United States
Environmental Protection Agency
FISCAL YEAR 2021
Justification of Appropriation
Estimates for the Committee
on Appropriations
Tab 05: Office of Inspector General
February 2020
EPA-190-S-20-001	www.epa.gov/ocfo

-------
Environmental Protection Agency
FY 2021 Annual Performance Plan and Congressional Justification
Table of Contents - Inspector General
Program Projects in IG	417
Audits, Evaluations, and Investigations	418
Audits, Evaluations, and Investigations	419
415

-------
416

-------
Environmental Protection Agency
FY 2021 Annual Performance Plan and Congressional Justification
APPROPRIATION: Inspector General
Resource Summary Table

(Dollars in Thousands)




FY 2021 Pres


Estimated
FY 2021
Budget v.

FY 2019
FY 2020
Pres
Estimated FY

Actuals
Enacted
Budget
2020 Enacted
Inspector General




Budget Authority
$39,929.8
$41,489.0
$39,825.0
-$1,664.0
Total Workyears
218.4
227.5
201.4
-26.1
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund account.
Bill Language: Inspector General
For necessary expenses of the Office of Inspector General in carrying out the provisions of the
Inspector General Act of1978, $39,825,000, to remain available until September 30, 2022.
Program Projects in IG

[Dollars in Thousands)
Program Project
FY 2019
Actuals
Estimated
FY 2020
Enacted
FY 2021
Pres
Budget
FY 2021 Pres
Budget v.
Estimated FY
2020 Enacted
Audits, Evaluations, and
Investigations




Audits, Evaluations, and
Investigations
$39,929.8
$41,489.0
$39,825.0
-$1,664.0
TOTAL IG
$39,929.8
$41,489.0
$39,825.0
-$1,664.0
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund account.
417

-------
Audits, Evaluations, and Investigations
418

-------
Audits, Evaluations, and Investigations
Program Area: Audits, Evaluations, and Investigations
Goal: Greater Certainty, Compliance, and Effectiveness
Objective(s): Improve Efficiency and Effectiveness

(Dollars in Thousands)

FY 2019
Actuals
Estimated
FY 2020
Enacted
FY 2021 Pres
Budget
FY 2021 Pres
Budget v.
Estimated FY 2020
Enacted
Inspector < icncral
S.W.V2V.S
S4I.4SV.V
SJW.X'25. It
-S!.M>4M
Hazardous Substance Superfond
$8,875.9
$11,586.0
$9,747.0
-$1,839.0
Total Budget Authority
$48,805.7
$53,075.0
$49,572.0
-$3,503.0
Total Workyears
268.7
270.0
242.0
-28.0
Program Project Description:
EPA's Office of Inspector General (OIG) is an independent office of the U.S. Environmental
Protection Agency, created by the Inspector General Act of 1978, as amended. In support of that
independence, Congress provides the OIG with a separate appropriation, within the Agency's
budget. The vision of the OIG is to be a premier oversight organization trusted to speak the truth,
promote good governance, and contribute to improved human health and the environment. This
vision is met through the mission of the OIG. The OIG conducts and supervises independent audits,
evaluations, and investigations while reviewing existing and proposed legislation and regulations
relating to the programs and operations of the Agency; provides leadership and coordination;
makes evidence-based policy recommendations for activities designed to promote economy,
efficiency and effectiveness; and works to prevent and detect waste, fraud, and abuse in Agency,
grantee, and contractor operations.
The OIG activities add value and enhance public trust and safety by keeping the head of the
Agency and Congress fully and immediately informed of problems and deficiencies, and the
necessity for and progress of corrective actions. The OIG activities also prevent and detect fraud
in EPA's programs and operations, including financial fraud, laboratory fraud, and cybercrime.
The OIG consistently provides a significant positive return on investment to the public in the form
of recommendations for improvements in the delivery of EPA's mission, reduction in operational
and environmental risks, costs savings and recoveries, and improvements in program efficiencies
and integrity.1 The audit, evaluations and inspection, and investigative services programs are
directly supported through the OIG's management and administrative functions of information
technology, human resources, human capital, budget, planning and performance, legal advice and
counseling, report publishing and communications, and congressional outreach. EPA's OIG plans
its work with a focus on identifying and influencing resolution of the Agency' s maj or management
challenges and in support of the Agency's strategic goals and objectives in the
FY 2018 - 2022 EPA Strategic Plan.
1 For more information, please refer to: https://www.epa.gov/office-inspector-general/epa-oig-organization-profile.
419

-------
In addition, EPA's Inspector General was designated by Congress in FY 2004 to serve as the
Inspector General for the U.S. Chemical Safety and Hazard Investigation Board (CSB) and
provides the full range of audit and investigative services specified by the Inspector General Act,
as amended. Specifically, the OIG conducts required audits of the CSB's financial statements and
of CSB's compliance with the Federal Information Security Management Act. In addition, the OIG
performs audits and evaluations of the CSB's programmatic and management activities and
follow-up on prior audit recommendations.
FY 2021 Activities and Performance Plan:
Work in this program directly supports Goal 3/Objective 3.5, Improve Efficiency and
Effectiveness in the FY 2018 - 2022 EPA Strategic Plan. The activities of the OIG are supported
through the core value to be the best in public service through customer service, integrity, and
accountability. The summary of this value is to contribute to improved EPA and CSB programs
and operations protecting human health and the environment, and enhancing safety; conduct
audits, evaluations, and investigations that enable EPA and the CSB to improve business practices
and accountability to meet stakeholders' needs. The OIG assists the Agency in its efforts to develop
and enforce regulations that implement environmental laws by making recommendations to
improve program operations; save taxpayer dollars; reduce the potential for fraud, waste, and
abuse; respond to cybercrimes; and resolve previously identified major management challenges
and internal control weaknesses resulting in cleaner air, land, and water, and ensured chemical
safety for America. In FY 2021, the OIG will target initiatives supporting EPA's six National
Compliance Initiatives; increase its agility to assess emerging environmental threats; increase its
use of data analytics, business analytics, and business intelligence to better target resources to
address high risk, high vulnerability areas of interest; employ best practices in support of
improving efficiency, effectiveness, accountability, and monetary benefits; focus on measurable
impact and will increase its return on investment to the American public.
The OIG carries out its statutory mission by conducting many types of audits, evaluations, and
investigations for both EPA and the CSB. Plans are implemented through audits, evaluations,
investigations, inspections, and follow-up reviews in compliance with the Inspector General Act
(as amended), the Generally Accepted Government Accounting Standards, and the Council of
Inspectors General on Integrity and Efficiency's Quality Standards for Federal Offices of
Inspector General. The OIG conducts the following types of assignments focused on efficiency
and program operations: program performance, including a focus on the award and administration
of grants and contracts; statutorily mandated audits; financial reviews of grantees and contractors;
and information resources management. In addition, program performance audits, evaluations and
inspections are conducted in the areas of EPA's mission objectives for improving and protecting
the environment and public health, including: air; water; land cleanup and waste management;
toxics, chemical management, and pollution prevention; and environmental research programs.
The investigative mission of the OIG continues to evolve in conducting criminal, civil, and
administrative investigations into fraud and serious misconduct within EPA programs and
operations that undermine the organization's integrity and public trust, or create an imminent risk
or danger. The OIG investigations are coordinated with the Department of Justice and other
federal, state, and local law enforcement entities. These investigations often lead to successful
420

-------
prosecution and civil judgments wherein there is a recovery and repayment of financial losses.
Major areas of investigative focus include: financial fraud, program integrity, threats to the
Agency's resources, employee integrity, cyber-crimes, and theft of intellectual or sensitive data.
The ten directorates within the Office of Audit and Evaluation are responsible for independent
oversight of EPA and CSB programs and recommending improvement to programs and operations.
A significant portion of audit resources will be devoted to statutorily mandated work assessing the
financial statements of EPA, as required by the Chief Financial Officers Act and the Accountability
of Tax Dollars Act of2002, respectively. The OIG work also will include assessing the information
security practices of EPA as required by the Federal Information Security Management Act. The
OIG will examine the delivery and performance of national programs, as well as specific cross-
regional and single region or place based issues that represent a risk to public health and the
environment in response to stakeholder concerns.
EPA's OIG continues to balance its workload with the capacity of a reduced workforce, while
meeting statutorily-mandated requirements and delivering a strong return on investment. Three of
the four EPA OIG Annual Performance Goals reported to Congress by way of the Semiannual
Report are being exceeded, however, goals were adjusted to align with available resources. Based
on prior work, cross-agency risk assessment, Agency challenges, future priorities, and extensive
stakeholder input, the OIG will focus its resources on efforts in the following areas of concentration
during FY 2021:
Audits and Evaluations
Sound and Economical Financial Management
	Annual mandated improper payments audit
	Internal controls
	Annual mandated financial statements audits
	Audits of costs claimed by grantees and contractors
	Grant and contract administration
	Maximizing cost efficiencies and process improvement
	Capital investments in information technology, equipment, facilities, and other items
	Technological changes that create transformation opportunities
	Annual mandated travel card program, including risk assessment in accordance with the
Government Charge Card Abuse Prevention Act of 2012
	Annual mandated purchase card and convenience check program, including risk
assessment
	Annual mandated toxic substances fees in accordance with the Pesticide Registration
Improvement Act and Federal Insecticide, Fungicide, and Rodenticide Act
	Efficiency and effectiveness of collection and payment processes
Efficient Processes and Use of Resources
	Management of the Brownfields Program
	Partnering or coordination with other agencies to maximize efficiencies
	Opportunities to reduce duplication, overlap, and fragmentation within EPA
421

-------
	Grant, Interagency Agreement Grant, and Interagency Agreement Management
	Efficiency and effectiveness of human capital management programs
Ensuring the Integrity of EPA Information
	Protection from advanced persistent threats to steal/modify data
	Agency efforts to enhance its capability to respond to cyber-attacks
	Cybersecurity/infrastructure development; and assessment of processes to ensure
protection and security of information systems from fraud, waste, and abuse
	File server security
	Processes for Managing Background Investigations and Plan of Action & Milestones
(POA&Ms)
	Annual mandated audit of compliance with the Federal Information Security
Modernization Act
	Oversight of Chief Information Officer's responsibilities under the Federal Information
Technology Acquisition Reform Act
	Mandated readiness reviews of Agency Digital Accountability and Transparency Act of
2014
Assessing Risk Management and Performance Measurement
	Implementation of Federal Managers Financial Integrity Act, Federal Information Security
Management Act, and Government Performance and Results Act
	Disaster response and homeland security and emergency preparedness and response
	Construction grants and revolving loan funds awarded to states and territories
	Review of contractor federal performance
	Assistance agreements related to cleanup and Brownfields
Assessing Program Integrity. Results. Oversight Enforcement
	Evaluation of the Management Audit Tracking System
	Evaluation of the implementation of the Toxic Substances Control Act (TSCA)
	Oversight of Clean Water State Revolving Loan Funds
	Assess EPA's policy, procedures, and internal controls to prevent or reduce improper
computer use
	Evaluations of EPA's programs and activities to protect human health and the environment
through progress toward air quality goals and compliance with requirements
	Evaluation of EPA's programs and adherence to requirements to protect and restore water
that sustains human health and the environment
	Evaluation of EPA's programs, activities, requirements and initiatives to protect human
health and the environment through hazardous waste cleanup, waste management, accident
prevention and emergency response
	Evaluations of EPA's programs and requirements to protect human health and the
environment from chemical risks, including implementation of the TSCA
	Evaluation of controls and processes in EPA's research and development programs that
support EPA's core mission to protect human health and the environment
422

-------
Investigations
The Inspector General Act identifies the Assistant Inspector General for Investigations as
responsible for developing and implementing an investigative program that furthers OIG
objectives. The OIG's Office of Investigations (01) conducts independent investigations to detect
and prevent fraud, waste and abuse, while protecting the integrity of EPA and CSB programs,
operations and resources. Investigations focus on allegations of criminal activity and serious
misconduct in EPA and CSB programs and operations. The OIG's investigative process is mostly
reactive, and the 01 performs its proactive work strategically as opportunities and resources allow.
Due to the reactive nature of the 01' s work, investigations are opened in accordance with priorities
set forth in the OIG Strategic Plan for FY 2018 - 2022 and in consideration of prosecutorial
guidelines established by U. S. Attorneys. OIG investigations are governed by thq Attorney General
Guidelines for Offices of Inspector General with Statutory Law Enforcement Authority and by the
Council of the Inspectors General on Integrity and Efficiency's Quality Standards for
Investigations, as well as other federal statutes and regulations.
The investigative mission of the OIG continues to evolve in conducting criminal, civil, and
administrative investigations into fraud and serious misconduct within EPA programs and
operations that undermine the organization's integrity and public trust, or create an imminent risk
or danger. Special Agents within the 01 are duly appointed federal criminal investigators and have
statutory authority to carry firearms, make arrests, execute search and seizure warrants, and
perform other law enforcement duties. Special Agents have been trained as armed law enforcement
first responders and are responders in the event of an active shooter or terrorist attack impacting
EPA and CSB facilities. The 01 often collaborates with other law enforcement entities and external
stakeholders to enhance the effectiveness of its work. The OIG investigations are coordinated with
the Department of Justice and other federal, state, and local law enforcement entities for criminal
and civil litigation or with EPA management for administrative action. Investigative efforts often
lead to successful criminal convictions, administrative sanctions, civil monetary penalties and
judgments wherein there is a recovery and repayment of financial losses. Additionally, during and
at the conclusion of investigations, the 01 works with the Suspension and Debarment Office within
EPA, "whose actions protect the government from doing business with entities that pose a business
risk to the government."
The OIG plays a critical oversight role helping to ensure that EPA and CSB funds are properly
expended and not subject to fraud, waste, or abuse. Major areas of investigative focus in this
oversight include: 1) financial fraud relating to Agency grants and contracts concerning State
Revolving Funds, interagency and cooperative agreements, and fraud related to mischarging,
defective pricing, defective products and collusion on contracts; 2) employee integrity and alleged
criminal conduct or serious administrative misconduct focusing on activities that could undermine
the integrity of Agency programs involving safety and public health, and erode confidence in the
Agency pursuing its mission; 3) threats directed against EPA and CSB employees, facilities, and
assets involving threats to the physical assault upon such employees and contractors; 4) program
integrity focusing; 5) EPA's OIG hotline, deterrence and oversight focusing on managing EPA's
OIG hotline program, which receives complaints, referrals and allegation of fraud, waste, abuse,
mismanagement and misconduct involving EPA and the CSB; 6) other investigative activity for
423

-------
which the focus is on providing support to the OIG program offices and participating in
multiagency coordination on urgent matters facing EPA and the Nation.
Finally, the 01 often makes observations or "lessons learned" for EPA's management to reduce
the Agency's vulnerability to criminal activity. The results of OI's investigations are published in
the OIG's semiannual reports and can serve as a deterrent to future misconduct. In addition, the
OI's investigations provide measurable results wherein recovery and restitution of financial losses
are achieved, and administrative actions are taken to prevent those involved from further
participation in any of EPA's programs or operation.
The Office of Investigations is proposing to realign its Field Operations Directorate by reducing
the number of field offices from four to three and realigning the offices that are currently under
the purview of the Chicago, Illinois field office to the Atlanta, Georgia and Washington, DC field
offices. The employees in the Chicago office will report to the Washington field office and the
employees in the Dallas and Kansas City offices, who currently report to the Chicago office, will
report to the Atlanta office. Thus, none of the offices will be closed, and each of the three field
offices will continue to have a GS-14 supervisor, a GS-15 supervisor, and a team of Special
Agents. Once fully implemented and operational, this realignment will improve the efficiency,
effectiveness and consistency of OI's operations by allowing the Field Operations Directorate to
better oversee its field operations and investigations. The realignment will move 01 towards an
appropriate manager-to-staff ratio.
Follow-up and Policy/Regulatory Analysis
To further promote economy, efficiency, and effectiveness, the OIG will conduct follow-up
reviews of Agency responsiveness to the OIG's recommendations to determine if appropriate
actions have been taken and intended improvements have been achieved. This process will serve
as a means for keeping Congress and EPA leadership apprised of accomplishments and
opportunities for needed corrective actions, and facilitate greater accountability for results from
the OIG operations.
Additionally, as directed by the IG Act (as amended), the OIG also conducts reviews and analysis
of proposed and existing policies, rules, regulations and legislation to identify vulnerability to
waste, fraud and abuse. These reviews also consider possible duplication, gaps or conflicts with
existing authority, leading to recommendations for improvements in their structure, content, and
application.
Performance Measure Targets:
EPA's FY 2021 Annual Performance Plan does not include annual performance goals specific to
this program.
FY 2021 Change from Estimated FY 2020 Enacted Budget (Dollars in Thousands):
 (+$2,963.0) This change is an increase due to the recalculation of base payroll costs.
424

-------
	(-$4,627.0 / -26.1 FTE) This net program change is a decrease to address costs associated
with the reduction in FTEs and other nonpay changes for all activities across the Office of
the Inspector General.
Statutory Authority:
Inspector General Act of 1978.
Inspector General Reform Act:
The following information is provided pursuant to Section 6(g)(2) of the Inspector General Reform
Act:
	The aggregate budget request from the Inspector General for the operations of the OIG is
$59.3 million ($48.6 million Inspector General; $10.7 million Superfund Transfer)
	The aggregate President's Budget for the operations of the OIG is $49.6 million ($39.8
million Inspector General; $9.8 million Superfund Transfer)
	The portion of the aggregate President's Budget needed for training is $500 thousand ($410
thousand Inspector General; $90 thousand Superfund Transfer)
	The portion of the aggregate President's Budget needed to support the Council of the
Inspectors General on Integrity and Efficiency is $122 thousand ($100 thousand Inspector
General; $22 thousand Superfund Transfer)
"I certify as the Inspector General of the Environmental Protection Agency that the amount I have
requested for training satisfies all OIG training needs for FY 2021 "
425

-------
426

-------