^£DS7X • JL v I®/ U.S. Environmental Protection Agency Office of Inspector General At a Glance 19-F-0086 March 18, 2019 Why We Did This Project We performed this audit pursuant to the Hazardous Waste Electronic Manifest Establishment Act. The act requires the U.S. Environmental Protection Agency (EPA) to prepare, and the Office of Inspector General (OIG) to audit, the Hazardous Waste Electronic Manifest System Fund financial statements each year. Our primary objectives were to determine whether: • The 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 and regulations. The e-Manifest system has been designed to create a means to track off-site shipments of hazardous waste from a generator's site to the site of the receipt, and disposition of the hazardous waste. On June 30, 2018, the e-Manifest System was launched. This report addresses the following: • Operating efficiently and effectively. EPA's Fiscal Years 2017 and 2016 Hazardous Waste Electronic Manifest System Fund Financial Statements EPA Receives an Unmodified Opinion We rendered an unmodified opinion on the EPA's fiscal years 2017 and 2016 Hazardous Waste Electronic Manifest System Fund financial statements, meaning that the statements were fairly presented and free of material misstatements. Significant Deficiencies Noted We noted the following significant deficiencies: • The EPA overstated the e-Manifest fund's accrued liabilities. • The EPA did not provide adequate support for an e-Manifest contract payment. Compliance with Applicable Laws and Regulations We did not identify any instances of noncompliance that would result in a material misstatement to the audited financial statements. Recommendations and Agency Corrective Actions We recommend that the agency evaluate and revise its accrued liabilities methodology and adjust the financial statements to reverse the impact to the e-Manifest fund of amounts that cannot be directly matched to the fund. We also recommend that the agency maintain sufficient documentation to support that e-Manifest funds are used as intended. The agency agreed with our recommendations and completed all corrective actions. We found the fund's financial statements to be fairly presented and free of material misstatements. Send all inquiries to our public affairs office at (202) 566-2391 or visit www.epa.gov/oia. Listing of OIG reports. ------- |