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 III

FY 2002 Accounting Schedules & Summaries

 


Rubino & McGeehin Consulting Group, Inc.

September 15, 2003




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 2002 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 1-6 September 30, 2002

  • DOJ - Superfund Case Cost Summary (electronic copy) As of September 30, 2002

  • DOJ - Superfund Cases - Time By Attorney/Paralegal Year Ended September 30, 2002 (electronic copy)

  • DOJ - Superfund Direct Costs (electronic copy) Year Ended September 30, 2002

The schedules represent the final fiscal year 2002 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 2002.

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, 2002, 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

September 30, 2002


 

Fiscal Years

 

 

 

 

 

 

 

 

 

 

 

 

2002

 

2001

 

2000

 

1999

 

1998

 

EPA Billing Summary – Amount Paid

$23,313,323

(a)

$24,110,976

(b)

$28,865,765

(b)

$30,332,285

(b)

$29,473,655

(b)

     Add:

 

 

 

 

 

 

 

 

 

 

Payments in FY 2002 for 2001 (a)

-

 

3,717,010

 

-

 

-

 

-

 

Payments in FY 2002 for 2000 (a)

-

 

-

 

31,039

 

-

 

-

 

Payments in FY 2002 for 1999 (a)

-

 

-

 

-

 

(5,465)

 

-

 

Payments in FY 2002 for 1998 (a)

-

 

-

 

-

 

-

 

153,197

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

23,313,323

 

27,827,986

 

28,896,804

 

30,326,820

 

29,626,852

 

Unliquidated Obligations (c)

4,916,997

 

795,221

 

214,124

 

85,514

 

-

 

Total

$28,230,320

 

$28,623,207

 

$29,110,928

 

$30,412,334

 

$29,626,852

 

 


(a) See EPA Billing Summary, Schedule 2, September 30, 2002
(b) See EPA Billing Summary, Schedule 1, September 30, 2001
(c) See EPA Billing Summary, Schedule 3, September 30, 2002


Schedule 2

EPA BILLING SUMMARY
SUPERFUND OBLIGATION AND PAYMENT ACTIVITY DURING 2002
BY FISCAL YEAR OF OBLIGATION

September, 30 2002


 

Fiscal Years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2002

 

2001

 

2000

 

1999

 

1998

 

Total

Amounts paid:

 

 

 

 

 

 

 

 

 

 

 

   Labor

$7,017,674

 

-

 

-

 

-

 

-

 

$7,017,674

   Other Direct Costs

2,071,671

 

1,846,254

 

9,755

 

816

 

-

 

3,928,496

   Indirect Costs

13,649,159

 

1,804,970

 

21,284

 

(6,281)

 

153,197

 

15,622,329

   Superfund Program
   Expenses

574,819

 

65,786

 

-

 

-

 

-

 

640,605

Subtotal

23,313,323

 

3,717,010

 

31,039

 

(5465)

 

153,197

 

27,209,104

Unliquidated Obligations (a)

4,916,997

 

795,221

 

214,124

 

85,514

 

-

 

6,011,856

Totals

$28,230,320

 

$4,512,231

 

$245,163

 

$80,049

 

$153,197

 

$33,220,960

 


(a) See Schedule 3


Schedule 3

EPA BILLING SUMMARY
FISCAL YEARS 2002, 2001, 2000, AND 1999 UNLIQUIDATED OBLIGATIONS

September, 30 2002


 

Fiscal Years

 

 

 

 

 

 

 

 

 

2002

 

2001

 

2000

 

1999

 

 

 

 

 

 

 

 

ENRD unliquidated obligations at
September 30, 2001

$19,457,949

 

$5,314,075

 

$1,176,001

 

$707,538

Less: unliquidated obligations:

 

 

 

 

 

 

 

   Section 1595 (a)

9,043,925

 

2,629,103

 

767,465

 

600,397

   Section 1596 (b)

470,550

 

1,593,610

 

133,703

 

4

   Section 1598 (c)

3,298,307

 

691,195

 

191,281

 

77,063

       Subtotal

12,812,782

 

4,913,908

 

1,092,449

 

677,464

Net unliquidated obligations - ENRD

6,645,167

 

400,167

 

83,552

 

30,074

Superfund percentage (d)

24.3589%

 

25.9957%

 

27.3395%

 

28.1011%

Superfund portion of unliquidated obligations

1,618,690

 

104,026

 

22,843

 

8,451

Add - Section 1598 unliquidated obligations

3,298,307

 

691,195

 

191,281

 

77,063

Total Superfund unliquidated obligations (e)

$4,916,997

 

$795,221

 

$214,124

 

$85,514


       (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

September 30, 2002


Description

 

 

 

 

 

 

Total Amounts Paid (a)

 

 

 

 

 

 

 

 

 

 

Indirect labor (b)

 

 

 

 

 

 

 

 

$23,385,715

Fringes

 

 

 

 

 

 

 

 

12,704,518

Indirect travel

 

 

 

 

 

 

 

 

570,884

Freight

 

 

 

 

 

 

 

 

466,328

Office space and utilities

 

 

 

 

 

 

 

 

11,224,588

Printing (forms, etc.)

 

 

 

 

 

 

 

 

88,387

Training and other services

 

 

 

 

 

 

 

 

4,684,018

Supplies

 

 

 

 

 

 

 

 

701,577

Non-capitalized equipment and miscellaneous

 

 

 

 

 

 

822,826

 

 

 

 

 

 

 

 

 

 

      Subtotal

 

 

 

 

 

 

 

 

54,648,841

 

 

 

 

 

 

 

 

 

 

Total Direct Labor

 

 

 

 

 

 

 

 

28,809,455

 

 

 

 

 

 

 

 

 

 

          ENRD Indirect Costs Rate - F/Y 2001 Obligations

 

 

 

 

 

189.6906%

 

 

 

 

 

 

 

 

 

 

Plus: Superfund Indirect Costs for Prior Year Obligations (c) and Superfund Specific Costs (d)

 

 

 

 

 

 

 

 

 

 

 

2002

 

337,304

 

 

 

 

 

 

2001

 

1,804,970

 

 

 

 

 

 

2000

 

21,284

 

 

 

 

 

 

1999

 

(6,281)

 

 

 

 

 

 

1998

 

153,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

2,310,474

 

 

 

          Superfund Direct Labor

 

 

7,017,674

 

 

 

 

 

 

 

 

 

 

 

 

 

          Superfund Indirect Rate

 

 

 

 

 

 

32.9236%

 

 

 

 

 

 

 

 

 

 

Total Indirect Rate

 

 

 

 

 

 

 

 

222.6142%

 

 

 

 

 

 

 

 

 

 

       (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; $1,693,589; $21,284; $(6,281); and $153,197 for F/Y 2001 through 1998
               respectively.
       (d) The balance of she charges in the totals presented were paid during fiscal year 2002 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 $337,304 and $134,490 for Fiscal years 2002 and 2001
               respectively.


Schedule 5

EPA BILLING SUMMARY
SUPERFUND COSTS OBJECT CLASSIFICATION

September 30, 2002


Object Class.

Description

 

Direct Expenses

 

Superfund Program Expenses

 

Indirect Expenses

 

Unliquidated Obligations (b)

 

Total

11

Salaries

 

$8,243,218

(a)

$154,193

 

$5,872,021

 

$2,661,023

 

$16,930,455

12

Benefits

 

-

 

-

 

3,094,680

 

202,785

 

3,297,465

21

Travel

 

479,944

 

-

 

139,062

 

70,702

 

689,708

22

Freight

 

-

 

-

 

113,592

 

9,516

 

123,108

23

Rent

 

-

 

95,840

 

2,765,049

 

51,156

 

2,912,045

24

Printing

 

40,815

 

-

 

21,528

 

5,253

 

67,596

25

Services

 

299,336

 

324,786

 

1,271,898

 

1,819,018

 

3,715,038

26

Supplies

 

-

 

-

 

170,897

 

36,028

 

206,925

31

Equipment

 

26,032

 

-

 

200,432

 

61,516

 

287,980

 

Total

 

$9,089,345

 

$574,819

 

$13,649,159

 

$4,916,997

 

$28,230,320

 

 

 

 

 

 

 

 

 

 

 

 

(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
September 30, 2002


 

 

 

---- Superfund ----

 

---- Non-Superfund ----

 

Indirect Section 1595 & 1596 Expenses

 

Total Amounts Paid

Object Class.

Description

 

Direct Expenses

 

Indirect Expenses

 

Direct Expenses

 

Indirect Expenses

 

 

11

Salaries

 

$8,397,411

 

$5,872,022

 

$22,125,959

 

$17,689,213

 

$264,234

 

$54,348,839

12

Benefits

 

 

 

3,094,680

 

 

 

9,609,838

 

62,971

 

12,767,489

21

Travel

 

479,944

 

139,062

 

1,719,964

 

431,823

 

5,749

 

2,776,542

22

Freight

 

-

 

113,592

 

-

 

352,736

 

-

 

466,328

23

Rent

 

95,840

 

2,765,049

 

-

 

8,490,402

 

-

 

11,351,291

24

Printing

 

40,815

 

21,528

 

55,420

 

66,857

 

-

 

184,620

25

Services

 

624,123

 

1,271,898

 

5,497,764

 

3,543,043

 

1,599,160

 

12,535,988

26

Supplies

 

-

 

170,896

 

-

 

530,680

 

1

 

701,577

31

Equipment

 

26,032

 

200,432

 

- 

 

622,394

 

5,927

 

854,785

Total

 

 

$9,664,165

 

$13,649,159

 

$29,399,107

 

$41,336,986

 

$1,938,042

 

$95,987,459