United States
Environmental Protection Agency
FISCAL YEAR 2019
Justification of Appropriation
Estimates for the Committee
on Appropriations
Office of Inspector General
February 2018
EPA- 190-R-18-001	www.epa.gov/ocfo

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Environmental Protection Agency
2019 Annual Performance Plan and Congressional Justification
Table of Contents - Office of Inspector General	
Resource Summary Table	365
Program Projects in IG	365
Audits, Evaluations, and Investigations	366
Audits, Evaluations, and Investigations	367
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Environmental Protection Agency
FY 2019 Annual Performance Plan and Congressional Justification
APPROPRIATION: Inspector General
Resource Summary Table

(Dollars in Thousands)




FY 2019 Pres


FY 2018

Budget v.

FY 2017
Annualized
FY 2019
FY 2018

Actuals
CR
Pres Budget
Annualized CR
Inspector General




Budget Authority
$41,053.7
$41,207.0
$37,475.0
-$3,732.0
Total Workyears
219.0
268.0
201.4
-66.6
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the
Superfund account.
Bill Language: Inspector General
For necessary expenses of the Office of Inspector General in carrying out the provisions of the
Inspector General Act of1978, $37,475,000, to remain available until September 30, 2020.
Program Projects in IG

(Dollars in Thousands)
Program Project
FY 2017
Actuals
FY 2018
Annualized
CR
FY 2019 Pres
Budget
FY 2019 Pres
Budget v.
FY 2018 Annualized
CR
Audits, Evaluations, and Investigations




Audits, Evaluations, and Investigations
$41,053.7
$41,207.0
$37,475.0
-$3,732.0
TOTAL IG
$41,053.7
$41,207.0
$37,475.0
-$3,732.0
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund
account.
365

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Audits, Evaluations, and Investigations
366

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Audits, Evaluations, and Investigations
Program Area: Audits, Evaluations, and Investigations
Goal: Rule of Law and Process
Objective(s): Improve Efficiency and Effectiveness

(Dollars in Thousands)

FY 2017
Actuals
FY 2018
Annualized
CR
FY 2019 Pres
Budget
FY 2019 Pres
Budget v.
FY 2018 Annualized
CR
Inspector (icncriil
S-I1.0H3. ~
s -ii.2ir.n
S3~.-I~xl>
- S.i. '32.0
Hazardous Substance Superfund
$9,156.4
$8,718.0
$8,718.0
$0.0
Total Budget Authority
$50,210.1
$49,925.0
$46,193.0
-$3,732.0
Total Workyears
266.0
318.1
242.0
-76.1
Program Project Description:
EPA's Office of Inspector General (OIG) provides independent audit, program evaluation,
inspection and investigative services and products that fulfill the requirements of the Inspector
General Act, as amended, by identifying fraud, waste, and abuse in agency, grantee and contractor
operations, and by promoting economy, efficiency, and effectiveness in the operations of the
Agency's programs. Although the OIG is a part of EPA, to ensure its independence, as specified
in the IG Act (as amended), the OIG is funded with a separate appropriation within the Agency.
The OIG activities add value and enhance public trust and safety by providing the Agency, the
public, and Congress with independent analyses and recommendations that help EPA management
resolve risks and challenges, achieve opportunities for savings, and implement actions for
safeguarding EPA resources and accomplishing EPA's environmental goals. The OIG activities
also prevent and detect fraud in EPA's programs and operations, including financial fraud,
laboratory fraud, and cybercrime. The OIG consistently provides a significant positive return on
investment to the public in the form of recommendations for improvements in the delivery of
EPA's mission, reduction in operational and environmental risks, costs savings and recoveries,
and improvements in program efficiencies and integrity. The audit, program evaluation, inspection
and investigative services programs are directly supported through the OIG's management and
administrative functions of information technology, human resources, human capital, budget,
planning and performance, legal advice and counseling, report publishing and communications,
and congressional outreach.
In addition, EPA Inspector General was designated by Congress in 2004 to serve as the IG for the
U.S. Chemical Safety and Hazard Investigation Board (CSB) and provides the full range of audit,
evaluation and investigative services specified by the Inspector General Act, as amended.
Specifically, the OIG conducts required audits of the CSB's financial statements and of CSB's
compliance with the Federal Information Security Management Act. In addition, the OIG performs
audits and evaluations of the CSB's programmatic and management activities and follow-up on
prior audit recommendations.
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FY 2019 Activities and Performance Plan:
EPA OIG assists the Agency in its efforts to reduce environmental and human health risks by
making recommendations to improve program operations; save taxpayer dollars; reduce the
potential for fraud, waste and abuse; respond to cybercrimes; and resolve previously identified
major management challenges and internal control weaknesses. In FY 2019, the OIG will continue
recommending improvements to operating efficiency, transparency, secured and trustworthy
systems, and the cost effective attainment of EPA's strategic goals and positive environmental
impacts. These recommendations include focus on the core mission of delivering real results to
provide Americans with clean air, land, and water.
OIG's plans are implemented through audits, evaluations, investigations, inspections, and follow-
up reviews in compliance with the Inspector General Act (as amended), the Generally Accepted
Government Accounting Standards, and the Quality Standards for Federal Offices of Inspector
General of the Council of Inspectors General on Integrity and Efficiency.
OIG conducts the following types of assignments focused on efficiency and program operations:
program performance, including a focus on the award and administration of grants and contracts;
statutorily mandated audits; financial reviews of grantees and contractors; and information
resources management. In addition, program performance evaluations will be conducted in the
areas of EPA's mission obj ectives for improving and protecting the environment and public health,
including: air; water; land cleanup and waste management; toxics, chemical management and
pollution prevention; and environmental research programs.
The investigative mission of the OIG continues to evolve in conducting criminal, civil, and
administrative investigations into fraud and serious misconduct within EPA programs and
operations that undermine the organization's integrity and public trust, or create an imminent risk
or danger. The OIG investigations are coordinated with the Department of Justice and other
federal, state, and local law enforcement entities. These investigations often lead to successful
prosecution and civil judgments wherein there is a recovery and repayment of financial losses.
Major areas of investigative focus include: financial fraud, program integrity, threats to the
Agency's resources, employee integrity, cybercrimes, and theft of intellectual or sensitive data.
A significant portion of audit resources will be devoted to statutorily mandated work assessing the
financial statements of EPA, as required by the Chief Financial Officers Act and the Accountability
of Tax Dollars Act of2002, respectively. The OIG work also will include assessing the information
security practices of EPA as required by the Federal Information Security Management Act. The
OIG will examine the delivery and performance of national programs, as well as specific cross-
regional and single region or place based issues that represent a risk to public health and the
environment in response to stakeholder concerns.
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Based on prior work, cross-agency risk assessment, agency challenges, future priorities, and
extensive stakeholder input, the OIG will concentrate its resources on efforts in the following
strategic objectives and continuing or prospective assignment areas during FY 2019:
Sound and Economical Financial Management
Annual mandated improper payments audit
Internal controls, continuous assessment and risk management
Annual mandated financial statements audits
Audits of costs claimed by grantees and contractors
Grant and contract administration
Maximizing cost efficiencies and process improvement
Capital investments in information technology, equipment, facilities and other items
Technological changes create transformation opportunities
Annual mandated travel card program, including risk assessment
Annual mandated purchase card and convenience check program, including risk
assessment
Mandated Toxic Substances Control Act (TSCA) fees assessment in accordance with the
Digital Accountability and Transparency (DATA) Act
Efficiency and effectiveness of collection and payment processes
Efficient Processes and Use of Resources
•	Management of Brownfields Program
•	Partnering or coordination with other agencies to maximize efficiencies
Opportunities to reduce duplication, overlap and fragmentation within EPA
Grant, Interagency Agreement Grant, and Interagency Agreement Management
Efficiency and Effectiveness of Human Capital Management Programs
Ensuring the Integrity of EPA Information
Protection from advanced persistent threats to steal/modify data
Agency efforts to enhance its capability to respond to cyber-attacks
Cybersecurity/infrastructure development; and assessment of processes to ensure
protection and security of information systems from fraud, waste and abuse
File server security
Processes for Managing Background Investigations and Plan of Action and Milestones
Annual mandated audit of compliance with the Federal Information Security
Modernization Act
Oversight of Chief Information Officer's responsibilities under the Federal Information
Technology Acquisition Reform Act
Mandated readiness reviews of agency DATA act implementation efforts
Assessing Risk Management and Performance Measurement
Implementation of Federal Managers Financial Integrity Act, Federal Information Security
Management Act and Government Performance and Results Act
Disaster response and homeland security and emergency preparedness and response
Construction grants and revolving loan funds awarded to states and territories
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Review of contractor federal performance
Assistance agreements related to cleanup and Brownfields
Assessing Program Integrity. Results. Oversight Enforcement
Evaluation of the Management Audit Tracking System
Evaluation of the Implementation of the Toxic Substances Control Act
Oversight of Clean Water State Revolving Loan Funds
Accessing EPA's policy, procedures, and internal controls to prevent or reduce improper
computer use
Evaluations of EPA's programs and activities to protect human health and the environment
through progress toward air quality goals and compliance with requirements
Evaluation of EPA's programs and adherence to requirements to protect and restore water
that sustains human health and the environment
Evaluation of EPA's programs, activities, requirements and initiatives to protect human
health and the environment through hazardous waste cleanup, waste management, accident
prevention and emergency response
Evaluations of EPA's programs and requirements to protect human health and the
environment from chemical risks, including implementation of the TSCA
Evaluation of controls and processes in EPA's research and development programs that
support EPA's core mission to protect human health and the environment
Investigations
The Office of Investigations' (01) mission is to conduct criminal, civil, and administrative
investigations of fraud, waste and abuse and serious misconduct within EPA's programs, projects,
and resources. 01 investigations are worked in conjunction with the U.S. Department of Justice,
as well as state and local prosecutors, for criminal and civil litigation or with EPA management
for administrative action. 01 currently investigates the following: 1) fraudulent practices in
awarding, performing, and paying EPA contracts, grants, or other assistance agreements; 2)
program fraud or other acts that undermine the integrity of, or confidence in EPA programs, or
create an imminent environmental risk; 3) laboratory fraud relating to data, and false claims for
erroneous laboratory results that undermine the basis for decision-making, regulatory compliance,
or enforcement actions; 4) violent or criminal threats directed against EPA employees or facilities;
5) criminal conduct or serious administrative misconduct by EPA employees; and 6) intrusions
into and attacks against EPA's network supporting program data, as well as incidents of computer
misuse and theft of intellectual property or sensitive/proprietary data. Special attention will be
directed towards identifying the tactics, techniques, and procedures that are being utilized by
cybercriminals to obtain EPA information.
Finally, the 01 often makes observations or "lessons learned" for EPA's management to reduce
the Agency's vulnerability to criminal activity. The results of 01's investigations are published
and can serve as a deterrent to future misconduct. In addition, the 01's investigations provide
measurable results wherein recovery and restitution of financial losses are achieved and
administrative actions are taken to prevent those involved from further participation in any of
EPA's programs or operation.
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Follow-up and Policy/Regulatory Analysis
To further promote economy, efficiency and effectiveness, the OIG will conduct follow-up
reviews of agency responsiveness to the OIG's recommendations to determine if appropriate
actions have been taken and intended improvements have been achieved. This process will serve
as a means for keeping Congress and EPA leadership apprised of accomplishments and
opportunities for needed corrective actions, and facilitate greater accountability for results from
the OIG operations.
Additionally, as directed by the IG Act (as amended), the OIG also conducts reviews and analysis
of proposed and existing policies, rules, regulations and legislation to identify vulnerability to
waste, fraud and abuse. These reviews also consider possible duplication, gaps or conflicts with
existing authority, leading to recommendations for improvements in their structure, content and
application.
Performance Measure Targets:
(35C) Return on the annual dollar investment, as a percentage of the OIG budget,
from audits and investigations.
FY 2018
Target
FY 2019
Target
160
160

(35B) Environmental and business recommendations or risks identified for
corrective action.
FY 2018
Target
FY 2019
Target
460
460

(35A) Environmental and business actions taken for improved performance or risk
reduction.
FY 2018
Target
FY 2019
Target
196
196

(35D) Criminal, civil, administrative, and fraud prevention actions.
FY 2018
Target
FY 2019
Target
87
75
FY 2019 Change from FY 2018 Annualized Continuing Resolution (Dollars in Thousands):
•	(+$5,542.0) This change to fixed and other costs is an increase due to the recalculation of
base workforce costs for existing FTE due to adjustments in salary, essential workforce
support and benefit costs.
•	(-$9,274.0/ -66.6 FTE) This program change is a reduction which will focus the amount of
audits, program evaluations and investigative case work on the highest priority work to
ensure the protection of critical environmental resources and the health and safety of the
American people.
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Statutory Authority.
Inspector General Act, as amended; Inspector General Reform Act.
Inspector General Reform Act:
The following information is provided pursuant to the requirements of the Inspector General
Reform Act:
•	the aggregate budget request from the Inspector General for the operations of the OIG is
$62 million ($53 million Inspector General; $9 million Superfund Transfer);
•	the aggregate President's Budget for the operations of the OIG is $46.2 million ($37.5
million Inspector General; $8.7 million Superfund Transfer);
•	the portion of the aggregate President's Budget needed for training is $700 thousand ($574
thousand Inspector General; $126 thousand Superfund Transfer);
•	the portion of the aggregate President's Budget needed to support the Council of the
Inspectors General on Integrity and Efficiency is $179 thousand ($143.2 thousand
Inspector General; $35.8 thousand Superfund Transfer).
"I certify as the Inspector General of the Environmental Protection Agency that the amount I have
requested for training satisfies all OIG training needs for FY 2019".
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