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*. U.S. Environmental Protection Agency	12-1-0522
#	Office of Inspector General	June 6,2012
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-  At a Glance
Why We Did This Review
The Pesticide Registration
Improvement Act (PRI A)
requires that we perform an
annual audit of the Pesticide
Registration Fund (known as
the PRIA Fund) financial
statements.
Background
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.
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 -0522. pdf
Fiscal Years 2011 and 2010 Financial
Statements for the Pesticide Registration Fund
Opinion
We rendered an unqualified, or clean, opinion on EPA's Pesticide Registration
Fund financial statements for fiscal years 2011 and 2010, meaning that they were
fairly presented and free of material misstatement.
Internal Control Material Weakness Noted
We noted one material weakness in internal controls. EPA materially understated
the PRIA payroll and benefits payable and related payroll expenses included in
fiscal year 2011 gross costs. The Agency's practice of transferring employees and
expenses and liabilities from PRIA 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. The fiscal year 2010 accruals for PRIA were $239,000 while the fiscal
year 2011 accruals were $8,000. Understatements could impact the opinion on
the financial statements and reliance on reported PRIA financial information.
Internal Control Significant Deficiency Noted
We noted one significant deficiency in internal controls. EPA did not record
accounts receivable for a PRIA fee until the payments were 18 months overdue.
During our fiscal year 2011 allowance for doubtful accounts review, we found a
PRIA receivable for which the finance center was unable to record an allowance
because there was no accounting model for a PRIA allowance for doubtful
accounts.
Compliance with Decision Time Review Periods
The Agency was in compliance with the statutory decision time frames.
Planned Agency Corrective Actions
The Agency agreed with our findings and recommendations. The Agency
corrected the payroll and benefit payable amounts and indicated it will monitor
the PRIA benefit accrual at year-end. The Agency will develop policies and
procedures for PRIA accounts receivables and has established general ledger
posting models for PRIA allowances. The Agency's complete response is in
appendix B to this report. We agree with the Agency's corrective actions.

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