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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
2007-1-00070
May 30, 2007
Why We Did This Audit
The Food Quality Protection
Act requires that we perform
an annual audit of the
Pesticides Reregistration and
Expedited Processing Fund
(known as FIFRA) financial
statements.
Background
The U.S. Environmental
Protection Agency (EPA) is
responsible for reassessing the
safety of older pesticide
registrations against modern
health and environmental
testing standards. To expedite
this reregistration process,
Congress authorized EPA to
collect fees from pesticide
manufacturers. The fees are
deposited into the FIFRA
Fund. Each year, the Agency
prepares financial statements
that present financial
information about the Fund,
along with information about
EPA's progress in
reregistering pesticides.
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/2007/
20070530-2007-1 -00070.pdf
Catalyst for Improving the Environment
Fiscal Year 2006 and 2005 Financial Statements
for the Pesticides Reregistration and Expedited
Processing Fund
EPA Receives Unqualified Opinion
We rendered an unqualified, or clean, opinion on EPA's Pesticides Reregistration
and Expedited Processing Fund Financial Statements for fiscal years 2006 and
2005, meaning that they were fairly presented and free of material misstatement.
Internal Control Reportable Conditions Noted
We noted the following two reportable conditions:
•	EPA materially understated the FIFRA payroll unfunded leave accrual and
related expenses reported in the draft financial statements for fiscal year 2006.
The Agency's practice of transferring employees and related expenses and
liabilities from FIFRA to Environmental Programs and Management (EPM)
created the situation, which led to the misstatement. Just prior to year-end, the
Agency transferred a significant number of employees from FIFRA to EPM,
decreasing the base upon which the accrual was calculated, and leading
directly to the misstatement. As a result, FIFRA liabilities and related
expenses were understated by $1,964,312 in the draft financial statements.
•	EPA's Washington Finance Center recorded adjustments to entries in the
Integrated Financial Management System, such as schedules of collections,
that were not supported by sufficient documentation.
Compliance With Laws and Regulations Noted
We tested compliance with those laws and regulations that could either materially
affect the FIFRA Fund financial statements, or that we considered significant to the
audit. The objective of our audit, including our tests of compliance with applicable
laws and regulations, was not to provide an opinion on overall compliance with
such provisions. Accordingly, we do not express such an opinion. We did not
identify any noncompliances that would result in a material misstatement to the
audited financial statements.
Agency Comments and Office of Inspector General Evaluation
In a memorandum dated May 10, 2007, the Office of the Chief Financial Officer
and the Office of Prevention, Pesticides, and Toxic Substances responded to our
draft report.

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