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U.S. Environmental Protection Agency	Report No 14-P-0037
£	T>	December 11, 2013

\.o At a Glance
Why We Did This Review
John C. Beale, a former Senior
Policy Advisor within the
U.S. Environmental Protection
Agency (EPA) Office of Air and
Radiation, committed fraud
against the EPA The EPA
Office of Inspector General
(OIG) concluded it would need
to determine conditions that
may have allowed Mr. Beale's
actions to take place.
On August 27, 2013, the
Ranking Member of the Senate
Committee on Environment and
Public Works requested that
the EPA OIG initiate work to
determine "the agency's
policies and processes that
facilitated Mr. Beale's fraud."
This report addresses the
following EPA theme:
• 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.qov/oiq/reports/2014/
20131211-14-P-0037.pdf
Early Warning Report: Internal Controls and
Management Actions Concerning John C. Beale's
Travel
to $45,094 in fraudulent
travel expenses, and
additional expenses are
questionable.
What We Found
The EPA's lack of management oversight and weak jQhn C. Beale admitted
internal controls that the EPA had in place enabled
Beale's travel abuse. Beale's travel abuse included:
•	Using premium class travel.
•	Incurring expenses above per diem amounts.
•	Charging questionable travel and transportation costs.
EPA's management actions while Beale was working at the EPA that contributed
to Beale's fraudulent travel were:
•	Limited review of vouchers or receipts.
•	Dismissed questions raised about Beale's travel.
•	Expenses not questioned because Beale's reviewing official was also a
Deputy Assistant Administrator (a peer to Beale).
•	Concern that Beale's "behavior and travel expenses" were supported by
another senior executive."
Management Actions Taken
The EPA Office of the Chief Financial Officer identified internal control
improvements made or that will be made to prevent or detect travel-related
issues, including:
•	Since 2012, vouchers for other than coach travel must include an
approved waiver supporting premium class travel, and 100 percent review
of all vouchers before payment.
•	Effective November 15, 2013, eligibility regarding medical documentation
supporting premium class travel waivers are to be made by EPA's Office of
Reasonable Accommodation.
•	Starting in the second quarter of fiscal year 2014, second line supervisors
are to approve lodging amounts that exceed a designated percentage over
per diem and require Senior Resource Official approval of any single trip
exceeding $5,000.
•	By February 2014, internal control assessments are to be completed for
travel in the areas of premium class travel, above government rate travel
reimbursement and executive travel approvals.
The OIG has not verified the implementation and adequacy of the agency's
identified improvements.

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