Audit Report

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Superfund Activities in the Environment and Natural Resources Division
for Fiscal Years 2000 and 2001

Report No. 03-34
September 2003
Office of the Inspector General

Appendix III

FY 2000 Accounting Schedules & Summaries


RUBINO &	McGEEHIN CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

		May 3, 2001
RUBINO & McGEEHIN CHARTERED 6905 ROCKLEDGE DRIVE SUITE 700 BETHESDA, MARYLAND 20817-1818 PHONE: 301 564 3636 FAX: 301 564 2994 1600 BROADWAY SUITE 2400 DENVER, COLORADO 80202 PHONE: 303 542 1808 FAX: 303 542 1912		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 2000 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 anti Liability Act of 1980 and the Superfund Amendments and Reauthorization Act of 1986 (SARA or, hereafter, Superfund): EPA Billing Summary - Schedules 1-6 September 30, 2000 DOJ - Superfund Case Cost Summary (sorted by case number) As of September 30, 2000 DOJ - Superfund Cases - Time By Attorney/Paralegal Year Ended September 30, 2000 (electronic copy) DOJ - Superfund Direct Costs Year Ended September 30, 2000 The schedules represent the final fiscal year 2O00 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 2000.

Mr. Robert L. Bruffy
May 3, 2001
Page 2

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, 2000, 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 wilt 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 availab1e 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,

original signed

Rubino & McGeehin, Chartered

Enclosures

Schedule 1
EPA BILLING SUMMARY SUMMARY OF AMOUNTS DUE BY INIERAGENCY AGREEMENT September 30, 2000
Fiscal Years
	2000	1999	1998	1997	1996
EPA Billing Summary - Amount Paid	$ 26,349,861 (a)	$ 27,485,827 (b)	$ 29,172,873 (b)	$ 29,747,226 (b)	$ 31,796,230 (b)
Add:
Payments in FY 2000 for 1999 (a)		2,844,791
Payments in FY 2000 for 1998 (a)			288,942
Payments in FY 2000 for 1997 (a)				33,548
Payments in FY 2000 for 1996 (a)					11,883
Subtotal	26,349,861	30,330,618	29,461,815	29,780,774	31,808,113
Unliquidated Obligations (c)	3,333,079	240,366	281,760	8,590	0
Total	$ 29,682,940	$ 30,570,984	$ 29,743,575	$ 29,789,364	$ 31,808,113
	(a) See EPA Billing Summary, Schedule 2, September 30, 2000 (b) See EPA Billing Summary, Schedule 1, September 30, 1999 (c) See EPA Billing Summary, Schedule 3, September 30, 2000

Schedule 2
EPA BILLING SUMMARY SUPERFUND OBLIGATION AND PAYMENT ACTIVITY DURING 2000 BY FISCAL YEAR OF OBLIGATION September 30, 2000
Fiscal Years
	2000	1999	1998	1997	1996	Total
Amounts Paid:
Labor	$ 7,399,102		-	-	-	$ 7,399,102
Other Direct Costs	4,247,556	$ 1,119,023	$ 99,524	$ 26,156	$ 8,770	5,501,029
Indirect Costs	14,191,618	1,567,881	177,838	7,392	3,113	15,947,842
Superfund Program Expenses	511,585	157,887	11,580	-	-	681,052
Subtotal	26,349,861	2,844,791	288,942	33,548	11,883	29,529,025
Unliquidated Obligations (a)	3,333,079	240,366	281,760	8,590	0	3,863,795
Totals	$29,682,940	$3,085,157	$570,702	$ 42,138	$11,883	$33,392,820

(a) See Schedule 3

Schedule 3
EPA BILLING SUMMARY FISCAL YEARS 2000, 1999,1998, 1997 AND 1996 UNLIQUIDATED OBLIGATIONS September 30, 2000
Fiscal Years
	2000	1999	1998	1997
ENRD unliquidated obligations at September 30, 2000	$ 23,663,984	$ 4,384,405	$ 2,574,209	$ 413,314
Less: unliquidated obligations:
Section 1595 (a)	13,583,930	3,586,885	1,670,400	395,930
Section 1596 (b)	1,910,500	481,343	-	0
Section 1598 (c)	1,513,290	210,736	37,009	5,049
Subtotal	17,007,720	4,278,964	1,707,409	400,979
Net unliquidated obligations - ENRD	6,656,264	105,441	866,800	12,335
Superfund percentage (d)	27.3395%	28.1011%	28.2362%	28.7043%
Superfund portion of unliquidated obligations	1,819,789	29,630	244,751	3,541
Add - Section 1598 unliquidated obligations	1,513,290	210,736	37,009	5,049
Total Superfund unliquidared obligations (e)	$ 3,333,079	$ 240,366	$ 281,760	$ 8,590
(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 wa,s 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 September 30, 2000
Description				Total Amounts Paid (a)

Indirect labor (b)				$22,599,408
Fringes				11,419,703
Indirect travel				295,586
Freight				313,430
Office space and utilities				10,628,681
Printing(forms, etc.)				86,330
Training and other services				3,664,398
Supplies				879,484
Non-capitalized equipment and miscellaneous				441,040
Subtotal				50,328,060
Total Direct Labor				27,063,782
ENRD Indirect Costs Rate - F/Y 1999 Obligations				185.9609%

Plus: Superfund Indirect Costs for Prior Year Obligations (c) and Superfund Specific Costs ( d )
	2000	$ 432,173
	1999	1,567,881
	1998	177,838
	1997	7,392
	1996	3,113
	Total		2,188,397
Superfund Direct Labor			7,399,102
Superfund Indirect Rate				29.5765%
Total Indirect Rate				215,5374%


	(a)	Indirect cost rate calculations are presented on a fiscal year-to-date basis. A 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; $1,428,243, $ 108,938, $7,392, and $1,104 for F/Y 1999 through 1996 respectively.
	(d)	The balance of the charges in the totals presented were paid during fiscal year 2000 to maintain Superfund case information or perform other Superfund Specific activities. In that 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 $432,173, $139,638, $68,900, $0 and $2,009 for Fiscal years 2000 through 1996 respectively.

Schedule 5
EPA BILLING SUMMARY SUPERFUND COSTS BY OBJECT CLASSIFICATION September 30, 2000
Object Class	Description	Direct Expenses	Superfund Program Expenses	Indirect Expenses	Unliquidated Obligations (b)	Total
11	Salaries	$9,166,988 (a)	$ 58,301	$6,348,356	$2,058,627	$17,632,272
12	Benefits	-	-	3,122,090	193,145	3,315,235
21	Travel	611,914	-	80,812	93,415	786,141
22	Freight	-	-	85,690	30,500	116,190
23	Rent	-	68,493	2,931,601	62,449	3,062,543
24	Printing	153,666	-	23,603	32,448	209,717
25	Services	1,714,090	384,791	1,238,440	745,805	4,083,126
26	Supplies	-	-	240,447	36,385	276,832
31	Equipment	-	-	120,579	80,305	200,884
	Total	$11,646,658	$ 511,585	$14,191,618	$3,333,079	$29,682,940

(a) Includes costs for direct labor, special masters and expert witnesses. (b) Represents the Superfund portion of usliquidated damages.

Schedule 6
EPA BILLING SUMMARY RECONCILIATION OF TOTAL ENRD EXPENSES September 30, 2000
		---Superfund---		---Non-Superfund---		Indirect Section 1595 & 1596 Expenses	Total Paid
Object Class	Description	Direct Expenses	Indirect Expenses	Direct Expenses	Indirect Expenses	Indirect Section 1595 & 1596 Expenses	Total Paid
11	Salaries	$9,225,289	$6,348,356	$20,131,444	$16,420,842	$357,173	$52,483,104
12	Benefits	-	3.122,090	-	6,297,613	-	11,419,703
21	Travel	611,914	80,812	1,613,293	214,774	931	2,521,724
22	Freight	-	85,690	-	227,740	-	313,430
23	Rent	68,493	2,931,601	-	7,722,852	-	10,722,946
24	Printing	153,666	23,603	114,154	62,727	-	354,150
25	Services	2,098,880	1,238,440	5,939,596	2,662,571	1,030,334	12,969,821
26	Supplies	-	240,447	-	639,037	-	879,484
31	Equipment	-	120,579	-	320,461	309,017	750,057
Total		$12,158,242	$14,191,618	$27,798,487	$36,568,617	$1,697,455	$92,414,419