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 IV

FY 2003 Accounting Schedules & Summaries

 


Rubino & McGeehin Consulting Group, Inc.

May 24, 2004




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 2003 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, 2003

  • DOJ - Superfund Case Cost Summary (electronic copy)
    As of September 30, 2003

  • DOJ - Superfund Cases - Time By Attorney/Paralegal
    Year Ended September 30, 2003 (electronic copy)

  • DOJ - Superfund Direct Costs (electronic copy)
    Year Ended September 30, 2003

The schedules represent the final fiscal year 2003 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 2003.

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, 2003, 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, 2003


  Fiscal Years
  2003   2002   2001   2000   1999  
EPA Billing Summary – Amount Paid $24,125,358 (a) $23,313,323 (b) $27,827,986 (b) $28,896,804 (b) $30,326,820 (b)
     Add:
Payments in FY 2003 for 2002 (a) -   3,682,920   -   -   -  
Payments in FY 2003 for 2001 (a) -   -   904,867   -   -  
Payments in FY 2003 for 2000 (a) -   -   -   (4,717)   -  
Payments in FY 2003 for 1999 (a) -   -   -   -   (97,224)  
Subtotal 24,125,358   26,996,243   28,732,853   28,892,087   30,229,596  
Unliquidated Obligations (c) 4,241,965   994,613   169,689   21,190   -  
Total $28,367,323   $27,990,856   $28,902,542   $28,913,277   $30,229,596  
 


(a) See EPA Billing Summary, Schedule 2, September 30, 2003
(b) See EPA Billing Summary, Schedule 1, September 30, 2002
(c) See EPA Billing Summary, Schedule 3, September 30, 2003


Schedule 2

EPA BILLING SUMMARY
SUPERFUND OBLIGATION AND PAYMENT ACTIVITY DURING 2003
BY FISCAL YEAR OF OBLIGATION

September, 30 2003


  Fiscal Years
  2003   2002   2001   2000   1999   Total
Amounts paid
   Labor $7,767,463   -   -   -   -   $7,767,463
   Other Direct Costs 1,270,657   1,545,160   1,001,936   8,069   -   3,825,822
   Indirect Costs 15,087,238   1,955,379   (97,069)   (12,786)   (97,224)   16,835,538
   Superfund Program
   Expenses		 -   182,381   -   -   -   182,381
Subtotal 24,125,358   3,682,920   904,867   (4,717)   (97,224)   28,611,204
Unliquidated Obligations (a) 4,241,965   994,613   169,689   21,190   -   5,427,457
Totals $28,367,323   $4,677,533   $1,074,556   $16,473   ($97,224)   $34,038,661
 


(a) See Schedule 3


Schedule 3

EPA BILLING SUMMARY
FISCAL YEARS 2003, 2002, 2001, AND 2000 UNLIQUIDATED OBLIGATIONS

September, 30 2003


  Fiscal Years
        2003         2002         2001         2000
ENRD unliquidated obligations at September 30, 2003 $27,837,400   $2,905,856   $1,666,946   $549,099
Less: unliquidated obligations:
   Section 1595 (a) 17,040,169   1,276,974   1,062,937   521,678
   Section 1596 (b) 1,912,000   560,787   381,415   -
   Section 1598 (c) 2,668,089   970,950   151,105   18,845
       Subtotal 21,620,258   2,808,711   1,595,457   540,523
Net unliquidated obligations - ENRD 6,217,142   97,145   71,489   8,576
Superfund percentage (d) 25.3151%   24.3589%   25.9957%   27.3395%
Superfund portion of unliquidated obligations 1,573,876   23,663   18,584   2,345
Add - Section 1598 unliquidated obligations 2,668,089   970,950   151,105   18,845
Total Superfund unliquidated obligations (e) $4,241,965   $994,613   $169,689   $21,190


       (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, 2003


Description     Total Amounts Paid (a)
Indirect labor (b)         $25,827,495
Fringes         13,884,176
Indirect travel         153,478
Freight         358,032
Office space and utilities         12,228,663
Printing (forms, etc.)         40,810
Training and other services         4,986,464
Supplies         716,668
Non-capitalized equipment and miscellaneous         777,674
 
      Subtotal         58,973,460
 
Total Direct Labor         30,683,125
 
          ENRD Indirect Costs Rate - F/Y 2003 Obligations     192.2016%
 
Plus: Superfund Indirect Costs for Prior Year Obligations (c) and Superfund Specific Costs (d)
  2003   158,047    
  2002   1,955,379    
  2001   (97,069)    
  2000   (12,786)    
  1999   (97,224)    
 
    Total   1,906,347  
      Superfund Direct Labor       7,767,463  
 
      Superfund Indirect Rate         24.5427%
 
Total Indirect Rate         216.7443%
 
       (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; $1,690,206; $(97,069); $(12,786); and $(97,224) for F/Y 2002 through 1999 respectively.
               respectively.
       (d) The balance of she charges in the totals presented were paid during fiscal year 2003 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 $158,047 and $265,173 for Fiscal years 2003 and 2002
               respectively.


Schedule 5

EPA BILLING SUMMARY
SUPERFUND COSTS OBJECT CLASSIFICATION

September 30, 2003


Object
Class.		 Description   Direct
Expenses		   Indirect
Expenses		   Unliquidated
Obligations (b)		   Total
11 Salaries   $8,477,660 (a) $6,675,548   $2,331,296   $17,484,504
12 Benefits   -   3,514,793   95,026   3,609,819
21 Travel   359,105   38,853   46,494   444,452
22 Freight   -   90,636   5,891   96,527
23 Rent   -   3,095,699   24,538   3,120,237
24 Printing   18,179   10,331   1,559   30,069
25 Services   183,176   1,283,083   1,611,209   3,077,468
26 Supplies   -   181,425   42,977   224,402
31 Equipment   -   196,869   82,972   279,841
  Total   $9,038,120   $15,087,237   $4,241,962   $28,367,319


(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, 2003


 

 

 

---- Superfund ----

 

---- Non-Superfund ----

 

Indirect Section 1595 & 1596 Expenses

 

Total Amounts Paid

Object Class.

Description

 

Direct Expenses

 

Indirect Expenses

 

Direct Expenses

 

Indirect Expenses

 

 

11

Salaries

 

$8,477,660

 

$6,675,549

 

$23,100,320

 

$19,289,238

 

$199,243

 

$57,742,010

12

Benefits

 

-

 

3,514,793

 

-

 

10,369,383

 

-

 

13,884,176

21

Travel

 

359,105

 

38,853

 

1,571,613

 

114,625

 

42,510

 

2,126,706

22

Freight

 

-

 

90,636

 

-

 

267,396

 

-

 

358,032

23

Rent

 

-

 

3,095,699

 

-

 

9,132,964

 

-

 

12,228,663

24

Printing

 

18,179

 

10,331

 

204,287

 

30,479

 

82

 

263,358

25

Services

 

183,176

 

1,283,083

 

4,281,192

 

3,724,136

 

4,309,452

 

13,781,039

26

Supplies

 

-

 

181,425

 

-

 

535,243

 

209

 

716,877

31

Equipment

 

-

 

196,869

 

-

 

580,805

 

-

 

777,674

Total

 

 

$9,038,120

 

$15,087,238

 

$29,157,412

 

$44,044,269

 

$4,551,496

 

$101,878,535

Schedule 7

DEPARTMENT OF JUSTICE
ENVIRONMENT AND NATURAL RESOURCES DIVISION
SUMMARY OF SUPERFUND AMOUNTS BY SECTION
FISCAL YEAR 2003


Section

Hours

 

Direct
Labor

 

Other
Direct Costs

 

Indirect

 

Total

 

Cases

 

 

 

 

 

 

 

 

 

 

 

 

SF Program Exp

-

 

-

 

$182,381

 

-

 

$182,381

 

-

PLSL

358

 

16,546

 

-

 

35,863

 

52,409

 

3

Criminal

7,227

 

293,989

 

219,040

 

637,204

 

1,150,233

 

33

Defense

3,436

 

153,614

 

6,006

 

332,950

 

492,570

 

57

Enforcement

167,962

 

7,258,846

 

3,600,756

 

15,733,137

 

26,592,739

 

1,043

General Lit

941

 

40,138

 

21

 

86,997

 

127,156

 

4

Land Acq.

90

 

4,330

 

-

 

9,385

 

13,715

 

20

 

 

 

 

 

 

 

 

 

 

 

 

Total    

$180,014

 

$7,767,463

 

$4,008,204

 

$16,835,536

 

$28,611,203

 

1,160