^ PKO\&
U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
11-1-0156
March 10, 2011
Catalyst for Improving the Environment
Why We Did This Audit
The Food Quality Protection
Act requires that we perform
an annual audit of the
Pesticides Reregistration and
Expedited Processing Fund
(known as the FIFRA Fund)
financial statements.
Background
The U.S. Environmental
Protection Agency (EPA) is
responsible for reassessing the
safety of older pesticide
registrations against modern
health and environmental
testing standards. To expedite
this reregistration process,
Congress authorized EPA to
collect fees from pesticide
manufacturers. The fees are
deposited into the FIFRA
Fund. Each year, the Agency
prepares financial statements
that present financial
information about the fund,
along with information about
EPA's progress in
reregistering pesticides.
Fiscal Year 2010 and 2009 Financial Statements
for the Pesticides Reregistration and Expedited
Processing Fund
Opinion
We rendered an unqualified, or clean, opinion on EPA's Pesticides Reregistration
and Expedited Processing Fund financial statements for fiscal years 2010 and 2009,
meaning they are fairly presented and free of material misstatement.
Internal Control Significant Deficiency Noted
We noted one significant deficiency in internal controls. EPA misapplied federal
retirement benefit cost factors in calculating fiscal year 2010 imputed cost related
to the Civil Service Retirement System and the Federal Employees Retirement
System. Imputed costs are costs that are not fully reimbursed. This $340,772
understatement is material for the FIFRA Fund and, if not corrected, would result
in a qualification of FIFRA's financial statements. The Agency has corrected fiscal
year 2010 imputed costs in the FIFRA Fund financial statements.
Compliance With Applicable Laws and Regulations
The Agency was in compliance with applicable laws and regulations.
Agency Comments and Office of Inspector General Evaluation
The Office of the Chief Financial Officer and the Office of Chemical Safety and
Pollution Prevention concurred with our general conclusions that the financial
statements are fairly presented and free of material misstatements.
For further information,
contact our Office of
Congressional, Public Affairs
and Management at
(202) 566-2391.
The full report is at:
www.epa.gov/oia/reports/2011/
20110310-11-1-0156.pdf

-------