U.S. Environmental Protection Agency
                   Office of Inspector General

                   At  a   Glance
                                                           11-2-0213
                                                          May 2, 2011
                                                                Catalyst for 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) 2011 First Quarter
Financial Statements. We did
so to assist EPA in evaluating
whether its quarterly financial
statements were compiled
consistently with the Treasury
United States Standard General
Ledger Crosswalk, and to
identify significant fluctuations
in financial line item balances
from the previous year.
Agreed-Upon Procedures on EPA's Fiscal Year
2011  First Quarter Financial Statements
Background

Agencies submit unaudited
interim financial statements to
the Office of Management and
Budget 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.
For further information,
contact our Office of
Congressional, Public Affairs
and Management at
(202)566-2391.

The full report is at:
www.epa.qov/oiq/reports/20117
20110502-11-2-0213.pdf
 What We Found
We performed certain agreed-upon procedures on the Agency's FY 2011 First
Quarter Financial Statements. We compared the statements with EPA's
crosswalk, recomputed them for mathematical accuracy, and compared them with
balances separately generated by us.

Below are the results of our performing the agreed-upon procedures:

    •   The financial statements generated by the Office of Inspector General
        agreed with EPA's FY 2011 First Quarter Financial Statements for the
        Consolidated Balance Sheet, Consolidated Statements of Net Cost, Net
        Cost by Goal, Consolidating Statement of Changes in Net Position
        (including Earmarked Funds), Combined Statement of Budgetary
        Resources, and Statement of Custodial Activity.
    •   EPA's Financial Statement Preparation Guide for the 2011 financial
        statements needed to be updated in two places.
    •   General ledger account discrepancies were identified in our comparison
        of Treasury's financial statement crosswalk to the Agency's financial
        statement crosswalk.
    •   No differences were identified during our comparison of Treasury's
        Closing Instructions to EPA's Closing Instructions.
    •   EPA's Treasury Symbols were in compliance with Statement of Federal
        Financial Accounting Standards 27.
    •   The on-top entry to record child agency balances agreed with the
        support.
    •   The Agency properly reversed the FY 2010 on-tops in FY 2011.
    •   There were differences between the FY 2011 first quarter beginning
        balances and FY 2010 ending balances.
    •   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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