x-^tD ST/lf. * *. U.S. Environmental Protection Agency 20-P-0335 § jyi \ Office of Inspector General September 29,2020 v At a Glance Why We Did This Project The U.S. Environmental Protection Agency provides financial assistance to states and tribes to help them develop and implement environmental programs. For example, the EPA's Indian Environmental General Assistance Program awards grants to federally recognized tribes and tribal consortia for planning, developing, and establishing environmental protection programs in Indian Country. The Office of Inspector General conducted this audit to determine whether the costs claimed under selected individual Indian tribal grants are reasonable, allocable, and allowable in accordance with applicable laws, regulations, and grant terms and conditions. This report addresses the following: • Operating efficiently and effectively. This project addresses a top EPA management challenge: • Overseeing states, territories, and tribes responsible for implementing EPA programs. Regions 1 and 5 Need to Require Tribes to Submit More Detaiied Work Pians for Grants What We Found EPA Region 1 and EPA Region 5 can improve internal controls for determining whether grant costs are reasonable, allowable, and allocable for the Passamaquoddy Tribe and the Fond du Lac Band Tribe by requiring them to submit more detailed work plans. Inadequate work plans in Regions 1 and 5 put tribal grants at risk for unsupported costs. Federal law and EPA policies require detailed work plans in the management and administration of grants. Without adequate controls and adherence to federal requirements, regional tribal grants are at risk, and the regions have limited assurance that costs charged to the grants were reasonable, allowable, and allocable. We found that work plans from these Tribes lacked adequate details regarding supply-related components, such as laptops and computer services, or funding amounts. We identified $22,868 in questioned costs. In Region 1, we identified $16,533 in questioned costs for the Passamaquoddy Tribe grant. In Region 5, we identified $6,335 in questioned costs for the Fond du Lac Band Tribe grant. Recommendations and Planned Agency Corrective Actions We recommend that the respective regional administrators require the Passamaquoddy Tribe in Region 1 and the Fond du Lac Band Tribe in Region 5 to submit detailed work plans that include estimated funding amounts for each work plan component, determine the allowability of unsupported costs identified during our audit, and recover the costs as appropriate. Regions 1 and 5 concurred with our recommendations and provided acceptable planned corrective actions and estimated completion dates. We consider the recommendations resolved with corrective actions pending. Address inquiries to our public affairs office at (202) 566-2391 or OIG WEBCOMMENTS@epa.gov. List of OIG reports. ------- |