Audit of Financial Statements for 

EPA’s Hazardous Waste 

Electronic Manifest System Fund 

From Inception (October 5, 2012) 

to September 30, 2014

Report No. 16-F-0251 August 1, 2016

 

U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL

Financial Management
Report Contributors: Paul Curtis

Wanda Arrington

Denise Patten

Claire McWilliams

Sabrina Jones

Abbreviations

EPA U.S. Environmental Protection Agency

FMFIA Federal Managers’ Financial Integrity Act of 1982

OIG Office of Inspector General

OMB Office of Management and Budget

Cover image: The EPA’s Concept of Operations document for the development of the 

EPA’s Hazardous Waste Electronic Manifest System, September 2013.

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 16-F-0251

August 1, 2016

Why We Did This Review

We performed this audit in 

accordance with the Hazardous 

Waste Electronic Manifest 

Establishment Act. The act requires 

the U.S. Environmental Protection 

Agency (EPA) to prepare, and the 

Office of Inspector General (OIG) to 

audit, the Hazardous Waste 

Electronic Manifest System Fund

financial statements each year. 

Our primary objectives were to 

determine whether:

 The financial statements were 

fairly stated in all material 

respects.

 The EPA’s internal controls over 

financial reporting were in place.

 EPA management complied 

with applicable laws and 

regulations.

This is one of two reports for the 

financial statements for the period 

ending September 30, 2014. The 

e-manifest system is being designed 

to create a means to track off-site 

shipments of hazardous waste from 

a generator’s site to the site of the

receipt, and disposition of the 

hazardous waste.

This report addresses the 

following EPA goal or 

cross-agency strategy:

 Embracing EPA as a highperforming organization.

Send all inquiries to our public

affairs office at (202) 566-2391 or

visit www.epa.gov/oig.

Listing of OIG reports.

 

Audit of Financial Statements for EPA’s Hazardous 

Waste Electronic Manifest System Fund From Inception 

(October 5, 2012) to September 30, 2014

 Financial Statements Receive an Unmodified Opinion

We rendered an unmodified opinion on the 

EPA’s Hazardous Waste Electronic Manifest System 

Fund financial statements covering the period from

the fund’s inception on October 5, 2012, to 

September 30, 2014, meaning that the statements

were fairly presented and free of material 

misstatement.

We did not note any matters that we consider to be material weaknesses or 

significant deficiencies in the fund. 

We identified no significant matters involving compliance with laws and 

regulations that came to our attention during the course of the audit. 

There are no recommendations in this report and the agency had no 

comments.

U.S. Environmental Protection Agency

Office of Inspector General

At a Glance

We found the fund’s 

financial statements 

to be fairly presented 

and free of material 

misstatement.
August 1, 2016

MEMORANDUM

SUBJECT: Audit of Financial Statements for EPA’s Hazardous Waste Electronic Manifest 

System Fund From Inception (October 5, 2012) to September 30, 2014 

Report No. 16-F-0251 

FROM: Paul C. Curtis, Director 

Financial Statement Audits 

TO: David Bloom, Deputy Chief Financial Officer 

Mathy Stanislaus, Assistant Administrator 

Office of Land and Emergency Management 

This is our report on the subject audit conducted by the Office of Inspector General (OIG) of the 

U.S. Environmental Protection Agency (EPA). The project number for this audit was OA-FY15-0174. 

This report contains the OIG’s findings. This report represents the opinion of the OIG and does not 

necessarily represent the final EPA position. 

Because this report contains no recommendations, you are not required to respond to this report. 

However, if you submit a response, it will be posted on the OIG’s public website, along with our 

memorandum commenting on your response. Your response should be provided as an Adobe PDF file 

that complies with the accessibility requirements of Section 508 of the Rehabilitation Act of 1973, as 

amended. The final response should not contain data that you do not want to be released to the public; 

if your response contains such data, you should identify the data for redaction or removal along with 

corresponding justification. 

This report will be available at www.epa.gov/oig. 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C. 20460

OFFICE OF

INSPECTOR GENERAL
Audit of Financial Statements for EPA’s 16-F-0251

Hazardous Waste Electronic Manifest System Fund

From Inception (October 5, 2012) to September 30, 2014

Table of Contents

Inspector General’s Report on EPA’s Hazardous Waste Electronic 

Manifest System Fund Financial Statements From Inception 

(October 5, 2012) to September 30, 2014

Report on the Financial Statements ............................................................................ 1

Management’s Discussion and Analysis...................................................................... 2

Evaluation of Internal Controls .................................................................................... 3

Tests of Compliance With Laws and Regulations........................................................ 4

Prior Audit Coverage................................................................................................... 5

Agency Comments...................................................................................................... 5

Appendices

A From Inception (October 5, 2012) to September 30, 2014

Hazardous Waste Electronic Manifest System Fund 

Financial Statements

B Distribution
16-F-0251 1

Inspector General’s Report on EPA’s Hazardous Waste 

Electronic Manifest System Fund Financial Statements

From Inception (October 5, 2012) to September 30, 2014

The Administrator

U.S. Environmental Protection Agency

Report on the Financial Statements

We have audited the accompanying financial statements of the 

U.S. Environmental Protection Agency’s (EPA’s) Hazardous Waste Electronic 

Manifest System Fund (known as the e-Manifest fund), which comprise the

balance sheet, as of September 30, 2014, and the related statements of net cost 

and changes in net position; the statement of budgetary resources for the period 

from inception (October 5, 2012) to September 30, 2014; and the related notes to 

the financial statements.

Management’s Responsibilities for the Financial Statements

Management is responsible for the preparation and fair presentation of these 

financial statements in accordance with accounting principles generally accepted 

in the United States of America; this includes the design, implementation and 

maintenance of internal controls relevant to the preparation and fair presentation 

of financial statements that are free from material misstatement, whether due to 

fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based 

upon our audit. We conducted our audit in accordance with generally accepted 

government auditing standards; the standards applicable to financial statements 

contained in Government Auditing Standards, issued by the Comptroller General 

of the United States; and Office of Management and Budget (OMB) Bulletin 

14-02, Audit Requirements for Federal Financial Statements. These standards 

require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free of material misstatements.

An audit involves performing procedures to obtain audit evidence about the 

amounts and disclosures in the financial statements. The procedures selected 

depend on the auditor’s judgment, including the assessment of the risks of 

material misstatement of the financial statements, whether due to fraud or error. In 

making those risk assessments, the audit considers internal control relevant to the 

entity’s preparation and fair presentation of the financial statements in order to 

design audit procedures that are appropriate in the circumstances. An audit also 
16-F-0251 2

includes evaluating the appropriateness of accounting policies used and the 

reasonableness of significant accounting estimates made by management, as well 

as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate 

to provide a basis for our audit opinion.

Opinion

In our opinion, the Hazardous Waste Electronic Manifest System Fund financial 

statements, including the accompanying notes, present fairly, in all material 

respects, the assets, liabilities, net position, net cost, changes in net position, and 

budgetary resources of the EPA as of September 30, 2014, for the period from 

inception (October 5, 2012) to September 30, 2014, in conformity with 

accounting principles generally accepted in the United States of America.

Specific Audit Requirements of the Hazardous Waste Electronic 

Manifest Establishment Act

The Hazardous Waste Electronic Manifest Establishment Act requires the Office 

of Inspector General (OIG) to include an analysis of (1) the fees collected and 

disbursed, (2) the reasonableness of the fee structure in place, (3) the level of use 

of the system by users, and (4) the success to date of the system in operating on a 

self-sustaining basis and improving the efficiency of tracking waste shipments 

and transmitting waste shipment data. As the fund has not yet established a fee 

structure and started use of the system, no such analyses were performed.

Management’s Discussion and Analysis

Our audit was conducted for the purpose of forming an opinion on the financial 

statements as a whole. The Management’s Discussion and Analysis are presented 

for purposes of additional analysis and are not a required part of the basic 

financial statements. Such information is the responsibility of management. 

We obtained information from the fund’s management about its methods for 

preparing the Management’s Discussion and Analysis, and reviewed this 

information for consistency with the financial statements.

We did not identify any material inconsistencies between the information 

presented in the fund’s financial statements and the information presented in the 

Management’s Discussion and Analysis.

Our audit was not designed to express an opinion, and, accordingly, we do not 

express an opinion on the fund’s Management’s Discussion and Analysis.
16-F-0251 3

Evaluation of Internal Controls

As defined by OMB, internal control, as it relates to the financial statements, is a 

process, affected by the agency’s management and other personnel, that is 

designed to provide reasonable assurance that the following objectives are met:

 Reliability of financial reporting—Transactions are properly recorded, 

processed and summarized to permit the preparation of the financial 

statements in accordance with generally accepted accounting principles, 

and assets are safeguarded against loss from unauthorized acquisition, use 

or disposition.

 Compliance with applicable laws, regulations and governmentwide 

policies—Transactions are executed in accordance with laws governing 

the use of budget authority, governmentwide policies, laws identified by 

OMB, and other laws and regulations that could have a direct and material 

effect on the financial statements.

Opinion on Internal Controls. In planning and performing our audit, we 

considered the fund’s internal controls over financial reporting by obtaining an 

understanding of the agency’s internal controls, determining whether internal 

controls had been placed in operations, assessing control risk, and performing 

tests of controls. We did this as a basis for designing our audit procedures for the 

purpose of expressing an opinion on the financial statements and to comply with 

OMB audit guidance, not to express an opinion on internal control. Accordingly, 

we do not express an opinion on internal control over financial reporting, nor on 

management’s assertion on internal controls included in Management’s 

Discussion and Analysis. We limited our internal control testing to those controls

necessary to achieve the objectives described in OMB Bulletin No. 14-02, 

Audit Requirements for Federal Financial Statements. We did not test all internal 

controls relevant to operating objectives as broadly defined by the Federal 

Managers’ Financial Integrity Act of 1982 (FMFIA), such as those controls 

relevant to ensuring efficient operations.

Material Weakness and Significant Deficiencies. Our consideration of the 

internal controls over financial reporting would not necessarily disclose all 

matters in the internal control over financial reporting that might be significant 

deficiencies. Under standards issued by the American Institute of Certified Public 

Accountants, a significant deficiency is a deficiency, or combination of 

deficiencies, that is less severe than a material weakness, yet important enough to 

merit attention by those charged with governance. A material weakness is a 

deficiency, or combination of deficiencies, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will 

not be prevented, or detected and corrected in a timely manner. Because of 

inherent limitations in internal controls, misstatements, losses or noncompliance 
16-F-0251 4

may nevertheless occur and not be detected. We did not note any matters that we 

consider to be material weaknesses or significant deficiencies in the fund. 

Comparison of EPA’s FMFIA Report With Our Evaluation of Internal 

Controls

OMB Bulletin No. 14-02, Audit Requirements for Federal Financial Statements, 

requires the OIG to compare material weaknesses disclosed during the audit with 

those material weaknesses reported in the agency’s FMFIA report that relate to 

the financial statements, and identify material weaknesses disclosed by the audit 

that were not reported in the agency’s FMFIA report. For financial statement 

audit and financial reporting purposes, OMB defines material weaknesses in 

internal control as a deficiency or combination of deficiencies in internal control,

such that there is a reasonable possibility that a material misstatement of the 

entity’s financial statements will not be prevented, or detected and corrected, on a 

timely basis. The agency did not report any material weaknesses impacting the 

fund as of September 30, 2014, for the period from inception (October 5, 2012) to 

September 30, 2014.

Tests of Compliance With Laws and Regulations

EPA management is responsible for complying with laws and regulations

applicable to the agency and the fund. As part of obtaining reasonable assurance

about whether the fund’s financial statements are free of material misstatement, 

we performed tests of its compliance with certain provisions of laws and 

regulations, noncompliance with which could have a direct and material effect on 

the determination of financial statement amounts, and certain other laws and 

regulations specified in OMB Bulletin No. 14-02, Audit Requirements for Federal 

Financial Statements. The OMB guidance requires that we evaluate compliance 

with federal financial management system requirements, including the 

requirements referred to in the Federal Financial Management Improvement Act 

of 1996. We limited our tests of compliance to these provisions and did not test 

compliance with all laws and regulations applicable to the EPA’s Hazardous 

Waste Electronic Manifest System Fund.

Opinion on Compliance With Laws and Regulations

Providing an opinion on compliance with certain provisions of laws and 

regulations was not an objective of our audit and, accordingly, we do not express 

such an opinion.

We identified no significant matters involving compliance with laws and 

regulations that came to our attention during the course of the audit. We will not 

issue a separate management letter.
16-F-0251 5 

Prior Audit Coverage 

This is the first time the fund has been audited; therefore, there is no prior audit 

coverage. 

Agency Comments 

There are no recommendations in this report and the agency had no comments. 

Paul C. Curtis 

Certified Public Accountant 

Director, Financial Statement Audits 

Office of Inspector General 

U.S. Environmental Protection Agency 

July 22, 2016 
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251

Appendix A

From Inception (October 5, 2012) to 

September 30, 2014

Hazardous Waste Electronic Manifest System Fund

Financial Statements

Produced by the U.S. Environmental Protection Agency

Office of the Chief Financial Officer

Office of the Controller
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251

Table of Contents

Management’s Discussion and Analysis 1

Principal Financial Statements 4
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251

Management’s Discussion and Analysis
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251 1

The Hazardous Waste Electronic Manifest System fund (e-Manifest) was established as a result 

of the Hazardous Waste Manifest Establishment Act (Public Law 112-195, October 5, 2012). 

The e-Manifest Act requires the United States Environmental Protection Agency (‘EPA’ or ‘the 

Agency’) to establish and own a hazardous waste electronic manifest program information 

technology (‘IT’) system that will enable electronic manifesting as a means to augment or 

replace the use of paper manifests for tracking hazardous waste shipments. The e-Manifest Act 

requires that the e-Manifest system:

1. Meets the needs of the user community;

2. Attracts sufficient user participation and service revenues to ensure the viability of the 

system (the e-Manifest Act authorizes EPA to collect reasonable user fees); and

3. Decreases the administrative burden on the user community.

Current EPA RCRA Manifest Program

The EPA Office of Land and Emergency Management (OLEM) provides policy, guidance and 

direction for the Agency’s emergency response and waste programs. The Office of Resource 

Conservation and Recovery (ORCR) within OLEM works to protect human health and the 

environment by ensuring responsible national management of hazardous and nonhazardous 

waste. Working with delegated state waste programs, ORCR implements the 1976 Resource 

Conservation and Recovery Act (RCRA), and ensures that the resource conservation, recovery 

and waste management goals of RCRA are met. All states with the exception of Iowa and 

Alaska have been delegated RCRA authority, meaning that states implement many if not all 

aspects of RCRA policy. The manifest program as implemented by EPA and the states ensures 

that hazardous waste shipments are consistently tracked, and that hazardous wastes in fact arrive 

at permitted waste management facilities. The manifest program is based on both RCRA and 

Department of Transportation (DOT) hazardous materials law (The Hazardous Materials 

Transportation Act (HMTA)). These laws together require uniformity in the content and use of 

the hazardous waste manifest form. 

E-Manifest System Planning Activities

Discussion of the e-Manifest system itself has taken place over many years; beginning back in 

the 1990’s when the concept of an electronic manifest system was first taking shape. Further 

activities continued over the years to envision the e-Manifest system through various stakeholder 

discussions and pilots. For more information EPA’s efforts prior to the passage of the eManifest Act in 2012, please visit http://www.epa.gov/osw/hazard/transportation/manifest/eman-pastmeetings.htm. 

In early calendar year (CY) 2013, EPA conducted various stakeholder requirements meetings to 

reengage with the user community. These requirements discussions occurred at a high level, 

with members from all areas of the user community participating in large group discussions 

comparable to public meetings. The purpose of these meetings was to build on past e-Manifest 

work to determine high level system functional requirements. Following this, a system 

alternatives analysis was conducted to look at various system implementation approaches, all 

assuming (among other things) a full electronic mobile workflow for up front data collection. 
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

2

16-F-0251

The alternatives focused on a range of differences in system customization and hosting. The 

alternatives analysis recommended that EPA leverage cloud hosting for initial system 

development and system launch, and for long term operations and maintenance (O&M), consider 

re-negotiating the cloud contract model or potentially migrate to an on premise hosting model to 

keep costs down. 

Also as a part of the planning work, a system Concept of Operations (CONOPS) was completed 

that, at a high level, outlines both what the current manifest process entails for highway and rail 

transporters as well as what the future system may look like. The CONOPS defines the areas of 

interaction the future e-Manifest system is envisioned to have with external and internal systems. 

The CONOPS document provides a process and conceptual model for how data will flow from 

stakeholder to stakeholder and through the system during the manifest workflow. 

During CY 2013 and 2014, EPA also conducted two Requests for Information (RFIs) as well as 

targeted market research with the vendor community to explore existing tools and approaches 

relevant to e-Manifest. For more information about activities conducted in CY 2013 including 

stakeholder meetings, the CONOPS, and the RFIs, please visit: 

http://www.epa.gov/osw/hazard/transportation/manifest/e-man.htm. 

After receiving an initial e-Manifest appropriation of $3.647 million in January 2014, EPA 

embarked on additional system planning work to continue to validate existing functional 

requirements as well as further define a future system technical architecture. Defining specific 

current and future manifest business processes that had not been explored in depth became 

another goal and outcome of the technical architecture work. For example, areas such as system 

Cross-Media Electronic Reporting Regulation (CROMERR) integration, paper manifest 

processing and manifest data quality assurance (QA) were analyzed as a part of this effort. 

Overall, the technical architecture work covered the following areas:

 Business processes, requirements and strategies for industry and states system integration 

and data sharing;

 Mobile strategies for the electronic manifest workflow; 

 Agency shared services integration planning (e.g. integration with EPA’s E-Enterprise 

initiative);

 Analysis of paper manifest processing operations as well as a paper processing cost 

model;

 Approaches for manifest data quality assurance;

 System performance standards and potential hosting scenarios;

 Helpdesk operations analysis including a helpdesk cost model;

 Security requirements and initial risk assessment planning; and 

 Strategies for data access and public reporting. 

As a part of this technical architecture planning work, EPA conducted targeted meetings with 

states and industry separately in order to further flush out current processes as well as 

expectations for the above areas. The meetings were more detailed than previous discussions, 

and provided critical information to inform system requirements. 
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251 3

EPA sees the technical architecture work performed over CY 2014 as a further base lining of the 

current manifest program as well as a deeper look at potential architecture approaches to the 

future e-Manifest system. 
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

4

16-F-0251

PRINCIPAL

FINANCIAL STATEMENTS
EPA’s e-Manifest Financial Statements from Inception to September 30, 2014

16-F-0251 5

Principal Financial Statements

Financial Statements

Balance Sheet 6

Statement of Net Cost 7

Statement of Changes in Net Position 8

Statement of Budgetary Resources 9

Notes to Financial Statements

Note 1. Summary of Significant Accounting Policies 10

Note 2. Fund Balance with Treasury 13

Note 3. Other Assets 13

Note 4. Other Liabilities 13

Note 5. Payroll and Benefits Payable, non-Federal 14

Note 6. Income and Expenses from Other Appropriations 14

Note 7. Reconciliation of Net Cost of Operations to Budget (formerly the 

Statement of Financing) 15
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 6

Environmental Protection Agency

e-Manifest

Balance Sheet

As of September 30, 2014 

(Dollars in Thousands)

The accompanying footnotes are an integral part of these financial statements

ASSETS

Intragovernmental:

Fund Balance With Treasury (Note 2) $ 1,867

Other (Note 3) 1 7

Total Intragovernmental 1,884

Total Assets $ 1,884

LIABILITIES

Intragovernmental:

Accounts Payable and Accrued Liabilities $ 2

Other (Note 4) 1 1

Total Intragovernmental 1 3

Accounts Payable & Accrued Liabilities 159

Payroll & Benefits Payable (Note 5) 125

Total Liabilities 297

NET POSITION

Unexpended Appropriations 1,656

Cumulative Results of Operations (69)

Total Net Position 1,587

Total Liabilities and Net Position $ 1,884
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 7

Environmental Protection Agency

e-Manifest

Statement of Net Cost 

From Inception (October 5, 2012) to September 30, 2014

(Dollars in Thousands)

 

The accompanying footnotes are an integral part of these financial statements

COSTS

Gross Costs $ 2,116

Expenses from Other Appropriations (Note 6) 1,786

 Less:

Earned Revenue -

NET COST OF OPERATIONS $ 3,902
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 8

Environmental Protection Agency

e-Manifest

Statement of Changes in Net Position

From Inception (October 5, 2012) to September 30, 2014

(Dollars in Thousands)

The accompanying footnotes are an integral part of these financial statements

Cumulative Results of Operations:

Net Position - Inception $ -

Budgetary Financing Sources:

Appropriations Used 2,018

Income from Other Appropriations (Note 6) 1,786

Total Budgetary Financing Sources 3,804

Other Financing Sources (Non-Exchange)

Imputed Financing Sources 2 9

Total Other Financing Sources 2 9

Net Cost of Operations (3,902)

Net Change (69)

Cumulative Results of Operations $ (69)

Unexpended Appropriations:

Budgetary Financing Sources:

Appropriations Received $ 3,674

Appropriations Used (2,018)

Total Budgetary Financing Sources 1,656

Total Unexpended Appropriations 1,656

TOTAL NET POSITION $ 1,587
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 9

Environmental Protection Agency

e-Manifest

Statement of Budgetary Resources

From Inception (October 5, 2012) to September 30, 2014

(Dollars in Thousands)

The accompanying footnotes are an integral part of these financial statements

BUDGETARY RESOURCES

Appropriations (discretionary and mandatory) $ 3,674

Total Budgetary Resources 3,674

STATUS OF BUDGETARY RESOURCES

Obligations Incurred 2,661

Unobligated Balance, end of year:

Apportioned 1,013

Unapportioned -

Total Unobligated balance, end of period 1,013

Total Status of Budgetary Resources 3,674

CHANGE IN OBLIGATED BALANCE

Unpaid Obligations:

Obligations incurred, net 2,661

Outlays (gross) (1,807)

Unpaid obligations, end of year (gross) 854

Memorandum entries:

Obligated balance, start of year -

Obligated balance, end of year (net) 854

BUDGET AUTHORITY AND OUTLAYS, NET:

Budget authority, net 3,674

Agency outlays, net $ 1,807
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 10

Environmental Protection Agency

e-Manifest

Notes to Financial Statements

From Inception (October 5, 2012) to September 30, 2014

(Dollars in Thousands)

Note 1. Summary of Significant Accounting Policies

A. Reporting Entity

The U.S. Environmental Protection Agency (EPA or Agency) was created in 1970 by executive 

reorganization from various components of other Federal agencies in order to better marshal and 

coordinate Federal pollution control efforts. The Agency is generally organized around the 

media and substances it regulates -- air, water, land, hazardous waste, pesticides and toxic 

substances.

The Hazardous Waste Electronic Manifest System Fund (e-Manifest) was authorized by the 

establishment of the Hazardous Waste Electronic Manifest System Act. The act mandates that 

the Agency, within three years, establish a hazardous waste electronic manifest system that can 

be accessed by any user. The act authorized the administrator to impose on users’ fees to pay 

costs incurred in developing, operating, maintaining, and upgrading the system, including any 

costs incurred in collecting and processing data from a paper manifest submitted to the system 

after the date on which the system enters operations. For fiscal year 2014, the e-Manifest Fund 

was accounted for under Treasury symbol number 6814/164330.

In fiscal year 2013 (October 5, 2012, date of inception), after the enactment of the e-Manifest 

Act but prior to the Agency receiving appropriated funding, costs were incurred for the 

development of the e-Manifest system. These costs have been captured in the line items 

‘Expenses from Other Appropriations’ on the Statement of Net Cost, and as ‘Income from Other 

Appropriations’ on the Statement of Changes in Net Position, and total $1.786 million for fiscal 

year 2013. 

B. Basis of Presentation

These financial statements have been prepared to report the financial position and results of 

operations of the EPA for the e-Manifest Fund in accordance with the Chief Financial Officers 

Act of 1990 and the Government Management Reform Act of 1994. The reports have been 

prepared from the books and records of the EPA in accordance with Office of Management and 

Budget (OMB) Circular A-136 Financial Reporting Requirements, and the EPA's accounting 

policies which are summarized in this note. These statements are therefore different from the 

financial reports also prepared by the EPA pursuant to OMB directives that are used to monitor 

and control the EPA's use of budgetary resources. The balances in these reports have been 

updated from the EPA consolidated financial statements to reflect the use of FY 2014 cost 
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 11

factors for calculating imputed costs for Federal civilian benefits programs. These updates 

impact the Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position.

C. Budgets and Budgetary Accounting

Funding of the e-Manifest Fund will be provided by fees collected from users to offset costs 

incurred by the EPA in carrying out these programs. For inception (October 5, 2012) through 

fiscal year 2014, funding for the e-Manifest fund was from appropriated funds. EPA did not 

collect fees from inception (October 5, 2012) of the fund through FY 2014.

D. Basis of Accounting

Generally Accepted Accounting Principles (GAAP) for Federal entities is the standard 

prescribed by the Federal Accounting Standards Advisory Board (FASAB), which issues 

standards for the federal government. The financial statements are prepared in accordance with 

GAAP for federal entities.

Transactions are recorded on an accrual accounting basis and a budgetary basis. Under the 

accrual method, revenues are recognized when earned and expenses are recognized when a 

liability is incurred, without regard to receipt or payment of cash. Budgetary accounting 

facilitates compliance with legal constraints and controls over the use of Federal funds.

E. Revenues and Other Financing Sources

For FY 2014, EPA did not collect any user fees for the e-Manifest fund, as the system is still in 

development. 

F. Funds with the Treasury

The e-Manifest Fund did not have any receipts for fiscal year 2014.

G. Investments in U. S. Government Securities

Investments in U. S. Government securities are maintained by Treasury (Bureau of Fiscal 

Services) and are reported at amortized cost net of unamortized discounts. Discounts are 

amortized over the term of the investments and reported as interest income. E-Manifest will hold 

the investments to maturity, unless needed to finance operations of the fund. No provision is 

made for unrealized gains or losses on these securities because, in the majority of cases, they are 

held to maturity. Only fees collected will be invested in U.S. Government securities, and the eManifest fund had not collected any fees as of September 30, 2014. 
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 12

H. General Property, Plant and Equipment

The e-Manifest fund complies with the provisions of SFFAS No. 6 and 10. E-manifest did not 

have any property as of September 30, 2014.

I. Liabilities

Liabilities represent the amount of monies or other resources that are more likely than not to be 

paid by the Agency as the result of an Agency transaction or event that has already occurred and 

can be reasonably estimated. However, no liability can be paid by the Agency without an 

appropriation or other collections. Liabilities for which an appropriation has not been enacted 

are classified as unfunded liabilities, and there is no certainty that the appropriations will be 

enacted. 

J. Accrued Unfunded Annual Leave

Annual, sick and other leave is expensed as taken during the fiscal year. Sick leave earned but 

not taken is not accrued as a liability. Annual leave earned but not taken as of the end of the 

fiscal year is accrued as an unfunded liability. Accrued unfunded annual leave is included in the 

Balance Sheet as a component of “Payroll and Benefits Payable.” 

K. Retirement Plan

There are two primary retirement systems for Federal employees. Employees hired prior to 

January 1, 1987, may participate in the Civil Service Retirement System (CSRS). On January 1, 

1984, the Federal Employees Retirement System (FERS) went into effect, pursuant to Public 

Law 99-335. Most employees hired after December 31, 1983, are automatically covered by 

FERS and Social Security. Employees hired prior to January 1, 1984, elected to either join FERS 

and Social Security or remain in CSRS. A primary feature of FERS is that it offers a savings 

plan to which the Agency automatically contributes one percent of pay and matches any 

employee contributions up to an additional four percent of pay. The Agency also contributes the 

employer’s matching share for Social Security.

With the issuance of SFFAS No. 5, "Accounting for Liabilities of the Federal Government," 

accounting and reporting standards were established for liabilities relating to the federal 

employee benefit programs (Retirement, Health Benefits, and Life Insurance). SFFAS No. 5 

requires that the employing agencies recognize the cost of pensions and other retirement benefits 

during their employees’ active years of service. SFFAS No. 5 requires that the Office of 

Personnel Management (OPM), as administrator of the CSRS and FERS, the Federal Employees 

Health Benefits Program, and the Federal Employees Group Life Insurance Program, provide 

federal agencies with the actuarial cost factors to compute the liability for each program.
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 13

L. Use of Estimates

The preparation of financial statements requires management to make certain estimates and 

assumptions that affect the reported amounts of assets and liabilities and the reported amounts of 

revenue and expenses during the reporting period. Actual results could differ from those 

estimates. 

Note 2. Fund Balance with Treasury

Note 3. Other Assets

Note 4. Other Liabilities

For FY 2014, the Payroll and Benefits Payable, non-Federal, are presented on a separate line of 

the Balance Sheet and in a separate footnote (see Note 5).

Entity Assets $ 1,867 Other Intragovernmental Assets

Advances to Working Capital Fund $ 17

Total $ 17

Other Intragovernmental Liabilities 

- Covered by Budgetary Resources

Employer Contributions - Payroll $ 11

Total $ 11
EPA’s FY 2014 Annual e-Manifest Financial Statements 

16-F-0251 14

Note 5. Payroll and Benefits Payable, non-Federal

Note 6. Income and Expenses from Other Appropriations

The Statement of Net Cost reports program costs that include the full costs of the program 

outputs and consist of the direct costs and all other costs that can be directly traced, assigned on a 

cause and effect basis, or reasonably allocated to program outputs.

The e-Manifest Fund was authorized in 2013 by the Hazardous Waste Electronic Manifest 

System Act. The Agency began incurring costs in FY 2013 upon the issuance of the act, but 

funding for e-Manifest specific appropriation was not received until FY 2014. The costs incurred 

prior to the appropriation have been captured in the tables below:

Covered by Budgetary Resources 

Accrued Payroll Payable to Employees $ 35

Withholdings Payable 19

Thrift Savings Plan Benefits Payable 2

Total 56

Not Covered by Budgetary Resources

Unfunded Annual Leave Liability 69

Total $ 125

Payroll Costs $ 931

Contracts 855

Total $ 1,786 

Income from Other

Appropriations

Expenses from Other 

Appropriations

Net Effect $ -

Expenses from Other Appropriations

$ 1,786

 (1,786)
EPA’s FY 2014 Annual e-Manifest Financial Statements 

15 16-F-0251

Note 7. Reconciliation of Net Cost of Operations to Budget (formerly the Statement of 

Financing)

From Inception (October 5, 2012) to September 30, 2014

(Dollars in Thousands)

RESOURCES USED TO FINANCE ACTIVITIES:

Budgetary Resources Obligated

Obligations Incurred $ 2,661

Other Resources

Imputed Financing Sources 2 9

Income from Other Appropriations 1,786

 Net Other Resources Used to Finance Activities 1,815

Total Resources Used To Finance Activities 4,476

RESOURCES USED TO FINANCE ITEMS 

NOT PART OF THE NET COST OF OPERATIONS:

Change in Budgetary Resources Obligated (643)

Total Resources Used to Finance Items Not Part of the Net Cost of Operations (643)

Total Resources Used to Finance the Net Cost of Operations $ 3,833

COMPONENTS OF THE NET COST OF OPERATIONS THAT WILL 

NOT REQUIRE OR GENERATE RESOURCES IN THE CURRENT PERIOD:

Components Requiring or Generating Resources in Future Periods:

Increase in Annual Leave Liability $ 6 9

Total Components of Net Cost of Operations that Require or

 Generate Resources in Future Periods 6 9

Total Components of Net Cost of Operations That Will Not Require or

 Generate Resources in the Current Period 6 9

Net Cost of Operations $ 3,902
16-F-0251

Appendix B

Distribution

Office of the Administrator

Chief Financial Officer

Assistant Administrator for Land and Emergency Management

General Counsel

Agency Audit Follow-Up Coordinator

Associate Administrator for Congressional and Intergovernmental Relations

Associate Administrator for Public Affairs

Controller, Office of the Controller, Office of the Chief Financial Officer

Deputy Controller, Office of the Controller, Office of the Chief Financial Officer

Director, Financial Services Division, Office of the Chief Financial Officer

Director, Accounting and Cost Analysis Division, Office of the Chief Financial Officer

Director, Washington Finance Center, Office of the Chief Financial Officer

Chief, General Ledger Analysis and Reporting Branch, Accounting and Cost Analysis Division, 

Office of the Chief Financial Officer 

Principal Deputy Assistant Administrator, Office of Land and Emergency Management

Deputy Assistant Administrator, Office of Land and Emergency Management

Director, Office of Resource Conservation and Recovery, Office of Land and 

Emergency Management

Deputy Director, Office of Resource Conservation and Recovery, Office of Land and 

Emergency Management

Associate Director, Program Implementation and Information Division, Office of 

Resource Conservation and Recovery, Office of Land and Emergency Management

Branch Chief, Permits Branch, Office of Resource Conservation and Recovery, Office of 

Land and Emergency Management

Branch Chief, Information Collection and Analysis Branch, Office of Resource Conservation 

and Recovery, Office of Land and Emergency Management

Associate Branch Chief for e-Manifest, Information Collection and Analysis Branch, Office of

Resource Conservation and Recovery, Office of Land and Emergency Management

Chair, Fee Rule Workgroup, Permits Branch, Office of Resource Conservation and Recovery, 

Office of Land and Emergency Management

Program Manager for e-Manifest, Office of Program Management, Office of Land and 

Emergency Management

Audit Follow-Up Coordinator, Office of the Chief Financial Officer

Audit Follow-Up Coordinator, Office of Land and Emergency Management