*. U.S. Environmental Protection Agency 19~n~0167 ^ ^fflAO /\f In^nAA^AI* ^akiakoI Jufl© 4, 2019 . u.o. ciiviiuiimeiiicii nuietu ^ ^ \ Office of Inspector General ® i At a Glance Why We Did This Project The U.S. Environmental Protection Agency's (EPA's) Office of Inspector General (OIG) operates and maintains a system of quality controls designed to provide reasonable assurance that personnel performing audit or evaluation functions comply with all generally accepted government auditing standards (GAGAS) and established OIG policies and procedures. Quality assurance staff from the OIG's Office of Audit and Evaluation report annually on systemic issues identified during referencing and compliance monitoring reviews. They also make observations on compliance with GAGAS and OIG policy. In addition, GAGAS requires that each organization performing audits in accordance with these standards have an external peer review. Peer reviews of the OIGs must be performed at least once every 3 years. This report addresses the following EPA OIG goal: • Improve OIG processes, resource allocation and accountability to meet stakeholder needs. Address inquiries to our public affairs office at (202) 566-2391 or OIG WEBCOMMENTS@epa.oiq. Quality Assurance Review of EPA OIG Audit Assignments Completed in Fiscal Year 2018 What We Found Internal reviews of EPA OIG audit assignments completed in fiscal year (FY) 2018 found that the OIG complied with GAGAS and substantially complied with OIG policies and procedures. An external peer review conducted in FY 2018 also found that the EPA OIG's system of quality control was suitably designed and complied with, providing the OIG with reasonable assurance that audits are performed and reported in conformity with GAGAS. OIG audit reports issued in FY 2018 demonstrated high levels of compliance with OIG quality assurance procedures, receiving average compliance scores of 94 percent. As part of our internal quality review, we evaluated the OIG's audit activities, from the preliminary research to the final report. Projects with reports issued in FY 2018 complied with GAGAS and generally complied with OIG policies. The average compliance monitoring score was 94.31 out of 100. Similar to FY 2017, the only systemic issue identified was the estimation and approval of project time frames and cost estimates. The issue continued to occur because the recommendation from the FY 2017 quality control review was not implemented in FY 2018. When reports are not timely and current, their relevance and usefulness can be diminished. In addition, our internal quality review assessed the OIG's compliance with GAGAS independence and competence standards, and we did not identify any significant issues. However, the office should ensure that it is maintaining all personal impairment forms for record-keeping purposes. Recommendations We recommend that the Assistant Inspector General for Audit and Evaluation finalize the planned corrective actions to address the FY 2017 quality control review recommendation. We also recommend that the Assistant Inspector General for Audit and Evaluation establish internal controls to verify that personal impairment forms are timely completed and readily accessible for all staff. Assistant Inspector General Response The Assistant Inspector General for Audit and Evaluation agreed with the findings and recommendations and provided milestone dates for implementing the recommendations. List of OIG reports. ------- |