U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL

ANNUAL PLAN

Fiscal Year 2014 >

X

/

/


-------
The Office of Inspector General (OIG) Annual Plan is produced by the OIG with input fi'om the
U.S. Environmental Protection Agency (EPA) Administrator, Deputy Administrator, Assistant
Administrators and Regional Administrators, as well as congressional stakeholders and the
Office of Management and Budget.

This plan is available in hard copy from:

Office of Inspector General

U.S. Environmental Protection Agency

MC 2491T

1200 Pennsylvania Avenue, NW
Washington, DC 20460

by calling (202) 566-2391

or via the Internet at: www.epa.gov/oig

Abbreviations

CFR

Code of Federal Regulation

CSB

U.S. Chemical Safety and Hazard Investigation Board

EPA

U.S. Environmental Protection Agency

FMFIA

Federal Managers' Financial Integrity Act

FTE

Full-Time Equivalent

FY

Fiscal Year

OI

Office of Investigations

OIG

Office of Inspector General

OMB

Office of Management and Budget

Hotline

To report fraud, waste or abuse, contact
us through one of the following methods:

email:	OIG Hotline@epa.gov

phone:	1-888-546-8740

fax:	1-202-566-2599

online:	http://www.epa.gov/oiq/hotline.htm

write: EPA Inspector General Hotline
1200 Pennsylvania Avenue, NW
Mailcode 2431T
Washington, DC 20460

Suggestions for Audits or Evaluations

To make suggestions for audits or evaluations,

contact us through one of the following methods:

email:

OIG WEBCOMMENTS@epa.oov

phone:

1-202-566-2391

fax:

1-202-566-2599

online:

http://www.epa.qov/oiq/contact.html#Full Info

write:

EPA Inspector General



1200 Pennsylvania Avenue, NW



Mailcode 241OT



Washington, DC 20460


-------
Message from the Inspector General

I am pleased to present the U.S. Environmental Protection Agency
(EPA) Office of Inspector General (OIG) Annual Plan for fiscal year
(FY) 2014. This document describes how the OIG will promote
economy, efficiency and effectiveness, and prevent and detect fraud,
waste and abuse, through independent oversight of the programs and
operations of the EPA and the U.S. Chemical Safety and Hazard
Investigation Board. This plan reflects the priority work that the OIG
believes is necessary to keep the Administrator and Congress fully
informed about problems and deficiencies relating to the
administration of agency programs and operations.

This OIG Annual Plan identifies mandated and selected assignment
topics continuing from FY 2013 and scheduled to start during
FY 2014. Although this plan provides a framework for activities we
intend to carry out in FY 2014, the OIG often undertakes unanticipated work based on legislative
mandates, congressional inquiries, hotline requests or governmentwide reviews.

Our plan is implemented through audits, evaluations, investigations and follow-up reviews in
compliance with the Inspector General Act, the appli cable professional standards of the
Comptroller General of the United States, and the Quality Standards for Federal Offices of
Inspector General of the Council of the Inspectors General on Integrity and Efficiency. Readers
are encouraged to consult our website, www.epa.gov/oiy:, for the most current listing of recently
issued reports relating to our implementation of the plan.

Primary sources of input for the assignments listed in this plan included risk assessments across
agency programs and operations based upon prior OIG work, U.S. Government Accountability
Office high-risk assessments, congressional interest, Office of Management and Budget (OMB)
priorities, agency vulnerability/internal control assessments under OMB Circular A-123 and the
Federal Managers' Financial Integrity Act, and identification of key agency challenges and
strategic planning priorities. Our current planning also reflects direct outreach and solicitation of
topics and assignment suggestions from EPA's leadership and external stakeholders
(see appendix B). Other assignments are required or are self-initiated based upon our strategic
themes, which are focused on providing the greatest value and risk reduction to the agency and
the greatest benefit to public health.

We want to thank each member of the agency leadership, as well as external stakeholders and
our staff, for their direct participation in this process. We look forward to continuing an open
dialogue for receiving their ideas, suggestions and feedback. We welcome input into our
planning process and feedback on the quality and value of OIG products and services from all
customers, clients, stakeholders and the public via webcomments.oig@epa.gov.

Inspector General

Arthur A. Elkins Jr.


-------
Table of Contents

1 About the EPA Office of Inspector General

1	EPA Office of Inspector General

2	EPA's Mission

3	Strategic Plan Outline

4 Identifying the Risks

4	Top EPA Management Challenges—Reported by the OIG for FY 2013

5	EPA Internal Control Risks and Weaknesses Identified by the OIG for FY 2013

5	Risks, Priorities and Issues Identified by EPA Through OIG Stakeholder
Outreach Interviews

6 Annual Plan Strategy

6	Making Choices—A Customer-Driven Process

6 Criteria Considered in Identifying and Selecting Audit and Evaluation
Assignments for FY 2014

The Plan: Continuing and New Assignments for FY 2014

8 Office of Audit

9	Contracts and Assistance Agreement Audits

10	Efficiency Audits

11	Forensic Audits

13	Financial Audits

14	Information Resources Management Audits

16 Office of Program Evaluation

17	Air

18	Water

19	Land Cleanup and Waste Management

20	Toxics, Chemical Management and Pollution Prevention

21	Science, Research and Management Integrity

22	Special Program Reviews

23 Office of Investigations

25 OIG Assignments Planned for CSB

Appendices

26 Appendix A — Performance Measures and Targets

27 Appendix B — Risks, Priorities and Issues Identified by OIG During
EPA Outreach Interviews With Agency Management


-------
About the EPA

Office of Inspector General

EPA Office of Inspector General

The Office of Inspector General (OIG) is an independent office of the
U.S. Environmental Protection Agency (EPA) that promotes economy, efficiency and
effectiveness, and prevents and detects fraud, waste and abuse, through independent
oversight of the programs and operations of the EPA and the U.S. Chemical Safety and
Hazard Investigation Board (CSB).

The EPA OIG was created and is governed by the Inspector General Act of 1978 as
amended (5 U.S.C. App. 3). The Act established offices of Inspector General as
independent and objective units to:

1.	Conduct and supervise audits and investigations relating to the programs and
operations of their agencies.

2.	Review existing and proposed legislation and regulations relating to the programs
and operations of their agencies.

3.	Provide leadership and coordination, and recommend policies for activities
designed to promote economy, efficiency and effectiveness, and to prevent and
detect fraud and abuse.

4.	Provide a means for keeping the head of the establishment and Congress fully and
currently informed about problems and deficiencies, and the necessity for any
progress of corrective actions.

EPA OIG staff members are physically located at headquarters in Washington, D.C.;
at regional headquarters offices for all 10 EPA regions; and at other EPA locations
including Research Triangle Park, North Carolina, and Cincinnati, Ohio.

In fiscal year (FY) 2004, Congress designated the EPA Inspector General to also serve as
the Inspector General for the CSB.

1


-------
EPA's Mission

The EPA's mission is to protect human health and the environment. The OIG Strategic and
Annual Plans are specifically designed to connect implementation of the Inspector General
Act with the EPA's mission for the most economical, efficient and effective achievement of
the EPA's performance goals. In appendix A, we provide more details about our FY 2014
annual performance measures and targets. The list below identifies the EPA's strategic
goals, cross-cutting fundamental strategies and priority themes that we take into account
when planning audits, evaluations and investigations.

EPA's FY 2011-2015 Strategic Goals, Cross-Cutting Strategies

and Priority Themes

EPA's Strategic Goals

•	Taking Action on Climate Change and Improving Air Quality

Protect and improve the air so it is healthy to breathe, and risks to human health and the environment are
reduced.

•	Protecting America's Waters

Protect and restore our waters to ensure that drinking water is safe, and that aquatic ecosystems sustain
fish, plants and wildlife, and economic, recreational, and subsistence activities.

•	Cleaning Up Communities and Advancing Sustainable Development

Promote sustainable, healthier communities and protect vulnerable populations and tribal communities.

•	Ensuring the Safety of Chemicals and Preventing Pollution

Ensure the safety of chemicals that are used in consumer products, the workplace, and the environment.

•	Enforcing Environmental Laws

Protect human health and the environment through vigorous and targeted civil and criminal enforcement.

EPA's Cross-Cutting Fundamental Strategies

•	Expanding the Conversation on Environmentalism

•	Working for Environmental Justice and Children's Health

•	Advancing Science, Research, and Technological Innovation

•	Strengthening State, Tribal, and International Partnerships

•	Strengthening the EPA's Workforce and Capabilities

EPA's Priority Themes

•	Making a Visible Difference in Communities across the Country

•	Addressing Climate Change and Improving Air Quality

•	Taking Action on Toxics and Chemical Safety

•	Protecting Water: A Precious, Limited Resource

•	Launching a New Era of State, Tribal and Local Partnerships

•	Embracing EPA as a High Performing Organization

•	Working Toward a Sustainable Future

2


-------
Strategic Plan Outline



Vision



Be the best in public service and oversight for a better er

vironment tomorrow.

Mission

Promote economy, efficiency, effectiveness, and prevent and detect fraud, waste, and abuse
through independent oversight of the programs and operations of the Environmental Protection
Agency and Chemical Safety and Hazard Investigation Board.

Q

Contribute to
improved human health,
safety and the
environment



Goals

Q

Contribute to
improved EPA and CSB
business practices and
accountability

Q

Be responsible
stewards of taxpayer
dollars

V

a

Be the best in
public service

Objectives

•	Influence programmatic and
systemic changes and
actions that contribute to
improved human health,
safety and environmental
quality

•	Add to and apply
knowledge that contributes
to reducing or eliminating
environmental and
infrastructure security risks
and challenges

•	Make recommendations to
improve EPA and CSB
programs

Influence actions that
improve operational
efficiency and
accountability, and achieve
monetary savings

Improve operational
integrity and reduce risk of
loss by detecting and
preventing fraud, waste,
abuse or breach of security

Identify best practices,
risks, weaknesses and
monetary benefits to make
recommendations for
operational improvements



Promote and maintain an
accountable, results-
oriented culture

Ensure our products and
services are timely,
responsive, relevant, and
provide value to our
customers and
stakeholders

Align and apply our
resources to maximize
return on investment

Ensure our processes and
actions are cost effective
and transparent

Maintain the highest ethical
standards

Promote and maintain a
diverse workforce that is
valued, appreciated and
respected

Enhance constructive
relationships and foster
collaborative solutions

Provide leadership, training
and technology to develop
an innovative and
accomplished workforce

3


-------
Identifying the Risks

As required by the Reports Consolidation Act of 2000, the OIG reviewed the major risks,
challenges and planning priorities across EPA and solicited first-hand input from agency
leadership to identify and select OIG products and topics that would be of greatest benefit to the
agency and the American public it serves. This section summarizes and applies the key FY 2013
agencywide risks, issues and management challenges that help guide the general direction and
focus of OIG audits, evaluations and investigative work.

Top EPA Management Challenges—Reported by the OIG for FY 2013

1.	Oversight of Delegations to States: Due to differences between state and federal policies,
interpretations, strategies and priorities, the EPA needs to more consistently and effectively
oversee its delegation of programs to the states, assuring that delegated programs are
achieving their intended goals.

2.	Safe Reuse of Contaminated Sites: The EPA's duty is to ensure that reused contaminated
sites are safe for humans and the environment. The EPA must strengthen oversight of the
long-term safety of sites, particularly within a regulatory structure in which non-EPA parties
have key responsibilities, site risks change over time, and all sources of contamination may
not be removed.

3.	Enhancing Information Technology Security to Combat Cyber Threats: The EPA is

highly vulnerable to existing external network threats, despite reports from security experts
that Advanced Persistent Threats, designed to steal or modify information without detection,
are becoming more prevalent throughout the government.

4.	EPA's Framework for Assessing and Managing Chemical Risks: The EPA's
effectiveness in assessing and managing chemical risks is limited by its authority to regulate
chemicals under the Toxic Substances Control Act. Chemicals manufactured before 1976
were not required to develop and produce data on toxicity and exposure, which are needed to
properly and fully assess potential risks.

5.	Workforce Planning: The EPA's human capital is an internal control weakness in part due
to requirements released under the President's Management Agenda. The EPA has not
developed analytical methods, and does not collect data needed to measure its workload and
the corresponding workforce levels necessary to carry out that workload.

4


-------
EPA Internal Control Risks and Weaknesses Identified by the OIG
for FY 2013

We identified the following EPA internal control weaknesses as part of our annual Federal
Managers' Financial Integrity Act (FMFIA) activities.

•	Tribal Environmental Capacity Building

•	Recovery of Funds

•	Contract Management

•	Compass System Limitation Area Material Weakness to the EPA's Account Operations

Risks, Priorities and Issues Identified by EPA Through
OIG Stakeholder Outreach Interviews

The following identifies cross-cutting risks, priorities and issues identified through outreach
solicitations and meetings with EPA leadership. In appendix B, we provide further details.

•	Emergency Preparedness/Homeland Security

•	Better Collaboration/Coordination with States and Other Federal Agencies with
Environmental Mission and Authority

•	Limitations of EPA Authority

•	Consistent and Reliable Data and Performance Measurement

•	Improving EPA Organizational Design and Coordination of Resources to Eliminate
Duplication

•	Monitoring of States, Grants Management, Compliance and Enforcement
(How Much Delegation? Federal vs. State Roles?)

•	Human Capital Management—Skill Gaps/Alignment With Functions and Workforce
Restructuring

•	Better Use of Technology, Information and Research

•	EPA's Regulatory Process (Better and Faster Analysis of Costs, Science and Benefits)

•	Cross-Media Risk Assessment, Planning and Priority Setting for Better Application of
Resources

•	Hydraulic Fracturing, Water Infrastructure, Financing and Water Availability

•	Climate Change and Air

•	Brownfields/Environmental Justice, Tribal Capacity

5


-------
Annual Plan Strategy

Annual planning is a dynamic process and requires adjustments throughout the year to meet
priorities and to anticipate and respond to emerging issues with the resources available.
The OIG examines the cross-agency risk assessment, agency challenges, prior work, future
priorities and customer input to develop and prioritize its FY 2014 work.

Making Choices—A Customer-Driven Process

OIG work that is not otherwise mandated is proposed, considered and selected through a
rigorous process using the criteria listed below to develop a portfolio of assignments that
represents the best possible return on investment in terms of monetary or public value and
responsiveness in addressing the needs, risks, challenges, priorities and opportunities of OIG
customers, clients and stakeholders. We conducted considerable outreach to agency leaders and
stakeholders on environmental and management risks, challenges and opportunities. We
conducted a risk assessment based upon previously identified risks and challenges. We invited
our entire staff to formulate assignment suggestions from their immediate knowledge of EPA
operations and the consideration of stakeholder input and risks.

Criteria Considered in Identifying and Selecting Audit and Evaluation
Assignments for FY 2014

Environmental/Human Health/Business Risks Addressed, Including:

•	What is the known extent of the issue (i.e., sensitive or other populations impacted, area
involved, and environmental justice)?

•	What are the potential environmental or human health benefits (return on investment) to be
derived and the reduction or prevention of environmental, human health or business risks?

Potential Risk of Fraud, Waste or Abuse:

•	What resources and data, physical or cyber security equipment, and program integrity and
violations of laws/regulations are involved?

Opportunity for Improved Business Systems/Accountability, Including:

•	How does the project align with the EPA's strategic goals/objectives?

•	What is the expected return on investment (for example, potential questioned costs, funds
put to better use or other potential monetary benefits, improved decision-making, improved
data quality/reliability, reduced vulnerabilities, and strengthened internal controls)?

EPA Dollar/Full-Time Equivalent (FTE) Investment/Financial Impact

(in relation to the EPA's overall resource level):

•	What headquarters and regional resources are committed to the program, including FTEs?

•	What resources are used including contracts, grants, state programs or other mechanisms,
such as state funding, to accomplish the goals? How might this impact the program's
implementation? What percentage of the program's funding is coming from state, other
federal or private partnership resources?

6


-------
Prior Audit/Evaluation Results:

•	What are the conditions or changes since prior review by EPA OIG, U.S. Government
Accountability Office or other auditing body?

•	What new information or indications of auditable issues are available?

Stakeholder/Public Interest:

•	Is the topic of the project generating interest from Congress, the public and news
organizations? What is the interest and why?

•	Who are the expected users of the project's product? How would it be used?

7


-------
The Plan: Continuing and
New Assignments for FY 2014

Office of Audit

OIG audit work focuses on five areas, with emphasis on identifying opportunities for cost
savings and reducing risk of resource loss. Funds awarded for assistance agreements and
contracts account for approximately two-thirds of the EPA's budget. Producing timely and
reliable financial statements remains a priority across the federal government. Equally important
is the need to gather, protect and use financial and program performance information to improve
the EPA's accountability and program operations. The Office of Audit's five product lines are:

•	Contracts and Assistance Agreement Audits.

•	Efficiency Audits.

•	Forensic Audits.

•	Financial Audits.

•	Information Resources Management Audits.

Specific assignments are listed on the following pages and will emphasize:

•	Direct testing for fraud in grants, contracts and operational activities.

•	Cost savings resulting from audits of grantee and contractor claims.

•	Continued improvements in assistance agreements and contract administration.

•	EPA's preparation of timely, informative financial statements.

•	EPA's use of financial and program performance information, including efficiency
measures, to identify cost savings and potential cost recoveries, reduce risks and
maximize results achieved from its environmental programs.

•	Reviews of the EPA's internal controls, including its risk assessment processes and
allocation/application of human resources.

•	The EPA's integrity of data and system controls, as well as compliance with a variety of
federal information security laws and requirements, to ensure system and data integrity.

Following are definitions of OIG carryover, discretionary and mandated assignments:

•	Carryover Assignments: Assignments still in progress that started in a prior fiscal year.

•	Discretionary Assignments: Assignments designed to identify and prioritize projects in
areas of highest risk that support OIG mission.

•	Mandated Assignments: Assignments that the OIG is required to conduct by law or
regulation.

8


-------
Contracts and Assistance Agreement Audits

The Contracts and Assistance Agreement Audits product line is responsible for conducting
performance audits of EPA's management of contracts, grants, cooperative agreements and
interagency agreements.

Point of Contact: Janet Kasper (312) 886-3059

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Emergency and Rapid Response
Service Contracts

To determine whether the EPA is
effectively managing task orders under
Emergency and Rapid Response
Service Contracts.

October 2012

Reviews of Agency Purchase Card
and Convenience Check Program

To determine whether the EPA has
sufficient controls to identify illegal,
improper and erroneous use of
purchase cards.

December 2012

State Revolving Fund - Pace of
Expenditures

Have the EPA and state actions to
address large balances of Drinking
Water State Revolving Fund
Unliquidated obligations reduced such
obligations?

March 2013

Puget Sound Action Agenda

To determine whether the EPA
ensures that its grantees are
effectively administering Puget Sound
grants throughout the life of the grants.

June 2013

Discretionary

Grant Advanced Monitoring

To determine whether the EPA's
advanced administrative monitoring
system is effective at ensuring that
grant recipient costs are allowable.

October 2013

EPA's Contract Management
Assessment Program

To determine whether assessments
are sufficient to identify weaknesses in
internal controls or systemic
vulnerabilities.

October 2013

Strategic Sourcing of Contracts

To evaluate whether the EPA is using
and gaining efficiencies from federal
strategic sourcing initiatives.

January 2014

Hurricane Sandy Funding

To determine whether the Office of
Water and Region 2 are effectively
overseeing the Disaster Relief Act
funding.

April 2014

Mandated

Improper Payments Act Compliance
for FY 2013

To determine EPA compliance with the
2010 Improper Payments Elimination
and Recovery Improvement Act.

November 2013

9


-------
Efficiency Audits

The Efficiency Audits product line is responsible for identifying ways for EPA programs and
operations to improve processes and realize cost savings, thus freeing resources for high
priority environmental projects.

Point of Contact: Mike Davis (513) 487-2363

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Controls for Travel of EPA Employees

To determine the effectiveness of
EPA oversight and controls for
employees in travel status.

April 2013

Management and Disposal of
Underutilized Personal Property Stored
in Warehouse Spaces

To determine the extent to which the
EPA's personal property stored in
select warehouse spaces are
effectively utilized, accounted for and
disposed of by the EPA.

April 2013

EPA's Fleet Management

To determine whether the EPA's fleet
program is in accordance with the
federal fleet requirements for
utilization and fuel energy
conservation.

June 2013

Discretionary

Oversight of Guam, American Samoa,
Commonwealth of the Northern Mariana
Islands and U.S. Virgin Islands

To examine whether the EPA has
controls and processes in place to
ensure proper oversight of Guam,
American Samoa, Commonwealth of
the Northern Mariana Islands and
U.S. Virgin Islands.

January 2014

EPA Investments in Information
Technology Products and Services

To determine whether information
technology investments in the EPA's
Office of Environmental Information
are efficiently and effectively
managed to meet the agency's
strategic goals and mission.

January 2014

Reliability of EPA Personal and Real
Property Information

To determine whether the EPA has
accurate and reliable information on
its personal and real property to
effectively manage the property and
reduce environmental impact.

September 2014

10


-------
Forensic Audits

The Forensic Audits product line is responsible for conducting financial audits of EPA
assistance agreements and contracts to identify potentially fraudulent actions and determine
the acceptability of costs claimed under specific financial instruments.

Point of Contact: Robert Adachi (415) 947-4537

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Pegasus Technical Services Inc.
Contract

To determine whether costs charged
to the contract are allowable, allocable
and reasonable in accordance with
contract terms and applicable
government regulations.

October 2012

Cooperative Agreement #83456201
Awarded to the National Association of
State Department of Agriculture
Research Foundation

To determine whether cooperative
agreement awards were conducted in
accordance with 40 Code of Federal
Regulations (CFR) Part 30 and costs
incurred were allowable.

January 2013

Apex Logistics Contract

To examine whether costs charged to
the contract are allowable, allocable
and reasonable in accordance with
contract terms and applicable
government regulations.

January 2013

Cooperative Agreement #00T13801
Awarded to the California Air
Resources Board

To determine whether cooperative
agreement awards were conducted in
accordance with 40 CFR Part 31 and
costs incurred were allowable.

March 2013

Dozier Technologies Inc. Contract
(EP-C-08-020)

To determine whether costs charged
to the contract are allowable, allocable
and reasonable in accordance with
contract terms and applicable
government regulations.

March 2013

Discretionary

Brownfields Revolving Loan Fund
Assistance Agreements

To perform assistance agreement
audits of selected Brownfields
recipients.

October 2013

Construction Grants Awarded to the
District of Columbia Water and Sewer
Authority

To determine whether the costs
claimed under the grants are
reasonable, allocable and allowable.

June 2014

Environmental Science and
Engineering Fellowship Program
Assistance Agreements

To perform assistance agreement
audits of selected recipients to
determine whether funds were
expended in accordance with federal
regulations.

March 2014

Review of Post-American Recovery
and Reinvestment Act Diesel Emission
Recovery Act Grants

To review Diesel Emission Recovery
Act grants awarded.

September 2014

Forensic Review of Hotline Complaints

To review hotline complaints
submitted to the OIG Hotline.

January 2014

11


-------
Title

Primary Objective

Estimated/Actual
Start Date

Mandated

FY 2014 Single Audit Program

To review and process Single Audit
reports that are prepared by Certified
Public Accountant firms under the
Single Audit Act.

January 2014

Region 9 Request - Review of
Selected Tribes in Nevada

To review EPA grants open or closed
within the past 3 years involving select
tribes in Nevada.

October 2014

12


-------
Financial Audits

The Financial Audits product line is responsible for rendering opinions on financial statements
produced by the EPA, and also conducts performance audits of EPA financial matters for
efficiency and effectiveness.

Point of Contact: Paul Curtis (202) 566-2523

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

FY 2012 Financial Statements:
Pesticides Reregistration and Expedited
Processing Fund

To render an opinion on the agency's
statements, and determine
compliance with laws and
regulations.

November 2012

FY 2012 Financial Statements:
Pesticides Registration Fund

To render an opinion on the agency's
statements, and determine
compliance with laws and
regulations.

November 2012

EPA's Accounts Receivable Internal
Controls

To determine whether the EPA's
accounts receivable internal controls
function is effective and ensures the
reliability of financial reports.

January 2013

EPA Biennial Use Fee Reviews

To determine effectiveness of the
EPA's biennial use fee reviews.

January 2013

FY 2013 EPA Financial Statements

To determine whether the EPA's
consolidated financial statements
were fairly stated in all material
respects.

April 2013

Discretionary

Review of Unliquidated Obligations at
Research Triangle Park

To determine whether the EPA has
adequate controls in place to identify
and deobligate unneeded contract
and miscellaneous obligations.

March 2014

Review of Independent Government
Cost Estimates and Indirect Costs for
EPA's Interagency Agreements

To determine whether the EPA
promotes sound financial practices.

March 2014

Mandated

FY 2013 Financial Statements: Pesticide
Reregistration and Expedited Processing
Fund

To render an opinion on the agency's
statements, and determine
compliance with laws and
regulations.

March 2014

FY 2013 Financial Statements: Pesticide
Registration Fund

To render an opinion on the agency's
statements, and determine
compliance with laws and
regulations.

March 2014

FY 2014 EPA Financial Statements

To determine whether the EPA's
consolidated financial statements
were fairly stated in all material
respects.

June 2014

13


-------
Information Resources Management Audits

The Information Resources Management Audits product line reviews the economy, efficiency
and effectiveness of the agency's investments in systems for achieving environmental goals
and ensuring integrity of data used for decision making; and reviews strategies for setting
priorities, developing plans to accomplish the priorities, and measuring performance.

Point of Contact: Rudolph Brevard (202) 566-0893

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Implementation of Cross-Media
Electronic Reporting Rule

To determine to what extent the EPA
implemented a management control
structure for the implementation of
the Cross-Media Electronic
Reporting Regulation.

January 2012

Skills Assessment of Personnel With
Critical Information Security
Responsibilities (Contracted)

To determine the effectiveness of
the qualifications and current skills of
EPA personnel with significant
information security responsibilities.

February 2012

Review of EPA's Cloud Computer
Initiative

To determine whether the EPA has
adequately planned to migrate to the
cloud.

October 2012

EPA's Controls Over Sensitive
Personally Identifiable Information

To determine whether the EPA has
implemented procedures and
processes for protecting Personally
Identifiable Information in
accordance with federal and agency
criteria.

November 2012

FY 2013 Federal Information
Management Security Act Audit

To determine whether the EPA's
Computer Security Program is
comprehensive and actively
implemented throughout the agency
to balance risk and mission
requirements.

April 2013

Mandated

FY 2014 Federal Information Security
Management Act Audit

To determine whether the EPA's
Computer Security Program is
comprehensive and actively
implemented throughout the agency
to balance risk and mission.

April 2013

Follow-Up on Significant Information
Technology Security Findings

To determine whether EPA has
implemented corrective actions to
address significant information
technology security findings.

March 2014

Status of Cloud-Computing
Environments within the Federal
Government

To determine each selected
agency's efforts to adopt cloud-
computing technologies.

March 2014

14


-------
Title

Primary Objective

Estimated/Actual
Start Date

EPA FY 2014 FISMA Audit

To conduct an independent audit of
the agency's compliance with the
Federal Information Security
Management Act.

March 2014

Data Quality Review of Self-Reported
Information in EPA's XACTA

To determine whether the EPA
implemented management control
processes for maintaining the quality
of data in the EPA's XACTA System.

March 2014

15


-------
Office of Program Evaluation

The Office of Program Evaluation examines root causes, effects and opportunities leading to
conclusions and recommendations that influence systemic changes and contribute to the
accomplishment of the agency's mission. Program evaluations answer questions about how well
a program or activity is designed, implemented or operating in achieving EPA goals. Program
evaluations may produce conclusions about the value, merits or worth of programs or activities.
The results of program evaluations can be used to improve the operations of EPA programs and
activities, sustain best practices and effective operations, and facilitate accomplishment of EPA
goals. Evaluations by the Office of Program Evaluation are performed by staff with diverse
backgrounds, including accounting, economics, environmental management and the sciences,
and they comply with Government Auditing Standards.

Evaluation topics and priorities in our plan are driven by our assessment of organizational risk in
relation to available resources and based on input from the EPA's leadership, Congress and
stakeholders. Program evaluations are conducted by the following six product lines:

•	Air.

•	Water.

•	Land Cleanup and Waste Management.

•	Toxics, Chemical Management and Pollution Prevention.

•	Science, Research and Management and Integrity.

•	Special Program Reviews.

Assignments concentrate on all of the OIG themes, reflecting our attention to the agency's
mission as well as the agency's operational and systemic risks. Specific assignment titles are
listed on the following pages.

16


-------
Air

The Air product line is responsible for conducting evaluations to assess EPA management of
risks to provide reasonable assurance of progress toward goals and adequate protection to the
public.

Point of Contact: Rick Beusse (919) 541-5747

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Use of Remote Sensing Data to Assess
Contamination at Delisted Superfund
Sites - Phase 2

To determine whether hyperspectral
imaging data can be used to assess
pollution concentrations in vegetation
as a potential indication of pollutant
concentrations at delisted Superfund
sites.

October 2011

EPA Oversight of Clean Air Act Title V
Fees

To determine whether the EPA's
oversight of state and local Title V
programs' fee revenue practices are
effective in identifying and obtaining
corrective actions.

June 2012

Congressional Request: Evaluation of
EPA Office of Research and
Development's Research on Human
Subjects

To determine whether the EPA
followed applicable laws, regulations,
policies, procedures and guidance
when it exposed human subjects to
diesel exhaust emissions or
concentrated airborne particles.

October 2012

Assessment of EPA Efforts To Reduce
Methane Product Emissions From
Leaking Pipes

To determine the effectiveness of the
EPA's greenhouse gases
requirements in addressing methane
emissions.

June 2013

Discretionary

EPA Region 2 Oversight of U.S. Virgin
Islands Authorized Environmental
Program

To determine whether the U.S. Virgin
Islands implemented its EPA-
authorized environmental program.

October 2013

Review of Enforcement Decree
Compliance for Selected Clean Air Act
Sources

To determine whether the EPA
ensured that selected facilities with
Clean Air Act violations comply with
terms of their enforcement
agreement.

October 2013

Review of Selected Ambient Air Quality
Monitoring Networks

To assess whether the EPA
effectively used annual network
reviews to determine how well the
monitoring network is achieving its
objectives.

November 2013

EPA Efforts to Incorporate
Environmental Justice into Clean Air Act
Inspections for Air Toxics

To determine whether the EPA has
targeted overburdened communities
or communities with disproportionate
impacts for air toxics inspections.

December 2013

17


-------
Water

The Water product line is responsible for conducting evaluations to assess the EPA's
protection and restoration of healthy aquatic communities and waters that sustain human
health.

Point of Contact: Dan Engelberg (202) 566-0830

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Feasibility of EPA Achieving Its Goal of
Reducing the Gulf of Mexico Hypoxic
Zone

To determine to what extent the EPA
and states in the Mississippi River
watershed are reducing nutrients
that contribute to the Gulf of Mexico
Hypoxic Zone.

January 2013

Discretionary

EPA Region 2 Oversight of U.S. Virgin
Islands Authorized Environmental
Program

To determine how Region 2
oversees the U.S. Virgin Islands
authorized environmental program to
ensure that they effectively protect
human health and the environment.

October 2013

EPA's Oversight of Hydraulic Fracturing

To determine whether the EPA is
effectively and efficiently managing
the environmental and health risks to
drinking water and surface water.

November 2013

Retrospective Study of Drinking Water
State Revolving Fund Loans

To determine whether Drinking
Water State Revolving Fund loans
are issued only after a public water
system has demonstrated it has the
technical, managerial and financial
capacity to operate.

November 2013

Municipal Separate Stormwater Sewers:
Consent Decree Progress and
Challenges

To determine what results the major
municipal stormwater improvement
programs had on compliance and
environmental quality.

January 2014

18


-------
Land Cleanup and Waste Management

The Land Cleanup and Waste Management product line is responsible for conducting evaluations
to assess EPA programs, activities and initiatives to protect human health and the environment
through cleanup and waste management, accident prevention and emergency response.

Point of Contact: Tina Lovingood (202) 566-2906

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

Review of Office of Solid Waste and
Emergency Response Cross Program
Revitalization Measures

To determine whether the EPA's designation
of assessed and cleaned-up sites that have
achieved the "ready for anticipated uses"
and/or "protective for people" performance
measures include effective controls.

April 2012

Hazardous Waste Discharge by
Publicly Owned Treatment Works

To evaluate the effectiveness of the EPA's
programs in preventing and addressing
contamination of surface water from
hazardous wastes passing through Publicly
Owned Treatment Works.

March 2013

Cross Program Revitalization
Measures - Hyperspectral Imaging in
Region 4

To determine whether hyperspectral imaging
data is a useful tool for assessing
contamination and cleanup at Brownfields,
Resource Conservation and Recovery Act,
Leaking Underground Storage Tank, and
Superfund sites.

April 2013

Human Exposure from Lead Smelters

To determine what the EPA has done to
address the sites in its Lead Smelter
Strategy.

June 2013

Discretionary

EPA Region 2 Oversight of U.S.
Virgin Islands Authorized
Environmental Program

To determine how Region 2 oversees the
U.S. Virgin Islands authorized environmental
program to ensure that they effectively
protect human health and the environment.

October 2013

EPA Oversight of the Import of
Hazardous Waste

To determine whether EPA oversight of the
import of hazardous waste is accomplishing
the identified goals.

November 2013

Environmental Risks from Resource
Conservation and Recovery Act
Hazardous Waste Post-Closure
Landfills

To determine the public health,
environmental and fiscal risks associated
with the expiration of the 30-year post-
closure time period.

November 2013

Siting Renewable Energy on Potentially
Contaminated Land and Mine Sites:
Environmental, Health and Financial
Risks

To determine whether the EPA's efforts to
promote siting renewable energy on
potentially contaminated land and mine sites
ensure short- and long-term human health
protection.

December 2013

Effectiveness of Third Party
Certifications in State-Led Superfund
Cleanups

To determine how effectively third party
certifiers for state-led hazardous site
cleanups are being used by states to
address the backlog of contaminated sites.

December 2013

19


-------
Toxics, Chemical Management and Pollution
Prevention

The Toxics, Chemical Management and Pollution Prevention product line is responsible for
conducting evaluations to assess the EPA's management of chemical risks and programs to
prevent pollution.

Point of Contact: Jeffrey Harris (202) 566-0831

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

EPA's Laboratory Fraud Prevention

To determine the use of procedures
by the EPA, states and other federal
agencies to manage the
communication of and appropriate
action on laboratory data determined
to be fraudulent.

August 2012

EPA's Greener Product Programs -
Conventional Reduced Risk Pesticide
Program

To determine whether the
Conventional Reduced-Risk
Pesticide Initiative is meeting its goal
of reducing risks to human health
and the environment by encouraging
the development, registration and
use of pesticide products that are
lower risk.

January 2013

Discretionary

Design for Environment Partnership
Program

To determine how effective the
EPA's design is for the environment
labeling program highlighting safer
products for consumer use.

November 2013

Adequacy of EPA's Oversight of State
Federal Insecticide, Fungicide and
Rodenticide Act Programs

To determine the efficiency of the
EPA's oversight of the states'
implementation of the Federal
Insecticide, Fungicide and
Rodenticide Act program.

October 2013

EPA's Use of/Adherence to Quality
Management Policies

Determine to what extent the EPA's
Office of Pollution Prevention and
Toxics' Risk Assessment Division
uses and implements policies during
chemical risk assessments.

October 2013

National Pesticide Information Center
Federal Insecticide, Fungicide and
Rodenticide Act Programs Enforcement
Referrals

To determine whether Federal
Insecticide, Fungicide and
Rodenticide Act and pesticide
misuse issues that have been
reported to the National Pesticide
Information Center are being
adequately resolved by federal or
state authorities.

April 2014

20


-------
Science, Research and Management Integrity

The Science, Research and Management Integrity product line conducts independent evaluations
of EPA's research and development programs and operations managed and directed by the
Office of Research and Development. Particular focus is given to those areas that support human
health and environmental protection. The product line also develops, coordinates and reports on
OIG-identified agency management challenges and internal control weaknesses.

Point of Contact: Patrick Gilbride (303) 312-6969

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

OIG Hotline Complaints - Management
of Travel and Trust Funds in Region 6
Water Quality Protection Division

To determine whether the division
used trust funds in accordance with
applicable federal laws and
regulations as well as any
agreement with the U.S. Army Corps
of Engineers.

February 2013

Discretionary

Effectiveness of Controls over the
Sustainable and Healthy Communities
Research Program

To determine the effectiveness of
internal controls over the Office of
Research and Development's
Sustainable and Healthy
Communities Research.

March 2014

EPA's Use of Other Federal Agencies,
Universities and Foundations for
Research

To determine the extent to which the
EPA utilizes external sources for
agency research and to identify
controls that could enhance/support
the EPA's use of external sources to
meet program objectives.

May 2014

Equipment Utilization Within the Office of
Research and Development

To determine whether the Office of
Research and Development has
adequate controls over research
equipment, including utilization,
maintenance safeguarding and
calibration.

June 2014

Mandated

Management Challenges and Internal
Controls Weaknesses for 2014

To provide the Administrator and
Congress those issues which
present the greatest challenge to the
EPA.

January 2014

21


-------
Special Program Reviews

The Special Program Reviews product line is responsible for conducting evaluations to
assess agency programs and functions to determine whether sufficient controls are in place to
reduce the agency's risk of fraud, waste and abuse in its operations.

Point of Contact: Eric Lewis (202) 566-2664

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

EPA Controls Over Time and Material
Contracts

To determine whether the EPA
processes and procedures require
verification that contractor personnel
have the qualifications and
credentials specified in the contract.

May 2011

Alternative Asbestos Control Method
Special Review

To assess the EPA's management
controls for the Alternative Asbestos
Control Method experiments.

February 2012

STAR (Students to Achieve Results)
Grant Hotline

To review a hotline complaint
allegation.

July 2012

Discretionary

Evaluate EPA's Progress Under
Environmental Justice Plan 2014

To assess the effectiveness of the
environmental justice 2014 plan.

October 2013

Follow Up - EPA Inaction in Identifying
Hazardous Waste Pharmaceuticals May
Result in Unsafe Disposal

To determine whether the EPA has
established a process to review
pharmaceuticals for regulation as a
hazardous waste and develop an
outreach and compliance assistance
plan.

October 2013

Follow Up - Weaknesses in EPA's
Management of the Radiation Network
System Demand Attention

To assess whether the EPA
established and enforced
expectations for Radiation Network
System operations readiness.

October 2013

Review of EPA's Antimicrobial Testing
Program

To determine whether the EPA
needs to consider upgrades to its
antimicrobial testing program that
stakeholders have stated is
ineffective.

January 2014

Mandated

Review of EPA's Classification of
National Security Information

To assess the EPA's self-inspection
program of its National Security
Information program.

August 2014

22


-------
Office of Investigations

The OIG's Office of Investigations (01) primarily employs criminal investigators (Special
Agents), as well as computer specialists and support staff. 01 maintains a presence in most EPA
regions and at selected EPA laboratories, other facilities and headquarters. The majority of
investigative work is reactive in nature.

01 receives hundreds of allegations of criminal activity and serious misconduct in EPA programs
and operations that may undermine the integrity of, or confidence in, programs, and create
imminent environmental risks. To prioritize its work, 01 evaluates allegations to determine
which investigations may have the greatest impact on agency resources and on the integrity of an
EPA program and operation, and produce the greatest deterrent effect. 01 contributes to EPA's
strategic goals by ensuring that the agency's resources are not pilfered by criminal activity or
criminals.

01 has identified the following major areas on which to focus its investigative activity:

•	Financial fraud (contracts and assistance agreements).

•	Threats directed against EPA employees, facilities and assets.

•	Alleged criminal conduct or serious administrative misconduct by EPA employees.

01 supports the agency and conducts OIG oversight and assistance, as directed by statute and
OMB, by providing fraud awareness, detection and prevention training to federal, state, tribal
and local officials. 01 manages the EPA OIG Hotline Program, which receives hundreds of
complaints, referrals and allegations of abuse and misconduct. Additionally, 01 is responsible for
identifying and investigating attacks against the EPA's computer and network systems to protect
resources, infrastructure and intellectual property.

Point of Contact: Patrick Sullivan (202) 566-0308

Investigations begun prior to FY 2014 and new investigations will examine:

•	Criminal activities and fraud in programs funded under the American Recovery and
Reinvestment Act (Recovery Act).

•	Criminal activities in the award, performance and payment of funds under EPA contracts,
grants, and other assistance agreements to individuals, companies and organizations.

•	Contract laboratory fraud relating to water quality and Superfund data, as well as
payments made by the EPA for erroneous environmental testing data and results, that
could undermine the bases for EPA decisionmaking, regulatory compliance and
enforcement actions.

•	Criminal activity or serious misconduct affecting the integrity of EPA programs that
could erode the public trust.

•	Threats directed against EPA employees, facilities and assets.

23


-------
•	Intrusions into and attacks against the EPA's network, as well as incidents of hijacking
EPA computers and/or systems in furtherance of criminal activities, and use of outside
computers to commit fraud against EPA.

•	Alleged criminal conduct or serious administrative misconduct by EPA employees.

•	Disaster relief spending, including participating with other federal OIGs and the EPA
OIG Office of Audit on the Hurricane Sandy Fraud Taskforce.

•	Small Business Innovative Research grant fraud proactive investigative projects.

•	Fraud indicators at a Superfund site in New York City.

01 will continue fraud awareness briefings and training of key EPA officials and other
stakeholders to increase their awareness of the indicators of contract and grant fraud and to
identify and report funds at risk, as well as recognize and refer cyber threat issues and indicators
of vulnerabilities.

24


-------
OIG Assignments Planned for CSB

The U.S. Chemical Safety and Hazard Investigation Board (CSB)
was created by the Clean Air Act Amendments of 1990. The
CSB's mission is to investigate accidental chemical releases at
facilities, report to the public on the root causes, and recommend
measures to prevent future occurrences.

In FY 2004, Congress designated the EPA Inspector General to serve as the Inspector General
for the CSB. The OIG has the responsibility to audit, evaluate, inspect and investigate the CSB's
programs, and to review proposed laws and regulations to determine their potential impact on
CSB programs and operations. During FY 2014, the OIG plans to assess the following for CSB:

•	Does CSB provide timely, accurate, complete and useful information for
decisionmaking?

•	Are CSB programs and operations performing with the greatest efficiency and
effectiveness in regard to allocation and application of resources?

•	Are the CSB's computer security and privacy programs comprehensive and actively
implemented throughout the organization to balance risk and mission requirements?

Title

Primary Objective

Estimated/Actual
Start Date

Carryover

CSB FY 2013 Financial Statements
Audit (Contracted)

To monitor contractor to complete audit
of FY 2013 financial statements.

October 2012

CSB Contracts

To examine whether the CSB effectively
manages its support contracts.

June 2013

CSB FY 2013 Federal Information
Security Management Act Audit
(Contracted)

To conduct an independent audit of the
CSB's compliance with the Federal
Information Security Management Act.

August 2013

Mandated

CSB Improper Payments Elimination
and Recovery Improvement Act
Compliance Review - FY 2014

To determine whether the CSB is
compliant with the Improper Payments
Elimination and Recovery Improvement
Act.

October 2013

FY 2014 CSB Financial Statements
(Contracted)

To monitor contractors to complete audit
of FY 2014 financial statements.

June 2014

FY 2014 Management Challenges and
Internal Control Weaknesses for CSB

To develop the OIG input to the CSB on
FY 2014 Management Challenges.

March 2014

CSB - FY 2014 Federal Information
Security Management Act Audit

To conduct an independent audit of the
CSB's compliance with the Federal
Information Security Management Act.

June 2014

25


-------
Appendix A—Performance Measures and Targets

The Government Performance and Results Act requires federal agencies to develop goal-based
budgets supported by annual performance plans that link the organization's mission and strategic
goals to its annual performance goals. The annual performance goals are quantifiable targets
supported by measures and indicators representing the expected outputs and outcomes. The
agency's annual Performance Accountability Report includes actual results compared to targets
to inform OMB, Congress and the public about the value they are receiving for funds invested
and how well the OIG is achieving its goals.

This annual plan explains how the OIG will convert its resources into results and benefits of its
work through required and priority assignments. Outcome results and benefits from OIG work
reflect measurable actions and impacts, but there is typically a time lag between the completion
of OIG work and recognition of such results and benefits. Therefore, results and benefits from
OIG audits, evaluations, investigations and reviews are recorded in the year they are recognized
regardless of when the work was performed. Through current-year outputs and long-term
outcomes, OIG targets and seeks to measure and demonstrate the many ways the OIG promotes
economy, efficiency and effectiveness; and prevents and detects fraud, waste and abuse. The
following are the OIG annual performance goals that this plan is designed to achieve, pending
final budget agreements:

Annual performance
measures

Supporting indicators

FY 2014 targets

(based upon
Pres. Budget
funding level)

Environmental and business actions
taken for improved performance and
reduction of risk from or influenced
by OIG work.

o Policy, process, practice, or control changes

implemented,
o Environmental or operational risks reduced or
eliminated.

o Critical congressional or public concerns resolved,
o Certifications, verification, or analysis for decision or
assurance.

307 total

Environmental and business
recommendations or risks identified
for corrective action by OIG work.

o Recommendations or best practices identified for

implementation,
o Risks or new management challenges identified for
action.

o Critical congressional/public actions addressed or

referred for action,
o Outreach/technical advisory briefings.

786 total

Potential monetary return on
investment in the OIG, as a
percentage of the OIG budget.

o Recommended questioned costs,
o Recommended cost efficiencies and savings,
o Fines, penalties, settlements, restitutions.

125% return on
investment of
budget

Criminal, civil, administrative, and
fraud prevention actions taken from
OIG work.

o Criminal convictions / Civil judgments,
o Indictments/informations.

o Administrative actions (staff actions and suspension
or debarments).

90 total

26


-------
Appendix B—Risks, Priorities and Issues Identified by OIG
During EPA Outreach Interviews With Agency Management

The OIG is highly committed to being a customer-driven organization that provides products and services
that address the needs and concerns of agency management. Our planning processes are highly dependent
upon, and reflective of, the input received through our outreach to the agency. A summary of current
identified areas of concern from the agency is provided below. This information is used by staff as a
foundation to lead to the selection of well-supported assignments that answer compelling needs with
measurable results.

EPA Cross-Cutting Risks	EPA Outreach Interviews Areas of Concern

Emergency Preparedness/
Homeland Security

•	Preparedness for emergencies (natural or manmade disasters)
is an unknown risk and needs greater attention. In addition,
EPA needs to continue to mitigate the past and future impacts
of disasters.

•	Protection of drinking water from emerging contaminants
(Water Sentry program) requires a coordinated effort.

•	Waste management under possible disaster conditions
presents a secondary risk that needs attention.

•	Data security and protection controls may be vulnerable and
should be tested to guard against cyber attack.

•	Clarification of roles and responsibilities (within the EPA,
and between federal agencies and states) needs to be
determined and articulated for better collaboration.

•	The need for a statute on how we deal with imports (with
possible health impacts on citizens) is needed to ensure
emergency preparedness/homeland security.

Better Collaboration/Coordination
With States and Other Federal
Agencies

•	The 30 federal agencies with an environmental mission need
better coordination in planning and implementation.

•	There is a lack of direct lines of authority (coordination)
among and between Assistant Administrators and regions.

•	Plans, resources, data, authority and measures are not aligned
with risks and priorities across the EPA.

•	Better collaboration internally and with stakeholders is
needed to align processes, leverage resources, implement
controls, reduce duplication, examine best practices and align
resources with priorities.

•	The EPA needs to coordinate with Department of Homeland
Security for streamlined efforts on the new President
Directive on Cyber Security for Water Security.

•	Oil and gas issues on tribal land complicate environmental
issues and require better collaboration.

•	Gulf Coast restoration requires collaboration and
coordination with states and other federal agencies.

27


-------
EPA Cross-Cutting Risks

EPA Outreach Interviews Areas of Concern

Consistent and Reliable Data and
Performance Measurement

•	There are gaps and inconsistencies in the information that
drives the decisionmaking process.

•	Questions exist as to whether the EPA is collecting the right
data, of sufficient quality, and is making that data available.
The agency needs to examine the quality of performance
measures to ensure activities are properly compiled.

•	The EPA's information systems are not aligned for
efficiency, consistency, accessibility and security.

•	Control of laboratory data, personally identifiable
information and confidential business information outside of
EPA, especially related to registration and re-registration of
pesticides and other formulas regulated by the Toxic
Substances Control Act, all present significant risks.
Improvements to data quality from contract laboratories are
needed.

•	Clean Water Act standards are measured differently in each
state so information collected is not consistent.

•	Better quality data is needed from multiple data points to
ensure consistent and reliable information.

Improving EPA Organizational
Design and Coordination of
Resources to Eliminate Duplication

•	EPA and its partners need a clear linkage among goals,
resources, processes, actions taken and outcomes.

•	There are no standards or agreements among stakeholders on
which to base measures of environmental risks and outcomes
(states vs. national).

•	Program efficiency, progress and results are not measured
meaningfully.

•	EPA does not know what activities cost and what efficiency
measures are needed. The agency lacks information needed to
assist with determining when investments need to be made in
relation to other priorities.

•	Existing statutes are very prescriptive and allow limited
flexibility in managing compliance. Many statutes may not be
relevant today and revision may be needed to comply with
existing high risk areas.

•	Differences exist in the ways environmental laws are
monitored and enforced between the EPA and states/tribes.
Monitoring requirements for grants are underfunded.

•	EPA must streamline administrative functions to eliminate
unnecessary redundancy.

28


-------
EPA Cross-Cutting Risks

EPA Outreach Interviews Areas of Concern

Monitoring of States, Grants
Management, Compliance and
Enforcement (How Much
Delegation? Federal vs. State Roles?)

•	EPA lacks control of fund management and accountability
once the funds for assistance agreements to grantees are
distributed; half of the agency's budget is allocated to these
agreements.

•	The highest risk in the grants management process is at the
point that funds are spent by grantees and are sometimes
commingled with other sources of grant funds.

•	Grantees have limited capacity or incentive to account for
funds or performance.

•	The EPA lacks resources to adequately monitor grants and
lacks uniform reporting and accountability conditions.

•	The EPA should execute and manage grants for measurable
success vis-a-vis their intended goals.

•	The EPA needs to determine how to get the best balance for
return on investment between mandatory and voluntary
actions.

Human Capital Management -
Skill Gaps/Alignment With
Functions

•	The EPA should analyze its workforce to identify and fill
skill gaps and to implement its Human Capital Strategy.

•	The EPA needs to determine programs and areas that can be
done locally versus nationally to decrease overhead.

•	The EPA must determine whether employees in its workforce
are aligned in the right places.

Better Use of Technology,
Information and Research

•	The EPA should manage its resources and the performance of
contractors to optimize their value added.

•	The EPA needs operational controls to protect and account
for costs, assets, information and performance.

•	The EPA should more strongly implement FMFIA and the
OMB Circular A-123 process.

•	The Working Capital Fund lacks the transparency or
accountability necessary to prove its efficiency.

•	Agency management should better understand and be
accountable for taking agreed-to actions on OIG
recommendations.

EPA's Regulatory Process
(Better and Faster Analysis of Costs,
Science and Benefits)

•	The EPA's extremely complex regulatory process should be
streamlined without compromising its required integrity.

•	Competing interests of stakeholders and the regulated
community may lead to overlaps, gaps and conflicts.

•	Many policies are out of date or are based on outdated
science and technology.

•	EPA should evaluate how to use voluntary incentives for
compliance.

29


-------
EPA Cross-Cutting Risks

EPA Outreach Interviews Areas of Concern

Cross-Media Risk Assessment,
Planning and Priority Setting for
Better Application of Resources

•	The EPA should use a consistent approach to evaluate actual
and relative environmental and operational risk and program
effectiveness, assign resource priorities, make regulatory
decisions, take enforcement actions, and inform its
stakeholders.

•	EPA should ensure the integrity of laboratory data, results and
scientific research; knowledge and innovative technology
should be transferred in a timely manner in the regulatory and
policy process.

•	Agency programs need a consistent approach for determining
relative risk and demonstrating outcome results.

Water Infrastructure, Financing and
Water Availability

•	The EPA needs to address failing infrastructure for drinking
and storm water systems. Approximately $20 billion will be
needed to stabilize infrastructure across states.

•	It is unclear who will pay for needed infrastructure
investment.

•	Hydro fracking in New York needs a before-and-after study.

•	EPA should examine how natural gas should be regulated
under the Clean Water Act.

Land and Superfund

•	It appears that Superfund sites are taking an extraordinary
long time to address. The agency needs to address this issue
and determine whether management issues are preventing
sites from doing cleanups.

•	The EPA needs to examine chemical safety and ensure that
states are monitoring this problem to ensure safety of
communities.

Climate Change and Air

•	EPA should determine how to use creative financing and
leverage funding through public/private partnerships.

•	EPA should utilize a better method for understanding
air toxics and their monitoring.

•	EPA needs a clear and unified strategy, including
participation of other federal agencies and other national
governments.

•	Climate change in the northeast needs to be analyzed and
determine why rebuilding always focuses on same places.

30


-------