Superfund Activities in the Environment and Natural Resources Division for Fiscal Years 2004 and 2005
Audit Report 07-43
September 2007
Office of the Inspector General
May 4, 2006
Mr. Robert L. Bruffy
U.S. Department of Justice
Environment and Natural
Resources Division
Suite 8000
601 D Street N.W.
Washington, DC. 20004
Dear Mr. Bruffy:
Enclosed please find the following final fiscal year 2005 year end accounting schedules and summaries relating to costs incurred by the United States Department of Justice (DOJ), Environment and Natural Resources Division (ENRD) on behalf of the Environmental Protection Agency (EPA) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the Superfund Amendments and Reauthorization Act of 1986 (SARA or, hereafter, Superfund):
EPA Billing Summary - Schedules 1-7
September 30, 2005
DOJ - Superfund Case Cost Summary (electronic copy)
As of September 30, 2005
DOJ - Superfund Cases - Time By Attorney/Paralegal
Year Ended September 30, 2005 (electronic copy)
DOJ - Superfund Direct Costs (electronic copy)
Year Ended September 30, 2005
The schedules represent the final fiscal year 2005 amounts, and establish an indirect cost rate applicable to the entire fiscal year. As a result, the summaries included supersede all prior preliminary information processed by us relating to fiscal year 2005.
The schedules, summaries and calculations have been prepared by us based on information supplied to us by the ENRD. Professional time charges, salary data, and other case specific cost expenditures have been input or translated by us to produce the aforementioned reports. Total costs incurred or obligated by the ENRD as reflected in the Expenditure and Allotment Reports (E&A) for the period have been used to calculate the total amount due from EPA relating to the Superfund cases. Computer-generated time reporting information supplied to us by DOJ (based on ENRD's accumulation of attorney and paralegal hours) along with the resulting hourly rate calculations made by us based on ENRD-supplied employee salary files, have been reviewed by us to assess the reasonableness of the calculated hourly rates. All obligated labor amounts reflected on the E&A's as of September 30, 2005, which are not identified as case specific, have been classified as indirect labor.
Our requested scope of services did not constitute an audit of the aforementioned schedules and summaries and, accordingly, we do not express an opinion on them. However, the methodology utilized by us to assign and allocate costs to specific cases is based on generally accepted accounting principles, including references to cost allocation guidelines outlined in the Federal Acquisition Regulations and Cost Accounting Standards. In addition, we understand that the DOJ audit staff will continue to perform periodic audits of the source documentation and summarized time reporting information accumulated by ENRD and supplied to us. Our accounting reports, schedules and summaries will, therefore, be made available to DOJ as part of this audit process. Beyond the specific representations made above, we make no other form of assurance on the aforementioned schedules and summaries.
Very truly yours,
Rubino & McGeehin Consulting Group, Inc.
Enclosures
Schedule 1 | |||||||||||||
EPA BILLING SUMMARY SUMMARY OF AMOUNTS DUE BY INTERAGENCY AGREEMENT |
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September 30, 2005 | |||||||||||||
Fiscal Years | |||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | |||||||||
EPA Billing Summary - Amount Paid | $ 22,088,194 | (a) | $ 24,876,683 | (b) | $ 26,519,420 | (b) | $ 27,619,530 | (b) | $ 28,969,649 | (b) | |||
Add: | |||||||||||||
Payments in FY 2005 for 2004 (a) | - | 2,540,877 | - | - | - | ||||||||
Payments in FY 2005 for 2003 (a) | - | - | 59,641 | - | - | ||||||||
Payments in FY 2005 for 2002 (a) | - | - | - | 62,284 | - | ||||||||
Payments in FY 2005 for 2001 (a) | - | - | - | - | (1,933) | ||||||||
Subtotal | 22,088,194 | 27,417,560 | 26,579,061 | 27,681,814 | 28,967,716 | ||||||||
Unliquidated Obligations (c) | 4,874,211 | 575,048 | 441,102 | 26,005 | - | ||||||||
Total | $ 26,962,405 | $ 27,992,608 | $ 27,020,163 | $ 27,707,819 | $ 28,967,716 | ||||||||
(a) | See EPA Billing Summary, Schedule 2, September 30, 2005 | ||||||||||||
(b) | See EPA Billing Summary, Schedule 1, September 30, 2004 | ||||||||||||
(c) | See EPA Billing Summary, Schedule 3, September 30, 2005 |
Schedule 2 | |||||||||||||
EPA BILLING SUMMARY SUPERFUND OBLIGATION AND PAYMENT ACTIVITY DURING 2005 BY FISCAL YEAR OF OBLIGATION |
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Fiscal Years | |||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | Total | ||||||||
Amounts Paid: | |||||||||||||
Labor | $ 7,063,184 | $ - | $ - | $ - | $ - | $ 7,063,184 | |||||||
Other Direct Costs | 1,111,321 | 687,536 | 145,821 | 58,549 | 2,276 | 2,005,503 | |||||||
Indirect Costs | 13,564,536 | 1,715,876 | (86,180) | 3,735 | (4,209) | 15,193,758 | |||||||
Superfund Program Expenses | 349,153 | 137,465 | - | - | - | 486,618 | |||||||
Subtotal | 22,088,194 | 2,540,877 | 59,641 | 62,284 | (1,933) | 24,749,063 | |||||||
Unliquidated Obligations (a) | 4,874,211 | 575,048 | 441,102 | 26,005 | - | 5,916,366 | |||||||
Totals | $26,962,405 | $3,115,925 | $ 500,743 | $88,289 | ($1,933) | $30,665,429 | |||||||
(a) | See Schedule 3 |
Schedule 3 | ||||||||
EPA BILLING SUMMARY FISCAL YEARS 2005, 2004, 2003 AND 2002 UNLIQUIDATED OBLIGATIONS |
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September 30, 2005 | ||||||||
Fiscal Years | ||||||||
2005 | 2004 | 2003 | 2002 | |||||
ENRD Unliquidated Obligations at September 30, 2005 |
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$32,410,939 | $4,372,164 | $ 3,236,481 | $ 78,675 | |||||
Less: Unliquidated Obligations: | ||||||||
Section 1595 (a) | 17,365,164 | 2,986,724 | 1,816,354 | 52,639 | ||||
Section 1596 (b) | 616,000 | 753,613 | 965,660 | - | ||||
Section 1598 (c) | 2,361,545 | 557,230 | 436,572 | 25,995 | ||||
Subtotal | 20,342,709 | 4,297,567 | 3,218,586 | 78,634 | ||||
Net Unliquidated Obligations - ENRD | 12,068,230 | 74,597 | 17,895 | 41 | ||||
Superfund percentage (d) | 20.8205% | 23.8859% | 25.3151% | 24.3589% | ||||
Superfund portion of Unliquidated Obligations |
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2,512,666 | 17,818 | 4,530 | 10 | |||||
Add - Section 1598 Unliquidated Obligations |
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2,361,545 | 557,230 | 436,572 | 25,995 | |||||
Total Superfund Unliquidated Obligations (e) |
$ 4,874,211 | $ 575,048 | $ 441,102 | $ 26,005 | ||||
(a) | Section 1595 relates to reimbursable amounts from agencies other than EPA. | |||||||
(b) | Section 1596 relates to non-Superfund charges. | |||||||
(c) | Section 1598 relates to charges that are Superfund specific. | |||||||
(d) | Superfund percentage of unliquidated obligations was calculated by dividing year to date Superfund | |||||||
direct labor by the total direct labor for each of the fiscal years. | ||||||||
(e) | Relates only to unliquidated obligations for the fiscal year indicated. |
Schedule 4 | ||||||||||
EPA BILLING SUMMARY INDIRECT RATE CALCULATION |
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September 30, 2005 | ||||||||||
Description | Total Amounts Paid (a) |
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Indirect labor (b) | $26,545,791 | |||||||||
Fringes | 15,384,042 | |||||||||
Indirect travel | 451,893 | |||||||||
Freight | 362,261 | |||||||||
Office space and utilities | 15,080,284 | |||||||||
Printing(forms, etc.) | 52,021 | |||||||||
Training and other services | 4,675,969 | |||||||||
Supplies | 619,548 | |||||||||
Non-capitalized equipment and miscellaneous | 654,509 | |||||||||
Subtotal | 63,826,318 | |||||||||
Total Direct Labor | 33,924,192 | |||||||||
ENRD Indirect Costs Rate - F/Y 2004 Obligations | 188.1440% | |||||||||
Plus: Superfund Indirect Costs for Prior Year Obligations (c) and Superfund Specific Costs (d) | ||||||||||
2005 | $ 275,579 | |||||||||
2004 | 1,715,876 | |||||||||
2003 | (86,180) | |||||||||
2002 | 3,735 | |||||||||
2001 | (4,209) | |||||||||
Total | 1,904,801 | |||||||||
Superfund Direct Labor | 7,063,184 | |||||||||
Superfund Indirect Rate | 26.9680% | |||||||||
Total Indirect Rate | 215.1120% | |||||||||
(a) | Indirect cost rate calculations are presented on a fiscal year-to-date basis. All case specific and other unallowable costs (Section 1595 and 1596) have been removed. | |||||||||
(b) | Indirect labor and fringes include certain month-end obligation accruals. | |||||||||
(c) | Indirect cost payments for the prior year obligations included in the totals presented are as follows; $1,603,240; $(86,180); $3,735; and $(4,209) for F/Y 2004 through 2001 respectively. | |||||||||
(d) | The balance of the charges in the totals presented were paid during fiscal year 2005 to maintain Superfund case information or perform other Superfund Specific activities. These charges were initiated as a result of Superfund and are of benefit only to the Superfund Program. They have been allocated only to Superfund cases through this separate indirect approach. The charges are $275,579 and $117,014 for Fiscal Years 2005 and 2004 respectively. |
Schedule 5 | |||||||||||
EPA BILLING SUMMARY SUPERFUND COSTS BY OBJECT CLASSIFICATION |
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September 30, 2005 | |||||||||||
Object Class. |
Description | Direct Expenses |
Superfund Program Expenses |
Indirect Expenses |
Unliquidated Obligations (b) |
Total | |||||
11 | Salaries | $7,614,862 | (a) | $ 113,303 | $5,674,596 | $2,281,884 | $15,684,645 | ||||
12 | Benefits | - | - | 3,203,033 | 121,763 | 3,324,796 | |||||
21 | Travel | 354,368 | - | 94,086 | 56,297 | 504,751 | |||||
22 | Freight | - | - | 75,424 | 85,017 | 160,441 | |||||
23 | Rent | - | 216,075 | 3,254,716 | 394,557 | 3,865,348 | |||||
24 | Printing | 18,132 | - | 10,830 | 4,260 | 33,222 | |||||
25 | Services | 187,143 | 9,433 | 983,868 | 1,461,101 | 2,641,545 | |||||
26 | Supplies | - | - | 128,992 | 43,845 | 172,837 | |||||
31 | Equipment | - | 10,342 | 138,991 | 425,486 | 574,819 | |||||
Total | $8,174,505 | $ 349,153 | $13,564,536 | $4,874,210 | $26,962,404 | ||||||
(a) | Includes costs for direct labor, special masters and expert witnesses. | ||||||||||
(b) | Represents the Superfund portion of unliquidated damages. |
Schedule 6 | |||||||||||||||||||||||
EPA BILLING SUMMARY RECONCILIATION OF TOTAL ENRD EXPENSES |
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September 30, 2005 | |||||||||||||||||||||||
---Superfund--- | ---Non-Superfund--- | Indirect Section 1595 & 1596 Expenses |
Total Amounts Paid |
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Object Class. |
Description | Direct Expenses |
Indirect Expenses |
Direct Expenses |
Indirect Expenses |
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11 | Salaries | $7,728,165 | $5,674,596 | $27,031,542 | $21,018,821 | $79,142 | $61,532,266 | ||||||||||||||||
12 | Benefits | - | 3,203,033 | - | 12,181,009 | 36,906 | 15,420,948 | ||||||||||||||||
21 | Travel | 354,368 | 94,086 | 1,796,813 | 357,807 | 15,498 | 2,618,572 | ||||||||||||||||
22 | Freight | - | 75,424 | - | 286,837 | - | 362,261 | ||||||||||||||||
23 | Rent | 216,075 | 3,254,716 | - | 11,940,493 | - | 15,411,284 | ||||||||||||||||
24 | Printing | 18,132 | 10,830 | 54,233 | 41,191 | - | 124,386 | ||||||||||||||||
25 | Services | 196,576 | 983,868 | 2,931,942 | 3,702,410 | 3,472,765 | 11,287,561 | ||||||||||||||||
26 | Supplies | - | 128,992 | - | 490,556 | - | 619,548 | ||||||||||||||||
31 | Equipment | 10,342 | 138,991 | - | 518,237 | 3,907 | 671,477 | ||||||||||||||||
Total | $8,523,658 | $13,564,536 | $31,814,530 | $50,537,361 | $3,608,218 | $108,048,303 |
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