CUSTOMER SERVICE * INTEGRITY ~ ACCOUNTABILITY
Operating efficiently and effectively
The EPA's Fiscal
Years 2021 and 2020
Financial Statements for the
Pesticides Reregistration
and Expedited
Processing Fund
Report No. 22-F-0059
September 26, 2022
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Report Contributors
Elizabeth Brinson
Amir Eskarous
Robert Hairston
Tanishia Heilig
Damon Jackson
Sheree James
Ethel Lowery
Demetrios Papakonstantinou
Kevin Ross
Lynda Taylor
Philip Weihrouch
Abbreviations
EPA
FIFRA
OIG
U.S. Environmental Protection Agency
Federal Insecticide, Fungicide, and Rodenticide Act
Office of Inspector General
Cover Image
A tractor applies pesticides in a field. (EPA photo)
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OIG Hotline@epa.gov
Learn more about our OIG Hotline.
EPA Office of Inspector General
1200 Pennsylvania Avenue, NW (2410T)
Washington, D.C. 20460
(202) 566-2391
www.epa.gov/oiq
Subscribe to our Email Updates.
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Send us your Project Suggestions.
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Office of Inspector General
U.S. Environmental Protection Agency
At a Glance
22-F-0059
September 26, 2022
Why We Did This Audit
The Food Quality Protection Act
requires that the
U.S. Environmental Protection
Agency Office of Inspector
General perform an annual audit
of the financial statements for the
Pesticides Reregistration and
Expedited Processing Fund, also
known as the Federal Insecticide,
Fungicide, and Rodenticide Act
Fund.
The EPA is responsible for
reassessing the safety of older
pesticide registrations against
modern health and
environmental testing standards,
known as reregistration.
To expedite the reregistration
process, Congress authorized
the EPA to collect fees from
pesticide manufacturers. The
EPA deposits these fees into the
Federal Insecticide, Fungicide,
and Rodenticide Act Fund. Each
year, the Agency's Office of the
Chief Financial Officer prepares
financial statements that present
information about the fund, along
with information about the EPA's
progress in reregistering
pesticides.
The EPA's Fiscal Years 2021 and
2020 Financial Statements for the
Pesticides Reregistration and Expedited
Processing Fund
The EPA Received an Unmodified Opinion for Fiscal Years 2021
and 2020
We rendered an unmodified opinion on the EPA's
fiscal years 2021 and 2020 Federal Insecticide,
Fungicide, and Rodenticide Act, orFIFRA, Fund
financial statements, meaning that the statements
were fairly presented and free of material
misstatement.
We found the fund's
financial statements to
be fairly presented
and free of material
misstatement.
Compliance with Applicable Laws, Regulations, Contracts,
and Grant Agreements
We did not identify any noncompliance that would result in a material
misstatement to the audited financial statements. In addition, the Agency was in
compliance with the statutory performance measures.
The Agency had no comments on the draft report. As a result of our findings,
we make no recommendations.
This audit supports an EPA
mission-related effort:
• Operating efficiently and
effectively.
This audit addresses a top EPA
management challenge:
• Managing infrastructure funding
and business operations.
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
List of OIG reports.
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^£Dsrx
' O
September 26, 2022
MEMORANDUM
SUBJECT: The EPA's Fiscal Years 2021 and 2020 Financial Statements for the Pesticides
Reregi strati on and Expedited Processing Fund
Report No. 22-F-0059
FROM: Damon Jackson, Director [)gwok fll. (Too/Isoh
Financial Directorate
Office of Audit
TO: Faisal Amin, Chief Financial Officer
Michal liana Freedhoff, Assistant Administrator
Office of Chemical Safety and Pollution Prevention
This is our report on the subject audit conducted by the U.S. Environmental Protection Agency Office of
Inspector General. The project number for this audit was QA-FY22-0067. This report describes the OIG's
findings. Final determinations on matters in this report will be made by EPA managers in accordance with
established audit resolution procedures.
The Office of the Chief Financial Officer has primary responsibility for the issues discussed in the report.
You are not required to respond to this report because this report contains no recommendations. If you
submit a response, however, it will be posted on the OIG's website, along with our memorandum
commenting on your response. Your response should be provided as an Adobe PDF file that complies
with the accessibility requirements of Section 508 of the Rehabilitation Act of 1973, as amended. The
final response should not contain data that you do not want to be released to the public; if your response
contains such data, you should identify the data for redaction or removal along with corresponding
justification.
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
We will post this report to our website at www.epa.gov/oig.
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The EPA's Fiscal Years 2021 and 2020 Financial
Statements for the Pesticide Reregistration
and Expedited Processing Fund
22-F-0059
Table of C
Inspector General's Report on the EPA's Fiscal
Years 2021 and 2020 Financial Statements for
the Pesticides Reregistration and Expedited
Processing Fund
Report on the Financial Statements 1
Report on Internal Control over Financial Reporting 2
Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 3
Other Governmental Reporting Requirements 3
Management's Discussion and Analysis 3
Prior Audit Coverage 3
Agency Comments 4
Appendixes
A Fiscal Years 2021 and 2020 Pesticide Registration and Expedited Processing Fund Financial
Statements 5
B Distribution 29
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Inspector General's Report on the EPA's Fiscal Years
2021 and 2020 Financial Statements for the Pesticides
Reregistration and Expedited Processing Fund
The Administrator
U.S. Environmental Protection Agency
Report on the Financial Statements
We have audited the accompanying financial statements of the U.S. Environmental Protection Agency's
Pesticides Reregistration and Expedited Processing Fund, also known as the Federal Insecticide,
Fungicide, and Rodenticide Act, or FIFRA, Fund. These statements comprise the balance sheets as of
September 30, 2021, and September 30, 2020; the related statements of net cost and changes in net
position; the statement of budgetary resources for the years then ended; and the related notes to the
financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America.1 This includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial statements contained in Government Auditing Standards,
issued by the comptroller general of the United States of America; and Office of Management and
Budget Bulletin 21-04, Audit Requirements for Federal Financial Statements. These standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
1 Management means the EPA.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements and accompanying notes present fairly, in all material respects,
the assets, liabilities, net position, net cost, changes in net position, and budgetary resources of the
FIFRA Fund as of and for the years ended September 30, 2021, and 2020, in accordance with accounting
principles generally accepted in the United States of America.
Report on Internal Control over Financial Reporting
Opinion on Internal Control. In planning and performing our audit of the financial statements of the
FIFRA Fund as of and for the year ended September 30, 2021, in accordance with auditing standards
generally accepted in the United States of America, we considered the fund's internal control over
financial reporting as a basis for designing our audit procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on the financial statements and to comply with
the Office of Management and Budget's audit guidance, but not to express an opinion on the
effectiveness of the fund's internal control. Accordingly, we do not express an opinion on the
effectiveness of the fund's internal control over financial reporting.
Material Weaknesses and Significant Deficiencies. Our consideration of the internal control was for the
limited purpose of expressing an opinion on the fund's financial statements and was not designed to
identify all deficiencies in internal control that might be material weaknesses or significant deficiencies;
therefore, such deficiencies in internal control may exist that were not identified during the course of
our audit. A deficiency in internal control over financial reporting exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of the entity's financial statements will not be
prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control over financial reporting that is less severe than a material
weakness yet important enough to merit attention by those charged with governance.
Because of inherent limitations in internal control, misstatements, losses, or noncompliance may
nevertheless occur and not be detected.
Comparison , «' 1 " 1 • al Managers' Financial Integrity A <> 'th
Our Evaluation of Internal Control
Office of Management and Budget Bulletin 21-04 requires us to compare material weaknesses disclosed
during the audit with those material weaknesses reported in the Agency's Federal Managers' Financial
Integrity Act report that relate to the financial statements. We are also required to identify material
weaknesses disclosed by the audit that were not reported in the Agency's report. The Agency's report is
prepared and submitted at the consolidated level, of which the FIFRA Fund is a component. Accordingly,
there are no findings to report at the FIFRA Fund level.
22-F-0059
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Report on Compliance with Laws, Regulations, Contracts, and
Grant Agreements
EPA management is responsible for complying with laws, regulations, contracts, and grant agreements
applicable to the Agency and the fund. As part of obtaining reasonable assurance about whether the
fund's financial statements are free of material misstatement, we performed tests of the Agency's
compliance with certain provisions of laws, including those governing the use of budgetary authority,
regulations, contracts, and grant agreements that have a direct effect on the determination of material
amounts and disclosures in the fund's financial statements.
Opinion on Compliance with Laws, Regulations, Contracts, and
Grant Agreements
Providing an opinion on compliance with certain provisions of laws, regulations, contracts, and grant
agreements was not an objective of our audit and, accordingly, we do not express such an opinion. We
did not identify any instances of noncompliance that would result in a material misstatement to the
audited financial statements.
Other Governmental Reporting Requirements
Performance Measures
FIFRA states that the administrator shall establish and publish annually in the Federal Register
performance measures and goals, including the number of products registered, canceled, or amended
and the status of the product reregistration. In addition, FIFRA requires the Office of Inspector General
to, among other things, audit and report on the FIFRA fund fees collected and disbursed and the EPA's
achievement of those established performance measures and goals. Based on our audit, we found that
the EPA was in compliance with the FIFRA statutory performance measure requirements.
Management's Discussion and Analysis
Our audit was conducted for the purpose of forming an opinion on the FIFRA Fund financial statements
as a whole. The Management's Discussion and Analysis section is presented for the purpose of providing
additional analysis and is not a required part of the basic financial statements. Such information is
management's responsibility. We obtained information from the fund's management about its methods
for preparing the Management's Discussion and Analysis section, and we reviewed this information for
consistency with the financial statements. Our audit was not designed to express an opinion and,
accordingly, we do not express an opinion on the Management's Discussion and Analysis section. We did
not identify any material inconsistencies between the information presented in the fund's financial
statements and the information presented in the Management's Discussion and Analysis section.
Prior Audit Coverage
During a previous audit of the FIFRA Fund's financial statements—OIG Report No. 22-F-0012, EPA's
Fiscal Years 2020 and 2019 (Restated) Financial Statements for the Pesticides Reregistration and
Expedited Processing Fund, issued December 21, 2021—we reported a material weakness where the
22-F-0059
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EPA materially misstated the FIFRA Fund's income and expenses from other appropriations. We also
reported a significant deficiency where the EPA needs to improve its financial statement preparation
process.
We recommended that the Agency correct the calculation of income and expense amounts in the FIFRA
Fund's draft financial statements' footnote 10, "Income and Expenses from Other Appropriations," and
that it document control activities and procedures for calculating such amounts. The Agency agreed with
our recommendations and completed the corrective actions on December 2, 2021.
We also recommended that the Agency develop a plan to strengthen and improve the preparation and
management review of the financial statements and adjustments. The Agency agreed with our
recommendation and certified completion of the corrective action on January 13, 2022.
In the fund's fiscal years 2021 and 2020 financial statements, management has made progress in
capturing items needed when calculating the income and expenses from other appropriations.
Furthermore, management has also made progress in the preparation and review of its financial
statements and adjustments.
There are no recommendations in this report, and the Agency had no comments.
Damon Jackson
Certified Public Accountant
Director, Financial Directorate
Office of Audit
Office of Inspector General
U.S. Environmental Protection Agency
August 23, 2022
Agency Comments
22-F-0059
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Appendix A
Fiscal Years 2021 and 2020 Pesticide Registration and
Expedited Processing Fund Financial Statements
22-F-0059
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Fiscal Years 2021 and 2020
Pesticide Registration and Expedited Processing Fund
Financial Statements
w.
\p,0^
Produced by the U.S. Environmental Protection Agency
Office of the Chief Financial Officer
Office of the Controller
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Table of Contents
Management's Discussion and Analysis..
Principal Financial Statements
Balance Sheet
Statement of Net Cost
Statement of Changes in Net Position..
Statement of Budgetary Resources
Notes to Financial Statements.,
.1
...4
Note 1. Summary of Significant Accounting Policies
A. Reporting Entities
B. Basis of Presentation
C. Budgets and Budgetary Authority
D. Basis of Accounting
E. Revenues and Other Financing Sources
F. Funds with the Treasury
G. Advances and Prepayments
H. Investments in U.S. Government Securities
I. Property, Plant and Equipment
J. Accounts Receivable and Interest Receivable
K. Liabilities
L. Accrued Unfunded Leave
M. Advances from Others and Deferred Revenue
N. Retirement Plan
O. Prior Period Adjustment and Restatements
P. Use of Estimates
Q. Reclassifications and Comparative Figures,
Note 2. Fund Balance with Treasury (FBWT)
Note 3. Accounts Payable
Note 4. General Property Plant and Equipment, Net
Note 5. Other Liabilities
Note 6. Recoveries and Resources Not Available, Statement of Budgetary Resources.
Note 7. Unobligated Balances Available.
Note 8. Undelivered Orders at the End of the Period
Note 9. Federal Employee Benefits Payable
Note 10. Income and Expenses from Other Appropriations
Note 11. Exchange Revenue, Statement of Net Cost
Note 12 Intragovernmental Costs and Exchange Revenue,
Note 13. Reconciliation of Net Cost of Operations to Budget
9
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Management's Discussion and Anahsis
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Under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Federal Food, Drug, and
Cosmetic Act (FFDCA), as amended by the Food Quality Protection Act (FQPA) of 1996, the EPA's
Pesticide Program registers new pesticides and re-evaluates existing pesticides to ensure that they can be
used safely and that levels of residue in food and animal feed are safe (there is a reasonable certainty of no
harm). The Agency must also conclude that, when used in accordance with labeling and common practices,
the product will not generally cause unreasonable adverse effects on the environment.
In accordance with FIFRA and FFDCA, the pesticide program administers the Pesticides Reregistration and
Expedited Processing Fund (FIFRA fund). As of 1996, fees for maintenance of pesticide registrations are
deposited to the FIFRA fund, which is available to the EPA without further appropriation.
Under the FFDCA, EPA sets "tolerances", or maximum residue levels. If a pesticide is intended to be used
in a manner that may result in residues in food or animal feed, the applicant must petition EPA for
establishment of a tolerance (or exemption from a tolerance). Tolerances are set at levels that ensure a
reasonable certainty of no harm from the potential pesticide residues in food combined with other non-
occupational exposure.
The passage of the Food Quality Protection Act (FQPA) in 1996 provided for additional fees to support
reregistration activities and required tolerances to be reassessed as part of the reregistration program.
Effective January 1997, all fees related to tolerance activities were deposited in the FIFRA fund. With
passage of the Pesticide Registration Improvement Act (PRIA 1) of 2003 and amendments in 2007. 2012
and 2019, no additional tolerance petition fees were to be deposited to the FIFRA fund through FY 2023.
Hie second amendment to PRIA, the Pesticide Registration Improvement Extension Act of 2012 (PRIA 3),
had a statutory expiration date of September 30, 2017. This expiration date was extended through fiscal
year 2018 and part of fiscal year 2019 by legislative language contained in continuing resolutions and the
2018 omnibus spending bill. The third amendment to PRIA, the Pesticide Registration Improvement
Extension Act of 2018 (PRIA 4). became effective March 8, 2019, and extended the prohibition on
collection of tolerance petition fees through September 30, 2023. As a result, no additional tolerance
petition fees were deposited to the FIFRA fund in FY 2020 and FY 2021.
The Pesticide Reregistration and Registration Review Programs
EPA is responsible for re-evaluating the safety of existing pesticides. Since the passage of FIFRA in 1947,
scientific analysis techniques have grown much more precise and sophisticated and health and
environmental standards have become more stringent. With the 1988 amendments to FIFRA (FIFRA '88),
Congress mandated the accelerated reregistration of all products registered prior to November 1, 1984. The
statute required completion of Reregistration Eligibility Decisions (REDs) and tolerance reassessment for
all food- use active ingredients by 2006.
All REDs for the active ingredients have been completed, the last being completed in FY 2008. A RED is
a decision by the Agency defining whether products containing the pesticide active ingredient are eligible
or ineligible for reregistration. Following the issuance of the RED, the registrant must comply with the
RED by submitting product-specific data and revised labels for each product containing that active
ingredient or cancel the product registration. Based on its review of the data, if the product has met all the
requirements, the EPA then reregisters the product.
EPA's FY 2021 Annual FIFRA Financial Statements
1.
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Hie FQPA introduced anew program called Registration Review which replaced EPA's Pesticide
Reregistration and Tolerance Reassessment programs as those programs were completed. Unlike earlier
review programs, Registration Review applies to all registered pesticides. EPA reviews each registered
pesticide every 15 years to determine whether it still meets the FIFRA standard for registration. In this
way, the Agency ensures that all registered pesticides do not pose unreasonable risks to human health or
the environment when used as directed on product labeling.
FQPA also reauthorized the collection of maintenance fees through 2001 to complete the review of older
pesticides to ensure they meet current standards (increasing annual fees from $14 million to $16 million
per year through 2000) and required all tolerances (over 9,700) to be reassessed by 2006. The 2002
appropriations bill extended maintenance fees to $17 million for another year, and the 2003 appropriations
extended them to $21.5 million for that year. Passage of PRIA 1 in FY 2004 extended maintenance fees
through FY 2008 (with annual fees totaling $26 million in FY 2004; S27 million in FY 2005-2006; $21
million in FY 2007; and $15 million in FY 2008). Passage of the Pesticide Registration Improvement
Renewal Act (PRIA 2) in October 2007 extended maintenance fees through FY 2012 ($22 million each
FY). PRIA 2 provided for maintenance fees to offset the costs of registration review beginning in FY 2008,
For pesticides registered before October 1, 2007, EPA has a statutory mandate to complete Registration
Review decisions by October 1, 2022; there are a total of 725 cases that need to have decisions by this
date. For each case, the steps in this process include, in this order: opening dockets, developing work
plans, completing risk assessments, and making decisions regarding any risk management measures. It is
important to open dockets and develop work plans for as many cases as possible early in the process so
that there is time to complete the risk assessments and make decisions by the 2022 deadline. In 2021 EPA
continued completing risk assessments and making decisions to meet its statutory deadline by 2022.
Congress authorized the collection of maintenance fees from manufacturers to supplement appropriated
funds to support reregistration and registration review programs. Maintenance fees were structured under
PRIA 3 to generate approximately $27.8 million per year for five years (FY 2013 - FY 2017).
Maintenance fee collection authority at the $27.8 million per year level was extended through fiscal year
2018 and part of fiscal year 2019 by legislative language contained in 2018 and 2019 continuing
resolutions as well as the 2018 omnibus bill. Maintenance fees are assessed on a product-by-product basis
with caps on the maximum number of products for which any single company would have to pay fees, as
well as fee reductions for qualified small businesses. Registrations for minor use registrations and public
health pesticides are also eligible for waivers and/or refunds of maintenance fees. Fees are deposited into
the FIFRA Reregistration and Expedited Processing Fund. By statute, excess monies in the FIFRA
Reregistration and Expedited Revolving Processing Fund maybe invested. Between 11.1% and 12.5% of
collected maintenance fees each year are used to support inert ingredient clearances as well as expedited
processing of fast track amendments. PRIA 3 also had set aside approximately $800,000 of the collected
maintenance fees for fiscal years 2013 through 2017 to enhance specified IT systems.
PRIA 4 became effective March 8, 2019, and raised the maintenance fee annual collection target from
$27.8 million to $31 million through fiscal year 2023. EPA had invoiced for FY 2019 maintenance fees in
December 2019 under PRIA 3 authority and using the PRIA 3 collection target of $27.8M. When PRIA 4
was enacted midway through the fiscal year, rather than reinvoice for the additional $3.2M to achieve the
increased annual target specified in PRIA 4, EPA utilized a provision in PRIA 4 which allows the EPA to
average across fiscal years within PRIA 4 to account for over/under collection in a given fiscal year. For
the remaining 4 years of PRIA 4 authority, EPA's collection target will be $31.8X1 year. While the fund
can still be used for IT enhancements, PRIA 4 replaced the specific IT enhancement set-aside from PRIA
3 with two new maintenance fee set-asides of up to $500K each annually through fiscal year 2023 for the
EPA's FY 2021 Annual FIFRA Financial Statements
2.
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efficacy guideline development and rulemaking for invertebrate pests of significant public health or
economic importance, and the Good Laboratory Practices (GLP) standards compliance monitoring
program. PRIA 4 also removed an appropriations constraint on spending FIFRA maintenance fees.
Highlights and Accomplishments
Reregistration and Expedited Processing Fund (FIFRA) Financial Perspective
During FY 2021. the Agency's obligations charged against the Reregistration and Expedited Processing
Revolving Fund for the cost of the reregistration, registration review and other FIFRA activities
authorized by 7U.S.C. 136(k)(2)(A) were $49.6 million andl88.1 work-years. Of this amount, the EPA
obligated approximately $28.3 million for Personnel Compensation and Benefits (PC&B).
Appropriated funds are used in addition to pesticide user fees. In FY 2021, the total appropriations that
funded registration review, reregistration and other FIFRA activities authorized by 7 U.S.C. 136(k)(2)(A)
were approximately $8.0 million.
The Fund has two types of receipts: fee collections and interest earned on investments. Of the $31.85
million in FY 2021 receipts, more than 99.9% were fee collections. Total unobligated balance in the fund
at the end of FY 2021 was $ 26.2 million.
Registration Review Program (FIFRA) Performance Measures
The following measures support the program's strategic goal: ensuring the safety of chemicals and pollution
prevention.
Measure 1: Number of FIFRA Decisions completed through pesticide registration review.
Results: EPA completed 74 registration review decisions for FY 2021, falling below the target of 110
decisions, and is not on track for completing registration review for all pesticide cases by October 1,
2022.
Measure 2: Number of FIFRA registration review draft risk assessments completed.
Results: In FT 2021, EPA completed 37 draft risk assessments, falling below the FY 2019 target of 60
draft risk assessments.
EPA'sFY 2021 Annual FIFRA Financial Statements
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Principal Financial Statements
U.S. Environmental Protection Agency
FIFRA
Balance Sheet
As of September 30,2021 and 2020
(Dollars in Thousands)
2021
2020
ASSETS
Intragovemmental:
Fund Balance With Treasury (Note 2)
Advances and Prepayments
Total Intragovemmental
General Property Plant and Equipment, Net (Note 4)
Total Assets
38,362 $
185
38,547
704
39.251 $_
52,574
50
52,624
448
53.072
LIABILITIES
Intragovemmental:
Accounts Payable (Note 3)
S
540
s
250
Other (Note 5)
176
197
Total Intragovemmental
716
447
With the Public:
Accounts Payable (Note 3)
30
128
Federal Employee Benefits Payable (Note 9)
4.026
4,441
Advances from Other and Deferred Revenue
36,362
50,897
Other (Note 5)
1.800
1.678
Total Liabilities
$
42,934
$
57.591
NET POSITION
Cumulative Results of Operations - Funds from Dedicated Collections
$
(3.683)
s
(4.519)
Total Net Position
(3,683)
(4,519)
Total Liabilities and Net Position
$
39.251
s
53.072
The accompanying notes are an integral part of these financial statements.
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Statement of Net Cost
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
2021 2020
COSTS
Gross Costs (Note 12)
$
48,057 $
41,122
Expenses from Other Appropriations (Note 10)
41.351
48.960
Total Costs
89,408
90,082
Less:
Earned Revenue (Note 12)
46.684
38.855
NET COST OF OPERATIONS (Note 13)
S
42.724 S
51.227
The accompanying notes are an integral part of these financial statements.
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Statement of Changes in Net Position
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
2021 2020
Cumulative Results of Operations:
Net Position - Beginning Balance $ (4,519) $ (3,967)
Budgetary Financing Sources:
Nonexchange Revenue - Securities Investment 14 457
Income from Other Appropriations (Note 10) 41.351 48.960
Total Budgetary Financing Sources 41,365 49,417
Other Financing Sources (Non-Exchange)
Imputed Financing Sources 2.195 1.2S8
Total Other Financing Sources 2,195 1,258
Net Cost of Operations S (42,724) $ (51,227)
Net Change 2M (5521
TOTAL NFJ POSITION S (3.683) S (4.519)
The accompanying notes are an integral part of these financial statements.
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Statement of Budgetary Resources
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
2021
2020
BUDGETARY RESOURCES
Unobligated Balance From Prior Year Budget Authority, Net (mandatory)
$ 43,842 $
51.421
Spending Authority from Offsetting Collections (mandatory)
32.155
32.176
Total Budgetary Resources
S 75.997 $
83.597
STATl S OF Bl DGKIARY RESOURCES
New Obligations and Upward adjustments (total)
$ 49,832 $
41,364
Unobligated Balance. End of Year:
Apportioned, Unexpired Accounts
25,796
39,886
Unapportioned. Unexpired Accounts
369
2.347
Unobligated Balance, End of Year (total): (Note 7)
26.165
42.233
Total Status of Budgetary Resources
$ 75.997 $
83.597
OUTLAYS, NET
Outlays. Net (total) (mandatory) $ 14,225 $ 5,810
Distributed Offsetting Receipts (-) - -
Agency Outlays, Net (mandatory) $ 14.225 $ 5.810
The accompanying notes are an integral part of these financial statements.
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Note 1. Summary of Significant Accounting Policies
A. Reporting Entities
The EPA was created in 1970 by executive reorganization from various components of other federal agencies
to better marshal and coordinate federal pollution control efforts. The Agency is generally organized around
the media and substances it regulates - air, water, land, hazardous waste, pesticides, and toxic substances.
The FIFRA Revolving Fund was authorized in 1988 by amendments to the Federal Insecticide, Fungicide
and Rodenticide Act (FIFRA). The 1988 amendments mandated the accelerated re-registration of all
products registered prior to November 1, 1984. Congress authorized the collection of maintenance fees to
supplement appropriations to fluid re-registration and to fund expedited processing of pesticides.
Maintenance fees are assessed on registrants of pesticide products. FIFRA also includes provisions for the
registration of new pesticides (funded in part from the PRIA or Pesticide Registration Fund), monitoring the
distribution and use of pesticides, issuing civil or criminal penalties for violations, establishing cooperative
agreements with the states, and certifying training programs for users of restricted chemicals. Appropriated
funds, with the exception of partial funding of registration from Pesticide Registration Service Fees in the
Pesticide Registration Fund, pay for these activities. The FIFRA Revolving Fund is accounted for under
Treasury symbol number 68X4310.
The FIFRA fund may charge some administrative costs directly to the fund and charge the remainder of the
administrative costs to Agency-wide appropriations. See Note 10 Income and Expenses from Other
Appropriations for amounts included in Income from Other Appropriations on the Statement of Changes in
Net Position and as Expenses from Other Appropriations on the Statement of Net Cost.
B. Basis of Presentation
These financial statements have been prepared to report the financial position and results of operations of the
EPA for the Reregistration and Expedited Processing (FIFRA) Revolving Fund as required by the Chief
Financial Officers Act of 1990. The reports have been prepared from the books and records of the EPA in
accordance with Office of Management and Budget (OMB) Circular A-136 Financial Reporting
Requirements, and the EPA's accounting policies which are summarized in this note. These statements are
therefore different from the financial reports also prepared by the EPA pursuant to OMB directives that are
used to monitor and control the EPA's use of budgetary resources.
C. Budgets and Budgetary Accounting
Funding of the FIFRA Revolving Fund is provided by fees collected from industry to offset costs incurred by
the EPA in carrying out these programs. Each year, the EPA submits an apportionment request to OMB
based on the anticipated collections of industry fees.
D. Basis of Accounting
Generally Accepted Accounting Principles (GAAP) for federal entities is the standard prescribed by the
Federal Accounting Standards Advisory Board (FASAB). which is the official standard-setting body for the
Federal Government and the American Institute of Certified Public Accountants (AICPA). The financial
statements are prepared in accordance with GAAP for federal entities.
EPA's FY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Transactions are recorded on an accrual accounting basis and a budgetary basis. Under the accrual method,
revenues are recognized when earned and expenses are recognized when liabilities are incurred, without
regard to receipt or payment of cash. Budgetary accounting facilitates compliance with legal constraints and
controls over the use of federal funds posted in accordance with OMB directives and the U.S. Treasury-
regulations.
E. Revenues and Other Financing Sources
The EPA's 2002 appropriations bill extended authority to collect maintenance fees by one year in the amount
of $ 17 million and the FY 2003 appropriations extended the authority to collect fees again by one year in the
amount of $21.5 million. Passage of the Pesticide Registration Improvement Act (PRIA) in 2004 extended
the authority to collect maintenance fees through FY 2008 (with annual fee amounts at $26 million in FY
2004; $27 million in FY 2005-2006; $21 million in FY 2007: and $15 million in FY 2008). Passage of the
Pesticide Registration Improvement Renewal Act (commonly referred to as PRIA II) in 2007 extended the
authority to collect maintenance fees through FY 2012 (with annual fee amounts set at $22 million each year
from 2008-2012). For FYs 2021 and 2020. the FIFRA Revolving Fund received funding from maintenance
fees collected on existing registered pesticide products and from interest collected on investments in U.S.
Government securities. For FYs 2021 and 2020, revenues were recognized from fee collections to the extent
that expenses are incurred during the fiscal year.
F, Funds with the Treasury
The FIFRA fund deposits receipts and processes disbursements through its operating account maintained at
the U.S. Department of Treasury. Cash funds in excess of immediate needs are invested in U.S. Government
securities.
G, Advances and Prepayments
FIFRA advances funds to the EPA's Working Capital Fund to pay for computer, postage, and other
administrative support services.
H. Investments in U. S. Government Securities
Investments in U. S. Government securities are maintained by Treasury and are reported at amortized cost net
of unamortized discounts. Discounts are amortized over the term of the investments and reported as interest
income. FIFRA holds the investments to maturity, unless needed to finance operations of the fund. No
provision is made for unrealized gains or losses on these securities because, in the majority of cases, they are
held to maturity.
EPA's FY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
I. Property, Plant, and Equipment
General property, plant and equipment for FIFRA includes software in production. Internal use software
includes purchased commercial off-the-shelf software, contractor developed software and software that was
internally developed by Agency employees. In FY 2017. the EPA reviewed its capitalization threshold levels
for PP&E. The Agency performed an analysis of the values of software assets, reviewed capitalization
threshold from $250 thousand to $5 million to better align with major software acquisition investments. The
$5 million threshold will be applied prospectn ely to softw are acquisitions and modifications enhancements
placed into service after September 30. 2016. Software assets placed into service prior to October 1, 2016
were capitalized at the $250 thousand threshold. Internal use software is capitalized at full cost (direct and
indirect) and amortized using the straight-line method over its useful life, not exceeding five years.
J. Accounts Receivable and Interest Receivable
FIFRA receivables are mainly for interest receivable on investments.
K. Liabilities
Liabilities represent the amount of monies or other resources that are more likely than not to be paid by the
Agency as the result of an Agency transaction or event that has already occurred and can be reasonably
estimated. However, no liability can be paid by the Agency without an appropriation or other collections.
Liabilities for which an appropriation has not been enacted are classified as advances from others and
deferred revenue, and there is no certainty that the appropriations will be enacted. For FIFRA, advances
from others and deferred revenue are liquidated from fee receipts and interest earnings, since FIFRA receives
no appropriation. Fees collected by the Agency are classified as advances from others and deferred revenue
until expended. liabilities of the Agency, arising from other than contracts can be abrogated by the
Government acting in its sovereign capacity.
L. Accrued Unfunded Annual Leave
Annual, sick and other leave is expensed as taken during the fiscal year. Sick leave earned but not taken is
not accrued as a liability. It is expensed as it is used. Annual leave earned but not taken at the end of the
fiscal year is accrued as an unfunded liability. Accrued unfunded annual leave is included in the Balance
Sheet as a component of "Payroll and Benefits Payable."
M. Advances from Others and Deferred Revenue
Fees collected by the FIFRA program that have not yet been expended are considered deferred revenue.
Deferred revenue will fluctuate in conjunction with expenses paid from other appropriations and program
expenses, (see Note 10).
N, Retirement Plan
There are two primary retirement systems for federal employees. Employees hired prior to January 1, 1987,
may participate in the Civil Service Retirement System (CSRS). On January 1, 1987, the Federal Employees
Retirement System (FERS) went into effect pursuant to Public Law 99-335. Most employees hired after
December 31, 1986, are automatically covered by FERS and Social Security. Employees hired prior to
January 1, 1987, elected to either join FERS and Social Security or remain in CSRS. A primary feature of
EPA'sFY 2021 Annual FIFRA Financial Statements
10.
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
FERS is that it offers a savings plan to which the Agency automati ilh ontributes one percent of pay and
matches any employee contributions up to an additional four percent of p The Agency also contributes the
employer's matching share for Social Security.
With the issuance of SFFAS No. 5, Accounting for Liabilities of the Federal Government, accounting and
reporting standards were established for liabilities relating to the federal employee benefit programs
(Retirement, Health Benefits, and Life Insurance). SFFAS No. 5 requires that the employing agencies
recognize the cost of pensions and other retirement benefits during their employees' active years of service.
SFFAS No. 5 requires that the Office of Personnel Management (OPM), as administrator of the CSRS and
FERS, the Federal Employees Health Benefits Program, and the Federal Employees Group Life Insurance
Program, provide federal agencies with the actuarial cost factors to compute the liability for each program.
O. Prior Period Adjustments and Restatements
Prior period adjustments, if any, are made in accordance with SFFAS No. 21, Reporting Corrections of
Errors and Changes in Accounting Principles. Specifically, prior period adjustments will only be made for
material prior period errors to: (1) the current period financial statements, and (2) the prior period financial
statements presented for comparison. Adjustments related to changes in accounting principles will only be
made to the current period financial statements, but not to prior period financial statements presented for
comparison.
P. Use of Estimates
The preparation of financial statements requires management to make certain estimates and assumptions that
affect reporting amounts of assets, liabilities and the reported amounts of the revenue and expenses during
the period. Actual results could differ from those estimates.
Q. Reclassifications and Comparative Figures
Certain reclassifications have been made to the prior year's financial statements to enhance comparability
with the current year's financial statements in accordance with Office of Management and Budget (OMB)
Circular No. A-136, Financial Reporting Requirements revised August 20, 2021. As a result, the form and
content of the Balance Sheet has changed to conform with OMB Circular No. A-136.
Note 2. Fund Balance With Treasury (FBWT)
Fund Balance with Treasury as of September 30, 2021 and 2020 consists of the following:
2021 2020
Entity Non-Entity Entity Non-Entity
Assets Assets Total Assets Assets Total
Revolving Funds:
FIFRA S 38.362 S S 38.362 $ 52.574 S $ 52.574
Total S 38.362 $ $ 38.362 $ 52,574 S S 52.574
EPA'sFY 2021 Annual FIFRA Financial Statements
11.
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Status of Fund Balances: 2021 2020
Unobligated Amounts in Fund Balance:
Available for Obligation $ 26,165 $ 42 2^
Obligated Balance not yet Disbursed 10,364 10.341
Unavailable for Obligation 1.833 -
Total S 38.362 $ 52.574
Note 3. Accounts Payable
The Accounts Payable are current liabilities and consist of the following amounts as of September 30, 2021
and 2020:
2021 2020
Intragovernmental:
Accrued Liabilities
S 540
$
250
Total
$ 540
$
250
2021
2020
Non-Federal:
Accounts Payable
S 30
$
128
Total
S 30
$
128
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Note 4. General Property, Plant and Equipment, Net
General property, plant, and equipment (PP&E) consist of software, real property, EPA-held and contractor-held
personal property, and capital leases.
As of September 30, 2021, General PP&E Cost consisted of the following:
EPA-
Held Software
Software
Equipment (production)
(development)
Total
Balance, Beginning of Year
S 600 $ 330
s - $
930
Additions
168
218
386
Balance, End of Year
$ 768 $ 330
S 218 $
1.316
As of September 30, 2021, General PP&E Accumulated Depreciation consisted of the following:
EPA-
Held Software
Software
Equipment (production)
(development)
Total
Balance, Beginning of Year
$ 159 $ 323
$ - $
482
Depreciation Expense
123 7
-
130
Balance, End of Year
S 282 $ 330
$ - $
612
As of September 30, 2021, General PP&E, Net consisted of the following:
EPA-
Held Software Software
Equipment Production (development') Total
Balance, End of Year, Net S 486 S S 218 $ 704
As of September 30, 2020, General PP&E Cost consisted of the following:
Balance, Beginning of Year
Additions
Balance, End of Year
EPA-
Held
Software
Equipment
(production)
Total
$ 489
S 330 a
i 819
111
-
111
$ 600
$ 330 8
i 930
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
As of September 30, 2020, General PP&E Accumulated Depreciation consisted of the following:
EPA-
Held Software
Equipment (production)
Total
Balance, Beginning uT Year
S 125 S 302 S
i 427
Depreciation Expense
34 21
55
Balance, End of Year
$ 159 S 323 S
i 482
As of September 30, 2020, General PP&E, Net consisted of the following:
Balance, End of Year, Net
EPA-
Held
Equipment
S 441
Software
(production)
$ 7
Total
448
Note 5. Other Liabilities
At various periods throughout FY 2021 and FY 2020 employees with their associated payroll costs were
transferred from FIFRA to the Environmental Programs and Management (EPM) appropriation. These
employees were transferred to keep FIFRA's obligations and disbursements within budgetary limits. When
resources become available, the employee charging to FIFRA increased to utilize resources as much as
possible.
This process has led to variations between the \e » end liabilities of FYs 2021 and 2020. The liabilities
covered by budgetary resources (both intrago e iimental and non-Federal) represent unpaid payroll and
benefits at year-end.
Other Liabilities consist of the following as of September 30, 2021:
Current
Employer Contributions & Payroll Taxes
Total Intragovernniental
Covered by
Budgetary
Resources
Not Covered
by
Budgetary
Resources
Total
176 $_
176 S
176
176
Other Liabilities - Non-Federal
Current
Other Accrued Liabilities
Accrued Funded Payroll and Benefits
Total Non-Federal
1,066
734
1.800 $_
1,066
734
1.800
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Other Liabilities consist of the following as of September 30, 2020:
Current
Employer Contributions & Payroll Taxes
Total Intragovernmental
Other Liabilities - Non-Federal
Current
Other Accrued Liabilities
Accrued Funded Payroll and Benefits
Total Non-Federal
Not Covered
Covered by by
Budgetary Budgetary
Resources Resources Total
s
197 S
$
197
$
197 S
$
197
$
767 S
$
767
911
-
911
$
1.678 S
$
1.678
Note 6. Recoveries and Resources Not Available, Statement of Budgetary Resources
Recoveries of'Prior Year Obligations, Temporarily Not Available, and Permanently Not Available on the Statement of
Budgetary Resources consist of the following amounts as of September 30, 2021 and 2020:
2021
2020
Unobligated Balance Brought Forward, Oct 1.
Adjustments to Budgetary Resources Made During the Current Year
Downward Adjustments of Prior Year Undelivered Orders
Other Adjustments
Total
Unobligated Balance from Prior Year Budget Authority, Net
(mandatory)
Temporary Reduction-New Budget Authority
$ 42.233 $
51.055
1,599
158
136
208
1,735
366
S 43.968 $
51.421
S (1.8331 $
f 1.902)
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Note 7. Unobligated Balances Available
Unexpired unobligated balances .ire available to be apportioned by the OMB for new obligations at the
beginning of the following fiscal year. The expired unobligated balances are only available for upward
adjustments of existing obligations.
Hie unobligated balances available consist of the following as of September 30, 2021 and 2020:
2021 2020
Unexpired Unobligated Balance S 26,165 $ 42,233
Expired Unobligated Balance - -
Total S 26.165 $ 42.233
Note 8. Undelivered Orders at the End of the Period
Budgetary resources obligated for undelivered orders at September 30, 2021 and 2020:
Intragovernmental:
Unpaid Undelivered Orders
Paid Undelivered Orders
With the public:
Unpaid I Undelivered Orders
Total
2021
129
185
/.(0 'I
2020
7 Ji( $
(114)
50
6.356
6.292
Note 9. Federal Employee Benefits Payable
Payroll and benefits payable to the EPA employees for the years September 30, 2021 and 2020 consist of the
following:
FY 2021 Federal Emplo IS fits Payable
Employer Contributions P 11 Thrift Savings Plan
Total - Current
Accrued Unfunded Annual Leave
Total - Non Current
Total
Covered by Not Covered
Budgetary by Budgetary
Resources Resources Total
$
89 S
$
89
89
3.937
89
3.937
-
3,937
3,937
$
89 S
3.937 $
4.026
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
FY 2020 Federal Employee Benefits Payable
Employer Contributions Payable - Thrift Savings Plan
Total - Current
Accrued Unfunded Annual Leave
Total - Non Current
Total
Covered by
Budgetary
Resources
Not Covered
by Budgetary
Resources
Total
; 99 S - S 99
99
-
99
.
4.342
4.342
-
4,342
4,342
; 99
S 4.342 $
4.441
Note 10. Income and Expenses from Other Appropriations
Hie Statement of Net Cost reports the program costs that include the full cost of the program outputs and
consist of the direct costs and all other costs that can be directly traced, assigned on a cause and effect basis,
or reasonably allocated to program outputs.
During FYs 2021 and 2020, the EPA had two appropriations which funded a variety of programmatic and
non-programmatic activities across the .Agency, subject to statutory requirements. The I ! I'M appropriation
was created to fund personnel compensation and benefits, travel, procurement, and contract activities.
As illustrated below there is no impact on EPA's Statement of Changes in Net Position.
2021 2020
Income from Other Appropriations
$ 41,351 $
48,960
Expenses from Other Appropriations
41.351
48.960
Net Effect
S - $
-
Note 11. Exchange Revenues, Statement of Net Cost
For FYs 2021 and 2020, the exchange revenues reported on the Statement of Net Cost is comprised of non-
Federal amounts.
EPA's FY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Note 12. Iiitragovernmental Costs and Exchange Revenue
2021 2020
Costs:
Intragovernmental
S
14,820 $
11,210
With the Public
33,237
29,912
Expenses from Other Appropriations
41.351
48.960
Total Coste
$
89.408 £
90.082
Revenue:
With the Public
46.684
38.855
Total Revenue
46,684
38,855
Net Cost of Operations:
$
42.724 S
51.227
Iiitragovernmental costs relate to the source of the goods or services not the classification of the related
revenue.
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
Note 13. Reconciliation of Net Cost of Operations to Budget
For the Fiscal Year 2021:
Intra-
governmental
With the
Public Total 2021
NET COST $
Component of Net Cost 'I'll at Arc Not Part of Net Outlays:
Property, Plant and Equipment Depreciation
Applied Overhead/Cost Capitalization Offset
Expenses from Other Appropriations
14,820 S
27,904 $
(130)
386
(41.351)
42,724
(130)
386
(41,351)
Incrcase/(Decrease) in Assets:
Other .Vssets
134
-
134
(Incrcasc-)/f)ecrcase in Liabilities:
Accounts Payable
Federal Employee Benefits Payable
Other Liabilities
(258)
14,529
(196)
405
177
(454)
405
14,706
Other Financing S< in us
Other Imputed Fii
(2.1951
(*2.1951
Total Components oi i\ei Cost That Are Not Part of Net
Outlays
27,030
(12,805)
14,225
Components of Budget Outlays That Are Not Part of Net Cost
Custodial/Non-exehange revenue
(131
(131
Total Components of Budget Outlays That Are Not Part of
Net Cost
(13)
_
(13)
Other Temporary Timing Differences
-
13
13
NET OUTLAYS $
27.017 $
("12.7921 $
14.225
EPA'sFY 2021 Annual FIFRA Financial Statements
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U.S. Environmental Protection Agency
FIFRA
Notes to the Financial Statements
For the Fiscal Years Ended September 30, 2021 and 2020
(Dollars in Thousands)
For the Fiscal Year 2020:
Intra-
governmental
With the
Public
Total 2020
NET COST (Restated)
Components of Net Cost That Are Not Part of Net Outlays:
Property. Plant and Equipment Depreciation
Other
$ 10,156 S
41,071
(54)
(48,849)
$ 51,227
(54)
(48,849)
Increase/(Decrease) in Assets;
Other Assets
23
-
23
(Increase)/Decrease in Liabilities:
Accounts Payable
Payroll and Benefits Payable (Restated)
Other Liabilities
(180)
(37)
(585)
(1,153)
6,883
(765)
(1,153)
6,846
Other Financing Sources:
Federal Employee Retirement Benefit Costs Paid by OPM and
Imputed to the Agency
Other Imputed Financing
(1,199)
(59)
-
(1,199)
(59)
Total Components of Net Cost That Are Not Part of Net
Outlays
8,704
(2,687)
6,017
Other Temporary Timing Differences
-
(207)
(207)
NET OUTLAYS
$ 8,704 S
f2.894)
$ 5.810
Budgetary and financial accounting information differ. Budgetary accounting is used for planning and control
purposes mid relates to both the receipt and use of cash, as well as reporting the federal deficit. Financial
accounting is intended to provide a picture of the government's financial operations and financial position, so
it presents information on an accrual basis. The accrual basis includes information about costs arising from
the consumption of assets and the incurrence of liabilities. The reconciliation of net outl ays, presented on a
budgetaiy basis, and the net cost, presented on an accrual basis, provides an explanation of the relationship
between budgetary mid financial accounting information.
The reconciliation serves not only to identify costs paid for in the past and those that will be paid in the
future, but also to assure integrity between budgetary and financial accounting. The reconciliation explains
the relationship between the net cost of operations and net outlays by presenting components of net cost that
are not part of net outlays (e.g. depreciation and amortization expenses of assets previously capitalized,
change in asset/liabilities), components of net outlays that are not part of net cost (e.g. acquisition of capital
assets), other temporary timing difference (e.g. prior period adjustments due to correction of errors). The
analysis below illustrates this reconciliation by listing the key differences between net cost and net outlays.
EPA'sFY 2021 Annual FIFRA Financial Statements
20.
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Appendix B
Distribution
The Administrator
Deputy Administrator
Chief of Staff, Office of the Administrator
Deputy Chief of Staff, Office of the Administrator
Chief Financial Officer
Agency Follow-Up Coordinator
General Counsel
Assistant Administrator for Chemical Safety and Pollution Prevention
Associate Administrator for Congressional and Intergovernmental Relations
Associate Administrator for Public Affairs
Deputy Chief Financial Officer
Associate Chief Financial Officer
Deputy Assistant Administrator for Chemical Safety and Pollution Prevention
Deputy Assistant Administrator for Management, Office of Chemical Safety and Pollution Prevention
Deputy Assistant Administrator for Pesticide Programs, Office of Chemical Safety and Pollution
Prevention
Special Assistant, Office of Chemical Safety and Pollution Prevention
Director, Office of Pesticide Programs, Office of Chemical Safety and Pollution Prevention
Director, Office of Pollution Prevention and Toxics, Office of Chemical Safety and Pollution Prevention
Director, Information Technology and Resources Management Division, Office of Program Support,
Office of Chemical Safety and Pollution Prevention
Controller
Deputy Controller
Director, Office of Budget, Office of the Chief Financial Officer
Director, Office of Planning, Analysis and Accountability, Office of the Chief Financial Officer
Director, Office of Resource and Information Management, Office of the Chief Financial Officer
Director, Office of Technology Solutions, Office of the Chief Financial Officer
Director, Accounting and Cost Analysis Division, Office of the Controller
Director, Policy, Training, and Accountability Division, Office of the Controller
Deputy Director, Office of Budget, Office of the Chief Financial Officer
Deputy Director, Office of Technology Solutions, Office of the Chief Financial Officer
Chief, Management, Integrity, and Accountability Branch; Policy, Training, and Accountability Division,
Office of the Chief Financial Officer
Director, Research Triangle Park Finance Center, Office of the Chief Financial Officer
Director, Cincinnati Finance Center, Office of the Chief Financial Officer
Director, Office of Continuous Improvement, Office of the Chief Financial Officer
Audit Follow-Up Coordinator, Office of the Administrator
Audit Follow-Up Coordinator, Office of the Chief Financial Officer
Senior Audit Advisor, Office of Chemical Safety and Pollution Prevention
Audit Liaison, Office of Budget, Office of the Chief Financial Officer
Audit Liaison, Office of the Controller
Audit Liaison, Office of Technology Solutions, Office of the Chief Financial Officer
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Audit Follow-Up Coordinator, Office of Pesticide Programs, Office of Chemical Safety and Pollution
Prevention
Audit Follow-Up Coordinator, Office of Pollution Prevention and Toxics, Office of Chemical Safety and
Pollution Prevention
Audit Follow-Up Coordinators, Regions 1-10
22-F-0059
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