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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
19-F-0003
November 14, 2018
Why We Did This Review
We performed this audit in
accordance with the Government
Management Reform Act of
1994, which requires the U.S.
Environmental Protection
Agency's (EPA's) Office of
Inspector General (OIG) to audit
the financial statements prepared
by the agency each year. Our
primary objectives were to
determine whether:
•	The EPA's consolidated
financial statements were
fairly stated in all material
respects.
•	The EPA's internal controls
over financial reporting were
in place.
•	EPA management complied
with applicable laws,
regulations, contracts and
grant agreements.
The requirement for audited
financial statements was enacted
to help bring about improvements
in agencies' financial
management practices, systems
and control so that timely,
reliable information is available
for managing federal programs.
This report addresses the
following:
• Operating efficiently and
effectively.
Send all inquiries to our public
affairs office at (202) 566-2391
or www.epa.gov/oia.
Listing of OIG reports.
EPA's Fiscal Years 2018 and 2017
Consolidated Financial Statements
EPA Receives an Unmodified Opinion
We rendered an unmodified opinion on the
EPA's consolidated financial statements for
fiscal years 2018 and 2017, meaning they were
fairly presented and free of material
misstatement.
Internal Control Material Weakness and
Significant Deficiencies Noted
We noted the following material weakness:
•	The EPA's accounting for unearned revenue for Superfund special
accounts continues to be a material weakness.
We noted the following significant deficiencies:
•	Additional efforts are needed to resolve cash differences with the
U.S. Department of the Treasury.
•	The EPA misstated uncollectible debt.
•	The EPA improperly increased accounts receivable and related revenue.
•	The EPA materially overstated earned revenue.
•	The EPA improperly processed General Services Administration
rent payments.
•	The EPA should restrict access to computer rooms with financial and
mixed-financial systems.
•	The EPA needs to perform a documented evaluation on upgrading
equipment used to implement physical environmental controls at the
National Computer Center.
Compliance with Laws and Regulations
We did not note any significant noncompliance with laws and regulations.
Recommendations and Planned Agency Corrective Actions
The EPA agreed with Recommendations 1 through 9 of our report and has
either implemented corrective actions or provided an estimated time frame
for completion. The agency disagreed with Recommendations 10 through 15,
citing the need for clarifying information. EPA management set up a
November 26, 2018, meeting with the OIG to discuss these findings. We
consider Recommendations 10 through 15 unresolved pending the agency's
response to the final report.
We found the EPA's
financial statements to be
fairly presented and free
of material misstatement.

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