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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
2005-4-00056
April 19, 2005
Catalyst for Improving the Environment
Why We Did This Review
At the request of the
Environmental Protection
Agency (EPA), Region 10, we
conducted this examination to
express an opinion on the
reported outlays on the
Financial Status Reports, and
to determine whether the
recipient was managing its
grants in accordance with
applicable requirements.
Background
EPA awarded two General
Assistance Program grants to
the recipient totaling
$465,000. These grants were
for environmental capacity
development.
Wrangell Cooperative Association Reported Outlays
Under EPA Grants GA980448-01 and GA970335-01
What We Found
The recipient did not maintain a labor distribution system as required by Office of
Management and Budget (OMB) Circular A-87. Consequently, we questioned labor
and fringe benefit outlays of $140,275 and $59,823, respectively. We also
questioned unallowable travel and other outlays of $3,149 and $2,744, respectively.
Further, we noted that the recipient did not (1) submit timely and accurate
performance reports, and (2) draw down EPA grant funds based on immediate cash
needs.
What We Recommend
We recommend that EPA recover the Federal share questioned of $204,059 (the
totals of the four amounts mentioned above, minus a $1,932 offset). We also
recommend that if EPA provides any future grants to the recipient, that the recipient
(1) establish an adequate labor distribution system, as required by OMB Circular
A-87; (2) submit adequate performance reports; and (3) draw down EPA grant funds
for immediate cash needs only.
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/
20050419-2005-4-00056.pdf

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