interagency Domestic Working Group Project on Grants
Reviews of Single Audit Act Reports; and
Financial Audits of Specific Assistance Agreements
Audit of the Office of Acquisition Management's Organizational Systems
Audit of the Award of EPA's Management of Systems Development Grants
Audit of EPA's Implementation of Competitive Sourcing
Financial Audits of Contractors
OIG Performance Targets and Results for FY 2002/2003, With FY 2004 Targets
OIG Strategic Goals and Objectives « OIG Annual Performance Goals as presented in the EPA Budget Congressional Justification
Objectives, Measures and Targets:
> Environmental Improvements /Changes/Actions (Legislative, regulatory, policy, directives,
best practices, Environmental /health improvements): Intermediate Outcome & Outcome
Measures
* Environmental Risks Reduced /Eliminated Certifications, Verifications, Validations:
Outcome Measures
* Recommendations, Risks or Best Practices Identified:
Output Measures
50
16 actual
15
19 actual
75
115 actual
60
48 actual
20
9 actual
80
52 actual
70
25
90
Objectives, Measures and Targets:
> Potential Dollar Return on Savings, Questioned Costs, Recoveries, Fines, Settlements:
Outcome Measures
* Criminal, Civil Administrative Actions Reducing or Eliminating Risk of Loss &
Operational/Data Integrity: Intermediate Outcome Measures
+ Improvements in Business/Systems/Efficiency (Actions Taken on Management Challenges,
Certifications, Best Practices, Policies, Regulations): Outcome Measures
> Recommendations Made or Weakness, Best Practices Identified: Output Measures
100%ROI
122% actual
50
80 actual
70
97 actual
150
269 actual
150%ROI
856% actual
50
83 actual
75
138 actual
264
74 actual
150%ROI
$72M
50
80
160
OIG FY 2004 Plan
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Planned Products and Services Relating to Environmental Results
r a^npne wnetner E^
human fteaJth.
Air
EPA's Clean Air goal is for every community in America to have safe and healthy air to breathe. EPA's most recent
data shows mat over 121 million Americans, or over 43 percent of the U.S. population, live in areas with unhealthy
air. Additionally, air pollution results in billions of dollars in damages to agriculture, forests, buildings, monuments,
and other structures annually.
Substantial progress has been made in cleaning up selected air pollutants, but tremendous challenges confront EPA
in reducing air toxics, ozone, and paniculate matter. These air pollution problems are among the most pervasive,
difficult, and costly to remedy.
The multitude of issues impacting the achievement of EPA's clean air goal precludes the OIG from addressing each
in this plan. Nonetheless, the OIG multi-year plan will address the clean air issues that present the greatest risks to
human health and the environment, inspire the most stakeholder interest and concern, and involve the greatest portion
of EPA's clean air resources. Our multi-year plan will address the following key questions.
EPA Strategic Goal OIG Strategic Goal Key Questions
Cleaner Air
and Global
Climate Changes
Contribute to
Improved Human
Health and
Environmental
Quality
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!r^!6m:i^
OIG FY 2004 Plan
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Implementation Plans
We plan to complete the following Air assignments in FY 2004:
Assessment of the Fort Worth, Texas, Project XL Asbestos Demolition and Renovation Proposal;
Assessment of Air Toxics Reporting under the Government Performance and Results Act (GPRA);
Evaluation of Clean Air Act, Title V Permit Quality;
Effectiveness of EPA and State/Local Agency Strategies for Reducing Ozone Precursors (NOx and
VOCs) from Stationary Sources;
Assessment of EPA's Ambient Air Monitoring Program for Air Toxics;
Evaluation of EPA's PM-2.5 Network Design for Identifying Sources and Developing Control Strategies;
and
Evaluation of EPAs Mitigation, Response and Recovery Activities Related to the Collapse of the World
Trade Center.
We also plan to start the following Air assignments in FY 2004:
Evaluation of the Emission Impact of New Source Review Policy Changes;
Evaluation of EPA's Air Toxics Source Characterization and Control Strategies Development;
Evaluation of State and Local Ozone Permits;
Assessment of EPA's PM-2.5 Early Reductions Effort; and
Evaluation of the Adequacy of Clean Air Act, Title V Fee Collections.
Water
One of EPA's most important functions is to ensure that water from the tap is safe to drink, and that our nation's
surface and ground water resources are protected for future generations. EPA's clean and safe drinking water
programs face many problems, including that of fundamental performance measurement and assessment. There
are many unanswered questions about the environmental and health status of the nation's water resources, as well
as the management performance of EPA's programs and activities. Moreover, recent projections of needed
spending for drinking water and wastewater infrastructure reaches into the hundreds of billions of dollars. At the
same time State and Federal treasuries are feeling the pinch of lower revenue.
Our work plan addresses critical issues and challenges facing the nation's ability to maintain and improve the
cleanliness and purity of its water resources. Our multi-year plan will address the following key questions.
OIG FY 2004 Plan 5
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EPA Strategic Goal OIG Strategic Goal Key Questions
Clean and Safe
Water
Contribute to
Improved Human
Health and
Environmental
Quality
»> Safe linking Water? Bow efSfee&ve lias implementation
of the Safe Drinking Water Amendments of 19% been?
* Watershed Protection: How can BJPA an effective
progisiia to mottitot w$0t 4«a% aa& coiflpot jx>»t sft3 n
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Land
There are approximately 1,234 hazardous waste sites throughout the United States and an estimated 60 million
Americans live within four miles of one. There are an estimated 450,000-65 0,000 Brownfields properties across
the nation where property use is complicated by the presence or potential presence of a hazardous substance or
pollutant. In addition to potential environmental risks posed by substances on Brownfields properties, uncertainly
about environmental contamination contributes to abandoned or underutilized properties that can create major
obstacles to social or economic vitality and growth in communities.
In 2000, U.S. residents, businesses, and institutions produced nearly 232 million tons of municipal solid waste,
or approximately 4.5 pounds of waste per person per day. Part of this waste is stored in one of approximately
3,500 municipal landfills located in the United States. In addition, industrial facilities generate about 7.6 billion
tons of nonhazardous industrial waste per year.
Superfund: Despite clear success and progress, as the Superfund program has matured, developed, and been
evaluated, challenges and questions have emerged. Most notably, recent in-depth studies of the Superfund
program have identified major challenges EPA may face in paying for cleanups, based on current Trust Fund
balances and expected cleanup needs in the future. This financial situation has generated suggestions for running
the program more efficiently as well as legislation to reauthorize taxes on industry, which formed the original
basis of the Superfund program.
Brownfields: Key challenges and questions in the Brownfields program are largely related to EPA's ability to
implement the newly authorized nationwide Brownfields program. The new program provides funding
opportunities for new entities and cleanup activities, introducing new challenges that EPA must manage.
Resource Conservation and Recovery Act (RCRA): RCRAprogram faces potential problems in meeting future
environmental challenges. For example, changes will be necessary to accommodate and respond to continuing
trends in the use of more chemicals and to improve methods for measuring and managing chemical risks to
incorporate a more global and integrated world economy. Today, consumers acquire and dispose of large
quantities of goods, such as computers, that were not widely available or purchased when RCRA was enacted.
Our multi-year plan will address the following key questions.
EPA Strategic Goal OIG Strategic Goal Key Questions
Contribute to
Improved Human
Health and
Environmental
Quality
OIG FY 2004 Plan
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Implementation Plans
We plan to complete the following Land assignments in FY 2004:
Management Review of the Implementation of the National Brownfields Program;
Evaluation of the Effectiveness of State Hazardous Waste Cleanup Programs and the Role of the
Superfund National Priorities List;
Evaluation of Superfund Issues in Indian Country;
Evaluation of the Financial Responsibilities at Mining Mega-Sites;
Special Review of the Petition of the Idaho National Engineering and Environmental Laboratory;
Congressional Request for Information on Sufficiency of Superfund Funding; and
Audit of Awarding Brownfields Grants.
We also plan to start the following Land assignments in FY 2004:
Congressional Requested Review of the Gloucester Environmental Management Services Trust;
Review of the Management and Recycling Programs for Electronic Waste;
Review of Superfund Mandate Relating to the Fiscal 2004 Appropriation;
Evaluation of the Role of the National Priority List as it Relates to the Mega-Superfund Sites;
Evaluation of the Role of the National Priority List as it Relates State Cleanup Program Assessments;
Review of Selected Superfund Claims;
Financial Audits of Selected Superfund Cooperative Agreements;
Financial Audits of Superfund Remedial Action Contracts; and
Financial Audits of Emergency Response Contracts.
Cross-Media
Cross-media issues are comprised of initiatives, problems, and priorities that impact more than one media, thereby
affecting multiple-media program offices. Issues include homeland security; compliance assurance and
enforcement; research and development; technology assessment; environmental justice; environmental
stewardship; community quality of life; cross-border transport; and the health of ecosystems. Any ofthese issues
could be analyzed in the context of an individual media -- the creation of comprehensive and optimal EPA policies
necessitates that the Agency understand the role and behavior of each issue across the range of applicable media
and laws. Following is a brief discussion of the cross-media issues we plan to address in our work.
DIG FY 2004 Plan
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Homeland Security: Homeland Security is atop policy and funding priority of the administration, Congress,
Agency, and the public. The National Strategy for Homeland Security designates EPA as the lead agency for two
of the nation's 14 critical infrastructure sectors: the water sector and the chemical industry and hazardous materials
sector. In 2002, additional funds were allocated to assist those assessing infrastructure vulnerabilities, and to
enhance the Agency's response capabilities (i.e., research and development of new technologies to detect, monitor,
and neutralize environmental threats). EPA is also applying its knowledge and experience gained in implementing
the nation's environmental laws to support other Federal agencies' efforts to secure the nation's food,
transportation, and energy infrastructure.
Environmental Stewardship: Environmental Stewardship by States and tribes is crucial for EPA to achieve its
goals and objectives because these governments execute significant portions of EPA's regulatory mandate. How
well the States and tribes use EPA funds and implement EPA guidance through their programs, organizations,
jjersonnel, and policies may strongly impact human health and environmental quality both locally and nationally.
Environmental Justice: Environmental Justice means the fair treatment of people of all races, cultures, and
income with respect lo the development, implementation, and enforcement of all environmental laws and policies,
imd then meaningful involvement in the decision-making process of the government. Measuring and ensuring
EPA's Environmental Justice efforts is a heightened concern as environmental enhancement tools increase
corporate market-based incentives (e.g., air emission credit trading, water discharge credit trading).
Compliance Assurance and Enforcement: Compliance assurance and enforcement practice and procedures have
seen considerable innovation in recent years and exhibit considerable variation among locations and commercial
sectors. The potential for impact on human health and the environment through enhanced compliance - as well
£is the absence of a consensus on the best techniques for achieving compliance invite evaluation.
Our multi-year plan will address the following key questions.
EPA Strategic Goals QIC Strategic Goals Key Questions
Healthy
Communities and
Ecosystems
Compliance and
Environmental
Stewardship
Contribute to
Improved Human
Health and
Environmental
Quality
Improve EPA's
Management and
Program Operations
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OIGFY 2004 Plan
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Implementation Plan
We plan to complete the following Cross-Media assignments in FY 2004:
Evaluation of the Effectiveness of Compliance Assistance and Other Alternative Compliance
Approaches;
Congressional Request and Review of EPA Enforcement, Resources, and Accomplishments;
Evaluation of Children's Health Initiative Coordination by the Office of Children's Health Protection;
Evaluation of the Impact of the Food Quality Protection Act in Reducing the Risks to Children's Health
from Exposure to Pesticides;
Evaluation of the Domestic Working Group Water Security Assessment;
Assessment of the Environmental Justice Actions by EPA;
Evaluation of Environmental Justice Impacts Resulting from Air Emission Trading;
Evaluation of State's Environmental Stewardship; and
Audit of Equipment Purchases for Counter-Terrorism Equipment Preparedness.
We also plan to start the following Cross-Media assignments in FY 2004:
Evaluation of Water Vulnerability Assessments;
Evaluation of Ambient and Indoor Air Protection Efforts under the Safe Buildings Program-Biowatch-
Homeland Security;
Evaluation of Water's Emergency Response Plan and Measures-Homeland Security;
Evaluation of the Validation of Results of State Stewardship;
Evaluation of Environmental Justice Impacts Resulting from Trading Water Credits; and
Evaluation of Food Safety-Homeland Security.
10
OIG FY 2004 Plan
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Improving EPA's Management and Program Operations
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EPA delivers its environmental programs through a number of interrelated organizational systems. Having the
right people, processes, systems and information in place is essential to efficiently and effectively carrying out
its mission and also provides a strong deterrent to fraud, waste, and abuse.
Areas presented in this section specifically address Goal 2 of the OIG's Strategic Plan, Improving EPA's
Management and Prog-am Operations. This plan has been designed to complement OIG program evaluations
and help the Agency achieve its environmental goals in the most effective and efficient manner.
EPA Strategic Goal OIG Strategic Goal Key Questions
Supports All
EPA Strategic
Goals
Contribute to
Improved Agency
Business Practices
and Accountability
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Financial Statements
I mproved Financial Performance is one of the maj or initiatives targeted in The President's Management Agenda.
This reform area focuses on improving accountability to the American people. Each year, we conduct a financial
statement audit in accordance with the Government Management Reform Act. This mandated audit is intended
to help bring about improvements in financial management practices, systems, and controls so that timely,
reliable information is available for managing Federal programs.
OIG FY 2004 Plan
11
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Implementation Plans
We plan to complete the following Financial Statement assignments in FY 2004:
Audit of FY 2003 Agency-wide Financial Statements; and
Audit of FY 2003 Pesticide Reregistration and Expedited Processing Fund Financial Statements.
We also plan to start the following Financial Statement assignments in FY 2004:
Audit of FY 2004 Agency-wide Financial Statements;
Audit of the Chemical Safety Board Financial Statements; and
Audit of FY 2004 Pesticide Reregistration and Expedited Processing Fund Financial Statements.
Business Systems
EPA relies on its information systems to collect, process, store, and disseminate vast amounts of data used to
assist in making sound regulatory and program decisions. The success of environmental programs and initiatives
depends on the availability of reliable data and the integrity of EPA's fundamental information technology
infrastructure. Consequently, data reliability and data gaps are two major aspects of data management that need
attention. It is also essential that the Agency prevent intrusion and abuse of its information systems, protect the
integrity of its data, and provide incident response capability. The dynamic nature of security requires continued
emphasis and vigilance. As such, computer security continues to be a top management challenge.
OIG's Computer Crimes Directorate complements planned audit work, by focusing investigations on computer
incidents which have a potentially significant adverse impact on EPA operations. The Computer Crimes
Directorate will work, in a consultative role with Agency computer security personnel and others, to improve
Agency security and computer incident awareness. We will maintain liaison and close working relationships with
other law enforcement agencies and participate in efforts of mutual interest and national security.
Implementation Plans
We plan to complete the following Business Systems assignments in FY 2004:
Audit of Financial Application Development;
Audit of EPA's Implementation of Network Firewalls;
Validation of EPA's Quarterly Security Report Data; and
Audit of EPA's Human Capital Strategic Planning.
We plan to start the following Business Systems assignments in FY 2004:
Federal Information Security Management Act Review (FISMA;)
Chemical Safety and Hazard Investigation Board FISMA Review;
Audit of the Fiscal 2004 Application Controls for the Integrated Financial Management System;
12
OIG FY 2004 Plan
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Audit of the Service Continuity Plans for the Financial Management Centers;
Audit of EPA's Managing for Results;
Followup Audit of Information Technology Project Management;
Audit of Remote Access Servers and Configuration Management;
Audit of EPA's Data Quality Strategic Plan; and
Audit of EPA's Energy Efficiency and Conservation.
Assistance Agreements1
EPA has identified management of assistance agreements as either a material or Agency-level weakness since
1996. With EPA providing more than $4 billion per year in assistance agreements, it is important that EPA and
the OIG ensure that the funds are used in accordance with laws and regulations, and are safeguarded from fraud,
waste, and misuse. We will continue our audits of grantees' costs and our investigative work to uncover criminal
and administrative misconduct in the assistance agreement area.
Implementation Plans
We plan to complete the following Assistance Agreements assignment in FY 2004:
Audit of Competition in Grants.
We plan to start the following Assistance Agreements assignment in FY 2004:
Audit of EPA/Agency for International Development Interagency Agreement Domestic Working
Group Project on Grants.
We also plan to continue the following Assistance Agreements assignments in FY 2004:
Reviews of Single Audit Act Reports; and
Financial Audits of Specific Assistance Agreements.
Contracts !
Management of contracts is an important area as 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.
i
Audits related to specific media and cross-media goals arc shown in those respective sections of this plan.
OIG FY 2004 Plan 13
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Implementation Plans
We plan to start the following Contracts assignments in FY 2004:
Audit of the Office of Acquisition Management's Organizational Systems;
Audit of the Award of EPA's Management of Systems Development Grants; and
Audit of EPA's Implementation of Competitive Sourcing.
We also plan to continue the following Contracts assignments in FY 2004:
Financial Audits of Contractors.
Investigations
OIG investigators are responsible for detecting, investigating, deterring, and referring cases for criminal
prosecution, civil or administrative action. These cases involve possible fraud, abuse and other illegal acts
by Agency employees, contractors and grantees. These cases are often performed by teaming with OIG
auditors and/or evaluators, and other law enforcement officials.
In FY 2004 we plan to investigate cases involving:
Assistance Agreements and Contracts: We will focus investigative resources on allegations of
criminal activity pertaining to high cost administrative assistance agreements and contracts across the
Agency's programs that can undermine the public's trust in its ability to carry out its mission.
Laboratory Fraud and Data Integrity: We will investigate indicators of laboratory fraud within the
environmental community, involving commercial, contractual, and Agency laboratories; and the security
of data relied upon to assess environmental threats, control hazardous wastes and other pollutants in
determining regulatory and enforcement actions.
Computer Crimes: We will investigate allegations of attempted intrusions and other crimes affecting
EPA computer systems, provide advanced computer forensic support to OIG staff, and provide the
Agency's various Information Security Officers with designated points of contact for investigative
referrals.
14
OIG FY 2004 Plan
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Super fund Contracting: Our investigations will focus on all stages of the Superfund program, with
a special emphasis on Agency contracting processes and contracts for removals and remediation.
OIG is responsible for the Ombudsman function. That official receives and reviews complaints and
allegations of inappropriate decisions, actions, or activities involving Agency programs, employees,
contractors, or grantees. A major focus of the Ombudsman involves hazardous waste management and
cleanup activities. The Ombudsman screens complaints and recommends work assignments, for staffing
within OIG offices, monitors those work assignments, and reviews reports of findings and recommendations.
The Ombudsman also informs external stakeholders of the results of reviews. The OIG Ombudsman will
complete actions on about half of 28 active cases, and open new cases as needed.
The OIG, by statute, operates a Hotline as a direct opportunity for EPA employees, contractors, and the
public to provide information about possible waste, fraud, or abuse. Upon review, this information is
referred to the appropriate authorities, or investigated by the OIG for recommendations of possible actions.
OIG FY 2004 Plan 15
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