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 <title>Environmental Protection Agency: Problems Persist in Effectively Managing Grants</title>
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<abstract>Over the years, EPA has had persistent problems in managing its
grants. Grants constituted one-half of the agency&apos;s annual	 
budget, or about $4.2 billion in fiscal year 2002. EPA uses	 
grants to implement its programs to protect human health and the 
environment and awards them to over 3,300 recipients, including  
state and local governments, tribes, universities, and nonprofit 
organizations. EPA&apos;s ability to efficiently and effectively	 
accomplish its mission largely depends on how well it manages its
grant resources and builds in accountability. Since 1996, GAO and
EPA&apos;s Office of Inspector General have repeatedly reported on	 
EPA&apos;s problems in managing its grants. Because these problems	 
have persisted, in January 2003, GAO cited grants management as a
major management challenge for EPA. GAO is currently reviewing	 
EPA&apos;s efforts to improve grants management at the request of the 
Chairman of the House Committee on Transportation and		 
Infrastructure and Representative Anne Northup. For this	 
testimony GAO is reporting on results of its previously issued	 
reports and on the grants problems EPA faces, past actions to	 
address these problems, and recently issued EPA policies and a	 
5-year grants management plan to address its long-standing grants
management problems.</abstract>
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<note>Testimony</note>
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 <topic>Grant monitoring</topic>
 <topic>Grant administration</topic>
 <topic>Internal controls</topic>
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