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


Appendix III
FY 2004 Accounting Schedules and Summaries

October 4, 2005



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 2004 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):

The schedules represent the final fiscal year 2004 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 2004.

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, 2004, 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, 2004
  Fiscal Years
 
  2004   2003   2002   2001   2000  
EPA Billing Summary - Amount Paid   $ 24,876,683 (a) $ 24,125,358 (b) $ 26,996,243 (b) $ 28,732,853 (b) $ 28,892,087 (b)
                     
Add:            
           
Payments in FY 2004 for 2003 (a) - 2,394,062 - - -
           
Payments in FY 2004 for 2002 (a) - - 623,287   -
           
Payments in FY 2004 for 2001 (a) - - - 236,796 -
           
Payments in FY 2004 for 2000 (a) - - - - (232)
           
           
  Subtotal 24,876,683 26,519,420 27,619,530 28,969,649 28,891,855
           
Unliquidated Obligations (c) 3,163,698 904,865 193,265 35,124 -
           
Total   $ 28,040,381 $ 27,424,285 $ 27,812,795 $ 29,004,773 $ 28,891,855
           
(a) See EPA Billing Summary, Schedule 2, September 30, 2004
(b) See EPA Billing Summary, Schedule 1, September 30, 2003
(c) See EPA Billing Summary, Schedule 3, September 30, 2004
  Schedule 2
 
EPA BILLING SUMMARY
SUPERFUND OBLIGATION AND PAYMENT ACTIVITY DURING 2004
BY FISCAL YEAR OF OBLIGATION
 
  Fiscal Years
                     
2004 2003 2002 2001 2000 Total
           
Amounts Paid:              
  Labor $ 7,595,887 $ - $ - $ - $ - $ 7,595,887
             
Other Direct Costs 2,083,287 1,194,856 619,942 260,253 - 4,158,338
             
Indirect Costs 14,668,225 1,199,206 3,345 (23,457) (232) 15,847,087
             
Superfund Program Expenses 529,284 - - - - 529,284
             
Subtotal 24,876,683 2,394,062 623,287 236,796 (232) 28,130,596
               
Unliquidated Obligations (a) 3,163,698 904,865 193,265 35,124 - 4,296,952
               
Totals $28,040,381 $ 3,298,927 $816,552 $271,920 ($232) $32,427,548
             
  (a) See Schedule 3
  Schedule 3
EPA BILLING SUMMARY
FISCAL YEARS 2004, 2003, 2002 AND 2001 UNLIQUIDATED OBLIGATIONS
 
September 30, 2004
  Fiscal Years
2004   2003   2002   2001
 
ENRD unliquidated obligations
at September 30, 2004
$ 28,319,169   $ 7,232,579   $ 608,570   $ 395,289
 
Less: unliquidated obligations:  
 
     Section 1595 (a) 19,018,945   3,455,282   320,286   320,610
     Section 1596 (b) 768,000   2,167,933   70,256   3,639
     Section 1598 (c) 1,478,963   666,069   185,291   22,508
 
       Subtotal 21,265,908   6,289,284   575,833   346,757
 
Net unliquidated obligations - ENRD 7,053,261   943,295   32,737   48,532
 
Superfund percentage (d) 23.8859%   25.3151%   24.3589%   25.9957%
 
Superfund portion of unliquidated obligations 1,684,735   238,796   7,974   12,616
 
Add - Section 1598 unliquidated obligations 1,478,963   666,069   185,291   22,508
 
Total Superfund unliquidated obligations (e) $ 3,163,698   $ 904,865   $ 193,265   $ 35,124
 
(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, 2004
  Total
Amounts
Paid (a)
Description  
 
Indirect labor (b) $25,959,902
Fringes 14,264,091
Indirect travel 315,398
Freight 315,211
Office space and utilities 12,350,918
Printing (forms, etc.) 21,167
Training and other services 4,735,032
Supplies 713,257
Non-capitalized equipment and miscellaneous 830,135
 
      Subtotal 59,505,111
 
Total Direct Labor 31,800,736
 
      ENRD Indirect Costs Rate - F/Y 2004 Obligations 187.1187%
 
 
Plus: Superfund Indirect Costs for Prior Year Obligations (c) and Superfund Specific Costs (d)
 
  2004   $454,897  
2003 1,199,206
2002 3,345
2001 (23,457)
2000 (232)
 
  Total   1,633,759  
Superfund Direct Labor 7,595,887
 
Superfund Indirect Rate 21.5085%
 
Total Indirect Rate 208.6272%
 
 
(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; $998,800; $3,345; $(23,457); and $(232) for F/Y 2003 through 2000 respectively.
(d) The balance of the charges in the totals presented were paid during fiscal year 2004 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 $454,897 and $200,406 for Fiscal years 2004 and 2003 respectively.
  Schedule 5
 
EPA BILLING SUMMARY
SUPERFUND COSTS BY OBJECT CLASSIFICATION
 
September 30, 2004
 
Object
Class.
Description   Direct
Expenses
  Superfund
Program
Expenses
  Indirect
Expenses
  Unliquidated
Obligations
(b)
  Total
 
11 Salaries   $8,922,752 (a) $ 74,429   $6,473,852   $1,619,672   $17,090,705
 
12 Benefits   -   -   3,407,106   118,815   3,525,921
 
21 Travel   483,239   -   75,335   51,817   610,391
 
22 Freight   - ` -   75,291   20,708   95,999
 
23 Rent   -   285,375   3,039,686   287,622   3,612,683
 
24 Printing   4,138   -   5,055   9,084   18,277
 
25 Services   269,045   169,480   1,223,247   904,802   2,566,574
 
26 Supplies   -   -   170,368   29,172   199,540
 
31 Equipment   -   -   198,285   122,005   320,290
  Total   $9,679,174   $ 529,284   $14,668,225   $3,163,697   $28,040,380
 
(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, 2004
 
  ---Superfund---   ---Non-Superfund---  
Object
Class.
Description   Direct
Expenses
Indirect
Expenses
  Direct
Expenses
Indirect
Expenses
  Indirect
Section
1595 & 1596
Expenses
  Total
Amounts
Paid
 
11 Salaries   $8,997,181 $6,473,852   $24,416,607 $19,759,145   $208,368   $59,855,153
 
12 Benefits   - 3,407,106   - 10,856,985   54,292   14,318,383
 
21 Travel   483,239 75,335   1,583,940 240,063   9,189   2,391,766
 
22 Freight   - 75,291   - 239,920   -   315,211
 
23 Rent   285,375 3,039,686   - 9,400,790   -   12,725,851
 
24 Printing   4,138 5,055   44,165 16,112   -   69,470
 
25 Services   438,525 1,223,247   1,499,658 3,604,029   6,445,035   13,210,494
 
26 Supplies   - 170,368   - 542,889   -   713,257
 
31 Equipment   - 198,285   - 631,850   -   830,135
 
Total   $10,208,458 $14,668,225   $27,544,370 $45,291,783   $6,716,884   $104,429,720

 



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