U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL

Early Warning Report: 

National Service Center for 

Environmental Publications 

in Blue Ash, Ohio, 

Spent $1.5 Million to Store 

Excess Publications 

Report No. 14-P-0132 March 11, 2014 

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about the EPA OIG. 
 

 

Report Contributors: Debra Coffel 

Teren Crawford 

Michael D. Davis 

 Kevin Haas 

Leah Nikaidoh 

Abbreviations 

EPA U.S. Environmental Protection Agency 

NSCEP National Service Center for Environmental Publications 

OIG Office of Inspector General 

Cover photo: An inside view of the EPA warehouse operated by a contractor in 

 Blue Ash, Ohio. The image shows rows of boxed publications. 

(EPA OIG photo) 

Hotline Suggestions for Audits or Evaluations 

To report fraud, waste or abuse, contact To make suggestions for audits or evaluations, 

us through one of the following methods: contact us through one of the following methods:
 

email: OIG_Hotline@epa.gov email: OIG_WEBCOMMENTS@epa.gov 

phone: 1-888-546-8740 phone: 1-202-566-2391 

fax: 1-202-566-2599 fax: 1-202-566-2599 

online: http://www.epa.gov/oig/hotline.htm online: http://www.epa.gov/oig/contact.html#Full_Info 

write:	 EPA Inspector General Hotline write: EPA Inspector General 

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Mailcode 2431T Mailcode 2410T 

Washington, DC 20460
 Washington, DC 20460 
 

 

 

U.S. Environmental Protection Agency 14-P-0132 

March 11, 2014 Office of Inspector General 

At a Glance 

Why We Did This Review 

The U.S. Environmental 

Protection Agency (EPA) 

leases a warehouse in Blue 

Ash, Ohio, from the General 

Services Administration. The 

warehouse is partially occupied 

by the National Service Center 

for Environmental Publications 

(NSCEP). The NSCEP 

maintains and distributes the 

EPA’s environmental 

publications in hard copy, 

CD ROM and other multimedia 

formats. Inventory ranges from 

workbooks for schools to 

technical manuals. 

We are conducting an audit to 

determine the extent to which 

the EPA’s personal property 

stored in select warehouse 

space is being used effectively, 

accounted for, and disposed of 

by the agency. As a result of 

our warehouse visits, we are 

issuing this early warning report 

on the NSCEP because our 

concerns required immediate 

attention. 

This report addresses the 

following EPA theme: 

 Embracing EPA as a high 

performing organization. 

For further information, 

contact our public affairs office 

at (202) 566-2391. 

The full report is at: 

www.epa.gov/oig/reports/2014/ 

20140311-14-P-0132.pdf 

Early Warning Report: National Service Center

for Environmental Publications in Blue Ash, Ohio, 

Spent $1.5 Million to Store Excess Publications

 What We Found 

Our initial research of operations at the NSCEP The EPA could put over 

warehouse in Blue Ash raised significant concerns $1.5 million to better use 

about the number of publications stored at the by reducing its inventory 

of excess publications at facility versus the number of publications shipped the NSCEP. from the facility each year. In particular: 

 The NSCEP filled the warehouse with a considerable amount of printed 

material. 

 The NSCEP needs to improve implementation of plans to reduce inventory. 

The agency is storing more than 6 years of publications at the warehouse. 

As of December 6, 2013, the warehouse had an inventory of 18,406,848 

publications but averaged only 2,949,643 publications shipped on a yearly basis. 

Consequently, the EPA is tying up funds by storing and caring for excess stock at 

an annual cost of up to $1.2 million. Additional costs include warehouse activities
 

and other direct costs, plus up to $359,000 in leasing costs.
 

We had observed another EPA warehouse operating as a long-term storage 

facility filled with considerable amounts of unusable furniture and other items. 

This was noted in a prior EPA Office of Inspector General (OIG) report, Early
 

Warning Report: Main EPA Headquarters Warehouse in Landover, Maryland, 

Requires Immediate EPA Attention (Report No. 13-P-0272), issued May 31, 

2013. The Landover report questioned the effectiveness of EPA oversight. 

We believe that the agency should evaluate its publication-storage requirements 

to determine appropriate adjustments based on average shipments to customers, 

as well as appropriate adjustments based on providing shipments in a timely 

manner, to ensure effective storage utilization. 

 Agency Actions Taken 

Following EPA OIG visits to the Blue Ash warehouse and several follow-up 

discussions with staff, the NSCEP reported that it recycled almost 2 million items, 

consisting of more than 140 tons of material, between June and October 2013. 
 

Craig E. Hooks, Assistant Administrator 

Office of Administration and Resources Management 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

THE INSPECTOR GENERAL 

March 11, 2014 

MEMORANDUM 

SUBJECT: Early Warning Report: National Service Center for Environmental Publications 

in Blue Ash, Ohio, Spent $1.5 Million to Store Excess Publications 

Report No. 14-P-0132 

FROM: Arthur A. Elkins Jr. 

TO: 

The U.S. Environmental Protection Agency (EPA), Office of Inspector General, is conducting an audit 

to determine the extent to which the EPA’s personal property stored in select warehouse space is being 

used effectively, accounted for, and disposed of by the agency (Project No. OA-FY13-0248). This early 

warning report provides information obtained during our review of operations at the National Service 

Center for Environmental Publications (NSCEP), located at the Blue Ash, Ohio, warehouse facility. 

While we continue our ongoing audit of select warehouse spaces, we believe the agency should 

immediately address operational issues found at the NSCEP Blue Ash warehouse facility, as discussed in 

this early warning report. 

The EPA office responsible for addressing the findings and issues in this report is the Office of 

Administration and Resources Management – Cincinnati. 

If you or your staff have any questions, please contact Richard Eyermann, acting Assistant Inspector 

General for Audit, at (202) 566-0565 or eyermann.richard@epa.gov; or Mike Davis, Director, 

Efficiency Audits, at (513) 487-2363 or davis.michaeld@epa.gov. 
U.S. EPA

Office of Inspector General

Early Warning Warning Report: Report: National National Service Service Cen

Environmental Publications in Blue Ash, Oh

Spent $1.5 Million Million to Store Excess Publicati

Publicati

Report No. 14‐P‐0132 Marc
Background

The U.S. Environmental Protection Agency (EPA) leases from the General Services Adm115,000‐square‐foot facility in Blue Ash, Ohio. The facility is divided into two separate 

spaces managed by different contractors at a lease cost of $551,795 per year.

• One contract, awarded in 2010, manages the area of the warehouse for storing exc

used by various offices in the area, such as furniture and electronics, at a cost of up 

per year.

• The second contract, awarded in 2011, manages the National Service Center for En

Publications (NSCEP) covered in this report. The NSCEP stores printed material, suc

manuals and marketing items, at a cost of up to $1.2 million per year.

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
Operatons

Summary of Results for NSC

NSCEP’s operations at the Blue Ash warehouse raisedsignificant significant concerns concerns regarding regarding the amount of publications publications

being stored at the facility versus what is shipped each year.

In particular:

• NSCEP filled the warehouse with a considerable amount of

printed material, including many years worth of agency publications.

• The NSCEP needs to improve improve implementation implement tion a of plans to reduce invento

in vento

We observed another EPA warehouse operating as a long‐term storage faci

with considerable amounts of furniture and other items. This was noted in 

Office of Inspector General (OIG) report (Report No. 13‐P‐0272, issued May 

The effectiveness of the EPA’s oversight needs to be improved.

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
Criteria

• Federal Property & Administrative Services Act of 1949 – Agencies shall:

‐ Continuously Continuously survey property property under their control control to determine determine what m

excess property;

‐ Transfer or dispose of such property as promptly as possible; and

‐ As far as practicable, make reassignments of property among activities 

agency when such property is determined to be no longer required.

• Office of Management and Budget Memo M‐12‐12 – Agencies must ma

efficient use of the government’s real estate assets.

• Office of Management and Budget Circular A‐123 – Agencies must estab

that reasonably ensure funds, property and other assets are safeguarded 

waste, loss, unauthorized use or misappropriation

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
Storing Excess Publication

• Shipped an average (last three fiscal years) of

2,949,643 publications yearly.

Th b i di t th t th NSCEP h

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 

As of December December 6, 2013, the NSCEP had more than6 years worth of publications on hand. The NSCEP had:

• An inventory of 18,406,848 publications available.

These numbers indicate that the NSCEP has an

inventory turnover rate of materials on hand thatfar exceeds the demand.
Inventory Management

The NSCEP, in our opinion:

• Has an inventory management belief that it is

better to have more than enough products on hand

than to try to manage with just the amount ofstock needed (that is, a culture of print‐store‐ship

rather than print then ship).

• Is t i y ng up f d un s in st i or ng and caring for

excess stock at a current annual contractor cost

of up to $1.2 million, and up to $359,000 for the

leased space.

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
Agency Actions Taken

After the OIG’s initial initial visit in June 2013 and discussion

discussion

potential conditions found, the NSCEP reported that it 

almost 2 million items, consisting of more than 140 to

materi l a , between June and October of 2013.

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
Conclusion

We believe believe that the agency should evaluate evaluate its public

public

storage requirements to effectively determine appro

adjustments based on average shipments provided t

customers customers, as well as based on providing providing such shipm

shipm

a timely basis to ensure effective storage utilization.A full OIG report will be issued at the completion of o

U.S. ENVIRONMENTAL PROTECTION AGENCYOFFICE OF INSPECTOR GENERAL 
 

Appendix A 

Distribution 

Office of the Administrator 

Deputy Administrator 

Assistant Administrator for Administration and Resources Management 

Agency Follow-Up Official (the CFO) 

Agency Follow-Up Coordinator 

General Counsel 

Associate Administrator for Congressional and Intergovernmental Relations 

Associate Administrator for External Affairs and Environmental Education 

Principal Deputy Assistant Administrator for Administration and Resources Management 

Director, Office of Administration, Office of Administration and Resources Management 

Director, Office of Policy and Resource Management, Office of Administration and 

Resources Management 

Director, Cincinnati Office of Administration and Resources Management 

Deputy Director, Office of Policy and Resource Management, Office of Administration and 

Resources Management 

Audit Follow-Up Coordinator, Office of Administration and Resources Management 

14-P-0132 9