Office of Inspector General
U.S. Environmental Protection Agency
At a Glance
22-F-0007
November 15, 2021
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 Office of Inspector
General 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.
This 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 audit supports an EPA
mission-related effort:
•	Operating efficiently and
effectively.
This audit addresses a top EPA
management challenge:
•	Fulfilling mandated reporting
requirements.
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
List of OIG reports.
EPA's Fiscal Years 2021 and 2020 (Restated)
Consolidated Financial Statements
EPA Receives an Unmodified Opinion for Fiscal Years 2021 and
2020 (Restated)
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 2021 and 2020 (restated), meaning
they were fairly presented and free of material
misstatement.
Significant Deficiencies Noted
We noted the following significant deficiencies:
•	The EPA did not reconcile cash differences with the U.S. Department
of the Treasury.
•	The EPA did not recognize revenue for the Water Infrastructure
Finance and Innovation Act of 2014 fee fund expenses.
•	Accounts receivable source documentation was not provided in a
timely manner by EPA regions.
•	The Office of the Chief Financial Officer needs to conduct periodic
reviews of users' accounts within the EPA's Contract Payment
System.
Noncompliance with Laws, Regulations, Contracts, and Grant
Agreements Noted
We noted the following instance of noncompliance with laws and regulations:
the EPA did not comply with Office of Management and Budget Circular A-136
form and content requirements for the balance sheet.
Recommendations and Planned Agency Corrective Actions
The EPA generally agreed with our findings and recommendations but
disagreed with some findings. The EPA has already completed corrective
actions on several of our findings, and some corrective actions are ongoing.

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