U.S. Environmental Protection Agency
                   Office of Inspector General

                   At  a  Glance
                                                            09-2-0161
                                                          June 8, 2009
                                                                 Catalyst far Improving the Environment
Why We Performed These
Agreed-Upon Procedures
We performed agreed-upon
procedures on the U.S.
Environmental Protection
Agency (EPA) Fiscal Year
(FY) 2009 first quarter
Financial Statements. We did
so to assist EPA in evaluating
whether its quarterly Financial
Statements were compiled
consistent with the Treasury
United States Standard General
Ledger (USSGL) Crosswalk,
and to identify significant
fluctuations in financial line
item balances from the
previous year.
Background
Agencies submit unaudited
interim Financial Statements to
the Office of Management and
Budget (OMB) 21 days after
the end of each of the first three
quarters of the fiscal year.
Agencies should include
management's explanation of
significant variances in types or
amounts of assets, liabilities,
costs, revenues, obligations,
and outlays, along with the
submitted statements.
Agreed-Upon Procedures on EPA's Fiscal Year 2009
First Quarter Financial Statements
For further information,
contact our Office of
Congressional, Public Affairs
and Management at
(202)566-2391.

To view the full report,
click on the following link:
www.epa.gov/oig/reports/2009/
20090608-09-2-0161.pdf

 What We Found
We performed certain agreed-upon procedures on the Agency's first quarter
FY 2009 Financial Statements.  We compared the statements with EPA's
crosswalk, recomputed them for mathematical accuracy, and compared them with
balances separately generated by us. Except for immaterial rounding differences,
the amounts agreed.  Below are the results of our performing the agreed-upon
procedures:

 •  The support for Lines 1 and 19c did not agree with the Agency's Combined
    Statement of Budgetary Resources.
 •  The Agency could provide a clearer explanation of the quarterly analysis
    provided to OMB regarding changes in the Statement of Budgetary
    Resources.
 •  Two items should be updated based on our comparison of EPA's Financial
    Statement Preparation Guide for the FY 2009 Financial Statements to OMB
    Circular A-136.
 •  There were two differences between EPA's Financial Statement Crosswalk
    and the Treasury USSGL Crosswalk guidance.
 •  We identified eight differences between EPA's Year End Closing Table and
    Treasury's Closing Instructions.
 •  We found that EPA's Treasury Symbols were in compliance with Statement
    of Federal Financial Accounting Standards 27.
 •  We found that the on-top entry to record child agency balances agreed with
    the support.
 •  One item  was not reversed properly based  on the Agency's designation of
    the type of adjustment. The FY 2009 Financial Statement Preparation Guide
    states that entry type "E. Nominal Account Only" should not be reversed.
    The Agency will make the change in the second quarter.
 •  There was a difference between the FY 2009 Report of General Ledger
    Balance by Treasury Symbol beginning balances and FY 2008 ending
    balances in general ledger account 4201. The net difference of $43,627 was
    the result  of account 4165 incorrectly closing to account 4201.
 •  The elimination and consolidation entries appear reasonable and complete.

The agreed-upon procedures do not constitute an audit of the quarterly Financial
Statements or any part thereof, the objective of  which would be the expression of
an opinion on the quarterly Financial Statements or any part thereof.

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