May 31, 2018
* • U.S. Environmental Protection Agency	18-P-0207
	 \ Office of Inspector General
At a Glance
Why We Did This Project
The U.S. Environmental
Protection Agency (EPA),
Office of Inspector General
(OIG), performed this audit to
determine whether the EPA
has achieved efficiencies,
savings and improved
customer service in agency
human resources (HR)
operations by establishing
three HR Shared Service
Centers (SSCs) in Cincinnati,
Ohio; Las Vegas, Nevada; and
Research Triangle Park, North
Carolina.
In 2004, the U.S. Office of
Personnel Management
launched the HR Line of
Business (LOB) initiative,
envisioning "government-wide,
modern, cost-effective,
standardized, and
interoperable" HR services to
address "duplicative HR
systems and processes across
the federal government." Per
the EPA's HR SSC intranet
site, the agency launched its
HR SSCs in 2008 "to provide
consistent and efficient human
resources services to all EPA
employees regardless of their
physical location."
This report addresses the
following:
• Operating efficiently and
effectively.
Send all inquiries to our public
affairs office at (202) 566-2391
or visit www.epa.gov/oiq.
Listing of OIG reports.
Operational Efficiencies of EPA's Human
Resources Shared Service Centers Not Measured
What We Found
We could not determine whether the EPA achieved
operational efficiencies, savings and improved
customer service with the 2008 implementation of
its HR SSCs. Also, as of January 2017, there was
a disparity in the number of HR staff in each region
and SSC, with no direct correlation between the number of EPA employees
serviced by each location and the number of HR staff employed at each location.
Without a baseline for HR
operations and HR staff,
the EPA is unable to
determine efficiencies in
HR operations.
Federal law and the HR LOB initiative require agencies to focus on reducing
costs, improving quality and achieving cost efficiencies. However, the EPA did
not establish baseline metrics for HR SSC performance and did not collect data
to assess HR SSC performance and efficiencies from 2014 to 2016. In addition,
the Office of Administration and Resources Management did not determine the
appropriate HR staffing levels needed for each region and did not provide
guidance on core staffing needs for regional HR functions. Without a baseline
and a plan on how to use performance measurement data, we cannot determine
whether the EPA is achieving efficiencies in operations, cost savings and
improved customer service.
Our audit also noted that some of the EPA's key HR policies were outdated, with
one policy dating back to the 1970s. Although Office of Management Budget
directives require agencies to streamline policy creation and monitor internal
controls, the EPA's Office of Human Resources did not adhere to its HR policy
update agenda and did not regularly update its HR policies and procedures. As a
result, SSC managers often self-interpret federal guidance and policies, thus
creating inefficiencies.
Recommendations and Planned Agency Corrective Actions
We recommend that the Assistant Administrator for Administration and
Resources Management (1) develop a plan that establishes a baseline to
measure the future program operational efficiency of HR operations; (2) establish
a workgroup comprising regional and program representatives to develop a
baseline level of HR support necessary for each program and regional office; and
(3) review HR policies, prioritize the policies requiring updates, and update the
policies with stakeholder input.
The Office of Administration and Resources Management concurred with all of
our recommendations and provided acceptable corrective actions with milestone
dates. The proposed corrective actions for Recommendations 1 through 3, when
completed, will meet the intent of the recommendations.

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