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U.S. Environmental Protection Agency
OFFICE OF INSPECTOR GENERAL
Annual Performance Report
Fiscal Year 2014
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about the EPA OIG.
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To find out more about the U.S. Environmental Protection Agency
Office of Inspector General and its activities, visit our website at: http://www.epa. gov/oig.
Abbreviations
CSB
U.S. Chemical Safety and Hazard Investigation Board
EPA
U.S. Environmental Protection Agency
FOIA
Freedom of Information Act
FY
Fiscal Year
OIG
Office of Inspector General
RadNet
Radiation Monitoring System
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Washington, DC 20460
(888) 546-8740
(202) 566-2599 (fax)
OIG Hotline@epa.gov
More information at www.epa.gov/oiq/hotline.html.
EPA Office of Inspector General
1200 Pennsylvania Avenue, NW (241OT)
Washington, DC 20460
(202) 566-2391
www.epa.gov/oig
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Message From the Inspector General
I am pleased to present the Annual Performance Report of the
U.S. Environmental Protection Agency (EPA) Office of
Inspector General (OIG) for fiscal year 2014. This report
summarizes OIG activity, performance, results and challenges,
and provides a financial accounting of resources for the year
compared to our annual performance targets. This report
supplements, with greater quantitative and narrative detail, the
OIG summary performance results presented in the agency's
Fiscal Year 2014 Agency Financial Report and Fiscal Year 2014
Annual Performance Report, available at
http://www.epa.gov/ocfopage.
This document details the public benefit and return on
investment provided by the OIG, both in annual increments
and over the long term. For example, during the year, the OIG
identified:
• $380 million in EPA potential savings and recoveries.
• 448 recommendations to improve agency programs, operations, public health and safety.
• 324 environmental and business actions taken for improvement of EPA operations or
reduced risks.
Additionally, OIG investigations accounted for 213 criminal, civil and administrative actions.
We rely upon our customers and stakeholders to inform us about the quality of our performance
and help us identify and reduce areas of risk. Please do not hesitate to contact me in this regard,
as one of my personal goals is to build constructive relationships that promote the economic,
efficient and effective delivery of the EPA's mission.
Inspector General
Arthur A. Elkins Jr.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Table of Contents
About the U.S. Environmental Protection Agency Office of Inspector General 1
OIG Product and Service Lines 1
OIG Strategic Plan 2
Scoreboard of Results 3
Meeting EPA Themes and Goals/Strategies 4
Performance Results and Highlights for FY 2014 8
OIG Office of Program Evaluation 8
OIG Office of Audit 12
OIG Office of Investigations 16
Work Involving U.S. Chemical Safety and Hazard Investigation Board 19
OIG-Reported Key Agency Management Challenges 20
Appendices
A OIG FY 2014 Budget and Resources Analysis Use and Allocation 21
B OIG Data Verification and Validation 22
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
About the U.S. Environmental Protection Agency
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—as well as
detects and prevents fraud, waste and abuse—to help the agency protect human health and the
environment more efficiently and cost effectively. Although we are part of the EPA, Congress
provides us with a budget line item separate from the agency's to ensure our independence.
The EPA OIG is governed by the Inspector General Act of 1978, as amended (P.L. 95-452).
The EPA OIG also serves as the Inspector General for the U.S. Chemical Safety and Hazard
Investigation Board (CSB).
OIG Product and Service Lines
OIG staff 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. OIG activities can be divided among four main categories,
with specialized product and service lines in each, through which the OIG carries out its mission.
The categories and product/service lines in fiscal year (FY) 2014 were as follows:
Program
Management and
evaluations
Audits
Investigations
public affairs
• Air
• Financial Audits
• Financial Fraud
• Legislation/Policy and
• Water
• Contracts and Assistance
• Program Integrity
Regulation Review
• Land Cleanup and
Agreements Audits
• Employee
• Audit Follow-Up
Waste Management
• Information Resources
Misconduct
• Financial/Performance
• Toxics, Chemical
Management Audits
• Laboratory Fraud
Management/Planning
Management, and
• Forensic Audits
• Computer/
• Human Capital
Pollution Prevention
• Efficiency Audits
Cyber Crimes
• Congressional/
• Special Program
• Hotline
Public Affairs
Reviews
• Office of Counsel
• Science, Research,
• Publications and
and Management
Web Management
Integrity
• Information Technology
and System Support
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Strategic Plan
The OIG developed its strategic plan for FYs 2012-2016 based upon statutory requirements for the
EPA OIG; the statutory mission of the EPA; and direct input from the OIG's stakeholders,
managers and staff. Key elements from the OIG's strategic plan follow.
Vision
Be the best in public service and oversight for a better environment 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.
o
Contribute to
improved human health,
safety, and the
environment
Contribute to
improved EPA and CSB
business practices and
accountability
Goals
bl
Be responsible
stewards of taxpayer
dollars
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
1 Influence actions that
improve operational
efficiency and
accountability, and achieve
monetary savings
1 Improve operational integrity
and reduce risk of loss by
detecting and preventing
fraud, waste, abuse, or
breach of security
1 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, and 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
2
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Scoreboard of Results
Scoreboard of OIG FY 2014 Performance Results
Compared to FY 2014 Annual Performance Goal Targets
Our work is designed to help the EPA reduce risk, improve practices and program operations, and
save taxpayer dollars so that the agency can better protect the environment. The information below
shows the taxpayers' return on investment for the work performed by the EPA OIG during
FY 2014. All results reported in FY 2014, from current and prior years' work, are based on the
annual performance goals and plans established through implementation of the Government
Performance and Results Act.
In FY 2014, the OIG exceeded its performance targets in all four of the established goals. In terms
of monetary return on investment as a percentage of our budget, we reported $380 million in
savings, a $7.35 return on investment for every $1 spent.
Annual Performance Goal 1:
Environmental and business actions taken or realized by the EPA (based on OIG recommendations)
Target: 248
Reported: 324
(131% of goal)
Supporting measures
306 Environmental and management actions implemented or improvements made
17 Critical congressional and public concerns addressed
1 Legislative or regulatory change made
Annual Performance Goal 2:
OIG environmental and business recommendations, awareness briefing or testimony (for agency action)
Target: 687
Reported: 944
(137% of goal)
Supporting measures
766 Environmental and management recommendations or referrals for action
57 Environmental and management certifications, verifications and validations
31 Environmental and management risks and vulnerabilities identified
90 External awareness briefings, training or testimony given
Annual Performance Goal 3:
Monetary return on investment - potential monetary return on investment as percentage (125%) of budget
Target: 125% return
Reported: $380.0
(734% return)
Supporting measures (dollars in millions)
$54.51 Questioned costs
$321.7 Recommended efficiencies, costs saved
$3.8 Fines, penalties, settlements and restitutions
Annual Performance Goal 4:
Criminal, civil and administrative actions reducing risk or loss/operational integrity
Target: 125
Reported: 213
(170% of goal)
Supporting measures
19 Criminal convictions
50 Indictments, information and complaints
3 Civil actions
76 Administrative actions (other than debarments or suspensions)
54 Suspension of debarment actions
11 Allegations disproved
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Meeting EPA Themes and Goals/Strategies
FY 2014 OIG-lssued Reports Addressing
EPA Themes and Cross-Agency Goals/Strategies
When conducting our audit and evaluation work during FY 2014, we initially took into account the
EPA's seven themes set by EPA Administrator Gina McCarthy for meeting the challenges ahead,
so that we could better assist the EPA to carry out its mission of protecting human health and the
environment. During the fiscal year, the EPA adopted its FYs 2014-2018 Strategic Plan that
includes five strategic goals and four cross-agency strategies, and we started measuring our results
based on those goals/strategies.
The first table below shows how our audit and evaluation reports aligned with each of the agency's
themes; the second table shows how reports aligned with the agency's new goals/strategies. Some
reports addressed more than one theme or goal/strategy.
OIG-lssued Reports — Linkage to EPA Themes
OIG Report
Report No.
Making a Visible
Difference in
Communities
Across the
Country
Addressing
Climate Change
and Improving
Air Quality
Taking
Action on Toxics
and Chemical
Activity
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
Environmental Benefits Being
Considered in Award of Great Lakes
Grants
14-P-0004
X
EPA Does Not Adequately Follow
National Security Information
Classification Standards
14-P-0017
X
The State of Colorado Did Not Fully
Assure That Funds Intended to Treat
Mining Wastes and Remove
Contaminants from Water Were
Effectively Spent
14-R-0032
X
X
X
Fiscal Year 2013 Federal Information
Security Management Act Report: Status
of EPA's Computer Security Program
14-P-0033
X
Early Warning Report: Internal Controls
and Management Actions Concerning
JohnC. Beale Pay Issues
14-P-0036
X
Early Warning Report: Internal Controls
and Management Actions Concerning
JohnC. Beale'sTravel
14-P-0037
X
Audit of EPA's Fiscal 2013 and 2012
Consolidated Financial Statements
14-1-0039
X
Dozier Technologies, Inc. Failed to
Comply With Financial and Management
Requirements of Its Support Services
Contract
14-4-0040
X
Fiscal Years 2012 and 2011 (Restated)
Financial Statements for the Pesticides
Reregistration and Expedited Processing
Fund
14-1-0041
X
Fiscal Years 2012 and 2011 (Restated)
Financial Statements for the Pesticide
Registration Fund
14-1-0042
X
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Report
Report No.
Making a Visible
Difference in
Communities
Across the
Country
Addressing
Climate Change
and Improving
Air Quality
Taking
Action on Toxics
and Chemical
Activity
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
Response to Congressional Inquiry
Regarding the EPA's Emergency Order
to the Range Resources Gas Drilling
Company
14-P-0044
X
X
X
Audit of American Recovery and
Reinvestment Act Cooperative
Agreement 2A-00E85701 Awarded to
the Greater Lansing Area Clean Cities
14-R-0088
X
X
X
Internal Controls Needed to Control
Costs of Emergency and Rapid
Response Services Contracts, as
Exemplified in Region 6
14-P-0109
X
EPA Needs to Improve Safeguards for
Personally Identifiable Information
14-P-0122
X
Complaints Regarding Debris
Management at the West, Texas,
Fertilizer Plant Explosion Have Been
Addressed
14-P-0123
X
Ineffective Oversight of Purchase Cards
Results in Inappropriate Purchases at
EPA
14-P-0128
X
EPA Did Not Conduct Thorough Biennial
User Fee Reviews
14-P-0129
X
Unless California Air Resources Board
Fully Complies With Laws and
Regulations, Emission Reductions and
Human Health Benefits Are Unknown
14-R-0130
X
X
National Association of State
Departments of Agriculture Research
Foundation Needs to Comply With
Certain Federal Requirements and EPA
Award Conditions to Ensure the Success
of Pesticide Safety Education Programs
14-P-0131
X
X
Early Warning Report: National Service
Center for Environmental Publications in
Blue Ash, Ohio, Spent $1.5 Million to
Store Excess Publications
14-P-0132
X
EPA's Information Systems and Data
Are at Risk Due to Insufficient Training of
Personnel With Significant Information
Security Responsibilities
14-P-0142
X
EPA Needs to Improve Management of
the Cross-Media Electronic Reporting
Regulation Program in Order to
Strengthen Protection of Human Health
and the Environment
14-P-0143
X
X
Improvements to EPA Policies and
Guidance Could Enhance Protection of
Human Study Subjects
14-P-0154
X
Quick Reaction Report: EPA Oversight
Needed to Ensure Beach Safety in
U.S. Virgin Islands
14-P-0155
X
X
EPA Needs to Continue to Improve
Controls for Improper Payment
Identification
14-P-0171
X
EPA Needs to Demonstrate Whether It
Has Achieved the Goals It Set Under the
National Petroleum Refinery Initiative
14-P-0184
X
EPA Needs to Clarify Its Claim of
"No Net Loss" of Wetlands
14-P-0191
X
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Report
Report No.
Making a Visible
Difference in
Communities
Across the
Country
Addressing
Climate Change
and Improving
Air Quality
Taking
Action on Toxics
and Chemical
Activity
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
Chemical Import Data May Help EPA
Identify Facilities That Need to File or
Update Risk Management Plans
14-N-0239
X
Audit of EPA Passport Controls
14-P-0243
X
EPA OIG's Compliance With EPA
Passport Guidance
14-B-0244
X
EPA Compliance With Retention
Incentive Regulations and Policies
14-P-0245
X
EPA OIG Compliance With Retention
Incentive Regulations and Policies
14-B-0246
X
EPA Employees Did Not Act
Consistently With Agency Policy in
Assisting an EPA Grantee
14-P-0247
X
Briefing Report: Review of EPA's
Process to Release Information Under
the Freedom of Information Act
14-P-0262
X
OIG-lssued Reports — Linkage to EPA Goals and Strategies
OIG Report
Climate
Change/
Air
Quality
Protecting
America's
Waters
Cleaning
Communities/
Sustainable
Development
Safe
Chemicals/
Preventing
Pollution
Enforcing
Laws/
Ensuring
Compliance
Working
Toward
Sustainable
Future
Making
Difference in
Communities
State, Tribal,
Local and
International
Partnerships
Embracing
EPA as High-
Performing
Organization
EPA Has Not Implemented Adequate
Management Procedures to Address
Potential Fraudulent Environmental Data
(14-P-0270)
X
X
X
Weak Management of a Climate Change
Services Contract Creates Risk EPA Did
Not Receive Services for Which It Paid
(14-P-0272)
X
New Jersey Department of Environmental
Protection Needs to Meet Cooperative
Agreement Objectives and Davis-Bacon
Act Requirements to Fully Achieve
Leaking Underground Storage Tank
Goals (14-R-0278)
X
X
EPA Has Made Progress in Assessing
Historical Lead Smelter Sites But Needs
to Strengthen Procedures (14-P-0302)
X
Wells Band Council Needs to Improve Its
Accounting System to Comply With
Federal Regulations (14-2-0316)
X
EPA Should Improve Oversight and
Assure the Environmental Results of
Puget Sound Cooperative Agreements
(14-P-0317)
X
X
Unliquidated Obligations Resulted in
Missed Opportunities to Improve Drinking
Water Infrastructure (14-P-0318)
X
X
No Indications of Bias Found in a Sample
of Freedom of Information Act Fee
Waiver Decisions But the EPA Could
Improve Its Process (14-P-0319)
X
Follow-Up Report: EPA Improves
Management of Its Radiation Monitoring
System (14-P-0321)
X
Impact of EPA's Conventional Reduced
Risk Pesticide Program Is Declining
(14-P-0322)
X
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Report
Climate
Change/
Air
Quality
Protecting
America's
Waters
Cleaning
Communities/
Sustainable
Development
Safe
Chemicals/
Preventing
Pollution
Enforcing
Laws/
Ensuring
Compliance
Working
Toward
Sustainable
Future
Making
Difference in
Communities
State, Tribal,
Local and
International
Partnerships
Embracing
EPA as High-
Performing
Organization
EPA Is Not Fully Aware of the Extent of
Its Use of Cloud Computing Technologies
(14-P-0323)
X
Improvements Needed in EPA Efforts to
Address Methane Emissions From
Natural Gas Distribution Pipelines
(14-P-0324)
X
EPA Met or Exceeded Most Internal
Climate Change Goals, But Data Quality
and Records Management Procedures
Need Improvement (14-P-0325)
X
X
Cloud Oversight Resulted in
Unsubstantiated and Missed
Opportunities for Savings, Unused and
Undelivered Services, and Incomplete
Policies (14-P-0332)
X
Increased Emphasis on Strategic
Sourcing Can Result in Substantial Cost
Savings for EPA (14-P-0338)
X
EPA Needs to Improve Contract
Management Assessment Program
Implementation to Mitigate Contracting
Vulnerabilities (14-P-0347)
X
Nutrient Pollution: EPA Needs to Work
With States to Develop Strategies for
Monitoring the Impact of State Activities
on the Gulf of Mexico Hypoxic Zone
(14-P-0348)
X
X
EPA Can Help Consumers Identify
Household and Other Products with
Safer Chemicals by Strengthening Its
"Design for the Environment" Program
(14-P-0349)
X
EPA's Risk Assessment Division Has Not
Fully Adhered to Its Quality Management
Plan (14-P-0350)
X
Audits on EPA Recovery Act-Funded
Diesel Emission Reduction Act
Assistance Agreements Reported
Programmatic and Management
Challenges (14-R-0355)
X
Recipient Subawards to Fellows Did Not
Comply With Federal Requirements and
EPA's Involvement in Fellow Selection
Process Creates the Appearance EPA
Could Be Circumventing the Hiring
Process (14-P-0357)
X
Quality Control Review of EPA Office of
Inspector General Reports Issued in
Fiscal Year 2013 (14-N-0358)
X
EPA's Alternative Asbestos Control
Method Experiments Lacked Effective
Oversight and Threatened Human Health
(14-P-0359)
X
X
More Action Is Needed to Protect Water
Resources From Unmonitored Hazardous
Chemicals (14-P-0363)
X
X
X
EPA Needs to Improve Its Process for
Accurately Designating Land as Clean
and Protective for Reuse (14-P-0364)
X
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Performance Results and Highlights for FY 2014
OIG Office of Program Evaluation
The OIG's Office of Program Evaluation examines root causes, effects and opportunities leading
to findings, 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.
In FY 2014, the Office of Program Evaluation completed 26 final reports, addressing a wide variety
of agency activities, including national security, water resource protection, compliance with the
Freedom of Information Act, and programs designed to ensure safer chemicals for public use. The
office also conducts follow-up evaluations of prior OIG work to review agency corrective actions,
ensuring compliance and measuring outcomes; one such follow-up is highlighted below. In the past
year, work from this office has touched the American public directly through helping to protect EPA
human study subjects and ensuring a safe beach environment in the U.S. Virgin Islands.
Key Performance Results
Reports issued: 26
Environmental and business actions taken or realized by the EPA (based on OIG
recommendations)
> 168 EPA policy, directive, practice, corrective action or process changes made or implemented
(including best practices)
> 15 critical congressional or public management concerns addressed and resolved
OIG environmental and business recommendations, awareness briefing or testimony (for agency
action)
> 100 recommendations for improvement
> 40 certifications, verifications, validations
Monetary return on investment and sustained recommendations
> $1.8 million return on investment
> 42 sustained environmental or business recommendations
Performance Highlights
EPA Has Made Progress in Assessing Historical Lead Smelter Sites But Needs to
Strengthen Procedures
> What We Found: We conducted this review to determine how the EPA has addressed the
sites in its August 2012 Lead Smelter Strategy. The strategy focuses on 464 historical lead
smelter sites across the country, also known as "Eckel sites." We also examined the actions
the EPA has taken to inform communities near Eckel sites of potential lead contamination.
We found that it took the EPA more than 12 years to complete the preliminary site
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
assessment work at the 464 Eckel sites. The EPA's ability to work on the Eckel sites was
also impacted by an existing backlog of over 2,200 potentially contaminated sites. The
overall absence of a process for the Eckel sites, as well as a lack of initial direction from
the EPA, led to the inefficient use of agency resources.
> Corrective Actions: We recommended that the EPA establish criteria to determine up
front whether to invest resources in screening efforts, improve tracking and recordkeeping
regarding decisionmaking for non-petitioned sites such as the Eckel sites, and conduct
periodic reviews to ensure that sites in the backlog have appropriate indicators of their
priority. The EPA agreed to these recommendations and provided specific corrective
actions highlighting the types of systems and mechanisms it will put into place.
> Expected Impact of Implemented Actions: The agency's corrective actions are expected
to improve its ability to address site assessments with greater efficiency, and members of
the public may decrease their exposure to contaminated sites. As a result of our inquiry,
EPA revisited one site and took soil samples to make sure there was no risk to the public.
> Link to Report: http://www.epa.gov/oi g/reports/2014/20140617-14-P-0302.pdf
Follow-Up Report: EPA Improves Management of Its Radiation Monitoring System
> What We Found: We performed this follow-up review to assess actions taken by the EPA
on recommendations in OIG Report No. 12-P-0417, Weaknesses in EPA's Management of
the Radiation Network System Demand Attention, issued April 19, 2012. The EPA's
nationwide radiation monitoring system (RadNet) is designed to measure ambient levels of
radiation in the environment. RadNet also measures large-scale atmospheric releases of
radiation due to nuclear facility and other radiological incidents or accidents, including
nuclear weapon detonations. In our 2012 report, we had recommended that the EPA
address several issues affecting RadNet operational effectiveness, including requiring
written expectations, implementing daily metrics and improving contracts.
> Corrective Actions: We found that responsible EPA offices completed corrective actions
on all seven recommendations we reviewed from the 2012 OIG report. This included
establishing and enforcing written expectations for RadNet operational readiness;
implementing metrics for RadNet operational readiness; and improving planning and
management of parts availability, monitoring of filter replacement and operators, and
monitoring of the remaining RadNet monitors.
> Expected Impact of Implemented Actions: Since the EPA OIG's April 2012 report, the
number of installed monitors in the RadNet network increased—from 124 to 132 monitors.
In addition, EPA has eight more air monitors available for installation. Further, EPA has
increased the RadNet's operational readiness. Our analysis of weekly status reports
covering a 73-week period ending with the week of February 17, 2014, showed that an
average of 92.9 percent of the air monitors were operational, up from 80 percent in
March 2011. Completing the corrective actions increased both coverage and the EPA's
ability to assess radioactive threats to the public and the environment.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140722-14-P-0321.pdf
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
EPA Has Not Implemented Adequate Management Procedures to Address Potential
Fraudulent Environmental Data
> What We Found: The EPA relies on external laboratories to provide environmental testing
data and results. Intentionally falsified or fraudulent data can impact the public's trust in
the EPA and could have serious implications for protecting human health and the
environment from hazardous or toxic substances. We found that the EPA lacks a due
diligence process for potential fraudulent environmental data. The agency has three policies
and procedures that address how to respond to instances of fraudulent data, but they are all
out of date or unimplemented. The EPA is not ensuring that fraudulent laboratory
environmental data is being communicated to appropriate program offices and data users,
reviewed, and analyzed for its impact on human health and the environment.
> Corrective Actions: We recommended that the agency: incorporate a process to respond to
instances of fraudulent data into its current policy until revised policy is issued, state the
details of a laboratory fraud due diligence process in its new policy, develop guidelines
outlining the response when fraudulent laboratory data is discovered in ongoing criminal
investigations, and provide training on laboratory fraud due diligence processes and
procedures.
> Expected Impact of Implemented Actions: The EPA's corrective actions are expected to
improve the validity of the EPA's reliance on laboratory data and help ensure that, if
flawed data is discovered, the EPA has an appropriate response to ensure that use of the
data does not negatively impact human health and the environment.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140529-14-P-027Q.pdf
Improvements Needed in EPA Efforts to Address Methane Emissions From Natural Gas
Distribution Pipelines
> What We Found: We conducted this evaluation to determine what actions the EPA has
taken to reduce methane emissions from leaking pipelines in the natural gas distribution
sector. Methane is a potent greenhouse gas with a global warming potential 25 times that of
carbon dioxide. We estimate that more than $192 million in natural gas was lost in 2011
due to such leaks, a cost that is borne by consumers. We found that the EPA has placed
little focus and attention on reducing methane emissions from pipelines in the natural gas
distribution sector. The EPA has a voluntary program to address methane leaks—Natural
Gas STAR—but its efforts through this program have resulted in limited reductions of
methane emissions from distribution pipelines. This is due largely to financial and policy
barriers, including disincentives for distribution companies to repair nonhazardous leaks.
> Corrective Actions: We recommended that the EPA: (1) work with the Pipeline and
Hazardous Materials Safety Administration to address methane leaks from a combined
environmental and safety standpoint, (2) develop a strategy to address the financial and
policy barriers that hinder reductions from the distribution sector, (3) establish performance
goals, (4) track distribution sector emissions and use that data to help determine if future
regulation would be appropriate, and (5) assess whether data from ongoing studies should
be used to update distribution sector emission factors.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
> Expected Impact of Implemented Actions: Increased actions through EPA's existing
voluntary program—Natural Gas STAR—can reduce methane emissions from distribution
pipelines. Further, enhanced tracking to assess the program's progress in reducing
emissions will help the EPA determine whether additional emission reduction strategies,
including regulation, may be needed for distribution pipelines in the future.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140725-14-P-0324.pdf
Briefing Report: Review of EPA's Process to Release Information Under the Freedom
of Information Act
> What We Found: We conducted this review to determine how the EPA offices and
regions decide what information to release under the Freedom of Information Act (FOIA).
Of the 14 offices we reviewed, all offices except one had internal FOIA procedures in
writing, but they varied in their level of detail and finality. Seven offices had procedures
that were not consistent with the EPA's current interim procedures.
> Corrective Actions: We recommended that the EPA issue the final agency FOIA
procedures by September 30, 2014. We also recommended that the EPA require that Senior
Information Officials at each region and headquarters program office certify that their local
FOIA procedures are consistent with the agency's final procedures by March 31, 2015.
> Expected Impact of Implemented Actions: EPA corrective actions are expected to
improve consistency of public access to federal government information, ensuring that
citizens requesting information through the FOIA process receive reliable and consistent
communications regardless of office or region originating the information.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140516-14-P-0262.pdf
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Office of Audit
The Office of Audit designs and implements long-term, nationwide audit plans to improve the
economy, efficiency and effectiveness of EPA programs and prevent fraud, waste and
mismanagement. The office performs financial, performance, forensic and external audits related
to (1) financial statements, (2) contracts, (3) assistance agreements, (4) program operations and
(5) enterprise systems. During FY 2014, the main themes guiding our work were financial
management; process and resource efficiency; information systems; program oversight, including
grants and contracts management; chemical safety; operational controls; and environmental results.
The Office of Audit issued 38 reports during FY 2014, of which 16 were congressionally
mandated or requested and 22 were discretionary. For FY 2014, these reports and our work from
prior years resulted in 112 environmental and business outcomes realized; 677 environmental and
business output recommendations or risks identified; and 326 sustained environmental or business
recommendations, including $322.3 million sustained questioned costs or efficiencies with an
additional $52.1 million of grants and contracts questioned. Our work included significant
testimonies and congressional briefings on such topics as the time and attendance, retention pay,
travel, overtime, personally identifiable information, and alias emails.
Reports Issued: 38
Environmental and business actions taken or realized by EPA (based on OIG recommendations)
> 58 EPA policy, directive, regulatory practice corrective action or process changes made, realized or
implemented (including best practices)
> 39 actions taken or resolved prior to report issuance
> 12 implemented recommendations previously reported as unimplemented
> 6 environmental or business operational or internal control risks, challenges or weakness reduced
or eliminated
OIG environmental and business recommendations, risk identification awareness briefing or
testimony (for agency action)
> 362 recommendations for improvement including information technology certifications
> 29 environmental or business operational or internal control risks or challenges identified
> 99 referrals for agency action
> 215 OIG-identified findings in external reports impacting EPA funding
Monetary Return on Investment and Sustained recommendations
> 326 sustained environmental or business recommendations
> $53 million questioned costs, $29.8 million sustained
> $321.4 million recommended efficiencies, $292.5 million sustained
Performance Highlights
EPA Did Not Conduct Thorough Biennial User Fee Reviews
> What We Found: The EPA Chief Financial Officer did not fully oversee the biennial
reviews of user fees for services provided or provide internal review guidance, and the
EPA's program offices were not fully aware of biennial review requirements.
Consequently, the EPA may not have recovered $17.8 million in program costs and
collected funds that could have been available to reduce the federal budget deficit.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
> Corrective Actions: We recommended that the EPA discuss biennial user fee results in the
Agency Financial Report, coordinate requests for an exception to charging fees, and
request fee exception programs to provide complete information about program fees and
costs and help determine whether fees should be assessed. The EPA began improving its
biennial review process by issuing a biennial user fee review guide, training user fee
program personnel on biennial reviews, and increasing headquarters oversight of reviews.
> Expected Impact of Implemented Actions: We identified an EPA program—the Office
of Water's National Pollutant Discharge Elimination System program—with the potential
to charge fees up to $8.9 million per year to recover its costs of providing a service.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140304-14-P-Q129.pdf
Unliquidated Obligations Resulted in Missed Opportunities to Improve Drinking Water
Infrastructure
> What We Found: The five states reviewed—California, Connecticut, Hawaii, Missouri
and New Mexico—did not maximize the use of all drinking water fund resources. State
programs reviewed were not adequately projecting the resources that would be available in
the future to enable the states to anticipate the amount of projects needed to be ready for
implementation in a given year. As a result, $231 million of grant funds remained idle,
loans were not issued, and communities were not able to implement needed drinking water
improvements.
> Corrective Actions: We recommended that the EPA require states with unused resources
for drinking water programs that exceed the Office of Water's 13-percent-cutoff goal to
project future cash flows to ensure funds are expended as efficiently as possible. We also
recommended that the EPA develop guidance for states on what projects are to be included
on the fundable lists and require regions, when reviewing capitalization grant applications,
to ensure states are complying with the guidance. The EPA agreed to take sufficient
corrective actions on most of the recommendations, but still needs to take steps to ensure
states have adopted the EPA's guidance on the definition of "ready to proceed."
> Expected Impact of Implemented Actions: When hundreds of millions of Drinking
Water State Revolving Fund dollars remain idle, states miss opportunities to improve the
health of their communities' drinking water infrastructure and the opportunity to infuse
funds into the economy and create jobs.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140716-14-P-0318.pdf
Cloud Oversight Resulted in Unsubstantiated and Missed Opportunities for Savings,
Unused and Undelivered Services, and Incomplete Policies
> What We Found: The EPA developed processes to monitor cloud vendors. However,
controls for the EPA's cloud computing initiatives are incomplete and need improvement,
including: improving related policies and procedures; providing additional training and
oversight to contracting officers; performing documented cost benefit analyses that are in
compliance with federal requirements; and implementing a strategy to perform a
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
documented analysis of all the assets in the EPA's information technology portfolio to
determine which assets should be consolidated, retired or moved to the cloud.
> Corrective Actions: We recommended that the agency undertake a number of corrective
actions to address deficiencies in the EPA's cloud computing initiatives, including:
improving related policies and procedures; providing additional training and oversight to
contracting officers; performing documented cost benefit analyses that are in compliance
with federal requirements; and implementing a strategy to perform a documented analysis
of all the assets in the EPA's IT portfolio to determine which assets should be consolidated,
retired or moved to the cloud.
> Expected Impact of Implemented Actions: The EPA paid $2.3 million for services that
were not fully rendered or did not comply with federal requirements. Also, EPA
management did not have reasonable assurance that the agency's cloud initiatives will be
effective, efficient, and in compliance with applicable laws and regulations. Improved
oversight could help the EPA achieve objectives for the millions spent for cloud services
and identify potential cost savings.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140815-14-P-0332.pdf
Early Warning Report: National Service Center for Environmental Publications in
Blue Ash, Ohio, Spent $1.5 Million to Store Excess Publications
> What We Found: The agency was storing more than 6 years' worth of publications at its
National Service Center for Environmental Publications warehouse in Blue Ash, Ohio.
As of December 6, 2013, the warehouse had an inventory of 18,406,848 publications but
averaged only 2,949,643 publications shipped on a yearly basis. Consequently, the EPA
was tying up funds by storing and caring for excess stock at an annual cost of up to
$1.2 million. Additional costs included warehouse activities and other direct costs, plus up
to $359,000 in leasing costs.
> Corrective Actions: The agency should evaluate its publication-storage requirements to
determine appropriate adjustments based on average shipments to customers, as well as
appropriate adjustments based on providing shipments in a timely manner, to ensure
effective storage utilization.
> Expected Impact of Implemented Actions: The EPA could put over $1.5 million to better
use by reducing its inventory of excess publications at the Blue Ash warehouse. Following
EPA OIG visits to the warehouse and several follow-up discussions with staff, the EPA
reported that it recycled almost 2 million items, consisting of more than 140 tons of
material, between June and October 2013. This generated additional savings of $359,000 in
annual leasing costs.
> Link to Report: http://www.epa.gov/oi g/reports/2014/20140311-14-P-0132.pdf
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
New Jersey Department of Environmental Protection Needs to Meet Cooperative
Agreement Objectives and Davis-Bacon Act Requirements to Fully Achieve
Leaking Underground Storage Tank Goals
> What We Found: We questioned $571,626 of potentially unallowable costs due to
incorrectly calculated and applied indirect cost rates and failure to determine
reasonableness of costs for two sub-grants as required by conditions of the award. The OIG
also identified an unresolved issue pertaining to potentially unallowable costs of $118,324
drawn under a prior EPA award. The costs, recorded as a refundable advance, represent
funds received as of year-end but not yet earned.
> Corrective Actions: We recommended that the EPA require New Jersey to recalculate its
indirect cost rates to be consistent with Code of Federal Regulations and establish controls
to ensure that its financial management and procurement systems comply with federal
requirements and conditions of the award. Further, we recommended that certain special
conditions be included for all active and future EPA awards until New Jersey meets all
applicable federal financial and procurement requirements.
> Expected Impact of Implemented Actions: The EPA disallowed and recovered $689,950
pertaining to the financial management and procurement issues and the prior grant.
> Link to Report: http://www.epa.gov/oig/reports/2014/20140310-14-P-Q131.pdf
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG Office of Investigations
The OIG's Office of Investigations primarily employs criminal investigators, as well as computer
specialists and other staff, to conduct investigations. The majority of investigative work is reactive
in nature. The OIG 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.
Performance Results
Investigations opened and closed
> 100 investigations closed
> 108 investigations opened
> 275 hotline complaints received
Criminal, Civil and administrative actions reducing risks or loss/operational integrity
> $3.8 million in fines, settlements, restitutions
> 19 criminal convictions
> 3 civil actions
> 50 indictments/information/complaints
> 76 administrative actions (other than debarments and suspensions)
Performance Highlights
Man Gets 14 Years in Prison for Part in New Jersey Kickback Scheme
On March 3, 2014, Gordon D. McDonald, of Berlin, New Jersey, was sentenced in the U.S.
District Court of New Jersey to 14 years in prison, followed by 1 year of supervised release, for his
involvement in a kickback and bid rigging scheme related to two Superfund sites. In addition,
McDonald was ordered to pay a $50,000 fine. The amount of restitution is pending.
On September 30, 2013, following a 2-week trial, a jury found McDonald—a project manager with
Sevenson Environmental Services Inc.—guilty of engaging in bid rigging, kickback and fraud
conspiracies with three subcontractors at two New Jersey Superfund sites—Federal Creosote in
Manville and Diamond Alkali in Newark. He also was convicted of engaging in an international
money laundering scheme, major fraud against the United States, accepting illegal kickbacks,
committing two tax violations and obstruction of justice.
The various conspiracies took place from about December 2000 to April 2007. As part of the
conspiracies, McDonald and co-conspirators accepted kickbacks from subcontractors in exchange
for the award of subcontracts for the two sites. McDonald provided co-conspirators with bid prices
of their competitors, which allowed them to submit higher prices and still be awarded the
subcontracts. In exchange for his assistance, McDonald was paid more than $1.5 million in
kickback payments. McDonald also accepted kickbacks in exchange for the award of subcontracts
at the Federal Creosote site where he conspired to rig bids and allocate subcontracts at inflated
prices for supplies and services.
In a related matter, another person involved in the case was given additional jail time. On October 16,
2013, James E. Haas Jr., a former representative of a New Jersey subcontractor, was sentenced to
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
6 months in prison to be followed by 24 months of supervised release. He also was ordered to pay his
outstanding restitution of $48,732. Haas already had served 33 months in jail following a
February 2010 sentencing, and was given the additional prison time due to parole violations.
To date, nine individuals and three companies have been convicted or pleaded guilty in the
ongoing investigation related to the two Superfund sites, and more than $6 million in criminal
fines and restitution have been imposed. The clean-up for the two sites was partly funded by the
EPA. Under an interagency agreement between the EPA and the U.S. Army Corps of Engineers,
prime contractors oversaw the removal, treatment and disposal of contaminated soil, as well as
other operations, at the sites.
This case is being conducted with the Internal Revenue Service Criminal Investigation Division.
Nigerian Man Admits Role in Computer Hacking Scheme
On June 10, 2014, Abiodun Adejohn of Nigeria pleaded guilty before the U.S. District of Court of
New Jersey to one count of conspiracy to commit wire fraud related to a computer hacking scheme.
Using "phishing" computer intrusion attacks directed to more than 7,500 federal employees,
Adejohn and others compromised the EPA and nine other U.S. government agency email systems,
resulting in the theft of employees' user names and Webmail access credentials. "Hacked" employee
credentials and email accounts were subsequently used by Adejohn and others to create customer
accounts with General Services Administration vendors and make or attempt to make fraudulent
purchases totaling over $1 million using fraudulently obtained credit card information. The total
value of losses and/or theft attempts in the on-going investigation is currently estimated at or about
$2 million. Adejohn admitted his role in the scheme and already entered into a plea agreement to
provide restitution in the amount of $937,000. Sentencing is to follow.
This case is being conducted with the Federal Bureau of Investigation and the OIGs of the General
Services Administration, Department of Commerce, Department of the Interior and Department of
Defense.
Jail Term Given for Fraud at Montana Reservation
Hunter Burns an official at the Rocky Boy Indian Reservation was sentenced on July 10, 2014, to
2 months in prison followed by 4 years of home detention for his role in a conspiracy to give
kickbacks in exchange for federally funded contracts. Burns and Hunter Burns Construction were
also ordered to pay $125,000 in fines and sentenced to 42 months' probation. On April 28, 2014,
Burns' former partner, James Howard Eastlick Jr., pleaded guilty to bribery of an official of an
Indian Tribal Government Receiving Government Funding. Several others from on and off the
reservation have pleaded guilty to, been convicted of or are facing charges alleging fraud, bribery,
embezzlement and corruption.
This case is being conducted by the Montana Guardian Task Force, which is made up of the
Federal Bureau of Investigation; the Internal Revenue Service; and the OIGs of the Department of
the Interior, Department of Health and Human Services, Department of Agriculture, and EPA.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
New York Laboratory Fined $150,000 for Mailing False Results
Upstate Laboratories Inc. of East Syracuse, New York, was fined $150,000 for falsifying more
than 3,300 laboratory results from 2008 through 2010. After pleading guilty, Upstate Laboratories
was sentenced on January 8, 2014, in the U.S. District Court for the Northern District of New
York, for committing mail fraud related to the falsification of laboratory results from 2008 through
2010. In addition to the $150,000 fine, the lab was placed on 5 years' probation. Although Upstate
Laboratories has gone out of business, the court ordered it to prepare an environmental compliance
plan and permit government inspections, should it ever resume business operations.
Upstate Laboratories performed chemical analysis of water and soil samples supplied by public
and private clients. Certain analyses were required to be performed within specified timeframes
("holding times") after the samples were obtained due to the potential for chemical degradation.
Upstate Laboratories further promised to use required procedures to ensure that the samples did
not degrade. However, from 2008 through 2010, Upstate Laboratories engaged in the routine
"backdating" of sample results where employees changed the dates when the samples were
analyzed to make it appear that analysis had occurred within the required time periods when in fact
they had not. Upstate Laboratories thereafter prepared false and fraudulent analysis reports
representing that the samples were properly analyzed within required time frames and that the
results were valid when they were not.
This case was conducted jointly with the EPA Criminal Investigation Division.
Alaska Tribal Official and Brother Get Jail Terms for Theft
Lori Ann Clum, of Anchorage, Alaska, was sentenced to 18 months in jail, to be followed by
3 years of probation, after pleading guilty to theft from a tribal organization. She also was ordered
to pay $150,000 in restitution. Further, Clum's brother, James Kramer, was sentenced to 8 months
in prison, followed by 1 year of probation, and was ordered to pay a $2,000 fine.
On January 6, 2014, Clum was sentenced in the U.S. District Court of Alaska for theft from the
Native Village of Tatitlek. In April 2008, Clum was voted out of office as the President of the
village but refused to acknowledge the election. She continued to maintain control over the village
bank accounts until April 2009. During this time, she paid herself duplicate paychecks, took
significant cash withdrawals, and wrote checks to herself totaling more than $200,000. This
amount included a $20,000 cash withdrawal that she gave to her brother, James Kramer, which he
used for personal expenses. Kramer pleaded guilty on January 17, 2014, to failure to file an income
tax return.
The Native Village of Tatitlek receives the majority of its funding from federal sources, including
the EPA.
This case was conducted jointly with the FBI and Internal Revenue Service Criminal Investigation
Division.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Work Involving U.S. Chemical Safety and Hazard
CSB was created by the Clean Air Act Amendments of 1990.
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 CSB. Details on our work involving CSB are at
http ://www. csb. gov/inspector-general/.
Performance Highlights
U.S. Chemical Safety and Hazard Investigation Board Did Not Comply With the
Do Not Pay Requirements for Improper Payments
> What We Found: CSB was not compliant with the Improper Payments Elimination and
Recovery Improvement Act of 2012 Section 5(a)(1) reporting requirement to review
prepayment and pre-award procedures and ensure that a thorough review of available
databases occurs to prevent improper payments before the release of any federal funds.
Specifically, CSB does not use the Do Not Pay portal and does not have any provisions for
testing its payroll and benefits prepayments. In response to our draft report, CSB informed
us it has established access to the Do Not Pay portal. CSB was compliant with the
remaining reporting requirements.
> Corrective Actions: We recommended that the CSB establish access to the Do Not Pay
portal and use that portal, and ensure CSB's payroll benefits go through the portal to
comply with the 2012 act. We also recommended that CSB track and document reviews of
improper payments to help prevent or eliminate future improper payments, and document
its analysis of the Bureau of the Fiscal Service's reports on its testing and ensure increased
testing is implemented to reduce the risk that some improper payments go undetected.
> Potential Impact of Implemented Actions: CSB receives and reviews the Bureau of the
Fiscal Service's limited testing of improper payments but does not track actual improper
payments or document its review of the Bureau of the Fiscal Service's testing.
> Public Access: http://www.epa.gov/oig/reports/2014/20140410-14-P-Q172.pdf
Investigation Board
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
OIG-Reported Key Agency Management Challenges
The Reports Consolidation Act of 2000 requires the OIG to report on the agency's most serious
management and performance challenges, known as the key management challenges. Management
challenges represent vulnerabilities in program operations and their susceptibility to fraud, waste,
abuse or mismanagement. For FY 2014, the OIG identified six challenges. The table below
includes issues the OIG identified as key management challenges facing the EPA, the years in
which the OIG identified the challenge, and the relationship of the challenge to the agency's goals
in its FYs 2011-2015 strategic plan (found at http://epa.gov/planandbudget/strategicplan.htmn.
OIG-identified key management challenges for the EPA
FY
2012
FY
2013
FY
2014
EPA
strategic
goal
Oversight of Delegations to States: 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.
•
•
•
Cross-
Goal
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 overtime, and all sources of contamination may not be removed.
•
•
•
Goal 3
Enhancing Information Technology Security to Combat Cyber Threats
(formerly Limited Capability to Respond to Cyber Security Attacks): The EPA
has a limited capacity to effectively respond to external network threats.
Although the agency has deployed new tools to improve its architecture, these
tools raise new security challenges. The EPA has reported that over 5,000
servers and user workstations may have been compromised from recent cyber
security attacks.
•
•
•
Cross-
Goal
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.
•
•
•
Goal 4
Goal 5
Workforce Planning / Workload Analysis: The EPA's human capital is of
concern in part due to requirements released under the President's
Management Agenda. The OIG identified significant concerns with the EPA's
management of human capital. The EPA has not developed analytical methods
or collected data needed to measure its workload and the corresponding
workforce levels necessary to carry out that workload.
•
•
Cross-
Goal
Abuse in Time and Attendance, Computer Usage, and Real Property
Management: Recent events and activities indicate a possible "culture of
complacency" among some supervisors at the EPA regarding time and
attendance controls, employee computer usage, and real property
management. As stewards of taxpayer dollars, EPA managers must emphasize
and reemphasize the importance of compliance and ethical conduct throughout
the agency and ensure it is embraced at every level.
•
Cross-
Goal
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Appendix A:
OIG FY 2014 Budget and Resources Analysis Use and Allocation
The Department of the Interior, Environment, and Related Agencies Appropriations Act, 2014,
provided the EPA OIG with an FY 2014 budget funding level of $51,788,000. The chart below
shows the OIG budget and staffing history for FY 2000-2014.
Historical budget and manpower summary
Fiscal year
Enacted budget
(after rescissions
where applicable)
On-board staff
(as of October 1)
Expenditures
(including carryover)
2000
$43,379,700
340
$39,364,100
2001
45,493,700
351
41,050,807
2002
45,886,000
354
45,238,608
2003
48,425,200
348
46,023,048
2004
50,422,800
363
52,212,862
2005
50,542,400
365
61,733,781
2006
50,241,000
350
49,583,584
2007
50,459,000
326
48,658,217
2008
52,585,000
290
52,231,690
2009
54,696,000*
304
51,182,958
2010
54,766,000*
316
51,725,199*
2011
54,586,000*
356
57,419,980*
2012
51,872,000*
331
56,548,386
2013
49,145,000**
336
54,718,979
2014
51,736,000
330
51,064,300
* Exclusive of Recovery Act funds.
** Sequestration funding level.
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EPA Office of Inspector General Annual Performance Report - Fiscal Year 2014
Appendix B:
OIG Data Verification and Validation
As required by Government Performance and Results Act, the following is a discussion of
sources, processes and controls in place to provide the basis for assurance of data quality.
Performance Database: The OIG Performance Measurement and Results System captures and
aggregates information on an array of measures in a logic-model format, linking immediate
outputs with long-term outcomes and results. OIG performance measures are designed to
demonstrate value added by promoting economy, efficiency and effectiveness; and preventing
and detecting fraud, waste and abuse as described by the Inspector General Act of 1978 (as
amended). Because intermediate and long-term results may not be realized for several years,
only verifiable results are reported in the year completed.
Data Source: Designated OIG staff enter data into the systems. Data are from OIG performance
evaluations, audits, research, court records, EPA documents, data systems and reports that track
environmental and management actions or improvements made and risks reduced or avoided.
The OIG also collects independent data from the EPA's partners and stakeholders.
Methods, Assumptions and Suitability: OIG performance results are a chain of linked events,
starting with OIG outputs leading to subsequent actions taken by the EPA or its stakeholders/
partners to improve operational efficiency and environmental program delivery, reported as
intermediate outcomes. The OIG can only control its outputs; it has no authority to implement its
recommendations that lead to environmental and management outcomes.
Quality Assurance/Quality Control Procedures: All performance data entered in the database
require at least one verifiable source assuring data accuracy and reliability. Data quality
assurance and control are performed as an extension of OIG products and services, subject to
rigorous compliance with the Government Auditing Standards of the Comptroller General of the
United States - 2011 Revision (GAO-12-331G), December 2011, and regularly reviewed by an
independent OIG quality assessment review team and external independent peers. Each EPA
OIG Assistant Inspector General certifies the completeness and accuracy of his or her respective
performance data.
Data Limitations: All OIG staff are responsible for data accuracy in their products and services.
However, human error or time lags can lead to incomplete, miscoded or missing data in the
system. Further, data supporting achievement of results often come from indirect or external
sources that have their own methods or standards for data verification/validation.
Error Estimate: The error rate for outputs is estimated at +1-2 percent, while the error rate for
outcomes is presumably greater due to the delay in results and difficulty in verifying a nexus
between our work and subsequent impacts beyond our control. Errors tend to be those of
omission.
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