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At a Gla

24-F-0003
October 17, 2023

Audit of the EPA's Fiscal Years 2022 and 2021 (Restated) Pesticides
Reregistration and Expedited Processing Fund Financial Statements

Why We Did This Audit

To accomplish this objective:

The Food Quality Protection Act
requires that the U.S. Environmental
Protection Agency Office of
Inspector General perform an
annual audit of the financial
statements for the Pesticides
Reregistration and Expedited
Processing Fund.

The EPA is responsible for
reassessing the safety of older
pesticide registrations against
modern health and environmental
testing standards. This process is
known as reregistration.

To expedite the reregistration
process, Congress authorized the
EPA to collect fees from pesticide
manufacturers. The EPA deposits
these fees into the Pesticides
Reregistration and Expedited
Processing Fund. Each year, the
Agency's Office of the Chief
Financial Officer prepares financial
statements that present information
about the fund and the EPA's
progress in reregistering pesticides.

To support this EPA mission-
related effort:

•	Operating efficiently and
effectively.

To address this top EPA
management challenge:

•	Managing business operations
and resources.

Address inquiries to our public
affairs office at (202) 566-2391 or
OIG.PublicAffairs@epa.gov.

The EPA Received an Unmodified Opinion for Fiscal Years 2022
and 2021 (Restated)

We rendered an unmodified opinion on the EPA's fiscal years 2022 and 2021 (restated)
Pesticides Reregistration and Expedited Processing Fund, also known as the Federal
Insecticide, Fungicide, and Rodenticide Act, or FIFRA, Fund, financial statements, meaning that
the statements were fairly presented and free of material misstatement.

We found the fund's financial statements to be fairly presented and free
of material misstatement.

Material Weakness and Significant Deficiency Noted

We noted the following material weakness: the EPA did not allocate expenses totaling
approximately $1.2 million to the FIFRA Fund that it paid to the U.S. General Services
Administration for the use of government facilities and to the U.S. Department of Homeland
Security for federal protective services.

We noted the following significant deficiency: the EPA miscalculated the restatement balances
for Software in Development for the FIFRA Fund financial statements note 15,

"Restatements," overstating the balance by $66,622.

Compliance with Applicable Laws, Regulations, Contracts,
and Grant Agreements

We did not identify any noncompliance that would result in a material misstatement to the
audited financial statements. In addition, the Agency was in compliance with the statutory
performance measures.

Recommendations and Planned Agency Corrective Actions

We recommend that the chief financial officer record an adjustment to recognize rent and
federal protective services expenses for the FY 2022 FIFRA Fund financial statements and
correct the restatement amount for the Software in Development to accurately capture the
amounts for note 15, "Restatements."

The EPA agreed with the recommendations and completed the corrective actions.

List of OIG reports.

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