OIG Recovery Act Plan Overview OIG Name: US Environmental Protection Agency OIG Broad Recovery Act Goals: Contribute to the Integrity and Public Confidence in EPA's Investment of Recovery Act Funds for Environmental and Economic Benefits OIG Broad Training and Outreach Recovery Act Provide Proactive and Preventive Awareness and Assistance to Reduce Risks and Improve Accountability in Recovery Act Fund Administration Goals: Monitor the Application of the EPA Stewardship Risk Assessment Program, Identify Previous Problem Grantees, Review the Status of OIG Recovery Act Risk Assessment Process: Unimplemented Recommendations and Unliquidated Obligations. Evaluate Grantee Capacity, Contracting Procedures and Reporting Systems. OIG Staff Dedicated to Recovery Act Oversight: The OIG Plans to Have Approximately 40 Dedicated FTE OIG Recovery Act Funds: $20 Million FY 2009 through FY 2012 (Approximately $6 million planned to be used for FY 2010) Expiration Date of OIG Recovery Act Funds: FY 2012 OIG Recovery Act Funds Allocated to Contracts: Yes Purpose of Recovery Act Contracts: To Provide Expedited Staffing Services, Systems Testing and Analysis, Outreach/Prevention Training Types of Recovery Act Contracts Awarded to Interagecny Agreement with OPM for Decicated Staffing Services, Design and Publication of Outreach/Awareness and Training Material Date: Link to OIG Recovery Act Work Plan: http://www.epa.gov/oig/recovery.htm Page 1 of Overview f34b43bb-34dd-497d-928b-bf830e7dae14.xls OIG FY 2010 Recovery Act Work Plan Review Included on Expected Expected Recovery Act Funds Expected Entity Performing Prior Quarter Quarter(s) Agency Program Area Associated Type of Review Project Title Background Objective Number of Review Recovery Work Reports w/Program Area Reports Act Plan Begins Issued (Y/N) To determine if ARRA obligations, disbursements, Administrative / Audit of EPA's FY2009 EPA All $ 7,200,000,000 OIG Staff and payroll are fairly presented in EPA's financial Yes Q3 FY 09 Q1 FY 10 1 Financial Financial Statements statements. Administrative / Verification of Amounts To determine if amounts reported to OMB EPA All $ 7,200,000,000 OIG Staff Yes Q3 FY 09 Q1 FY 10 1 Financial Reported to OMB reconcile to EPA's financial system. EPA plans to use contracts to complete the Superfund remedial cleanup activities the Our objective is to determine whether EPA is Recovery Act authorized. In order to be successful Audit of EPA's ensuring that contractors have the qualifications, at achieving mission goals and objectives, EPA Assessment of Past and past performance supports their ability, to Superfund/ needs to ensure that the contractors have the Performance and carry out Recovery Act activities. We plan to Leaking necessary qualifications and personnel to EPA $ 800,000,000 Performance OIG Staff Determination of answer these questions: (1) Are contractor Yes Q3 FY 09 Q2 FY 10 1 Underground successfully complete their contracted tasks. Past Responsibility for performance evaluations completed timely? and Storage Tanks performance evaluations provide an indication on Contractors Awarded (2) Do EPA's contractor performance and the adequacy of the contractor activities on other Recovery Act Funds responsibility determination processes consider all projects. Responsibility determinations assist the available sources of information? Agency in ensuring only qualified contractor receive Recovery Act funds. The Recovery Act included specific requirements for State Revolving Fund activities. One Review of State Our objectives are:(1) What impediments exist to Drinking Water requirement instructed States to propose projects Processes to Develop having projects under contract or construction by EPA State Revolving $ 2,000,000,000 Performance OIG Staff that were ready to proceed to construction within Yes Q3 FY 09 Q1 FY 10 1 Intended Use Plans for February 17, 2010 and (2) What steps has EPA Funds 12 months. States were also to use at least 50 Recovery Act Funding taken to ensure projects meet this deadline? percent of the funds for forgiveness of principal, negative interest loans, or grants. EPA plans to use interagency agreements to obtain services from the US Army Corps of Engineers for Did the interagency agreements EPA awarded assistance with remedial activities at Superfund using Recovery Act funds identify clear lines of Clean and Drinking sites. EPA will also use interagency agreements EPA's Use of Interagency responsibility? Water State with the Indian Health Service to construct EPA $ 6,600,000,000 Performance OIG Staff Agreements for Recovery Yes Q4 FY 09 Q4 FY 10 1 Revolving Funds / drinking water, sewer, and solid waste facilities. Act Activities Were the interagency agreements EPA awarded Superfund The decision to use an interagency agreement using Recovery Act funds based on sound business needs to be based on a sound business decision, decisions? and interagency agreements need to identify clear lines of responsibility. Page 2 of Work Plan f34b43bb-34dd-497d-928b-bf830e7dae14.xls OIG FY 2010 Recovery Act Work Plan Review Included on Expected Expected Recovery Act Funds Expected Entity Performing Prior Quarter Quarter(s) Agency Program Area Associated Type of Review Project Title Background Objective Number of Review Recovery Work Reports w/Program Area Reports Act Plan Begins Issued (Y/N) The Recovery Act requires the OIG to audit and investigate concerns from three outside sources. Recovery Act Section 1514 requires the OIG to review, as appropriate, any concerns raised by the public about specific investments using stimulus funds. Section 1527 provides that the Recovery Accountability and Transparency Board may OIG Work in Response to request the OIG conduct (or refrain from Hotline Calls and Objectives of this work will be determined as the EPA All $ 7,200,000,000 Other OIG Staff conducting) an audit or investigation. (The OIG Yes Q4 FY 09 Ongoing TBD Whistleblower complaints are received. has final say on whether to complete the review.) Complaints Lastly, Section 1553 of the Recovery Act requires the OIG to investigate complaints of reprisal against employees who disclose information related to mismanagement, waste, abuse, substantial and specific endangerment of public health or safety, or a violation of law, rule, or regulation related to stimulus funds. The Recovery Act provided $4 billion for the Clean Water State Revolving Fund Program and $2 billion for the Drinking Water State Revolving Fund Program. The Act also provided specific guidelines To determine whether the recipient of Recovery Clean and Drinking for this funding, including: each State using at least Administrative / Site Review of Act funds complied with the requirements of the EPA Water State $ 6,000,000,000 OIG Staff 50 percent of the amount awarded for the Yes Q3 FY 09 Ongoing TBD Financial Grant/Loan Recipients Act, the State Revolving Fund grant/loan Revolving Funds forgiveness of principal, negative interest loans, or agreement, and Federal requirements. grants (or a combination); requiring that at least 20 percent of the funds awarded be used for green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities; and waiving State matching requirements. The Recovery Act provided $300 million to support To determine whether the recipient of Recovery Diesel Emission Administrative / Site Review of Grant Clean Diesel program activities. These funds are EPA $ 300,000,000 OIG Staff Act funds complied with the requirements of the Yes Q4 FY 09 Ongoing TBD Reduction Act Financial Recipients about 6 times the program’s annual appropriation. Act and Federal requirements. EPA will award $206 million of the funds through national competitions and $88 million to States to support clean diesel grant and loan programs. As a result of the Recovery Act, OMB issued Single Audit supplements to ensure compliance with the Administrative / Peer Review of Single To ensure that the Single Audit was adequate and EPA All $ 7,200,000,000 OIG Staff Recovery Act. For those recipients for which EPA is Yes Q2 Annually Q4 Annually TBD Financial Audits complied with OMB guidelines the cognizant or oversight agency, peer reviews may be required. Page 3 of Work Plan f34b43bb-34dd-497d-928b-bf830e7dae14.xls OIG FY 2010 Recovery Act Work Plan Review Included on Expected Expected Recovery Act Funds Expected Entity Performing Prior Quarter Quarter(s) Agency Program Area Associated Type of Review Project Title Background Objective Number of Review Recovery Work Reports w/Program Area Reports Act Plan Begins Issued (Y/N) The Recovery Act provided additional funding for five grant programs. EPA will need to ensure that the new funds have sufficient staff to manage the additional projects. Also, EPA will need to ensure that grant and contract management personnel Audit of EPA's Resource have the resources to properly manage these To determine (1) how the Agency decided the Allocation for Recovery projects. If staff are not sufficient in number or resources needed to manage Recovery Act EPA All $ 7,200,000,000 Performance OIG Staff Act Contract and No Q4 FY 09 Q2 FY 10 1 not equipped to manage the projects to which contracts and assistance agreements and (2) EPA's Assistance Agreement they are assigned, EPA will not be able to provide method for distributing those resources. Oversight effective oversight of Recovery Act Projects. This assignment included the work to obtain responses to the Recovery Accountability and Transparency Board Survey provided to Federal agencies in response to Section 1523 of the Recovery Act. EPA conducts annual competitions to award funds under the National Clean Diesel Program. The Review of EPA's Recovery Act provided $300 million to support Competition and To determine whether EPA promoted competition EPA's Clean Diesel Program activities. EPA planned Diesel Emission Selection of Recovery to the maximum extent possible and whether the EPA $ 300,000,000 Performance OIG Staff to award Recovery Act funds using a competition No Q4 FY 09 Q3 FY 10 1 Reduction Act Act, Diesel Emission competitions met the goals and requirements of conducted prior to the passage of the Act. EPA's Reduction Act (DERA) the Recovery Act. selection process will have to consider Awards programmatic as well as Recovery Act-specific requirements. The Recovery Act provided the EPA Superfund program $600 million for Remedial clean-up activities. Remedial Action Contracts (RAC) are a primary acquisition vehicle used to conduct long term clean-up and remediation support activities. Our Objectives are to: (1) Review EPA's use of A fundamental risk that exists with contracts, task project management principles and techniques in orders, and work assignments is that EPA may not Audit of EPA's Efforts to managing Recovery Act Superfund work to avoid get what it paid for, EPA may not get the desired EPA Superfund $ 600,000,000 Combination OIG Staff Prevent Cost Overruns unnecessary cost overruns and delays. No Q1 FY 10 Q3 FY 10 1 product or service, or that project delays may and Project Delays (2) Review EPA's implementation of its occur. OMB's initial guidance on implementing the Stewardship Plan for Superfund contract cost Recovery Act identified an accountability objective controls. that projects funded under the Recovery Act avoid unnecessary delays and cost overruns. Since the Recovery Act was onetime funding, additional funds may not be available to pay for cost overruns. Page 4 of Work Plan f34b43bb-34dd-497d-928b-bf830e7dae14.xls OIG FY 2010 Recovery Act Work Plan Review Included on Expected Expected Recovery Act Funds Expected Entity Performing Prior Quarter Quarter(s) Agency Program Area Associated Type of Review Project Title Background Objective Number of Review Recovery Work Reports w/Program Area Reports Act Plan Begins Issued (Y/N) Recent OIG audits have disclosed risks associated with the pre-award and monitoring of Interagency Agreements (IAs) awarded to the US Army Corps of Engineers (USACE) and risks in the oversight and accounting of project costs under the US Department of Health and Human Services' Indian Clean and Drinking We will review EPA's management of Recovery Act Audit of EPA's Oversight Health Service (IHS) IAs. Recovery Act funding of IA Water State Interagency Agreement projects and determine if EPA $ 6,600,000,000 Performance OIG Staff of Interagency projects will significantly increase project officer No Q2 FY 10 Q4 FY 10 1 Revolving Funds / they were accomplished on time, within budget, Agreements workloads and project requirements, which will Superfund and achieved intended objectives and outcomes. require diligent oversight of project activities and the recipient agency's management of projects. Without adequate or sufficient oversight, there is an increased risk of project delays, inflated project costs, cost overruns, and missed or delayed programmatic outcomes. The Recovery Act provided $6 billion and specific funding requirements for State Revolving Fund The OIG will review EPA and State oversight Review State programs. The additional Recovery Act funds and Clean and Drinking programs to determine whether the programs Administrative / Administration and requirements will pose significant challenges if EPA Water State $ 6,000,000,000 OIG Staff have the capacity to administer and monitor No Q2 FY 10 Q4 FY 10 1 Financial Oversight of Recovery States are not prepared to mange the additional Revolving Funds Recovery Act -funded projects and ensure they Act SRF Projects projects not only for Recovery Act projects, but achieve intended objectives. also for core program projects throughout the coming fiscal years. OMB has directed that ARRA-funded project Air, Water, and Evaluation of EPA's ARRA decision making needs to take into account How effective is EPA’s ARRA funding criteria in EPA $ 7,200,000,000 Performance OIG Staff No 1st 3rd 1 Solid Waste Targeting Criteria economically disadvantaged communities. The generating jobs and meeting infrastructure needs? objective for this evaluation is to determine if EPA plans to estimate emission reductions by using the Diesel Emissions Quantifier (DEQ). This web-based tool is to be used by DERA grantees and applicants to calculate preliminary emissions benefits for obtaining grant awards, and also to report final diesel emissions reductions (approximately 18 months after grants are How did EPA ensure that (1) claimed emission awarded). reductions under ARRA DERA grants are accurate and real; (2) only verified technology was used to EPA plans to rely heavily on diesel emission retrofit engines; (3) ARRA funds targeted engines Air - Diesel Evaluation of EPA's reduction technologies evaluated through its that have the most potential for lifetime emissions Emissions EPA $300,000,000 Performance OIG Staff Oversight of ARRA Diesel Environmental Technology Verification (ETV) reductions; (4) ARRA funds did not pay for No 1st 4th 1 Reduction Act Emissions Reductions program. For onroad sources, EPA lists 12 verified retrofitting engines that would have been scraped (DERA) diesel retrofit technologies and 1 verification fuel or retroffitted anyway (i.e., were funds used to formulation on its Diesel Retrofit Technology retrofit/replace engines that would have turned Verification website. For nonroad sources, EPA over on their own, or were not used often, or were (and CARB under arrangements with OTAQ) unlikely to result in significant exposure)? together have only verified 22 nonroad engine retrofit technologies. Funding for EPA’s ETV program was discontinued in FY 2007, and data demonstrating the results of nonroad diesel emission reduction projects were lacking for many of the projects. Page 5 of Work Plan f34b43bb-34dd-497d-928b-bf830e7dae14.xls OIG FY 2010 Recovery Act Work Plan Review Included on Expected Expected Recovery Act Funds Expected Entity Performing Prior Quarter Quarter(s) Agency Program Area Associated Type of Review Project Title Background Objective Number of Review Recovery Work Reports w/Program Area Reports Act Plan Begins Issued (Y/N) The Recovery Act also provided EPA's Brownfields program with $100 million in supplemental funds Adherence to to award site assessment, cleanup, or revolving Our objective is to determine EPA’s effectiveness Environmental Due loan fund grants to support the assessment and in ensuring adherence to the quality standards and EPA Brownfields $100,000,000 Performance OIG Staff Diligence Standards in cleanup of properties whose use or requirements associated with the activities No 2nd 4th 1 EPA's Brownfields ARRA redevelopment is complicated by the presence or completed under Recovery Act Brownfields site projects perceived presence of harmful contamination. It is assessments and cleanups. estimated that there are more than 450,000 Brownfields in the US. Although EPA has been collecting data on LUST cleanups for years, there are real concerns about its accuracy. EPA’s ARRA guidance imposes four completely new measures (e.g., direct/indirect site 1. Determine whether Agency internal controls assessments initiated, direct/indirect site are sufficient for verifying the accuracy and assessments completed) on state LUST programs. completeness of state-reported ARRA Since problems already exist with EPA’s LUST performance measures. Underground performance data, there is the possibility EPA's EPA $200,000 Performance OIG Staff No 1st 4th 1 Storage Tanks ARRA-related performance data will also be 2. Determine whether the Agency's oversight of inaccurate. There is also concern that EPA may be ARRA LUST funding ensures that states are unable to target stimulus funds to those LUST sites achieving the environmental and human health that pose the greatest threats to human health goals of RCRA, and economic goals of ARRA. and the environment. Since this is a stimulus- related evaluation, we also intend to determine how well the states and EPA estimate the economic impact of the ARRA funding. Review of EPA The Recovery Act also established new reporting To determine whether EPA established a process Procedures for Ensuring requirements related to the awarding and use of to perform limited data quality reviews intended EPA All $7.2 Billion Other OIG Staff Quality of Recipient funds to promote transparency, which will help to identify material omissions and/or significant No 1st 1st 1 Reporting under the drive accountability for the timely, prudent, and reporting errors, and notify the recipients of the Recovery Act effective spending of Recovery Act dollars. need to make appropriate and timely changes. To examine the implementation of EPA's guidance Review implementation The Recovery Act also established new reporting for ensuring the quality of recipient reporting of EPA Procedures for requirements related to the awarding and use of under the Recovery Act and responsible officials' EPA All $7.2 Billion Other OIG Staff Ensuring Quality of funds to promote transparency, which will help No 3rd 4th 1 compliance with prescribed guidance. Examine Recipient Reporting drive accountability for the timely, prudent, and the effectiveness of EPA's implemented guidance under the Recovery Act effective spending of Recovery Act dollars. in identifying data errors and ommissions. Page 6 of Work Plan f34b43bb-34dd-497d-928b-bf830e7dae14.xls
"Storage and Recovery Agreement"