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FY 2014 Financial and Program Performance Highlights

Introduction

Read Administrator Gina McCarthy's and Acting Chief Financial Officer David Bloom's messages introducing the Highlights and summarizing EPA's key FY 2014 accomplishments.


EPA’s FY 2014 Financial and Program Performance Highlights, provided through the tabs above, offers a snapshot of the Agency’s FY 2014 performance in five environmental areas, four cross agency strategies, as well as highlights of how the Agency manages its internal operations.

Measuring progress and reporting the results are essential to EPA’s public accountability and a critical component of the Agency’s planning and budgeting cycle.

EPA uses performance measures to assess progress toward the goals outlined in its FY 2014–2018 Strategic Plan to inform decision-making and communicate results to stakeholders. In its FY 2014 Annual Plan and Budget, EPA committed to 197 annual performance measures. The graph to the right depicts the number of these measures met and not met, as well as those awaiting data as of January 15, 2015. EPA discusses its results in more detail, including reasons for missing or exceeding FY 2014 targets, in its FY 2014 Annual Performance Report.

In addition to annual performance measures, the Agency tracks performance on the FY 2014–2015 Agency’s Priority Goals (APGs), a component of the Administration’s performance management framework which supports improvement in near-term outcomes related to the strategic plan. More information on the Agency’s APGs is available at performance.gov.

 Addressing Climate Change and Improving Air Quality
  • In June 2014, EPA proposed standards to address carbon pollution from existing power plants, providing up to $93 billion in climate and public health benefits by cutting carbon pollution from the power sector by 30 percent below the 2005 levels and reduce particle matter pollution, nitrogen oxides, and sulfur dioxide by more than 25 percent by 2030.
  • EPA finalized Tier 3 Motor Vehicle Emission and Fuel Standards that set new vehicle emission standards and lower allowable sulfur content of gasoline. By 2030, Tier 3 standards will prevent up to 2,400 premature deaths annually and 23,000 cases of respiratory ailments in children.
  • EPA published an Advance Notice of Proposed Rulemaking to update air toxics standards for petroleum refineries, which includes requirements for fence-line monitoring. When fully implemented, the provisions in this rule will result in a reduction of 5,600 tons per year of toxic air pollutants and 52,000 tons per year of VOCs.
  • The agency finalized its rule to reduce harmful pollution from the Navajo Generating Station, the result of a five-year efforts between the federal government and tribes, utilities, water users, and environmental groups. When fully implemented by 2030, the EPA plan will reduce nitrogen oxides emissions by about 80 percent and the visual impairment from the NGS by roughly 73 percent at 11 national parks and wilderness areas.
  • The agency is directly training 45,700 healthcare professionals in environmental asthma management as part of a 10-year national education and outreach effort.
 Protecting America's Waters
 Cleaning up Communities and Advancing Sustainable Development
 Ensuring the Safety of Chemicals and Preventing Pollution
  • The agency is updating the original list of 83 chemicals as candidates for assessment under the Toxic Substances Control Act Work Plan and completed chemical assessments for four VOCs: trichloroethylene (TCE), dichloromethane (DCM), antimony trioxide (ATO), and 1,3,4,6,7,8-Hexahydro-4,6,6,7,8,8-hexamethylcyclopenta-γ-2-benzopyran (HHCB.)
  • EPA expanded the ChemView database to include more than 8,300 chemicals, including 298 Consent Orders, 73 test rule chemicals, and an additional 1,000 New Chemical Significant New Use Rules.
  • EPA’s Design for the Environment (DfE) Program recognized 164 additional products that meet the criteria for the Safer Products Labeling Program, bringing the total number of products bearing the DfE logo to approximately 2,500 and added 49 chemicals to the Safer Chemicals Ingredients List. EPA proposed four new logo designs and is soliciting public comment to introduce a new logo in FY 2015.
 Enforcing Environmental Laws
Cross-Agency Strategies

EPA’s FY 2014-2018 Strategic Plan sets forth the following four cross-agency strategies, which set clear expectations for changing the way EPA does business in achieving its results.  Select highlights under these strategies are outlined under this tab. A full list of FY 2014 accomplishments and challenges are included in EPA’s FY 2014 Annual Performance Report.

Working Toward a Sustainable Future

  • Via the online ideation platform, GreenSpark, staff from across the Agency shared ideas on ways to conserve resources; reduce energy, water, and waste; and otherwise reduce the environmental footprint of EPA facilities, including actions to reduce their own environmental impact at work. From those ideas, winners were selected after being evaluated for cost, feasibility, and popularity. These include increasing paperless correspondence and composting.
  • EPA participated in the Green Infrastructure Collaborative, which brought external stakeholders and the federal family together to encourage and assist in the adoption of green infrastructure in communities as a means of supporting water quality, resiliency, and community development goals.  

Working to Make a Visible Difference in Communities

  • EPA improved and provided training for GeoPlatform, which provides a common platform for mapping EPA investments and activities, resulting in an increase in users of over 1,300 (a 50 percent increase in overall usage from 2013). It now hosts 48 programmatic geospatial tools, including mapping community-level grants and technical assistance projects. GeoPlatform supports rapid deployment of public map views, as well as advanced applications such as EPA’s EJSCREEN, NEPAssist, and GeoGrants.
  • EPA provided significant input to HUD’s Notice of Funding Availability for the Community Development Block Grant Disaster Recovery Funds and HUD/DOT/USDA are participating in EPA high-level strategy meetings to support implementation of Task 1.

Launching a New Era of State, Tribal, Local, and International Partnerships

Embracing EPA as a High-Performing Organization

  • In FY 2014, EPA successfully launched Skills Marketplace, GreenSpark, and SharePoint to increase employee engagement and collaboration; piloted new workplace designs in efforts to reduce our environmental footprint; applied Lean techniques to streamline our business processes; and implemented new strategic sourcing approaches to achieve efficiencies and economies in our acquisition programs.
Financial Performance

Sound Financial Management

EPA carries out its mission to protect human health and the environment with the support of strong financial management. For the 15th consecutive year, EPA’s Office of Inspector General (OIG) issued an unqualified or “clean” opinion on the Agency’s financial statements. A clean opinion means that the Agency’s numbers are reliable.

Some of EPA’s most significant financial achievements in FY 2014 include:

  • Implemented a robust set of controls, improved the quality of data, and reported to the Office of Inspector General and the public on conference spending.
  • Evaluated the Agency’s control over sensitive employee payment areas such as travel, payroll, parking and transit subsidies. 
  • Established a Natural Resource Damage Revolving Trust Fund to receive funds obtained from responsible parties for use by the EPA in addressing environmental damage and advancing assessment and restoration work as a result of the Deepwater Horizon oil spill.

EPA’s Financial Statements

The chart to the right displays assets, liabilities, net position, and net cost of operations as of September 30, 2014. EPA’s assets totaled $15.21 billion at the end of FY 2014, a 9.24 percent decrease from FY 2013. EPA’s liabilities totaled $2.19 billion at the end of FY 2014, a 7.9 percent decrease from FY 2013. The net cost of operations shows EPA’s gross cost to operate, minus exchange revenue earned from its activities.

The EPA Holds Itself Accountable

The Federal Managers' Financial Integrity Act and Office of Management and Budget Circular A-123 require agencies to report to the President and Congress on the effectiveness of internal controls over programmatic operations and financial activities, and the conformance of the Agency’s financial systems to government-wide standards.  During FY 2014, the Agency reviewed 10 key financial processes and 237 key controls and found no new material weaknesses. Subsequent to the Agency’s review, EPA’s Office of the Inspector General identified one new material weakness during the FY 2014 Financial Statement Audit related to the recording of transactions and capitalization of software costs.  Based on the results of the FY 2014 evaluation and reviews, the Administrator provided reasonable assurance on the adequacy and effectiveness of the Agency’s internal controls over programs, financial activities, and financial systems.

The Agency also responded to management challenges, which EPA's OIG identifies each year. The following are the Key Management Challenges (PDF) (17 pp, 4.4 MB) identified in FY 2014:

  1. Oversight of states authorized to accomplish environmental goals 
  2. Limited controls hampers the safe reuse of contaminated sites 
  3. Regulatory and resource limitations constrain EPA’s assessment and management of chemical risks 
  4. EPA needs to improve it workload analysis to accomplish its mission efficiently and effectively
  5. EPA needs to enhance information technology security to combat cyber threats
  6. EPA needs improved management oversight to combat fraud and abuse in time and attendance, computer usage, and real property management.





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