EPA NEEDS TO REVISE ITS METHODS FOR CALCULATING GRANT RECIPIENTS' COSTS

PRESS RELEASE - Recovery.gov

EPA received approximately $72 billion in Recovery Act funding for programs and projects, such as cleaning up superfund sites and helping local communities with water quality and wastewater infrastructure needs. The agency's Office of Inspector General (OIG) looked at how EPA planned to calculate its Fiscal Year 2009 "grant accruals," which represent grantee costs incurred but not yet billed. The OIG noted that EPA planned to combine Recovery-related grants with traditional grants and use the same methodology to calculate the accruals for both. The OIG cautioned that this approach could distort the accrual amount, and recommended that EPA separate out the Recovery grants to obtain a more accurate accrual report.