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* *.	U.S. Environmental Protection Agency	20-F-0342
§ jyi \	Office of Inspector General	September 30,2020
v	At a Glance
Why We Did This Project
We performed this audit pursuant
to the Frank R. Lautenberg
Chemical Safety for the 21st
Century Act, which amends the
Toxic Substances Control Act.
The Lautenberg Act requires the
U.S. Environmental Protection
Agency to prepare and the Office
of Inspector General to audit the
TSCA Service Fee Fund financial
statements each year. Our
primary objectives were to
determine whether:
•	The financial statements were
fairly stated in all material
respects.
•	The EPA's internal controls
over financial reporting were
in place.
•	EPA management complied
with laws and regulations.
The TSCA Service Fee Fund has
been designed to defray up to
25 percent of the costs
associated with implementing
key TSCA provisions.
This report addresses the
following:
•	Operating efficiently and
effectively.
This report addresses a top EPA
management challenge:
•	Fulfilling mandated reporting
requirements.
•	Complying with internal control
(data quality; policies and
procedures).
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
Audit of EPA's Toxic Substances Control Act
Service Fee Fund Financial Statements for the
Period from Inception (June 22, 2016) through
September 30, 2018
EPA Receives an Unmodified Opinion
We rendered an unmodified opinion on the
EPA's Toxic Substances Control Act Service
Fee Fund financial statements for the period
from inception (June 22, 2016) through
September 30, 2018, meaning that the
statements were fairly presented and free of material misstatement.
We found the fund's
financial statements to be
fairly presented and free of
material misstatement.
Material Weakness Noted
The EPA overstated expenses from other appropriations by $8.4 million. We
found that the EPA made errors in multiple iterations of its calculation for
expenses from other appropriations.
Compliance with Applicable Laws and Regulations, Contracts,
and Grant Agreements
No significant matters involving compliance with applicable laws and
regulations, contracts, and grant agreements came to our attention during the
course of the audit.
TSCA Service Fees
The EPA began collecting TSCA service fees in fiscal year 2019.
Recommendations and Planned Agency Corrective Actions
We recommend that the chief financial officer (1) improve the management
review process for calculating expenses from other appropriations to be
consistent with EPA component financial statement audits and to ensure costs
support the TSCA Service Fee Fund activities and (2) establish written policies
and procedures so that expenses from other appropriations in component
audits reflect actual costs.
The EPA concurred with our recommendations and provided acceptable
corrective actions and estimated completion dates. We consider these
recommendations resolved with corrective actions pending.
List of OIG reports.

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