Superfund Activities in the Environment and Natural Resources Division for Fiscal Years 2002 and 2003

Report No. 04-38
September 2004
Office of the Inspector General

Appendix I

Objectives and Scope

The purpose of the audit was to determine if the cost allocation process used by the ENRD and its contractor provided an equitable distribution of total labor, other direct costs, and indirect costs to Superfund cases during FY 2002 and FY 2003. To accomplish the overall objective the audit, we assessed whether: 1) the ENRD identified Superfund cases based on appropriate criteria, 2) costs distributed to cases were limited to costs reported in E&A Reports, and 3) adequate internal controls existed over the recording of direct labor time to cases and the recording of other direct charges to accounting records and Superfund cases.

The audit focused on, but was not limited to, financial activities and the procedures used by the ENRD to document, compile, and allocate direct and indirect costs charged to Superfund cases from October 1, 2001 through September 30, 2003. Based on discussions with the ENRD management, there have been no changes to the various processes. Therefore, for our assessment of internal controls over the compilation of direct labor charges, we relied on the results in OIG report number 01-19, August 2001, Environmental and Natural Resources Division Network Computer Security and Case Management System Internal Control Audit.

We conducted our audit in accordance with Government Auditing Standards issued by the Comptroller General of the United States.