Environmental Protection Agency's Construction Grant Program: Stronger Financial Controls Needed

Federal Water Pollution Control Act Amendments authorized grants for constructing wastewater treatment facilities to prevent untreated or inadequately treated sewage and other waste discharges into waterways. Grant recipients or grantees (state, municipality, or intermunicipal or interstate agency) can receive up to 75 percent of the funds from the federal government. Because of the magnitude of federal funds being spent for constructing waste treatment facilities and the potential for improprieties in a program this large, the financial procedures and fiscal controls exercised by the Environmental Protection Agency (EPA) and grantees in the administration of the construction grant program were reviewed.