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RCED-84-163 1 (1984-09-28)

handle is hein.gao/gaobabeug0001 and id is 1 raw text is: \AW -'' RELEASED I / ti. e t t 0 I , . .1 -. I 1 ..... BY THE' COMPTROLLER GENERAL' Report To The Chairman, Subcommittee On Oversight And Investigations Committee On Energy And Commerce House Of Representatives OF THE UNITED STATES EPA Needs To Improve Its Oversight Of Air Pollution Control Grant Expenditures Section 105 of the Clean Air Act established a financial grant program to help state and local government agencies (grantees) prevent and control air pollution. In fiscal year 1983 grantees received about $85 million from the Envi- ronmental Protection Agency (EPA) for this program. GAO found that EPA was (1) consulting with appropriate state officials to determine, among other things, whether the grant program will be compatible with the objectives of other air quality projects in the states and (2) ensuring that each grantee uses the federal funds to supplement, not supplant, nonfederal (state and local) funds. However, two of the three EPA regions GAO reviewed had not imple- mented procedures to verify whether grantees maintained their levels of effort. When funding levels are not main- tained, EPA cannot award subsequent grants to the gran- tee. GAO recommends that EPA develop and implement procedures to determine whether grantees maintain their nonfederal spending levels. GAO also found that EPA did not have effective auditing controls to ensure that grantees' fund usage and reporting complied with EPA's requirements. To address this situa- tion, GAO recommends that EPA's Inspector General reconsider the priority assigned to the section 105 program and, if appropriate, establish audit coverage sufficient to determine whether grantees' financial reports to EPA con- tain accurate and reliable information. 0 U 0i 74 11 - - 125392 GAO/RCED-84-163 SEPTEMBER 28. 1984

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