Z5 K U.S. Environmental Protection Agency	08-2-0241
?	\ Office of Inspector General	August 27,2008
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- At a Glance
Catalyst for Improving the Environment
Why We Performed These
Agreed-Upon Procedures
We performed agreed-upon
procedures on the U.S.
Environmental Protection
Agency (EPA) Fiscal Year
(FY) 2008 second quarter
Financial Statements. We did
so to assist EPA in evaluating
whether its quarterly Financial
Statements were compiled
consistent with the Treasury
Standard General Ledger
Crosswalk, and to identify
significant fluctuations in
financial line item balances
from the previous year.
Agencies submit unaudited
interim Financial Statements to
the Office of Management and
Budget 21 days after the end of
each of the first three quarters
of the fiscal year. Agencies
should include management's
explanation of significant
variances in types of assets,
liabilities, costs, revenues,
obligations, and outlays, along
with the submitted statements.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
Agreed-Upon Procedures on EPA's Fiscal Year 2008
Second Quarter Financial Statements
What We Found
Below are the results of our performing the agreed-upon procedures:
•	The financial statements generated by the Office of Inspector General
agreed with EPA's FY 2008 second quarter Financial Statements for the
Consolidated Balance Sheet, Consolidated Statements of Net Cost and
Changes in Net Position, Combined Statement of Budgetary Resources and
Statement of Custodial Activity, Statement of Changes in Net Position for
Earmarked Funds, and Consolidated Statement of Net Cost by Goal.
•	For FY 2007 we noted that the Agency's Cumulative Results of Operations
for Earmarked Funds on the balance sheet did not agree with the Agency's
Statement of Changes in Net Position for Earmarks. While the total
cumulative results reported on the balance sheet is correct, the breakout
between Earmarks and Other Funds is not correct.
•	EPA's FY 2007 post-closing instructions do not agree with EPA's Year End
Closing Table and Treasury's Closing Instructions.
•	We found the first and the second quarter FY 2008 Report of General
Ledger Balance by Treasury Symbol beginning balances were different for
seven budgetary accounts. The Agency stated these beginning balance
changes were due to the child agencies. The adjustments in accounts 4221
and 4251 are for the differences we found in the first quarter stemming from
the U.S. Department of Health and Human Services. The other adjustments
were to move Child Trial Balances from reimbursable to direct. Therefore,
Total Obligations Incurred shows no activity for unfilled customer orders.
Other than line 3 (Budgetary Authority) on the Combined Statement of
Budgetary Resources there is no financial statement impact.
The agreed-upon procedures do not constitute an audit of the quarterly Financial
Statements or any part thereof, the objective of which would be the expression of
an opinion on the quarterly Financial Statements or any part thereof.
To view the full report,
click on the following link:
20080827-08-2-0241 .pdf