United States
Environmental Protection Agency
FISCAL YEAR 2023
Justification of Appropriation
Estimates for the Committee
on Appropriations
Tab 06: Inspector General
April 2022
EPA-190-R-22-001 www.epa.gov/cj
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Environmental Protection Agency
FY 2023 Annual Performance Plan and Congressional Justification
Table of Contents - Inspector General
Program Projects in IG 544
Audits, Evaluations, and Investigations 545
Audits, Evaluations, and Investigations 546
543
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Environmental Protection Agency
FY 2023 Annual Performance Plan and Congressional Justification
APPROPRIATION: Inspector General
Resource Summary Table
(Dollars in Thousands)
FY 2023
FY 2021
FY 2022
FY 2023
President's Budget
v.
Final
Annualized
President's
FY 2022
Actuals
CR
Budget
Annualized CR
Inspector General
Budget Authority
$38,174
$43,500
$55,865
$12,365
Total Workyears
211.1
227.5
258.5
31.0
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund account.
Bill Language: Office of the Inspector General
For necessary expenses of the Office of Inspector General in carrying out the provisions of the
Inspector General Act of 1978, 55,865,000, to remain available until September 30,2024.
Note — A full-year 2022 appropriation for this account was not enacted at the time the Budget was prepared;
therefore, the Budget assumes this account is operating under the Continuing Appropriations Act, 2022 (Division A
of Public Law 117-43, as amended). The amounts included for 2022 reflect the annualized level provided by the
continuing resolution.
Program Projects in IG
[Dollars in Thousands)
Program Pro ject
FY 2021
Final Actuals
FY 2022
Annualized
CR
FY 2023
President's
Budget
FY 2023 President's
Budget v.
FY 2022 Annualized
CR
Audits, Evaluations, and Investigations
Audits, Evaluations, and Investigations
$38,174
$43,500
$55,865
$12,365
TOTAL IG
$38,174
$43,500
$55,865
$12,365
*For ease of comparison, Superfund transfer resources for the audit and research functions are shown in the Superfund account.
544
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Audits, Evaluations, and Investigations
545
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Audits, Evaluations, and Investigations
Program Area: Audits, Evaluations, and Investigations
Cross-Agency Mission and Science Support
(Dollars in Thousands)
FY 2021
Final Actuals
FY 2022
Annualized
CR
FY 2023
President's
Budget
FY 2023 President's
Budget v.
FY 2022 Annualized
CR
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improvements to programs and operations. Specifically, the Office of Audit conducts performance
audits to assess the economy, efficiency, and effectiveness, internal control, and compliance of
EPA programs and EPA business operations. In addition, the Office of Audit conducts 15
statutorily mandated audits, including financial audits of EPA and CSB financial statements as
required by the Federal Managers' Financial Integrity Act and audits of the information security
practices of EPA and CSB as required by the Federal Information Security Modernization Act.
OIG's evaluations arm resides with the Office of Special Review and Evaluation (OSRE). OSRE
is comprised of three directorates. OSRE's two evaluation directorates are responsible for
independent oversight of EPA programs and recommending needed improvements to programs
and operations. The two evaluation directorates within OSRE are: (1) Programs, Offices, and
Centers Oversight Directorate and (2) the Implementation, Execution, and Enforcement
Directorate. OSRE's third directorate is the newly formed Administrative Investigations
Directorate, which conducts administrative investigations into allegations of misconduct by senior
agency employees and complaints of whistleblower reprisal by agency employees, or employees
of agency contractors, subcontractors, grantees, subgrantees or personal services contractors. The
directorate also performs special reviews of significant events and emergent issues of concern that
involve a suspected or alleged violation of law, regulation, or policy, or allegations of serious
mismanagement.
OA and OSRE conduct their mission in compliance with the Inspector General Act, as amended,
the Generally Accepted Government Accounting Standards, and the Council of Inspectors General
on Integrity and Efficiency's Quality Standards for Federal Offices of Inspector General, as
applicable based upon the work performed. Work efforts focus on efficiency and program
operations: program performance, including a focus on the award and administration of grants and
contracts; statutorily mandated audits; financial reviews of grantees and contractors; and
information resources management. In addition, performance audits, program reviews and
evaluations, as well as inspections are conducted specifically to ensure targeted coverage of EPA
programs and offices providing the greatest impact and receiving the greatest resources.
The investigative mission of the OIGis to conduct criminal, civil, and administrative investigations
into fraud and serious misconduct within EPA that undermine the organization's integrity and
public trust or creates an imminent risk or danger. OIG investigations are coordinated with the
Department of Justice and other federal, state, and local law enforcement entities. These
investigations may lead to prosecution and civil judgments wherein there is a recovery and
repayment of financial losses. The major areas of investigative focus include fraudulent practices,
program integrity, laboratory fraud, serious employee misconduct, and cyber-crimes.
The audit, special review and evaluations, and investigative core mission program offices are
directly supported by the OIG's management and administrative functions of its Office of the Chief
of Staff, Office of Management, Office of Counsel and Congressional and Public Affairs.
FY 2023 Activities and Performance Plan:
Work in this program provides Cross-Agency Mission and Science Support and is allocated across
strategic goals and objectives in the FY 2022 - 2026EPA Strategic Plan.
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The OIG is focused on assessing EPA and CSB programs and operations in order to improve upon
human health and the environment through the conduct of audits, special reviews and evaluations,
and investigations. The goal is to improve EPA and CSB business practices and accountability to
meet stakeholders' needs. The OIG assists the Agency in its efforts to develop and enforce
regulations that implement environmental laws by making recommendations to improve program
operations; save taxpayer dollars; reduce the potential for fraud, waste, and abuse; and resolve
identified top management challenges and internal control weaknesses. These efforts are designed
to promote cleaner air, land, and water, and ensure chemical safety for America. In FY 2023, the
OIG will target initiatives supporting EPA's Top Management Challenges; EPA's stated priorities
as they align with the Administration's priorities and targeted funding (i.e., climate change,
environmental justice, infrastructure, etc.); Congressional interests; and environmental issues
made significant due to intense public interest. In order to carry out its foci, the OIG will seek to
increase its agility to assess emerging environmental threats; increase its use of data analytics and
business intelligence to increase its capability to strategically target resources to address high risk,
high vulnerability areas of interest; employ best practices in support of improving efficiency,
effectiveness, accountability, and monetary benefits; focus on measurable impact; and increase its
return on investment to the American public through substantive recommendations followed
through to implementation.
Based on prior work, cross-agency risk assessment, agency challenges, future priorities, and
extensive stakeholder input, the OIG will focus its resources on efforts in the following areas of
concentration during FY 2023:
Audits. Special Reviews, and Evaluations
Sound and Economical Management
• Annual mandated improper payments audits in EPA and CSB
• Annual mandated financial statements audits in EPA and CSB
• Audits of costs claimed by selected grantees and contractors
• Grant, cooperative agreement, and contract administration, such as grantee management of
funds
• Cost efficiencies maximization and process improvement, such as improved acquisition
planning
• Technological changes that create transformation opportunities
• Annual mandated travel card program, including risk assessment in accordance with the
Government Charge Card Abuse Prevention Act of 2012
• Annual mandated purchase card and convenience check program, including risk
assessment
• Annual mandated toxic substances fees in accordance with the Pesticide Registration
Improvement Act and Federal Insecticide, Fungicide, and Rodenticide Act
• Efficiency and effectiveness of collection and payment processes
• Single audit sub-recipients monitoring
• Internal controls
Efficient Processes and Use of Resources
• Partnerships and coordination with other agencies to maximize efficiencies
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• Opportunities to reduce duplication, overlap, and fragmentation within EPA
• Grant, Interagency Agreement Grant, and Interagency Agreement Management
• Efficiency and effectiveness of human capital management programs/workforce analysis
and management
• High-risk contractors
• Continuity of Operations (COOP) readiness of delegated programs to continue their
operations/business as usual during COVID or another COOP event
Ensuring the Integrity of EPA Information
• Agency preparedness for providing remote access services
• Agency efforts to enhance its capability to respond to cyber-attacks
• Cybersecurity/infrastructure development; and assessment of processes to ensure
protection and security of information systems from fraud, waste, and abuse
• Follow-up on prior OIG cybersecurity audit recommendations
• Compliance with policies for federal agency public websites and digital services Plan of
Action & Milestones
• Annual mandated audit of compliance with the Federal Information Security
Modernization Act for EPA and CSB
• Oversight of Chief Information Officer's responsibilities under the Federal Information
Technology Acquisition Reform Act
• Mandated readiness reviews of Agency Digital Accountability and Transparency Act of
2014
• IT support to the mandated financial statement audits
Assessing Risk Management and Performance Measurement
• Implementation of Federal Managers Financial Integrity Act, Federal Information Security
Management Act, and Government Performance and Results Act
• Disaster response and homeland security and emergency preparedness and response
• Construction grants and revolving loan funds awarded to states and territories
• Review of contractor federal performance
• Assistance agreements related to cleanup and Brownfields
• Review of performance measures for eliminated EPA programs later funded by
congressional appropriation
Assessing Program Integrity. Results. Oversight Enforcement
• Oversight of Infrastructure Investment and Jobs Act (P.L. 117-58) funding
• Follow-up on prior OIG work for continuity of operations such as the impact of the
coronavirus pandemic on state hazardous waste programs
• Evaluation of EPA's programs, activities, requirements, and initiatives to address
environmental justice
• Evaluations of EPA's programs and activities to protect human health and the environment
through progress toward goals and compliance with requirements, such as chemical risk
assessments conducted under the Toxic Substances Control Act (TSCA), Clean Air Act
oversight, the pollution prevention program, and radiation policies and guidance
• Evaluation of EPA's programs and adherence to requirements to protect and restore water
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that sustains human health and the environment, such as per- and polyfluoroalkyl
substances (PFAS) in drinking water, tribal drinking water protection, and state
implementation of Clean Water Act
• Evaluation of controls and processes in EPA's research and development, scientific
integrity, and enforcement programs, such as cancer assessment reviews and the
effectiveness of enforcement self-audits and disclosures
• Oversight of clean water state revolving loan funds
• Assess EPA's policy, procedures, and internal controls to prevent or reduce improper
computer use
Investigations
The Inspector General Act identifies the Assistant Inspector General for Investigations as
responsible for developing and implementing an investigative program that furthers OIG
objectives. The OIG's Office of Investigations (01) conducts independent investigations to detect
and prevent fraud, waste, and abuse, while protecting the integrity of EPA and CSB programs,
operations, and resources. Investigations focus on allegations of criminal activity and serious
misconduct in EPA and CSB programs and operations. The OIG performs its proactive work
strategically as opportunities and resources allow. Investigations are opened in accordance with
priorities set forth in the OIG Strategic Plan for FY 2019 - 2023 and in consideration of
prosecutorial guidelines established by U.S. Attorneys. OIG investigations are governed by the
Attorney General Guidelines for Offices of Inspector General with Statutory Law Enforcement
Authority and by the Council of the Inspectors General on Integrity and Efficiency's Quality
Standards for Investigations, as well as other federal statutes and regulations.
The investigative mission of the OIG continues to evolve in conducting criminal and civil
investigations into fraud and serious misconduct within EPA programs and operations that
undermine the organization's integrity and public trust or create an imminent risk or danger.
Special Agents within the 01 are duly appointed federal criminal investigators and have statutory
authority to carry firearms, make arrests, execute search and seizure warrants, and perform other
law enforcement duties. The 01 often collaborates with other law enforcement entities and external
stakeholders to enhance the effectiveness of its work. The OIG investigations are coordinated with
the Department of Justice and other federal, state, and local law enforcement entities for criminal
and civil litigation or with EPA management for administrative action. Investigative efforts may
lead to criminal convictions, administrative sanctions, civil monetary penalties, and judgments
wherein there is a recovery and repayment of financial losses. Additionally, during and at the
conclusion of investigations, the 01 works with the Suspension and Debarment Office within EPA,
"whose actions protect the government from doing business with entities that pose a business risk
to the government."
The OIG plays a critical oversight role helping to ensure that EPA and CSB funds are properly
expended and not subject to fraud, waste, or abuse. The recent COVID-19 pandemic and the
resulting frauds has emphasized the nature of the OIG in protecting the integrity of the EPA's
programs. Major areas of investigative focus in this oversight include: 1) financial fraud related to
agency grants and contracts concerning State Revolving Funds, interagency and cooperative
agreements, and fraud related to mischarging, defective pricing, defective products and collusion
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on contracts; 2) laboratory fraud, including that related to water quality data as well as payments
made by EPA for erroneous environmental testing; 3) employee integrity and alleged criminal
conduct or serious administrative misconduct focusing on activities that could undermine the
integrity of agency programs involving safety and public health, and erode confidence in the
Agency pursuing its mission; 4) program integrity focusing on serious misconduct or criminal
activity that could undermine or erode the public trust and confidence in EPA, its programs, or its
employees; and 5) cybercrime to identify and counter information technology security threats,
illegal intrusions, and abuse of EPA computer systems, critical environmental infrastructure in the
air and water sectors, as well as investigations and responses in support of EPA's Office of
Homeland Security, to include possible cyber terrorist attacks on EPA's computer infrastructure.
Over the last year, the OIG has seen an increase in ransomware attacks, network intrusions, and
an attempt to hack into and poison municipal drinking water. To combat the rapidly expanding
cyberthreat landscape, the OIG will increase its participation and presence with law enforcement
cyber investigations, task forces, critical infrastructure security partners, and agency directorates.
Furthermore, OIG will respond to growing threats against water utilities implicating public safety
and the environment.
Finally, the 01 often makes observations or "lessons learned" for EPA's management to reduce
the Agency's vulnerability to criminal activity. The results of 01's investigations are published in
the OIG's semiannual reports and can serve as a deterrent to future misconduct. In addition, the
01's investigations provide measurable results wherein recovery and restitution of financial losses
are achieved, and administrative actions are taken to prevent those involved from further
participation in any of EPA's programs or operations which may lead to better accountability and
deterrence.
The 01 has reorganized its Field Operations Directorate by realigning the four field offices into
two regional offices - the Eastern Region Field Office and the Western Region Field Office. The
Eastern Region Field Office is responsible for matters within EPA Regions 1 through 5 while the
Western Region Field Office is responsible for matters within EPA Regions 6 through 10. This
realignment has improved the efficiency, effectiveness, and consistency of the 01's operations by
allowing the Field Operations Directorate to better oversee its field operations and investigations.
In addition, the 01 Headquarters hired two attorney-advisors to support our investigative
operations.
Follow-up and Policy/Regulatory Analysis
To further promote economy, efficiency, and effectiveness, the OIG will conduct follow-up
reviews of agency responsiveness to the OIG's recommendations to determine if appropriate
actions have been taken and intended improvements have been achieved. This process will serve
as a means for keeping Congress and EPA leadership apprised of accomplishments and
opportunities for needed corrective actions and facilitate greater accountability for results from the
OIG operations.
Additionally, as directed by the IG Act, as amended, the OIG's audits and evaluations often cover
assessment of proposed and existing policies, rules, regulations, and legislation to identify
vulnerability to waste, fraud, and abuse. These assessments also consider possible duplication,
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gaps, or conflicts with existing authority, leading to recommendations for improvements in their
structure, content, and application.
Performance Measure Targets:
EPA's FY 2023 Annual Performance Plan does not include annual performance goals specific to
this program.
FY 2023 Change from FY 2022 Annualized Continuing Resolution (Dollars in Thousands):
• (+$1,678.0) This net change to fixed and other costs is an increase due to the recalculation
of base workforce costs for existing FTE due to annual payroll increases, adjustments to
provide essential workforce support, and changes to benefits costs.
• (+$213.0) This change to fixed and other costs is an increase due to an adjustment for
transit subsidy costs.
• (+$10,474.0 / +31.0 FTE) This program change is an increase to ensure adequate resources
in expanding the oversight arm of audit, evaluations, investigation, and support offices
within the OIG, to include the newly formed Administrative Investigations directorate
within the Office of Special Review and Evaluations, which conducts administrative
investigations into allegations of misconduct by senior agency employees and complaints
of whistleblowers. The OIG's expanded reach also includes increasing the use of data
analytics and business intelligence in an effort to address high risk, high vulnerability areas
of interest. This program change also includes $5.59 million in payroll.
Statutory Authority:
Inspector General Act of 1978.
Inspector General Reform Act:
The following information is provided pursuant to Section 6(g)(2) of the Inspector General Reform
Act:
• The aggregate budget request from the Inspector General for the operations of the OIG is
$67.9 million ($55.8 million Inspector General: $12.1 million Superfund Transfer)
• The aggregate President's Budget for the operations of the OIG is $67.9 million ($55.8
million Inspector General: $12.1 million Superfund Transfer)
• The portion of the aggregate President's Budget needed for training is $1.1 million ($864
thousand Inspector General: $190 thousand Superfund Transfer)
• The portion of the aggregate President's Budget needed to support the Council of the
Inspectors General on Integrity and Efficiency is $243 thousand ($194.4 thousand
Inspector General: $48.6 thousand Superfund Transfer)
"I certify as the Inspector General of the Environmental Protection Agency that the amount I have
requested for training satisfies all OIG training needs for FY 2023".
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