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U.S. Environmental Protection Agency	12-1-0521
#	Office of Inspector General	June 6,2012
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- ° At a Glance
Why We Did This Review
The Food Quality Protection
Act requires that we perform
an annual audit of the
Pesticides Reregistration and
Expedited Processing Fund
(known as the FIFRA Fund)
financial statements.
Background
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 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 EPA's
progress in reregistering
pesticides.
For further information, contact
our Office of Congressional and
Public Affairs at (202) 566-2391.
The full report is at:
www.epa.gov/oiq/reports/2012/
20120606-12-1 -0521. pdf
Fiscal Years 2011 and 2010 Financial
Statements for the Pesticides Reregistration
and Expedited Processing Fund
Opinion
We rendered an unqualified, or clean, opinion on EPA's Pesticides Reregistration
and Expedited Processing Fund financial statements for fiscal years 2011 and
2010, meaning they are fairly presented and free of material misstatement.
Internal Control Material Weakness Noted
We noted one material weakness in internal controls. EPA materially understated
the FIFRA payroll and benefits payable, and related payroll expenses included in
gross costs, in fiscal year 2011. The Agency's practice of transferring employees
and expenses and liabilities from FIFRA to the Environmental Programs and
Management Fund for cash flow reasons led to the understatement. The transfer
removed the base upon which the leave accrual and benefits payable amounts are
calculated. As a result, payroll and benefits payable were materially understated.
The fiscal year 2010 accruals for FIFRA were $2,269,000 while the fiscal year
2011 accruals were $17,000. Understatements could impact the opinion on the
financial statements and reliance on reported FIFRA financial information.
Compliance With Applicable Laws and Regulations
The Agency was in compliance with applicable laws and regulations.
Planned Agency Corrective Actions
The Agency agreed with our findings and recommendations. The Agency
corrected the FIFRA financial statements to reflect the proper payroll and benefit
payable amounts and indicated it will monitor the FIFRA benefit accrual at year-
end. The Agency's complete response is in appendix B to this report. We agree
with the Agency's corrective actions taken and proposed and believe the actions
adequately address the issues raised.

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