Office of Inspector General

U.S. Environmental Protection Agency

At a Glance

23-F-0002
November 15, 2022

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 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

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.

This audit addresses a top EPA
management challenge:

•	Managing infrastructure funding
and business operations.

The EPA's Fiscal Years 2022 and 2021
Consolidated Financial Statements

The EPA Receives an Unmodified Opinion for Fiscal Years 2022
and 2021

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 2022 and 2021, meaning that they
were fairly presented and free of material
misstatement.

Significant Deficiencies Noted

We noted the following significant deficiencies:

•	The EPA improperly recorded Water Infrastructure Finance and Innovation
Act of 2014 fee fund revenue.

•	The unearned advances account had an abnormal balance.

•	Unneeded funds were not deobligated timely.

•	Capitalized software-in-development costs were inaccurately recorded.

•	The EPA processed standard vouchers without adequate procedures.

Compliance with Laws, Regulations, Contracts, and Grant
Agreements

We did not note any significant noncompliance with laws, regulations, contracts,
and grant agreements.

Recommendations and Planned Agency Corrective Actions

The EPA agreed with all eight 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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