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-. U.S. Environmental Protection Agency	20-F-0033
	 \ Office of Inspector General
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At a Glance
Why We Did This Audit
We performed this audit in
accordance with the Government
Management Reform Act of
1994, which requires the U.S.
Environmental Protection
Agency's (EPA's) Office of
Inspector General (OIG) to audit
the financial statements prepared
by the agency each year. Our
primary objectives were to
determine whether:
•	The EPA's consolidated
financial statements were
fairly stated in all material
respects.
•	The EPA's internal controls
over financial reporting were
in place.
•	EPA management complied
with applicable laws,
regulations, contracts and
grant agreements.
The requirement for audited
financial statements was enacted
to help bring about improvements
in agencies' financial
management practices, systems
and control so that timely,
reliable information is available
for managing federal programs.
This report addresses the
following:
• Operating efficiently and
effectively.
EPA's Fiscal Years 2019 and 2018 (Restated)
Consolidated Financial Statements
EPA Receives an Unmodified Opinion for FY 2019 and 2018
We found the EPA's
financial statements to be
fairly presented and free
of material misstatement.
We rendered an unmodified opinion on the
EPA's consolidated financial statements for
fiscal years 2019 and 2018 (restated), meaning
they were fairly presented and free of material
misstatement.
Internal Control Material Weakness and
Significant Deficiencies Noted
We noted the following material weakness:
•	The EPA needs to improve its financial statement preparation process.
We noted the following significant deficiencies:
•	The EPA improperly recorded e-Manifest receivables and earned revenue.
•	The EPA misclassified e-Manifest user fee revenue.
•	The EPA understated its contract accrued liabilities.
•	The EPA needs to improve the process to disable user accounts for
financial and mixed financial systems.
•	The EPA's Office of the Chief Financial Officer needs to protect personally
identifiable information on its server used to transfer data with vendors.
Compliance with Laws and Regulations
We did not note any significant noncompliance with laws and regulations.
Recommendations and Planned Agency Corrective Actions
The EPA agreed with all 17 recommendations and has either completed
corrective actions or provided an estimated time frame for completion.
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
List of OIG reports.

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