EPA has implemented a number of activities to promote the security of drinking water systems. However, strategic planning and internal controls for the water security program need to be strengthened to allow the Agency to measure the program's performance and progress in drinking water systems' preparedness, prevention, response, and recovery capabilities. EPA's strategic planning in this area is hampered by its limited authority over water security, the voluntary nature of its water security activities, and concerns related to protecting information. These impediments could be overcome by...

CCI's financial management system supports that funds drawn under the two cooperative agreements are reasonable, allocable and allowable in accordance with federal requirements and the terms and conditions for the Diesel Emissions Reduction Act. However, the system does not meet certain federal requirements under the Code of Federal Regulations in 40 CFR 30.21, as it was unable to provide timely financial information and reporting. As a result, there was limited assurance that the recipient claimed all eligible costs or the financial management system and Federal Financial Reports reflect the...

We found that the EPA complied with applicable regulations and guidance in procuring both the chemical fume hood retrofit kits and fume hood testing contracts. The EPA awarded both contracts using competition as opposed to using sole source procurement contracting methods. However, the same subcontractor, operating under the same prime contractor, is performing both the retrofitting of the chemical fume hoods and the annual testing of the hoods, which presents a potential conflict of interest. The agency already completed corrective action in response to our preliminary recommendation for...

GH's financial management system did not meet federal standards. In particular: Procurements did not meet the competition or cost and price analysis requirements of the Code of Federal Regulations in 40 CFR 30.43 and 30.45. The contract administration system did not meet the requirements of 40 CFR 30.47. Unallowable costs were not segregated and financial management data were not properly supported as required under 40 CFR 30.21 and 2 CFR Part 230. Labor charges did not comply with the requirements of 2 CFR Part 230. Cash draws did not meet immediate cash needs requirement and were not...

In general, the EPA managed the CASAC and Council in accordance with applicable statutes and regulations. These regulations allow agencies discretion in choosing federal advisory committee members and achieving balance. We reviewed 47 CASAC and Council member appointments, including all ozone panel appointments for the last two ozone standard reviews. We found that the EPA has adequate procedures for identifying potential ethics concerns, including financial conflicts of interest, independence issues and appearances of a lack of impartiality. However, the EPA can better document its decisions...

Based on our review of the WCF contract EPW08034, which ended September 2012, the EPA needs to improve its contract administration to assist in managing other similar type contracts. The EPA did not, as stated by Office of Management and Budget, Federal Acquisition Regulations and agency guidelines: Use performance standards to measure cost outcomes. Complete any of the required contractor performance evaluation reports. Maintain required contract administration documents. The EPA did not have policies in place that would require performance metrics and standards to be linked to cost outcomes...

We found that EPA regions differed in how they documented decisions and justified penalties related to FIFRA and TSCA enforcement penalty reductions. EPA regions generally did not consistently determine and document reductions in proposed penalties based on good faith of the violators, and in some regions reductions appeared automatic without adequate justification. The lack of adequate guidance for determining good faith reductions and supporting documentation for good faith reductions creates a risk that violators may not be treated equitably. In addition, EPA may be losing opportunities to...

We found no evidence that the EPA used, promoted or encouraged the use of private "non-governmental" email accounts to circumvent records management responsibilities or reprimanded, counseled or took administrative actions against personnel for using private email or alias accounts for conducting official government business. EPA senior officials said they were aware of the agency records management policies and, based only on discussions with these senior officials, the OIG found no evidence that these individuals had used private email to circumvent federal recordkeeping responsibilities....

Our review of both originally and derivatively classified documents generated by three offices found that the EPA does not sufficiently follow national security information classification standards. Of the two originally classified documents we reviewed, portions of one needed different classification levels and the other contained numerical data that was incorrectly transferred from another document. The National Homeland Security Research Center in the Office of Research and Development agreed to correct the documents. We also noted that the approved classification guide and the three...

The development of economical tools to prioritize pipe renewal based upon structural condition and remaining asset life is essential to effectively manage water infrastructure assets for both large and small diameter pipes. One tool that may facilitate asset management is a condition curve. A condition curve is a graphical representation of the condition of a pipeline versus time. This report provides a review of the state-of-the-technology for structural/physical condition curves for water mains. Various models are summarized such as break frequency curves, deterioration/decay/survival...