In general, the States we reviewed complied with subrecipient monitoring requirements. Our review identified several innovative techniques and procedures some States use to comply with the subrecipient monitoring requirements of the Single Audit Act, Clean Water Act, and Safe Drinking Water Act. Two States take advantage of current technology, such as e-mail and the Internet, to reduce the number of on-site inspections yet are able to track current construction activity. Two other States analyze subrecipient audit reports not only to track financial condition but also to make trend and ratio analyses to project on a subrecipients ability to repay a loan in the future. We did note two minor areas EPA should address. Only 59 percent of the States we reviewed identify the federal award information to the recipient, and EPA's Annual Performance Evaluation should include an evaluation of the States subrecipient monitoring procedures.