September 22, 2016
*	• U.S. Environmental Protection Agency	16-F-0323
w "z Office of Inspector General
® I
At a Glance
Why We Did This Review
The Pesticide Registration
Improvement Act (PRIA)
requires that we perform an
annual audit of the Pesticide
Registration Fund (known as
the PRIA Fund) financial
statements.
To expedite the registration
of certain pesticides,
Congress authorized the
U.S. Environmental Protection
Agency (EPA) to assess and
collect pesticide registration
fees. The fees collected are
deposited into the PRIA Fund.
The agency is required to
prepare financial statements
that present financial
information about the PRIA
Fund. PRIA also requires the
establishment of decision time
review periods for pesticide
registration actions, and
requires the Office of Inspector
General to perform an analysis
of the agency's compliance
with those review periods.
This report addresses the
following EPA goal or
cross-agency strategy:
• Embracing EPA as a high-
performing organization.
Send all inquiries to our public
affairs office at (202) 566-2391 or
visit www.epa.gov/oiq.
Fiscal Years 2014 and 2013 Financial
Statements for the Pesticide Registration Fund
Disclaimer of Opinion
We rendered a disclaimer of opinion on the
PRIA Fund financial statements for fiscal year
(FY) 2014, meaning that we were unable to
obtain sufficient evidence to determine if they
were fairly presented and free of material
misstatement. We had previously rendered an
unmodified, or clean, opinion on the EPA's
PRIA Fund financial statements for FY 2013,
meaning they were fairly presented and free of
material misstatement.
Due to the material
weakness in internal
controls noted, the agency
cannot provide reasonable
assurance that financial data
provided for the PRIA Fund
for FY 2014 accurately
reflect the agency's financial
activities and balances.
Internal Control Material Weakness Noted
We noted a material weakness in that the EPA cannot adequately support
$28 million of its FY 2014 PRIA Fund costs. The EPA's Office of Pesticide
Programs receives its funding from both fees paid by pesticide manufacturers
and amounts appropriated by the Congress. In FY 2014, the EPA allocated its
pesticide funding to use appropriated amounts, which would expire, and retained
funding received from fees. Therefore, significant payroll amounts paid from
appropriations were not charged directly to the PRIA Fund or other pesticide
programs. This resulted in the loss of the audit trail for reporting separate costs
and liabilities for the PRIA Fund and other pesticide programs.
Compliance With Applicable Laws and Regulations
We did not identify any instances of noncompliance that would result in a
material misstatement to the audited financial statements. For compliance with
decision time review periods, the agency was in substantial compliance with the
statutory decision time frames.
Agency Comments and Office of Inspector General Evaluation
The agency agreed with our finding and believes that the PeoplePlus payroll cost
allocation enhancement will allow forthe creation of an audit trail to capture
costs incurred by the PRIA Fund and by other appropriations that support
PRIA-related activities. The agency plans to go live with this new enhancement
by October 2017.
Listing of OIG reports.

-------