EPA OIG Will Audit EPA’s TSCA Service Fee Fund Financial Statements
The Office of Inspector General (OIG) for the U.S. Environmental Protection Agency (EPA) announced on February 27, 2020, that it plans to begin its audit of the EPA’s Toxic Substances Control Act (TSCA) Service Fee Fund financial statements for the period from inception, June 22, 2016, to September 30, 2018. According to the Project Notification, the audit objectives are to determine whether:
- The financial statements are fairly presented in all material respects in accordance with generally accepted accounting principles;
- EPA’s internal control structure over financial reporting related to the financial statements is in place and provides reasonable assurance that:
- Financial transactions are executed in compliance with applicable laws, regulations, contracts, and grant agreements;
- Assets are safeguarded against loss from unauthorized acquisition, use, or disposition; and
- Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements;
- EPA has complied with laws and regulations that would have a direct and material effect on the financial statements; and
- The information and manner of presentation contained in the Management’s Discussion and Analysis, and any other accompanying information, are materially consistent with the information contained in the principal statements.
OIG states that the Frank R. Lautenberg Chemical Safety for the 21st Century Act requires that the annual audit of the financial statements also include:
- An analysis of the fees collected and amounts disbursed;
- The reasonableness of the fees in place as of the date of the audit to meet current and projected costs of administering the provisions of the law; and
- The number of requests for a risk evaluation made by manufacturers.
OIG notes that since fees have not been collected, however, it does not anticipate work in this area for the financial statements for the period from inception, June 22, 2016, to September 30, 2018.
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