OFFICE OF
INSPECTOR GENERAL
Semiannual
Report to Congress
April 1, 2016-September 30, 2016
EPA-350-R-16-002
November 2016
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Index of Reporting Requirements
Inspector General Act of 1978, as amended
Section 4(a
Review of legislation and regulations
39-40
Section 5(a
Significant recommendations for corrective action
10-24, 32-34
Section 5(a
Matters referred to prosecutive authorities
25-30, 34-35, 48, 50
Section 5(a
List of reports issued
51-55
Section 5(a
Audit, inspection and evaluation reports—questioned costs
2, 7, 48-49, 51-55
Section 5(a
Prior audit, inspection and evaluation reports unresolved
48-49, 56-58
Section 5(a
Section 5(a
12) Significant management decisions with which OIG disagreed
14-16) Peer reviews conducted
None
Section 5(a
Reports with corrective action not completed
59-81
Section 5(a
Summaries of significant reports
10-24, 32-34
Section 5(a
Audit, inspection and evaluation reports—funds to be put to better use
2, 7, 48-49, 51-55
Section 5(a
Significant revised management decisions
None
Section 5(a
Significant problems, abuses and deficiencies
10-35
Section 5(a
Information or assistance refused
Requirement
Subject
Pages
Abbreviations
CFR Code of Federal Regulations
CSB U.S. Chemical Safety and Hazard Investigation Board
EPA U.S. Environmental Protection Agency
FY Fiscal Year
NESHAP National Emission Standards for Hazardous Air Pollutants
OIG Office of Inspector General
Are you aware of fraud, waste or abuse in an
EPA program?
EPA Inspector General Hotline
1200 Pennsylvania Avenue, NW (2431T)
Washington, DC 20460
(888) 546-8740
(202) 566-2599 (fax)
OIG Hotline@epa.gov
Learn more about our OIG Hotline.
EPA Office of Inspector General
1200 Pennsylvania Avenue, NW (2410T)
Washington, DC 20460
(202) 566-2391
www.epa.gov/oiq
Subscribe to our Email Updates
Follow us on Twitter @EPAoig
Send us your Project Suggestions
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Message to Congress
During this semiannual period, the hotline operated by the Office of Inspector
General (OIG) of the U.S. Environmental Protection Agency (EPA) received
195 complaints of fraud, waste and abuse. These complaints generated a
number of issues for scrutiny through audit, evaluation and investigative work.
Also, the OIG made available a new poster encouraging anyone who sees
something wrong to report it to our hotline. The OIG completed numerous
hotline reviews for which we issued results and recommendations.
Results Stemming From OIG Work on Hotline Complaints
Based on a hotline complaint, we found that an EPA employee had banked so
much religious compensatory time that upon retirement the person received a
payout for unused time of more than $32,000. Further, a review of the agency's
internal controls for religious compensatory time found that 13 other employees, upon separation,
received a total of about $41,000 for unused time, and additional employees may earn up to nearly
$82,000 in future payments if efforts are not made to reduce their high balances.
As a result of action by the EPA OIG Hotline review process, the agency took emergency steps to reduce
the threat of asbestos exposure to residents near the abandoned Old Davis Hospital being demolished in
Statesville, North Carolina. After the OIG sent a memo to the agency noting how debris at the site
containing asbestos was not being properly treated, the EPA confirmed the potential asbestos risk,
informed nearby residents of the problem, obtained funding, kept the debris pile wet, performed air
monitoring, secured the site, and completed an emergency removal of 400 tons of debris.
A hotline investigation resulted in an Arlington, Texas, laboratory and its top officials being debarred
from federal procurement for a year related to entry of false information in laboratory reports.
Other Key Results
Although progress has been made to improve cleanup at the CTS of Asheville Superfund Site in
North Carolina, where several residents had to be moved from their homes due to unsafe levels of the
chemical trichloroethylene in the air, improvement can be made to
accelerate the pace as well as in communication efforts. Vapor
intrusion work plans did not include some prior sampling, and
some monitoring was too limited.
Our examination of the Renewable Fuel Standard program found
that the EPA has not complied with the requirement to provide a
report on the impacts of biofuels every 3 years to Congress, which
could result in Congress and others not having sufficient
information to make decisions about the standard.
OiG Accomplishments
During Reporting Period
• More than $191 million in questioned
costs and recommended efficiencies.
® More than $243,000 in total fines and
recoveries.
• 201 reports issued {39 by EPA OIG
and 162 by Single Auditors).
• 73 investigative cases closed.
• 43 administrative actions resulting
from investigative cases.
• 208 hotline inquiries closed.
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Semiannual Report to Congress April 1, 2016—September 30, 2016
We also found that, with regard to the F.PA's Transit Subsidy Benefits program—through which
approximately $9.6 million a year was spent for subsidies managed by 13 different EPA offices—the
agency did not comply with all federal internal control requirements, resulting in at least $137,000 in
unnecessary payments.
In a long-running case, John Bennett, the former Chief Executive Officer of a company that treated and
disposed of contaminated soil, was sentenced to 63 months in prison, and ordered to pay $3.8 million in
restitution, for his role in fraud and kickback schemes at the Federal Creosote Superfund site in New
Jersey. In another case, a Mississippi man—David L. Fnsby—was sentenced to 18 months in prison for
defrauding scrap metal brokerage companies out of more than $144,000.
An Atlanta, Georgia, man was found guilty of 97 criminal counts, including assault and robbery of an
EPA Special Agent, and sentenced to 55 years in prison (50 years to be served in confinement and the
remaining 5 years on probation). The individual had robbed an EPA Criminal Investigation Division
Special Agent m Charge at gunpoint and stolen the agent's vehicle, along with numerous other items. The
EPA OIG had responded to the onginal crime scene and was actively involved in the investigation.
A Saratoga County, New York, man was sentenced to 3 days in jail and 3 years" probation for making
terroristic threats to two federal employees (including one at the EPA). The man had left threatening voice
messages and posted numerous threatening comments in internet chat rooms directed at the EPA and other
federal employees who enforce environmental laws, including talking about opening fire on agents.
Look Back at ROI Data (in millions of dollars) From 2011-2016
Target ROI ROI Achieved
1200
"i iooo
800
600
400
200
2010
2011
2012
2013
2014
2015
2016
OIG Return on Investment
Increases
Over the past 6 years, the OIG
endured substantial resource
cuts that tested this
organization, yet we adapted
and prevailed, thanks in large
part to successfully managing
efficiencies. Despite enduring
a government shutdown in
2013, agency sequestration,
increasing congressional demands, budget restrictions and a near 20-percent staff reduction, the OIG's
production, in many ways, has improved. Return-on-investment (ROI) data reveal enormous gains since
fiscal years 2011 through 2016 (see graph). This surge is particularly impressive considering the large
amount of mandated work that must done, such as an annual audit of the agency's financial statements.
Further details on ROI are in this report's "Scoreboard of Results.
Arthur A. Elkins Jr.
Inspector General
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Table of C
About EPA and Its Office of Inspector General 1
Scoreboard of Results 2
FY 2016 EPA Management Challenges Issued 3
Furthering EPA's Goals and Strategies 4
Status of Impediments to OIG Efforts 6
OIG Identifies Funds to Be Put to Better Use and
Health and Environmental Concerns 7
Significant OIG Activity 8
Congressional Activities 8
Human Health and Environmental Issues 10
Agency Business Practices and Accountability 16
Investigations 25
U.S. Chemical Safety and Hazard Investigation Board 31
Hotline Activities 33
Other Activities 39
Other Results of OIG Work 41
Follow-Up Is Important Aspect of OIG Efforts 41
Single Audit Reporting Efforts Make Impact 43
Actions Taken on Reports Result in Improvements 45
Projects Generated by Earlier OIG Work 46
Agency Best Practices Noted 47
Statistical Data 48
Profile of Activities and Results 48
Audit, Inspection and Evaluation Report Resolution 49
Summary of Investigative Results 50
Appendices 51
Appendix 1—Reports Issued 51
Appendix 2—Reports Issued Without Management Decisions 56
Appendix 3—Reports With Corrective Action Not Completed 59
Appendix 4—Peer Reviews Conducted 82
Appendix 5—OIG Mailing Addresses and Telephone Numbers 83
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
About EPA and Its
Office of Inspector General
U.S. Environmental Protection Agency
The mission of the U.S. Environmental Protection Agency (EPA) is to protect
human health and the environment. As America's steward for the environment since
1970, the EPA has endeavored to ensure that the public has air that is safe to breathe,
water that is clean and safe to drink, food that is free from dangerous pesticide residues,
and communities that are protected from toxic chemicals.
EPA Office of Inspector General
EPA OIG Peer Reviewed
The systems of quality control for the
EPA OIG are peer reviewed by another
OIG on a regular basis to ensure that the
EPA OIG satisfies professional standards.
The last external peer review of the EPA
OIG's audit and evaluation offices was
completed in June 2015 and the last
external peer review of the EPA OIG's
investigations office was completed in
December 2014. Both reviews gave the
EPA OIG the highest rating possible-
pass. Further details are in Appendix 4.
The Office of Inspector General (OIG), established by the
Inspector General Act of 1978, as amended, 5 U.S.C. App. 3,
is an independent office of the EPA that detects and prevents
fraud, waste and abuse to help the agency protect human health
and the environment more efficiently and cost effectively. OIG
staff are located at EPA headquarters in Washington, D.C.; at the
EPA's 10 regional offices; and at other EPA locations, including
Research Triangle Park, North Carolina, and Cincinnati, Ohio.
The EPA Inspector General also serves as the Inspector General
for the U.S. Chemical Safety and Hazard Investigation Board
(CSB). Our vision, mission and goals are as follows:
Vision
Be the best in public service and oversight for a better environment tomorrow.
Promote economy, efficiency, effectiveness, and prevent and detect fraud, waste, and
abuse through independent oversight of the programs and operations of the EPA and
CSB.
1. Contribute to improved human health, safety, and environment.
2. Contribute to improved EPA and CSB business practices and accountability.
3. Be responsible stewards of taxpayer dollars.
4. Be the best in government service.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Scoreboard of Results
The information below shows taxpayer return on investment for work performed by the EPA OIG during fiscal year
(FY) 2016 compared to FY 2016 annual performance goal targets. All results reported are based on goals and plans
established based on the Government Performance and Results Act.
Annual Performance Goal 1:
Environmental and business outcome actions taken or realized by the EPA (based on OIG recommendations)
Target: 274
Reported: 285
(107% of goal)
Supporting measures
292 Environmental and management actions implemented or improvements made
1 Critical congressional and public concern addressed
1 Legislative or regulatory change made
Annual Performance Goal 2:
OIG environmental and business output recommendations, awareness briefing or testimony (for agency action)
Target: 1,094
Reported: 1,127
(103% of goal)
Supporting measures
478 Environmental and management recommendations or referrals for action
521 OIG-identified findings in external reports impacting EPA
32 Environmental and management risks and vulnerabilities identified
96 External awareness briefings, training or testimony given
Annual Performance Goal 3:
Monetary return on investment - potential monetary return on investment as percentage (220%) of budget
Target: 220%
Return on Investment
Reported: $1.07 billion *
(2,098% of goal)
Supporting measures
$14.32 Questioned costs
$178.12 Recommended efficiencies, costs saved
$0.33 Fines, penalties, settlements and restitutions resulting from OIG investigations
$14,900.7 Fines, penalties, settlements and restitutions resulting from joint investigations
between EPA OIG and other federal entities *
$886.26 Other federal recommended efficiencies (non-EPA unliquidated funds identified by
EPA OIG)
Annual Performance Goal 4:
Criminal, civil and administrative actions reducing risk or loss/operational integrity
Target: 145
Reported: 181
(125% of goal)
Supporting measures
10 Criminal convictions
10 Indictments, informations and complaints
5 Civil actions
66 Administrative actions (other than debarments or suspensions)
28 Suspension or debarment actions
23 Allegations disproved
39 Fraud briefings
Other (no targets established)
Savings and recommendations sustained from current and prior periods:
• $0.41 million in questioned costs sustained
• $25.79 million in cost efficiencies sustained or realized
• 374 recommendations sustained (88% of recommendations issued)
Reports Issued:
• 67 reports issued by EPA OIG
» 258 issued by single auditors **
* The total reported return on investment for the EPA OIG of $1.07 billion does not include the $14.9 billion settlement reached
as a result of efforts by the U.S. Department of Justice Civil Fraud Task Force that developed a civil case against British
Petroleum related to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The EPA OIG participated on the task force.
"Further details on single audits, which are generally audits of nonfederal entities performed by private firms, are on page 43.
Sources: OIG Performance Measurement Results System and Inspector General Enterprise Management System.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
FY 2016 EPA Management Challenges Issued
Attention to agency management challenges—areas with greater vulnerability to waste,
fraud, abuse and mismanagement—could result in better protection for the public, and
increased confidence in management integrity and accountability. As required by the
Reports Consolidation Act of 2000, the OIG reported the following issues that it
considered the EPA's major management challenges for FY 2016. The issues are
discussed in Report No. 16-N-0206. issued June 16, 2016.
• The EPA Needs to Improve Oversight of States,
Territories and Tribes Authorized to
Accomplish Environmental Goals: Oversight of
states, territories and tribes requires that the EPA
establish consistent baselines to be met and
monitoring programs.
• The EPA Needs to Improve Its Workload Analysis to Accomplish Its
Mission Efficiently and Effectively: EPA program and regional offices need to
conduct more systematic workload analyses and identify workload needs.
• The EPA Needs to Enhance Information Technology Security to Combat
Cyber Threats: Information security challenges for the EPA include improving
its information security program and managing contractors that provide support.
• The EPA Continues to Need Improved Management Oversight to Combat
Waste, Fraud and Abuse: Improvements are needed regarding time and
attendance controls, segregation of duties, real property management and travel.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Furthering EPA's Goals and Strategies
When conducting our audit and evaluation work during the second half of FY 2016, we took into account the EPA's
five strategic goals and four cross-agency strategies in the agency's FYs 2014-2018 Strategic Plan. The table below
shows how our reports on the EPA aligned with the agency's goals/strategies.
OIG-lssued Reports — Linkage to EPA Goals and Strategies
OIG Report
Report No.
Climate
Change/
Air
Quality
Protecting
America's
Waters
Cleaning
Communities/
Sustainable
Development
Safe
Chemicals/
Preventing
Pollution
Enforcing
Laws /
Ensuring
Compliance
Working
Toward
Sustainable
Future
Making
Difference in
Communities
State, Tribal,
Local and
International
Partnerships
Embracing
EPA as High-
Performing
Organization
EPA Should Timely Deobligate
Unneeded Contract, Purchase and
Miscellaneous Funds
16-P-0135
X
EPA Needs to Assess Environmental
and Economic Benefits of Completed
Clean Water State Revolving Fund
Green Projects
16-P-0162
X
X
X
Clean Air Act Facility Evaluations Are
Conducted, but Inaccurate Data
Hinder EPA Oversight and Public
Awareness
16-P-0164
X
X
EPA Region 9 Needs to Improve
Oversight Over Guam's Consolidated
Cooperative Agreements
16-P-0166
X
X
EPA Complied With Improper
Payment Legislation, but Stronger
Internal Controls Are Needed
16-P-0167
X
EPA Region 9 Needs to Improve
Oversight Over American Samoa
Consolidated Cooperative
Agreements
16-P-0181
X
X
EPA Needs Better Data, Plans and
Tools to Manage Insect Resistance to
Genetically Engineered Corn
16-P-0194
X
EPA Improved Its National Security
Information Program, but Some
Improvements Still Needed
16-P-0196
X
EPA's Key Management Challenges-
2016
16-N-0206
X
X
X
X
X
X
X
X
X
EPA Region 9 Needs to Improve
Oversight Over Commonwealth of the
Northern Mariana Islands
Consolidated Cooperative
Agreements
16-P-0207
X
X
Follow-Up Report: EPA Has
Completed Actions to Improve
Implementation of the Rulemaking
Process
16-P-0211
X
EPA Improved Controls Over Billing
Reimbursable Interagency
Agreement Expenditures to Other
Agencies
16-P-0212
X
EPA's Financial Oversight of
Superfund State Contracts Needs
Improvement
16-P-0217
X
Hawaii Department of Health Needs
to Reduce Open Grants and Unspent
Funds
16-P-0218
X
X
EPA Has Developed Guidance for
Disaster Debris but Has Limited
Knowledge of State Preparedness
16-P-0219
X
X
X
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
OIG Report
Report No.
Climate
Change/
Air
Quality
Protecting
America's
Waters
Cleaning
Communities/
Sustainable
Development
Safe
Chemicals/
Preventing
Pollution
Enforcing
Laws /
Ensuring
Compliance
Working
Toward
Sustainable
Future
Making
Difference in
Communities
State, Tribal,
Local and
International
Partnerships
Embracing
EPA as High-
Performing
Organization
EPA Has Developed Guidance for
Disaster Debris but Has Limited
Knowledge of State Preparedness
16-P-0222
X
X
X
EPA Cannot Assess Results and
Benefits of Its Environmental
Education Program
16-P-0246
X
Audit of Financial Statements for
EPA's Hazardous Waste Electronic
Manifest System Fund From
Inception (October 5, 2012) to
September 30, 2014
16-F-0251
X
Cybersecurity Act of 2015 Report:
EPA's Policies and Procedures to
Protect Systems With Personally
Identifiable Information
16-P-0259
X
EPA Needs to Improve Oversight of
Its Transit Subsidy Benefits Program
16-P-0268
X
EPA Has Not Met Certain Statutory
Requirements to Identify
Environmental Impacts of Renewable
Fuel Standard
16-P-0275
X
X
X
EPA Region 9 Needs to Improve
Oversight of San Francisco Bay
Water Quality Improvement Fund
Grants
16-P-0276
X
X
EPA Achieved Scientific Benefits
When Using Reimbursable Research
Agreements, but Better Estimating of
In-Kind Costs Is Needed
16-P-0279
X
EPA Oversight of Travel Cards
Needs to Improve
16-P-0282
X
Progress Made, but Improvements
Needed at CTS of Asheville
Superfund Site in North Carolina to
Advance Cleanup Pace and Reduce
Potential Exposure
16-P-0296
X
Oregon Health Authority's Prior
Labor-Charging Practices Under EPA
Grants Did Not Meet Requirements
16-P-0313
X
X
X
EPA Needs a Risk-Based Strategy to
Assure Continued Effectiveness of
Hospital-Level Disinfectants
16-P-0316
X
Manchester Band of Pomo Indians
Needs to Improve Its Financial
Management System and
Demonstrate Completion of Grant
Work
16-P-0320
X
X
X
Fiscal Years 2014 and 2013 Financial
Statements for the Pesticides
Reregistration and Expedited
Processing Fund
16-F-0322
X
Fiscal Years 2014 and 2013 Financial
Statements for the Pesticide
Registration Fund
16-F-0323
X
Enhanced Controls Needed to
Prevent Further Abuse of Religious
Compensatory Time
16-P-0333
X
Totals
4
10
4
5
3
4
3
5
19
5
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Status of Impediments to OIG Efforts
In our semiannual report for the previous period, we reported on several impediments to
OIG work. We report here on progress made on those previous items during the current
period; there are no new impediments to report.
The EPA Office of Homeland Security, other EPA offices and the OIG have agreed upon
an Insider Threat Policy that provides an appropriate role for, and participation by, the
OIG. Implementing procedures consistent with that policy are to follow.
The OIG and EPA Office of Homeland Security continue to discuss sharing of
information between these offices regarding certain matters involving national security or
classified information, and involvement by the Office of Homeland Security or OIG with
the Federal Bureau of Investigation on those matters. While we have not reached final
agreement on protocols that will govern such cases, as far as the OIG is aware, there are
no current cases within OIG purview from which the OIG has been precluded access.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
OIG Identifies Funds to Be Put to Better Use
and Health and Environmental Concerns
During the semiannual reporting period, a number of reports that we issued noted
instances of funds that could potentially be put to better use. For example:
• We identified Superfund State Contracts with available reimbursable funds totaling
$2.3 million that could be used for other projects. (Report No. 16-P-0217)
• We found that up to $156.5 million in FY 2013 Clean Water State Revolving
Fund awards could be at risk of misuse due to EPA regions not properly
assessing state performance. (Report No. 16-P-0222)
• Without adequate internal controls and oversight, more than $193 million in grant
funds to the Pacific Territories (Guam, American Samoa and Commonwealth of
the Northern Mariana Islands) may not be administered efficiently and effectively.
(Report Nos. 16-P-0166. 16-P-0181 and 16-P-0207. respectively)
• Only one of the EPA's 13 Transit Subsidy Benefits program locations
implemented all minimum internal control requirements, increasing the risks of
potential waste and abuse for about $10 million in such payments annually. We
found at least $137,000 in unnecessary payments. (Report No. 16-P-0268)
In addition, we found instances in which the EPA can better protect human health and the
environment. For example:
• Despite progress made in protecting residents near the CTS of Asheville
Superfund site in North Carolina, improvements can be made to accelerate the
pace of cleanup and improve vapor intrusion work plans. (Report No. 16-P-0296)
• Because the EPA has not complied with requirements to provide a report on the
impact of biofuels to Congress every 3 years, Congress and other stakeholders
lack key information on biofuel impacts. (Report No. 16-P-0275)
• In response to natural disasters, the EPA has limited information on the types of,
volumes of and disposal sites for disaster debris that is not hazardous waste and,
consequently, the EPA cannot assess states" readiness to manage disaster debris.
(Report No. 16-P-0219)
Details on these and other issues are in the "Significant OIG Activity" section.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Significant OIG Activity
Congressional Activities
Assistant Inspector General for Investigations Testifies on Employee Misconduct
On May 18, 2016, Patrick Sullivan, Assistant Inspector General for Investigations,
testified before the U.S. House of Representatives Committee on Oversight and
Government Reform on OIG Investigations of Employee Misconduct at the
U.S. Environmental Protection Agency. At the committee's request, Mr. Sullivan
provided an overview of several cases of EPA employees or contractors who had viewed
and downloaded pornography on government-issued computers, as well as other types of
misconduct, such as misuse of government funds and equipment. Some of the cases
resulted in criminal prosecution, termination of employment and repayments to the EPA.
Mr. Sullivan noted that most of the instances of misconduct had occurred at least 2 years
earlier, and the EPA has made significant improvements since then. "I am happy to report
that since I last testified before this committee ... in April 2015, the agency's internal
adjudication process has dramatically improved." Mr. Sullivan noted that, at the
suggestion of the committee, the OIG and agency officials now meet biweekly to address
cases. "Misconduct cases are now being addressed faster and more consistently by EPA
management. This increased efficiency is the result of the coordination and
communication between the OIG and the agency to create a streamlined process to
address employee misconduct issues. I believe that this process can serve as a 'best
practices' model for the federal government," he said.
Counsel to the Inspector General Testifies on
Unimplemented Recommendations
On June 14, 2016, Alan Larsen, Counsel to the Inspector General, testified before the
U.S. Senate Committee on Environment and Public Works, Subcommittee on Superfund,
Waste Management, and Regulatory Oversight, on Unimplemented OIG
Recommendations at the U.S. Environmental Protection Agency and U.S. Chemical
Safety and Hazard Investigation Board. Mr. Larsen noted that, as of March 31, 2016,
there were 148 recommendations unimplemented by the EPA (89 at least 1 year old) and
10 recommendations unimplemented by CSB (all at least 1 year old). Summaries on
unimplemented recommendations are included in each Semiannual Report to Congress.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
"Implementation of the OIG's recommendations is vital to the effectiveness and
efficiency of agency programs and operations. The OIG definitely shares this
subcommittee's interest in seeing that the agency is held accountable for addressing the
recommendations," Mr. Larsen said. Mr. Larsen described the tracking process for
recommendations, as well as the resolution process for recommendations with which the
agency disagrees, and emphasized the importance for the agency to act on
recommendations. "The impact of OIG recommendations may be direct cost savings for
the EPA or the CSB, or improvements in program efficiency and/or effectiveness.
While some of these improvements may not result in direct monetary recoveries, the
improvements instead may ensure the integrity of EPA and CSB programs, or result in
other benefits that are not readily translated into a dollar savings amount," he said.
Briefings
Frequent Briefings Provided to Congress
During this reporting period, the OIG provided more than 18 briefings to Congress on the
OIG's work. We regularly offered more focused presentations on individual topics.
Additional OIG work receiving congressional interest included: (1) the EPA's employee
integrity cases; (2) the OIG's ongoing criminal investigation, as well as a separate
evaluation, on the cause of, and the EPA's response to, an August 2015 spill of heavy
metals into a tributary to the Animas River in Colorado from the Gold King Mine; and
(3) the OIG's August 2016 report on whether the EPA complied with statutory reporting
requirements pertaining to the Renewable Fuel Standard.
We briefed committee staff in preparation for hearings held on employee misconduct at
the EPA, and on unimplemented OIG recommendations at the EPA and CSB. During this
reporting period, the OIG received many congressional requests for specific data.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Human Health and Environmental Issues
Progress Made, but Improvements Needed at CTS of Asheville Superfund Site
in North Carolina to Advance Cleanup Pace and Reduce Potential Exposure
Report No. 16-P-0296, issued August 31, 2016
Ambient air sampling inside
a home near the CTS of
Asheville Superfund site.
(EPA photo)
In June 2014, EPA Region 4 moved residents from „ I
Both a video and podcast
three homes near the CTS of Asheville Superfund on the cts of Asheville
site in North Carolina because of unsafe levels of the report are available,
harmful chemical trichloroethylene in the air of their
homes. Our evaluation of actions taken by the agency found that progress has been
made in investigating and cleaning up the site. However, Region 4 could make
improvements to accelerate the pace. Vapor intrusion work plans did not include
some prior sampling, and some monitoring was too limited. Some investigations
were delayed as Region 4 worked to obtain access to private property. In addition,
the region's communication efforts were not always effective, which hampered the
progress of site investigation. Also, the region had not met its commitment to
provide online access to documents. We made 12 recommendations to improve
Region 4's procedures. Most of the recommendations are resolved, but three are not
and resolution efforts are in progress.
EPA Has Not Met Certain Statutory Requirements to Identify
Environmental Impacts of Renewable Fuel Standard
Report No. 16-P-0275, issued August 18, 2016
10% ETHANOL
A podcast on the
Renewable Fuel Standard
report is available.
Sign on a gasoline dispenser noting
the gasoline contains ethanol,
considered a renewable fuel.
(EPAOIG photo)
The EPAs Office of Research and Development has not
complied with the requirement to provide a report on the
impacts of biofiiels every 3 years to
Congress. The Renewable Fuel Standard
program requires a certain volume of renewable fuel to replace or reduce
the quantity of petroleum-based transportation fuel, heating oil or jet fuel.
The program seeks to reduce greenhouse gas emissions, expand the
nation's renewable fuels sector, and reduce oil imports. The EPA provided
a report to Congress in 2011, but the agency has not provided subsequent
reports as required. In addition, the EPA's Office of Air and Radiation has
not fulfilled requirements to analyze and address any negative air-quality
impacts associated with of the standard. Consequently, the EPA, Congress
and other stakeholders lack key information on biofuel impacts needed to
make science-based decisions about the standard. The agency agreed to
take the corrective actions recommended.
10
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Needs Better Data, Plans arid Tools to Manage Insect Resistance to
Genetically Engineered Corn
Report No. 16-P-0194, issued June 1, 2016
Adult corn rootworm feeding on a
corn plant. (U.S. Department of
Agriculture photo)
The EPA's ability to manage and delay increased insect A pod cast on the
resistance to genetically engineered Bacillus thuringiensis 1 1
com report is available.
corn is hindered by challenges with the Insect Resistance
Management program overseen by the EPA. Changes are needed to the
program to increase the agency's ability to proactively detect resistance,
confirm and address potential resistance, and share program information
with stakeholders. In 2015, the corn crop in the United States was valued
at about $50 billion, and 80 percent of the acreage consisted of
genetically engineered Bacillus thuringiensis plantings that have reduced
insecticide applications by 123 million pounds. We recommended that
the agency standardize a testing method for confirming resistance,
develop a method to allow researchers and growers to directly report
resistance concerns, prepare remedial action plans, and increase
requirements for resistance monitoring data. The EPA generally agreed with our
recommendations and provided acceptable corrective actions.
EPA Has Developed Guidance for Disaster Debris but Has Limited Knowledge of
State Preparedness
Report No. 16-P-0219, issued June 29, 2016
Hazardous Waste
According to the EPA, hazardous
waste includes waste that exhibits
at least one of four characteristics:
- Ignitable - Can readily catch
fire.
- Corrosive-Acidic or alkaline.
- Reactive - Unstable under
"normal" conditions.
- Toxic - Harmful or fatal when
ingested or absorbed.
9
5f*
Imwtaliilitv CorrosMty
I oxicny
(EPA image}
The EPA has worked with other federal agencies in response to natural
disasters, but, according to EPA staff, the agency has limited
information on the types of, volumes of and disposal sites for disaster
debris that is not hazardous waste. The EPA can reduce the risk of
future unsafe debris disposal practices by improving its understanding
and awareness of the quality and completeness of state disaster debris
management plans. Without doing so, the EPA cannot assess states"
readiness to manage disaster debris, and scenarios where disaster
debris is not managed or disposed of in an
environmentally sound manner could
result. We recommended that the agency
establish procedures for EPA regions to
obtain necessary information, and develop
a plan to provide assistance to states to
address the major elements identified in
EPA guidance. The EPA agreed with all
our recommendations, and the , .,, ,
Household hazardous waste.
recommendations are resolved. (epa photo)
11
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Needs to Assess Environmental and Economic Benefits of Completed
Clean Water State Revolving Fund Green Projects
Report No. 16-P-Q162. issued May 2, 2016
The EPA does not routinely assess the environmental and
economic benefits of completed Green Project Reserve projects
in the agency's Clean Water State Revolving Fund loan
program. From 2009 through 2014, the EPA awarded
$3.24 billion in Green Project Reserve funding to states, for
such activities as green infrastructure and water and energy
efficiency improvements. We found that the EPA has not
designed a system to collect benefits information after project
completion to ensure this significant investment in funds was
beneficial. Agency and state staff have a perception that
benefits collection would be an administrative burden for
loan recipients. Despite this perception, we noted that
environmental benefits information for some projects had
been collected and is available. We recommended that the
EPA publicly release benefit findings from internal reports,
develop a routine process to collect benefits data, and
evaluate and report the information collected to the public.
All recommendations are unresolved.
Clean Air Act Facility Evaluations Are Conducted, but Inaccurate Data Hinder
EPA Oversight and Public Awareness
Report No. 16-P-Q164, issued May 3, 2016
Information obtained through the EPA's Enforcement and Compliance History Online
website incorrectly indicated that many major Clean Air Act facilities had not received
full compliance evaluations in 5 years; the agency's Compliance Monitoring Strategy
recommends an evaluation every 2 years. We found that the website data were
inaccurate. Most facilities in our review had either received the required evaluation—
conducted to ensure facilities complied with laws and regulations for
protecting the public from harmful air pollutants—or the facility was
no longer considered a major facility and thus did not require the
evaluation. Inaccurate data hinder EPA oversight, reduce assurance
that delegated compliance programs comply with the agency's
strategy, and misinform the public about the status of facilities.
Recommendations made to the EPA included establishing a process to
conduct regular data quality checks, correcting database inaccuracies,
and adding recordkeeping requirements. The agency accepted all
recommendations and provided corrective actions.
12
A podcast on the
green projects report
is available.
Breakdown of the $3,24 billion in Green Project
Reserve work (June 30, 2009 - June 30, 2014)
$585 M (18%)
$387 M (12%)
¦ Green Infrastructure ¦ Energy Efficiency
¦ Water Efficiency ¦ Environmentally Innovative
Source: OIG analysis of EPA National Information
Management System.
I
t 1 a
EPA evaluates stationary sources of air
pollution to evaluate compliance with
applicable requirements. (EPA photo)
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Needs a Risk-Based Strategy to Assure Continued Effectiveness of
Hospital-Level Disinfectants
Report No. 16-P-0316, issued September 19, 2016
As currently designed and implemented, the EPA's Antimicrobial Testing Program does
not assure that hospital-level disinfectant products continue to be effective after they are
registered. Antimicrobial pesticides are designed to destroy or suppress harmful bacteria,
viruses and other microorganisms on inanimate objects and surfaces in hospitals and
other settings. Products found to be effective are reported to the public on an EPA
website, and those that do not meet standards need to be brought into compliance. We
found that infrequent testing and reliance on voluntary manufacturer participation
reduced program effectiveness, and the program's design does not consider risk factors
when prioritizing which products to test. The EPA is currently re-registering all
antimicrobial projects and, thereby, recertifying the efficacy of all registered products.
However, upon completion of the process, the EPA needs to design a risk-based testing
protocol that assures efficacy, and deters and detects noncompliance. The agency agreed
with our recommendations.
Antimicrobial hospital disinfectants tested for efficacy, 2004-2015
Antimicrobial Hospital Disinfectants
Tested for Efficacy
120 114
100
80
60
40
o
38
24 ¦ 26 25
I I I I
20 ¦ ¦ ¦ ¦ ¦ ¦ I "
3 1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: OIG analysis of EPA data.
Summary Report: Fiscal Year 2015 Reviews of EPA's Measurement of
Environmental Program Performance and Outcomes
Report No. 16-N-0180, issued May 19, 2016
This summary report consolidates findings from five OIG reports issued during FY 2015
that expressed a common, significant theme—that the EPA needs to improve data quality
and identify performance measures that drive program results. The five reports disclosed
13
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
common gaps that the EPA has in establishing program goals and identifying metrics
needed to measure the effectiveness and benefits of environmental programs. The control
weaknesses in data accuracy, and in collecting and reporting accurate information,
impede the EPA's ability to show it has achieved results and produced a benefit from
public funds. The OIG made recommendations in each of the reports. Since the agency
has either taken or is taking all corrective actions, we made no further recommendations.
FY 2015 EPA OIG reports addressing need to improve measurement
Report no. Report title
15-P-0032 Needs to Demonstrate Public Health Benefits of Drinking Water State
Revolving Fund Projects
15-P-0198 Benefits of EPA Initiative to Promote Renewable Energy on Contaminated
Lands Have Not Been Established
15-P-0276 EPA Needs Accurate Data on Results of Pollution Prevention Grants to
Maintain Program Integrity and Measure Effectiveness of Grants
15-P-0279 EPA's Presidential Green Chemistry Challenge Awards Program Lacks
Adequate Support and Transparency and Should Be Assessed for Continuation
15-P-0280 EPA Needs to Track Whether Its Major Municipal Settlements for Combined
Sewer Overflows Benefit Water Quality
Source: OIG analysis.
EPA Cannot Assess Results and Benefits of Its Environmental Education
Program
Report No. 16-P-0246, issued July 29, 2016
Setting the Standard,
Measuring Results,
Celebrating Successes
A Report lo Conoresi on :Se Status
Environmental Educoiic'i
ii" th« L'nirso Stales
i-tyii l!«l bnr
:ho EtnAuwmitcJ Eduuf on Adwinc»f Coi.r
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Follow-Up Report: EPA Has Completed Actions to Improve Implementation of
the Rulemaking Process
Report No. 16-P-0211, issued June 23, 2016
We followed up on recommendations in a prior report on the efficiency of the EPA's
rulemaking process (Report No. 13-P-0167). and found that the EPA completed
corrective actions. The Office of Policy developed and issued user guidance for the
ADP TRACKER database, which should improve the clarity and implementation of the
EPA's Action Development Process. Consistent use of the ADP TRACKER database
will assist EPA program offices in following and implementing the EPA's Action
Development Process during the development and issuance of EPA rules.
Follow-Up Review: EPA Updated Information for Indoor Mold Research Tools
Report No. 16-P-0308, issued September 8, 2016
Corrective actions taken by the agency in response to a 2013 report (13-P-0356) were
sufficient to ensure that licensees were not inappropriately marketing EPA research tools
for evaluating indoor mold. The tools were the EPA-patented Mold Specific Quantitative
Polymerase Chain Reaction technology and the agency-developed Environmental
Relative Moldiness Index. The EPA reviewed websites of active licensees to look for
language that suggested EPA endorsement. The agency also finalized its fact sheet on
indoor mold to include a discussion on tool limitations.
15
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Agency Business Practices and Accountability
EPA Needs to Improve Oversight of Its Transit Subsidy Benefits Program
Report No. 16-P-0268, issued August 16, 2016
A podcast on the Transit
Subsidy Benefits report
is available.
EPA calendar year 2014 transit costs
The EPAs Transit Subsidy Benefits program for agency
employees covers 13 separate locations. Most of the locations
did not comply with all of the Office of Management and
Budget's 10 minimum internal control requirements. A transit benefit entails providing
employees with fare media for taking mass transit to and from work. In 2014, the EPA
paid approximately $9.6 million for transit subsidies managed under the 13 offices. Weak
internal controls made EPA transit subsidies vulnerable to potential abuse, and we found
at least $137,000 in unnecessary payments were
made. For example, some separated employees
continued to receive and use transit subsidies. Also,
one EPA region purchased transit passes for all
employees at a discount, when the region could have
paid less by just
paying the actual
costs for only
those employees
needing passes.
The agency
concurred with all
of our
recommendations
for improvement.
Location
Total cost
Region 1 (Boston)
$620,659
Region 2 (New York)
701,020
Region 3 (Philadelphia)
895,770
Region 4 (Atlanta)
287,123
Region 5 (Chicago)
1,143,291
Region 6 (Dallas)
408,804
Region 7 (Kansas City)
100,467
Region 8 (Denver)
218,345
Region 9 (San Francisco)
617,028
Region 10 (Seattle)
448,241
Headquarters (Washington, D.C., Area)
3,965,515
Research Triangle Park Location
126,161
Cincinnati Location
25,857
Total
$9,558,281
Source: OIG analysis of data from EPA regions/offices.
Transit benefits help reduce road
congestion. (EPA photo)
EPA's Financial Oversight of Superfund State Contracts Needs Improvement
Report No. 16-P-Q2.17, issued June 27, 2016
The EPA almost always billed and collected appropriate Superfund State Contract costs,
and properly approved and applied credits. However, we found areas where
improvements were needed. The EPA incurred Superfund State Contract obligations and
expenditures in excess of the authorized cost ceiling for 51 of the 504 active and closed
contracts. The EPA did not perform timely or complete and accurate financial closings
for 20 contracts. Further, the EPA did not have all the up-to-date information needed for
an accurate accrual calculation . With improved oversight, the EPA may manage
Superfund State Contracts more effectively, report results more accurately, and increase
the availability of fluids for cleanups protecting public health. We identified Superfund
State Contracts with available reimbursable funds with the potential to increase
16
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
appropriated funds by $2.3 million. The agency agreed with our recommended corrective
actions.
EPA Should Timely Deobligate Unneeded Contract, Purchase and
Miscellaneous Funds
Report No. 16-P-0135, issued April 11, 2016
The EPA did not deobligate $583,875 from contract, purchase and miscellaneous
obligations that had no activity in the last 18 months. Further, we estimated there could
be an additional $2,962,058 that could be deobligated. When the EPA does not timely
deobligate unliquidated obligations (an obligation or liability that has not been outlaid,
expended or liquidated), the fluids cannot be used for other EPA environmental activities
that would benefit human health and the environment. During the course of our audit, the
agency deobligated $259,065 of the $583,875 that we cited, and agreed to deobligate the
remaining $324,810 and as much of the additional $2,962,058 as appropriate.
No activity in last
18 months
$584k
Identified for
potential
deobligation
$3 mil
Deobligate
EPA Region 9 Needs to Improve Oversight of San Francisco Bay Water Quality
Improvement Fund Grants
Report No. 16-P-0276, issued August 22, 2016
San Francisco Bay and the Golden Gate Bridge.
(U.S. Geological Survey photo)
EPA Region 9 did not consistently administer the EPA's San
Francisco Bay Water Quality Improvement Fund grants it
awarded, and monitor project progress to determine whether
proposed outputs, outcomes and milestones were being
achieved. The EPA has competitively awarded 33 grants,
totaling $40.9 million, to 18 different recipients, to restore the
San Francisco Bay area, with project periods beginning in
FY 2009. We found that EPA personnel did not complete
baseline monitoring accurately, consistently verify that
17
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
grantees submitted required documents and reports, consistently collect progress reports,
or review and document monitoring and oversight activities. We recommended that EPA
Region 9 provide necessary guidance and training to its personnel. Region 9 agreed with
the recommendations and indicated corrective actions will apply to Region 9's entire
grants program, not just the San Francisco Bay water program.
EPA Regional Offices Need to More Consistently Conduct Required
Annual Reviews of Clean Water State Revolving Funds
Report No, 16-P-0222. issued July 7, 2016
The EPA did not always perform annual reviews of state Clean Water State Revolving
Fund grants as required, which may lead to undetected misuse of federal funds. Regions
did not always review single audit reports or include single audit findings in program
evaluation reports. Since its inception, the Clean Water State Revolving Fund has
provided more than $105 billion to states to help improve water quality. Conducting
annual reviews in accordance with applicable guidance allows EPA regions to assess
state performance, and helps identify opportunities to improve clean water infrastructure
and provide for better use of the fundus billions of dollars. We found that up to
$156 million in FY 2013 grant awards could be at risk of misuse due to EPA regions not
properly assessing state fund performance. The agency agreed to take sufficient
corrective actions for eight recommendations, but two remain unresolved.
A wastewater treatment plant in Stratford, Connecticut (EPA photo), with an
OIG-prepared overlay showing how Clean Water State Revolving Funds have
cumulatively exceeded $105 billion since 2000 by year.
18
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Oversight of Grants for Pacific Territories Need Improvement
Commonwealth
of the Northern
Mariana Islands
Guam
l> i e of C
li q u a t o r
tte!
American Samoa
•JCIClC J1)l
T r o p j c
A map of the U.S. Pacific territories. (EPA image)
In three separate audits of consolidated
cooperative agreements (grants) that EPA
Region 9 manages for U.S. Pacific
Territories—Guam, American Samoa and
Commonwealth of the Northern Mariana
Islands—we found that internal controls
over the funding needed improvement.
For all three territories, agreements have
inconsistent terms and conditions on
payments, in-kind and interagency
agreements were inconsistently reported,
and EPA project files were not readily available to third parties. Additional weaknesses
were also noted. EPA Region 9 had awarded a total of
$193 million in grant funds to the three territories for the
periods reviewed: $67 million to Guam in FYs 2009-2014;
$68 million to American Samoa in FYs 2006-2014; and
$58 million to the Commonwealth of the Northern Mariana
Islands in FYs 2008-2014. Ensuring those funds are
administered efficiently and effectively is important. Region 9
concurred with our recommendations included in all three
reports, which follow.
The Guam Environmental Protection Agency
building. (EPA OIG photo)
• Report IMo. 1S-P-0186, EPA Region 9 Needs to Improve Oversight Over Guam's
Consolidated Cooperative Agreements, issued May 9, 2016
• Report No. 16-P-0181, EPA Region 9 Needs to Improve Oversight Over American Samoa
Consolidated Cooperative Agreements, issued May 23, 2016
• Report No. 16-P-0207. EPA Region 9 Needs to Improve Oversight Over
Commonwealth of the Northern Mariana Islands Consolidated Cooperative Agreements,
issued June 20, 2016
'T v *«£
Left: The Agingan Wastewater
Treatment Plant in Saipan,
Commonwealth of the Northern
Mariana Islands. (EPA OIG photo)
Right: The American Samoa
Environmental Protection Agency
office building in Pago Pago, which
is a green building. (American
Samoa Environmental Protection
Agency photo)
19
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Improved Controls Over Billing Reimbursable Interagency Agreement
Expenditures to Other Agencies
Report No. 16-P-0212, issued June 27, 2016
In prior audits, we found that the EPA had not timely billed other federal agencies for
reimbursable costs. In this audit, we found that the EPA is billing costs under
reimbursable interagency agreements timely and accurately. While the EPA maintained a
backlog of unreimbursed expenses, and had a large balance in federal unbilled
receivables during FY 2012, the EPA implemented actions to expedite billing older
reimbursable costs and reduce federal unbilled receivables. Improvements in the billing
process resulted in a sizeable decrease in federal unbilled receivables—from $26 million
in FY 2012 to about $8 million in FY 2015—a savings of approximately $18 million.
Federal unbilled receivables balances from FYs 2012 to 2015
$30,000,000
$25,000,000
$20,000,000
O $15,000,000
£
< $10,000,000
$5,000,000
$0
FY Posted Accrual
Source: OIG analysis of unbilled receivables balances.
Oregon Health Authority's Prior Labor-Charging Practices Under EPA Grants
Did Not Meet Requirements
Report No. 16-P-0313, issued September 12, 2016
The Oregon Health Authority Public Health Division's practice prior to May 2014 of
charging labor, fringe benefits and indirect costs based on budget allocations rather than
actual activities resulted in more than $12 million in unsupported costs. Also, employee
certifications for those charging solely to one grant were not sufficient. The Oregon
authority received EPA funding in such areas as the Drinking Water State Revolving
Fund, Public Water System Supervision, and Lead-Based Paint. Although the division
began to properly report costs starting in May 2014, those $12 million in costs charged
FY 2012 to 2015 Posted Unbilled Receivables
2012
2013 2014
Fiscal Year
2015
20
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
before then are still unsupported and thus questioned. We recommended that the EPA
disallow and recover that $12 million unless the division can provide support for the
charges. Resolution is pending.
Manchester Band of Pomo Indians Needs to Improve Its Financial Management
System and Demonstrate Completion of Grant Work
Report No. 16-P-0320, issued September 21, 2016
EPA Region 9 requested assistance from the OIG to address concerns related to two
questionable cash draws made under grants awarded to the Manchester Band of Pomo
Indians in California. Region 9 was also concerned that grant
objectives were not being met. We found that Manchester's
inadequate financial system, and shortfalls in completing grant
tasks, resulted in all costs claimed being questioned.
Manchester did not have adequate controls to make sure costs
claimed were allowable and adequately supported, and cash
draw procedures did not meet requirements. As a result, we
questioned $350,721, or 93 percent, of the $378,679 claimed.
Because Manchester also could not provide evidence of
completion for a significant portion of the tasks specified in its
EPA grant work plans, we questioned the remaining amount
claimed. We made various recommendations to EPA Region 9,
including that it disallow all costs claimed, unless Manchester
can support that costs are allowable and grant tasks completed.
EPA Oversight of Travel Cards Needs to Improve
Report No. 16-P-0282, issued August 24, 2016
The Government Charge Card Abuse Prevention Act of 2012 requires Inspectors General
to conduct periodic reviews of travel card programs to analyze risks of illegal, improper
or erroneous purchases and payments. Our audit found that the EPA does not check travel
card bank rebates for accuracy,
resulting in the agency not
knowing whether travel card
rebates received from the bank
are accurate. The EPA also did
not comply with the legal
requirement to return rebates to
each appropriation
proportionally or to the U.S.
Treasury. Instead, the EPA
selectively returned travel
rebates to only a portion of EPA Source: OIG analysis of average delinquency data.
A typical dump site usually found in
remote forested areas within reservation
boundaries. (EPA OIG photo)
EPA's Travel Card Delinquency Percentage
i am
— n.m'
4 ftrra
MWW,
¦
¦
ix>m
n
2013 2014 2DIB
21
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
appropriations. Rebates totaling $240,375 in FY 2014 and $283,789 in FY 2015 were
incorrectly returned to only four of 11 EPA appropriations. The OIG recommended that
the EPA institute a process to verify the accuracy of travel card rebates, and establish
policies and procedures to correctly distribute travel card rebates. The EPA agreed with
all recommendations and provided planned corrective actions.
EPA Achieved Scientific Benefits When Using Reimbursable Research
Agreements, but Better Estimating of In-Kind Costs Is Needed
Report No, 16-P-0279. issued August 22, 2016
Part of an air monitoring station along the 1-15
highway corridor in Las Vegas, Nevada, used in the
near-road monitoring project the EPA conducted
with the U.S. Department of Transportation's
Federal Highway Administration. (EPA photo)
The EPA's Office of Research and Development conducted
research with other entities under reimbursable agreements
that provided benefits to the EPA. and the research was
consistent with the EPA's goals and mission. However, the
office did not completely or consistently develop cost
estimates for its in-kind contributions prior to entering into
the reimbursable agreements. In-kind contributions are part
of project costs, and include nonmonetary supplies and
services, such as personnel, equipment or facilities.
Developing more reliable cost estimates for in-kind
contributions can better reflect the EPA's research
contributions. The EPA agreed with our recommendations
for taking corrective actions to improve the reporting of in-
kind research costs under reimbursable agreements.
EPA Complied With Improper Payment Legislation, but Stronger
Internal Controls Are Needed
Report No. 16-P-0167, issued May 10, 2016
The EPA complied with improper payment legislation when reporting improper
payments in FY 2015. However, while the EPA initially published its Agency Financial
Report in November 2015, the agency found errors and did not publish the revised, final
report until January 2016. We also identified errors in the Improper Payments
Compliance section of the report, resulting in some overstated improper payments and
underreporting of some total dollar outlays. Improvements will result in better use of
funds for environmental and supporting programs. We recommended that the agency
develop controls to avoid future reporting delays and amend, develop and implement
procedures for reliable reporting of some improper payments. The agency concurred with
all recommendations.
22
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Improved Its National Security Information Program,
but Some Improvements Still Needed
Report No. 16-P-0196, issued June 2, 2016
Between 2011 and 2013, we issued three reports and 12 recommendations
to improve the EPA's national security information program. Based on
those recommendations, the EPA improved its controls by including
mandatory training, making nondisclosure agreements more readily
available to those needing them, and standardizing performance
requirements for employees with a security clearance. The EPA completed
corrective actions for all recommendations, except two related to
classification guides that are still in process. During our follow-up review,
we found that it is taking longer to withdraw clearances after EPA
employees leave the agency than it did at the time of a prior report.
Although adequate controls are in place to prevent former employees from
accessing national security information, the agency agreed with our
recommendation to establish controls to ensure that clearances are
withdrawn within 30 days of an employee leaving the EPA.
Cybersecurity Act of 2015 Report: EPA's Policies and Procedures to Protect
Systems With Personally Identifiable Information
Report No. 16-P-0259, issued August 10, 2016
The EPA has 30 systems that contain sensitive personally identifiable information
covered by provisions of the Cybersecurity Act of 2015; none of its systems contain
national security information. Safeguarding information and preventing system breaches
are essential for ensuring that the EPA retains the trust of the American public. Of the
30 covered systems, two were sampled for our audit, which we were required to perform
per the act. We reported our findings to the EPA, and the agency agreed with our results.
Audit of Financial Statements for EPA's Hazardous Waste Electronic Manifest
System Fund From Inception (October 5, 2012) to September 30, 2014
Report No. 16-F-0251, issued August 1, 2016
We rendered an unmodified opinion on the EPA's Hazardous Waste Electronic Manifest
System Fund financial statements covering the period from the fund's inception on
October 5, 2012, to September 30, 2014, meaning that the statements were fairly
presented and free of material misstatement. The system is being designed to create a
means to track off-site shipments of hazardous waste from a generator's site to the site of
the receipt, as well as the disposition of the hazardous waste.
Cover page for Executive Order
13526, Classified National
Security Information.
23
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Disclaimers of Opinion Issued for FY 2014 Financial Statements of
Two Pesticide Funds
We rendered disclaimers of opinion for the FY 2014 financial statements for two pesticide
funds, meaning that we were unable to obtain sufficient evidence to determine whether the
statements were fairly presented and free of material misstatement. For both funds, the EPA
receives funding from fees paid by pesticide manufacturers and amounts appropriated by
Congress. In FY 2014, the EPA allocated its funding to use appropriated amounts, which
would expire, and retained funding from fees; thus, significant payroll amounts paid from
the appropriations were not charged directly to the funds. This resulted in a loss of the audit
trail for reporting separate costs and liabilities. Consequently, the EPA could not adequately
support total FY 2014 costs and liabilities of the two pesticide funds. The EPA agreed with
our findings and initiated corrective actions. Details on each fund were discussed in separate
reports, as follows.
• Report No. 16-F-0322. Fiscal Years 2014 and 2013 Financial Statements for the
Pesticides Reregistration and Expedited Processing Fund, issued September 22, 2016
To expedite the process of reassessing and reregistering older pesticide registrations,
Congress authorized the EPA to collect fees from pesticide manufacturers for deposit
into this fund. We noted a material weakness in that the EPA could not adequately
support $34 million of its FY 2014 fund costs due to the aforementioned reason.
• Report No. 16-F-0323. Fiscal Years 2014 and 2013 Financial Statements for the
Pesticide Registration Fund, issued September 22, 2016
To expedite the registration of certain pesticides, Congress authorized the EPA to
assess and collect pesticide registration fees for deposit into this fund. We noted a
material weakness in that the EPA could not adequately support $28 million of its
FY 2014 fund costs due to the aforementioned reason.
24
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Investigations
Significant Investigations
Executive Sentenced in New Jersey Superfund Site Kickback Scheme
On August 9, 2016, John Bennett, former Chief Executive Officer at Bennett
Environmental Inc., a Canadian company that treated and disposed of contaminated soil,
was sentenced to 63 months in prison, followed by 2 years of supervised release; fined
$12,500; and ordered to pay $3.8 million in restitution. The restitution was also related
to other defendants previously sentenced in this case. Bennett was sentenced relative to
his role in kickback and fraud schemes in connection with obtaining subcontracts for the
treatment and disposal of contaminated soil at a New Jersey Superfund site overseen and
funded by the EPA and the U.S. Army Corps of Engineers.
Bennett was charged with these crimes in August 2009 and was extradited from Canada
to the United States in November 2014 to face trial. After a 3-week jury trial that ended
on March 16, 2016, Bennett was convicted of committing major fraud against the
United States and conspiring to pay more than $1.3 million in kickbacks at the Federal
Creosote Superfund site in Manville, New Jersey. According to court documents,
between 2001 and 2004, Bennett conspired with others at Bennett Environmental to pay
kickbacks. The kickbacks included money wired to a co-conspirator's shell company,
lavish trips, and entertainment expenses and personal gifts to the project manager at
Federal Creosote, in an effort to guarantee the award of soil treatment contracts to his
company. As a result of these kickbacks, Bennett Environmental was fraudulently
awarded tens of millions of dollars in soil treatment and disposal contracts at Federal
Creosote, at higher prices than it otherwise would have bid, causing harm to the EPA.
The investigation at Federal Creosote has resulted in the conviction of 10 individuals
and three companies, involving charges of major fraud against the United States, tax
fraud, money laundering and obstruction of justice. Criminal fines and restitution of
more than $6 million also have been imposed, and seven of the individuals have been
sentenced to serve prison sentences ranging from 5 months to 14 years.
This investigation was conducted jointly with the U.S. Department of Justice 's Antitrust
Division, including that division 's Foreign Commerce Section and the Criminal
Division's Office of Internal Affairs, and the Internal Revenue Service 's Criminal
Investigation Division. Also assisting were U.S. Customs and Border Protection -
Department of Homeland Security, the Canadian Department ofJustice - International
Assistance Group, and the Royal Canadian Mounted Police.
25
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Former Contractor Sentenced for Environmental Fraud Scheme
On July 13, 2016, David L. Frisby, of Kiln, Mississippi, was sentenced to 18 months in
prison for defrauding scrap metal brokerage companies out of more than $144,000. In
addition, Frisby was ordered to pay $144,216 in restitution to his victims. Frisby,
formerly of Fultonville, New York, pleaded guilty on December 10, 2015, to one count of
conspiracy to commit wire fraud in connection with a scheme in which he and others
entered into contracts for the disposal of batteries and other metal waste under false
pretenses by shipping them to Korea.
As part of his plea agreement, Frisby admitted he and his co-conspirators falsely held
themselves out to be representatives of a scrap metal recycling company authorized by the
EPA to dispose of metal waste, and then charged for recycling services never provided.
The investigation disclosed that Frisby and his co-conspirators were not authorized by the
EPA to provide scrap metal recycling services. Furthering the scheme, Frisby, who
formerly served as the Chief Executive Officer of D & L Heritage Enterprises Inc. in
Fultonville, provided his co-conspirators with D & L Heritage incorporation documents
that were fraudulently altered and emailed to victims. Victims transferred money to bank
accounts maintained by Frisby, who retained a portion of the funds for his personal benefit,
and transferred the remainder to his co-conspirators overseas.
This investigation was conducted jointly with the EPA Criminal Investigation Division.
Individual Sentenced to 55 Years for Assault on EPA Special Agent in Charge
On July 1, 2016, an Atlanta, Georgia, man—David Blain Wilson—was found guilty of
97 criminal counts, including those related to the assault and robbery of a special agent,
and sentenced to 55 years in prison, with the first 50 years to be served in confinement
and the remaining 5 years to be served on probation. Wilson also was ordered to pay a
$10,000 fine for hijacking a motor vehicle. On October 22, 2014, Wilson had assaulted
and robbed an EPA Criminal Investigation Division Special Agent in Charge in Atlanta.
He robbed the agent at gun point and stole her government vehicle—which was used by
gang members to pull over other innocent victims to steal their cars—as well as the
special agent's EPA law enforcement credentials and badge, EPA-issued cell phone and
numerous personal items. EPA OIG special agents had responded to the original crime
scene, were involved in surveillance and searches, and were otherwise actively involved
in the investigation.
This investigation was conducted jointly with the Atlanta Police Department and the
U.S. Bureau of Alcohol Tobacco, Firearms and Explosives.
26
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
New York Resident Sentenced for Terroristic Threats Against Federal Employees
On May 11, 2016, a Saratoga County, New York, man was sentenced in Albany County
District Court to 3 days in jail and 3 years" supervised probation for making terroristic threats
by telephone to two federal employees. The caller, identified as Charles Heimerdinger, left a
threatening voice message for an EPA employee and a U.S. Housing and Urban Development
employee. The OIG conducted a search of internet chat rooms and discovered that
Heimerdinger had posted numerous threatening comments directed at EPA employees and
federal law enforcement agents who enforce environmental laws, including threatening to
open fire on agents. Heimerdinger also posted numerous references to weapons he possessed
that were in violation of New York laws regulating the sale and possession of assault weapons
and handguns. Digital evidence, three rifles, a shotgun and two high-capacity magazines were
seized from Heimerdinger"s residence. The subject was charged with two felony counts for
making terroristic threats and pleaded guilty to aggravated harassment in the second degree.
As part of his probation, Heimerdinger is prohibited from trespassing on EPA property.
This investigation was conducted jointly with the New York State Police, the U.S. Federal
Protective Service, and the U.S. Department of Housing and Urban Development OIG.
Individual Found Guilty of Defrauding Federal Agencies
On July 14, 2016, following a jury trial, Alexander Robert Xavier, of Jensen Beach,
Florida, was found guilty of defrauding numerous federal agencies—including the
EPA—by issuing fraudulent bonds to insure government construction projects. A jury
convicted Xavier of major fraud, mail fraud and making false statements. A sentencing
hearing was set for November 4, 2016. According to court documents and evidence at
trial, from approximately May 2008 to October 2010, Xavier devised a scheme to
unlawfully enrich himself by representing that he was an "individual surety" on various
performance and payment bonds—a type of insurance required on major government
construction contracts. During the course of the fraud, Xavier pledged over $25 million in
assets to agencies of the United States; however, these assets did not exist. Xavier issued
a large number of bonds and dealt with various contractors and government agencies. As
a result, Xavier was paid over $400,000 in bond fees.
This investigation is ongoing and is being conducted jointly with the Criminal
Investigation Command of the U.S. Army; the Defense Criminal Investigative Service; the
U.S. General Services Administration: and the OIGs of the U.S. Department of Veterans
Affairs, the U.S. Department of Defense, the U.S. Department of Energy, the U.S.
Department of Housing and Urban Development, and the U.S. Department of State.
27
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Individuals Plead Guilty to Defrauding EPA and Other Agencies
Two Delray Beach, Florida, residents pleaded guilty on April 21, 2016, for their
participation in a conspiracy to defraud more than 10 federal agencies—including the
EPA—by issuing fraudulent bonds to insure government contracts. Brian J. Garrahan and
Kelly A. Spillman each pleaded guilty to one count of conspiracy to commit mail and wire
fraud. According to court documents, from approximately June 2008 through June 2013,
Garrahan and Spillman conspired with others to obtain payments from government
contractors for issuing fraudulent bonds (insurance) for large government contracts. The
fraudulent bonds were individual surety bonds—usually signed by Garrahan and two other
co-conspirators. Garrahan, Spillman and their co-conspirators issued a large number of
bonds dealing with over 100 contractors and at least 15 federal agencies, as well as other
entities. More than 10 federal agencies reimbursed contractors over $4.3 million in bond
fees for the fraudulent bonds issued by Garrahan, Spillman and their co-conspirators.
This investigation is ongoing and is being conducted jointly with the Criminal
Investigation Command of the U.S. Army: the Defense Criminal Investigative Service; the
U.S. General Services Administration: and the OIGs of the U.S. Department of Veterans
Affairs, the U.S. Department of Defense, the U.S. Department of Energy, the U.S.
Department of Housing and Urban Development, and the U.S. Department of State.
Small Disadvantaged Business Owner Debarred for False Statements
Following a 2015 criminal conviction, on September 15, 2016, Hemal Jhaveri of Lone
Tree, Colorado—owner of SofTec Solutions Inc., in Engelwood, Colorado—was
debarred from participating in federal procurement and non-procurement programs for a
period of 5 years. SofTec made false statements to the U.S. Small Business
Administration to retain eligibility in the 8(a) Business Development Program, which
benefits small disadvantaged businesses. These statements allowed SofTec to obtain
preferential treatment in the award of contracts by several government agencies,
including approximately $1.8 million paid by the EPA under a U.S. General Services
Administration contract.
This investigation is ongoing and is being conducted jointly with the OIGs of the U.S.
General Services Administration and the U.S. Small Business Administration, the Major
Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, the Defense
Criminal Investigative Service, and the U.S. Internal Revenue Service Criminal
Investigation Division.
28
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
EPA Enters Into Settlement Agreement for Improper Use of Grant
The Louisiana Department of Environmental Quality was awarded $2.5 million in grant
funds from the EPA's Diesel Emission Reduction Act Program in 2008. An OIG
investigation found that the EPA grant funds were not utilized according to the grant
terms and conditions. The funds were awarded to repower marine diesel engines and
reduce diesel emissions by retrofitting, upgrading and replacing diesel engines and
equipment. The inappropriate use of grant funds centered on two diesel marine vessel
engines being remanufactured at the Tier 1 rather than Tier 2 (less polluting) federal
emission standard, as indicated in the grant. On September 12, 2016, the EPA sent a final
settlement letter to the U.S. Attorney's Office. The EPA accepted the disabling of the two
engines as an acceptable settlement in lieu of repaying the $324,130—the cost of the two
engines—as agreed to by all parties.
Consent Decree Approved for Deepwater Horizon Disaster
On April 4, 2016, the final consent decree between the United States and British
Petroleum was approved in U.S. District Court for the Eastern District of Louisiana,
pursuant to damages related to the April 2010 explosion of the Deepwater Horizon
mobile oil drilling unit and the subsequent uncontrolled oil spill. British Petroleum was
found to be grossly negligent in its practices leading up to the explosion and death of
11 men, and this gross negligence was a key factor in the final settlement with the
company for $14.9 billion in fines, penalties and damages. The EPA OIG participated in
the U.S. Department of Justice Civil Fraud Task Force that developed a civil case against
British Petroleum. Documents reviewed by the task force included several
misrepresentations regarding critical information required to ensure that safe margins and
drilling practices were being followed. The investigation further revealed emails among
the participants of the drilling process indicating that key British Petroleum personnel had
knowledge of these misrepresentations and overlooked them due to time and monetary
factors.
Closed Employee Integrity Cases
Statistics on employee integrity investigation cases closed during the semiannual
reporting period follow. Such investigations involve allegations of criminal activity or
serious misconduct by agency employees that could threaten the credibility of the agency,
validity of executive decisions, security of personnel or business information entrusted to
the agency, or financial loss to the agency (such as abuse of government bank cards or
theft of agency funds). Allegations against former employees involving conflicts of
interest are included in this category.
29
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Political
appointees
SES
GS-14/15
GS-13 and
below
Misc.
Total
Pending 4/1/16*
1
10
38
59
12
120
Open*
0
4
7
13
1
25
Closed*
0
5
13
16
7
41
Pending 9/30/16*
1
9
32
56
6
104
* Total number of subjects for employee cases.
¦ Political Appointees
Special Access Authority Sought for OIG Special Agents
The OIG's Office of Investigations has been working with the agency to get Federal
Emergency Response Official badge designation—also referred to as the "red stripe"
designation—on the Personal Identification Verification cards for all of the OIG's special
agents/criminal investigators. This designation is being sought to better enable OIG
special agents to assist the agency and others in the event of a natural disaster, act of
terrorism, active shooter incident or other emergency. Although agency officials initially
indicated that criminal investigators do not qualify as first responders, the agency now
appears to be working to give the OIG this badge designation.
The "red stripe" badge has been designated by the U.S. Department of Homeland
Security as the authoritative source to identify and verify federal employees who are
needed to respond during times of emergency. It provides fast identification that is
universally recognized by law enforcement and public safety officials throughout the
nation. Our special agents qualify for the special designation based upon the Department
of Homeland Security's 2011 National Incident Management System Guide for the
Credentialing of Personnel. Recent active shooter exercises at EPA headquarters
underscore the fact that OIG special agents, along with the agency's Criminal
Investigation Division special agents, are key armed law enforcement first responders to
any such incident.
30
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
U.S. Chemical Safety and Hazard Investigation Board
The U.S. Chemical Safety and Hazard Investigation
Board (CSB) was created by the Clean Air Act
Amendments of 1990. The CSB's mission is to
investigate accidental chemical releases at facilities,
report to the public on the root causes, and
recommend measures to prevent future occurrences.
In FY 2004, Congress designated the EPA Inspector General to serve as the Inspector
General for the CSB. As a result, the EPA OIG has the responsibility to audit, evaluate,
inspect and investigate the CSB's programs, and to review proposed laws and regulations
to determine their potential impact on the CSB's programs and operations. Details on our
work involving the CSB are available on the OIG's webpage on CSB.
FY 2016 CSB Management Challenges
Report No. 16-N-0221, issued June 29, 2016
As required by the Reports Consolidation Act of 2000, the OIG reported the following
issues that it considered to be the CSB's major management challenges for FY 2016.
• CSB Should Continue to Address Employee Morale: CSB management must
continue to address employee morale. During hearings in 2014, a House of
Representatives committee found "a toxic work environment" at CSB, and noted the
former Chairperson's "disregard for proper board governance/' The newly
confirmed CSB Chairperson already has begun implementing initiatives to improve
employee morale by creating an environment that encourages open communication.
• CSB Should Increase Its Investigations and Improve Investigative
Management Controls: CSB is not investigating all accidents that fall within its
legal jurisdiction, and should increase the number of investigations it conducts.
CSB has a "gap" between the number of accidents it investigates and the number
of accidents that fall under its statutory responsibility to investigate, as shown in
the table. Also, CSB needs to improve controls over investigations it does conduct.
Percent of accidents with fatalities not investigated, by fiscal year
FY
Investigated
Not investigated
Total
Percent not investigated
2015
1
26
27
96%
2014
2
47
49
96%
2013
2
47
49
96%
2012
1
64
65
98%
2011
5
46
51
90%
Sources: CSB budget justifications and other supporting data.
31
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
• CSB Should Establish a Chemical Reporting Regulation: CSB has not
published a chemical incident reporting regulation as required in the Clean Air
Act Amendments of 1990.
Audit Reports
CSB Needs to Continue to Improve Agency Governance and Operations
Report No, 16-P-0179. issued May 23, 2016
CSB is not following federal or agency internal I
° J A podcast on the
control guidance or required federal regulations csb governance
related to board governance over operational and report is available,
management activities. CSB did not prepare
quorum session summaries on time, post four of nine public meeting
transcripts in a timely fashion, create internal guidance over its annual
operating budget process, or have documentation supporting its
decisions to award contracts for legal services after making micro-
purchases and to lease public building space. CSB's former
Chairperson did not enforce federal guidance, which resulted in this
need for improved internal controls. The lack of internal controls
made CSB's $11 million budget vulnerable to mismanagement.
CSB's new Chairperson agreed to act on all our recommendations.
CSB Has Improved Its Controls Over Purchase Cards
Report No. 16-P-0260, issued August 11, 2016
CSB has improved internal controls governing its purchase card program, for which it
spent $302,556 in FY 2015. CSB needs to continue to follow the regulations. Our audit
sample of 11 transactions noted that two transactions totaling $5,500 were not approved
prior to the purchase. For a third transaction, we noted an issue regarding tax charges.
We made various recommendations to help CSB improve its purchase card program, and
CSB agreed to take the needed actions.
Cybersecurity Act of 2015 Report: CSB's Policies and Procedures to Protect
Systems With Personally Identifiable Information
Report No, 16-P-0254. issued August 1, 2016
CSB has one system that contains sensitive personally identifiable information covered
by provisions of the Cybersecurity Act of 2015; none of its systems contain national
security information. Safeguarding information and preventing system breaches are
essential for ensuring that CSB retains the trust of the American public . As required by
the act, we reported our findings on the system to CSB, and CSB agreed with our results.
A building in Washington, D.C. with
CSB-leased office space (EPA OIG
32
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Hotline Activities
The purpose of the EPA OIG Hotline is to
receive complaints of fraud, waste or abuse in
EPA programs and operations, including
mismanagement or violations of law, rules or
regulations by EPA employees or program
participants. Examples of reportable violations
include contract, procurement and grant fraud;
bribery and acceptance of gratuities; significant
mismanagement and waste of funds; conflict of
interest; travel fraud; abuse of authority; theft or
abuse of government property; and computer
crime. As a result of hotline complaints, the OIG
may conduct audits and evaluations, as well as
investigations. In addition to being responsible
for the EPA hotline, we are responsible for the
CSB hotline. Details on audit and evaluation
work during the semiannual reporting period,
as well as investigations, follow.
Audit and Evaluation Reports on EPA Initiated via OIG Hotline
Enhanced Controls Needed to Prevent Further Abuse of
Religious Compensatory Time
Report No. 16-P-0333, issued September 27, 2016
Based on a hotline complaint, we initiated an audit on the
sufficiency of the EPA's policies and procedures governing
Religious Compensatory Time. Federal law allows employees
to adjust their work schedules to earn time off for religious
purposes via compensatory time, which can be earned in advance or be repaid after the
religious observance. In the hotline complaint, allegations were made regarding a specific
employee. Records indicated that the employee earned compensatory time hours claimed,
but the accumulation of the time resulted in the employee receiving upon retirement a
payout of $32,469 for unused time. We also found that the agency's overall internal
controls over Religious Compensatory Time enabled 13 other employees to receive upon
separation a total of $41,045 for unused time. Further, if no action is taken to reduce high
balances for additional employees, future payments totaling up to $81,927 could be
made. We made various recommendations to the EPA regarding Religious Compensatory
Report
FRAUD
and
IS1
U.S. EPA OIG
HOTLINE
888.546.8740
Theft and misuse of government property
Contract, procurement and grant baud
Mismanagement and waste of funds
Employee misconduct
Abuse of authority
Conflict of interest STIES/
Computer crimes (
epa.gov/oig
The EPA OIG recently issued a new hotline
poster, which is available on our website
or by contacting the EPA OIG.
A podcast on the
Religious Compensatory
Time report is available.
33
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Time, including that the agency revise policies and procedures and require documentation
of intended use plans. The agency generally agreed to take the needed action.
Inadequate
controls
ABUSE
Hawaii Department of Health Needs to Reduce Open Grants and Unspent Funds
Report No. 16-P-0218. issued June 28, 2016
We found no evidence to support a hotline allegation that the Hawaii Department of
Health pools its Drinking Water State Revolving Funds with Hawaii Department of
Transportation funds. We also did we find indications of improper shifting of funds
between the Drinking Water State Revolving Fund and other state programs. However,
we did note a large amount of unspent funds. We found that the Hawaii Department of
Health needed to spend $12 million from its Drinking Water State Revolving Fund by
September 30, 2016, to meet its funding utilization target. We recommended that the
EPA reevaluate the status of fundable projects and the
Hawaii Department of Health's progress before awarding
Hawaii its FY 2016 allotment of $8.3 million. The EPA
advised that, for state fiscal year 2016, the Hawaii
Department of Health has submitted deliverables under the
assistance agreement documenting that the department met
the relevant financial targets. Accordingly, the EPA planned
to award the FY 2016 allotment to Hawaii, provided that
Hawaii submits a complete application in a timely manner.
We concur with the actions taken.
The Ewa Shaft Granular Activated Carbon
Treatment Facility, on Hawaii's island of Oahu,
received Drinking Water State Revolving Funds.
(Hawaii Department of Health photo)
Significant Investigations of EPA Initiated via OIG Hotline
Texas Laboratory Suspended From Federal Procurement After Debarment
The EPA has debarred an Arlington, Texas, laboratory and its top officials from federal
procurement for 1 year for entering or causing the entry of false information in laboratory
reports. On June 20, 2016, the EPA Suspension and Debarment official debarred Technical
34
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Testing International LLC, Chief Executive Officer Hardeep Pabley and owner Meera
Pabley. The investigation found that false laboratory data were provided by the company to
the EPA Emergency and Rapid Response Services contractors—the Brazos River
Authority and the city of Dallas—both EPA grantees. Multiple witness interviews and
laboratory data supported the allegations, which included quality control issues, potentially
falsified gas chromatography/mass spectrometer results, falsifying the signatures of
analysts who supposedly performed the analyses, and false numerical data for multiple
chemicals. City of Dallas attorneys indicated that of the $9.5 million EPA grant that the
Technical Testing International received, the company only earned $26,987.
EPA Managers Make False ID Badges
In two separate OIG investigations, two EPA employees were found to have created and
possessed laminated copies of their employee EPA Personnel Access and Security
System identification badges. During interviews, the employees admitted to
photocopying the EPA-issued badges and enlisting the assistance of a subordinate
employee to have them laminated. The employees each made a copy of the badge in case
they needed to re-enter the EPA building but had left their badge in their office computer.
On April 11, 2016, a GS-15 employee was issued a letter of reprimand for violating EPA
Order 3200 regarding the badge program. Starting on June 12, 2016, the other
employee—a Senior Executive Service manager—served a 14-day suspension, without
pay, for also violating the order. The lesser administrative action against the first
employee was due to the employee's claim of never having actually used the fake badge
to enter the EPA facility, while the second employee admitted to doing so.
Agency Action Spurred by Hotline Complaints
Action by EPA OIG Hotline Review Process Reduces Asbestos Risk at
North Carolina Site
As a result of action by the EPA OIG Hotline
review process, the agency took emergency
steps to reduce the threat of asbestos exposure to
residents near an abandoned hospital being
demolished.
In May 2016, the OIG discovered a potential
Asbestos National Emission Standards for
Hazardous Air Pollutants (NESHAP) violation
at the Old Davis Hospital in Statesville, North
Carolina. The OIG was conducting research into
a hotline complaint in which a Statesville
Exposed debris potentially including
significant asbestos-containing material at
the Old Davis Hospital in Statesville,
North Carolina. (EPA photo)
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
resident complained that the hospital was being vandalized and had exposed asbestos.
During the course of research into the hotline complaint, the OIG discovered and
confirmed the following through Region 4 and the state of North Carolina:
• Demolition of the hospital began in Jul}' 2015 based on a permit issued by Iredell
County. The permit indicated asbestos was not prevalent in the building and no
asbestos safeguards, such as removing asbestos-containing material before
demolition, were necessary.
• Testing by a private citizen and the state of North Carolina found that the debris pile
was in fact contaminated with enough asbestos to trigger the Asbestos NESHAP;
this finding prompted North Carolina to halt the demolition in October 2015.
• The Asbestos NESHAP requires that debris piles be kept adequately wet until
removed; however, videos of the demolition indicated no wetting of demolished
buildings occurred and no barrier was erected to contain rain water run-off.
• A residential neighborhood and a community college surround the demolition
site, and videos showed (as of March 2016) residents walking by or observing the
site; therefore, residents were exposed to the asbestos beginning in July 2015.
There is no safe level of asbestos exposure, and asbestos exposure can cause asbestosis,
lung cancer and mesothelioma. Due to the public health issue, and in conformity with the
EPA Administrator's 2016 Policy on Elevation of Critical Health Issues, the OIG on
May 27, 2016, issued a memorandum to the Region 4 Regional Administrator noting the
problems found at the Old Davis Hospital site. In response, the EPA evaluated the site
and confirmed the NESHAP violation, issued a notice to residents to inform their health
care providers that they may have been exposed to asbestos, obtained funding, kept the
debns pile wet, performed air monitoring, secured the site, and performed an emergency
removal of 400 tons of debris. Debris removal was completed on September 1, 2016.
Swift Action by EPA OIG Hotline Addresses Potential Cancer Threat at
Louisiana Facility
Due to the swift action of the EPA OIG in reporting a potential issue through its hotline,
the EPA ensured that it is taking action to address a potential cancer threat from the
Denka Performance Elastomer LLC - Pontchartrain Works facility in LaPlace, Louisiana.
The Denka facility uses chloroprene, a potential cancer
threat, to manufacture neoprene rubber. An OIG staff
member who works out of the EPA Region 6 office
learned from agency staff that there was a possible high-
risk emission problem at the Denka facility. The facility
may have been emitting carcinogenic pollutants at levels
outside of the EPA's acceptable risk range. We found that
as of July 7, 2016, the EPA may not have told the citizens
of their increased risk of cancer, even though the agency
The Denka Performance Elastomer LLC -
Pontchartrain Works facility in LaPlace, Louisiana.
(EPA photo)
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Semiannual Report to Congress April 1,2016—September 30, 2016
had known about the risk since the fall 2015. The OIG sent a hotline referral memo to
Region 6, and the region responded. Region 6 indicated that it is working steadily and
transparently to collect more data and address the potential risk from chloroprene to the
people living near the Denka facility. Region 6 and the state of Louisiana are in
discussions with Denka about installing air pollution controls to significantly reduce
chloroprene emissions.
Hotline Statistics
The following table shows OIG hotline activity regarding complaints of fraud, waste and
abuse in EPA and CSB programs and operations during the semiannual and annual
reporting periods ending September 30, 2016.
Semiannual Period Annual Period
(April 1,2016 - (October 1,2015 -
September 30, 2016) September 30, 2016)
Issues open at the beginning of the period
Inquiries received during the period
Inquiries closed during the period
Inquiries pending at the end of the period
201 183
195 336
208 331
188 188
Issues referred to others
OIG offices
EPA program offices
Other federal and state/local agencies
Contacts to the EPA OIG hotline
(telephone, voice mail, email, website,
podcasts and correspondence)
146 247
40 68
9 21
4,083 8,690
The table below details what type of inquiries, by category, the hotline receives that are
retained by the EPA OIG and are reviewed by investigation, audit or evaluation. For
FY 2016, the hotline sent 247 of the 336 inquiries received to the OIG for review and action.
247 REFERRALS TO EPA OIG IN FY 2016
Programmatic and Operations
Contracts
Grants
Employee Ethics
Employee Misconduct
Employee-Time & Attendance
Threats/Workplace
Laboratory Fraud
88
11
11
43
67
0 10 20 30 40 50 60 70 80 90 100
l REFERRALS TO THE EPA OIG FROM HOTLINE DURING FY 2016
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
The hotline at the EPA OIG continues to receive an increased number of contacts every
fiscal year. The table below depicts the total number of contacts for the last 6 fiscal years,
reflecting interest in the mission of the EPA OIG.
TOTAL CASES/REFERRALS RECEIVED BY YEAR
FOR THE EPA OIG HOTLINE
2011 2012 2013 2014 2015 2016
The hotline makes it easy to report allegations of fraud, waste, abuse, mismanagement or
misconduct in EPA programs and operations. Employees—as well as contractors,
grantees, program participants and members of the general public—may report
allegations to the OIG. Complaints may be submitted to the hotline by phone, fax or mail,
or electronically using email or the OIG s online complaint form.
The Inspector General Act of 1978, as amended, and other laws protect those who make
hotline complaints. For example, the Whistleblower Protection Enhancement Act of 2012
provided protection to employees who disclose misconduct or misuse of government
resources.
Individuals who contact the hotline are not required to identify themselves and may
request confidentiality when submitting allegations. However, the OIG encourages those
who report allegations to identify themselves so that they can be contacted if the OIG has
additional questions. Pursuant to Section 7 of the Inspector General Act, the OIG will not
disclose the identity of an employee of the EPA who provides information unless that
employee consents or the Inspector General determines that such disclosure is
unavoidable during the course of the investigation, audit or evaluation. As a matter of
policy, the OIG will provide comparable protection to employees of contractors, grantees
and others who provide information to the OIG and request confidentiality.
Individuals who are concerned about the confidentiality or anonymity of electronic
communication may submit allegations by telephone or mail.
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Other Activities
Quality Control Review of EPA OIG Reports Issued in Fiscal Year 2015
Report No. 16-N-0223. issued July 18, 2016
EPA OIG quality assurance staff review and report annually on systemic issues. The
FY 2015 review found that the OIG demonstrated high levels of compliance with OIG
quality assurance procedures, and received average compliance scores of 90 percent or
more. Most of the issues identified during the FY 2014 review have improved. The
FY 2015 review noted a few additional areas that involve the presentation of working
paper documentation, the quality of indexing, inclusion of the year in annual personal
impairment forms, and issuance of multiple reports under one assignment number. The
Deputy Inspector General agreed to take the recommended corrective actions.
Examination of Pilot Peer Review Process for Inspectors General That Follow
"Blue Book" Quality Standards for Inspection and Evaluation
Report No. 16-N-0317, issued September 21, 2016
Blue Book" Standards
1. Competency
2. Independence
3. Professional Judgment
4. Quality Control
5. Planning
6. Data Collection and Analysis
7. Evidence
8. Records Maintenance
9. Timeliness
10. Fraud, Other Illegal Acts, and Abuse
11. Reporting
12. Followup
13. Performance Measurement
14. Working Relationships and
Communication
We reviewed the Council of the Inspectors General on Integrity
and Efficiency's Inspection and Evaluation pilot External Peer
Review process to determine whether the process provided a basis
to ensure that standards were achieved, and to identify lessons
learned and best practices. We found that the process provides a
basis for determining participants" adherence to seven of the
14 Blue Book standards, and we suggested that all 14 standards
be followed to provide a reasonable basis that Inspectors General
who adopt the Blue Book quality standards are being adequately
evaluated. We also suggested improvements in policy, guidance
and an evaluation planning tool, and a council roundtable agreed
with our suggestions. We also noted best practices for conducting
peer reviews regarding the use of staff from multiple inspection
and evaluation units, and the providing of offsite access to
documents needed to conduct reviews.
Legislation and Regulations Reviewed
Section 4(a) of the Inspector General Act requires the Inspector General to review
existing and proposed legislation and regulations relating to the programs and operations
of the EPA and CSB, and to make recommendations concerning their impact. We also
review drafts of Office of Management and Budget circulars, memorandums, executive
39
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
orders, program operations manuals, directives and reorganizations. The primary basis
for our comments is the audit, evaluation, investigation and legislative experiences of the
OIG, as well as our participation on the Council of the Inspectors General on Integrity
and Efficiency. During the reporting period, we reviewed 41 proposed changes to
legislation, regulations, policy, procedures or other documents that could affect the EPA,
the CSB, or the Inspector General, and provided comments on two.
EPA OIG Receives Certification Confirming Employee Rights Protected
During this semiannual reporting period, the EPA OIG completed all of the requirements
necessary to obtain certification under the Office of Special Counsel's "2302(c) Certification
Program" and submitted the compliance package to the Office of Special Counsel for
certification. Per the White House's 2013 Second Open Government National Action
Plan, the Office of Special Counsel certification confirms that an organization keeps its
workforce informed about the rights and remedies available to employees under the
prohibited personnel practice and whistleblower retaliation provisions of 5 U.S.C § 2302.
The Office of Special Counsel has notified the EPA OIG that it is certified under the 2302(c)
program.
40
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Other Results of OIG Work
Follow-Up Is Important Aspect of OIG Efforts
For audit and evaluation efforts to be effective, it is important for an OIG to follow up on
certain previously issued reports to ensure that appropriate and effective corrective
actions have been taken. For the following audit and evaluation reports issued during the
semiannual reporting period ending September 30, 2016, our review included follow-up
on prior audits and evaluations.
Report No.
Report Title
Date
16-P-0135
EPA Should Timely Deobligate Unneeded Contract,
Purchase and Miscellaneous Funds
April 11, 2016
16-P-0167
EPA Complied With Improper Payment Legislation, but
Stronger Internal Controls Are Needed
May 10, 2016
16-P-0211
Follow-Up Report: EPA Has Completed Actions to
Improve Implementation of the Rulemaking Process
June 23, 2015
16-P-0212
EPA Improved Controls Over Billing Reimbursable
Interagency Agreement Expenditures to Other
Agencies
June 27, 2016
16-P-0217
EPA's Financial Oversight of Superfund State Contracts
Needs Improvement
June 27, 2016
16-P-0218
Hawaii Department of Health Needs to Reduce Open
Grants and Unspent Funds
June 28, 2016
16-P-0222
EPA Regional Offices Need to More Consistently
Conduct Required Annual Reviews of Clean Water
State Revolving Funds
July 7, 2016
16-P-0282
EPA Oversight of Travel Cards Needs to Improve
August 24, 2016
16-P-0296
Progress Made, but Improvements Needed at CTS of
Asheville Superfund Site in North Carolina to Advance
Cleanup Pace and Reduce Potential Exposure
August 31, 2016
16-P-0308
Follow-Up Review: EPA Updated Information for
Indoor Mold Research Tools
September 8, 2016
16-F-0322
Fiscal Years 2014 and 2013 Financial Statements for
the Pesticides Reregistration and Expedited Processing
Fund
September 22, 2016
16-F-0323
Fiscal Years 2014 and 2013 Financial Statements for
the Pesticide Registration Fund
September 22, 2016
Also, in compliance with reporting requirements of Section 5(a)(3) of the Inspector
General Act of 1978, as amended, we are to identify each significant recommendation
described in previous semiannual reports on which corrective action has not been
completed. This information is provided in detail in Appendix 3, "Reports With
41
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Corrective Actions Not Completed." Two examples of why recommendations remained
unimplemented are:
• In a report addressing the EPA's efforts to clean up amphibole asbestos
contamination in Libby, Montana, we recommended that the EPA fund and
execute a comprehensive amphibole asbestos toxicity assessment to determine
(1) the effectiveness of the Libby removal actions, and (2) whether more actions
are necessary. The toxicity assessment should include the effects of asbestos on
children. The EPA Science Advisory Board should review the toxicity
assessment and report to the Office of the Administrator and the Libby
Community Advisory Group whether the proposed toxicity assessment can
sufficiently protect human health. The goals of the seven National Health and
Environmental Effects Research Laboratory projects have been met and, to date,
this research has resulted in more than 20 peer reviewed publications, with a few
remaining publications in the finalization process. The corrective action
milestone date to complete the animal toxicity studies was revised to October 31,
2016, to allow more time for management review of the final report summarizing
the studies and their results. (Report No. 2007-P-00002)
• In a report evaluating the EPA's use of special accounts that had high available
balances or were at least 10 years old, we recommended that the EPA reclassify
or transfer to the Trust Fund, as appropriate, $27.8 million (plus any earned
interest less oversight costs) of the Stringfellow special accounts in annual
reviews, and at other milestones including the end of FY 2010, when the record
of decision is signed and the final settlement is achieved. The review was
following up on the EPA's progress in implementing a 2006 recommendation to
timely review Superfund special accounts to ensure that funds are used consistent
with EPA guidance. Region 9 issued a status update memo to the OIG to extend
the target action date for this recommendation to September 30, 2023, due to
additional work that the state has committed to complete in support of the final
sitewide Record of Decision. (Report No. 08-P-0196)
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Single Audit Reporting Efforts Make Impact
In accordance with the Single Audit Act of 1984 and Office of Management and Budget
guidance, nonfederal entities that expend more than $750,000 in federal funds (usually in the
form of grants) are required to have a comprehensive annual audit of their financial
statements and compliance with major federal program requirements. The entities receiving
the funds include states, local governments, tribes and not-for-profit organizations. The act
provides that grantees are subject to one annual comprehensive audit of all their federal
programs versus a separate audit of each federal program, hence the term "single audit."
The audits are usually performed by private firms. Federal agencies rely upon the results of
single audit reporting when performing their grants management oversight of these entities.
The OIG provides an important customer service to the EPA by performing technical
reviews of single audit reports, and issues reports to the EPA for audit resolution and
corrective action. These reports recommend that EPA action officials confirm that
corrective actions have been taken. If the corrective actions have not been implemented,
the EPA needs to obtain a corrective action plan, with milestone dates, for addressing the
findings in a single report. For example:
• The single audit report for the state of Vermont for FY 2014 identified two
findings related to the Drinking Water State Revolving Fund program that is
managed by the Vermont Department of Environmental Conservation. The
department did not have adequate procedures to ensure that federal financial status
reports were accurate. The department also did not obtain and review subrecipient
single audit reports as part of its monitoring responsibilities. The department
developed new procedures to correct these deficiencies. EPA Region 1 reviewed
these procedures and accepted the department's corrective actions.
• The single audit report for the Redwood Valley Little River Band of Pomo Indians,
California, for FY 2013 identified findings related to various EPA-funded
programs. The tribe allocated payroll expenses to its EPA program arbitrarily,
based on budgeted amounts, instead of actual costs incurred, as required. To
address this issue, EPA Region 9 provided supplemental funds to the tribe to
update its accounting system, to add payroll and allocation modules to improve
cost tracking. Training was also provided to tribe fiscal staff on the enhancements.
Summary of OIG single audit activity for semiannual period ending September 30, 2016
No. of
reports
issued
No. of reports
with no
further action
No. of findings
reported to
EPA
Reported
questioned
costs
Quality review
of single audit
reports
Deficiency
letters issued to
single auditors
258
1,612
609
$320,194
9
8
Source: OIG analysis.
43
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
The OIG also provides technical assistance and advice to the EPA, single auditors and
others as they relate to the single audit process. For example, the OIG's National Single
Audit Coordinator participated in a Council of the Inspectors General on Integrity and
Efficiency workgroup to update the organization's quality control guide used by federal
agencies to perform technical reviews of single audit reports for compliance with generally
accepted government auditing standards and the Uniform Guidelines issued by the Office
of Management and Budget. Also, the OIG's National Single Audit Coordinator was
invited to speak at an Association of Government Accountants' conference, providing
training and updates on the Uniform Guidelines and their impact on federal grants and the
single audit.
The OIG's single audit team completed nine initial quality reviews of cognizant single
audit reports, and issued eight letters of deficiencies for FY 2015 single audit reports as a
result of these reviews.
44
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Actions Taken on Reports Result in Improvements
The EPA has taken a number of corrective actions based on audit and evaluation reports
issued during the current and prior semiannual reporting periods. Examples follow.
• Our prior and ongoing interest and concerns over recovering expenses under
reimbursable interagency agreements resulted in the EPA making a concerted
effort to reduce the overall unbilled reimbursable costs, and it achieved
$18 million in reductions. In particular, the agency conducted a Lean Review in
2014 to complete a comprehensive study of the reimbursable agreement process,
which now requires a reservation of funds in the budget process that identified
reimbursable authority, and developed a report in its Compass Financials
accounting system on the funding status of all current reimbursable agreements.
Also, the agency issued a resource management directive that sets forth the
EPA's financial requirements for the award and management of reimbursable
interagency agreements, which ensures that the EPA properly collects,
documents and manages reimbursable funds, and recovers the full cost of
performing work on behalf of a federal partner. (Report No. 16-P-0212)
• Based on our recommendation in a prior report, EPA Region 9 withheld
$8,098,680 of the $8,787,000 in FY 2015 grant funds to the Hawaii Department
of Health, and issued an enforcement letter to require that the department to meet
interim corrective action plan targets to award the remaining $8,098,680 allotted
for the fiscal year. Hawaii met the interim targets by January 6, 2016,
approximately 3 weeks ahead of schedule. The EPA consequently awarded the
remaining funds allotted for the fiscal year on March 3, 2016.
(Report No. 16-P-0218)
• Based on our recommendation in a 2008 report, in July 2016, the agency
reclassified $5.43 million of the special account for the Stringfellow Superfund
site, located in Glen Avon, California, for use on other Superfund sites. Our
recommendation was to reclassify or transfer to the trust fund, as appropriate,
$27.8 million (plus any earned interest less oversight costs) of the Stringfellow
special accounts in annual reviews, and at other milestones, including the end of
FY 2010, when the record of decision is signed and the final settlement is
achieved. The EPA's estimated completion date for further action under this
recommendation is September 30, 2023. (Report No. 08-P-0196)
45
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Projects Generated by Earlier OIG Work
Much of the important work that we do not only results in recommendations, but spurs us
to do additional work in similar areas, resulting in further findings. For example:
• The OIG Office of Investigations initially conducted an investigation that
resulted in the arrest of an EPA employee in June 2016 for possession of child
pornography, related to that employee's use of EPA computer equipment. Based
on that investigation, it was determined that the EPA had no tracking records of
the employee's computer equipment, and was unaware that computer equipment
was even missing. Consequently, the OIG Office of Audit initiated a nationwide
audit of the EPA's computer equipment tracking practices.
• Current work on compliance with water quality monitoring requirements emerged
from a previous OIG evaluation on how the EPA addresses compliance problems
at small community water systems. The most frequently reported Safe Drinking
Water Act violations continue to be failure to monitor or report water quality
results. The prior review identified some potential best practices that states could
use to reduce monitoring and reporting problems, and we are reviewing how states
ensure that monitoring and reporting occurs at community water systems.
• A report during the current semiannual reporting period—indicating that the EPA
should timely deobligate more than $3.5 million in unneeded contract, purchase and
miscellaneous funds—was conducted after several other audits noted unliquidated
obligation issues. We will continue to look at unliquidated obligations.
• In EPA Region 4, we initiated an investigation into numerous missing EPA
laptop computers. The investigation resulted in a related investigation that led to
the finding that agency property was being stolen and pawned by an EPA
employee.
• Our evaluation into management of resistance issues related to herbicide-tolerant
genetically engineered crops has ties to a previously issued report on how the
EPA needs better data, plans and tools to manage insect resistance to genetically
engineered corn. The current evaluation is part of a series of evaluations on the
effectiveness of the EPA's activities related to genetically engineered crops.
• A report on how the Manchester Band of Pomo Indians of California needs to
improve its financial management of EPA grants, as well as demonstrate
completion of grant work, is one of a series of audits we have done about how
tribes across the nation manage EPA grant funds, and was initiated after several
audits of tribes had found problems. We will continue to perform such audits.
46
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Agency Best Practices Noted
During the semiannual reporting period, several reports that we issued highlighted agency
"best practices" of value to other components in the agency. Examples follow.
• In a report on billing interagency agreement expenditures to other agencies, the
EPA implemented actions to expedite billing older reimbursable costs and reduce
federal unbilled receivables. Actions included obtaining additional funds needed
from the U.S. Coast Guard, and reviewing quarterly unliquidated obligation
reports from the Federal Emergency Management Agency and notifying that
agency of pending billable costs to prevent deobligation of mission assignment
funds. Also, the EPA began requiring a seven-digit organization code in the
accounting string to ensure that all reimbursable expenses are tied to a
reimbursable interagency agreement and are, therefore, billable. The EPA also
created a default in its accounting system to reject any reimbursable expenses not
tied to a reimbursable agreement, and performed an in-depth analysis of the
federal unbilled receivable backlog to recover expenses previously unbilled.
(Report No. 16-P-0212)
• Based on concerns regarding a lack of internal controls in the Pacific Territory of
Guam, in February 2011, Region 9 awarded a contract for development of
standard operating procedures and other tasks. Thus far, the contractor has
developed over 50 standard operating procedures in areas that include
construction services, engineering, engineering services procurement and project
management. However, the contractor had not developed accounting procedures
to provide assurance that costs are reasonable, allocable and allowable. After the
OIG identified accounting procedures as a concern at the Guam Water Authority,
EPA Region 9 contracted to have procedures developed. (Report No. 16-P-0166)
47
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Statistical Data
Profile of Activities and Results
Audit and evaluation operations
Reviews performed by OIG
($ in millions)
April 1,2016, to
September 30, 2016
FY
2016
Questioned costs *
$14.00
$14.00
Recommended efficiencies *
$177.93
$178.12
Cost savings
$0.00
$0.00
Costs disallowed to be recovered
$0.00
$0.36
Costs disallowed as cost efficiency
$25.79
$25.79
Reports issued by OIG
39
67
Reports resolved
(Agreement by agency officials
to take satisfactory corrective
actions) **
108
178
Audit and evaluation operations
Reviews performed by Single Audit Act auditors
($ in millions)
April 1,2016, to
September 30, 2016
FY
2016
Questioned costs *
$0.30
$0.32
Recommended efficiencies *
$0.00
$0.0
Cost savings
$0.00
$0.00
Costs disallowed to be recovered
$0.02
$0.06
Costs disallowed as cost efficiency
$0.00
$0.00
Single Audit Act reviews
162
258
Agency recoveries
Recoveries from audit and
evaluation resolutions of current
and prior periods (cash collections
or offsets to future payments) ***
$0.5
$1.2
Investigative operations
($ in millions)
April 1,2016, to
September 30, 2016
FY 2016
EPA OIG
only
Joint
Total
EPA OIG
only
Joint
Total
Total fines and recoveries
$0,076
$0,167
$0,243
$0,142
$0,350
$0.0492
Cost savings
$0,003
$0,000
$0,003
$0,967
$0,000
$0,967
Cost avoidances
$0,000
$0,000
$0,000
$0,000
$0,000
$0,000
Civil settlements
$0,000
$14,900.7 $14,900.7
$0,190
$14,903.7
$14,903.9
Cases open during period
45
2
47
94
6
100
Cases closed during period
62
11
73
110
19
129
Indictments/informations of persons
or companies
1
1
2
6
4
10
Convictions of persons or companies
0
4
4
3
7
10
Civil judgments/settlements/filings
0
3
3
1
4
5
* Questioned costs and recommended efficiencies are subject to change pending further review in the audit resolution process.
** Reports resolved are subject to change pending further review.
*** Information on recoveries from audit resolutions is provided by the EPA's Office of Financial Management and is unaudited.
48
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Audit, Inspection and Evaluation Report Resolution
Table 1: OIG-issued reports with questioned costs for semiannual period ending September 30, 2016
($ in thousands)
Report category
No. of
reports
Questioned
costs *
Unsupported
costs
A. For which no management decision was made by
April 1, 2016**
10
$2,491
$181
B. New reports issued during period
10
14,320
12,565
Subtotals (A + B)
20
16,811
12,746
C. For which a management decision was made during the
reporting period:
3
113
113
(i) Dollar value of disallowed costs
0
0
0
(ii) Dollar value of costs not disallowed
3
0
0
D. For which no management decision was made by
September 30, 2016
16
21,957
21,595
* Questioned costs include unsupported costs.
** Any difference in number of reports and amounts of questioned costs between this report and our previous
semiannual report results from corrections made to data in our audit, inspection and evaluation tracking system.
Table 2: Inspector General-issued reports with recommendations that funds be put to better use for
semiannual period ending September 30, 2016 ($ in thousands)
Report Category
No. of
reports
Dollar
Value
A. For which no management decision was made by April 1, 2016 *
1
$1,729
B. Which were issued during the reporting period
12
178,120
Subtotals (A + B)
13
179,849
C. For which a management decision was made during the reporting period:
4
25,790
(i) Dollar value of recommendations from reports that were
agreed to by management
3
20,271
(ii) Dollar value of recommendations from reports that were
not agreed to by management
1
5,519
D. For which no management decision was made by September 30, 2016
9
154,059
* Any difference in number of reports and amounts of funds put to better use between this report and our previous
semiannual report results from corrections made to data in our audit, inspection and evaluation tracking system.
Audits, inspections and evaluations with no final action as of September 30, 2016, over 365 days past the
date of the accepted management decision (including audits, inspections and evaluations in appeal)
Audits, inspections and evaluations
Total
Percentage
Program
39
57
Assistance agreements
9
13
Single audits
16
24
Financial statement audits
4
6
Total
68
100
49
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Summary of Investigative Results
Summary of investigative activity during reporting period
Cases open as of April 1, 2016 *
234
Cases opened during period
47
Cases closed during period
73
Cases pending as of September 30, 2016
208
* Adjusted from prior period.
Investigations pending by type as of September 30, 2016
Superfund
Management
Split funded
Recovery Act
CSB
Total
Contract fraud
8
11
9
2
0
30
Grant fraud
0
22
12
7
0
41
Laboratory fraud
3
3
2
0
0
8
Employee integrity
2
28
47
0
0
77
Program integrity
1
9
4
0
0
14
Computer crimes
0
1
3
0
0
4
Threat
1
3
9
0
0
13
Retaliation
0
1
2
0
0
3
Other
1
11
6
0
0
16
Total
16
89
94
9
0
208
Results of prosecutive actions
EPA OIG only
Joint *
Total
Criminal indictments/informations/complaints
1
1
2
Convictions
0
4
4
Civil judgments/settlements/filings
0
3
3
Deportations
0
0
0
Fines and recoveries (including civil)
$76,374
$14,900,938,716
$14,901,015,090
Prison time
0 months
711 months
711 months
Prison time suspended
0 months
0 months
0 months
Home detention
0 months
12 months
12 months
Probation
22 months
204 months
226 months
Community service
100 hours
0 hours
100 hours
*With another federal agency.
Administrative actions
EPA OIG only
Joint *
Total
Suspensions
2
0
2
Debarments
3
9
12
Other administrative actions
26
3
29
Total
31
12
43
Administrative recoveries
$0
$0
$0
Cost avoidance
$3,285
$0
$3,285
*With another federal agency.
50
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Appendices
Appendix 1—Reports Issued
The Inspector General Act of 1978, as amended, requires a listing, subdivided according to subject matter, of each report issued by
the OIG during the reporting period. For each report, where applicable, the Inspector General Act also requires a listing of the dollar
value of questioned costs and the dollar value of recommendations that funds be put to better use.
Questioned Costs
Federal
Report No.
Report
Date
Ineligible
Costs
Unsupported Unreasonable Recommended
Costs Costs Efficiencies
PERFORMANCE REPORTS
16-P-0135 EPA Should Timely DeobligateUnneeded Contract, Purchase and Apr. 11, 2016
Miscellaneous Funds
16-P-0162 EPA Needs to Assess Environmental and Economic Benefits of May 2, 2016
Completed Clean Water State Revolving Fund Green Projects
16-P-0164 Clean Air Act Facility Evaluations Are Conducted, but Inaccurate Data May 3, 2016
Hinder EPA Oversight and Public Awareness
16-P-0166 EPA Region 9 Needs to Improve Oversight Over Guam's Consolidated May 9, 2016
Cooperative Agreements
16-P-0167 EPA Complied With Improper Payment Legislation, but Stronger May 10, 2016
Internal Controls Are Needed
16-P-0179 CSB Needs to Continue to Improve Agency Governance and May 19, 2016
Operations
16-P-0181 EPA Region 9 Needs to Improve Oversight Over American Samoa May 23, 2016
Consolidated Cooperative Agreements
16-P-0194 EPA Needs Better Data, Plans and Tools to Manage Insect Jun. 1, 2016
Resistance to Genetically Engineered Corn
16-P-0196 EPA Improved Its National Security Information Program, but Some Jun. 2, 2016
Improvements Still Needed
16-P-0207 EPA Region 9 Needs to Improve Oversight Over Commonwealth of Jun. 20, 2016
the Northern Mariana Islands Consolidated Cooperative Agreements
16-P-0211 Follow-Up Report: EPA Has Completed Actions to Improve Jun. 23, 2016
Implementation of the Rulemaking Process
16-P-0212 EPA Improved Controls Over Billing Reimbursable Interagency Jun. 27, 2016
Agreement Expenditures to Other Agencies
16-P-0217 EPA's Financial Oversight of Superfund State Contracts Needs Jun. 27, 2016
Improvement
16-P-0218 Hawaii Department of Health Needs to Reduce Open Grants and Jun. 28, 2016
Unspent Funds
16-P-0219 EPA Has Developed Guidance for Disaster Debris but Has Limited Jun. 29, 2016
Knowledge of State Preparedness
16-P-0222 EPA Regional Offices Need to More Consistently Conduct Required Jul. 7, 2016
Annual Reviews of Clean Water State Revolving Funds
16-P-0246 EPA Cannot Assess Results and Benefits of Its Environmental Jul. 29, 2016
Education Program
16-P-0254 CybersecurityActof2015Report:CSB'sPoliciesandProceduresto Aug. 1,2016
Protect Systems With Personally Identifiable Information
16-P-0259 Cybersecurity Act of 2015 Report: EPA's Policies and Procedures to Aug. 10, 2016
Protect Systems With Personally Identifiable Information
16-P-0260 CSB Has Improved Its Controls Over Purchase Cards Aug. 11, 2016
16-P-0268 EPA Needs to Improve Oversight of Its Transit Subsidy Benefits Aug. 16, 2016
Program
16-P-0275 EPA Has Not Met Certain Statutory Requirements to Identify Aug. 18,2016
Environmental Impacts of Renewable Fuel Standard
16-P-0276 EPA Region 9 Needs to Improve Oversight of San Francisco Bay Aug. 22, 2016
Water Quality Improvement Fund Grants
16-P-0279 EPA Achieved Scientific Benefits When Using Reimbursable Research Aug. 22, 2016
Agreements, but Better Estimating of In-Kind Costs Is Needed
16-P-0282 EPA Oversight of Travel Cards Needs to Improve Aug. 24, 2016
16-P-0296 Progress Made, but Improvements Needed at CTS of Asheville Aug. 31, 2016
Superfund Site in North Carolina to Advance Cleanup Pace and
Reduce Potential Exposure
$3,545,933
0
0
2,332,577
0
0
0
0
0
0
0
18,000,000
2,271,000
8,312,000
0
0
0
0
0
0
137,080
0
3,451,000
0
556,500
0
51
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Questioned Costs Federal
Report No.
Report
Date
Ineligible
Costs
Unsupported
Costs
Unreasonable
Costs
Recommended
Efficiencies
16-P-0308
Follow-Up Review: EPA Updated Information for Indoor Mold
Sep. 8, 2016
0
0
0
0
Research Tools
16-P-0313
Oregon Health Authority's Prior Labor Charging Practices Under EPA
Sep. 12,2016
0
12,136,214
0
0
Grants Did Not Meet Requirements
16-P-0316
EPA Needs a Risk-Based Strategy to Assure Continued Effectiveness
Sep. 19,2016
0
0
0
0
of Hospital-Level Disinfectants
16-P-0320
Manchester Band of Pomo Indians Needs to Improve Its Financial
Sep. 21,2016
174,970
197,748
0
174,970
Management System and Demonstrate Completion of Grant Work
16-P-0333
Enhanced Controls Needed to Prevent Further Abuse of Religious
Sep. 27, 2016
0
0
0
0
Compensatory Time
TOTAL PERFORMANCE REPORTS=31
$174,970
$12,333,962
$0
$38,781,060
SINGLE AUDIT REPORTS
16-S-0133
District of Columbia Water and Sewer Authority - FY 2015
Apr. 6, 2016
$0
$0
$0
$0
16-S-0134
Ohio, State of-FY 2015
Apr. 6, 2016
0
0
0
0
16-S-0136
Utah, State of-FY 2015
Apr
13
2016
0
0
0
0
16-S-0137
Maine Municipal Bond Bank, Maine - FY 2015
Apr
13
2016
0
0
0
0
16-S-0138
Houston, Texas, City of - FY 2014
Apr
19
2016
0
0
0
0
16-S-0139
New Mexico Environment Department, New Mexico - FY 2015
Apr
19
2016
667
0
0
0
16-S-0140
Delaware, State of- FY 2015
Apr
19
2016
0
0
0
0
16-S-0141
Idaho, State ofF-Y2015
Apr
19
2016
0
0
0
0
16-S-0142
Kansas, State of-FY 2015
Apr
19
2016
0
0
0
0
16-S-0143
Willis, Texas-FY 2014
Apr
19
2016
0
0
0
0
16-S-0144
Ishpeming, Michigan, City of- FY 2014
Apr
25
2016
0
0
0
0
16-S-0145
Mecosta, Michigan, County of - FY 2014
Apr
25
2016
0
0
0
0
16-S-0146
Winnebago, Illinois, Village of - FY 2014
Apr
25
2016
0
0
0
0
16-S-0147
Commerce, Michigan, Charter Township of-FY 2014
Apr
25
2016
0
0
0
0
16-S-0148
Duluth, Minnesota, City of-FY 2014
Apr
27
2016
0
0
0
0
16-S-0149
Pennsylvania, Commonwealth of-FY 2015
Apr
27
2016
0
0
0
0
16-S-0150
Wisconsin, Stateof-FY2015
Apr
27
2016
0
0
0
0
16-S-0151
Nebraska, State of-FY 2015
Apr
27
2016
0
18,751
0
0
16-S-0152
Jackson County, Mississippi - FY 2014
Apr
27
2016
0
0
0
0
16-S-0153
Montana, State of - FYs 2014 & 2015
Apr
26
2016
0
0
0
0
16-S-0154
South Carolina, State of-FY 2015
Apr
27
2016
0
0
0
0
16-S-0155
Vermont, State of-FY 2015
Apr
27
2016
0
0
0
0
16-S-0156
Washington, State of-FY 2015
Apr
27
2016
0
0
0
0
16-S-0157
Wyoming, State of-FY 2015
Apr
27
2016
0
0
0
0
16-S-0158
New Hampshire, State of- FY 2015
Apr
27
2016
0
0
0
0
16-S-0159
Longtown Rural Water District #1, Oklahoma - FY 2014
Apr
28
2016
0
0
0
0
16-S-0160
Fort Bend Fresh Water Supply District No. 1, Texas - FY 2014
Apr
28
2016
0
0
0
0
16-S-0161
New York, State of-FY 2015
Apr
29
2016
0
0
0
0
16-S-0163
Puerto Rico Water Pollution Control Revolving Fund - FY 2015
Apr
29
2016
0
0
0
0
16-S-0165
Glenwood, Minnesota, City of-FY 2014
May 2, 2016
0
0
0
0
16-S-0168
North Koochiching Area Sanitary District, Minnesota - FY 2014
May 6, 2016
0
0
0
0
16-S-0169
Warren, Minnesota, City of-FY 2014
May 6, 2016
0
0
0
0
16-S-0170
Perham, Minnesota, City of-FY 2014
May 6, 2016
0
0
0
0
16-S-0171
Portsmouth, Ohio, City of-FY 2014
May 6, 2016
0
0
0
0
16-S-0172
Bad River Band of Lake Superior Tribe of Chippewa Indians,
May 6, 2016
0
0
0
0
Wisconsin-FY 2014
16-S-0173
Sangamon Valley Public Water District, Illinois - FY 2014
May 9, 2016
0
0
0
0
16-S-0174
Elroy, Wisconsin, City of-FY 2014
May 10
2016
0
0
0
0
16-S-0175
Oconto Falls, Wisconsin, City of-FY 2014
May 10
2016
0
0
0
0
16-S-0176
Two Rivers, Wisconsin, City of-FY 2014
May 10
2016
0
0
0
0
16-S-0177
Oconto County, Wisconsin - FY 2014
May 10
2016
0
0
0
0
16-S-0178
Fountain City, Wisconsin, City of-FY 2014
May 10
2016
0
0
0
0
16-S-0182
Denver Urban Renewal Authority, Colorado - FY 2014
May 19
2016
0
0
0
0
16-S-0183
Bay Area Stormwater Management Agencies Association, California -
May 19
2016
0
0
0
0
FY 2013
16-S-0184
Old Harbor Tribal Council, Alaska - FY 2014
May 19
2016
0
0
0
0
16-S-0185
Little Rock, Arkansas, City of-FY 2014
May 25
2016
0
0
0
0
16-S-0186
Upper Sioux Community Federal and State Program Department,
May 25
2016
0
0
0
0
Minnesota-FY 2013
16-S-0187
Cameron, Wisconsin, Village of-FY 2014
May 26
2016
0
0
0
0
16-S-0188
Turtle Lake, Wisconsin, Village of - FY 2014
May 26
2016
0
0
0
0
16-S-0189
Youngstown, Ohio, City of-FY 2013
May 26
2016
0
0
0
0
16-S-0190
Huron County, Michigan - FY 2014
May 26
2016
0
0
0
0
52
-------
Semiannual Report to Congress
April 1, 2016—September 30, 2016
Questioned Costs Federal
Ineligible
Unsupported
Unreasonable
Recommended
Report No.
Report
Date
Costs
Costs
Costs
Efficiencies
16-S-0191
St. Croix Chippewa Indians of Wisconsin, Wisconsin-FY 2014
May 26, 2016
0
0
0
0
16-S-0192
Stockbridge Munsee Community, Wisconsin - FY 2013
May 26, 2016
0
0
0
0
16-S-0193
Zachary, Louisiana, City of - FY 2014
May 27, 2016
0
0
0
0
16-S-0195
Fruitland, Idaho, City of- FY 2014
May 27, 2016
0
0
0
0
16-S-0197
Grand Portage Band of Chippewa Indians, Minnesota-FY 2014
Jun. 1,2016
0
0
0
0
16-S-0198
Metropolitan Council of the Twin Cities Area, Minnesota - FY 2014
Jun.2,2016
0
0
0
0
16-S-0199
Freedom Township Water & Sewer Authority, Pennsylvania-FY 2014
Jun. 3, 2016
0
0
0
0
16-S-0200
Environmental Law Institute, District of Columbia-FY 2014
Jun. 3, 2016
0
0
0
0
16-S-0201
Duncansville Municipal Authority, Pennsylvania - FY 2014
Jun. 6, 2016
0
0
0
0
16-S-0202
Lemoyne, Pennsylvania, Municipal Authority, Borough of - FY 2014
Jun. 6, 2016
0
0
0
0
16-S-0203
South Dallas Water Authority, Alabama - FY 2014
Jun. 8, 2016
0
0
0
0
16-S-0204
Avon Park, Florida, City of - FY 2014
Jun. 8, 2016
0
0
0
0
16-S-0205
Goshen, Indiana, City of- FY 2013
Jun. 9, 2016
0
0
0
0
16-S-0208
Mississippi, State of- FY 2015
Jun. 20, 2016
0
0
0
0
16-S-0209
Dona Ana Mutual Domestic Water Consumers Association,
Jun. 21, 2016
0
0
0
0
New Mexico-FY 2014
16-S-0210
North Carolina, State of - FY 2015
Jun. 21, 2016
0
0
0
0
16-S-0213
Hayden Lake Recreational Water and Sewer District, Idaho-FY 2013
Jun. 22, 2016
0
0
0
0
16-S-0214
Walla Walla, Washington, City of - FY 2014
Jun. 23, 2016
0
0
0
0
16-S-0215
Odem Water Association, Idaho, City of- FY 2014
Jun. 23, 2016
0
0
0
0
16-S-0216
Arcadia, Florida, City of-FY 2014
Jun. 24, 2016
0
0
0
0
16-S-0220
Alderwood Water and Wastewater District, Washington - FY 2014
Jun. 29, 2016
0
0
0
0
16-S-0224
Rhinelander, Wisconsin, City of - FY 2014
Jul
18,
2016
0
0
0
0
16-S-0225
Greenville, Mississippi, City of- FY 2014
Jul
18,
2016
0
0
0
0
16-S-0226
Racine, Wisconsin, City of - FY 2014
Jul
18,
2016
0
0
0
0
16-S-0227
St. Croix Falls, Wisconsin, City of- FY 2014
Jul
18,
2016
0
0
0
0
16-S-0228
Germantown Hills, Illinois, Village of- FY 2015
Jul
18,
2016
0
0
0
0
16-S-0229
Summit, Mississippi, Town of- FY 2014
Jul
18,
2016
0
0
0
0
16-S-0230
Batesville, Mississippi, City of- FY 2014
Jul
18,
2016
9,439
0
0
0
16-S-0231
Guntown, Mississippi, City of- FY 2014
Jul
18,
2016
0
0
0
0
16-S-0232
Elizabethtown, North Carolina, Town of-FY 2014
Jul
19,
2016
0
0
0
0
16-S-0233
Pamplico, South Carolina, Town of- FY 2014
Jul
19,
2016
0
0
0
0
16-S-0234
Michigan, State of-FY 2015
Jul
19,
2016
0
0
0
0
16-S-0235
Maryland Coastal Bays Foundation Inc., Maryland- FY 2015
Jul
20,
2016
22,407
17,559
0
0
16-S-0236
Huron Conservation District, Michigan - FY 2014
Jul
25,
2016
0
0
0
0
16-S-0237
Fredericksburg Sewer and Water Authority, Pennsylvania - FY 2014
Jul
25,
2016
0
0
0
0
16-S-0238
Richmond Hill, Georgia, City of FY 2014
Jul
25,
2016
0
0
0
0
16-S-0239
Bradford, Pennsylvania, County of-FY 2014
Jul
25,
2016
0
0
0
0
16-S-0240
Okolona, Mississippi, City of-FY 2014
Jul
25,
2016
0
0
0
0
16-S-0241
Windsor, North Carolina, Town of-FY 2014
Jul
25,
2016
0
0
0
0
16-S-0242
Corporation for the Conservation for the San Juan Estuary,
Puerto Rico-FY 2014
Jul
26,
2016
0
0
0
0
16-S-0243
Babylon, New York, Town of- FY 2014
Jul
26,
2016
0
0
0
0
16-S-0244
Fremont, Ohio, City of-FY 2013
Jul
26,
2016
0
0
0
0
16-S-0245
Montcalm County, Michigan - FY 2014
Jul
26,
2016
0
0
0
0
16-S-0247
Hammond, Louisiana, City of-FY 2015
Jul
28,
2016
0
0
0
0
16-S-0248
Fort Independence Indian Reservation, California - FY 2014
Jul
28,
2016
0
0
0
0
16-S-0249
Kansas City, Missouri, City of-FY 2014
Jul
28,
2016
0
0
0
0
16-S-0250
Cottonwood Falls, Kansas, City of-FY 2014
Jul
28,
2016
0
0
0
0
16-S-0252
North Franklin Water Works Inc., Louisiana-FY 2014
Jul
28,
2016
0
0
0
0
16-S-0253
Lyons, Kansas, City of-FY 2014
Jul
28,
2016
0
0
0
0
16-S-0255
California Water Pollution Control Revolving Fund- FY 2015
Jul
29,
2016
0
0
0
0
16-S-0256
California Safe Drinking Water Revolving Fund, California - FY 2015
Jul
29,
2016
0
0
0
0
16-S-0257
Sauk-Suiattle Indian Tribe, Washington - FY 2013
Aug. 8,
2016
0
0
0
0
16-S-0261
Fargo, North Dakota, City of-FY 2014
Aug
. 11
2016
0
0
0
0
16-S-0262
Ray, North Dakota, City of-FY 2014
Aug
. 11
2016
0
0
0
0
16-S-0263
Rolla, North Dakota, City of-FY 2014
Aug
. 11
2016
0
0
0
0
16-S-0264
Laurel, Montana, City of-FY 2015
Aug
. 11
2016
0
0
0
0
16-S-0265
White River Municipal Water District, Texas - FY 2015
Aug
. 11
2016
0
0
0
0
16-S-0266
Anthony, Texas, Town of-FY2014
Aug
. 11
2016
0
0
0
0
16-S-0267
Thlopthlocco Tribal Town, Oklahoma-FY 2014
Aug
. 11
2016
0
0
0
0
16-S-0269
Las Vegas, New Mexico, City of-FY 2015
Aug
.15
2016
0
0
0
0
16-S-0270
Deming, New Mexico, City of-FY 2015
Aug
.15
2016
0
0
0
0
16-S-0271
Picuris Pueblo, New Mexico - FY 2014
Aug
.15
2016
0
0
0
0
16-S-0272
Estherwood, Louisiana, Village of-FY 2015
Aug
.15
2016
0
0
0
0
16-S-0273
San lldefonso, New Mexico, Pueblo de - FY 2013
Aug
.16
2016
0
0
0
0
53
-------
Semiannual Report to Congress
April 1, 2016—September 30, 2016
Questioned Costs
Report No.
Report
Date
Ineligible
Costs
Unsupported Unreasonable
Costs Costs
Federal
Recommended
Efficiencies
16-S-0274 McNeil Arkansas Water & Sewer System, Arkansas, City of - FY 2013
16-S-0277 Zachary, Louisiana, City of - FY 2015
16-S-0278 Lutcher, Louisiana, Town of- FY 2015
16-S-0280 Delhi, Louisiana, Town of-FY2014
16-S-0281 Crystal River, Florida, City of - FY 2014
16-S-0283 North San Saba Water Supply Corporation, Texas - FY 2014
16-S-0284 Iowa Regional Utilities Association, Iowa-FY 2014
16-S-0285 Rural Water District No. 2 Comanche County, Oklahoma - FY 2014
16-S-0286 Rural Water District No. 1 Noble County, Oklahoma - FY 2013
16-S-0287 Anchorage, Alaska, Municipality of - FY 2014
16-S-0288 Redwood Valley Little River Band Pomo Indians, California - FY 2014
16-S-0289 Marine Biological Laboratory, Massachusetts - FY 2014
16-S-0290 Rye Water District, New Flampshire - FY 2014
16-S-0291 Alliance to Save Energy, District of Columbia-FY 2014
16-S-0292 Northway Village Council, Alaska - FY 2015
16-S-0293 Post Falls, Idaho, City of-FY 2015
16-S-0294 Decision Science Research Institute Inc. Oregon - FY 2014
16-S-0295 American Samoa Power Authority, American Samoa - FY 2015
16-S-0297 Washburn, North Dakota, City of-FY 2014
16-S-0298 McLean Sheridan Rural Water District, North Dakota - FY 2014
16-S-0299 Selby, South Dakota, City of - FY 2013-2014
16-S-0300 Spearfish, South Dakota, City of-FY 2014
16-S-0301 Puerto Rico Aqueduct and Sewer Authority, Puerto Rico - FY 2015
16-S-0302 Bond-Madison Water Company, Illinois — FY 2014
16-S-0303 Chicago, Illinois, City of-FY 2015
16-S-0304 DuPage County, Illinois - FY 2014
16-S-0305 Evanston, Illinois, City of-FY 2014
16-S-0306 Massachusetts Clean Water Trust, Massachusetts - FY 2015
16-S-0307 Rock Island, Illinois, City of-FY 2014
16-S-0309 Stephenson County, Illinois-FY2014
16-S-0310 Oak Lawn, Illinois, Village of- FY 2014
16-S-0311 Jeffersonville, Indiana, City of-FY 2013
16-S-0312 Linton, Indiana, City of-FY 2014
16-S-0314 Chesterton, Indiana, Town of-FY 2014
16-S-0315 Middletown, Indiana, Town of-FY2014
16-S-0318 Lake Placid Village Inc., New York - FY 2015
16-S-0319 Alexander City, Alabama, City of-FY 2013
16-S-0321 Colorado Rural Water Association Inc., Colorado-FY 2014
16-S-0324 Cut Bank, Montana, City of - FY 2015
16-S-0325 Pala Band of Mission Indians, California - FY 2014
16-S-0326 Gambell, Alaska, Native Village of-FY 2013
16-S-0327 lliamna Village Council, Alaska — FY 2015
16-S-0328 Lake Delton, Wisconsin, Village of-FY 2014
16-S-0329 Cape Girardeau, Missouri, City of-FY 2015
16-S-0330 Kodiak Island Borough, Alaska - FY 2015
16-S-0331 Odessa, Missouri, City of-FY 2015
16-S-0332 Sturgis, Michigan, City of- FY 2014
16-S-0334 Kearney, Nebraska, City of - FY 2015
TOTAL SINGLE AUDIT REPORTS=162
Aug. 16,2016
Aug. 18,2016
Aug. 18,2016
Aug. 18,2016
Aug. 22, 2016
Aug. 23, 2016
Aug. 23, 2016
Aug. 23, 2016
Aug. 23, 2016
Aug. 24, 2016
Aug. 24, 2016
Aug. 24, 2016
Aug. 24, 2016
Aug. 24, 2016
Aug. 25, 2016
Aug. 25, 2016
Aug. 25, 2016
Aug 29, 2016
Aug. 30, 2016
Aug. 30, 2016
Aug. 30, 2016
Aug. 30, 2016
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
,2016
,2016
,2016
,2016
,2016
,2016
,2016
.8,2016
.8,2016
.8,2016
.8,2016
.9,2016
Sep. 12,2016
Sep. 19,2016
Sep. 19,2016
Sep. 20, 2016
Sep. 22, 2016
Sep. 22, 2016
Sep. 22, 2016
Sep. 22, 2016
Sep. 23, 2016
Sep. 23, 2016
Sep. 23, 2016
Sep. 23, 2016
Sep. 23, 2016
Sep. 27, 2016
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
33,523
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$66,036
0
0
0
0
0
0
0
0
0
0
168,465
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27,179
0
0
0
0
0
0
0
$231,954
NON-AUDIT REPORTS
16-N-0180 Summary Report: Fiscal Year 2015 Reviews of EPA's Measurement of May 19, 2016
Environmental Program Performance and Outcomes
16-N-0206 FY 2016 EPA Management Challenges Jun. 16, 2016
16-N-0221 FY 2016: U.S. Chemical Safety and Hazard Investigation Board Jun. 29, 2016
Management Challenges
16-N-0223 Quality Control Review of EPA OIG Reports Issued in Fiscal Year Jul. 18,2016
2015
16-N-0317 Examination of Pilot Peer Review Process for Inspectors General That Sep. 21, 2016
Follow "Blue Book" Quality Standards for Inspection and Evaluation
TOTAL NON-AUDIT REPORTS=5
54
-------
Semiannual Report to Congress
April 1, 2016—September 30, 2016
Questioned Costs Federal
Report No.
Report
Date
Ineligible
Costs
Unsupported
Costs
Unreasonable
Costs
Recommended
Efficiencies
FINANCIAL AUDIT REPORTS
16-F-0251
Audit of Financial Statements for EPA's Hazardous Waste Electronic
Aug. 1,2016
$0
$0
$0
$0
16-F-0322
Manifest System Fund From Inception (October 5, 2012) Through
September 30, 2014
Fiscal Years 2014 and 2013 Financial Statements for the Pesticides
Sep. 22, 2016
0
0
0
0
16-F-0323
Reregistration and Expedited Processing Fund
Fiscal Years 2014 and 2013 Financial Statements for the Pesticide
Registration Fund
TOTAL FINANCIAL AUDIT REPORTS=3
Sep. 22, 2016
0
$0
0
$0
0
$0
0
$0
TOTAL REPORTS ISSUED=201
$241,006
$12,565,916
$0
$38,781,060
55
-------
Semiannual Report to Congress
April 1, 2016—September 30, 2016
Appendix 2—Reports Issued Without Management Decisions
For Reporting Period Ended September 30, 2016
The Inspector General Act of 1978, as amended, requires a summary of each audit report issued before the
commencement of the reporting period for which no management decision had been made by the end ofthe
reporting period, an explanation ofthe reasons such management decision had not been made, and a statement
concerning the desired timetable for achieving a management decision on each such report. Office of Management
and Budget Circular A-50 requires resolution within 6 months of a final report being issued. In this section, we report
on audits with no management decision or resolution within 6 months of final report issuance. In the summaries
below, we note the agency's explanation ofthe reasons a management decision has not been made, the agency's
desired timetable for achieving a management decision, and the OIG follow-up status as of September 30, 2016.
Office of Grants and Debarment
Report No. 13-P-0341, Lead Remediation Association of America, August 6, 2013
Summary: The OIG found that the Lead Remediation Association of America's financial management system did not
meet the standards established under the Code of Federal Regulations (CFR). The association's accounting system
data were not updated timely, the association made cash draws and submitted its final federal financial report using
the grant budget amounts rather than actual costs incurred, and the association did not maintain source
documentation to support the costs incurred or claimed as required. The OIG also found that the association did not
meet grant objectives. As ofthe date of our report—2 years after the grant period end date of June 30, 2011—the
association had not produced the required DVDs, provided evidence of brochure distribution, or completed required
training and workshops. The OIG questioned the $249,870 claimed and recommended recovery ofthe $249,882
drawn.
Agency Explanation: The decision is under appeal.
Region 6—Regional Administrator
Report No. 13-4-0296, Labor-Charging Practices at the New Mexico Environment Department, June 17, 2013
Summary: The OIG found that three ofthe four New Mexico Environment Department bureaus audited did not always
comply with requirements found in the CFR. The Air Quality Bureau and Drinking Water Bureau charged labor, fringe
benefits and indirect costs to federal grants based upon budget allocations instead of actual activities performed.
Personnel activity reports we received from the Surface Water Quality Bureau to support charges for labor costs
incurred prior to July 2006 did not meet requirements. Where employees work on multiple activities or cost objectives,
the code requires labor charges to be based upon the after-the-fact distribution of an employee's actual activity and
supported by employee-signed personnel activity reports or the equivalent. We questioned $298,159 in labor, fringe
benefits and related indirect costs claimed by the Air Quality Bureau; $2,974,318 claimed by the Drinking Water
Bureau; and $2,733,798 claimed by the Surface Water Quality Bureau. We also identified an additional $486,305
charged to a Drinking Water Bureau-administered grant not yet reported to the EPA.
Agency Explanation: A draft agency decision memo was sent to the OIG for review on October 3, 2016, after
receiving approval of a regulatory exception for approximately $4.9 million of the questioned cost. The management
decision letter to the New Mexico Environmental Department was signed on February 7, 2014. The issuance ofthe
management decision letter was delayed due to the complexity of the labor-charging finding. Due to various delays
encountered, the new planned completion date is December 31, 2016.
Report No. 16-S-0080, New Mexico Environment Department, FY 2014, December 31, 2014
Summary: The OIG found that for Nonpoint Source Implementation grants, one out of two financial reports tested was
not filed. For Comprehensive Environmental Response grants, three out of seven financial reports tested were not
filed. For State Public Water System Supervision grants, one out of 40 payroll transactions tested had a timesheet
that did not agree with the hours charged to the grant. For the Drinking Water State Revolving Fund grants, one out
of 40 payroll transactions tested had a timesheet that did not agree with the hours charged to the grant. Also,
financial information was not timely, complete and accurate; we noted a number of variances in amounts recorded
versus supporting documentation. As a result, the following exceptions were noted related to the department's
financial close and reporting process. In addition, the capital asset schedule and listing provided to the auditors
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contained numerous material errors within the schedules that required numerous revisions as identified by the
auditors.
Agency Explanation: The draft management decision letter for the FY 2014 New Mexico Environment Department
single audit was prepared to close the single audit; however, most of the findings were reported again in FY 2015 as
well, and closure was delayed until both fiscal years can be reviewed to confirm corrective actions are complete.
Region 8—Regional Administrator
Report No. 12-1-0560, Cheyenne River Sioux Tribe, September 24, 2007
Summary: The tribe did not comply with the financial and program management standards under the CFR and Office
of Management and Budget Circular A-87. We questioned $3,101,827 of the $3,736,560 in outlays reported. The
tribe's internal controls were not sufficient to ensure that outlays reported complied with federal cost principles,
regulations and grant conditions. In some instances, the tribe also was not able to demonstrate that it had completed
all work under the agreements and had achieved the intended results.
Agency Explanation: Region 8 addressed the OIG audit with the Cheyenne River Sioux Tribe, completed follow-up
evaluations and studies, and has determined that while the tribe was out of compliance with the administrative
requirements identified in the OIG's report, there was ample evidence that the underlying work was satisfactorily
completed and the overall harm to the federal government was negligible. However, the tribe's underlying policies
and procedures that allowed these compliance issues to arise have not yet been updated and, therefore, the risk of
recurring noncompliance is high. As a result, Region 8 has placed the tribe under a "high risk" status, provided
training to department and financial staff, and reviews the supporting documentation for all expenditures reimbursed,
and will continue to do so, until the tribe has (1) updated and implemented policies and procedures that will address
the systematic issues identified by the OIG and (2) demonstrated compliance in an agency's review of its future
single audits. Region 8 is in communication with the tribe and is awaiting the publication of its FYs 2014 and 2015
single audits. Once published, the EPA indicated that it will be working with the tribe, its cognizant agency (the U.S.
Department of the Interior) and others applicable agencies to understand and resolve any outstanding systematic
issues, provide training, and jointly develop a monitoring system that will provide tribal leaders and federal agencies
assurances that compliance requirements are understood and put into practice. Region 8 indicated that once the tribe
has demonstrated the ability to take these steps, the region plans to request a regulatory waiver of the identified
compliance issues. Region 8 indicated its examination revealed no fraud, waste or abuse, and that noncompliances
were a result of administrative issues rather than problems with completing objectives of the agreements.
Region 9—Regional Administrator
Report No. 13-3-0159, Summit Lake Paiute Tribe, Nevada - FY 2010, February 19, 2013
Summary: The tribe did not file or maintain documentation of compliance for annual reports. Also, the required
SF 425 report did not cover the correct period. A similar finding was noted in the prior year audit report. The tribe
recorded deferred revenues in the amount of $804,104 and only $150,416 in available cash. The single auditor
questioned $653,688. A similar finding was noted in the prior year audit report. The tribe's operating practices did not
reflect the processes described in the approved policies and procedures manual. The tribe did not properly reconcile
its SF 425 report to the general ledger for certain awards and the single auditor questioned $20,556. The single
auditor also questioned $76,216 involving amounts paid to the General Assistance Program Director.
Agency Explanation: Region 9 is addressing five audits with Summit Lake—one agreed-upon procedures audit and
four single audits. Summit Lake appealed the agreed-upon procedures audit and the Regional Administrator
accepted the appeal on August 13, 2014. A Debt Forgiveness Package was received from the tribe requesting that
EPA forgive the $74,418.70 owed as a result of the OIG's agreed-upon procedures review. As of September 30,
2016, Region 9 is still waiting for the EPA Claims Officer's decision on debt forgiveness.
Report No. 13-3-0160, Summit Lake Paiute Tribe, Nevada - FY 2011, February 19, 2013
Summary: The tribe did not file the quarterly narratives for the General Assistance Program. Furthermore, the tribe
was unable to locate documentation for two quarterly SF 425 reports. There were no formalized controls regarding
the security of the payroll stamp. Also, the single auditor noted issues related to pay rates. A similar finding was noted
in the prior year audit report. Budgets prepared excluded the carry-forward amounts from prior periods. Several
transactions were not supported by a purchase order or other type of approval prior to the expenditure being made.
One transaction charged to travel in the amount of $2,877 did not appear to be valid and appropriate for the granting
requirements, and the single auditors questioned that amount.
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Agency Explanation: Region 9 is addressing five audits with Summit Lake—one agreed-upon procedures audit and
four single audits. Summit Lake appealed the agreed-upon procedures audit and the Regional Administrator
accepted the appeal on August 13, 2014. A Debt Forgiveness Package was received from the tribe requesting that
EPA forgive the $74,418.70 owed as a result of the OIG's agreed-upon procedures review. As of September 30,
2016, Region 9 is still waiting for the EPA Claims Officer's decision on debt forgiveness.
Report No. 14-3-0248, City of Richmond, California - FY 2012, May 8, 2014
Summary: The review found that the Schedule of Expenditures of Federal Awards initially provided for audit was
materially misstated, and the prior year schedule did not include expenditures for all prior year programs. As the
single auditors began tracing the reported amounts to supporting documentation and comparing the grants listed to
the prior year schedule, the single auditors noted a number of material discrepancies. One of the significant errors
noted on the original schedule pertained to the Brownfield Assessment and Cleanup Cooperative Agreements, which
was included with expenditures of $262,000; it was discovered that expenditures for FY 2011 had not been included
in the prior year schedule and expenditures for FYs 2011 and 2012 of $906,000 were subsequently reported on the
schedule. The single auditors also noted that expenditures for the Brownfield Revolving Loan Fund Cooperative
Agreement and Brownfield Cleanup Cooperative Agreement were incurred after the grant project periods. Also, the
city did not provide documentation to demonstrate compliance with the grant's Quality Assurance Plan requirements.
On May 5, 2014, the OIG reviewed grant information. The city made four drawdowns totaling $600,000 (project cost)
after the budget and project end dates, but the OIG questioned the $600,000 as unsupported.
Agency Explanation: Resolution on hold.
Total reports issued before reporting period for which
no management decision had been made as of September 30, 2016 = 7
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Appendix 3—Reports With Corrective Action Not Completed
In compliance with reporting requirements of Section 5(a)(3) of the Inspector General Act of 1978, as amended, we are to identify each
significant recommendation described in previous semiannual reports on which corrective action has not been completed.
This appendix contains separate tables of unimplemented recommendations for the EPA and CSB. The tables are further divided by:
(1) recommendations with past due corrective actions and (2) recommendations with corrective actions that have a future completion
date. Many of the recommendations have completion dates in the future due to the complexity or challenging nature of the
recommendations.
Below is a listing of the responsible EPA offices that have recommendations included in the following tables. While a recommendation
may be listed as unimplemented, the agency may be on track to complete agreed-upon corrective actions by the planned due date.
A reason for delay is only shown for those recommendations that are past their original planned completion date. The information
regarding reason for delay was provided by the agency and was not verified by the OIG.
Responsible EPA Offices:
OA Office of the Administrator
OAR Office of Air and Radiation
OARM Office of Administration and Resources Management
OCFO Office of the Chief Financial Officer
OCSPP Office of Chemical Safety and Pollution Prevention
OECA Office of Enforcement and Compliance Assurance
OGD Office of Grants and Debarment
OEI Office of Environmental Information
OITA Office of International and Tribal Affairs
OLEM Office of Land and Emergency Management
ORD Office of Research and Development
OW Office of Water
Region 2
Region 5
Region 6
Region 7
Region 9
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EPA Reports With Past Due Unimplemented Recommendations
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
Drinking Water: EPA
Needs to Take Additional
Steps to Ensure Small
Community Water
Systems Designated as
Serious Violators Achieve
Compliance (16-P-0108)
03/22/16
OECA
6. Through the EPA's workgroup focusing on
"intractable" water systems:
a. Work with the relevant EPA program and
regional offices (such as the Office of
Water and Office of Research and
Development) to establish a coordinated
Action Plan for achieving workgroup goals
that draws expertise and tools across the
agency.
b. Invite other federal agencies (such as the
U.S. Department of Agriculture and U.S.
Department of Housing and Urban
Development) to assist in identifying and
exploring the inclusion of non-EPA tools,
options and best management practices
that could help small community water
systems.
06/30/16
OECA has extended the estimated
completion date to 10/1/16 to allow
additional time for discussions among
workgroup members and to obtain input from
the new managing director of the program.
EPA's Tracking and
Reporting of Its
Conference Costs Need
Improvement
(16-P-0081)
01/07/16
OCFO
2. Work with program offices to identify EPA
Form 5170A cost reporting issues and revise
the form to allow for easier user reporting.
3. Provide additional guidance or training to
EPA staff on how to:
a. Include conference project codes on
procurement and training-related costs
entered into the financial system.
b. Code conference travel authorizations with
the correct conference project code.
c. Identify all costs associated with a
conference.
d. Report all conference costs paid with EPA
funds, not just those paid by the reporting
office.
03/31/16
06/30/16
Expected completion date revised to
12/31/16, and on track to be completed by
revised due date. Extended to allow time for
modifications to be made to the conference
spending form.
Corrective actions for Recommendations
3.b.-d. have been completed. The expected
completion date for 3.a. has been revised to
allow for coordination with OARM on
developing and implementing a process for
ensuring procurements will utilize the
conference project codes.
EPA's Background
Investigation Support
Contracts and OPM
Billings Need Better
Oversight and Internal
Controls (16-P-0078)
12/14/15
OARM
5. Require that the Headquarters Procurement
Operations Division Director implement a
management internal control to ensure Contract
Officer invoice reviews are being performed in
accordance with the EPA's Invoice Review &
Approval Desk Guide.
04/30/16
The former Headquarters Procurement
Operations Division Director who identified
the agreed-upon corrective action departed
the EPA before the corrective action could
be implemented and institutionalized. In
order to get this corrective action back on
track, the current Headquarters Procurement
Operations Division Director plans to
establish a quarterly stand-down day for
invoice review. The first stand-down day will
be held on 5/18/16, and the requested
6-month extension will enable the Office of
Acquisition Management/Headquarters
Procurement Operations Division to conduct
two such stand-down days and
institutionalize this approach.
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
Audit of EPA's Fiscal Year
2015 and 2014
Consolidated Financial
Statements (16-F-0040)
11/16/15
OCFO
7. Complete the planned corrective actions and
continue to research and resolve differences
between Compass and the property
management system timely.
36. Complete the corrective actions previously
identified in Table 4.
38. Follow the terms in the legal source
documents when recording interest by ensuring
interest is recorded in the system when a
receivable becomes past due, either through
Compass automatic calculations or manual
interest calculations prepared by the Cincinnati
Finance Center.
06/30/16
09/30/16
09/30/16
The new planned completion date to be
revised to 06/30/17. A change request was
submitted in 2015, which is needed to
change the reports that show reconciliation
differences. OCFO has identified the
reasons for the reconciliation differences and
apply a manual adjustment to the automated
report on the reconciliation spreadsheet as
part of the reconciliation process. The
purpose of the change request is to eliminate
the need for the manual adjustment. Once
the change request is approved, time will still
be needed for the change to be made to the
way the reports function.
The agency has completed a comprehensive
review of the existing EPA 1610 manual and
identified necessary changes, including a
description of the billing requirement. That
description will be contained in the revised
version of the manual. An interim manual will
be issued with the completed billing section
to meet the 10/15/16 planned completion
date.
The Cincinnati Finance Center has a change
request submitted to gain access to a table
which houses when interest is to start. The
table would help center adhere to legal terms
(such as interest to accrual from some date
other than the receivable date) and hopefully
would enable Compass to accrual interest
once a debt becomes delinquent (so staff
would not have to 'uncheck' the waive
interest flag). This change request is
currently working through the process and is
expected to be resolved by 12/31/16.
EPA Needs to Improve the
Recognition and
Administration of Cloud
Services for the Office of
Water's Permit
Management Oversight
System
(15-P-0295)
09/24/15
OW
4. Develop and implement an approved system
authorization package (i.e., a risk assessment,
System Security Plan, and Authorization to
Operate), and perform annual security
assessments for the Permit Management
Oversight System application.
05/31/16
EPA Needs to Track
Whether Its Major
Municipal Settlements for
Combined Sewer
Overflows Benefit Water
Quality (15-P-0280)
09/16/16
OECA
2. Develop a nationally consistent consent
decree tracking and accountability system that
includes:
a. Consent decree milestones.
b. Frequency of combined sewer overflow
events and changes in combined sewer
overflow volumes.
c. Effluent and water quality data collected by
states and communities at combined
sewer overflow outfalls.
d. Wherever possible, water quality
improvement of municipal impaired waters
attributable to combined sewer overflow
upgrades.
04/01/16
OECA has partially completed corrective
actions 1,2.a., 3.a., and 4.a. The OECA
Assistant Administrator has approved an
extension to 11/01/16 to complete the
remaining open corrective actions and to
establish an OECA/regional group to
determine how best to obtain and relay the
compliance status of individual federal
judicial combined sewer overflow consent
decree and revise as needed to support
relaying combined sewer overflow consent
decree compliance status to the public.
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
3. Develop an Annual Commitment System goal
that establishes regional goals for monitoring
and reporting outcomes associated with
combined sewer overflow consent decrees, in
order to prioritize consent decree tracking in
regional offices.
02/28/16
4. Provide information on a public website that
links the public to combined sewer overflow
consent decree information, and links to
information produced under the
recommendation pertaining to progress and
results.
04/01/16
EPA Can Reduce Risk of
Undetected Clean Air Act
Violations Through Better
Monitoring of Settlement
Agreements (15-P-0277)
09/10/15
OECA
1. Update and reissue the Manual on Monitoring
and Enforcing Administrative and Judicial
Orders to address:
a. Requirements for monitoring of consent
decrees, including enforcement file
documentation; responsibilities for
ensuring applicable Clean Air Act permit
applications and draft permits have
incorporated consent decree-required
emission limits and other requirements;
and documentation of EPA management
decisions, company follow-up and
correspondence.
b. EPA's general responsibilities and process
to be used to terminate a consent decree.
c. Documentation needed to demonstrate
supervisory review of enforcement staff's
consent decree monitoring activities.
2. Ensure that all regions have consent decree
compliance monitoring systems in place that:
a. Track receipt of all consent decree
deliverables.
b. Flag overdue consent decree deliverables.
c. Provide timely access to all consent
decree deliverables.
d. Document EPA decisions as to whether
deliverables meet the consent decree
requirements.
e. Record all consent decree violations and
EPA decisions on whether and how much
stipulated penalties were assessed.
f. Demonstrate supervisory review and
approval of enforcement staff's consent
decree monitoring activities.
09/30/16
09/30/16
Expected completion of corrective actions for
Recommendations 1 and 2 were extended
by OECA management to 12/31/16, as
OECA received more comments than
expected from various offices and needs
time to address those comments, including
comments expected from regions.
Internal Controls Needed
to Control Costs of
Superfund Technical
Assessment & Response
Team Contracts, as
Exemplified in Region 7
(15-P-0215)
07/20/15
Region
7
2. Require the Project Officer to notify the
contractor regarding the required schedules and
ensure that all are received with the contractor's
invoices.
3. Require the Project Officer to notify the
contractor of the required monthly progress
report elements, and ensure that the contractor
begins submitting all required elements.
12/31/15
12/31/15
Region 7 has received notification that
corrective actions have been completed, but
is awaiting receipt of documentation
confirming all corrective actions have been
fully implemented before they can be closed
out. Documentation is expected in the
second quarter of 2017.
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
4. Require the Contracting Office to recover the
$1,320 related to the double-billing of Tyvex
suits, gloves and air cartridges, and review all
other billings on the contract to identify other
double-billings and recover any identified costs.
12/31/15
5. Require the Contracting Officer to require the
contractor to begin billing Subcontractor C
immediately as a subcontractor, consistent with
how the costs were proposed and the definition
of a subcontractor per the Federal Acquisition
Regulation.
09/30/15
6. Require the Contracting Officer to recover the
$2,236 of unallowable General and
Administrative costs related to Subcontractor C
and review all billings from November 2014 to
the present and recover any additional General
and Administrative billed to the government.
12/31/15
7. Ensure that the two contractor employees
who do not meet the contract qualifications no
longer work on the Superfund Technical
Assessment & Response Team contract in
positions they are not qualified for.
09/30/15
8. Require the Project Officer to review the
qualifications of all personnel who have been
billed on the contract to ensure they meet
contract qualifications, and report any who do
not meet the qualifications to the Contracting
Officer.
12/31/15
9. Require the Contracting Officer to recover the
$73,971 of billed costs associated with the
unqualified employees as of February 4,2014,
as well as any amounts billed for these
employees after that date. The Contracting
Officer should also recover any costs
associated with unqualified personnel identified
by the Project Officer in implementing
Recommendation 8.
12/31/15
10. Provide training to the Project Officer and
Task Order Project Officers on the EPA's
Invoice Review & Approval Desk Guide.
09/30/15
12. Ensure that Region 7 staff receive and
review the staffing plan from the contractor in
accordance with the contract.
12/31/15
13. Require the Contracting Officer to recover
$4,795 related to staffing plans paid for but not
received in year one of the contract.
12/31/15
14. Calculate the costs paid out for staffing
plans that were not received for year two and
recover that amount.
12/31/15
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
15. Conduct training on the proper procedures
for performing annual invoice reviews.
09/30/15
16. Require the Contracting Officer for the
Region 7 Superfund Technical Assessment &
Response Team contract to perform quarterly
invoice reviews as recommended in the EPA
Acquisition Guide and the Invoice Review &
Approval Desk Guide.
12/31/15
17. Perform a review of all contracts
administered by Region 7, evaluate the risks
associated with them, and implement quarterly
Contracting Officer invoice reviews of contracts
deemed to be of a higher risk.
12/31/15
18. Develop and implement a management
internal control to ensure Contracting Officer
invoice reviews are being conducted.
12/31/15
20. Develop a tracking system to ensure that
the Contracting Officer distributes the indirect
rate agreement to the Project Officer and that
the contractor's adjustment vouchers are
received timely.
09/30/15
21. Notify all Region 7 Project Officers of
adjustment voucher policies and procedures,
emphasizing the Project Officer's responsibility
in the process.
09/30/15
26. Require the Contracting Officer to review the
contract and include all missing information,
eliminate repetitive clauses and make
corrections to inaccurate clauses.
06/30/15
Some Safeguards in Place
for Long-Term Care of
Disposed Hazardous
Waste, But Challenges
Remain (15-P-0169)
06/17/15
OLEM
1. Finalize and issue guidance on evaluating
and adjusting the post-closure care period for
Resource Conservation and Recovery Act
hazardous waste disposal units closed with
waste in place.
12/31/15
On 12/22/15, the Office of Management and
Budget determined the post-closure care
guidance was a significant guidance and
thus subject to interagency review under
Executive Order 12866. The guidance is still
undergoing Office of Management and
Budget interagency review; therefore OLEM
is amending this commitment to revise the
completion date of its draft "Guidelines for
Evaluating and Adjusting the Post-Closure
Care Period for Hazardous Waste Disposal
Facilities under Subtitle C of RCRA" to be
finalized by 12/31/16.
Time and Attendance
Fraud Not Identified for
Employees on Extended
Absence, But Matters of
Concern Brought to EPA's
Attention (15-P-0167)
06/15/15
OA&
OARM
1. Address the specific matters of concern
noted in this report pertaining to:
a. Accuracy of time charges in PeoplePlus.
b. Use of a personal computer to conduct
official work.
c. Safety of the work space for employee on
Reasonable Accommodation telework.
04/30/16
Delay concerns coordination between the
Office of Civil Rights and OARM on the
Reasonable Accommodation telework policy.
Discussions are being held between the
offices to determine expected completion.
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
Improved Oversight of
EPA's Grant Monitoring
Program Will Decrease the
Risk of Improper Payments
(15-P-0166)
06/11/15
OGD
3. Follow up on undocumented costs identified
in the OIG finding and require grant recipients to
reimburse the agency for costs deemed
unallowable based on insufficient and/or
unacceptable source documentation.
12/31/15
OGD revised the expected completion date
for reviewing the documentation provided by
grant recipients supporting questioned costs,
and requiring reimbursement for unallowable
costs associated with grant recipients
identified in the audit report. OGD has
completed that process for all but one of the
identified grant recipients. OGD is awaiting
additional documentation to support the
questioned costs from that recipient. The
recipient is expected to provide OGD
sufficient documentation in order to complete
its review and require reimbursement of any
unallowable costs by 12/31/16.
Audit of EPA's Fiscal
Years 2014 and 2013
(Restated) Consolidated
Financial Statements
(15-1-0021)
11/17/14
OCFO
5. Improve and maintain support for how EPA
lab renovation projects are funded.
6. Review funding sources of all current and
future lab renovations to ensure correct funding
is utilized.
7. Develop policies and procedures for capital
improvements/betterments to real property,
specifically, to address EPA lab renovations
which could include bulk purchases of
equipment and funding from agency program
appropriations other than the Building and
Facilities appropriation.
12. Research and resolve differences between
Compass and the property management system
timely.
03/31/16
03/31/16
03/31/16
09/30/15
For Recommendations 5 throughy 7, the
Office of the Controller's Policy, Training and
Accountability Division completed a FY 2016
policy call which prioritized how financial
policies will be updated moving forward. As a
result of the prioritization, policy
development related to these actions is
scheduled for completion 9/30/17.
OCFO has resolved $50 million of the
differences between Compass and Maximo
as required by the Resource Management
Directive System. The differences were
partially due to data conversion from the
Integrated Financial Management System to
Compass. The remaining differences is
between the Fixed Assets Subsystem and
General Ledger and is due to software
overhead vouchers. Reporting and Analysis
Staff will continue to clear the differences.
New anticipated completion date is 6/30/17.
OARM
14. Require project officers to approve federal
disbursements timely.
03/31/15
An interim Interagency Agreement Manual
will be issued with the completed billing
section to meet the 10/15/16 revised
estimated completion date.
Enhanced EPA Oversight
Needed to Address Risks
From Declining Clean Air
Act Title V Revenues
(15-P-0006)
10/20/14
OAR
4. Ensure that EPA regions complete program
evaluation reports of authorized state and local
permitting authorities within a reasonable period
of time following the evaluation, and require that
EPA regions publicly issue these program
evaluation reports.
09/30/16
EPA has developed an EPA Oversight page
on our public internet site for Title V, which
includes a section for Part 70 program and
fee evaluations that have been posted by the
EPA regions: https://www.epa.gov/title-v-
operating-permits/epa-oversight-operating-
permits-program. Note that the Part 70
evaluations can also be found by following a
link to EPA Oversight from the Title V
homepage: https://www.epa.gov/title-v-
operating-permits.
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Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
EPA has not yet completed the commitment
to identify a reasonable timeframe in which
to complete the evaluation reports, but has a
plan to do so in the near term. The first step
of this plan is to seek input from the Air
Program Managers (a group of EPA
managers in the regions and headquarters
that implements the national air permits
programs) on the need to revise the OAR
National Program Manager Guidance,
specifically measure OAQPS P06, which
currently provides for one evaluation and
one report per year per region. If the Air
Program Managers recommend revisions to
OAQPS P06 as it is currently written, we will
solicit feedback on how to revise this
measure for the upcoming Fiscal Year 2018-
2019 OAR National Program Manager
Guidance, which is currently being
developed and is expected to be released in
draft form in the spring of 2017.
The evaluation report completion timeline will
be introduced and discussed during the
monthly Air Program Managers call in
October 2016, with Air Program Managers
input to the Office of Air Quality Planning and
Standards due in November 2016. This
matter should be resolved shortly thereafter.
However, given the concurrent holiday
season, and considering the possibility that
the issue may not be resolved as quickly as
anticipated, the Air Quality Planning and
Standards requests that the target date for
this corrective action be revised to March 31,
2017.
EPA Needs to Improve Its
Process for Accurately
Designating Land as Clean
and Protective for Reuse
(14-P-0364)
09/24/14
OLEM
3. Stipulate the following in the grant
agreements for each program:
a. For Brownfields, require grantees to track
the status and type of reuse of remediated
sites and report that information to OLEM.
b. For Resource Conservation and Recovery
Act Corrective Action, whenever there is a
change in site conditions or site use,
require states to revise the Resource
Conservation and Recovery Act Corrective
Action determination form to reflect the
changes and have states re-submit the
form to OLEM.
c. For Underground Storage Tanks, require
states to submit to OLEM and make
publicly available site-specific information,
including site name.
5. Appropriately qualify the validity, uses and
reliability of the Cross-Program Revitalization
Measures data reporting in OLEM's publicly
available information systems.
09/30/15
09/30/15
OLEM's Office of Underground Storage
Tanks has developed a draft of the long-term
stewardship document which will be shared
with Association of State and Territorial Solid
Waste Management Organizations and
states; estimated completion date has been
moved to 12/31/16. When finalized, this is
expected to resolve Recommendations 3
and 5.
66
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
More Action Is Needed to
Protect Water Resources
from Unmonitored
Hazardous Chemicals
(14-P-0363)
09/29/14
OW
2. Develop, in coordination with EPA regions, a
list of chemicals beyond the priority pollutants
appropriate for inclusion among the chemicals
subject to discharge permits. This may include:
a. Review of Toxics Release Inventory-
reported discharges to sewage treatment
plants. Initial review could focus on
Resource Conservation and Recovery Act
hazardous chemicals reported in the Toxics
Release Inventory.
b. Review of chemicals monitored
nationwide in sewage treatment plant
discharge permits, especially chemicals
monitored by Region 9.
c. Review of chemical monitoring data
already collected by sewage treatment
plants but not included in discharge permits.
d. Discussion with the Office of Resource
Conservation and Recovery for suggested
hazardous chemicals.
e. Development of mechanisms that ensure
discharge and pretreatment programs
coordinate during discharge permit writing.
3. Confirm, in coordination with OECA and EPA
regions, that sewage treatment plants and their
industrial users are aware of and comply with
the 40 CFR 403.12(p) requirement that
industrial users submit hazardous waste
notifications.
09/30/15
09/30/15
OW, OECA and OEI completed development
of an electronic tool that will make the data
on discharges to publicly owned treatment
works reported under Toxic Release
Inventory easily available to publicly owned
treatment works, states, EPA and the
general public. The new electronic tool is
part of the Discharge Monitoring Report
Pollutant Loading Tool, a tool used to easily
access data submitted from National
Pollutant Discharge Elimination System
Discharge Monitoring Reports and Toxic
Release Inventory as part of Clean Water
Act monitoring activities.
OW also updated its training materials for
whole effluent toxicity. OW conducted a
review with OGC and OECA and is currently
finalizing management review, which is
expected to be completed by 10/31/16
EPA Needs to Work With
States to Develop
Strategies for Monitoring
the Impact of State
Activities (14-P-0348)
09/03/14
ow
1. Work with state and federal Task Force
members in the Mississippi River Watershed to
develop and enhance monitoring and
assessment systems that will track the
environmental results of state nutrient reduction
activities, including their contribution to reducing
the size of the Gulf of Mexico hypoxic zone.
06/30/15
Completion of the corrective action delayed
until 12/31/16. The Nonpoint Source
Measures Workgroup has continued to make
progress reviewing and discussing available
and achievable common measures that all
Hypoxia Task Force states can use to track
progress. EPA has assembled information
on the conservation practices funded by the
agency's 319 nonpoint source control grant
program and made this available to states.
States have compiled data on state-funded
practices. The workgroup is now working to
identify potential sources of private
conservation investments and is anticipating
that U.S. Department of Agriculture's
National Resource Conservation Service will
release a national data sharing policy to
describe a process for states to access
U.S. Department of Agriculture conservation
practice implementation information. Based
on a preliminary data analysis and with
anticipation of the U.S. Department of
Agriculture's forthcoming national data
sharing policy, the workgroup expects that a
Nonpoint Source Measures Report can be
67
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
completed this calendar year. The Task
Force will continue working to include
information on privately funded conservation
investment in future reports on nonpoint
source progress.
New Jersey Department of
Environmental Protection
Needs to Meet
Cooperative Agreement
Objectives and Davis-
Bacon Act Requirements
to Fully Achieve Leaking
Underground Storage
Tank Goals (14-R-0278)
06/04/14
Region
2
1. Require New Jersey Department of
Environmental Protection to establish internal
controls to ensure that modifications to the
cooperative agreement work plan are in
accordance with the requirements of 40 CFR
31.30 and 31.40.
09/30/15
The OIG audit was conducted under the
former EPA grant regulations. The new
Uniform Grants Guidance changed the
grants and EPA-specific CFR Part 35 rules,
making the guidance much more
complicated, and requiring more time to
finalize an agencywide policy. New policies
under the Uniform Grant Guidelines have
caused delays in issuing this policy. The
revised estimated date for completion
9/30/2017.
EPA Did Not Conduct
Thorough Biennial User
Fee Reviews (14-P-0129)
03/04/14
OW
5. Apply federal user fee policy in determining
whether to (a) charge fees for issuing federal
National Pollutant Discharge Elimination System
permits in which the EPA is the permitting
authority, or (b) request an exception from
Office of Management and Budget to charging
fees.
12/31/14
OW is working with OCFO to request an
exception from a National Pollutant
Discharge Elimination System user fee from
the Office of Management and Budget.
Expected completion date is 10/31/17.
Improvements Needed in
EPA's Smartcard Program
to Ensure Consistent
Physical Access
Procedures and Cost
Reasonableness
(13-P-0200)
03/27/13
OARM
1. Re-prioritize the remaining facility upgrades
by security level from highest to lowest,
complete all remaining upgrades according to
security level, and require the Security
Management Division Director to provide written
justification for upgrading Level 1 facilities.
06/30/14
9/30/16 Update: OARM sent the Inspector
General an email on September 30, 2016,
notifying the OIG that we are revising the
completion date of corrective action 1 -3 to
September 15, 2017. We provided the OIG
with a 2014 email to the Office of
Management and Budget detailing the
reason for the delay.
Improvements Needed in
EPA Training and
Oversight for Risk
Management Program
Inspections (13-P-0178)
03/21/13
OLEM
7. Revise inspection guidance to recommend
minimum inspection scope for the various types
of facilities covered under the program and
provide more detailed examples of minimum
reporting.
8. Develop and implement an inspection
monitoring and oversight program to better
manage and assess the quality of program
inspections, reports, supervisory oversight, and
compliance with inspection guidance.
07/31/14
09/30/14
This action requires development of
guidance which will specify the minimum
inspection scope for each of the facility types
regulated by the Risk Management Program,
and revise reporting guidance to provide
detailed examples of compliance. Currently,
the Administration's priority is to complete a
final Risk Management Program regulation
by late 2016/early 2017. Following
completion of the final regulation, EPA will
be required to revise the Risk Management
Program on-line reporting system and over a
dozen guidance documents to incorporate
the regulatory changes. This effort will take
2-3 years and must be completed in that
timeframe to give facilities time to review the
guidance and comply with the new
requirements under the Risk Management
Program. The revised completion date is
9/30/18.
This action requires the development of an
on-line system for the regions to file/submit
each of their inspection reports. This system
must allow for quality control and the ability
to not only assess the quality of the
inspection reports, but identify trends and
68
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
issues at Risk Management Program
facilities in order to better target our
inspection efforts. Currently the
Administration's priority is to complete a final
Risk Management Program regulation by
late 2016/early 2017. Following completion
of the final regulation, EPA will be required to
revise the Risk Management Program
on-line reporting system and over a dozen
guidance documents to incorporate the
regulatory changes. The revised completion
date is 9/30/19.
Audit of EPA's Fiscal 2012
and 2011 Consolidated
Financial Statements
(13-1-0054)
11/15/12
OCFO
6. Update EPA's policy for recognizing year-end
accruals to require reconciliations of accruals
and accrual reversals.
03/31/13
Office of the Controller's Policy, Training and
Accountability Division is completing the
draft policy and procedures by 9/30/16. The
document will be reviewed by the Office of
the Controller's Accounting and Cost
Analysis Division, the stakeholder, and is
expected to be finalized by 12/31/16.
Review of Hotline
Complaint Concerning
Cost and Benefit Estimates
for EPA's Lead-Based
Paint Rule (12-P-0600)
07/25/12
OCSPP
1. Reexamine the estimated costs and benefits
of the 2008 Lead Rule and the 2010
amendment to determine whether the rule
should be modified, streamlined, expanded, or
repealed.
CA3: OCSPP will draft information and
analysis submitted to the Office of
Management and Budget for Interagency
review as part of the Action Development
Process.
CA4: OCSPP will publish the work practice
and cost information as part of the proposed
rule.
03/31/15
09/30/15
The schedule for the Lead Renovation,
Repair and Painting in Public and
Commercial Buildings Rulemaking, also
identified as the "LRRP PnCB rulemaking,"
requires the EPA to evaluate whether or not
renovation activities on public and
commercial buildings create lead-based
paint hazards as defined under Section 403
of the Toxic Substances Control Act.
OCSPP's Corrective Action Plan, which is
contained within the memorandum of
12/28/12, to the OIG, stated that the timeline
for developing the LRRP PnCB rulemaking
would be subject to both Office of
Management and Budget approval of a
survey to gather the more extensive
information, and a settlement agreement
which stipulated that EPA propose a rule by
7/1/15.
The settlement agreement has since been
amended, and the new date for the proposed
rule is now 3/31/17. As a result, the schedule
for completion of corrective actions 1-3 and
1-4 (CA3 and CA4) is now as follows:
• The draft proposed rule is currently
scheduled to be submitted to Office of
Management and Budget review under
Executive Orders 12866 and 13563 by
11/21/16.
• The Lead Renovation, Repair, and
Painting in Public and Commercial
Buildings Rule proposed rulemaking is
currently scheduled to be signed by
3/31/17, with publication following 7-10
work days.
69
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
Controls Over State
Underground Storage
Tank Inspection Programs
in EPA Regions Generally
Effective (12-P-0289)
02/15/12
OLEM
1. Require EPA and states to enter into
Memorandums of Agreement that reflect
program changes from the 2005 Energy Policy
Act and address oversight of municipalities
conducting inspections.
08/01/13
Reduced extramural resources and
personnel, program implementation including
inspections and new priority concerns for oil
spill response associated with increased oil
transportation have delayed, and will
continue to delay, effort on this milestone for
at least a year or more. In addition, recent
enactment of the Water Resources Reform
and Development Act place priority
responsibilities on the Spill Prevention,
Control and Countermeasure program for
the next 2 years. Consequently, action on
this action cannot begin before June 2017.
EPA Needs to Further
Improve How It Manages
Its Oil Pollution Prevention
Program (12-P-0253)
02/06/12
OLEM
1. Improve oversight of facilities regulated by
the EPA's oil pollution prevention program by:
d. Producing a biennial public assessment of
the quality and consistency of Spill
Prevention, Control, and Countermeasure
Plans and Facility Response Plans based on
inspected facilities.
CA1 -2. A summary of findings will be
developed by October, 2013. These findings
will help to identify areas where additional
guidance and outreach are needed to improve
the quality and consistency of Spill
Prevention, Control, and Countermeasure
Plans.
CA 1-3. The model developed for the Spill
Prevention, Control, and Countermeasure
program will then be used to develop a review
protocol for Facility Response Plans by
September, 2013, to examine Facility
Response Plan inspections conducted during
the FY 2013 inspection cycle.
CA 1 -4. A summary of findings will be
developed by October 2014. These findings
will help to identify areas where additional
guidance and external outreach are needed to
improve the quality and consistency of Facility
Response Plans.
10/31/13
09/30/13
10/31/14
Audit of EPA's Fiscal 2009
and 2008 (Restated)
Consolidated Financial
Statements (10-1-0029)
11/16/09
OCFO
27. Ensure that all new financial management
systems (including the Integrated Financial
Management System replacement system) and
those undergoing upgrades include a system
requirement that the fielded system include an
automated controls to enforce separation of
duties.
12/31/15
Reduced extramural resources and
personnel, program implementation,
including inspections and new priority
concerns for oil spill response associated
with increased oil transportation, have
delayed, and will continue to delay, effort on
this milestone for at least a year or more. In
addition, recent enactment of the Water
Resources Reform and Development Act
place priority responsibilities on the Spill
Prevention, Control and Countermeasure
program for the next 2 years. Consequently,
action on this action cannot begin before
June 2017.
70
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
Making Better Use of
Stringfellow Superfund
Special Accounts
(08-P-0196)
07/09/08
Region
9
2. Reclassify or transfer to the Trust Fund, as
appropriate, up to $27.8 million (plus any
earned interest less oversight costs) of the
Stringfellow special accounts in annual reviews,
and at other milestones including the end of
FY 2010, when the record of decision is signed
and the final settlement is achieved.
12/31/12
Region 9 issued a status update memo to
the OIG to extend the target action date for
Recommendation 2 to 9/30/23 due to
additional work that the state has committed
to complete in support of the final sitewide
Record of Decision.
Asbestos Cleanup in Libby
Montana (2007-P-00002)
12/05/06
OLEM
1. Fund and execute a comprehensive
amphibole asbestos toxicity assessment to
determine (1) the effectiveness of the Libby
removal actions, and (2) to determine whether
more actions are necessary. The toxicity
assessment should include the effects of
asbestos on children. The EPA Science
Advisory Board should review the toxicity
assessment and report to the Office of the
Administrator and the Libby Community
Advisory Group whether the proposed toxicity
assessment can sufficiently protect human
health.
09/30/15
The corrective action milestone date to
complete the National Health and
Environmental Effects Research Laboratory
animal toxicity studies is revised again from
9/30/16 to 10/31/16 to allow more time for
management review of the final report
summarizing the studies and their results.
The goals of the seven National Health and
Environmental Effects Research Laboratory
projects have been met and, to date, this
research has resulted in over 20 peer
reviewed publications, with a few remaining
publications in the finalization process.
71
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Semiannual Report to Congress April 1,2016—September 30, 2016
CSB Reports With Past Due Unimplemented Recommendations
Report Title/No.
Report
Date
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
CSB Did Not Follow Federal
Guidance While Managing
the Vantage Contract
(16-P-0112)
03/24/16
1. Require the CSB's contracting officers,
contracting officer's representatives, and the
Managing Director to obtain training on the
requirements in the Federal Acquisition
Regulation, Sections 1.602-2 and 1.604, to
better understand their roles and responsibilities.
09/30/16
All Board Members, the Office of General
Counsel and Procurement were briefed in
February 2016. CSB Contracting Officers
continue to coach Contract Officer
Representatives on their roles and
responsibilities. The CSB is also completing a
module on their e-Training site to more formally
instruct Contract Officer Representatives. Given
staff workload, the deadline for completion must
be changed. Refresher training modules will be
developed and implemented by the end of the
calendar year.
U.S Chemical Safety and
Hazard Investigation Board
Needs to Complete More
Timely Investigations
(13-P-0337)
07/30/13
1. Develop and implement performance
indicators related to its first strategic
performance goal and objective to complete
timely investigations. Indicators should track and
measure the efficiency of key phases of the
investigation process and clarify the definition of
a "timely" completed investigation. Also, address
the indicators in the investigation protocol policy.
12/31/13
The CSB is analyzing key investigation metrics
such as investigator hours, costs and elapsed
days to develop performance indicators for
various investigation product types. These
indicators will be incorporated in the Investigation
Product Development and Review procedure of
the investigation protocol, which will provide
timelines for key milestones. Given staff
resources and the investigation workload, the
deadline for completion has been changed. Due
to other pressing initiatives (closing investigations,
Sunshine meetings, business meetings, filling
vacancies, etc.), the date of completion was
revised to December 31,2016.
2. Revise and publish an annual action plan to
comply with GPRA (Government Performance
and Results Act) 2010 and update related
individual performance plans to ensure that
performance indicators are addressed and
investigative staff are held accountable for per-
forming key phases in the investigation process.
12/31/13
The Board approved the Strategic Plan for 2017-
2021 on September 30,2016. Work to complete
the Action Plan is underway.
8. Update the investigation protocol policy for all
current investigation procedures to include
scoping documents and recommendation briefs.
Provide formal training to the investigative staff
on changes and updates to the investigative
process.
12/31/13
The team revised this procedure and it was
submitted for various internal reviews, but a draft
document was not approved, as the protocol
efforts were temporarily halted by changes in
leadership. In April 2016, the efforts of the
protocol team were reinvigorated at the request of
the Chairperson, to (1) establish a strategic
decision process for incident deployment
meetings; and (2) complete Board Order 40, the
Investigation Protocol. In June 2016, the protocol
team presented a draft of the strategic
deployment decision process flow diagram to the
Board to be used as a trial aid in deployment
decision-making processes by the Leadership
Team. The protocol team has continued to make
revisions to the deployment process based on this
new process, and submitted new versions to the
Board and staff for use. In addition, the protocol
team began revising Board Order 40 Sections A-F
in June, July and August of this year. The protocol
team is finalizing the first draft of the protocol
72
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Unimplemented Recommendation
Planned
Completion
Date
Reason for Delay
(Sections A-F) for staff review, scheduled for the
week of September 26,2016. After resolving
comments from the staff, the team will submit
Sections A-F to the Board in mid-October with a
goal of presenting the final version of the protocol
for Board vote and approval in November 2016.
U.S. Chemical Safety and
Hazard Investigation Board
Did Not Take Effective
Corrective Actions on Prior
Audit Recommendations
(11-P-0115)
02/15/11
2. Develop and publish a regulation requiring
persons to report chemical accidents, as
required by the Clean Air Act.
09/30/11
Although the CSB's current incident reporting
mechanisms adequately notify the agency of
important incidents, the CSB Office of the General
Counsel is discussing regulatory initiatives,
including a potential incident reporting regulation,
with the new Board members. An effective
incident reporting rule would require additional
resources to support new mechanisms to collect,
input, process and report the incident data
received pursuant to the rule. Consequently,
incident reporting rulemaking requires careful
consideration and input from a variety of CSB
stakeholders and Congress. The CSB will
continue to explore this endeavor and update the
OIG with our decisions and progress annually.
CSB noted in its response to the draft, EPA OIG
2015 Proposed Management Challenges for
CSB, that it plans to focus on how to best execute
its mission to investigate accidents as it performs
an internal organizational review.
6e. Board Order 028, "Executive Administrative
Functions of the Board," to document the role
and responsibility of the managing director
position.
09/30/11
As of 2/14/12, CSB stated "It reviewed Board
Order 028 and determined that it is not
appropriate to document the role and
responsibilities of the Managing Director in this
Board Order. The purpose of the board order is to
establish the manner in with the Board exercises
its executive and administrative functions through
the position of the Chairperson. The Managing
Director is a staff position, for which roles and
responsibilities are appropriately established in
the position description."
73
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Semiannual Report to Congress April 1,2016—September 30, 2016
EPA Reports With Unimplemented Recommendations With Future Dates
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
EPA Offices Are Aware of the
Agency's Science to Achieve
Results Program, but Challenges
Remain in Measuring and Internally
Communicating Research Results
That Advance the Agency's Mission
(16-P-0125)
03/30/16
ORD
1. Create procedures for developing Requests for Application to
ensure program office input is considered in the Request for
Application development process.
2. Create procedures for conducting relevancy reviews to ensure
program office input is more consistently and transparently considered
in the grant selection process (to the extent permitted by the Federal
Grant and Cooperative Agreement Act of 1977 and EPA Order
5700.1). The procedures should include a mechanism for sharing how
the results of relevancy reviews impacted award decisions.
3. Develop and implement procedures to improve communications with
EPA program offices regarding Science to Achieve Results research
results. The procedures should:
a. Ensure that the Science to Achieve Results grant public website
is up to date.
b. Revise the National Center for Environmental Research Project
Officer Manual (or develop a more dynamic tool) to reflect
expectations for communicating grant results.
c. Clarify and defined roles and responsibilities for communicating
research results.
4. Establish goals and objectives for the Science to Achieve Results
program.
5. Establish performance measures or a mechanism to capture and
report out on how completed Science to Achieve Results grants have
met their performance goals and provided incidental research support
to program offices.
06/30/17
06/30/17
09/30/17
03/31/17
09/30/17
No Intent to Underestimate Costs
Was Found, But Supporting
Documentation for EPA's Final Rule
Limiting Sulfur in Gasoline Was
Incomplete or Inaccurate in Several
Instances (16-P-0122)
03/29/16
OAR
1. Direct the Office of Transportation and Air Quality to develop a
process to provide an enhanced quality assurance review of regulatory
impact analysis documents, when the analysis used to support the
rulemaking is influential scientific information and/or cannot be made
public.
12/30/16
Drinking Water: EPA Needs to Take
Additional Steps to Ensure Small
Community Water Systems
Designated as Serious Violators
Achieve Compliance (16-P-0108)
03/22/16
Region 2
2. Include in Region 2 formal enforcement orders information about
how noncompliant systems can access compliance assistance
resources available through the coordinating committee established in
Recommendation 1, and request Puerto Rico Department of Health to
include this information in its formal enforcement orders.
03/31/17
OECA
5. Require regions to provide annual justification of the lack of formal
enforcement action when regional actions do not comply with the
Enforcement Response Policy requirement for formal enforcement
action or return to compliance at a priority system.
12/30/16
Positioning EPA for the Digital Age
Requires New Mindsets Toward
Printing (16-P-0107)
03/21/16
OARM
1. Update the EPA's main authoritative guidance for printing
operations (Printing Management Manual) to include authorization for
decentralized operations within the regions.
2. Issue guidance to EPA regions and program offices to reiterate role
and responsibilities to help reinforce the authority of the Agency
Printing Officer and to change behaviors. Guidance should specifically
include procedures to facilitate the most efficient and economical
methods for printing and inventory management.
09/30/17
09/30/17
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
EPA Has Not Met Statutory
Requirements for Hazardous Waste
Treatment, Storage and Disposal
Facility Inspectors, but Inspection
Rates Are High (16-P-0104)
03/11/16
OECA
1. Implement management controls to complete the required
Treatment, Storage and Disposal Facility inspections.
3/31/18
EPA Can Strengthen Its Reviews of
Small Particle Monitoring in Region
6 to Better Ensure Effectiveness of
Air Monitoring Network (16-P-0079)
12/17/15
OAR
Region 6
3. Develop a process for ensuring that state and local monitoring
agencies are provided with updated data analysis tools for future
network assessments.
5. Strengthen the network assessment review process to ensure the
assessments meet minimum EPA requirements and implement EPA
guidance.
03/31/18
03/31/17
Audit of EPA's Fiscal Year 2015 and
2014 Consolidated Financial
Statements (16-F-0040)
11/16/15
OCFO
1. Continue planned corrective actions and its outreach to program
offices to validate all software costs in development and asset
values in production.
2. Require staff to ensure all software costs, including adjustments,
are accurately recorded in the agency's property management
system and Compass; and that an audit trail is maintained for
software projects analyzed.
26. Implement an internal control process for transferring the
management of an application's user access to the Application
Management Staff.
27. Conduct an inventory of OCFO systems managed by the
Application Management Staff and create or update supporting access
management documentation for each application.
28. Work with the contracting officer to update applicable contract
clauses and distribute updated access management documentation to
contractors supporting the user account management function for
applications managed by the Application Management Staff. This
should include establishing a date when the contractors would start
using the updated account management documentation.
29. Review and update account management documentation and
establish procedures for financial systems, as needed, to include
implementation of the following controls:
a. Assign account managers for user accounts.
b. Establish role conditions for system access privileges.
c. Require approvals to create accounts.
d. Monitor use of accounts.
e. Notify account managers when accounts are removed or
changed.
f. Authorize access based on valid authorizations.
g. Review accounts for appropriateness of current access privileges.
09/30/18
10/30/18
12/31/17
12/31/17
03/31/18
12/31/17
EPA Needs Policies and
Procedures to Manage Public
Pesticide Petitions in a Transparent
and Efficient Manner (16-P-0019)
10/27/15
OCSPP
1. Develop policies and standard operating procedures to manage
public petitions received by Office of Pesticide Programs in a
transparent and efficient manner. These procedures should include
direct communication with petitioners by:
a. Providing a letter to the petitioner acknowledging receipt of the
petition.
b. Communicating petition decisions to the petitioner in writing.
c. Providing updates to petitioners about the status and progress of
pending petitions.
10/31/16
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
2. Train staff managing public pesticide petitions to adhere to the
EPA's Records Management Policy.
3. Develop and implement an effective petition tracking system for
public pesticide petitions.
4. Provide criteria and guidelines for submission of public pesticide
petitions that provide sufficient information for EPA review.
11/30/16
10/31/16
10/31/17
EPA Needs to Improve Security
Planning and Remediation of
Identified Weaknesses in Systems
Used to Protect Human Health and
the Environment (16-P-0006)
10/14/15
OEI
Direct the Senior Agency Information Security Officer to finalize efforts
to set Xacta standards and implement Xacta support to simplify most
users' tasks within the system.
12/31/16
EPA Should Collect Full Costs for
Its Interagency Agreements and
Report Full Costs for Great Lakes
Legacy Act (15-P-0300)
09/30/15
Region 5 &
OCFO
4. Direct the Great Lakes National Program Office to disclose in the
Great Lakes Legacy Act project agreements that EPA's direct labor
and indirect costs are not being included, with management's reason
for not including these costs. Document the final project costs,
including direct and indirect charges, in the closeout memo for each
project agreement.
01/31/17
Unused Earmark Funds for Water
Projects Totaling $6.2 Million Could
Be Put to Better Use (15-P-0299)
09/30/15
OW
1. Develop and communicate guidance to EPA regions aimed to further
reduce Special Appropriations Act Project grant unliquidated
obligations by clarifying:
a. The time period that is reasonable for a grant to have no financial
activity before taking steps to identify the grant as a no-progress
grant.
b. The guidelines that determine a grant is making reasonable or
sufficient progress.
3. Develop and implement a plan to expedite the reduction of
unobligated funds.
11/30/16
11/30/16
Incomplete Contractor Systems
Inventory and a Lack of Oversight
Limit EPA's Ability to Facilitate IT
Governance (15-P-0290)
09/21/15
OEI
5. Implement the recommendation of the EPA's Information Security
Task Force to manage the vulnerability management program.
09/30/17
Enhanced EPA Oversight and
Action Can Further Protect Water
Resources From the Potential
Impacts of Hydraulic Fracturing
(15-P-0204)
07/16/15
OW
1. Use authorities under the Safe Drinking Water Act to:
a. Determine whether the EPA, primacy states and tribes issue
permits for hydraulic fracturing using diesel fuels as required by
statute, the interpretive memorandum and permitting guidance.
b. Report the results of the determination to the public.
c. Submit an action plan outlining the steps (along with completion
dates) the agency will take if the determination reveals permitting
of hydraulic fracturing using diesel fuels is not occurring in
accordance with statute, the interpretive memorandum and
permitting guidance.
12/31/16
03/30/17
03/30/17
EPA Does Not Effectively Control or
Monitor Imports of Hazardous
Waste (15-P-0172)
07/06/15
OLEM
3. Work with U.S. Customs and Border Protection to use the
International Trade Data System for hazardous waste imports to
enhance domestic compliance monitoring.
12/31/16
Walker River Paiute Tribe Needs to
Improve Its Internal Controls to
Comply With Federal Regulations
(15-2-0165)
06/11/15
Region 9
5. Require the Walker River Paiute Tribe to establish internal controls
to ensure compliance with federal regulations and tribal polices.
12/31/16
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Semiannual Report to Congress
April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
EPA's Oversight of State Pesticide
Inspections Needs Improvement to
Ensure Safeguard for Workers,
Public and Environment Are
Enforced (15-P-0156)
5/15/15
OECA
1. In conjunction with the Office of Chemical Safety and Pollution
Prevention, revise the Federal Insecticide, Fungicide and Rodenticide
Act Project Officer Manual to include specific guidance for:
a. Reporting, documenting and retaining records from project officer
inspection reviews.
b. Providing documentation on how a state's enforcement actions
are consistent with the state's enforcement policies and
procedures.
c. Selecting inspection files for review.
d. Documenting closeout meeting with states.
2. Ensure that required FIFRA project officer training is conducted
periodically and the above guidance is included in the training.
06/30/17
12/30/18
Conditions in the U.S. Virgin Islands
Warrant EPA Withdrawing Approval
and Taking Over Management of
Some Environmental Programs and
Improving Oversight of Others
(15-P-0137)
4/17/15
Region 2
13. To improve oversight of the Underground Storage Tank/Leaking
Underground Storage Tank program, establish an updated
Underground Storage Tank/Leaking Underground Storage Tank
Memorandum of Agreement with the U.S. Virgin Islands that reflect
changes and new provisions results from the Energy Policy Act of
2005. The Memorandum of Agreement should also outline roles,
responsibilities and expectations.
18. Develop a plan to address currently uncompleted tasks and
activities, and develop a schedule for reprogramming grant funds to
accomplish these task if U.S. Virgin Islands does not or cannot
complete them. Upon completion of the financial management
corrective actions, follow the OCFO's Resource Management Directive
System 2520-03 to determine whether any of the current unspent
funds of approximately $37 million under the U.S. Virgin Islands
assistance agreements could be put to better use.
09/30/18
09/30/18
Audit of EPA's Fiscal Years 2014
and 2013 (Restated) Consolidated
Financial Statements (15-1-0021)
11/17/14
OCFO
2. Require the Reporting and Analysis Staff to coordinate with OARM
project officers to receive software project cost support once placed
into service.
3. Document and support project costs for all software costs placed
into service over the past 7 years.
10/31/18
10/31/18
Enhanced EPA Oversight Needed
to Address Risks From Declining
Clean Air Act Title V Revenues
(15-P-0006)
10/20/14
OAR
1. Assess whether the EPA's 1993 fee schedule guidance sufficiently
addresses current program issues and requirements related to how
Title V fees should be collected, retained, allocated and used. Revise
the fee guidance as necessary and re-issue to EPA regions.
2. Issue guidance requiring EPA regions to periodically obtain and
assess authorized state and local permitting authorities' Title V
program revenues, expenses and accounting practices to ensure that
permitting authorities collect sufficient Title V revenues to cover Title V
program costs.
3. Establish a fee oversight strategy, including a hierarchy of actions
and related timeframes, to ensure that EPA regions take consistent
and timely actions to identify and address violations of 40 CFR Part 70
Title V fee revenues, expenses and accounting practices.
5. Require that EPA regions periodically emphasize and include
reviews of Title V fee revenue and accounting practices in Title V
program evaluations.
09/30/17
09/30/17
09/30/17
09/30/17
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April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
6. Require that EPA regions address shortfalls in the financial or
accounting expertise among regional Title V program staff as the
regions update their workforce plans. This may include resource
sharing and collaboration with other EPA regions, or use of outside
organizations, as appropriate.
09/30/17
7. Require that EPA regions re-assess permitting authority fee
structures when revenue sufficiency issues are identified during
program evaluations, and require fee demonstrations as necessary.
09/30/17
8. Require that EPA regions take action on permitting authorities not in
compliance with 40 CFR Part 70 by finding them to be inadequately
administered or enforced, and issuing the required Notice of
Deficiencies.
09/30/17
EPA Region 6 Mismanaged Coastal
Wetlands Planning, Protection and
Restoration Act Funds (15-P-0003)
10/09/14
Region 6
1. Reimburse the Task Force (through the U.S. Army Corp of
Engineers) questioned costs of $780,793, unless Region 6 Water
Quality Protection Division management provides sufficient and
appropriate documentation to demonstrate that questioned costs paid
with the Coastal Wetlands Planning, Protection and Restoration Act
funds were incurred in accordance with the Coastal Wetlands
Planning, Protection and Restoration Act, appropriations law and
principles, and interagency agreements.
2. Direct the Region 6 Assistant Regional Administrator to work with
the OCFO to perform an internal review of the Water Quality Protection
Division's Coastal Wetlands Planning, Protection and Restoration Act
spending at the end of FY 2014 to identify improper expenditures that
occurred in 2008 and 2009, as well as from July 1,2013, through
September 30, 2014. Reimburse the Task Force (through the U.S.
Army Corp of Engineers) any questioned costs identified during this
review.
3. Identify and address any Antideficiency Act violations resulting from
questioned costs identified in this report or found by the Region 6
Assistant Regional Administrator's review, and report any violations in
accordance with the Antideficiency Act and EPA Directive 2520.
5. Take administrative disciplinary actions, in accordance with EPA
Directive 2520, against EPA employees responsible for purpose
violations or Antideficiency Act violations related to improper Coastal
Wetlands Planning, Protection and Restoration Act spending.
12/31/16
12/31/16
12/31/16
12/31/16
Cloud Oversight Resulted in
Unsubstantiated and Missed
Opportunities for Savings, Unused
and Undelivered Services, and
Incomplete Policies (14-P-0332)
08/15/14
OEI
4. Prior to entering into any future Infrastructure-as-a-Service
contracts, perform a formal documented analysis to determine whether
such contracts are in the EPA's best interest that includes the
investments the EPA would have to make to address integration
requirements, obstacles and gaps identified as a result of the current
I nfrastructure-as-a-Service contract.
10/16/17
Impact of EPA's Conventional
Reduced Risk Pesticide Program Is
Declining (14-P-0322)
07/24/14
OCSPP
1: Reduce participation barriers for the Conventional Reduced Risk
Pesticide Program by seeking statutory authority from Congress to
reduce application fees for approved Conventional Reduced Risk
Pesticide registrations.
09/30/17
EPA Has Not Implemented
Adequate Management Procedures
to Address Potential Fraudulent
Environmental Data (14-P-0270)
05/29/14
OEI
2: Include in the revised Chief Information Officer Procedure 2106
specific due diligence steps for laboratory fraud that provide procedural
details on communication and coordination efforts between program
and enforcement staff, review and analysis of data for any impacts to
human health and the environment, communication of any impact
information to data users, and amendment of past environmental
decisions impacted by fraudulent data.
12/31/16
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April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
3: Provide training on the "Notification Process" and the revised Chief
Information Officer Procedure 2106 to the EPA staff working with
laboratory data.
03/31/17
EPA Needs to Improve
Management of the Cross-Media
Electronic Reporting Regulation
Program in Order to Strengthen
Protection of Human Health and the
Environment (14-P-0143)
03/21/14
OEI
1. Update written Cross-Media Electronic Reporting Regulation
Program (CROMERR) business practices and remove references to
the Exchange Network Policy and Planning Workgroup and Quality
Information Counsel-Exchange Network Subcommittee since they no
longer participate in the CROMERR program. Those written practices
should include:
a. EPA Procedure for Approval of State, Tribal, or Local
Government Authorized or Delegated Program Applications for
Implementing CROMERR;
b. EPA Procedure for Implementation of CROMERR for EPA
Systems;
c. Technical Review Committee Charter; and
d. CROMERR authorized program review for approval flowchart.
03/31/17
EPA's Information Systems and
Data Are at Risk Due to Insufficient
Training of Personnel with
Significant Information Security
Responsibilities (14-P-0142)
03/21/14
OEI
1. Define key information security aspects and duties for each security
role. This includes identifying, where appropriate, broadly similar
characteristics within each role to allow for more precise alignment of
roles to applicable training requirements. This also includes ensuring
that existing EPA policies, procedures, and guidance fully and
consistently define all information security roles and responsibilities
currently implemented across the organization.
2. Provide additional training options specific to the federal information
security environment and EPA information security roles, such as the
processes and controls outlined in National Institute of Standards and
Technology Special Publication 800-53. Training should be specific to
supporting EPA professionals in executing and performing assigned
information security roles and responsibilities in accordance with EPA
policies and procedures. For example, vendor training may be
warranted for hands-on information security roles, but general
orientation training may be suitable for executives.
12/31/16
12/31/16
Internal Controls Needed to Control
Costs of Emergency and Rapid
Response Service Contracts, as
Exemplified in Region 6 (14-P-0109)
02/04/14
Region 6
3. Direct Contracting Officers to require that the contractor adjust all its
billings to reflect the application of the correct rate to team subcontract
other direct costs.
09/30/24
Audit of EPA's Fiscal 2013 and
2012 Consolidated Financial
Statements (14-1-0039)
12/16/13
OEI
12. Conduct training for staff in charge of receiving and analyzing
monthly vulnerability management reports to ensure they are
knowledgeable of the agency's remediation process for vulnerabilities.
This training should include specific information on how to review the
provided vulnerability management report and what actions offices
must take regarding the identified vulnerabilities.
09/30/17
Air Quality Objectives for the Baton
Rouge Ozone Nonattainment Area
Not Met Under EPA Agreement
2A-96694301 Awarded to the
Railroad Research Foundation
(13-R-0297)
06/20/13
Region 6
1. Recover federal funds of $2,904,578 unless the foundation provides
a verifiable and enforceable remedy to reduce diesel emissions in the
Baton Rouge ozone nonattainment area, as required by the
cooperative agreement.
CA2: Two of the five rebuilt locomotives will continue to operate in
the Baton Rouge nonattainment area.
CA3: The remaining three rebuilt locomotives will continue to
operate between Baton Rouge and New Orleans until economic
conditions in Baton Rouge necessitate moving as many
locomotives as possible back to the Baton Rouge nonattainment
area.
9/30/20
9/30/20
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April 1, 2016—September 30, 2016
Report Title/No.
Report
Date
Office
Unimplemented Recommendation
Planned
Completion
Date
CA5: Railroad Research Foundation will provide locomotive
location data to EPA on a quarterly basis showing where the five
locomotives were operated.
09/30/20
CA6: As a penalty for noncompliance, Railroad Research
Foundation will remit to the U.S. EPA $4,841 for each locomotive
for each month any of the five locomotives are operated outside of
the restricted area for more than 10-plus consecutive days, outside
the Baton Rouge nonattainment area and the Exception area (for
other than maintenance).
09/30/20
CA7: Each of the five locomotives will operate in Baton Rouge area
or the Exception area for 10 years after the date each engine was
placed back into service.
09/30/20
EPA is Not Recovering All Its Costs
of the Lead Based Paint Fees
Program (13-P-0163)
02/20/13
OCSPP
1. Update the March 20,2009, fees rule to reflect the amount of fees
necessary for the program to recover the costs of implementing and
enforcing the program.
1/31/17
EPA Should Update Its Fees Rule to
Recover More Motor Vehicle and
Engine Compliance Program Costs
(11-P-0701)
09/23/11
OAR
1. Update the 2004 fees rule to increase the amount of the Motor
Vehicle and Engine Compliance Program costs it can recover.
12/31/18
EPA Should Revise Outdated or
Inconsistent EPA-State Clean Water
Act Memoranda of Agreement
(10-P-0224)
09/14/10
OW&
OECA
2-2. Develop a systematic approach to identify which states have
outdated or inconsistent memoranda of agreement; renegotiate and
update those memoranda of agreement using the memorandum of
agreement template; and secure the active involvement and final,
documented concurrence of headquarters to ensure national
consistency.
09/30/17
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CSB Reports With Unimplemented Recommendations With Future Dates
Report Title/No.
Report
Date
Unimplemented Recommendation
Planned
Completion
Date
U.S Chemical Safety and Hazard
Investigation Board Needs to Complete More
Timely Investigations (13-P-0337)
07/30/13
4. Develop and implement a succession or retention policy to help with any future
effects of the turnover rate on CSB's mission.
12/31/16
U.S. Chemical Safety and Hazard
Investigation Board Did Not Take Effective
Corrective Actions on Prior Audit
Recommendations (11-P-0115)
02/15/11
3. Follow up with Congress on the CSB request for clarification of its statutory
mandate. Upon receipt of the response, develop a plan to describe and address
the investigative gap, address prior audit recommendations and request the
necessary resources to meet CSB's statutory mandate.
12/31/16
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April 1, 2016—September 30, 2016
Appendix 4—Peer Reviews Conducted
Audits/Evaluations
The Social Security Administration OIG completed an external peer review of the EPA OIG audit
organization (which includes the EPA OIG's Office of Audit and Office of Program Evaluation)
covering the fiscal year ended September 30, 2014, and issued its report on June 12, 2015. The
review was conducted in accordance with guidelines established by the Council of the Inspectors
General on Integrity and Efficiency. The external peer review of the EPA OIG audit organization
stated that the EPA OIG audit organization's system of quality control was suitably designed and
complied with to provide the EPA OIG with reasonable assurance of performing and reporting in
conformity with applicable professional standards in all material respects, and the EPA OIG
received a rating of pass.
Investigations
The Federal Deposit Insurance Corporation OIG completed a mandated Council of the Inspectors
General on Integrity and Efficiency quality assurance review of the EPA OIG Office of
Investigations and issued its report on December 2, 2014. The Federal Deposit Insurance
Corporation OIG identified no deficiencies and found internal safeguards and management
procedures compliant with quality standards.
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April 1, 2016—September 30, 2016
Appendix 5—OIG Mailing Addresses and Telephone Numbers
Headquarters
U.S. Environmental Protection Agency
Office of Inspector General
1200 Pennsylvania Ave., NW (2410T)
Washington, DC 20460
(202) 566-0847
Atlanta
U.S. Environmental Protection Agency
Office of Inspector General
61 Forsyth Street, SW
Atlanta, GA 30303
Audit/Evaluation: (404) 562-9830
Investigations: (404) 562-9857
Boston
U.S. Environmental Protection Agency
Office of Inspector General
5 Post Office Square, Suite 100 (OIG15-1)
Boston, MA 02109-3912
Audit/Evaluation: (617) 918-1470
Investigations: (617) 918-1466
Chicago
U.S. Environmental Protection Agency
Office of Inspector General
77 West Jackson Boulevard
13th Floor (IA-13J)
Chicago, IL 60604
Audit/Evaluation: (312) 353-2486
Investigations: (312) 353-2507
Cincinnati
U.S. Environmental Protection Agency
Office of Inspector General
26 West Martin Luther King Drive
Cincinnati, OH 45268-7001
Audit/Evaluation: (513) 487-2363
Investigations: (312) 353-2507
Offices
Dallas
U.S. Environmental Protection Agency
Office of Inspector General (60IG)
1445 Ross Avenue, Suite 1200
Dallas, TX 75202-2733
Audit/Evaluation: (214) 665-6621
Investigations: (214) 665-2249
Denver
U.S. Environmental Protection Agency
Office of Inspector General
1595 Wynkoop Street, 4th Floor
Denver, CO 80202
Audit/Evaluation: (303) 312-6969
Investigations: (303) 312-6868
Kansas City
U.S. Environmental Protection Agency
Office of Inspector General
11201 Renner Boulevard
Lenexa, KS 66219
Audit/Evaluation: (913) 551-7878
Investigations: (312) 353-2507
New York
U.S. Environmental Protection Agency
Office of Inspector General
290 Broadway, Room 1520
New York, NY 10007
Audit/Evaluation: (212) 637-3049
Investigations: (212) 637-3041
Philadelphia
U.S. Environmental Protection Agency
Office of Inspector General
1650 Arch Street, 3rd Floor
Philadelphia, PA 19103-2029
Audit/Evaluation: (215) 814-5800
Investigations: (215) 814-2359
Research Triangle Park
U.S. Environmental Protection Agency
Office of Inspector General
Mail Drop N283-01
Research Triangle Park, NC 27711
Audit/Evaluation: (919) 541-2204
Investigations: (919) 541-1027
San Francisco
U.S. Environmental Protection Agency
Office of Inspector General
75 Hawthorne Street (IGA-1-2)
8th Floor
San Francisco, CA 94105
Audit/Evaluation: (415) 947-4527
Investigations: (415) 947-8711
Seattle
U.S. Environmental Protection Agency
Office of Inspector General
Mail Code OIG-173
1200 Sixth Avenue, Suite 900
Seattle, WA 98101
Audit/Evaluation: (206) 553-6906
Investigations: (206) 553-1273
Winchester
U.S. Environmental Protection Agency
Office of Inspector General
200 S. Jefferson Street, Room 314
P.O. Box 497
Winchester, TN 37398
Investigations: (423) 240-7735
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