Watchdog Gives EPA Clean Bill of Financial Health, Despite Flaws

The EPA’s internal watchdog found serious problems in the agency’s financial statement, including the tracking of more than $800 million in funding for its clean school bus program, but nevertheless gave the agency a passing grade on its financial statements.

The “clean” opinion about EPA’s finances “means that we found the financial statements were fairly presented and free of material misstatement,” Damon Jackson, a director at the watchdog’s financial office, said on a podcast released Monday by the inspector general.

The concept of materiality is “more of a threshold which is used to determine significance,” Jackson said. Misstatements are considered ...