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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
2005-S-00006
June 28, 2005
Catalyst for Improving the Environment
Why We Did This Review
In a report that we had issued
on September 30, 2003,
related to an Environmental
Protection Agency (EPA)
grant issued to Geothermal
Heat Pump Consortium, Inc.,
we identified significant
questioned costs caused by an
inadequate financial
management system.
We performed this quality
assurance review to determine
whether EPA could rely on the
2003 single audit report to
accept costs claimed under its
current grant to Geothermal.
Background
McGladrey & Pullen, LLP Single Audit of
Geothermal Heat Pump Consortium, Inc.,
for Year Ended December 31, 2003
What We Found
McGladrey & Pullen's audit work met generally accepted government auditing
standards and the requirements in Office of Management and Budget Circular
A-133 and its related supplements. The firm's audit report also met the Office of
Management and Budget Circular A-133 reporting requirements. We believe that
the single auditor's report, which contained an unqualified opinion on the financial
statements and compliance with Federal requirements, accurately reflects
Geothermal's financial position and compliance. We have no recommendations
for EPA.
Under Office of Management
and Budget Circular A-133,
entities that receive Federal
funds of $300,000 in a year
are required to have a single
audit conducted. For 2003,
the Geothermal audit was
conducted by McGladrey &
Pullen, LLP. During 2003,
Geothermal incurred $554,517
in expenditures under an EPA
grant.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.aov/oia/reports/2005/
20050628-2005-S-00006.pdf

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