U.S. Environmental Protection Agency	08-2-0142
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¦ — - % Office of Inspector General
At a Glance
April 28, 2008
Catalyst for Improving the Environment
Why We Performed These
Agreed-Upon Procedures
We performed agreed-upon
procedures on the U.S.
Environmental Protection
Agency (EPA) Fiscal Year
(FY) 2008 first quarter
Financial Statements. We did
so to assist EPA in evaluating
whether its quarterly Financial
Statements were compiled
consistent with the Treasury
Standard General Ledger
Crosswalk, and to identify
significant fluctuations in
financial line balances from
the previous year.
Agencies submit unaudited
interim Financial Statements
to the Office of Management
and Budget 21 days after the
end of each of the first three
quarters of the fiscal year.
Agencies should include
management's explanation of
significant variances in types
of assets, liabilities, costs,
revenues, obligations, and
outlays, along with the
submitted statements.
Agreed-Upon Procedures on EPA's Fiscal Year 2008
First Quarter Financial Statements
What We Found
Below are the results of our performing the agreed-upon procedures:
•	The Financial Statements generated by the Office of Inspector General (OIG)
agreed with EPA's FY 2008 first quarter Financial Statements for the
Consolidated Balance Sheet, Consolidated Statements of Net Cost and
Changes in Net Position, Combined Statement of Budgetary Resources and
Statement of Custodial Activity, Statement of Changes in Net Position for
Earmarked Funds, and Consolidated Statement of Net Cost by Goal.
•	We found differences between the ending balances for the FY 2008
ProSystem prepared adjusted trial balance and EPA's prepared trial balance.
The differences stemmed from an adjustment done by the Department of
Health and Human Services at the end of FY 2007 that was either not sent to
or received by the Agency.
•	EPA's Financial Statement Preparation Guide for the FY 2008 Financial
Statements complies with Office of Management and Budget Circular A-136
in its entirety. We identified three items that should be updated.
•	We identified two differences between EPA's Financial Statement Crosswalk
and the Treasury United States Standard General Ledger Crosswalk guidance.
There is no financial impact from these differences.
•	EPA's FY 2007 post-closing instructions do not agree with EPA's Year End
Closing Table and Treasury's Closing Instructions.
•	The reversal process did not follow the Agency's Financial Statement
Preparation Guide for the FY 2008 first quarter Financial Statements.
The agreed-upon procedures do not constitute an audit of the quarterly Financial
Statements or any part thereof, the objective of which would be the expression of
an opinion on the quarterly Financial Statements or any part thereof.
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: