ED U.S. Environmental Protection Agency 11-2-0699 . u.o. ciiviium 1 mbillet 1 riuieuu \ Office of Inspector General ® I At a Glance I* -km \ Hffiro of Incnortnr f^onoral September 23, 2011 Catalyst for Improving the Environment Why We Performed These Agreed-Upon Procedures We performed agreed-upon procedures on the U.S. Environmental Protection Agency's (EPA's) Fiscal Year (FY) 2011 Third Quarter Financial Statements. We did so to assist EPA in evaluating whether its quarterly financial statements were compiled consistently with the Treasury United States Standard General Ledger Crosswalk, and to identify significant fluctuations in financial line item balances from the previous year. Background 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. Comparative interim financial statements are limited to a Balance Sheet, Statement of Net Costs, and Statement of Budgetary Resources. For further information, contact our Office of Congressional, Public Affairs and Management at (202) 566-2391. The full report is at: www.epa.aov/oia/reports/2011/ 20110923-11 -2-0699.pdf Agreed-Upon Procedures on EPA's Fiscal Year 2011 Third Quarter Financial Statements What We Found We performed certain agreed-upon procedures on the Agency's FY 2011 Third Quarter Financial Statements. We compared the statements with EPA's crosswalk, recomputed them for mathematical accuracy, and compared them with balances separately generated by us. Below are the results of our performance of the agreed-upon procedures: • The financial statements generated by the Office of Inspector General agreed with EPA's FY 2011 Third Quarter Financial Statements for the Consolidated Balance Sheet, Consolidated Statements of Net Cost, Net Cost by Goal, Consolidating Statement of Changes in Net Position (including Earmarked Funds), Combined Statement of Budgetary Resources, and Statement of Custodial Activity. • The Agency identified 13 fluctuations in its financial statements and submitted them to the Office of Management and Budget. Our analysis identified 12 additional significant variances. • We found that EPA's Treasury Symbols were in compliance with Statement of Federal Financial Accounting Standards 27. • We found that the on-top entry to record child agency balances agreed with the child trial balance support. • We found that the Agency properly reversed the FY 2010 on-tops in FY 2011. • The elimination and consolidation entries appear reasonable and complete. • No differences were found in the comparison of the FY 2011 beginning balances to the FY 2010 ending balances. 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. ------- |