01 U.S. Environmental Protection Agency 10-2-0166 f KM ^ Hffiro of Incnortnr f^onoral July 19, 2010 * U • O • L. I I V 11 U llllldlldl I I UlCvll % Office of Inspector General At a Glance 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) 2010 Second 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 (OMB) 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 or amounts of assets, liabilities, costs, revenues, obligations, and outlays, along with the submitted statements. Agreed-Upon Procedures on EPA's Fiscal Year 2010 Second Quarter Financial Statements What We Found We performed certain agreed-upon procedures on the Agency's FY 2010 Second 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 2009 Second 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 10 fluctuations in its financial statements and submitted them to OMB. 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 support. One FY 2009 on-top was not reversed completely in FY 2010. There were differences between the FY 2010 beginning balance and FY 2009 ending balances due to adjustments the Agency made during the second quarter. The elimination and consolidation entries appear reasonable and complete. 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, Public Affairs and Management at (202) 566-2391. To view the full report, click on the following link: www.epa.aov/oia/reports/2010/ 20100719-10-2-0166.pdf ------- |