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U.S. ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF INSPECTOR GENERAL
Financial Management
Fiscal Years 2015 and 2014
Financial Statements for the
Pesticides Reregistration
and Expedited Processing
Fund
Report No. 17-F-0314
July 10, 2017


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Report Contributors:	Paul Curtis
Wanda Arlington
Safiya Chambers
Robert Hairston
Sheree James
Ethel Lowery
Sheila May
Claire McWilliams
Demetrios Papakonstantinou
Cynthia Poteat
Bill Samuel
Lynda Taylor
Abbreviations
EPA	U.S. Environmental Protection Agency
FIFRA	Federal Insecticide, Fungicide, and Rodenticide Act
FMFIA	Federal Managers' Financial Integrity Act
FY	Fiscal Year
OIG	Office of Inspector General
OMB	Office of Management and Budget
U.S.C.	United States Code
Cover photo: Pesticides being applied. (EPA photo)
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*. U.S. Environmental Protection Agency	17-F-0314

Office of Inspector General
July 10, 2017
At a Glance
Why We Did This Review
The Food Quality Protection
Act requires that we perform an
annual audit of the financial
statements for the Pesticides
Reregistration and Expedited
Processing Fund, known as the
FIFRA (Federal Insecticide,
Fungicide, and Rodenticide
Act) Fund.
The U.S. Environmental
Protection Agency (EPA) is
responsible for reassessing the
safety of older pesticide
registrations against modern
health and environmental
testing standards. To expedite
this reregistration process,
Congress authorized the EPA
to collect fees from pesticide
manufacturers. The fees are
deposited into the FIFRA Fund.
Each year, the agency
prepares financial statements
that present financial
information about the fund,
along with information about
the EPA's progress in
reregistering pesticides.
This report addresses the
following EPA goal or
cross-agency strategy:
• Embracing EPA as a high-
performing organization.
Fiscal Years 2015 and 2014 Financial
Statements for the Pesticides Reregistration
and Expedited Processing Fund
Disclaimer of Opinion
We rendered a disclaimer of opinion on
the FIFRA Fund financial statements for
fiscal years (FYs) 2015 and 2014,
meaning that we were unable to obtain
sufficient evidence to determine if 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 FIFRA Fund
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 its
FY 2015 FIFRA Fund costs. The EPA's Office of Pesticide Programs receives its
funding from both fees paid by pesticide manufacturers and amounts
appropriated by Congress. In FY 2015, 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 FIFRA Fund or other pesticide programs. This resulted
in the loss of the audit trail for reporting separate costs and liabilities for the
FIFRA Fund and other pesticide programs.
The EPA has taken corrective actions based on what we found during our prior
FIFRA Fund financial statements audit report; accordingly, we are making
no additional recommendations. In October 2016, the agency implemented a new
enhancement for transactions that will commence in FY 2017. However, this
does not impact or correct the material weakness for the FY 2015 statements,
nor the disclaimer of opinion.
Compliance With Applicable Laws and Regulations
We did not identify any noncompliance that would result in a material
misstatement to the audited financial statements.
Send all inquiries to our public
affairs office at (202) 566-2391 or
visit www.epa.gov/oiq.
Listing of OIG reports.

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
July 10,2017
MEMORANDUM
SUBJECT: Fiscal Years 2015 and 2014 Financial Statements for the
Pesticides Reregi strati on and Expedited Processing Fund
Report No. 17-F-0314
FROM: Paul C. Curtis, Director
Financial Statement Audits

TO:
Wendy Cleland-Hamnett, Acting Assistant Administrator
Office of Chemical Safety and Pollution Prevention
David Bloom, Acting Chief Financial Officer
This is our report on the audit of the U.S. Environmental Protection Agency's (EPA's) fiscal years 2015
and 2014 financial statements for the Pesticides Reregi strati on and Expedited Processing Fund,
conducted by the EPA Office of Inspector General (OIG). The project number for this audit was
OA-FY16-0080. This report contains findings that describe the problems the OIG has identified and
corrective actions the OIG recommends. This report represents the opinion of the OIG and does not
necessarily represent the final EPA position.
The offices with primary jurisdiction over the issues discussed in this report are the Office of Pesticide
Programs within the Office of Chemical Safety and Pollution Prevention, and the Office of the
Controller within the Office of the Chief Financial Officer.
Action Required
Because this report contains no recommendations, you are not required to respond to this report.
However, if you submit a response, it will be posted on the OIG's public website, along with our
memorandum commenting on your response. Your response should be provided as an Adobe PDF file
that complies with the accessibility requirements of Section 508 of the Rehabilitation Act of 1973, as
amended. The final response should not contain data that you do not want to be released to the public;
if your response contains such data, you should identify the data for redaction or removal along with
corresponding justification.
We will post this report to our website at www.epa.gov/oig.

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Fiscal Years 2015 and 2014 Financial Statements for the
Pesticides Reregistration and Expedited Processing Fund
17-F-0314
Table of C
Inspector General's Report on the Fiscal Years 2015 and 2014
Financial Statements for the Pesticides Reregistration and
Expedited Processing Fund
Report on the Financial Statements		1
Report on Internal Control Over Financial Reporting		2
Tests of Compliance With Laws, Regulations, Contracts and Grant Agreements		4
Management's Discussion and Analysis Section of the Financial Statements		4
Prior Audit Coverage		4
Agency Comments		5
Attachment
Material Weakness		6
1 - EPA Cannot Adequately Support FIFRA Fund Costs		7
Appendices
A Fiscal Years 2015 and 2014 Pesticides Reregistration and
Expedited Processing Fund Financial Statements
B Distribution

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Inspector General's Report on the
Fiscal Years 2015 and 2014 Financial Statements
for the Pesticides Reregistration and
Expedited Processing Fund
The Administrator
U.S. Environmental Protection Agency
Report on the Financial Statements
We have audited the accompanying financial statements of the Pesticides
Reregistration and Expedited Processing Fund, known as the FIFRA (Federal
Insecticide, Fungicide, and Rodenticide Act) Fund, which comprise the balance
sheet as of September 30, 2015, and September 30, 2014, and the related statements
of net cost, changes in net position, and statement of budgetary resources for the
years then ended; and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted
in the United States of America. This includes the design, implementation and
maintenance of internal controls relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on
conducting the audit in accordance with generally accepted government auditing
standards; the standards applicable to financial statements contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and
Office of Management and Budget (OMB) Bulletin 15-02, Audit Requirements for
Federal Financial Statements. Because of the matter described in the Basis for
Disclaimer of Opinion section, however, we were not able to obtain sufficient,
appropriate audit evidence to provide a basis for an audit opinion.
Basis for Disclaimer of Opinion
The U.S. Environmental Protection Agency (EPA) cannot adequately support
payroll liabilities on the FIFRA Fund's Balance Sheet as of September 30, 2015
and 2014; and Income/Expense from other appropriations on the statements of the
FIFRA Fund's Net Costs and Changes in Net Position for the years ended
September 30, 2015 and 2014.
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In fiscal years (FY) 2015 and 2014, the EPA allocated its pesticides appropriated
funding to pay for payroll costs. By paying significant payroll amounts from
appropriations versus from fees collected by the FIFRA Fund, the EPA lost the
audit trail to properly support how much of the FIFRA payroll expenses were paid
for by appropriations. We were unable to satisfy ourselves by other audit
procedures concerning the adequacy of the amounts allocated, consistency of
application, or reasonableness of the payroll expenses between the FIFRA Fund
and the EPA's other pesticide programs, including payroll accruals, as of and for
the years ended September 30, 2015 and 2014. As a result, we were unable to
determine whether any adjustments were necessary relating to payroll and related
accounts, income/expense from other appropriations, and payroll liabilities.
Disclaimer of Opinion
Because of the significance of the matter described in the Basis for Disclaimer of
Opinion section above, we have not been able to obtain sufficient, appropriate
audit evidence to provide a basis for an audit opinion. Accordingly, we do not
express an opinion on the FIFRA Fund's financial statements, and the related
accompanying notes as of and for the years ended September 30, 2015 and 2014.
Report on Internal Control Over Financial Reporting
Opinion on Internal Control. In planning and performing our audit, we
considered the EPA's internal control over financial reporting by obtaining an
understanding of the agency's internal control, determining whether internal
control had been placed in operation, assessing control risk, and performing tests
of controls. We did this as a basis for designing our auditing procedures for the
purpose of expressing an opinion on the financial statements and to comply with
OMB audit guidance, not to express an opinion on internal control. Accordingly,
we do not express an opinion on internal control over financial reporting nor on
management's assertion on internal control included in Management's Discussion
and Analysis. We limited our internal control testing to those controls necessary
to achieve the objectives described in OMB Bulletin No. 15-02, Audit
Requirements for Federal Financial Statements. We did not test all internal
control relevant to operating objectives as broadly defined by the Federal
Managers' Financial Integrity Act of 1982 (FMFIA).
Material Weakness and Significant Deficiencies. Our consideration of the
internal control over financial reporting would not necessarily disclose all matters
in the internal control over financial reporting that might be significant
deficiencies. A deficiency in internal control exists when the design or operation
of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control, such that there is a reasonable
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possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected in a timely basis. A significant
deficiency is a deficiency, or combination of deficiencies, in internal control that
is less severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Because of inherent limitations in internal control, misstatements, losses or
noncompliance may nevertheless occur and not be detected. We noted a certain
matter discussed below and detailed in Attachment 1 and Prior Audit Coverage,
involving the internal control and its operation that we consider to be material.
Material Weakness
The EPA cannot adequately support its FY 2015 FIFRA Fund costs. OMB policy
states that basic financial statements include a Balance Sheet and Statement of Net
Costs, and that the statement of net costs should include the net costs of operations.
The EPA's Office of Pesticide Programs receives its funding both from fees paid by
pesticide manufacturers and from amounts appropriated by Congress. In FY 2015,
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 FIFRA Fund or
other pesticide programs. This resulted in the loss of the audit trail for reporting
separate costs and liabilities for the FIFRA Fund and other pesticide programs. The
EPA developed an allocation methodology to distribute costs funded by EPA
appropriations back to the FIFRA Fund, but the methodology is based upon
inconsistent charging of payroll costs between the FIFRA Fund and EPA
appropriations.
Because the EPA cannot adequately support total FY 2015 FIFRA Fund costs and
liabilities, and because we were unable to determine by other audit procedures the
adequacy of amounts allocated, consistency of application, or reasonableness of net
costs and liabilities, we disclaimed an opinion on the FIFRA Fund's FY 2015
financial statements. We consider the EPA's inability to support the FIFRA Fund
payroll costs a material weakness.
Comparison of EPA's FMFIA Report With Our Evaluation of
Internal Controls
OMB Bulletin No. 15-02, Audit Requirements for Federal Financial Statements,
requires the OIG to compare material weaknesses disclosed during the audit with
those material weaknesses reported in the agency's FMFIA report that relate to
the financial statements, and identify material weaknesses disclosed by the audit
that were not reported in the agency's FMFIA report. The agency's FMFIA report
is prepared and submitted at the consolidated level, of which the FIFRA Fund is a
component.
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The agency did not report any material weaknesses at the consolidated level for
FY 2015 that would impact the FIFRA Fund.
Tests of Compliance With Laws, Regulations, Contracts and
Grant Agreements
The EPA management is responsible for complying with laws, regulations,
contracts and grant agreements applicable to the agency. As part of obtaining a
reasonable assurance as to whether the agency's financial statements are free of
material misstatement, we performed tests of its compliance with certain
provisions of laws, including those governing the use of budgetary authority,
regulations, contracts and grant agreements that have a direct effect on the
determination of material amounts and disclosures in the FIFRA Fund financial
statements. The objective of our audit, including our tests of compliance with
applicable laws, regulations, contracts, and grant agreements, was not to provide
an opinion on compliance with such provisions. Accordingly, we do not express
such an opinion. We did not identify any noncompliance that would result in a
material misstatement to the audited financial statements.
Management's Discussion and Analysis Section of the
Financial Statements
Our audit work related to the information presented in the Management's
Discussion and Analysis of the pesticide program included comparing the
overview information with information in the EPA's principal financial
statements for consistency. We did not identify any material inconsistencies
between the information presented in the two documents.
Prior Audit Coverage
During our previous audit of the FIFRA financial statements—Fiscal Years 2014
and 2013 Financial Statements for the Pesticides Reregistration and Expedited
Processing Fund (Report No. 16-F-0322). issued September 22, 2016—we
reported a material weakness regarding inadequate support of costs. Specifically,
the EPA could not adequately support $34 million of its FY 2014 FIFRA Fund
costs. The EPA's Office of Pesticide Programs receives its funding both from fees
paid by pesticide manufacturers and amounts appropriated by 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 FIFRA Fund or other pesticide programs. This resulted in the loss of the audit
trail for reporting separate costs and liabilities for the FIFRA Fund and other
pesticide programs.
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The agency has taken action to correct this weakness. As noted in the prior report,
the agency agreed with our finding and believes that the timekeeping system's cost
allocation enhancement will allow for the creation of an audit trail to capture costs
incurred by the FIFRA Fund and other appropriations that support FIFRA-related
activities. The agency implemented a new enhancement in October 2016. The
enhancement is for transactions commencing in FY 2017, and does not impact or
correct the material weakness, and the reason for the disclaimer of opinion, for the
FY 2015 statements.
Also in our prior report of the FY 2014 statements, we noted an instance of
noncompliance in that the EPA chose to significantly exceed the statutory target
set out by FIFRA, resulting in noncompliance with laws and regulations. FIFRA
requires the EPA to collect pesticide maintenance fees, to the extent practicable,
of $27.8 million for each of FYs 2013 through 2017.1 In FY 2014, the EPA chose
to collect $28.6 million, $800,000 over the established target. As noted in the
prior report, the agency agreed with our recommendations and completed
appropriate corrective actions. In October 2015, the office eliminated the practice
of "averaging" to offset over-or under-collection of maintenance fees from
previous years. The office set the per-product maintenance fee at an amount that
is designed to collect the target amount of fees authorized by Congress.
There are no recommendations in this report and the agency had no comments.
Paul C. Curtis
Certified Public Accountant
Director, Financial Statement Audits
Office of Inspector General
U.S. Environmental Protection Agency
July 6,2017
Agency Comments
1 Codified at 7 U.S.C. § 136a-l(i)(C).
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Attachment 1
Material Weakness
Table of Contents
1 - EPA Cannot Adequately Support FIFRA Fund Costs	 7
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1 - EPA Cannot Adequately Support FIFRA Fund Costs
The EPA cannot adequately support its FY 2015 FIFRA Fund costs. OMB policy states that basic
financial statements include a Balance Sheet and Statement of Net Costs, and that the statement of net
costs should include the net costs of operations. The EPA's Office of Pesticide Programs receives its
funding both from fees paid by pesticide manufacturers and from amounts appropriated by Congress.
In FY 2015, 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 FIFRA Fund or other pesticide programs. This
resulted in the loss of the audit trail for reporting separate costs and liabilities for the FIFRA Fund
and other pesticide programs. The EPA developed an allocation methodology to distribute costs
funded by EPA appropriations back to the FIFRA Fund, but the methodology is based upon
inconsistent charging of payroll costs between the FIFRA Fund and EPA appropriations. Because the
EPA cannot adequately support total FY 2015 FIFRA Fund costs and liabilities, and because we were
unable to determine by other audit procedures the adequacy of amounts allocated, consistency of
application, or reasonableness of net costs and liabilities, we disclaimed an opinion on FIFRA's
FY 2015 financial statements. We consider the EPA's inability to support the FIFRA Fund payroll
costs a material weakness.
FIFRA requires that a set of financial statements be prepared to provide an annual accounting of
expenditures and collections. OMB Circular A-136 requires that these statements include a
Statement of Net Costs, under which net costs of operations are reported. The FIFRA Fund's
costs of operations are supported by several sources: maintenance fees, registration and
reregi strati on fees, and EPA appropriations.
In FY 2015, the EPA allocated its pesticide funding to use appropriated amounts that would
expire, and to retain funding received from fees. Therefore, significant payroll amounts were
paid from appropriations and not charged directly to the FIFRA Fund. This resulted in the loss of
the audit trail for reporting separate FIFRA Fund costs. The EPA adopted an allocation
methodology to determine the amount of appropriated dollars used to support FIFRA and the
EPA's other pesticide programs. However, this methodology is based upon inconsistent and
arbitrary charging of the Office of Pesticide Programs' payroll costs between the FIFRA Fund
and the EPA's other pesticide programs. The inconsistent and arbitrary charging makes the
allocation base unreliable, and the methodology cannot be used to support the FIFRA operations
costs. We consider the inability of the EPA to support FY 2015 FIFRA Fund costs to be a
material weakness.
We did not determine payroll costs overall for the EPA's pesticide programs to be inaccurate.
Our findings are limited to the specific allocation of appropriated amounts to cover payroll costs
of the EPA's pesticide programs and accounting for those costs at the program level. At the
program level (specifically, for the FIFRA Funds), the agency could not provide adequate
support, and we could not audit the payroll costs for those funds paid for by appropriated
amounts to opine on the adequacy of such amounts.
We previously reported on this issue in the FY 2014 FIFRA Fund Financial Statement audit
report, and the agency agreed with this finding. In FY 2015, the EPA indicated it made
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modifications to its accounting system, which purportedly will address this material weakness.
The agency believed that the timekeeping system's cost allocation enhancement, which went
live in October 2016, will allow for the creation of an audit trail to capture costs incurred by the
FIFRA Fund and by other appropriations that support FIFRA-related activities
We make no recommendations regarding this finding.
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Appendix A
Fiscal Years 2015 and 2014 Pesticides Reregistration and Expedited
Processing Fund
Financial Statements
(4)
^ PROffc0
Produced by the U.S. Environmental Protection Agency
Office of the Chief Financial Officer
Office of Controller
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TABLE OF CONTENTS
Management's Discussion and Analysis
Principal Financial Statements
EPA's FY 2015 Annual FIFRA Financial Statements
1
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Management's Discussion and Analysis
EPA's FY 2015 Annual FIFRA Financial Statements
2
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Under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Federal Food,
Drug, and Cosmetic Act (FFDCA), as amended by the Food Quality Protection Act (FQPA) of
1996, the EPA's Pesticide Program registers new pesticides and re-evaluates existing pesticides
to ensure that they can be used safely and that levels of residue in food and animal feed are safe
(there is a reasonable certainty of no harm). The agency must also conclude that, when used in
accordance with labeling and common practices, the product will not generally cause
unreasonable adverse effects on the environment.
In accordance with FIFRA and FFDCA, the pesticide program administers the Pesticides
Reregi strati on and Expedited Processing Fund (FIFRA Fund). As of 1996, fees for reregi strati on
are deposited to the FIFRA account, which is available to the EPA without further appropriation.
Under the FFDCA, EPA sets "tolerances," or maximum residue levels. If a pesticide is intended
to be used in a manner that may result in residues in food or animal feed, the applicant must
petition EPA for establishment of a tolerance (or exemption from a tolerance). Tolerances are
set at levels that ensure a reasonable certainty of no harm from the potential pesticide residues in
food combined with other non-occupational exposure.
The passage of the Food Quality Protection Act (FQPA) in 1996 provided for additional fees to
support reregi strati on activities and required tolerances to be reassessed as part of the
reregi strati on program. Effective January 1997, all fees related to tolerance activities were
deposited in the FIFRA Fund. With passage of the Pesticide Registration Improvement Act
(PRIA 1) of 2003 and amendments in 2007 and 2012, no additional tolerance petition fees are to
be deposited to the FIFRA Fund through FY 2017.
EPA's FY 2015 Annual FIFRA Financial Statements
3
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The Pesticide Reregistration and Registration Review Programs
EPA is responsible for re-evaluating the safety of existing pesticides. Since the original pesticide
legislation of 1947, scientific analysis techniques have grown much more precise and
sophisticated and health and environmental standards have become more stringent. With the
1988 amendments to FIFRA (FIFRA '88), Congress mandated the accelerated reregistration of
all products registered prior to November 1, 1984. The statute required completion of
Reregistration Eligibility Decisions (REDs) and tolerance reassessment for all food-use active
ingredients by 2006. Non-food-use active ingredient REDs were to be complete by October 3,
2008.
All REDs for the active ingredients have been completed. A RED is a decision by the Agency
defining whether products containing the pesticide active ingredient are eligible or ineligible for
reregistration. Following the issuance of the RED, the registrant must comply with the RED by
submitting product-specific data and revised labels for each product containing that active
ingredient, or cancel the product registration. Based on its review of the data, if the product has
met all the requirements, the EPA then reregisters the product.
The FQPA introduced a new program called registration review to replace EPA's pesticide
reregistration and tolerance reassessment programs as those programs were completed. Unlike
earlier review programs, registration review applies to all registered pesticides. EPA reviews
each registered pesticide every 15 years to determine whether it still meets the FIFRA standard
for registration. In this way, the Agency ensures that all registered pesticides do not pose
unreasonable risks to human health or the environment when used as directed on product
labeling.
Congress authorized the collection of maintenance fees from manufacturers to supplement
appropriated funds to support reregistration and registration review programs. Maintenance fees
were structured under PRIA 3 to generate approximately $27.8 million per year for five years
(FY' 13 - FY' 17). Maintenance fees are assessed on a product-by-product basis with caps on the
maximum number of products for which any single company would have to pay fees, as well as
fee reductions for qualified small businesses. Registrations for minor use registrations and
public health pesticides are also eligible for waivers and/or refunds of maintenance fees. Fees
are deposited into the FIFRA Revolving Fund. By statute, excess monies in the FIFRA Fund
may be invested. Between 11.1% and 12.5% of collected maintenance fees each year are used to
support inert ingredient clearances as well as expedited processing of fast track amendments.
Approximately $800,000 of collected maintenance fees each year are used to enhance specified
IT systems.
FQPA also reauthorized collection of maintenance fees through 2001 to complete the review of
older pesticides to ensure they meet current standards (increasing annual fees from $14 million to
$16 million per year through 2000) and required all tolerances (over 9,700) to be reassessed by
2006. The 2002 appropriations bill extended maintenance fees to $17 million for another year,
and the 2003 appropriations extended them to $21.5 million for that year. Passage of PRIA 1 in
EPA's FY 2015 Annual FIFRA Financial Statements
4
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FY 2004 extended maintenance fees through FY 2008 (with annual fees totaling $26 million in
FY 2004; $27 million in FY 2005-2006; $21 million in FY 2007; and $15 million in FY 2008).
Passage of the Pesticide Registration Improvement Renewal Act (PRIA 2) in October 2007
extended maintenance fees through FY 2012 ($22 million each FY). PRIA 2 provided for
maintenance fees to offset the costs of registration review beginning in FY 2008.
Enforcement and Compliance Assurance Program Description
The Pesticide Enforcement and Compliance Assurance Program focuses on pesticide product
and user compliance. These include problems relating to pesticide worker safety, certification
and training of applicators, ineffective antimicrobial products, food safety, adverse effects, risks
of pesticides to endangered species, pesticide containers and containment facilities, and e-
commerce and misuse. The enforcement and compliance assurance program provides
compliance assistance to the regulated community through its National Agriculture Compliance
Assistance Center, seminars, guidance documents, brochures, and other forms of communication
to ensure knowledge of and compliance with environmental laws.
EPA's grant support to state and tribal pesticide programs emphasizes its commitment to
maintaining a strong compliance and enforcement presence. Agency FIFRA Cooperative
Agreement priorities for FY 2015 - FY 2017 include the enforcement of worker protection
standards and pesticide applicator certification requirements; compliance monitoring and
enforcement activities related to the pesticide container and containment rules, the revised soil
fumigant labels, compliance of supplemental distributor products, contract manufacturing and
program performance reporting. Core program activities include inspections of producing
establishments; dealers/distributors/retailers; e-commerce; imports and exports, and pesticide
misuse. Additionally, through Cooperative Agreements we support inspector training and
training for state and tribal senior managers, scientists, and supervisors.
Highlights and Accomplishments
Tolerance Performance Measures
As mandated by PRIA 3, no Tolerance fees were collected and deposited to the FIFRA Fund in
FY 2015.
Measure: Tolerance re-evaluations.
Results: The tolerance reassessment program was completed in FY 2007. EPA completed
9,721 tolerance reassessment decisions, addressing 100% of the 9,721 tolerances that required
reassessment. Therefore, no further tolerance reassessment decisions were needed or completed
in FY 2015.
EPA's FY 2015 Annual FIFRA Financial Statements
5
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Reregistration (FIFRA) Financial Perspective
During FY 2015, the Agency's obligations charged against the FIFRA Fund for the cost of the
reregistration programs and other authorized pesticide programs were approximately $20.2
million and 95 work-years. Of this amount, OPP obligated $13.0 million for personnel
compensation and benefits (PC&B).
Appropriated funds are used in addition to FIFRA revolving funds. In FY 2015, the Enacted
Operating Plan included approximately $34.9 million in appropriated funds for reregistration
program activities.
The Fund has two types of receipts: fee collections and interest earned on investments. Of the
$27.7 million in FY 2015 receipts, more than 99.9% were fee collections. Total unobligated
balance in the fund at the end of FY 2015 was $15.9 million.
Reregistration Program (FIFRA) Performance Measures
The following measures support the program's strategic goals ensuring the safety of chemicals
and Pollution Prevention.
Measure 1: Number of Reregistration Eligibility Documents (REDs) completed.
Results: All Reregistration Eligibility Decisions (REDs) were completed by the end of FY 2008.
Of the 613 chemical cases (representing approximately 1,150 pesticide active ingredients) that
initially were subject to reregistration, 384 cases have completed REDs. An additional 229
reregistration cases were voluntarily canceled before EPA invested significant resources in
developing REDs. All 613 reregistration cases (100%) completed the reregistration eligibility
decision making process by the end of FY 2008.
Measure 2: Number of products reregistered, canceled, or amended. Over 20,000
products are or eventually will be subject to product reregistration. Many products,
however, contain more than one active ingredient. Since products are reassessed
separately for each active ingredient, EPA will conduct approximately 38,000 product
reviews.
Results: In FY 2015, EPA completed the following actions: 26 reregistration decisions; 197
amendment decisions; 245 product cancellations (many of these cancelled products have
multiple active ingredients, accounting for 432 decisions); and no suspension decisions. The
Agency's goal in FY 2016 is to complete 550 product reregistration actions
EPA's FY 2015 Annual FIFRA Financial Statements
6
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Measure 3: Progress in Reducing the Number of Unreviewed, Required Reregistration
Studies.
Results: EPA completed the last REDs for conventional pesticides in 2008, so all studies
necessary to make reregistration eligibility decisions have been reviewed. REDs are complete
for antimicrobial pesticides as well, but the program continues to issue post-RED DCIs and thus
will have studies to review.
Measure 4: Number and Type of DCIs Issued to Support Product Reregistration by Active
Ingredient.
Results: Regarding Data Call-In notices (DCIs) under FIFRA section 3(c)(2)(B) to support
product reregistration for pesticide active ingredients included in REDs, EPA completed the last
remaining REDs and reported DCI information for the conventional pesticide REDs in FY 2008.
In FY 2015, the program issued 66 post-RED DCIs for 36 antimicrobial pesticide active
ingredients for both product specific and generic data. The Agency's goal in FY 2016 is to issue
35 additional post-RED DCIs for 23 antimicrobial pesticide active ingredients.
Measure 5: Future Schedule for Reregistrations.
The last REDs were completed in FY 2008; therefore, there are no remaining candidates for
future decisions.
EPA's FY 2015 Annual FIFRA Financial Statements
7
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PRINCIPAL
FINANCIAL STATEMENTS
EPA's FY 2015 Annual FIFRA Financial Statements
17-F-0314

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Principal Financial Statements
Financial Statements
Balance Sheet	10
Statement of Net Cost	11
Statement of Changes in Net Position	12
Statement of Budgetary Resources	13
Notes to Financial Statements
Note 1. Summary of Significant Accounting Policies	14
Note 2. Fund Balance with Treasury	17
Note 3. Other Assets	18
Note 4. General Property, Plant and Equipment	18
Note 5. Other Liabilities	18
Note 6. Payroll and Benefits Payable, non-Federal	19
Note 7. Income and Expenses from Other Appropriations	19
Note 8. Exchange Revenues, Statement of Net Cost	21
Note 9. Intragovernmental Costs and Revenue	21
Note 10. Reconciliation of Net Cost of Operations to Budget (formerly the
Statement of Financing)	22
EPA's FY 2015 Annual FIFRA Financial Statements
9
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United States Environmental Protection Agency
IIIRA
Balance Sheet
As of September 30, 2015 and 2014
(Dollars in Thousands)

FY 2015
FY 2014
ASSETS
Intragovernmental:
Fund Balance With Treasury (Note 2) $
Other (Note 3)
22,400
89
16,480
Total Intragovernmental
22,489
16,480
Property, Plant & Equipment, Net (Note 4)
378
408
Total Assets
22,867
16,888
LIABILITIES
Intragovernmental:
Accounts Payable and Accrued Liabilities
Other (Note 5)
129
178
70
271
Total Intragovernmental
307
341
Accounts Payable & Accrued Liabilities
Payroll and Benefits Payable (Note 6)
Other (Note 5)
467
1,045
26,382
323
2,762
20,109
T otal Liabilities
28,201
23,535
NET POSITION
Unexpended Appropriations - Funds from Dedicated Collections
Cumulative Results of Operations - Funds from Dedicated Collections
9
(5,343)
(6,647)
Total Net Position
(5,334)
(6,647)
Total Liabilities and Net Position $
22,867
16,888
17-F-0314
The accompanying notes are an integral part of these
EPA's FY 2015 Annual FIFRA Financial
10
financial statements.
Statements

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United States Environmental Protection Agency
II IRA
Statement of Net Cost
For the Fiscal Years Ending September 30, 2015 and 2014
(Dollars in Thousands)

FY 2015
FY 2014
COSTS


Gross Costs (Note 9)
Expenses from Other Appropriations (Note 7)
$ 20,821
45,054
22,836
33,652
Total Costs
Less:
Earned Revenue (Note 8 and 9)
65,875
21,384
56,488
23,306
NET COST OF OPERATIONS (Note 9)
$ 44,491
33,182
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EPA's FY 2015 Annual FIFRA Financial Statements
11

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United States Environmental Protection Agency
IIIKA
Statement of Changes in Net Position
For the Fiscal Years Ending September 30, 2015 and 2014
(Dollars in Thousands)

FY 2015
FY 2014
CUMULATIVE RESULTS OF OPERATIONS:


NET POSITION - BEGINNING OF PERIOD $
Beginning Balances, as Adjusted
(6,647)
(6,647)
(7,383)
(7,383)
BUDGETARY FINANCING SOURCES:
Appropriations Used
Nonexchange Revenue - Securities Investment
Income from Appropriations (Note 7)
(9)
1
45,054
2
33,652
Total Budgetary Financing Sources
45,046
33,654
OTHER FINANCING SOURCES (NON-EXCHANGE)
Imputed Financing Sources
750
264
Total Other Financing Sources
750
264
Net Cost of Operations
(44,491)
(33,182)
Net Change
1,304
736
CUMULATIVE RESULTS OF OPERATIONS
(5,343)
(6,647)

FY 2015
FY 2014
Unexpended Appropriations:


Budgetary Financing Sources:
Appropriations Used
9

Total Budgetary Financing Sources
9
-
Total Unexpended Appropriations
9
-
TOTAL NET POSITION $
(5,334)
(6,647)
17-F-0314
The accompanying notes are an integral part of these financial statements.
EPA's FY 2015 Annual FIFRA Financial Statements
12

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United States Environmental Protection Agency
FIFRA
Statement of Budgetary Resources
For the Fiscal Years Ending September 30, 2015 and 2014
(Dollars in Thousands)
FY 2015
BUDGETARY RESOURCES
Unobligated balance, brought forward, October 1:
Unobligated Balance Brought Forward, October 1, as adjusted
Recoveries of prior year unpaid obligations
Unobligated balance from prior year budget authority, net
Appropriations (discretionary and mandatory)
Spending Authority from offsetting collection (discretionary and mandatory)
Total Budgetary Resources
10,518
10,518
35
10,553
(28)
27,671
38,196
FY 2014
7,639
7,639
7,639
(2,002)
28,630
34,267
STATUS OF BUDGETARY RESOURCES
Obligations Incurred	22,223	23,749
Unobligated Balance, end of year:
Apportioned	15,973	3,022
Unapportioned	-	7,496
Total Unobligated balance, end of period	15,973	10,518
Total Status of Budgetary Resources		38,196 	34,267
CHANGE IN OBLIGATED BALANCE
Unpaid Obligations:
Unpaid obligations, brought forward, October 1 (gross)
Obligations incurred, net
Outlays (gross)
Recoveries of prior year unpaid obligations
Unpaid obligations, end of year (gross)
Memorandum entries:
Obligated balance, start of year
Obligated balance, end of year (net)
BUDGET AUTHORITY AND OUTLAYS, NET:
Budget authority, gross (discretionary and mandatory)
Actual offsetting collections (discretionary and mandatory)
Budget Authority, net (discretionary and mandatory)
Outlays, gross (discretionary and mandatory)
Actual offsetting collections (discretionary and mandatory)
Outlays, net (discretionary and mandatory)
Agency outlays, net (discretionary and mandatory)
The accompanying notes are an ii
3,959	4,151
22,223	23,749
(21,751)	(23,941)
(36) 	^
4,395 	3,959
3,959	4,151
4,395	3,959
27,643	26,628
	(27,671)	(28,630)
(28)	(2,002)
21,751	23,941
	(27,671)	(28,630)
	(5,920) 	(4,689)
$	(5,920) 	(4,689)
part of these financial statements.
EPA's FY 2015 Annual FIFRA Financial Statements
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United States Environmental Protection Agency
FIFRA
Notes to Financial Statements
For the Fiscal Years Ending September 30, 2015 and 2014
(Dollars in Thousands)
Note 1. Summary of Significant Accounting Policies
A.	Reporting Entity
The U.S. Environmental Protection Agency (EPA or Agency) was created in 1970 by executive
reorganization from various components of other Federal agencies in order to better marshal and
coordinate Federal pollution control efforts. The Agency is generally organized around the
media and substances it regulates — air, water, land, hazardous waste, pesticides and toxic
substances.
The FIFRA Revolving Fund was authorized in 1988 by amendments to the Federal Insecticide,
Fungicide and Rodenticide Act (FIFRA). The 1988 amendments mandated the accelerated re-
registration of all products registered prior to November 1, 1984. Congress authorized the
collection of maintenance fees to supplement appropriations to fund re-registration and to fund
expedited processing of pesticides. Maintenance fees are assessed on registrants of pesticide
products. FIFRA also includes provisions for the registration of new pesticides (funded in part
from the PRIA or Pesticide Registration Fund), monitoring the distribution and use of pesticides,
issuing civil or criminal penalties for violations, establishing cooperative agreements with the
states, and certifying training programs for users of restricted chemicals. Appropriated funds,
with the exception of partial funding of registration from Pesticide Registration Service Fees in
the Pesticide Registration Fund, pay for these activities. The FIFRA Revolving Fund is
accounted for under Treasury symbol number 68X4310.
The FIFRA fund may charge some administrative costs directly to the fund and charge the
remainder of the administrative costs to Agency-wide appropriations. Costs funded by Agency-
wide appropriations for FY 2015 and FY 2014 were $45,054 thousand and $33,652 thousand,
respectively. These amounts are included as Income from Other Appropriations on the
Statement of Changes in Net Position and as Expenses from Other Appropriations on the
Statement of Net Cost. Costs for FY 2015 reflect a change in accounting principles to full cost,
as explained in Paragraph N below.
B.	Basis of Presentation
These financial statements have been prepared to report the financial position and results of
operations of the EPA for the Reregi strati on and Expedited Processing (FIFRA) Revolving Fund
as required by the Chief Financial Officers Act of 1990. The reports have been prepared from
the books and records of the EPA in accordance with Office of Management and Budget (OMB)
Circular A-136 Financial Reporting Requirements, and the EPA's accounting policies which are
summarized in this note. These statements are therefore different from the financial reports also
EPA's FY 2015 Annual FIFRA Financial Statements
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prepared by the EPA pursuant to OMB directives that are used to monitor and control the EPA's
use of budgetary resources. The balances in these reports have been updated from the EPA
consolidated financial statements to reflect the use of FY 2015 and FY 2014 cost factors for
calculating imputed costs for Federal civilian benefits programs, respectively. These updates
impact the Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position.
C.	Budgets and Budgetary Accounting
Funding of the FIFRA Revolving Fund is provided by fees collected from industry to offset costs
incurred by the EPA in carrying out these programs. Each year the EPA submits an
apportionment request to OMB based on the anticipated collections of industry fees.
D.	Basis of Accounting
Generally Accepted Accounting Principles (GAAP) for Federal entities is the standard
prescribed by the Federal Accounting Standards Advisory Board (FASAB), which is the official
standard setting body for the federal government. The financial statements are prepared in
accordance with GAAP for federal entities.
Transactions are recorded on an accrual accounting basis and a budgetary basis. Under the
accrual method, revenues are recognized when earned and expenses are recognized when a
liability is incurred, without regard to receipt or payment of cash. Budgetary accounting
facilitates compliance with legal constraints and controls over the use of Federal funds. All
interfund balances and transactions have been eliminated.
E.	Revenues and Other Financing Sources
The EPA's 2002 appropriations bill extended authority to collect maintenance fees by one year
in the amount of $17 million and the FY 2003 appropriations extended the authority to collect
fees again by one year in the amount of $21.5 million. Passage of the Pesticide Registration
Improvement Act (PRIA) in 2004 extended the authority to collect maintenance fees through FY
2008 (with annual fee amounts at $26 million in FY 2004; $27 million in FY 2005-2006; $21
million in FY 2007; and $15 million in FY 2008). Passage of the Pesticide Registration
Improvement Renewal Act (commonly referred to as PRIA II) in 2007 extended the authority to
collect maintenance fees through FY 2012 (with annual fee amounts set at $22 million each year
from 2008-2012). For FYs 2015 and 2014, the FIFRA Revolving Fund received funding from
maintenance fees collected on existing registered pesticide products and from interest collected
on investments in U.S. Government securities. For FYs 2015 and 2014 revenues were
recognized from fee collections to the extent that expenses are incurred during the fiscal year.
F.	Funds with the Treasury
The FIFRA fund deposits receipts and processes disbursements through its operating account
maintained at the U.S. Department of Treasury. Cash funds in excess of immediate needs are
invested in U.S. Government securities.
EPA's FY 2015 Annual FIFRA Financial Statements
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G.	Investments in U. S. Government Securities
Investments in U. S. Government securities are maintained by Treasury (Bureau of Public Debt)
and are reported at amortized cost net of unamortized discounts. Discounts are amortized over
the term of the investments and reported as interest income. FIFRA holds the investments to
maturity, unless needed to finance operations of the fund. No provision is made for unrealized
gains or losses on these securities because, in the majority of cases, they are held to maturity.
H.	General Property, Plant and Equipment
General property, plant and equipment for FIFRA consists of software in development. All
funds (except for the Working Capital Fund) capitalize software if those investments are
considered Capital Planning and Investment Control (CPIC) or CPIC Lite systems with the
provisions of SFFAS No. 10, "Accounting for Internal Use Software." Once software enters the
production life cycle phase, it is depreciated using the straight-line method over the specific
asset's useful life ranging from two to 10 years.
I.	Accounts Receivable and Interest Receivable
FIFRA receivables are mainly for interest receivable on investments.
J. Liabilities
Liabilities represent the amount of monies or other resources that are likely than not to be paid
by the Agency as the result of an Agency transaction or event that has already occurred and can
be reasonably estimated. However, no liability can be paid by the Agency without an
appropriation or other collections. Liabilities for which an appropriation has not been enacted
are classified as unfunded liabilities, and there is no certainty that the appropriations will be
enacted. For FIFRA, liabilities are liquidated from fee receipts and interest earnings, since
FIFRA receives no appropriation. Liabilities of the Agency, arising from other than contracts
can be abrogated by the Government acting in its sovereign capacity.
K. Accrued Unfunded Annual Leave
Annual, sick and other leave is expensed as taken during the fiscal year. Sick leave earned but
not taken is not accrued as a liability. Annual leave earned but not taken as of the end of the
fiscal year is accrued as an unfunded liability. Accrued unfunded annual leave is included in the
Balance Sheet as a component of "Payroll and Benefits Payable."
L. Retirement Plan
There are two primary retirement systems for Federal employees. Employees hired prior to
January 1, 1987, may participate in the Civil Service Retirement System (CSRS). On January 1,
1984, the Federal Employees Retirement System (FERS) went into effect, pursuant to Public
EPA's FY 2015 Annual FIFRA Financial Statements
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Law 99-335. Most employees hired after December 31, 1983, are automatically covered by
FERS and Social Security. Employees hired prior to January 1, 1984, elected to either join FERS
and Social Security or remain in CSRS. A primary feature of FERS is that it offers a savings plan
to which the Agency automatically contributes one percent of pay and matches any employee
contributions up to an additional four percent of pay. The Agency also contributes the
employer's matching share for Social Security.
With the issuance of SFFAS No. 5, "Accounting for Liabilities of the Federal Government,"
accounting and reporting standards were established for liabilities relating to the federal
employee benefit programs (Retirement, Health Benefits, and Life Insurance). SFFAS No. 5
requires that the employing agencies recognize the cost of pensions and other retirement benefits
during their employees' active years of service. SFFAS No. 5 requires that the Office of
Personnel Management (OPM), as administrator of the CSRS and FERS, the Federal Employees
Health Benefits Program, and the Federal Employees Group Life Insurance Program, provide
federal agencies with the actuarial cost factors to compute the liability for each program.
M. Use of Estimates
The preparation of financial statements requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities and the reported amounts of
revenue and expenses during the reporting period. Actual results could differ from those
estimates.
N. Prior Period Adjustments and Restatements
Prior period adjustments, if any, are made in accordance with SFFAS No. 21, "Reporting
Corrections of Errors and Changes in Accounting Principles." Specifically, prior period
adjustments will only be made for material prior period errors to: (1) the current period financial
statements, and (2) the prior period financial statements presented for comparison. Adjustments
related to changes in accounting principles will only be made to the current period financial
statements, but not to prior period financial statements presented for comparison.
In fiscal year 2014, EPA elected to change an accounting principle and use the full cost of
expenses from other appropriations in accordance with SFFAS No. 4, "Managerial Costs
Accounting Standards and Concepts". See Note 7 for additional information.
Note 2. Fund Balance with Treasury
FY 2015 FY 2014
Revolving Funds: Entity Assets	$ 22,400	16,480
EPA's FY 2015 Annual FIFRA Financial Statements
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17

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Note 3. Other Assets-Advances to Working Capital Fund
FIFRA advances funds to the EPA's Working Capital Fund to pay for computer, postage, and
other administrative support services. As of September 30, 2015 and 2014, funds advanced that
will be applied to future costs as incurred were $89 thousand and $0 respectively.
Note 4. General Property, Plant and Equipment
General property, plant and equipment consists of software and software in development.
As of September 30, 2015 and 2014, General Property, Plant and Equipment consist of the
following:
FY 2015	FY 2014

Acquisition
Accumulated
Net Book
Acquisition
Accumulated
Net Book

Value
Depreciation
Value
Value
Depreciation
Value
Software
$ 1,107
(729)
378
1,107
(699)
408
Total
$ 1,107
(729)
378
1,107
(699)
408
Note 5. Other Liabilities
For FYs 2015 and 2014, the Payroll and Benefits Payable, non-Federal, are presented on a
separate line of the Balance Sheet and in a separate footnote (see Note 6).
FY 2015 FY 2014
Other Intragovernmental Liabilities - Covered by


Budgetary Resources


Employer Contributions - Payroll
$ 178
271
Total
178
271
Other Non-Federal Liabilities - Covered by


Budgetary Resources


Advances from Non-Federal Entities
26,382
20,109
Total
$ 26,382
20,109
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EPA's FY 2015 Annual FIFRA Financial Statements
18

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Note 6. Payroll and Benefits Payable, non-Federal
FY 2015 FY 2014
Covered by Budgetary Resources


Accrued Payroll Payable to Employees
$ 865
946
Withholdings Payable
81
360
Thrift Savings Plan Benefits Payable
39
55
Total
985
1,361
Not Covered by Budgetary Resources


Unfunded Annual Leave Liability
&
o
1,401
At various periods throughout FYs 2015 and 2014, employees with their associated payroll costs
were transferred from the FIFRA fund to the Environmental Programs and Management (EPM)
appropriation. (See graph in Note 7 below showing trend of hours charged per month to the
FIFRA fund for FYs 2015 and 2014.) These employees were transferred in order to keep
FIFRA's obligations and disbursements within budgetary and cash limits. When resources
became available, the employees charging to FIFRA increased in order to utilize resources as
much as possible. The Agency expects that the practice of transferring employees when
FIFRA's resources are low, and restoring employees when funds become available, will continue
throughout FY 2016 and probably beyond that period.
This process has led to variations between the year-end liabilities for FYs 2015 and 2014. The
liabilities covered by budgetary resources (both intragovernmental and non-Federal) represent
unpaid payroll and benefits at year-end. At the end of FY 2015 and FY 2014, 30 employees and
169 employees were charging their salary and benefits to FIFRA, respectively. As of September
30, 2015 these liabilities were $178 thousand and $985 thousand for employer contributions and
accrued funded payroll and benefits, as compared to FY 2014's balances of $271 thousand and
$1,361 thousand, respectively.
In contrast, the unfunded annual leave liability is a longer term liability than the funded
liabilities. At various periods throughout FYs 2015 and 2014, approximately 262 and 265
employees, respectively, in total have been under FIFRA's accountability. During the 25th pay
period of FY 2015, the liability was computed based on 36 employees charging to FIFRA in the
last pay period. Both the September 30, 2015 and 2014 liability balances for unfunded annual
leave were accrued to cover the employees charged to FIFRA close to the end of the fiscal year
for a total of $60 thousand and $1,401 thousand, respectively.
Note 7. Income and Expenses from Other Appropriations
The Statement of Net Cost reports program costs that include the full costs of the program
outputs and consist of the direct costs and all other costs that can be directly traced, assigned on a
cause and effect basis, or reasonably allocated to program outputs.
EPA's FY 2015 Annual FIFRA Financial Statements
19
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During FYs 2015 and 2014, the EPA had two appropriations which funded a variety of
programmatic and non-programmatic activities across the Agency, subject to statutory
requirements. The EPM appropriation was created to fund personnel compensation and benefits,
travel, procurement, and contract activities. Transfers of employees from FIFRA to EPM at
various times during these years (see Note 6 above) resulted in an increase in payroll expenses in
EPM, and these costs financed by EPM are reflected as an increase in the Expenses from Other
Appropriations on the Statement of Net Cost. The increased financing from EPM is reported on
the Statement of Changes in Net Position as Income from Other Appropriations.
In terms of hours charged to FIFRA each month, the transfers of employees and their associated
costs, during FYs 2015 and 2014 are shown below. Note that a decrease in hours charged to
FIFRA normally signifies an increase in EPM's payroll costs, and vice versa. In addition,
Pesticide registration was separated from FIFRA starting with FY 2004 and Pesticide has its own
set of financial statements.
i/i
Z)
o
X
>¦
o
16.i
14.i
<
i/i
z>
O 12.i
10.1
8.i
6.i
4.i
2.i
O.i
FIFRA - Employee Hours
01 03 05 07
09
11
13 15
PAY PERIODS
17
19
21 23 25 27
-Hours-2015
¦Hours-2014
EPM costs related to FIFRA are allocated based on specific EPM program codes which have
been designated for Pesticide activities. As illustrated below, there is no impact on FIFRA's
Statement of Changes in Net Position.
17-F-0314
EPA's FY 2015 Annual FIFRA Financial Statements
20

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Income from Other Expenses from Other
Appropriations	Appropriations
FY 2015	$	45,054 	45,054
FY 2014	$	33,652 	33,652
Note 8. Exchange Revenues, Statement of Net Cost
For FYs 2015 and 2014, the exchange revenues reported on the Statement of Net Cost include
both Federal and non-Federal amounts.
Note 9. Intragovernmental Costs and Exchange Revenue
FY 2015 FY 2014
COSTS:


Intragovernmental
$ 6,673
6,242
With the Public
14,148
16,594
Expenses from Other Appropriations
45,054
33,652
Total Costs
65,875
56,488
REVENUE


With the Public
21,384
23,306
Total Revenue
21,384
23,306
NET COST OF OPERATIONS
$ 44,491
33,182
Intragovernmental costs relate to the source of the goods or services not the classification of the
related revenue.
17-F-0314
EPA's FY 2015 Annual FIFRA Financial Statements
21

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Note 10. Reconciliation of Net Cost of Operations to Budget (formerly the Statement of
Financing)
FY 2015 FY 2014
RESOURCES USED TO FINANCE ACTIVITIES:
Budgetary Resources Obligated
Obligations Incurred $
Less: Spending Authority from Offsetting Collections and Recoveries
Obligations, Net of Offsetting Collections
Net Obligations
Other Resources
Imputed Financing Sources
Income from Other Appropriations
22,223
(27,707)
(5,484)
(5,484)
750
45,054
23,749
(28,630)
(4,881)
(4,881)
264
33,652
Net Other Resources Used to Finance Activities
45,804
33,916
Total Resources Used To Finance Activities
40,320
29,035
RESOURCES USED TO FINANCE ITEMS
NOT PART OF THE NET COST OF OPERATIONS:
Change in Budgetary Resources Obligated
Resources that Fund Prior Periods Expenses
Resources that Finance Asset Acquistion
5,482
5,551
(785)
(106)
Total Resources Used to Finance Items Not Part of the Net Cost of Operations
5,482
4,660
Total Resources Used to Finance the Net Cost of Operations
45,802
33,695
COMPONENTS OF THE NET COST OF OPERATIONS THAT WILL
NOT REQUIRE OR GENERATE RESOURCES IN THE CURRENT PERIOD:
Components Requiring or Generating Resources in Future Periods:
Increase in Annual Leave Liability
Upward/Downward Reestimates of Credit Subsidy Expense
(1,341)
(670)
Total Components of Net Cost of Operations that Require or
Generate Resources in Future Periods
(1,341)
(670)
Components Not Requiring/Generating Resources:
Depreciation and Amortization
30
157
Total Components of Net Cost that Will Not Require or Generate Resources
30
157
Total Components of Net Cost of Operations That Will Not Require or
Generate Resources in the Current Period
(1,311)
(513)
Net Cost of Operations $
44,491
33,182
EPA's FY 2015 Annual FIFRA Financial Statements
22
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Appendix B
Distribution
The Administrator
Chief of Staff
Chief Financial Officer
Assistant Administrator for Chemical Safety and Pollution Prevention
Agency Follow-Up Coordinator
General Counsel
Associate Administrator for Congressional and Intragovernmental Relations
Associate Administrator for Public Affairs
Deputy Assistant Administrator for Chemical Safety and Pollution Prevention
Director, Office of Pesticide Programs, Office of Chemical Safety and Pollution Prevention
Deputy Director, Office of Pesticide Programs, Office of Chemical Safety and Pollution
Prevention
Senior Advisor, FIFRA & PRIA Implementation, Office of Pesticide Programs, Office of
Chemical Safety and Pollution Prevention
Director, Biopesticides and Pollution Prevention Division, Office of Pesticide Programs,
Office of Chemical Safety and Pollution Prevention
Director, Pesticide Re-Evaluation Division, Office of Pesticide Programs, Office of Chemical
Safety and Pollution Prevention
Director, Registration Division, Office of Pesticide Programs, Office of Chemical Safety and
Pollution Prevention
Director, Antimicrobials Division, Office of Pesticide Programs, Office of Chemical Safety and
Pollution Prevention
Director, Information Technology and Resources Management Division, Office of Pesticide
Programs, Office of Chemical Safety and Pollution Prevention
Controller, Office of the Controller, Office of the Chief Financial Officer
Deputy Controller, Office of the Controller, Office of the Chief Financial Officer
Director, Accounting and Cost Analysis Division, Office of the Chief Financial Officer
Director, Policy, Training, and Accountability Division, Office of the Chief Financial Officer
Director, Washington Finance Center, Office of the Chief Financial Officer
Audit Follow-Up Coordinator, Office of the Administrator
Audit Follow-Up Coordinator, Office of the Chief Financial Officer
Audit Follow-Up Coordinator, Office of Chemical Safety and Pollution Prevention
FIFRA & PRIA Audit Coordinator, Office of Pesticide Programs, Office of Chemical Safety and
Pollution Prevention
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