1. AUDITS Process and Corrective Actions OIG RolesGAO ROLES – OIG –OIG Lead Auditor –OCFO – owner of MATS and Agency Audit Process –OEI AA – Designated OEI Action Official –OEI Audit Follow-up Coordinator –Office Director –Audit Lead Contract – GAO –- GAO lead auditor –OCFO – owner of Agency GAO audit process (all contacts to start audit go through OCFO – OEI AA – Management Lead –OEI Audit Follow-up Coordinator –Office Director –Audit Lead Contact EPA Order 2750 CHG 2, December 3, 1998 http://intranet.epa.gov/ohr/rmpolicy/ads/manuals/2750_2_t.pdf (OIG Audits Only)

2. OIG Audit/Evaluation Process Preliminary Research Notificatio n Memo Kickoff Meeting with Agency Data Gathering & Analysis Go/No-Go Decision Field Work Project Notification Memo Entrance Conference Data Gathering and Analysis Final Report Closeout and Follow-up OIG Evaluation of Response OIG Follow-up on Selected Reports Agency Response EPA Tracks Open Recommendations Reporting Discussion Draft Report Draft Report Agency Response Exit Conference Meet With Agency OIG Provides One-Page Point Paper

3. Discussion Draft Reports (Chapter Report): Used to convey project results. This is an advanced copy of the draft report and the response from Agency officials are typically informal. Agency officials are typically given 7 days to review and comment. Draft Reports (Chapter Report): Used to convey project results. The reports address complex and/or multiple issues. This report requires a formal response from the Agency and the Agency’s complete response will be added to the final report. Agency officials are given 30 days to provide response. Final Reports (Chapter Report): Used to convey project results. The reports address complex and/or multiple issues. This is the last report from the audit assignment. Agency officials are give 90 days to respond and provide corrective action plan on agreed upon recommendations. Memorandum Reports: Used to report limited information to the Agency, such as when a project is ended after preliminary research. Letter Reports: Used to submit information to someone outside the Agency, such as a member of Congress. Letter reports frequently answer specific requests. OIG Written Reports

4. Letter Reports: Used to submit information to someone outside the Agency, such as a member of Congress. Letter reports frequently answer specific requests. Agency action/response is noted in report transmittal. Early Warning Reports: Used to convey significant, time-critical issues to Agency management before completing the ongoing project and before publishing a chapter or memorandum report. Agency action/response is noted in report transmittal. Quick Reaction Reports: Also used to convey significant time-critical issues with recommendations to Agency management. These reports, however, differ from early warning reports in that they are prepared at the conclusion of the review and no further reporting is anticipated. Agency action/response is noted in report transmittal. Briefings: Used to communicate results quickly, or provide project status to the Agency. Information can also be presented through such techniques as a PowerPoint presentation, videos, and compact disks. Agency action/response is noted in report transmittal. OIG Written Reports Continued

5. Draft Report Final Report GAO Written Reports

6. Emails Draft OIG and GAO Responses Final OIG and GAO Responses Corrective Action Plan (including Corrective Actions) Certification Memos Audit Follow-up Log (unofficial log maintained by OPRO) OPRO Monthly Reports to OEI Management ASSERT files CAP SOPs – in development now OEI WRITTEN PRODUCTS

7. Corrective Action Process MILESTONEACTIONS Draft OIG Report1 - 30 days to respond 2 – response from Office Director Final OIG Report1- 120 days to respond with Corrective Action Plan (CAP) 2 – entered in MATS 3 – 180 day clock starts Management Decision= OIG accepts OEI Corrective Action = OIG “closed” 1 – 365 day clock starts 2 – OEI enters recommendations and corrective actions in MATS Completing Corrective Actions 1 – done on time, no problem – need Certification Memo 2 – changing CAs? New CAP needed 3 – will be late?, new CAP needed……. may be reported in the “OTHER OIG REPORT”: Compendium of Unimplemented Corrective Actions

8. Recommendations and Corrective Actions (and ASSERT?) OIG or GAO recommendation OEI Corrective Action ASSERT Entry???? Recommendation 1Corrective Action 1-1Assert 56709 Recommendation 2Corrective Action 2-1Assert 56710 Corrective Action 2-2Assert 56743 Corrective Action 2-3 Recommendation 3Corrective Action 3-1Assert 56744 Corrective Action 3-2Assert 56745 Recommendation 4Corrective Action 4-1Assert 56784 Assert 56789

9. The Corrective Action Response BASIC RULES SPECIFIC DATES PLEASE – MM/DD/YYYY –Not Spring 2010 –Not March 2010 –Not “ongoing” – project and program activities are ongoing; but, corrective actions are not – they are either scheduled to be completed or completed LETTER –No need to write Corrective Actions in letter, just attach Corrective Action Plan Maintain a current CAP –Management reference –Use this in the Certification Memo with status

10. ADDITIONAL DOCUMENTS OIGGAO – Annual Agency Management Challenges – Annual Audit Plan – Compendium of Un- implemented Recommendations – Monthly “audits in resolution process” reports – Annual Agency Management Challenges – High Risks and Challenges Web Site http://www.gao.gov/highrisk/agency/ epa/index.php http://www.gao.gov/highrisk/agency/ epa/index.php – GAO Open Recommendations Website http://www.gao.gov/openrecs.html http://www.gao.gov/openrecs.html – OCFO Product - GAO Weekly Management Report – Requests for updates to “Open Recommendations”

11. OTOP RESPONSIBILITIES OTOP Director –Designate contact person for overall audit coordination –Designate contact person for each audit –Respond to draft reports –Provide language for OEI AA’s response to final reports –Ensure staff implement CAP or update CAPs as needed –Develop certification memo for OIG audits OTOP Audit Liaison –Coordinate audit contacts and responses –Maintain current status of OTOP audits Audit Contact –Attend meetings with auditors –Provide requested audit materials –Provide updated status during audit to the OEI Audit Follow-up Coordinator –Provide updated status after CAP is in place for when individual corrective actions are completed OR if late, assist in making necessary changes

12. ATTACHMENT A Office of Environmental Information Corrective Action Plan Auditing Group: e.g., GAO? OIG?Audit Title: Enter the title of the audit report Audit No.: No. on the report Report Date: Date of the final report.OEI Lead and Phone: Identify the person responsible for tracking corrective actions and their status, provide the individuals phone no. OEI Lead Office: Record the recommendation number and the full text of the recommendation from the source document. Record OEI’s planned corrective actions. If there is more than one corrective action for a recommendation, add another line. Corrective actions can be number using the same numbering system as the recommendation number by appending an item no. for each corrective action. Include the ASSERT POA&M Task ID if applicable. For example if the recommendation number is “2-1,” the first corrective action would be “2- 1-1” and a second corrective action for the same recommendation would be “2-2-2.” Record the planned completion date in the following format: YYYY/MM/DD Record progress towards implementing the corrective action. This section is optional on a first-time corrective action plan. The form can be used for both the initial corrective action plan and any subsequent follow-up revisions.