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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
14-P-0317
July 15, 2014
Why We Did This Review
The U.S. Environmental
Protection Agency (EPA),
Office of Inspector General
(OIG), conducted this audit to
answer the following questions:
•	Does the EPA ensure that
grantees are effectively
administering Puget Sound
grants throughout the life of
the grants?
•	Does the EPA monitor
project progress and
collect data or indicators to
determine whether proposed
project outputs and
outcomes are achieved?
The Greater Puget Sound Basin
is defined as all watersheds
draining into the United States
waters of Puget Sound,
including the southern Georgia
Basin and the Strait of Juan de
Fuca. The Puget Sound is one
of the most ecologically diverse
ecosystems in North America.
This report addresses the
following EPA goals or
cross-agency strategies:
•	Protecting America's waters.
•	Embracing EPA as a
high-performing organization.
For further information,
contact our public affairs office
at (202) 566-2391.
The full report is at:
www.epa.aov/oia/reports/2014/
20140715-14-P-0317.pdf
EPA Should Improve Oversight and Assure
the Environmental Results of Puget Sound
Cooperative Agreements
What We Found
Overall, the OIG found that EPA Region 10 is effectively
administering cooperative agreements and monitoring
project progress to determine whether proposed outputs
and outcomes were achieved. However, we noted that
improvements should be made in both the administration
and monitoring of recipient activities. We found that
Region 10:
EPA should
improve the
administration and
monitoring of Puget
Sound cooperative
agreements.
Documented activities conducted but did not consistently ensure that Puget
Sound cooperative agreements met administrative requirements.
Was aware of subaward monitoring activities conducted by recipients, but
should improve oversight of subaward monitoring policies and activities,
and lead organization oversight of subawards.
Recommendations and Planned Corrective Actions
We recommend that the Region 10 Administrator meet with project officers and
grant specialists to discuss the results of this review and reinforce compliance with
agency policies for documenting, following up and resolving oversight activities.
We recommend that the Region 10 Administrator ensure that grant specialists and
project officers receive training on their responsibilities for subawards, collaborate
to periodically review subaward monitoring policies, and lead organizations'
monitoring activity records to protect federal funds. We also recommend that
Region 10 provide training to recipients regarding subaward monitoring
responsibilities, as well as evaluating Puget Sound resource allocations.
In addition, we recommend that the Assistant Administrator for the Office of
Administration and Resources Management (OARM) review existing grants
policies to determine whether policies need to be updated to clarify project officer
and grant specialist subaward responsibilities, and recipient responsibilities for
subaward monitoring.
The EPA agreed with all of the recommendations and provided corrective action
plans and completion dates to address all of the draft report's recommendations.
Noteworthy Achievements
Region 10 developed the Financial and Ecosystem Accounting Tracking System
report for the Puget Sound program. The reports enable project officers to more
easily determine the status of outputs and deliverables for tasks and subtasks, as
well as determine actions taken by the recipients. The reports also help to ensure
that negotiated work plan tasks are being accomplished and funds are being spent
in a timely manner and within the approved budget.

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