TD171
.U56c
93/10
350R93003
           Office of Inspector General
           Semiannual Report
           to the Congress

           April 1, 1993 through
           September 30, 1993
                              Recycled/Recyclable
                              Printed with Soy/Canola Ink on paper th;
                              contains at least 50% recycled fiber

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On the cover:  El Capitan,
Yosemite National Park, California.
An OIG Special Review found that
contamination from leaking
underground tanks in the park had
not been cleaned up (page 21)
(photo by Kathy Thompson, OIG
staff).

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                      EPA Office of Inspector General
                     Semiannual Report/September 30, 1993

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Foreword
                                       During this semiannual reporting period, the Office of Inspector
                                General continued working to help EPA improve its performance in
                                carrying out its environmental mission, achieving savings and
                                protecting its resources from the risk of loss.  This work is compatible
                                with the President's vision of streamlining government as articulated
                                by the National Performance Review. The OIG has worked
                                collaboratively with managers for many years through an extensive
                                performance audit program, making hundreds of constructive
                                recommendations to improve economy, efficiency and effectiveness of
                                EPA's operations. While EPA managers have been responsive to our
                                work, much more still needs to be done.

                                       This report, which summarizes the work we have done this six-
                                month period, covers pesticide registration, production of ozone-
                                depleting chemicals, management of extramural resources, controls
                                on financial reporting, cash management, Superfund accounting and
                                data collection, along with many other areas.  We are enthusiastic
                                about the President's goal to reinvent government and the
                                Administrator's personal attention to implementing program
                                improvements in  EPA. With this foundation, we will seek more
                                opportunities for greater collaboration with Agency managers to meet
                                the challenges ahead.
                                   hn C. Martin
                                 Inspector General

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   Contents
Executive Summary  	  1	x
EPA High Risk Areas of Significant Concern to the OIG	  4    / /./ /
Profile of Activities and Results	  6
Establishment of the  OIG in EPA-lts Role and Authority	  7    t (,( '-}
Organization and Resources	  7        .j f.   .
Purpose and Requirements of the Office of Inspector General                                          "'/ '
       Semiannual Report 	  7

Section 1-Significant Problems, Abuses, and Recommendations
Summary of Audit Activities and Results	9
Agency Management  	  10
Construction Grants 	  16
Superfund Program	  19
Special Reviews	  21

Section 2-Report Resolution
Status Report on Perpetual  Inventory of Reports in Resolution Process
 for the Semiannual Period Ending September 30, 1993	  23
Audit Followup  	  24
Status of Management Decisions on IG Reports	  25
Resolution of Significant Reports	  26

Section 3--Prosecutive Actions
Summary of Investigative Activity	  27
Description of Selected Prosecutive and Administrative Actions	  28
Civil and Administrative Actions to Recover EPA Funds  	  29

Section 4--Fraud Prevention and Resource Management Improvements
Review of Legislation and Regulations	  31
Suspension and Debarment Activities	  33
Congressional Testimony by the Inspector General	  34
OIG Management Initiatives	  35
President's Council on  Integrity and Efficiency  	  36
Committee on Integrity  and Management Improvement	  36
Hotline Activities	  36

Appendices

Appendix  1--Reports Issued	  37
Appendix 2--Reports Without Management Decisions 	  50
                                                                 U.S. Environmental Protection Agency

                                                                 77 West Jackson Boulevard, 12th Floor
                                                                 Chicago, IL   60604-3590

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   Executive  Summary
 Section 1-
 Significant Problems,
 Abuses, and
 Recommendations

 1. EPA's Decisions to
 Reduce Risks of Registered
 Pesticides Need More Public
 Involvement.

 Special reviews of registered
 pesticides which might cause
 unreasonable adverse health
 and environmental effects took
 too long.  As a result, EPA
 frequently began to negotiate
 with the registrants to reduce
 the risks of such pesticides
 quickly, but without assurance
 of public involvement (page
 10).

 2. Better Controls Needed
 Over EPA Narragansett
 Laboratory's Contracts and
 Assistance Agreements.

 EPA's  Environmental
 Research Laboratory,
 Narragansett, Rhode Island,
 did not have effective
 management controls to
 ensure that pertinent laws,
 regulations, and Agency
 policies were satisfied in
 awarding and administering
 contracts, cooperative
 agreements, and interagency
 agreements. As a result, the
 Laboratory's management
 could not be assured that
 extramural funds were used in
 the best interest of the Agency
 (page 10).

 3. EPA Needs Reliable
 Information on  the
 Production of Ozone-
 Depleting Chemicals.

 EPA did not have adequate
 information to monitor properly
the production of carbon
tetrachloride and did  not
document its reviews of
international trades of
chlorofluorocarbons (CFC)
production allowances. In
 addition, the Agency did not
 have a system to monitor
 exports of ozone-depleting
 chemicals (page 11).

 4. Stronger Enforcement
 Actions Needed Against
 Small Water Supply
 Systems.

 EPA Region 1  and the States
 of Vermont and New
 Hampshire did not take timely
 and effective enforcement
 actions against small public
 water supply systems which
 violated Safe Drinking Water
 Act (SDWA) requirements.
 Without compliance with the
 SDWA, the quality and safety
 of the drinking  water was
 questionable (page 12).

 5. Audits of EPA's Financial
 Statements Show Need for
 Improvements in Agency
 Accounting Systems and
 Controls.

 Key weaknesses in EPA's
 accounting systems and
 controls affected the reliability
 of the Agency's fiscal 1992
 financial statements. Without
 adequate systems and
 controls,  EPA cannot fully rely
 on the financial information
 used to manage the Agency's
 funds and programs or be
 assured that its assets are
 properly safeguarded (page
 13).

 6. Regions 1 and 8 Need to
 Improve Their
 Implementation of the
 Federal Managers' Financial
 Integrity Act.

 Regions 1 and  8 had not
 properly identified,
 documented, and evaluated
 their management and
financial controls.  As a result,
 the Regions could  not ensure
that they were protecting and
 managing their resources
effectively and  efficiently to
 accomplish their missions
 (page 14).

 7. EPA's Cash Reconciliation
 Procedures Need
 Improvement.

 EPA did not routinely reconcile
 its general ledger balances
 with its financial reports and
 balances maintained by the
 Department of the Treasury.
 As a result, there have been
 differences of millions of
 dollars between EPA and
 Treasury records that have
 been unreconciled since 1989
 (page 15).

 8. Nearly $104 Million of
 Questioned Costs Claimed
 for New York City Projects.

 The City of New York claimed
 $41,632,671  of ineligible
 architectural  engineering,
 construction, force account,
 and innovative and alternative
 technology costs.  An
 additional $62,365,878 of
 unsupported and unreasonable
 costs were questioned (page
 16).

 9. Springfield, Oregon,
 Claimed $9.2 Million of
 Ineligible and Unsupported
 Costs.

 The Metropolitan Wastewater
 Management Commission,
 Springfield, Oregon, claimed
 $2,511,772 of ineligible
 administrative, engineering,
 insurance, and construction
 costs. An additional
 $6,657,189 of unsupported
 project costs were questioned
 (page 16).

 10. More Than $9.2 Million of
 San Diego, California,
 Project Costs Questioned.

 The City of San Diego,
 California,  claimed $9,084,891
of ineligible construction,
engineering,  and  administrative
costs. An additional $122,810
of unsupported project costs
were questioned (page 17).

11. Baltimore, Maryland,
Claimed $9.2 Million of
Questioned Costs.

The City of Baltimore claimed
$6,590,945 of ineligible
architectural engineering,
construction, administrative,
and equipment costs. An
additional $2,581,473 of
unsupported costs were
questioned (page 17).

12. Over $5.8 Million of
Questioned Costs Claimed
for Las Virgenes, California,
Project.

The Las Virgenes Municipal
Water District claimed
ineligible construction,
engineering, and administrative
costs of $5,091,815 for
construction of a wastewater
treatment plant. An additional
$757,976 of unreasonable
project costs were questioned
(page 18).

13. Salisbury,
Massachusetts, Claimed
Nearly $3.6 Million of
Ineligible Costs.

The Town of Salisbury,
Massachusetts, claimed
$3,581,518 of ineligible
engineering, construction,
administrative, and  other costs
for the design and construction
of a secondary wastewater
treatment plant and interceptor
sewers (page 18).

14. Reported Superfund
Accomplishments
Questioned.

Data in the Comprehensive
Environmental Response,
Compensation, and Liability
Information System, EPA's
Superfund management
information system, was not
always reasonable and
accurate. Some
accomplishments claimed for
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                            1

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fiscal 1992 in Regions 5, 8, 9,
and 10 were invalid (page  19).

15. Improperly Classified
Superfund Costs May Affect
Recovery From Responsible
Parties (RP).

Some Superfund cleanup
costs were improperly charged
to accounts for accumulating
costs of assessing whether
Federal action was needed
rather than to specific site
accounts  or general program
accounts.  As a result, costs
charged to RPs for Agency
cleanup and enforcement
activities may be inaccurate
(page  20).

16. Parts of Yosemite
National  Park Remain
Seriously Polluted from
Leaking Underground
Storage Tanks.

Neither the National Park
Service nor its concessioner
had cleaned up any of 44
leaking underground storage
tank sites in Yosemite National
Park, California,  many of which
had been discovered more
than 7 years ago.  Thirteen of
these sites affected
groundwater (page 21).

17. Improper Use of
Intergovernmental Personnel
Act Agreements and
Extramural Resources.

During the last 5 years, the
Office of Cooperative
Environmental Management
had not properly managed its
use of Intergovernmental
Personnel Act assignments,
cooperative agreements,
interagency agreements,
contracts, and consultants
(page 21).
Section 2-Report
Resolution

At the beginning of the
semiannual period, there were
326 reports for which no
management decision had
been made.  During the
second half of fiscal 1993, the
Office of Inspector General
issued 851 new reports and
closed 845 reports. At the end
of the reporting period, 331
reports remained  in the
Agency followup system for
which no management
decision had been made. Of
the 331 reports, 100 reports
remained in the Agency
followup system for which no
management decision was
made within 6 months of
issuance (page 23).

In one followup review, the
Office of Inspector General
found that some problems
identified in a previous report
continued  (page 24).
However, we have nothing to
report this period  with respect
to significant management
decisions with which we
disagree, as required by the
1988 Inspector General Act
Amendments.

For the 265 reports closed that
required Agency action, EPA
management disallowed $48.8
million of questioned costs for
recovery and agreed with our
recommendations that  $7.6
million be  put to better use
(page 23). In addition, cost
recoveries in current and prior
periods included $5.0 million in
cash collections, and $18.7
million in offsets against
billings (page 6).

Section 3-Prosecutive
Actions

During this semiannual
reporting period, our
investigative efforts resulted in
16 convictions and 23
indictments.  Also, during this
semiannual period, our
investigative work led to $7.3
million in fines and recoveries
(page 27).

A major EPA contractor
pleaded guilty to false claims;
a Kentucky company and its
owner pleaded guilty to a bribe
attempt; a testing lab pleaded
guilty to a  a false claim; an
EPA Headquarters office
director was convicted and
sentenced on 13 felony
counts; the president of a New
York testing lab was
sentenced for submitting false
reports; two individuals
pleaded guilty to submitting a
false claim under the asbestos
school hazard abatement
program; a steel firm pleaded
guilty to a  conspiracy to
defraud the government in
connection with a minority
business enterprise program;
and an EPA on-scene
coordinator and a landowner
were indicted for conspiring to
defraud the government (page
28).

Section  4-Fraud
Prevention and
Resources
Management

Review of Proposed
Legislation and Regulations

During this semiannual period,
we reviewed 7 legislative and
82 regulatory items.  The most
significant were comments on
OMB's request to agencies to
eliminate certain mandated
reports, the proposed Federal
Credit and Cash Management
Act of 1993, the Agency's
proposed drinking water
revolving fund, and a revision
to the EPA Contracts
Management Manual (page
31).

Suspension and Debarment
Activities

We completed 69 cases during
this reporting period, resulting
in 35 suspensions, 27
debarments, and 7 compliance
agreements (page 33).

Congressional Testimony by
the Office of Inspector
General

The Inspector General testified
before Congressional
committees on elevating EPA
to Cabinet status, on audit
work in Superfund, on contract
management, and on reviews
conducted of EPA's research
and development laboratories.
The Deputy Inspector General
testified on the Superfund
Innovative Technology
Evaluation (SITE) program
(page 34).

Committee on Integrity and
Management Improvement

The EPA Committee on
Integrity and Management
Improvement (CIMI), chaired
by the Inspector General,
developed and distributed a
leaflet to heighten employee
awareness of the seriousness
of copyright infringement and
violation of software licenses.
CIMI also developed and
coordinated a series of events
during Public Service
Recognition Week in May
(page 36).

Hotline Activities

The OIG toll-free Hotline
became part of President
Clinton's efforts to improve the
Government, serving as a
collection point for the public's
ideas. The Hotline referred
3,191 telephone callers to the
appropriate EPA program
office, State agency, or other
Federal agency for assistance
Forty-six cases were opened
and 43 were closed during the
reporting period.  Of the close
cases, 6 resulted in
environmental, prosecutive, oi
administrative corrective actio
(page 36).
                                                                                        OFFICE OF INSPECTOR GENERAL

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   Major Laws Administered by EPA
   Statute
   Toxic Substances Control Act
   l-ederal Insecticide, Fungicide,  :
   and Hodenticldr Act''-   :
   Federal Food* drujg arid Cosmetic Ac*   ...
   Resource Conservation and Recovery Act
                 Environmental Response,
   Compensation; and Liability Act   .:
   Clean Air Act
   Clean WatefActt
   Sate DrinWng Water: Act
   Marine Protection, Research and   ?   '
   Sanctuaries Act •'•.'•'••".-.

   A$besto$ School Hazard Abatement Act
                             Response Act
             Pfenning and Community
   to4o$a} & a
 chemical.             ' j     ; .' •  : '.. '.' .

 Authorizes EPA to register all pesticides, specify the terms and
 conditions ol their us«, and remove unreasonably hazardous pesticides
 from the markiad^|be,            II
; Au*hortK0$ EP'J^ oooperatioft with  0A to
 for pesticide residues on food.
 Authorizes EPA to identify hazardous *astes and regulate their
; generation, tranapHCjrtation, treatment, storage, and disposal

 Requires EPA to des^nate hazardous substances thai can present
 substantial danger and authorizes the cleanup of sites contaminated
 with such substances.    ;         '-.     ;

 Authorizes EPA to set emission standards to limit the release of criteria
 poSutants and hazardous air pollutants,
         EPAio estabish a ii$t of loxk? wat^r
Standards.    • :'.-";..•   ? -;: '   '•  -- '
                                                  awl set
                   drlr>*tog:wMer etandaro's to j»otect jjybtic heaSh
                                                 from
 Regulates ocean dumping of toxfc contaminants^
           EPAlto prov^ loans and grants to schools with financial
 need for abatement of severe asbestos hazards,
         EPA Jo; esiab^h a oorttpreh^nstve regulatorif framewo* for
 controlling asbestos hazards in schools. •
'• Requires States to devefop programs for responding
chemical releases and r»
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   EPA  High  Risk Areas  of Significant  Concern To The DIG
This section of our report
presents the Office of
Inspector General's (DIG)
perspective on significant
problems which the Agency
must address to ensure its
programs are  conducted in an
effective, efficient, and
economical manner. The
OIG's semiannual report for
the period ended March 31,
1993, presented the OIG's
perspective on six major
areas: Management of
Extramural Resources,
Financial Management,
Scientific Data Integrity,
Information Resources
Management, Enforcement,
and Audit Followup and
Implementation of Corrective
Actions to  closely correspond
with EPA's current priorities
and future initiatives.  These
areas continue to be of
concern to the OIG and
Agency management.  The
Agency included these six
areas in its 1992 Federal
Managers' Financial Integrity
Act assurance letter to the
President and Congress as
material weaknesses.

Management of Extramural
Resources

EPA relies extensively on
contractors and other outside
entities to  assist in carrying out
its mission to  clean up past
pollution problems, develop
national policy, and set the
environmental agenda for the
future. These outside groups
may be commercial firms that
EPA has contracts with to
provide goods and services;
public organizations, such as
universities or State and local
organizations, that EPA funds
to pursue areas of mutual
environmental concern through
cooperative agreements; or
other  agencies of the Federal
government that provide
assistance through  interagency
agreements.
  In response to criticisms of
EPA's contract management
practices, the Agency
established a Standing
Committee on Contract
Management (now called the
Resource Management
Committee). In June 1992, the
committee made 40
recommendations to address
EPA's contracting problems.
EPA reports that it has
completed action on 15 of
those recommendations, and
is in the process of completing
action on the remaining ones.
In addition, the Agency has
expanded its corrective actions
to include assistance
agreements and relevant
aspects of financial
management.
 However, our recent work at
the Office of Research and
Development, the Office of
Administration and Resources
Management, the Office of
Cooperative Environmental
Management (OCEM), and
Region 3 has continued to
show the pervasive nature of
resource management
problems at  EPA.  These
problems not only affect how
Federal tax dollars are spent,
but they also detract from the
effectiveness of EPA's
programs. Significant issues
identified during these audits
are discussed below.

• Work Outside the Scope of
the Contract. Some EPA
offices continue to have
contractors perform work
outside the scope of their
contracts. A review in OCEM
found that a contractor was
paid for a number of services
outside the contract's scope,
including establishing two
independent, nonprofit
organizations, to which EPA
then awarded assistance
agreements (see page 21).

• Personal Services. We are
continuing to find contractor
employees performing
personal services at EPA. For
example, audit work at OCEM
determined that contractor
employees were often used as
personal staff, such as
assistants to Federal
managers, although that is
prohibited by Federal
regulations.

• Inherently Governmental
Functions. Contractors were
performing inherently
governmental functions at the
laboratory we reviewed (see
page 10).
 Government regulations
specify that Federal employees
shall perform the duties of
Designated Federal Officials
on advisory committees.
However, OCEM used a non-
Federal employee  in this
capacity, and a second served
as a Deputy Designated
Federal Official,  on EPA
advisory committees.

• Potential Conflicts of
Interest.  EPA regulations
prohibit an Agency employee
from taking any  action which
results in, or creates the
reasonable appearance of: (1)
giving preferential  treatment to
an organization or person; (2)
losing independence; or (3)
undermining the confidence of
the public in the integrity of the
Government.  At one
laboratory we reviewed, we
found that contractor
employees were used to
perform quality assurance
activities, which  could include
reviewing the performance of
the contractor itself.
 OCEM paid a consultant to
help establish an independent,
nonprofit organization, of which
he then became president.
OCEM has continued to do
business with this  nonprofit
organization on  an increasing
scale (see page 21).

• Procurement  Process.
EPA officials did not ensure
that contracts were fairly
awarded in the best interest of
the government. For  example,
one laboratory we reviewed
tailored request for proposals
requirements, changed the
contract method from an 8(a)
set-aside to a competitive
award, and underestimated the
contract amount, which helped
to ensure that the incumbent
contractor would be retained.

• Cooperative and
Interagency Agreements,
and Intergovernmental
Personnel Act Assignments.
Recent work has shown that
mismanagement of extramural
resources is not limited to
contracts, but also extends  to
other types of extramural
resources.  For example, the
laboratory we reviewed
improperly used an
interagency agreement to fund
the travel of foreign scientists
to the United States to
participate in a two-month
study.  The laboratory also
improperly used research
funds to help finance the
operations of a day care
center, including using a
cooperative agreement to pay
a teacher's salary; other
extramural funds to pay for
janitorial services; and contract
funds to pay for renovations.
  OCEM improperly used
interagency agreements and
Intergovernmental Personnel
Act assignments to acquire
non-competitively the services
of consultants and contractors,
and to pay for hundreds of
thousands of dollars of travel
for non-Federal individuals  to
attend advisory council and
committee meetings.

• Contract Audit Backlog.
The OIG has taken action to
improve audit coverage and
reduce the number of open
audit  requests relating to the
Agency's contractors.  As of
September 30, 1993, there
were  463 outstanding incurrec
cost audit requests of which
57, or 12 percent, were
requested prior to 1991.  We
are working closely with the
Defense Contract Audit
Agency (DCAA) to complete <
                                                                                        OFFICE OF INSPECTOR CENERAl

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 of these audits.  However, in
 fiscal 1993, we did not receive
 the required resources to meet
 DCAA's funding request of
 approximately $2.9 million.
 We were able to provide $2.3
 million, resulting  in a shortfall
 of $600,000.  For fiscal 1994,
 DCAA requested $3.5 million,
 and we anticipate being able
 to fund $2.8 million, a shortfall
 of $700,000.  This has
 adversely affected our ability to
 reduce the audit  backlog for
 contracts.

 Financial Management

 The OIG has repeatedly
 reported that EPA's accounting
 systems do not provide
 complete, consistent, reliable,
 and timely data for Agency
 decision-making.  In response,
 EPA has devoted considerable
 time to improving the Agency's
 overall performance in the
 area.  Significant issues
 identified during recent audits
 of the financial statements for
 the Pesticides, Superfund,
 Leaking Underground Storage
 Tanks, and Asbestos Trust
 Funds; EPA's Federal
 Managers' Financial Integrity
 Act process; EPA's cash
 reconciliation process; and
 Superfund accounts are
 discussed on pages 13, 14,
 and 15.
  In response to a
 Congressional request, we
 began a broad, top-level
 review of EPA's financial
 management.  We are working
 in collaboration with Agency
 personnel to identify all
 significant causes of EPA's
 problems in this area and to
 make joint recommendations
to the Administrator for
 effective solutions.
  We will continue emphasizing
 audits in the financial
 management area as
 necessary and in response to
the Chief Financial Officers
 Act.  In addition, we will
continue to work with the
Agency to ensure that an
effective organization is
 established that provides the
 Chief Financial Officer with the
 authority to correct EPA's
 longstanding financial
 management problems.

 Data Integrity

 The accuracy and reliability of
 scientific, programmatic, and
 management data have always
 been crucial to EPA's mission,
 because they form the basis
 for decisions that affect all
 major American industries and
 national policies to prevent
 hazards and risks to health
 and safety. Accurate,  reliable,
 timely data play a key  role in
 the effectiveness of EPA's
 programs.  However, our
 audits have shown that various
 kinds of EPA data systems
 frequently contain incomplete,
 inaccurate data, and that EPA
 does not always receive
 complete information from the
 regulated community.  For
 example, audits in several
 regions questioned the
 accuracy of significant  portions
 of the 1992 "accomplishments"
 recorded in the Superfund
 program's primary automated
 information system  (see page
 19). An audit of EPA's
 implementation of portions of
 the Clean Air Act Amendments
 embodying the Montreal
 Protocol showed that EPA
 used data known to be flawed
 against which to measure
 production reductions for an
 important ozone-depleting
 chemical (see page 11).

 Information Resources
 Management (IRM)

 IRM is critical to the success
of all program activities.
 EPA's IRM program has been
hampered by numerous
problems, including significant
cost overruns and delays in
developing information
systems; data quality
deficiencies; development of
duplicate information systems;
uneconomical management of
mainframe storage devices;
exposure of the Agency's most
sensitive information systems
to access by unauthorized
users; and  lack of Agency
assurance that automatic data
processing support services
contracts are being
implemented effectively,
efficiently, and at the lowest
cost to the  Government.
These problems materially
affect the effectiveness of
EPA's programs.
  We currently have several
major efforts underway to
further assess EPA's
performance in crucial IRM
areas. First, we are leading a
government-wide President's
Council on  Integrity and
Efficiency review of
applications software
maintenance.  Second, we are
auditing the development of
EPA's Integrated Financial
Management System.  Finally,
as with financial management,
we are responding to a
Congressional request by
conducting  a broad, top-level
review of EPA's IRM program.
We are working in
collaboration with Agency
personnel to catalog all
significant causes of EPA's
problems in this area and to
make joint recommendations
to the Administrator for
effective  solutions.

Enforcement

During the past 2 years, OIG
audits of  EPA's water,
pesticide, hazardous materials,
and Superfund programs have
reported continuing instances
of ineffective Federal and
State enforcement. EPA
management has worked to
improve EPA's enforcement
program in  response to, or
concurrent with, our audit
efforts. However, during this
reporting  period we found that
cleanup actions were usually
delayed at the 44 leaking
underground storage tank sites
in Yosemite National Park,
without any enforcement
actions being taken (see page
21). An audit of the
enforcement of the Safe
Drinking Water Act (SDWA)
reported that EPA Region 1
and the States of Vermont and
New Hampshire did not take
timely and effective
enforcement actions against
small public water systems
which violated SDWA
requirements (see page 12).

Audit Followup  and
Implementation of Corrective
Actions

Since 1988 we have been
assessing the effectiveness of
EPA's audit followup
responsibilities. EPA has
elevated the issue of audit
followup to the highest
management levels and
appears committed to making
improvements, and some
improvements are being
realized. For example, in a
recent followup audit on the
Superfund Innovative
Technology Evaluation
Program, we reported that the
Office of Research and
Development had taken some
corrective actions in response
to our 1989 report. However,
others had not been
implemented adequately or at
all (see  page 24).
  EPA is working with the OIG
to strengthen audit followup
throughout the Agency.  A
Quality Action Team made up
of OIG and Agency
representatives is updating the
EPA Order on "Management of
EPA Audit Reports and
Followup Actions" to identify
procedural changes that will
result in a timely, fair audit
resolution process. The Team
has submitted their revised
EPA Order for Agency review.
To date, the Agency has made
enough  improvements in the
audit followup process that we
recommended it be lowered
from a Presidential-level
Federal  Managers' Financial
Integrity Act weakness to an
Agency-level one.
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993

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       Profile  of Activities  and  Results
    Environmental  Protection Agency
    Office  of  Inspector General
                                   April 1,1993, to
                               September 30,1993    Fiscal 1993
                                      (dollars in millions)
                                                             April 1,1993, to
                                                          September 30,1993      Fiscal 1993
                                                                    (dollars in millions)
Audit Operations


OIG Managed Reviews:

-  Reviews Performed by EPA, Independent
  Public Accountants and State Auditors
  - Questioned Cos\s(Ineligible, Unsupported,
    and UnnecessaryAJnreasonable)'
   - Total                                    $211.1
   - Federal Share                             $143.6
- Recommended Efficiencies
   (Funds be Put to Better Use)'
   - Total                                     $33.1
   - Federal Share                              $33.1

  - Cost Disallowed to be Recovered
   - Federal Share (costs which EPA
     management agrees are unallowable
     and is committed to recover or
     offset against future payments)                  $45.5
  - Cost Disallowed as Cost Efficiency
   - Federal Share (funds made available
     by EPA management's commitment to
     implement recommendations in  OIG
     performance and preaward audits)                $0.0
Other Reviews:

-  Reviews Performed by another Federal Agency
   or Single Audit Act Auditors
  - Questioned Costs
   - Total                                      $1.6
   - Federal Share                               $1.6
  - Recommended Efficiencies
   -  Total                                      $14.0
   -  Federal Share                               $13.7

  - Cost Disallowed to be Recovered
  - Federal Share                                $3.3
  - Cost Disallowed as Cost Efficiency
  - Federal Share                                $7.6

Agency Recoveries:
             $380.6
             $270.6
              $56.4
              $46.0
              $73.4
               $3.3
               $6.7
               $6.0

              $17.5
              $17.2
               $4.8

               $9.7
              Reports Issued:

              - OIG Managed Reviews:
               - EPA Reviews Performed by the OIG              71
               - EPA Reviews Performed by Independent Public
                 Accountants and State Auditors                  74

              - Other Reviews:
               - Single Audit Act Reviews                      500
               - EPA Reviews Performed
                 by another Federal Agency                    206

              Total Reports Issued                            851
                           Reports Resolved (agreement by Agency officials
                           to take satisfactory corrective action)'"           265
              Investigative Operations

               - Fines and Recoveries (including civil)            $ 7.3
               - Investigations Opened                        161
               - Investigations Closed                         160
               - Indictments of Persons or Firms                  23
               - Convictions of Persons or Firms                  16
               - Administrative Actions Against EPA
                 Employees                                  17
              Fraud Detection and Prevention Operations

               - Determents. Suspensions, and
                   Compliance Agreements                     69
               - Hotline Cases Opened                         46
               - Hotline Cases Processed and Closed              43
               - Personnel Security Investigations Adjudicated      385
  141

  118


  975

  338

1.572




  487
$20.5
 286
 297
  29
  22

  35
  106
  82
  74
  840
-  Recoveries from Audit Resolutions of
  Current and Prior Periods (cash collections
  or offsets to future payments)"
$23.7
$43.1
    'Questioned Costs and Recommended Efficiencies are subject to change pending further review in the audit resolution process.
    "Information on recoveries from audit resolution is provided from the EPA Financial Management Division and is unaudited.
    '"Reports resolved are subject to change pending further review.
                                                                                                      OFFICE OF INSPECTOR GENERAL

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   Establishment  of the  OIG in EPA-lts Role And  Authority
The Inspector General Act of
1978 (Public Law 95-452), as
amended, created Offices of
Inspector General to
consolidate existing
investigative and audit
resources in independent
organizations headed by
Inspectors General.

EPA established its Office of
Inspector General (OIG) in
January 1980. As an agency
with a massive public works
budget, EPA is vulnerable to
various kinds of financial
abuses.  The OIG's role is to
review EPA's financial
transactions, program
operations, contracts, and
administrative activities;
investigate allegations or
evidence of possible criminal
and civil violations; and
promote economic, efficient,
and effective Agency
operations. The OIG is also
responsible for reviewing EPA
regulations and legislation.

The EPA Inspector General
reports directly to the
Administrator and the
Congress and has the
authority to:

•  Initiate and carry out
independent and objective
audits and investigations,
•  Issue subpoenas for
evidence and information,
•  Obtain access to any
materials in the Agency,
•  Report serious or flagrant
problems to Congress,
•  Select and appoint OIG
employees,
•  Fill Senior Executive Service
positions,
•  Administer oaths,  and
•  Enter into contracts.

The Inspector General is
appointed by, and can be
removed only by, the
President. This independence
protects the OIG from
interference by Agency
management and allows it to
function as the Agency's fiscal
and operational watchdog.

Organization and
Resources

The Office of Inspector
General functions through
three major offices, each
headed by an Assistant
Inspector General: Office of
Audit, Office of Investigations,
and Office of Management.
Nationally, there are eight
Divisional  Inspectors General
for Audit and seven Divisional
Inspectors General for
Investigations who direct staffs
of auditors and investigators
and who report to the
appropriate Assistant Inspector
General in Headquarters.

For fiscal  1993, the Agency
was appropriated
$6,892,400,000 and authorized
17,917 full time equivalent
(FTE) positions to conduct the
environmental programs
authorized by Congress to
restore and protect the
environment. As a separate
appropriation account, the
Office of Inspector General
(OIG) received $42.8 million to
carry out the  provisions of the
Inspector General Act of 1978,
as amended. Nearly $15
million of the  OIG's
appropriation was derived from
the Hazardous Substance
Superfund trust fund and
$610,000 was derived from the
Leaking Underground Storage
Tank trust fund.  The OIG has
a funded staffing level of 414
FTE positions. The funding
and FTE available to the OIG
represent 0.6 percent and 2.3
percent, respectively, of the
Agency's totals.
Purpose and
Requirements of the
Office of Inspector
General Semiannual
Report

The Inspector General Act of
1978 (Public Law 95-452), as
amended, requires the
Inspector General to keep the
Administrator and Congress
fully and currently informed of
problems and deficiencies in
the Agency's  operations and to
recommend corrective action.
                The IG Act further specifies
               that semiannual reports will be
               provided to the Administrator
               by each April 30 and October
               31, and to Congress 30 days
               later. The Administrator may
               transmit comments to
               Congress along with the
               report, but may not change
               any part of it.

                 The specific reporting
               requirements prescribed in the
               Inspector General Act of 1978,
               as amended, are listed below.
   Source                                 Section/Page
   Inspector General Act, as amended.
   Section 4(a)(2)

   Section 5(a)(1)


   Section 5(a)(2)



   Section 5(a)(3)



   Section 5(a)(4)


   Section 5(a)(5)


   Section 5(a)(6)

   Section 5(a){7)

   Section 5(a)(8)


   Section 5(a)(9)



   Section 5(a)(10)



   Section 5(a)(11)


   Section 5(a)(12)
Review of Legislation and Regulations     4     31

Significant Problems, Abuses, and
Deficiencies                       1     9

Recommendations with Respect to
Significant Problems, Abuses, and
Deficiencies                       1     9

Prior Significant Recommendations on
Which Corrective Action Has Not
Been Completed             Appendix 2     50

Matters Referred to Prosecutive
Authorities                         3     27

Summary of Instances
Where Information Was Refused         *      *
List of Audit Reports           Appendix 1     37

Summary of Significant Reports          1      1

Statistical Table 1-Reports With
Questioned Costs                   2     25
Statistical Table 2-Reports With
Recommendations That Funds Be Put
To Better Use                      2     25
Summary of Previous Audit
Reports Without Management
Decisions
                         Appendix 2     50
Description and Explanation of Revised
Management Decisions         Appendix 2

Management Decisions with Which the
Inspector General Is in Disagreement    "
50
                                  * There wore no instances whore Information or assistance requested
                                  by the Inspector General was refused during this reporting period.

                                  " There wen no Instances of management decisions with which the
                                  Inspector General was in disagreement.
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993

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                                 Office of Inspector General-Who's Who
        Headquarters
                                        Inspector General
                                        John c. tturtin

                                        Deputy Inspector General
                                        Anna Hopkins Vixbick
         Office of Audit

         Kenneth A. Konz
         Assistant Inspector General

         Jam* O.  Raucn
         Deputy
Office of
John C. Jbnee
Assistant Inspector General
             Acquisition & Assistance
                 Audits
             KLissa R. Karpf

             Internal and Perf ormance
                 Audits
             Michael 0. Simons

             Planning and Resources
                 Management
             Kenneth D.
 1
                            Offloe of Investigations

                            Daniel 8. nuesney
                            Assistant Inspector General
                                 Deputy
I Program Management Division
John T. mi»h

Resources Management Division
Michael J. Binder
              Qrgineeering & Science
              water 6. Gilbert

              ADP Audits & Support
              Craig Silwrthon*
Divisional Inspectors General
                    n
Regions 9 & 10
Truman R. Beeler,
Audit

H. Brooks Griffin
Investigations
             Region 5
             Anthony C. Carrollo, Audit

             Region 5, 7, & 8
             Allen P. Fallin, Investigations
                              Regions 7 & 8
                              Nikki Tinsley, Audit
                                                            Regions 4 & 6
                                                            Mary Boyer, Audit
                                                            Lorraine Gentile, Acting,
                                                            Investigations
                                                  Region 1 & 2
                                                  Paul McKechnie Audit
                                                  Robert M Bynes
                                                  Investigations


                                                  Region 3
                                                  Paul R Gardolfo Auc!'.
                                                  Martin Squitien
                                                  Investigations
                                                       Headquarters
                                                       Edward G«»
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   Section 1  - Significant Problems, Abuses and Recommendations
 As required by sections 5(a-
 )(1) and (2) of the Inspector
 General Act of 1978, as
 amended, this section iden-
 tifies significant problems,
 abuses, and deficiencies
 relating to the Agency's
 programs and operations
 along with recommendations
 for the current period. The
 findings described in this
 section resulted from audits
 and reviews performed by or
 for the Office of Audit and
 reviews conducted by the
 Office of Investigations.
 Because these represent
 some of our most significant
 findings, they should not be
 considered representative of
 the overall adequacy of EPA
 management.  Audit findings
 are open to further review
 but are the final position of
 the Office of Inspector
 General.  This section is
 divided into five areas:
 Summary of Audit Activities
 and Results, Agency
 Management, Construction
 Grants, Superfund, and
 Special Reviews.
Summary of Audit
Activities and
Results
              Questioned Costs And Recommended
              Efficiencies By Type of Assignment
            Construction
            Superfund
                                              Other
  lF«d«ral QuMttorwd
INOO F«d«ral QuMtioned • Pectoral Share Rao. EH BNon Ftd ftac. EH.
                 Source Of Reviews
                         Areas Of Effort By Staff  Days
                   Other Federal
                   Agencies - 206
         State
         Auditors
         15
              I PA
              Firms - 59
                                            EPA - 71
                                           LUST-
                                           Performance
                                           161
                                 "MGT-     I M<3T-
                                  Financial  \ Performance^
                                  5484     15,270
                                              SF-
                                              Performance-^
                                              3,132
                                                               LUST
                                                               Financial
                                                               71
                                                        \
                                                     SF - Financial
                                                     6,681
                 Total - 851  Reviews
                                Total - 20,799  Days
APRIL 1,1993 THROUGH SEPTEMBER 30, 1993

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Agency
Management
The Inspector General Act
requires the OIG to initiate
reviews and other activities
to promote economy and
efficiency and to detect and
prevent fraud, waste, and
mismanagement in EPA
programs and operations.
Internal and performance
audits and reviews are
conducted to accomplish
these objectives largely by
evaluating the economy,
efficiency, and effectiveness
of operations.

The following are the most
significant internal and
performance audit  and
review findings and
recommendations reported
by the OIG during this
semiannual  period.
EPA's Decisions to
Reduce Risks of
Registered Pesticides
Need More Public
Involvement

Problem

Special reviews of registered
pesticides which might
cause unreasonable adverse
health and environmental
effects took too long.  As a
result, EPA frequently began
to negotiate with the
registrants to reduce the
risks  of such pesticides
quickly, but without
assurance of public
involvement.

Background

Pesticides must be registered
with EPA before manufacturers
may market them.  If EPA
finds that a registered
pesticide may cause
unreasonable adverse health
and environmental effects, the
Office of Pesticide  Programs
(OPP) may conduct a special
review to help the Agency
determine whether to initiate
procedures to cancel or
reclassify its registration.

We Found That

After many years of criticism
by Congress and the public
over the length of the special
review process, OPP
recognized a need to reduce
the time it takes to review
potentially hazardous
pesticides. As  a result, OPP
began to use alternatives to
the special review process
more  frequently, especially
negotiation of risk reductions
with registrants. However, the
opportunity for  public
involvement was lessened
since  OPP had not developed
guidelines to ensure public
involvement emphasized in the
special review process.
OPP averaged 5 years to
complete most special reviews.
Delays occurred for various
reasons, some of which were
outside OPP's control, such as
the extensive time registrants
needed to complete studies
requested by OPP and the
complexity of scientific and
policy issues.  Lengthy special
reviews may prolong  exposure
to unnecessary risks.
Establishing specific time
frames for completing special
reviews of individual pesticides
would help OPP manage the
process and determine
whether the pesticide poses an
unreasonable  risk.

Since 1988, OPP had not
formally started a special
review because OPP (1) had
few controls over when it
places pesticides in the special
review process and (2)
frequently takes action on a
problem pesticide in other
ways, including negotiations
with the registrants as
discussed above, issuing a
notice to cancel its registration,
and conducting public
hearings. However, when
OPP does not place pesticides
in special review, pesticides
which may cause adverse
effects can remain on the
market without OPP taking
action to  reduce those effects.

What Action Was Taken

In responding to the draft
report, the Acting Assistant
Administrator  for Prevention,
Pesticides and Toxic
Substances agreed to take
actions which, if properly
implemented,  will substantially
resolve our findings.  The
Acting Assistant Administrator
agreed that OPP will develop
guidelines for negotiating risk
reduction actions with the
registrants, including options
for public participation.
Although the Acting Assistant
Administrator  also agreed that
guidelines were needed for
initiating special reviews of
potentially harmful pesticides,
OPP could not commit
resources to the project at this
time.  The final report
(3100256) was issued to the
Acting Assistant Administrator
on July 22, 1993.

Better Controls Needed
Over EPA Narragansett
Laboratory's Contracts
and Assistance
Agreements

Problem

EPA's Environmental
Research Laboratory,
Narragansett, Rhode Island,
(ERL-N) did not have
effective management
controls to ensure that
pertinent laws, regulations,
and Agency policies were
satisfied in awarding and
administering contracts,
cooperative agreements, and
interagency agreements. As
a result, the Laboratory's
management could  not be
assured that extramural
funds were used in  the best
interest of the Agency.

We Found That

ERL-N's  lack of management
controls over its contracts and
assistance agreements
resulted in the following
prohibited and improper
procurement and contract
management actions.

• Gave the Appearance of
Favoritism to Incumbents in
Awarding Follow-on Contracts.
ERL-N tailored requests for
proposal requirements,
changed the contracting
method, and underestimated
the maximum contract value to
avoid competition and ensure
awards to the incumbent firms
10
                                                                                       OFFICE OF INSPECTOR GENERAL

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• Misused EPA Research
Contracts, Cooperative
Agreements, and Interagency
Agreements.  ERL-N misused:
(1) operating funds from the
research and development
appropriation for materials and
supplies used by a contractor
to prevent the contractor from
exceeding its authorized
budget, (2) an interagency
agreement to fund foreign
nationals' travel without
appropriate approval, and (3)
funds to support a day care
center which exceeded the
scope of a cooperative
agreement.

• Improperly Managed the
Work and Activities of Its
Contractors.  ERL-N allowed
contract employees to perform
inherently governmental
functions and did not monitor
contractor work in process.

• Questionable Procurements
from Imprest Fund. The
laboratory's imprest fund was
improperly used to make
purchases from family
members of laboratory
employees and an on-site
contractor-employee owned
firm and repetitive purchases
for services that could have
more appropriately been
procured other ways, such  as
under a blanket purchase
agreement.

• Lack of Enforcement of
Agency Time and Attendance
Regulations and Policies.
Laboratory managers did not
ensure that all Agency time
and attendance regulations
and policies were enforced.
As a result, there were
instances found of several
employees receiving
"unofficial" compensatory time
and subsequently charging
that time  as opposed to official
leave.

We Recommended That

The Acting Assistant
Administrator for Research and
Development direct the
Narragansett Laboratory
Director to:

• Instruct all staff on the
importance of the integrity of
the Agency's procurement
system and establish clear
lines of accountability over the
procurement process within
the Laboratory.

• Appoint qualified project
officers to ensure that all work
performed by contractors is
authorized in accordance with
applicable laws, regulations,
and EPA policies and
directives, and within the
contract's statement of work.

• Satisfy the  requirements of
all laws and  regulations that
relate to the  proper use of
research and development
funds, adherence to the
Agency's time and attendance
requirements, and imprest fund
utilization.

What Action Was Taken

In responding to our draft
report, the Acting Assistant
Administrator for Research and
Development agreed with our
recommendations and
provided substantive planned
or already initiated actions
which, when implemented, will
resolve our findings. The final
report (3100236) was issued to
the Acting Assistant
Administrator on June  16,
1993.
EPA Needs Reliable
Information on the
Production of Ozone-
Depleting Chemicals

Problem

EPA did not have adequate
information to monitor
properly the production of
carbon tetrachloride and did
not document its reviews of
international trades of
chlorofluorocarbons (CFC)
production allowances. In
addition, the Agency did not
have a system to monitor
exports of ozone-depleting
chemicals.

Background

To comply with the Clean Air
Act and the Montreal Protocol,
an international agreement to
protect the ozone layer, EPA
was required to reduce the
amount of carbon tetrachloride
produced in the United States.
Depletion of the ozone layer
by this chemical has adverse
health effects, such as the
increased incidence of skin
cancers. To reduce
production, EPA established
baseline allowances for
producers that permitted them
to make carbon tetrachloride in
succeeding years, but in
quantities less than the
amount produced in 1989.
The Montreal Protocol also
restricted the trading of
chlorofluorocarbons (CFC)
production allowances and the
exporting of ozone-depleting
chemicals.

We Found That

Based on inadequate
information concerning
producers' 1989 production,
EPA knowingly established
flawed baseline allowances
that were used in 1991 and
1992 to measure reductions in
the production of  carbon
tetrachloride.  EPA was under
stringent time constraints to
establish the baselines (the
Clean Air Act Amendments of
1990 required EPA to issue
regulations for carbon
tetrachloride by January 1991).
However, the Agency should
have developed interim
baselines for the first year until
it could gather adequate 1989
data to establish a more
reliable basis for phasing out
the production of the chemical.

EPA did not adequately
document reviews of
international trades of CFCs
and their impacts on the
United States. For example,
EPA approved four
international trades for one
producer involving the export
of allowances for
approximately 21 million
kilograms of CFCs without
adequately documenting its
reviews for economic hardship,
as well as trade and
environmental impacts.
Moreover, EPA had not
adequately documented the
rationale  used to approve the
trades.

The Agency did not have a
system to monitor exports of
ozone-depleting chemicals.
Without a monitoring system,
EPA cannot be sure that the
United States exported only to
authorized countries in
accordance with the Montreal
Protocol.

We Recommended That

The Acting Assistant
Administrator for Air and
Radiation:

•  Establish accurate, verifiable
baselines for other ozone-
depleting chemicals to be
phased out.

•  Strengthen  controls to
ensure more thorough and
effective documentation for
reviews of international trades
of CFC allowances.

•  Implement a monitoring
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                             11

-------
system to make sure that
United States companies
export ozone-depleting
chemicals only to authorized
countries.

What Action Was Taken

In discussions subsequent to
issuance of the draft report,
the Agency orally agreed to
implement our
recommendations.  The final
report (3100384) was issued to
the Acting Assistant
Administrator for Air and
Radiation on September 24,
1993. A response is due by
December 23,  1993.

Stronger Enforcement
Actions Needed
Against Small  Water
Supply Systems

Problem

EPA Region 1 and the States
of Vermont and New
Hampshire did not take
timely and effective
enforcement actions against
small public water supply
systems which violated Safe
Drinking Water Act (SDWA)
requirements. Without
compliance with the SOWA,
the quality and safety of the
drinking water was
questionable.

Background

Health and environmental
officials have become
increasingly concerned over
potential long-term health
effects associated with
manmade chemicals found in
drinking water. Many of these
contaminants have been linked
to birth defects, waterborne
diseases, cancer, and other
serious health problems. The
1974 SDWA, as amended,
requires EPA to set national
limits on contaminant levels in
drinking water and provides
the Agency enforcement
authority.
    /- *
   S
                                               «*»
Citizens depend on government to ensure that drinking water is
not hazardous (photo by Steve Delaney).
We Found That

Although the majority of the
nation's population is served
by large public water supply
systems, most systems are
small and have the largest
number of violations.  From a
sample of 29 public water
supply systems with  the most
serious and chronic violations,
the Region or the States had
not issued final enforcement
actions for 10 systems that
had been in significant
noncompliance and needing
priority enforcement action for
at least 6 months. The Region
and States took from 9 months
to over 2 years to execute final
enforcement orders to correct
violations by 8 other systems
in our sample.  Some violators
had not been in compliance for
10 or more years before the
Region or States  initiated
appropriate enforcement
action. The remaining 11
systems in the sample had
either returned to compliance
with the standards or an
enforcement action had been
taken within 6 months of the
discovery of the violation.
Generally, the Region took 2
to 5 months from the discovery
date to issue Notices of
Violation. Vermont and New
Hampshire were in the process
of defining their enforcement
programs. The Region is
responsible for ensuring that
States have strong
enforcement programs. Both
the Region and the States
stated that staffing shortages
prevented them from taking
more actions.

Region 1 did not maintain
complete data in its
administrative order milestone
tracking system or document
whether a water system
satisfied its milestones.
Without an adequate tracking
system or documentation, the
Region does not know which
systems to pursue corrective
actions against or have
support for judicial or
administrative action.

We Recommended That

The Acting Regional
Administrator, Region 1:

• Issue Notices of Violation
within 30 days of discovery of
the violation.

• Establish procedures which
will assure escalation and
completion of enforcement
action in accordance with
EPA's May 22, 1990, guidance
memorandum.

• Incorporate EPA's escalation
policy into State workplans
and evaluate State
performance against these
workplans.

• Include all data required by
EPA's guidance on tracking
milestones into the Region's
tracking system.

•  Maintain adequate
documentation supporting
water system compliance with
administrative order
milestones.

What Action Was Taken

In responding to the draft
report, the Region generally
disagreed with our
conclusions, stating among
other things that it believed
enforcement actions are timely
and questioning whether
appropriate criteria were
applied in determining
noncompliance.  However, the
Region reported that it is
revising its administrative orde
tracking system and is
obtaining supporting
documentation of
administrative order
milestones. The final audit
12
                                                                                        OFFICE OF INSPECTOR GENERAL

-------
 report (3100291) was issued to
 the Acting Regional
 Administrator, Region 1, on
 July 30,  1993. A response to
 the final report is due by
 October 29, 1993.
 Audits of EPA's
 Financial Statements
 Show Need for
 Improvements in
 Agency Accounting
 Systems and Controls

 Problem

 Key weaknesses in EPA's
 accounting systems and
 controls affected the
 reliability of the Agency's
 fiscal 1992 financial
 statements. Without
 adequate systems and
 controls, EPA cannot fully
 rely on the financial
 information used to manage
 the Agency's funds and
 programs or be assured that
 its assets are properly
 safeguarded.

 Background

 The Chief Financial Officers
 (CFO) Act requires EPA to
 prepare financial statements
 for its revolving funds, trust
 funds, and commercial
 activities.  The fiscal 1992
 financial statements for the
 Superfund and LUST Trust
 Funds, the Asbestos Loan
 Program, and the Pesticides
 Revolving Funds were the first
 prepared by EPA to meet the
 CFO Act requirements.

We Found That

 With respect to the fiscal 1992
 financial statements for the
 Superfund and LUST Trust
 Funds and the Asbestos Loan
 Program:

• The Superfund Trust Fund
financial records had to  be
adjusted to decrease assets by
 $57.5 million, decrease
 liabilities by $499.3 million, and
 increase equity by $441.8
 million due to weaknesses in
 EPA's accounting system and
 a lack of effective controls to
 identify and correct errors. For
 the LUST Trust Fund,
 adjustments of $4.7 million
 were necessary to decrease
 liabilities and increase equity.

 • Nine Superfund accounts
 receivable totaling $5.8 million
 out of a sample of 38
 receivables totaling $13.8
 million were not recorded
 timely in EPA's accounting
 system.  For the nine
 receivables, an average of 77
 days elapsed from the time the
 amount owed EPA was
 finalized until it was recorded
 in EPA's accounting system.
 Untimely recording of
 receivables impedes  EPA's
 ability to ensure that all monies
 due EPA are collected.

 • EPA does not have an
 integrated property system
 with complete historical cost
 data and other information
 needed to support all
 capitalized property reported in
 the Agency's financial
 statements.

 • EPA did not  have an
 adequate method for
 determining the costs incurred
 under signed agreements with
 states to share in the cost of a
 Superfund site cleanup so that
 recorded receivables  and
 corresponding deferred
 revenue could be properly
 liquidated.

 • Accrued liabilities for
 Superfund interagency
 agreements were improperly
 recorded using a methodology
that did not reflect actual
services performed by the
supplying agency. As a result,
an adjustment of $486 million
was needed to correct an
overstatement of the accrued
liabilities related to these
agreements. In addition, EPA
 was not always properly
 recording unpaid grant
 drawdowns as accounts
 payable or accrued liabilities.

 • Superfund costs of $17.5
 million were charged to the
 Salaries and Expense
 appropriation even though
 Superfund monies were
 available. In addition,
 $391,000 and $13,000 of
 building repairs and alterations
 were charged to the Superfund
 and LUST Trust Funds,
 respectively, although  funds
 were available to the Agency
 under a separate appropriation
 to cover such costs.

 With respect to the fiscal 1992
 financial statements for the
 Pesticides Revolving Funds:

 •  EPA made 25 unsupported
 adjustments totaling $181.3
 million and $21.2 million,
 respectively, to the Federal
 Insecticide, Fungicide, and
 Rodenticide Act (FIFRA) and
 Tolerance Fund general
 ledgers during fiscal 1992. As
 a result, we could not
 determine whether or not the
 Statements of Financial
 Position for the two funds were
 fairly presented.

 •  Property purchased  with
 FIFRA funds was not properly
 capitalized because the
 Agency's capitalization
 procedures did not identify all
 such property and program
 office personnel assigned
 incorrect object class codes  to
 procurement documents.
 Neither the property
 accountability system  nor the
 Agency's accounting system
contained  sufficient information
to account for property. As a
 result, we  were unable to audit
the FIFRA property, plant, and
 equipment balance of
$574,000.

 • The Office of Pesticide
 Programs  (OPP) did not
complete timely annual
inventories of property as
 required, document property
 transfers, and always record
 property in the EPA's property
 accountability system. Without
 these key internal controls,
 OPP lacked reasonable
 assurance that property was
 adequately safeguarded
 against loss.

 •  During fiscal 1992, OPP did
 not completely review its
 unliquidated obligations of
 $345,588 for which there was
 no activity during the year,
 missing an opportunity to
 identify no-year FIFRA funds
 that could have been
 deobligated and made
 available to fund other critical
 pesticides reregistration
 activities.

 •  Fees collected for
 processing raw agricultural
 commodity tolerance petitions
 under Section 408 of the
 Federal Food, Drug and
 Cosmetic Act did not cover
 EPA's costs.  During fiscal
 1992, EPA collected $1.2
 million for processing these
 petitions while the Agency's
 cost was about $3.5 million.
 Further, the reviews required
 by the CFO Act that would
 have identified this  shortfall
 were not performed.

 Due in  part to these problems,
we disclaimed opinions on the
financial statements for the
 Superfund Trust Fund and the
 Pesticides Revolving Funds
 and qualified or disclaimed our
opinions on financial
 statements of the LUST Trust
 Fund and the Asbestos Loan
 Program.

We Recommended That

The Acting  Chief Financial
Officer:

 With respect to the financial
statements for the Superfund
and LUST Trust Funds and the
Asbestos Loan Program:
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
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• Develop a report to provide
trial balances at the level
required for external reporting
purposes.

• Develop procedures for
calculating state cost shares to
properly recognize earned
revenue as cleanup services
are performed.

• Ensure that regional offices
are consistently following the
year-end closing procedures
for recording accounts payable
and accrued liabilities.

• Obtain an opinion from the
Office of General Counsel on
whether EPA had authority
during fiscal  1992 to use
Superfund and LUST funds for
building repairs and
alterations.

With respect to the financial
statements for the Pesticides
Revolving Funds:

• Emphasize current guidance
on preparing adequate
documentation to support
financial transactions.

• Ensure that quarterly
reconciliations are performed
of the FIFRA and Tolerance
Fund general ledger balances
and program office records.

• Revise the  Agency's property
capitalization policy.

• Conduct the required reviews
of EPA's fees and make
appropriate changes in the
fees.

The Acting Assistant
Administrator for Prevention,
Pesticides and Toxic
Substances:

• Perform the required  reviews
of unliquidated obligations.

• Ensure that internal controls
are in place and followed to
safeguard and account for
property.
What Action Was Taken

In responding to the draft
reports, the Acting Chief
Financial Officer generally
agreed with the reports'
findings and many of the
recommendations.  She
provided action plans with
target dates  for completing
corrective actions.  The final
reports (3100264, 3100265)
were issued on June 30, 1993,
to the Acting Chief Financial
Officer.  The final report on the
Pesticides Revolving Funds
was also issued to the Acting
Assistant Administrator for
Prevention, Pesticides and
Toxic Substances.  In its
October 25,  1993, responses
to the final reports, the Agency
stated that it agreed in
principle with our
recommendations, is taking
appropriate actions,  and, in
some cases, has already
completed several milestones
in its corrective action plan.
Regions 1  and 8 Need
to Improve Their
Implementation of the
Federal  Managers'
Financial Integrity Act
(FMFIA)

Problem

Regions 1 and 8 had  not
properly identified,
documented, and evaluated
their management and
financial controls.  As a
result, the Regions could
not ensure that they were
protecting and managing
their resources effectively
and efficiently to accomplish
their missions.

We Found That

Regions 1  and 8 had not
properly or completely
assessed their vulnerability to
waste, fraud, and abuse;
developed management
control plans that fully
identified the major activities;
prepared meaningful event
cycle documentation; or
performed adequate control
reviews.  Insufficient training
and inadequate headquarters
guidance appear to be the
underlying causes of these
weaknesses.  Regional
managers did not show a full
understanding of the
importance of maintaining
current, documented controls
and of integrating FMFIA
activities  into day-to-day
operations. Competing
priorities  hindered execution of
their FMFIA duties. Managers
often viewed the FMFIA
process as a paperwork
exercise rather than as a
systematic means of ensuring
that they  accomplished the
work more effectively and
efficiently and operated their
programs to achieve Agency
goals.

Regions 1 and 8 managers did
not properly identify high risk
areas.  In some cases,
managers rated the overall risk
of assessable units instead of
the vulnerability of programs
and functions within the units.
Managers did not assess  risks
associated with organizational
and legislative changes.  For
example, Region 1
reorganized three divisions to
implement the Clean Air Act
Amendments of 1990 and the
Oil Pollution Act of 1990, but
did not perform  vulnerability
assessments of the new
organization.

Although  Regions 1 and 8 had
reported weaknesses in past
assurance letters, the
weaknesses were not
identified through the FMFIA
process.  In 1992, for example,
Region 8 reported six such
new weaknesses, one of which
involved accounts receivable
with which it had experienced
problems since  1989.
Similarly, Region 1  managers
reported 49 weaknesses in
1991 and 1992, but only one
was identified through the
FMFIA process.  As a result,
the Region could not be sure
that it had identified all
weaknesses. For example,
Region 1 managers were
aware of problems in
establishing Superfund
accounts receivable since
1990, but did not report them
to the Administrator or properly
assess the extent of the
weakness.  Accordingly, the
Region could not be sure that
its Superfund accounts
receivable were accurate and
established timely.

We Recommended That

The Acting Regional
Administrators, Region 1 and
Region 8, improve
administration of FMFIA and
tie it more closely to daily
program management by:

• Requiring managers to use
vulnerability assessments of
programs and functions to
strengthen control objectives
and techniques.

• Requiring managers to
ensure that control
documentation is current and
to schedule control evaluations
based on results of
vulnerability assessments.

• Requiring managers to plan
and conduct their own reviews
to evaluate and test
documented controls.

• Incorporating management
control responsibilities into  all
appropriate performance
agreements, providing
comprehensive training, and
appraising managers'
performance in implementing
performance and financial
controls.

What Action Was Taken

In responding to the draft
report, Region 1 generally
concurred with our findings
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 and recommendations and
 agreed to implement full
 corrective actions by 1996.
 The Region 8 response to the
 final report is due by
 November 24,  1993.  The
 Acting Assistant Regional
 Administrator for Policy and
 Management, Region 8,
 disagreed with our findings but
 later agreed to implement
 some of the recommendations.
 The final audit reports
 (3100322 and 3100326) were
 issued to the Acting Regional
 Administrators, Region  1 and
 Region 8, on August 23, 1993,
 and August 24, 1993,
 respectively.
 EPA's Cash
 Reconciliation
 Procedures Need
 Improvement

 Problem

 EPA did not routinely
 reconcile its general ledger
 balances with its financial
 reports and balances
 maintained by the
 Department of the Treasury.
 As a result, there have been
 differences of millions of
 dollars between EPA and
 Treasury records that have
 been unreconciled since
 1989.

 Background

 The purpose of the
 reconciliation process is to
 ensure the accuracy of cash
 records maintained by the
 Agency and Treasury. The
 process also provides a check
 and balance between Treasury
 and EPA to help support the
 accuracy of disbursements and
 collections processed during
 any given month.

 We Found That

 EPA has experienced
 problems in reconciling cash
 for several years.  The U.S.
 General Accounting Office
 cited weaknesses  in the
 Agency's reconciliation
 process during fiscal years
 1986 and  1987 when  several
 million dollars of unreconciled
 differences led to material
 misstatements  in the Agency's
fiscal year 1987 financial
statements.  In 1989, the
 Agency converted its Financial
 Management System to the
 Integrated Financial
 Management System.  Errors
during downloading to the new
system caused cash
differences in fiscal years 1989
and 1990.  The Agency has
reported these  errors as a
 material nonconformance in
annual Federal Managers'
Financial Integrity Act reports
since 1989.

Also, the Agency's procedures
for preparing monthly SF-224
reports on collection and
disbursement activities to
Treasury provide for the
accounting offices to modify
the reports to balance with
Treasury figures.  Because the
Agency is reporting from
Treasury records, Treasury is
unable to determine if any
differences exist.  This
procedure prevents Treasury
from monitoring any cash
differences and contacting the
Inspector General if
differences remain for a
prolonged period of time.
Monthly differences that
remained uncorrected
eventually led to year-end
cash differences.  At the end
of fiscal years 1991 and 1992
unresolved differences totaled
about $16.8 million and $3
million, respectively.  Further,
lack of training and detailed
procedures applicable to the
new accounting system
contributed to the  current cash
reconciliation problems.

We Recommended  That

The Acting Chief Financial
Officer:

•   Dedicate sufficient resources
to resolve unreconciled
differences from fiscal years
1989 through  1992.

•   Require the Financial
Management Division to
perform quality reviews of the
reconciliation process.

•   Revise applicable
procedures and provide
training for personnel
responsible for reconciling
cash.

What Action Was Taken

In responding to the draft
report, the Acting Chief
Financial Officer agreed with
our recommendations and
provided corrective action
plans.  The final audit report
(3100391) was issued to the
Acting Chief Financial Officer
on September 29, 1993.  A
response to the final report is
due by December 29, 1993.
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Construction
Grants
EPA's wastewater treatment
works construction grants and
State Revolving Fund (SRF)
programs are the largest
programs the Agency
administers. Under the
provisions of Public Law
92-500, as amended, the
Agency was authorized to
make construction grants
covering 55 percent and, in
some instances, up to 85
percent of the eligible costs of
constructing wastewater
treatment facilities.  During this
semiannual period, $204
million was obligated on 13
new construction grant awards
and 159 increases to existing
grants.  As of September 30,
1993, there were 2,139 grants
involving $16.3 billion which
were potentially subject to
audit. Of this total, there were
412 active construction grants,
representing $3.7 billion in
Federal obligations.

Amendments to the
construction grants program
are covered in Title II of the
Water Quality Act of 1987.
Section 212 created a new
Title VI in the Clean  Water Act,
which addresses the process
of phasing out the construction
grants program by providing
incentives for development of
alternative funding
mechanisms by the States.
The new Title VI charges EPA
with developing and
implementing a program to
provide grants to capitalize
State revolving funds for
financing wastewater projects.
During this semiannual period,
$1.7 billion was awarded for
46 continuation SRF grants.
As of September 30, 1993,
EPA had obligated $8.5 billion
to 50 States and Puerto Rico
under the State Revolving
Fund program.
Nearly $104 Million of
Questioned Costs
Claimed for New York
City Projects

Problem

The City of New York
claimed $41,632,671 of
ineligible architectural
engineering, construction,
force account, and
innovative and alternative
technology costs. An
additional $62,365,878 of
unsupported and
unreasonable costs were
questioned.

We Found That

EPA awarded 17 grants
totaling nearly $1.3 billion to
the New York City Department
of Environmental Protection for
the design and construction of
the North River and Red Hook
wastewater treatment facilities.
The grantee claimed
$41,632,671 of ineligible costs
under the grants including:

• $24,348,903 of architectural
engineering fees which
exceeded the New York State
Department of  Environmental
Conservation (NYSDEC),
approved contract amounts,
were allocable to other grants,
were related to ineligible
construction, or were incurred
after the approved construction
contract completion dates;

• $8,610,354 of construction
costs related to a sludge
treatment plant with innovative
and alternative technology;

• $3,903,278 of construction
costs related to understated
deductions for change orders,
costs previously declared
ineligible by NYSDEC,
unapproved change orders,
unpaid retainage, and a credit
change order not deducted
from the amount claimed;
• $2,932,302 of construction
force account costs which
exceeded the indirect costs
claimed or were allocable to
the ineligible portion of the
construction project;

• $877,445 of relocation costs
attributable to sewer rights-of-
way, sanitary  landfill sites, and
sludge disposal areas which
are not allowable under EPA
regulations;

• $780,101 of construction
costs attributable to
unapproved portions of the
construction project; and

• $180,288 of design costs
which exceeded the approved
grant amount;

We also questioned
$40,256,461 of unsupported
costs, including construction
costs for cost overruns which
exceeded approved amounts
and unreviewed change
orders.  Additionally, we
questioned $22,109,417 of
claimed costs as unnecessary
or unreasonable for among
other things, one project's
laboratory  had not been used
and its computerized control
room was  not operating as
planned and the other project's
computerized process control
distribution system was not
operational.

We Recommended That

The Acting Regional
Administrator, Region 2, not
participate in the Federal share
of  ineligible costs
($28,796,610), determine the
eligibility of the Federal share
of  unsupported costs and
unnecessary and
unreasonable costs
($45,251,094), and recover the
applicable amount from the
grantee.

What Action  Was Taken

The final audit reports
(3100169 and 3100374)) were
issued to the Acting Regional
Administrator, Region 2, on
April 29, 1993, and September
14, 1993, respectively. A
response to the first report
(3100169) was due July 28,
1993.  However, Region 2
expects to issue the final
determination letter by March
1994.  A response to  the
second report (3100374) is
due by December 14, 1993.
Springfield, Oregon,
Claimed $9.2 Million of
Ineligible and
Unsupported Costs

Problem

The Metropolitan Wastewater
Management Commission
(MWMC), Springfield,
Oregon, claimed $2,511,772
of ineligible administrative,
engineering, insurance, and
construction costs.  An
additional $6,657,189 of
unsupported project costs
were questioned.

We Found That

EPA awarded 19 grants
totaling $104.8 million to
MWMC for the design and
construction of a regional
wastewater treatment system
to serve the Eugene and
Springfield metropolitan areas.
We questioned $2,511,772 of
the costs included in the
grantee's final claim as
ineligible, including:

• $2,195,491  of administrative,
construction, and engineering
costs which were outside the
scope of the approved project;

• $181,830 of costs allocable
to the ineligible portion of the
construction project;

• $107,481 of insurance
premium refund which was not
credited to the grant;

• $14,596 of costs related to
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premium refund which was not
credited to the grant;

- $14,596 of costs related to
unallowable easements and
permits; and

• $12,374 of repairs and
replacement considered to be
normal grantee operation and
maintenance functions.

Additionally, we questioned
$6,657,189 of costs as
unsupported because the
claimed costs were not
substantiated by adequate
source documentation.

We Recommended That

The Acting Regional
Administrator, Region 10, not
participate in the Federal share
of ineligible costs ($1,914,853),
determine the eligibility of the
Federal share of unsupported
costs ($5,085,843), and
recover the applicable amount
from the grantee.

What Action Was Taken

The final audit report
(3300077) was issued to the
Acting Regional Administrator,
Region  10, on  September 30,
1993. A response to  the audit
report is due by December 29,
1993.
San Diego claimed over $9 million in ineligible costs to repair this
outfall pipe (photo by OIG staff).
More Than $9.2 Million
of San Diego,
California, Project
Costs Questioned

Problem

The City of San Diego,
California, claimed
$9,084,891 of ineligible
construction, engineering,
and administrative costs.
An additional $122,810 of
unsupported project costs
were questioned.

We Found That

On February 3,  1992, the City
of San Diego learned that an
ocean outfall, a 2-mile  long
pipeline for disposing of
treated sewage at the Point
Loma wastewater treatment
plant, had broken about 3,000
feet from shore.  The break
was allowing over 170  million
gallons of partially treated
sewage to be discharged daily
in about 35 feet of water.  The
City claimed $9,084,891 of
ineligible costs under a grant
which EPA awarded, 4 days
after the break was
discovered, to repair the ocean
outfall, including:

•  $8,500,000 of construction,
engineering, and other costs
incurred because the grantee
did not credit the grant with
insurance proceeds which it
received to make the required
repairs to the outfall; and

• $584,891 of construction
costs due to a conflict of
interest as a result of common
ownership of the prime
contractor and subcontractor
responsible for the outfall
repair,  a relationship which
violated procurement
regulations.

We also questioned $122,810
of construction costs as
unsupported, pending the
grantee reconciliation of these
costs to invoices.

We Recommended That

The Acting  Regional
Administrator, Region 9, not
participate in the Federal share
of ineligible costs ($4,996,690),
determine the eligibility of the
Federal share of unsupported
costs ($67,546), and recover
the applicable amount from the
grantee.

What Action Was Taken

The interim audit report
(3300072) was issued to the
Acting  Regional Administrator,
Region 9, on September 29,
1993.  A response to the
report is due by December 28,
1993.
Baltimore, Maryland,
Claimed $9.2 Million of
Questioned Costs

Problem

The City of Baltimore
claimed $6,590,945 of
ineligible architectural
engineering, construction,
administrative, and
equipment costs.  An
additional $2,581,473 of
unsupported costs were
questioned.

We Found That

EPA awarded two grants to
the City of Baltimore to
construct a large diversion
sewer system and sludge
handling and disposal facilities
for the  Patapsco Wastewater
Treatment Plant. The grantee
claimed $6,590,945 of
ineligible  costs under the
grants, including:

•  $4,002,140 of construction
costs that exceeded eligible
as-bid amounts and change
orders;

•  $1,552,817 of administrative
and engineering costs which
were incurred after the grant
cutoff date and therefore
considered outside  the
project's scope;

•  $652,704 of architectural
engineering fees claimed in
excess of the contract ceiling;
and

•  $383,284 of miscellaneous
costs which were applicable  to
ineligible  portions of the
project; associated with a
possible litigation
determination concerning
compliance with contract
provisions; and for redesign
and extra work requested by
the grantee.

We also questioned
$2,581,473 of costs that were
not supported by either
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                             17

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invoices or by the expenditure
report.

Wa Recommended That

The Acting Regional
Administrator, Region 3, not
participate in the Federal share
of ineligible costs ($4,943,209),
determine the eligibility of the
Federal share of unsupported
costs  ($1,936,105), and
recover the applicable amount
from the grantee.

What  Action Was Taken

The final reports (3300049 and
3300050) were issued to the
Acting Regional Administrator,
Region 3, on May 27, 1993
and May 28,  1993,
respectively.  Responses to
the reports due by August 25
and August 26, respectively,
had not been received as of
October 28, 1993.
Over $5.8 Million of
Questioned Costs
Claimed for Las
Virgenes, California,
Project

Problem

The Las Virgenes Municipal
Water District (LVMWD)
claimed ineligible
construction, engineering,
and administrative costs of
$5,091,815 for construction
of a wastewater treatment
plant. An additional
$757,976 of unreasonable
project costs were
questioned.

We Found That

EPA awarded seven grants to
LVMWD totaling $22,276,578
for construction of a
wastewater treatment system.
The grantee claimed
$5,091,815 of ineligible costs
under the grant, including:

• $2,289,573 of construction
costs for excess capacity in
sludge handling facilities;

• $1,078,979 of engineering
and construction costs for
activities which were outside
the scope of the approved
project;

• $840,265 of engineering
costs not substantiated by the
accounting system;

• $647,791 of administrative
and engineering costs which
exceeded approved amounts;
and

• $42,564 of construction
costs which were not incurred
by the grantee.

In addition, we identified
interest of $192,643 earned on
an overpayment which was not
credited to the grant.  We also
questioned $757,976 of costs
as unreasonable, including
$412,445 of  excess
construction  management
costs and $345,531 for design
fees  associated with a filtration
system which was not a part of
the approved project.

We Recommended That

The Acting Regional
Administrator, Region 9, not
participate in the Federal share
of ineligible costs ($3,818,863),
determine the eligibility of the
Federal share of unreasonable
costs ($568,480), and recover
the applicable amount from the
grantee.

What Action Was Taken

The final audit report
(3300080) was issued to the
Acting Regional Administrator,
Region 9, on September 30,
1993.  A response to the audit
report is due by December 29,
1993.
Salisbury,
Massachusetts,
Claimed Nearly $3.6
Million of Ineligible
Costs

Problem

The Town of Salisbury,
Massachusetts, claimed
$3,581,518 of ineligible
engineering,  construction,
administrative, and other
costs for the design and
construction of a secondary
wastewater treatment plant
and interceptor sewers.

We Found That

EPA awarded a grant to the
Town of Salisbury for design
and construction of a
secondary wastewater
treatment plant, four pump
stations, a force main, and
interceptor sewers.  The
grantee claimed $3,581,518 of
ineligible costs under the
grant, including:

• $1,521,226 of construction
costs claimed which exceeded
eligible bid items and
miscellaneous costs not
allowed by the Massachusetts
Bureau of Municipal Facilities
(MBMF);

• $829,336 of project
management  and
administration services costs
of the consulting engineer
which exceeded the amounts
established in the grant award;

• $571,008 of design costs,
basic engineering fees, and
project inspection fees which
exceeded grant allowances,
were for activities beyond the
approved project's scope, or
were incurred before the start
of construction or after the
approved project completion
date;

• $373,491 of survey,
administrative, and  other
engineering costs which
pertained to activities outside
the scope of the project;

• $146,642 of basic fees and
projection inspection fees
resulting from application of a
different eligibility factor by the
MBMF and the grantee; and

• $139,815 in legal fees
disallowed by MBMF and
claimed costs of acquiring land
for the treatment plant that
exceeded the amount
established by MBMF on the
basis of several independent
appraisals.

We Recommended That

The Acting  Regional
Administrator, Region 1, not
participate in the Federal share
of ineligible costs ($1,969,835)
and recover the applicable
amount from the grantee.

What Action Was Taken

The final audit report
(3100255) was issued to the
Acting Regional Administrator,
Region 1, on June 21,  1993.
Region 1 advised the grantee
on October 1, 1993, that it
agreed with our findings.
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Superfund Program
 The Superfund program was
 created by the Comprehensive
 Environmental Response,
 Compensation, and Liability
 Actof1980(CERCLA). The
 Act provided a $1.6 billion trust
 fund to pay for the costs
 associated with the cleanup of
 sites contaminated with
 hazardous waste.  Taxing
 authority for the trust fund
 expired on September 30,
 1985. For more than a year,
 the Superfund program
 operated at a reduced level
 from carryover funds and
 temporary funds provided by
 Congress.

 On October 17,  1986, the
 Superfund Amendments and
 Reauthorization Act of 1986
 (SARA) was enacted.  It
 provided $8.5 billion to
 continue  the program for 5
 more years and made many
 programmatic changes. On
 Novembers, 1990, the
 Omnibus Budget
 Reconciliation Act of 1990 was
 enacted,  authorizing
 appropriations for 3 additional
 years and extension of the
 taxing authority for 4 years.

 The parties responsible for the
 hazardous substances are
 liable for cleaning up the site
 or reimbursing the Government
 for doing so. States in which
 there is a release of hazardous
 materials are required to pay
 10 percent of the costs of
 Fund-financed remedial
 actions, or 50 percent if the
 source of the hazard was
 operated by the State or local
government.

 The enactment of SARA
 increased the audit
 requirements for the Inspector
 General.  In addition to
providing a much larger and
 more complex program for
 which the OIG needs to
 provide audit coverage, SARA
 gave the Inspector General a
 number of specific
 responsibilities. Mandatory
 annual audit areas include:

 • Audit of all payments,
 obligations, reimbursements,
 or other uses of the Fund;

 • Audit of Superfund claims;

 • Examination of a sample of
 agreements with States
 carrying out response actions;
 and

 • Examination of remedial
 investigations and feasibility
 studies.

 The Inspector General is
 required to  submit an annual
 report to the Congress
 regarding the required
 Superfund audit work,
 containing such
 recommendations  as the
 Inspector General deems
 appropriate. The sixih annual
 report,  covering fiscal 1992,
 was issued on  September 7,
 1993.

 Reported Superfund
Accomplishments
Questioned

Problem

 Data in the Comprehensive
Environmental Response,
Compensation, and Liability
Information System
(CERCLIS), EPA's Superfund
management information
system, was not always
reasonable and accurate.
Some accomplishments
claimed for fiscal 1992 in
Regions 5,  8, 9, and 10 were
invalid.

We Found That

Of the 650 accomplishments
reviewed by us from the
universe of  1,901
accomplishments claimed in
Regions 5, 8, 9, and 10, 192
accomplishments, or nearly 30
percent of our sample, were
not valid.  The claimed
accomplishments were
questioned because (1) the
accomplishment definitions
were not met, (2) support
documents could not be
located, (3) they were claimed
twice, (4) they were claimed in
the wrong fiscal year, or (5)
they were data entry errors.

The errors in reporting accom-
plishments were generally
caused by weak internal
controls, including failures to
(1) adequately train personnel,
(2) provide written policies and
procedures, (3) adequately
document events, (4) correctly
record and properly classify
events, and (5) authorize and
approve transactions at the
appropriate level of authority.
Definitions of accomplishments
were unclear and thus open to
interpretation. Finally,
CERCLIS was not included by
any of the regions reviewed as
part of the Federal Managers'
Financial Integrity  Act (FMFIA)
process.  Although the causes
of the weaknesses varied from
region to region, the overall
cause may have been
inadequate management
attention to the creation and
enforcement of internal
controls.

Finally, some of the
accomplishments we reviewed
were also performance
measures listed in the
Agency's fiscal 1992 financial
statements. With respect to
the performance measure for
construction completions, the
Agency did not disclose a
change in the definition in the
financial statements. The
inadequate disclosure resulted
in an inaccurate comparison of
construction completions
achieved in fiscal 1992 to
those reported prior to fiscal
1992.  Using the new
definition, the Agency claimed
at least 27 more construction
completions in fiscal 1992 than
it would have using the
previous definition.

We Recommended That

The Acting Assistant
Administrator for Solid Waste
and Emergency Response
review and appropriately
expand Superfund
Comprehensive
Accomplishments Plan training
to include  additional
information about
accomplishment definitions
and reporting procedures and
encourage the Regions to:

 • Participate more fully in the
process for developing future
definitions of accomplishments.

 • Issue regional policies and
procedures for entering data
into CERCLIS where presently
undocumented, and send them
to Headquarters for review for
consistency with national
policy;

 • Develop a review process to
ensure that all
accomplishments are
adequately supported by
source documentation;

 • Establish delegation of
authorities for approval of data
for input into CERCLIS;

 • Ensure that reported
accomplishments meet the
accomplishment definition; and

 • Include CERCLIS data entry,
accuracy, and integrity as an
event cycle in all regions'
FMFIA processes.

What Action Was Taken

In responding to the draft
report, the Agency generally
agreed with our
recommendations and is taking
some corrective actions.  The
final report (3100392) was
issued to the Acting Assistant
Administrator for Solid Waste
and Emergency Response on
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                           19

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September 29, 1993.  A
response to the final report is
due by December 29,  1993.
Improperly Classified
Superfund Costs May
Affect Recovery From
Responsible Parties
(RP)

Problem

Some Superfund cleanup
costs were improperly
charged to accounts for
accumulating costs of
assessing whether Federal
action was needed rather
than to specific site
accounts or general program
accounts.  As a result, costs
charged to RPs for Agency
cleanup and enforcement
activities may be inaccurate.

We Found That

In Regions 3, 6, and 7,
$1,601,200, or 39 percent of
reviewed costs charged to
accounts for assessing the
need for Federal action at
sites, should have been
charged to specific site
accounts or general program
accounts.  Of that amount,
$540,800 of site specific costs
were incorrectly recorded in
the site assessment accounts
and may not be recovered
from RPs. On the other hand,
including these site specific
costs in the site assessment
accounts could inflate the
indirect cost rate, resulting in
other RPs paying EPA more
than their fair share of incurred
cleanup costs.

Further, because Agency
policy was unclear,
$1,060,400, or 26 percent of
the reviewed costs, were
improperly included in the site
assessment accounts rather
than the general program
accounts.  As a result, RPs
could be asked to repay EPA
incorrect amounts for the
Agency's cleanup efforts,
depending on whether the
Agency's current or proposed
method is used to calculate
the indirect cost rate.  Finally,
$552,300, or 13 percent of the
reviewed costs, were mixed
with non-site specific accounts
and questioned costs so that a
determination could not easily
be made of how much should
have been charged to the site
assessment accounts.

Under EPA's proposed method
of calculating the indirect cost
rate, costs in the site
assessment accounts will be
included in the  indirect cost
pool. The Agency assesses a
number of sites without taking
cleanup or enforcement action.
These costs, which exceeded
$66 million in 1992, are
material enough that they
should be recovered from RPs.

We Recommended That

• The Acting Assistant
Administrator for Solid Waste
and Emergency Response
emphasize to Superfund
program officials that costs be
properly accumulated in site
assessment accounts.

• The Acting Assistant
Administrator for
Administration and Resources
Management clarify the
guidance on which costs
should be charged to each of
the three types of Superfund
accounts.
What Action Was Taken

The final audit report
(3100266) was issued to the
Acting Assistant Administrator
for Solid Waste and
Emergency Response and the
Acting Assistant Administrator
for Administration and
Resources Management on
July 2,  1993. In its October 5,
1993, response to the report,
the Agency agreed with our
recommendations and
provided a plan to implement
corrective actions that had not
been completed.
20
                                                                                        OFFICE OF INSPECTOR GENERAL

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Special Reviews
This section of our
semiannual report describes
the results of significant and
potential findings,
deficiencies, and
recommendations which
have been identified through
evaluations, analyses,
projects, and audits.  These
reviews are narrowly
focused studies of programs
or activities providing
management a timely,
informative, independent
picture of operations.
Special reviews are not
statistical research studies
or detailed audits. Rather,
they are information
gathering studies designed
to quickly identify issue
areas for management
attention.
 Parts of Yosemite
 National Park Remain
 Seriously Polluted from
 Leaking Underground
 Storage Tanks

 Problem

 Neither the National Park
 Service (NPS) nor  its
 concessioner had  cleaned
 up any of 44 leaking
 underground storage tank
 (LUST) sites in Yosemite
 National Park, California,
 many of which had been
 discovered more than 7
 years ago. Thirteen of these
 sites affected groundwater.

 We Found That

 The  NPS's concessioner had
 not been required to promptly
 clean up 26 sites which it had
 contaminated in Yosemite
 National Park, including 12
 sites which affected
 groundwater.  Although many
 of the contaminated sites were
 discovered more than 7 years
 ago,  the concessioner had not
 met time frames established
 by the State of California for
 investigating and cleaning up
 the high-priority sites. Further,
 neither Region 9, the State
 Water Resources Control
 Board, the State's Central
 Valley Regional Water Quality
 Control Board (the Regional
 Board), or the counties
 responsible for oversight had
 put the concessioner under an
 enforcement order to clean up
 its sites, even though it had
 not complied with California's
 requirements.

 Because  of the concessioner's
significant delays in  cleaning
 up the sites and the pending
 expiration of its concession
contract, the OIG issued a
 Flash Report on December 2,
 1992, recommending that the
concessioner be placed under
an enforcement order. In
response to our report, the
 Regional Board issued
Cleanup-and-Abatement Order
92-715 to the concessioner on
December 16, 1992. This
order identified the
concessioner as the primary
responsible party for site
cleanup and established
cleanup requirements.  Our
subsequent review showed
that the concessioner had not
adequately complied with the
terms of the cleanup-and-
abatement order. As a result,
the concessioner had not
initiated remedial action at all
of its groundwater
contaminated sites by
September 30, 1993, when its
concessioner ownership
contract expired.

We also found that the NPS
had missed deadlines
established by the Regional
Board for cleaning up 18  LUST
sites for which NPS was
responsible,  sometimes by
over 1 year.  Further, one
contaminated site had not
been investigated because
both NPS and the
concessioner disavowed any
responsibility.

We Recommended That

The Acting Regional
Administrator, Region 9:

•  Assure that the State fully
enforces the terms of the
Cleanup-and-Abatement Order
with the concessioner and
initiate EPA enforcement
action, if the State order is not
fully enforced.

•  Require that the NPS be
placed under an enforceable
cleanup order and monitor its
compliance with provisions of
the order.

What Action Was Taken

In responding to a position
paper on the results of our
review, the Director,
Hazardous Waste
Management Division, Region
9, advised us that EPA and
the State of California planned
to actively monitor and enforce
activities to assure that the
enforcement order is followed.
The final special review report
(3400086) was issued to the
Acting Regional Administrator,
Region 9, on September 14,
1993. Subsequent to the
issuance of the final report,
Region 9 stated that it has
taken extensive actions.  For
example, the Region stated
that it has completed work on
11 sites, is actively
remediating another five sites,
and has removed three sites
from the affected groundwater
list. Also, the Region stated
that although work has not
been completed in a timely
manner in the past, it is now
progressing according to
negotiated timetables and that
progress towards cleanup of
sites has improved
significantly. A response to
the final report is due by
December 13, 1993.
                                                                                          Improper Use of
                                                                                          Intergovernmental
                                                                                          Personnel Act
                                                                                          Agreements and
                                                                                          Extramural Resources

                                                                                          Problem

                                                                                          During the last 5 years, the
                                                                                          Office of Cooperative
                                                                                          Environmental Management
                                                                                          (OCEM) had not properly
                                                                                          managed its use of
                                                                                          Intergovernmental Personnel
                                                                                          Act (IPA) assignments,
                                                                                          cooperative agreements,
                                                                                          interagency agreements
                                                                                          (IAG), contracts, and
                                                                                          consultants.

                                                                                          We Found That

                                                                                          Four IPA assignments funded
                                                                                          by OCEM did not fully comply
                                                                                          with Agency requirements for
                                                                                          such assignments. None of
                                                                                          the assignments is for the
                                                                                          mutual benefit of the
                                                                                          participating organizations (two
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                         21

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provide staff to OCEM and two
place OCEM staff elsewhere),
as envisioned by the I PA.
Further, the two employees
from other organizations do
not meet the qualifications for
an IPA assignment.

In addition, for 5 years, OCEM
has used lAGs to obtain
logistical and consultant
services from  Delta Research
Corporation (Delta).  This
allowed OCEM to avoid
competing its  requirements.
From 1989 to 1992, OCEM
paid $1.4 million to the United
States Air  Force under an  IAG
to obtain the services of Delta,
and, for fiscal 1993, OCEM
and other EPA program offices
paid $959,750, including a
service charge of almost
$96,000, to the Tennessee
Valley Authority (TVA) under
another IAG to continue its use
of Delta.

Despite having been told by
EPA's Office of General
Counsel (OGC) and the Grants
Administration Division in May
1992 that cooperative
agreements are not the proper
mechanisms for obtaining
support for Federal functions
and offices, OCEM
subsequently used such an
agreement with the Center for
International Environmental
Law-U.S. (CIEL) to obtain
support. Although CIEL's
proposal for the cooperative
agreement did not address
direct support for the National
Advisory Council for
Environmental Policy and
Technology's (NACEPT) Trade
and Environment Committee,
documentation showed the
agreement has been used for
that purpose.  CIEL provided
direct support to the
Committee and to OCEM by
paying for  an administrative
assistant and by providing
design, production, oversight,
and articles for the
Committee's report.  Further,
in the fall of 1992, OCEM
improperly began using TVA's
cooperative agreement with
Delta to support NACEPT.

OCEM staff improperly
selected consultants or
subcontractors to work for
Delta.  In addition, OCEM staff
had Delta perform prohibited
functions. Some
subcontractors and consultants
provided  personal services by
working under the direct
supervision of OCEM
managers, performing
predominantly Federal
functions. OCEM staff used
the Delta contract to
improperly pay travel costs for
NACEPT members and to
exceed the contract's scope by
creating two nonprofit
organizations.  While being
funded by OCEM through the
Delta contract,  a consultant
developed the concepts for
these organizations, including
in one case, providing office
space and preparing the grant
proposal.  These nonprofit
organizations were then
awarded  assistance
agreements funded by OCEM.

OCEM improperly used
experts and consultants when
it hired an individual who we
believe did not meet the
criteria for employment as a
consultant. This individual,
who  is now president of the
Management Institute for
Environment and Business
(MIEB), was closely involved
with  establishing MIEB while
employed by OCEM as a
consultant. When he worked
for OCEM, he also worked for
Delta performing like
consultant services.  The
former OCEM Director knew
about his employment with
Delta, as well as his interest in
future employment with MIEB.
In allowing this consultant to
not only work for Delta while
under an EPA consultant
agreement, but to work on
projects so similar that it is
impossible to determine who
paid  for what, OCEM
abdicated its supervisory and
financial responsibilities and
encouraged a potential conflict
of interest.

We Recommended That

The Acting Assistant
Administrator for
Administration and Resources
Management:

• Terminate OCEM's four IPA
assignments and review IPA
approval procedures to
determine whether additional
steps should be taken to
ensure that IPA assignments
meet the intent of the Act.

• Provide training to OCEM
managers on the appropriate
uses of assistance
agreements, procurements,
and interagency agreements
and perform periodic reviews
of OCEM's management of
contracts and assistance
agreements.

• Seek a written  legal opinion
from OGC on whether EPA
can create nonprofit
organizations and, if allowed,
establish the proper funding
mechanisms and procedures
for creating  them.

• Phase out the use of TVA
for support of NACEPT and
seek the return of unused
funds.
What Action Was Taken

In response to our draft report,
Agency officials: terminated
the two IPAs under which staff
was provided to OCEM;
provided contract and
assistance agreement training;
requested a legal opinion from
OGC on the creation of
nonprofit entities; and have not
awarded any new lAGs to TVA
or added any funds to the
existing lAGs after concluding
that five lAGs with TVA under
the Technology Brokering
Program may be improper.
The final report (3400094) was
issued to the Deputy
Administrator on September
30,  1993. A response  to the
final report is due by
December 29, 1993.
22
                                                                                        OFFICE OF INSPECTOR GENERAL

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   Section 2  --  Report Resolution
 As required by the Inspector
 General Act, as amended,
 this section contains
 information on reports in the
 resolution process for the
 semiannual period. This
 section also summarizes
 OIG reviews of the Agency's
 followup actions on selected
 reports completed in prior
 periods. In addition,
 information is presented on
 the resolution of significant
 reports issued by the OIG
 involving monetary
 recommendations.

 In 1982, the Off ice of
 Management and Budget
 (OMB) revised  Circular A-
 50, Audit Followup, noting
 that swift corrective action
 by Federal managers after
 Inspectors General detect
 waste and mismanagement
 is a basic method to save
 taxpayers' money. The
 circular defines timely action
 as total resolution of reports
 within 180 days of issuance.
 However, that  has not been
 the case at EPA.
Our analysis of unresolved
audits at EPA from
September 30, 1990, through
September 30,1993, shows
a disturbing trend.  While
the number of audit reports
requiring resolution
averaged 310 at the end of
each 6-month period, the
number with  past due
management decisions as of
those dates increased from
19 percent to 30 percent.
Some months the overdue
unresolved reports
increased to  50 percent
before dropping at the end
of a semiannual period due
to EPA management's
extraordinary efforts to
reduce the number for
reporting purposes.

In addition, during the 3-year
period, almost half of the
final management decisions
were not made within 180
days.  At different times
throughout this period,
Agency managers had not
provided the  Office of
Inspector General
     any response to between 32
     percent and 38 percent of
     the outstanding reports until
     more than 180 days had
     etapsed since their issuance.

     Further, nearly 40 percent of
     the reports for which
     responses were past due as
     of September 30,1993,
     contained questioned costs,
     representing 75 percent of
     all questioned costs to be
     resolved as of that date.  Of
     these questioned costs,
     $270 million were ineligible
     costs that are likely to be
     sustained for recovery.
     These reports need to be
     resolved and the misspent
     dollars recovered more
     expeditiously.

     Agency officials provide
     individual explanations why
     resolution has been delayed
     as well as projected
     resolution dates (see
     appendix 2). These
     explanations raise issues of
     the complexity of audit
     resolution, state delegation
                      for resolution, and the
                      changing mix of types of
                      audits.

                      EPA has participated with
                      the OIG in the Total Quality
                      Management approach to
                      revising the EPA Directive
                      2750, Management of EPA
                      Audit Reports and Followup
                      Actions, to comply with
                      proposed changes to OMB
                      Circular A-50. A revised
                      directive will be issued for
                      Agency review during fiscal
                      1994. The changes
                      incorporate the Inspector
                      General Act Amendments of
                      1988 definitions and clearly
                      define responsibilities for
                      audit resolution. Also, EPA
                      has recently improved its
                      report resolution process.
                      The number of overdue
                      unresolved reports
                      decreased 31 percent from
                      146 at the end of the last
                      semiannual reporting period
                      to 100 as of September 30,
                      1993. However, more action
                      is needed.  Agency officials
                      at all levels must make audit
                      resolution a top priority.
Status Report On Perpetual Inventory of Reports in Resolution Process For The Semiannual Period Ending September 30,
1993 (Dollar Values in Thousands)
A, For which no management decision has been
   made by the commencement of the
   reporting period*

B. Which were issued during the reporting period

C. Which were issued during the reporting period
   that required no resolution

   Subtotals (A + B - C)

0. For which a management decision was made during
   the reporting period
           Number



            326

            851



            581

            596


            265
                                                              Report Issuance

                                                      Questionad   Recommended
                                                          Costs    Efficiencies
                                                              Report Resolution
                                                              Costs Sustained
                                                            To Be      As
                                                          Recovered     Efficiencies
B.  For which no management decision has been made by
   the end of the reporting period                   331
   Reports for which no management decision was
   made within six months of issuance
                                          100
485,524


145,355



   119


630,760



156,644



474,115



334,776
131,585


 46,845



 26,295


150,135



108,133



 42,001



 31,085
                                                            48,785
7,606
   * Any difference in number of reports and amounts of questioned costs or recommended efficiencies between this report and our previous semiannual report results from
   corrections made to data in our audit tracking system.
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                          23

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Audit Followup
The Inspector General Act
Amendments of 1988 requires
Agency management to report
semiannually,  in a separate
report to Congress, the
corrective actions taken in
response to the IG's  reviews.
The Office of Inspector
General reviews the Agency's
followup actions on selected
reviews. Below is a summary
of one of these reviews.

Considerable
Improvements Made In
SITE Demonstration
Program, But
Additional  Actions Still
Needed

Previous Problems  and
Findings

Our March 1990 report
concluded that the
Superfund Innovative
Technology Evaluation
(SITE) Demonstration
Program was seriously
hindered by problems
locating sites and issuing
reports on completed
projects.  We reported that:
(1) the difficulties in locating
sites to demonstrate
technology were due to the
reluctance of Superfund
regional officials to
participate in the program
and rejection of sites by
technology developers, (2)
serious delays in issuing
final reports  meant EPA
regional officials were not
notified timely about
demonstration results, (3)
contractor cost controls
were  inadequate, and (4)
technology developers were
discouraged  from
participating  in the program
by high demonstration costs
and a lack of Federal
funding assistance.
Followup Findings

While EPA has made a variety
of improvements to the SITE
program, some corrective
actions agreed to in the
Agency's action plan have
either not been implemented
or have not corrected the
deficiencies noted in our 1990
report.

First, a systematic approach to
matching technologies to sites
has not been developed.
Rather than addressing high
priority Superfund sites and
soliciting technologies to
confront the waste at these
sites,  EPA continues to accept
technologies into  the SITE
program and then search for
appropriate sites to conduct
the demonstrations. As a
result, the program is
experiencing lengthy delays in
conducting demonstrations
once the developers are
accepted.

Second, the evaluation reports,
which are the  most important
means of disseminating
information regarding SITE'S
innovative technologies, are
not consistently meeting
reporting time frames set by
SITE management.

Third, concerns over ensuring
adequate contractor
performance and cost control
need to be re-addressed.  In
1990, two  major SITE
evaluation contracts were
reawarded. Under these new
contracts the amount of the
award fee pool was increased.
However, while the award fee
amount increased, the method
used to evaluate  contractor
performance did  not change.
As a result, the award fee
dollars paid by EPA tripled
without EPA receiving
equivalent improvements in the
work performed by the
contractors.

Finally, while CERCLA allows
for Federal assistance to
technology developers, EPA
has not relayed information to
developers on how to receive
such assistance.  As a result,
some otherwise promising
technologies may not be
demonstrated.

Followup Recommendations

We recommended that the
Acting Assistant Administrator
for Research and
Development:

• Explore the possibility of
entering Federal Facility
Agreements under which
testing and evaluation facilities
could be established for the
SITE program.

• Disallow an equitable portion
of the contractors' award  fees
for those work assignments
where services (such as report
preparation) do not  meet  the
specifications set by SITE
management.

• Clearly define the criteria
and weight assigned to each
of the award fee criteria, in
order to evaluate performance
definitively.

• Change the award fee
structure so that the available
award fee will not be directly
related to the level of effort
expended for each  award
period because that
encourages the contractors to
use as many hours as possible
to increase the available fee.

• Require SITE management
to establish and implement
policies and procedures for
conducting SITE
demonstrations.

We also recommended that
the Acting Assistant
Administrator for  Solid Waste
and Emergency Response
work with the SITE
 management to develop  a
systematic approach for
 identifying sites which could  be
 used for SITE demonstrations.
What Action Was Taken

In responding to the draft
report, the Agency generally
agreed with our findings and
recommendations and agreed
to implement corrective
actions.  The final audit report
(3400096) was issued to the
Acting Assistant Administrator
for Research and Development
and the Acting Assistant
Administrator for Solid Waste
and Emergency Response on
September 29, 1993.  A
response to the final report is
due by December 29, 1993.
 24
                                                                                        OFFICE OF INSPECTOR GENERAL

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 Status of
 Management
 Decisions on IG
 Reports

 This section presents statistical
 information as required by the
 Inspector General Act
 Amendments of 1988 on the
 status of EPA management
 decisions on reports issued by
 the OIG involving monetary
 recommendations.  In order to
 provide uniformity in reporting
 between  the various agencies,
 the President's Council on
 Integrity and Efficiency issued
 guidance on reporting the
 costs under required statistical
 tables of sections 5(a)(8) and
 (9) of the Act,  as amended.

 As presented,  information
 contained in Tables  1 and 2
 cannot be used to assess
 results of reviews performed or
 controlled by this office. Many
 of the reports counted were
 performed by other Federal
 auditors or independent public
 accountants under the Single
 Audit Act. EPA OIG staff does
 not manage or control such
 assignments.  In addition,
 amounts shown as costs
 questioned or recommended to
 be put to better use contain
 amounts  which were at the
 time of the review unsupported
 by adequate documentation or
 records.  Since auditees
 frequently provide additional
 documentation to support the
 allowability of such costs
 subsequent to report issuance,
 we expect that a high
proportion of unsupported
costs will not be sustained.

EPA OIG controlled reports
resolved during this period
resulted in $51.4 million being
sustained out of $69.9 million
considered ineligible  in reports
under OIG control. This is a
 73 percent sustained rate.
Questioned Unsupported
Costs* Costs
485,524
145,236
630,760
156,644
48,785
107,859
474,115
334,776
90,531
58,070
148,601
25,874
8,987
16,887
122,727
64,681
 Table 1 - Issued Reports With Questioned Costs for 6-month Period Ending 9/30/93
 (see NOTE below)
                                                          Dollar Values(thousands)

                                                Number

 A. No management decision made by 4/1/93                    140

 B. New Reports issued during period                           96

   Subtotals (A + B)                                       236

 C. Management decision made during the reporting period          90

   (i)  Dollar value of disallowed costs                          74

   (ii) Dollar value of costs not disallowed"                      62

 D. No management decision made by 9K30/93                   146

   No management decision made within six months of issuance      57


 •Questioned costs include the unsupported costs.
 "On 17 reports management did not sustain any of the $8,798,874 questioned costs. Forty-one reports are also included in C(ii)
 because they were only partially sustained.  Only the costs questioned that were not sustained in C(i) are included in this
 category.
Table 2 -- Issued Reports With Recommendations That Funds Be Put To Better Use for
6-Month Period Ending 9/30/93 (see NOTE below)
                                                            Dollar Value
A. No management decision made by 4/1/93

B. Reports issued during the period

   Subtotals (A + B)

 C. Management decision made during the period
   (i) Dollar value of recommendations that
      were agreed to by management

    -  based on proposed management action

    -  based on proposed legislative action

   (ii) Dollar value of recommendations that were not
      agreed to by management

   (iii) Dollar value of non-awards or unsuccessful
      bidders

 D. No management decision made by  9/30/93

   No management decision made within six months of issuance
16'


 13

 48

 13
 57,077



43,450"

 42,001

 31,085
'Three of the reports were the same reports in items C(i) and C(ii). Only the related dollars disallowed were included in C(i),
whereas the dollars which were not disallowed were included in C(ii).

"This amount represents the dollar value of recommendations that funds be put to better use.

NOTE: Any difference in number of reports and amounts of questioned costs or recommended efficiencies between this report
and our previous semiannual report results from corrections made to data in our audit tracking system.
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                    25

-------
Resolution of Significant Reports





Report Issuance
Report Number
Report Date
E2CWMO-02-0275
3200003
REPORT DATE
11/17/92
E2CWMO-02-0300
3200010
REPORT DATE
2/22/92
E2CWM1-02-0010
3200013
REPORT DATE
1/28/93
E2CWM1-02-0018
3200002
REPORT DATE
ll/ 2/92
E2CWM1-02-0087
3200043
REPORT DATE
3/29/93
D8APL3-03-0223
3100240
REPORT DATE
6/16/93
D9BFL2-03-0184
3100086
REPORT DATE
1/26/93
N3HVK2-03-0528
3500477
REPORT DATE
3/30/93
P2CWM9-03-0363
3200041
REPORT DATE
3/25/93
P2CWNO-03-0104
3300013
REPORT DATE
2/10/93
P2CWNO-03-0412
3300005
REPORT DATE
11/10/92
E2CWN1-04-0417
3300006
REPORT DATE
11/23/92
E5BKN1-04-0290
2300045
REPORT DATE
3/26/92

P2CWNO-04-0392
3300011
REPORT DATE
2/ 4/93
Or»ntee/
Contractor
FALLSBURG
NY


TRI-
MUNICIPAL
SEWER DIST.

THOMPSON NY



PAWLING JT
SEWER NY


SAUGERTIES
NY


NCI
INFORMATION
SYSTEM

COMPUTER
SCIENCES
CORP VA

BALTIMORE
MD


BALTIMORE
MD


PARKERSBURG
WV


ALLEGANY CY
SANI DIST
MD

GARNER NC



N. CAROLINA
STATE UNIV.



ORLANDO FL



PS Questioned/
Recommended
Report
Resolution
Federal snare
to be
Efficiency
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM
INEL
UNSP
UNUR
RCOM

INEL
UNSP
UNUR
RCOM
2, 495


1,649



958
4


1,534



688
170





5,462
891



2,372



779
30


1,856



378
1,678


479
2,375


854
654



2,914,



, 355
0
0
0
,932
0
0
0
,042
,642
0
0
,439
0
0
0
,654
,607
0
0
0
0
0
,832
,556
0
0
0
,761
0
0
0
,784
,949
0
0
,114
0
0
0
,702
,345
0
0
,707
,049
0
0
,863
,164
0
0

127
0
0
0
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST

INEL
UNSP
UNUR
SUST
Recovered/
Sustained
Efficiency
2, 493


1,640



958
4


1,534



688
170





5,462
891



2,372



779
23


1,856



378
1,675


479



783
38



2,914,



,845
0
0
0
,018
0
0
0
,042
,642
0
0
,439
0
0
0
,654
,607
0
0
0
0
0
,832
,556
0
0
0
,761
0
0
0
,784
,782
0
0
,114
0
0
0
,702
,669
0
0
,707
0
0
0
,663
,883
0
0

127
0
0
0
Report Number
Report Date
P2BWPl-Ob-03b7
2400064
REPORT DATE
8/18/92
P2CWNO-05-0032
2300074
REPORT DATE
9/ 4/92
P2CWP8-05-0026
1400038
REPORT DATE
9/ 9/91
H8ABL3-09-0112
3100176
REPORT DATE
5/ 5/93
P2BWLO-09-017S
1100436
REPORT DATE
9/30/91
S2CWN1-09-0217
3300051
REPORT DATE
6/ 1/93
S2CWN9-09-0171
1300120
REPORT DATE
9/30/91
S5BG*8-09-0202
0300037
REPORT DATE
3/30/90
S5BGNO-09-0303
2300043
REPORT DATE
3/13/92
P2CW*7-10-0046
1200039
REPORT DATE
9/30/91
P9AHP1-23-0313
1400035
REPORT DATE
9/ 6/91
P9AHP2-23-0306
2400058
REPORT DATE
7/23/92


NOTE : INEL
UNSP
UNUR
RCOM
SUST


Report Issuance
PS Questioned/
Grantee/ Recommended
Contractor Efficiency
MILWAUKEE INEL 2,385,191
MSD WI UNSP 2,128,006
UNUR 0
RCOM 0
WASHTENAW INEL 707,156
CO DPW MI UNSP 2,807,133
UNUR 0
RCOM 0
GARY SD IN INEL 1,861,652
UNSP 1,024,829
UNUR 21,920,730
RCOM 0
DESERT INEL 0
RESEARCH UNSP 0
INST NV UNUR 0
RCOM 2,119,118
CLARK CTY INEL 5,138,940
SD NV UNSP 516,296
UNUR 19,042,733
RCOM 0
CORNING CA INEL 0
UNSP 0
UNUR 5,612,227
RCOM 0
TRACY CA INEL 2,687,236
UNSP 0
UNUR 4,137,467
RCOM 0
CA DEPT OF INEL 2,149,415
HEALTH CA UNSP 0
UNUR 1,639,269
RCOM 0
L.A. DEPT INEL 2,321,195
WATER & UNSP 0
POWER CA UNUR 4,354,690
RCOM 0
BRISTOL INEL 885,157
BAY UNSP 17,895
BOROUGH AK UNUR 125,250
RCOM 0
OHM REM INEL 0
ERCS3 R2 UNSP 0
OH UNUR 0
RCOM 1,095,181
OHM REM INEL 0
ERCS3 R2 UNSP 0
OH UNUR 0
RCOM 2,303,258


= INELIGIBLE COST
= UNSUPPORTED COST
= UNNECESSARY/UNREASONABLE
= RECOMMENDED EFFICIENCIES
= RECOMMENDED EFFICIENCIES


Report Resolution
Federal Snare
to be Recovered/
Sustained
Efficiency
INEL 2 ,
UNSP 1,
UNUR
SUST
INEL
UNSP 2,
UNUR
SUST
INEL 1 ,
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST 1,
INEL 1 ,
UNSP
UNUR
SUST
INEL
UNSP
UNUR 5,
SUST
INEL
UNSP
UNUR 2,
SUST
INEL 1 ,
UNSP
UNUR
SUST
INEL 2 ,
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST
INEL
UNSP
UNUR
SUST 1 ,
INEL
UNSP
UNUR
SUST 2 ,




COST

SUSTAINED


340,003
291,312
0
0
129,063
807,133
0
0
844, 623
965,449
0
0
0
0
0
689,118
090,544
84,896
0
0
0
0
612,227
0
150,363
0
012,798
0
652,482
0
544, 502
0
279, 176
0
0
0
837,566
5,024
0
0
0
0
0
095, 181
0
0
0
303,258









26
                                                                           OFFICE OF INSPECTOR GENEFIAL

-------
      Section  3 -  Prosecutive Actions
   The following is a summary of
   investigative activities during
   this reporting period.  These
   include investigations of
   alleged criminal violations
   which may result in
   prosecution and conviction,
   investigations of alleged
   violations of Agency
   regulations and policies, and
   OIG personnel security
   investigations. The Office of
   Investigations tracks
   investigations in the following
   categories: preliminary
   inquiries and investigations,
   joint investigations with other
   agencies, and OIG background
   investigations.
Summary Of
Investigative
Activities
Pending Investigations as of
March 31, 1993         193

New Investigations Opened
This Period             161

Investigations Closed This
Period                  160

Pending Investigations as of
September 30,  1993     194
Prosecutive and
Administrative Actions

In this period, investigative
efforts resulted in 16
convictions and 23*
indictments.  Fines and
recoveries, including those
associated with civil actions,
amounted to $7.3 million.
Seventeen administrative
actions** were taken as a
result of investigations:

Reprimands              11
Resignations/Removals     3
Suspensions              2
Other                    1

        TOTAL           17
                                                               * Does not include indictments obtained
                                                               in cases in which we provided
                                                               investigative assistance.

                                                               " Does not include suspensions and
                                                               determents resulting from Office of
                                                               Investigations activities or actions
                                                               resulting from reviews of personnel
                                                               security investigations.
                                          Profiles of Pending Investigations by Type
                                                        (Total--194)
                  General EPA Programs
                  Total Cases - 57
                                               Superfund and LUST
                                               Total Cases - 137
         Procurement Fraud
                 42
                                                 Construction
                                                      19
Employee Integ
        31
                                                      Procurement Fraud
                                                              28
                                                               Empl. Integrity
                                                                      5
                                     Program Integrity
                                            33
                                                                   Program Integrity
                                                                          24
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                             27

-------
Description of
Selected
Prosecutive and
Administrative
Actions

Below is a brief description of
some of the prosecutive
actions which occurred during
the reporting period.  Some of
these actions resulted from
investigations initiated before
April 1, 1993.
Major EPA Contractor
Pleads Guilty

As a result of an OIG
investigation, Booz-Allen &
Hamilton, Inc. (BAH), a major
Agency contractor, pleaded
guilty to two counts of
submitting false claims to EPA
and was fined $1 million. The
OIG  investigation revealed
that,  during the summer of
1988 and from July 1989
through March 1990, some
BAH employees charged time
against Agency contracts,
although they did not perform
work on these contracts (also
see page 29).

Company and Its President
Plead Guilty in Alleged
Bribery Attempt

Environmental Health,
Research, and Testing,  Inc., of
Lexington, Kentucky, and its
owner, Dr. Pritam S.
Sabharwal, pleaded guilty in
August 1993 to charges of
offering a bribe to an EPA
official in connection with
obtaining privileged information
on the amount bid by
competitors on a building to be
constructed for EPA at
Research Triangle Park, North
Carolina.  The EPA employee
who  received the $18,000
bribe was cooperating with the
Office of Inspector General.
The company agreed to pay a
criminal fine of $1 million.

Lab  Pleads Guilty to False
Claim

As a result of an ongoing OIG
investigation of fraud in the
Agency's Contract Laboratory
Program, NET Gulf Coast, Inc.
(NETGC), pleaded guilty to
one count of submitting  false
claims to EPA. NETGC paid a
$50,000 fine and agreed to
provide $200,000 to the
Federal Law Enforcement
Training Center in Glynco,
Georgia, to assist in training
Federal, State, and local law
enforcement officers in the
detection of environmental
crimes (also see page 29).

NETGC  was a laboratory that
performed analyses of
samples from  EPA Superfund
sites as  part of EPA's Contract
Laboratory Program. EPA
used the results of the
analyses to support Superfund
cleanup  decisions.  NETGC
admitted that,  in performing
these analyses, its Dallas
laboratory falsified test data
and submitted false claims for
payment over a 3-year period.

Office Director at
Headquarters Convicted,
Sentenced

Jerry Moore, an EPA
Headquarters  office director,
was found guilty in June 1993,
on 13 felony counts of
conspiracy, bank fraud, filing
false income tax returns,
money laundering, and making
false statements to  Federal
agents.  The convictions arose
out of Moore's role in a series
of real estate transactions
during the 1980s. Moore
resigned his government
position  in August 1993, and
was sentenced to 5 years in
prison.

The EPA OIG investigation
grew out of an OIG Hotline
complaint on an unrelated
matter.  Information developed
during the investigation of this
complaint led to evidence of
possible criminal violations.
This case was investigated
jointly by agents of the EPA
OIG, Internal Revenue
Service, the Federal Bureau of
Investigation, the  Defense
Criminal Investigative Service,
and the  United States Postal
Inspection Service.

New York Lab President
Sentenced

Arun Gaind, president of
Nanco Environmental
Services, Inc., of  Dutchess
County,  New York, was
sentenced in June 1993 for
submitting false test reports to
EPA on analyses of soil and
water samples. Gaind was
sentenced to 33 months in
prison followed by 3 years of
supervised release. He was
also ordered to pay restitution
to EPA of approximately
$511,000. The scheme
involved setting back the dates
on the computer data systems
attached to Gas
Chromatograph/Mass
Spectrometer instruments to
make it appear that laboratory
analyses were performed
within EPA-approved holding
times when, in fact, they were
not.  Two supervisors at
Nanco were previously
sentenced for their roles in the
scheme.

False Claims Made in
Asbestos Removal Program

Russell Curtis and Dean Curtis
pleaded guilty in July  1993 to
causing the Fairbury,
Nebraska, public schools to
submit a false claim to EPA for
expenses related to asbestos
removal.  In 1989 the school
system had been awarded a
grant of $281,176  and a 20
year no interest loan for
asbestos removal  under the
Asbestos School Hazard
Abatement Act.  The
government charged Russell
Curtis,  Dean Curtis, and
another individual with causing
the school system to submit
false invoices for change
orders for additional asbestos
work not covered in the
original asbestos removal
contract. The money, in fact,
was to be used to pay for
renovation of the Fairbury
Central Elementary School,
which was outside the scope
of the EPA grant and loan, and
related fees of the firms
operated by the Curtises and
others.
28
                                                                                        OFFICE OF INSPECTOR GENERAL

-------
Steel Firm Guilty in Bogus
Minority Business Claim

Barker Steel Co., Inc., a
Waltham, Massachusetts, steel
rebar manufacturing firm,
pleaded guilty in August 1993
to participation in a conspiracy
to defraud the government in
connection with the minority
business enterprise (MBE)
program.  Barker allegedly
used a Rhode Island MBE
firm, Rusco Steel Company,
from 1982 to 1986 as a "front
company" so that expenditures
on some Federal and
federally-assisted construction
projects would be credited
towards MBE goals, when they
were, in fact, for the benefit of
Barker Steel.  Barker was
sentenced to pay a $100,000
fine.  Rebars, or reinforcing
bars,  are used to reinforce
concrete for the construction of
buildings, roads, bridges, and
sewage treatment plants.

In February 1993,  the U.S.
Court of Appeals for the First
Circuit remanded the case for
trial, reversing a September
1991  dismissal by the U.S.
District Court, District of
Massachusetts,  of the criminal
charges filed against the  firm
and its president.

On-Scene Coordinator,
Landowner Indicted

An EPA Region 7  employee,
working as a Superfund on-
scene coordinator, and a
landowner have been indicted
by a Federal grand jury on
charges of conspiring to
defraud the government.  The
employee directed the day-to-
day activities at a dioxin
cleanup site near St. James,
Missouri, which  was completed
in December 1990 at a cost of
$4.4 million.  As part of the
job, the employee  had the
authority to negotiate with
landowners for the use of their
land in the cleanup process, to
contract for the construction of
facilities on the site, and the
actual cleanup.  According to
the indictment, the EPA
employee allegedly gave the
landowner proprietary
information which allowed him
to use a third party to underbid
competitors and to secure the
bid for fill dirt at the cleanup
site. The landowner was also
allegedly given access to
dioxin storage facilities at the
site, where he stored
miscellaneous personal
belongings.  In addition, the
EPA employee directed a
contractor to construct a dam
and lake on the property.  In
exchange, the employee was
allegedly provided meals and
given hunting and fishing
privileges.

Man Charged With
Misrepresenting Assets

The former operator of C&R
Battery, Inc., Richmond,
Virginia, has been charged
with making false statements
to the Government.  The
indictment alleges that he
concealed personal assets
from EPA in connection with
his potential liability for the
costs, related to the  Superfund
cleanup program, of
contamination at the battery
company location.
Civil and
Administrative
Actions to Recover
EPA Funds

Investigations and audits
conducted by the Office of
Inspector General provide the
basis for civil and
administrative actions to
recover funds fraudulently
obtained from EPA.  Through
the Inspector General Division
(IGD) of the Office of General
Counsel (OGC), the OIG uses
a variety of tools to obtain
restitution. These include
cooperative efforts with the
Department of Justice in  filing
civil suits under the False
Claims Act, the Program Fraud
Civil Remedies Act, and other
authorities; working with
grantees using their own civil
litigation authorities; invoking
the restitution provisions of the
Victim and Witness Protection
Act during criminal sentencing;
using the Agency's authority to
administratively offset future
payments and to collect debts;
and negotiating voluntary
settlements providing for
restitution in the context of
suspension and debarment
actions. Civil and
administrative actions to
recover funds usually extend
over several semiannual
reporting periods.

Booz-Allen & Hamilton

The IGD, working with the
United States Attorney's Office
for the Middle District of North
Carolina, negotiated a civil
settlement agreement with
Booz-Allen & Hamilton, Inc.
(BAH). Under the civil
settlement agreement, BAH
paid the Government $638,000
to resolve claims of fraudulent
labor (Discharging under four
EPA Technical Enforcement
Services (TES) contracts on
which BAH was a
subcontractor. BAH also
signed a compliance
agreement with EPA, under
which it bolstered its ethics
programs, modified its time
charging and cost accounting
practices,  and agreed to
remain subject to compliance
audits for 3 years to ensure
that it meets its obligations.

The Government estimated its
loss from this fraudulent
practice to be approximately
$200,000. The civil settlement
with BAH, which was for more
than three times the
Government's estimated
damages, included  the
recovery of $150,000 in OIG
investigative and prosecutive
costs.

NET Gulf Coast

Working with the United States
Attorney's Office for the Middle
District of  North Carolina, the
IGD negotiated a civil
settlement agreement with
NET Gulf Coast, Inc.
(NETGC), and its parent
corporation,  National
Environmental Testing, Inc.
(NET), under which NET paid
the Government $250,000.
The $250,000 civil settlement
includes repayment of the full
contract price of approximately
$128,000, plus OIG
investigative and prosecutive
costs, plus accrued interest.
In addition, NETGC (with the
exception of its Baton  Rouge
laboratory) agreed to be
debarred from participating in
all federally-funded contracts
and assistance for 25 years.

metaTRACE

The IGD, working with the
Department  of Justice (DOJ),
the Department of the Army,
and the Department of the Air
Force, negotiated a civil
settlement agreement under
which TRC Companies, and its
former subsidiary,
metaTRACE, Inc., agreed to
pay the Government
APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                              29

-------
$2,425,000 to settle a potential
False Claims Act case.  EPA's
share of the settlement was
$225,000, which covered
EPA's payments for analyses
that could not be relied on and
EPA's payments for additional
resampling. In addition to the
civil settlement, TRC agreed to
institute a corporate
responsibility program,
including a code of business
ethics, employee training, and
a quality assurance program.

The case arose out of a joint
investigation by the EPA OIG,
the Defense Criminal
Investigative Service, and the
Federal  Bureau of
Investigation into allegations
that metaTRACE had falsified
analytical data in connection
with its performance of
laboratory services contracts
with EPA,  the Department of
the Army, the  Department of
the Air Force,  and other
federal agencies.  The
investigation revealed that
employees of  metaTRACE
manipulated laboratory test
results to show that samples
were being tested in
accordance with contract
requirements when, in fact,
they were not. As a result of
the investigation, metaTRACE
and two of its  officers, Carol
Byington and  Kenneth
Baughman, were previously
convicted of submitting false
statements to  EPA.
metaTRACE was sentenced to
5 years probation and fined
$400,00; Byington was
sentenced to 5 years in jail
and fined $20,000; and
Baughman was sentenced to 5
years probation and fined
$10,000.

Computer Sciences Corp.

EPA's Suspension and
Debarment Division, working
with the IGD,  negotiated a
compliance agreement to
resolve the suspension of the
Applied Technology Division of
Computer Sciences
Corporation (ATD-CSC).
Under the compliance
agreement CSC agreed to (1)
pay the Government
$1,147,856 to resolve a
potential False Claims Act
case; (2) pay EPA $1,002,291
to resolve EPA contract
disputes; (3) the debarment of
the ATD-CSC vice president
for 2 years; (4) the exclusion
of other ATD-CSC employees
from all government contract
work for 2 years; and (5) the
implementation of the CSC
Proposal Integrity Program to
ensure that all proposals worth
more than $25 million are
reviewed by  a senior CSC
official for accuracy and lack of
ambiguity.

EPA had previously
suspended ATD-CSC and
three of its executives based
on information developed by
the OIG Office  of
Investigations and Office of
Audit.  EPA found adequate
evidence to suspect that  ATD-
CSC used false and
misleading statements in its
proposal for the EPA Technical
and Operational Support
Services (TOSS) contract,
which had a  potential 5-year
value of $347 million. The
false and misleading
statements concerned the
claim by CSC (the incumbent
computer support services
contractor) that conversion
from the old  contract to the
new TOSS contract would be
"100% transparent" because
CSC would transfer its
incumbent employee who were
already working on  EPA
projects to the TOSS contract
and that all the employees
proposed for the  TOSS
contract met the requirements
of the contract. In fact, many
of the incumbent  CSC contract
employees did  not meet the
educational requirements of
the TOSS contract.
Caribe General Constructors

The IGD negotiated a
compliance agreement with
Caribe General Constructors,
Inc. (Caribe), Osvaldo J. Ortiz,
its president, and Jose M.
Bonnin, its vice president for
operations, under which Caribe
agreed to pay EPA $75,000
and to institute certain
remedial measures.  Caribe's
$75,000 payment, representing
almost twice the estimated
$38,000 loss to the
Government, also resolved the
Government's potential
Program Fraud Civil  Remedies
Act case against Caribe.

The OIG investigation
developed information which
showed that Caribe had
submitted falsely inflated
claims during the construction
of an  EPA-funded sanitary
sewer system in Ponce, Puerto
Rico.  Based on that
information, EPA had
previously suspended Caribe,
Mr. Ortiz, and Mr. Bonnin  in
March 1993.

North Charleston, South
Carolina

In 1977, EPA provided a grant
to North Charleston,  South
Carolina, to help fund
construction of wastewater
treatment facilities in the Deer
Park area of Charleston
County. During the
construction of the project,
several contractors conspired
to rig  bids on contracts. The
bid rigging on this project  (as
well as on other EPA-funded
projects) was discovered by
the work of OIG investigators
and auditors, working with
other  law enforcement
agencies and the Department
of Justice.  Subsequently,
North Charleston aggressively
pursued civil recovery action
against the contractors
responsible for the bid  rigging.
In July 1991 North Charleston
successfully negotiated an
agreement to settle the bid
rigging on this project for
$340,000.

The IGD worked with North
Charleston and  EPA Region 4
to ensure that EPA receives
$31,627 of this settlement,
which represents the Federal
share of the net recovery
obtained by North Charleston
after its payment of reasonable
attorneys' fees.  EPA will be
able to reuse this money to
fund additional water pollution
improvement projects in the
future.
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   Section 4 -- Fraud Prevention  And Management Improvements
 This section describes several
 activities of the Office of
 Inspector General to promote
 economy and efficiency and to
 prevent and detect fraud,
 waste, and abuse in the
 administration of  EPA
 programs and operations.
 This section includes
 information required by statute,
 recommended by Senate
 report, or deemed appropriate
 by the Inspector General.
 Review of
 Legislation and
 Regulations

 Section 4(a)(2) of the Inspector
 General Act of 1978, as
 amended, directs the Office of
 Inspector General to review
 existing and proposed
 legislation and regulations
 relating to Agency programs
 and operations to determine
 their effect on economy and
 efficiency and the prevention
 and detection of fraud and
 abuse.  This semiannual
 reporting period, we reviewed
 7 legislative and 82 regulatory
 items.  The most significant
 items reviewed are
 summarized below.

 Elimination of
 Unnecessary or
 Outdated Statutorily
 Mandated Reports

 Efforts  are again underway in
 Congress to enact an omnibus
 bill to eliminate unnecessary or
 outdated Statutorily mandated
 reports to Congress. The
 Administrator was asked to
 update the Agency's 1985
 recommendations. The
 Legislative Analysis  Division
 (LAD) requested our
 comments on the Agency's
 recommendations and our
 suggestions concerning other
 Statutorily mandated reports to
 the  Congress which should be
 eliminated.  As discussed
 below, we recommended a
 number of these requirements
 be eliminated.

 The audits of cooperative
 agreements and claims, and
the  remedial
 investigations/feasibility studies
 (RI/FS) required by section
 111 (k) of the Comprehensive
 Environmental Response,
Compensation, and Liability
Act  (CERCLA) of 1980, as
amended, limit OIG flexibility to
focus on the most significant
problems. The changing
nature of the Super-fund
program demands that we
periodically reassess our
approach to focus on the
priority areas of concern, and
this requirement limits our
ability to do that.  We believe it
is more  advisable to set
priorities for our work based on
relative  risk and potential
impact.  Also, the Chief
Financial Officers (CFO) Act of
1990 requires an annual audit
of EPA's financial statements,
which makes the annual Trust
Fund audit requirement under
Section  111(k) of CERCLA
superfluous. Finally, much of
the material required in
Section  111 (k) duplicates
information already  provided
by the Office of Inspector
General in its Semiannual
Report to Congress.

Under 31 USC 1114, the
Inspector General is required
to submit to the Congress an
annual evaluation of (1) the
Agency's progress in
establishing effective
management controls over the
procurement and use of
advisory and assistance
services; and (2) the accuracy
of the data provided to the
Federal  Procurement Data
Center's automated
information system.  Although
proper handling and reporting
of EPA's advisory and
assistance contracts is
important, the OIG's findings
for these mandated  audits
have not been material.  We
felt greater benefits  could be
realized  by devoting audit
resources to other areas.
Accordingly, we recommended
that the  reporting requirement
in Section 1114 be repealed.

Public Law 101-121  prohibits
the use of appropriated funds
by any recipient of a Federal
contract, grant, cooperative
agreement, or loan over
certain amounts to pay any
person for influencing or
attempting to influence an
employee of any agency, a
Member of Congress, or an
employee of the Congress in
connection with any of these
transactions. This law requires
an annual audit of the
Agency's implementation of
the "lobbying provision."
Without a complete audit of
the books and records of a
business, it would be
impossible to determine
whether funds have been
inappropriately used for
lobbying activities. Because it
is impractical to conduct such
audits, we recommended that
section 319 of Public Law 101-
121 be eliminated.

Proposed Federal
Credit and Cash
Management Act of
1993

Although  we believe that the
Federal Government should
become more aggressive in
debt collection, and credit and
cash management, we believe
that this bill would create a
significant administrative
burden on each agency that
would divert vast resources
from the immediate mission of
that agency to the business of
monitoring and collecting debts
from loans, grants, and other
benefits.  We also believe that
it would be inefficient to set up
these very resource-intensive
operations, including data
bases, in  each separate
agency.

We suggested that the Federal
Government sell its accounts
receivable and outstanding
debts to private interests
instead of absorbing scarce
Federal resources, similar to
the way private industry sells
its accounts receivable at a
variable percentage of the
original value. This would
reduce or eliminate the
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Government's cost for
resources to manage that
debt, provide an immediate
return to the Government, and
create jobs in the private
sector with firms that
specialize in that business.
We also believe that
contracting with debt collection
agencies would eliminate the
bill's inherent bias against
Federal employees.  However,
if the Congress believes that it
is best for the Federal
government to  retain this
function, we suggest that it be
managed centrally through an
organization with that exclusive
mission, and one central data
base that easily coordinates
inter- and intra-agency offsets
against future disbursements.

We also recommended that
the definition of outstanding
debts  for collection be
broadened to include
sustained, disallowed costs
from audits, civil judgments or
settlements, and fines and
penalties.  We  also believe
that Federal employees should
not be subject to an automatic
offset of their Federal salaries
for tax liabilities based on
information from the IRS
without the same due process
expressly provided for through
the uniform Federal tax codes
to non-Federal employees.

Drinking Water  State
Revolving Fund
Program

We reviewed and commented
on the Agency's proposed
Drinking Water State
Revolving Fund (DWSRF)
model, issue papers, and
proposed legislative package.
We believed that the
development of a proposed
program to establish a
DWSRF to  provide assistance
for improving drinking water
facilities is a good first step in
addressing serious problems in
providing safe drinking water
to all citizens.  However, we
were concerned that the draft
legislative proposal did not
better reflect the unique
circumstances of the Federal,
State, and local drinking water
programs.  In our opinion, this
program must be better
tailored to meet these
circumstances.

The draft proposed legislation
for a DWSRF is based
primarily on the existing
legislation for the Water
Pollution Control State
Revolving Fund. Although this
is a good model, the proposed
DWSRF did not reflect
changes that  could be
suggested from the Agency's
experience  in implementing the
Water Pollution Control State
Revolving Fund. We believe
there is also a need to give
attention to the differences
between the drinking water
program needs and those of
the water pollution control
program, and to fill gaps in the
proposed legislation to
respond to  those needs. For
example, the  wastewater
construction program has  a
long  legislative history and a
well established institutional
framework  at both the  Federal
and State levels. This
legislation includes a clear
definition of eligible
construction projects, and has
led to the development of an
extensive body of
administrative regulations  and
program and technical
guidance.  Much of the
success of  the Water Pollution
Control State Revolving Fund
can be attributed to these
factors, many of which are
lacking in the drinking water
program. We believe that the
DWSRF should reflect the
need to fill  these gaps.

The early administration of the
Water Pollution Control State
Revolving Fund also revealed
the need to improve the flow of
funds from  the Federal
Government to the States.
The relevant sections of the
proposed legislation should
reflect the experience gained
from the Water Pollution
Control State Revolving Fund
in providing Federal payments
based on actual needs in the
State funds. Effective and
timely management of funds is
essential.

Contracts Management
Manual, Chapter 7,
Certification Program
for Technical
Representatives under
EPA Contracts

We reviewed a revision to
Chapter 7 of EPA's Contracts
Management Manual.  The
revision would require Senior
Resource Officials (SROs) in
each Regional and
Headquarters Assistant
Administrator's office to review
and confirm a list of contract
managers in their
organizations on an annual
basis.  By December 31 of
each year, the SROs would
have to certify to the Director,
Office of Acquisition
Management, that all their
contract managers meet the
training requirements and
workload limitations set forth in
Chapter 7, perform their
contract management
functions satisfactorily, have
contract management
responsibilities listed in their
position descriptions and
performance standards, and
receive an annual ethics
briefing.  If  any individual fails
to meet these requirements,
the SRO shall list his/her
name, the deficiency,
proposed corrective action,
and estimated date the
requirement will be met.

While we believed that the
proposed revision is generally
adequate, we expressed
certain concerns.  The chapter
stated that  SROs  must certify
that individuals within their
organizations who perform
acquisition management
functions do so satisfactorily.
Because of differing
organizational structures and
placement of the SRO
function, we felt the SRO may
not be able to evaluate the
performance of every
individual contract manager in
his/her organization.  Thus,
any certification not based on
specific knowledge of the SRO
would be meaningless. We,
therefore, suggested deletion
of this requirement.

Secondly, while the proposed
revision discussed  corrective
actions for weaknesses noted
in certifications, it did not
require the  SRO to report,
either in the annual report or in
an interim memorandum, the
corrective action taken. To
maintain program integrity, we
believe such information
should be reported.
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                                                                                          OFFICE OF INSPECTOR GENERAL

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 Suspension and
 Debarment
 Activities

 EPA's policy is to do business
 only with contractors and
 grantees who are honest and
 responsible.  EPA enforces
 this policy by suspending or
 debarring contractors or
 grantees, or individuals within
 those organizations, from
 further EPA contracts or
 assistance if there has been a
 conviction of, or civil judgment
 for:

    •  commission of a fraud or
      a criminal offense in
      connection with
      obtaining,  attempting to
      obtain, or performing a
      public contract or
      subcontract;

    •  violation of Federal or
      State antitrust statutes
      relating to the
      submission of offers;

    •  commission of
      embezzlement, theft,
      forgery, bribery,
      falsification or
      destruction of records,
      making a false
      statement, or receiving
      stolen property; or

    •  commission of any other
      offense indicating a lack
      of business integrity or
      business honesty that
      seriously and directly
      affects the present
      responsibility of a
      Government contractor
      or subcontractor.

A contractor may also be
debarred for violating the
terms of a Government
contract or subcontract, such
as willful failure to perform in
accordance with the terms of
one or more contracts, or a
history of failure to perform, or
 of unsatisfactory performance
 on one or more contracts. A
 contractor may also be
 debarred for any other cause
 of so serious or compelling a
 nature that it affects the
 present responsibility of the
 contractor.  Thus, a contractor
 need not have committed fraud
 or been convicted of an
 offense to warrant being
 debarred. Debarments are to
 be for a period commensurate
 with the seriousness of the
 cause, but generally do not
 exceed 3 years.

 The effectiveness of the
 suspension  and debarment
 (S&D) program has been
 enhanced by regulations that
 provide all Federal agencies  a
 uniform system for debarring
 contractors from receiving
 work funded by Federal grants,
 loans,  or cooperative
 agreements. The system,
 required by  Executive Order
 12549, provides that a
 nonprocurement debarment or
 suspension  by one agency is
 effective in all agencies and
 requires the General Services
 Administration (GSA) to
 publish monthly a "List of
 Parties Excluded from Federal
 Procurement or
 Nonprocurement Programs."
 Formerly,  a nonprocurement
 debarment was effective only
 in the programs administered
 by the debarring agency, and
 each agency maintained its
 own list.  The EPA Suspension
 and Debarment Division (SDD)
 in the Office of Grants and
 Debarment operates the S&D
program at EPA.  The OIG
 assists the EPA S&D program
by providing information from
audits,  investigations, and
engineering studies; and
obtaining documents and
evidence used in determining
whether there is a cause for
suspension or debarment.

The OIG's Suspension and
Debarment Unit works with
SDD to further educate and
 inform State and local
 governments and
 environmental interest groups
 about the effective use of
 suspensions and debarments.

 During this period cases with
 direct OIG involvement led to
 35 suspensions, 27
 debarments, and 7 compliance
 agreements, a total of 69
 actions.

 The following are examples:

   •  EPA debarred Cavour
 Yeh and EMtec Engineering,
 Inc. (EMtec), his affiliate, from
 participating in any Federal
 assistance, loan, and benefit
 programs for 2 years,  based
 on Cavour Yeh's conviction for
 mail fraud and making false
 statements. Cavour Yeh had
 submitted fraudulent
 timesheets under several
 federally-funded research
 projects conducted at the
 University of California at Los
 Angeles (UCLA), which caused
 UCLA unknowingly to submit
 false claims to EPA, the
 Department of Defense (DOD),
 and the National Science
 Foundation. Previously,
 Cavour Yeh was sentenced to
 2 years in prison, fined $6,000,
 and ordered to pay restitution
 of $1,594,000 to the United
 States and $150,000 to UCLA.
 EPA's share of the restitution
 is $88,485.  Since  EPA had
 previously suspended Cavour
 Yeh and EMtec in January
 1992, they will be excluded
 from participating in any
 Federal assistance, loan, and
 benefit programs for a total of
 almost 4 years.

 In addition, EPA debarred
 Richard Yeh, Victoria Hsia,
 and Wei Li (who are related to
 Cavour Yeh and were hired by
 him as research employees)
from participating in any
 Federal assistance, loan, and
benefit programs for 3 years,
based on their conviction for
conspiracy to make false
 statements.  Richard Yeh,
 Victoria Hsia, and Wei Li were
 sentenced to 3 years
 probation. Since EPA had
 previously suspended Richard
 Yeh. Victoria Hsia, and Wei Li
 in January 1992, they will be
 excluded from participating in
 any Federal  assistance, loan,
 and benefit programs for a
 total of almost 4 years.

 DOD debarred all these parties
 from direct Federal
 procurement for 3 years.
 Since DOD had  previously
 suspended all these parties in
 August 1991, they will be
 excluded from direct Federal
 procurement for a total of 4
 years.

   •  EPA suspended Warren
 Berkle, owner and operator of
 the National Sureco Ltd. and
 Berkle Insurance Inc.  Mr.
 Berkle devised a scheme to
 defraud and to obtain money
 and property by means of false
 and fraudulent pretense by
 issuing to construction
 companies surety bonds which
 he knew to be false and
 fraudulent. These bonds
 pertained to EPA-funded
 construction projects in New
 York and New Jersey.

   •  EPA debarred Annette
 Mailhos Savoy and Elizabeth
 Y. Olavesen, employees of
 Environmental Research
 Industrial Associates Inc.
 (EIRA) for a period of
 approximately 10 months.  Ms.
 Savoy and Ms. Olavesen were
 both part of a scheme to
 defraud EPA  and were
 convicted for  submitting
 fraudulent data to EPA as a
 basis for making  a claim for
 payment under an EPA
 contract.  Both knowingly
 manipulated data which was
 submitted to EPA so that it
 appeared that the data was
analyzed using properly
calibrated instruments when, in
fact, these instruments were
 not properly calibrated.
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   •  EPA suspended the
Applied Technology Division of
Computer Sciences
Corporation (CSC) along with
several key officials. CSC used
false and misleading
statements regarding
employee qualifications in its
proposal for the Technical and
Operational Support Services
(TOSS) contract, thereby
undermining the competitive
procurement process. EPA
later agreed to terminate the
suspension and enter into a
compliance agreement with
CSC. One of the conditions of
that agreement was that CSC
would debar Felice (Lyn)
Burchfield for  a 24 month
period from the date of the
suspension notice, and that
Ms. Burchfield along with
William Hutton and Marshall
Henderson would not work  on
any government contracts or
subcontracts or participate in
proposals in preparation for
any government contracts (see
page 30).

   •  Based on a joint
investigation of the EPA Office
of Inspector General and the
General Services
Administration Office of
Inspector General, EPA
suspended Teck Ming Chen, a
contract employee with
Computer Sciences
Corporation (CSC). Mr. Chen
admitted to making
unauthorized telephone calls
amounting to $4,367.10.  Mr.
Chen's access capabilities and
position as a Local Area
Network (LAN) supervisor
raised concerns over the
security of confidential
business information on file at
the Office of Regional
Counsel, Region 5. The
investigation uncovered that
Mr. Chen had a criminal record
consisting of several theft
convictions in Illinois,
Oklahoma, and Texas. Mr.
Chen's employment at CSC
was suspended immediately
and he was later terminated.
In addition, he was later
convicted of theft in Cook
County Circuit Court.

   •  The National Award
Center (NAC), also known as
Sante Enterprises Inc. (SEI),
was debarred for 3 years. EPA
concluded that NAC/SEI
lacked business integrity
based on the criminal
convictions of Douglas
Raymond Cox and Saul
Galindo, two of the Directors of
the Corporation along with
numerous other employees.
The U.S. District Court for the
Northern District of Texas
convicted Mr. Cox of
conspiracy, wire fraud, bank
fraud, and money laundering.
Mr Galindo was also convicted
of conspiracy. The EPA Office
of Inspector General and the
U.S. Postal Inspection Service
investigated NAC/SEI, which
was involved in a
telemarketing scheme to sell
water purifiers. To increase
the marketability of the
product, NAC/SEI falsely
represented that EPA
approved the purifiers and that
EPA was sponsoring a bill in
the House of Representatives
to require all households to
have a water filtration system
by 1990.
Congressional
Testimony by the
Office of Inspector
General

During this semiannual
reporting period, the Inspector
General or Deputy Inspector
General testified six times
before congressional
committees on various aspects
of the Superfund program,
elevating EPA to cabinet level
status, contract management,
and research and development
laboratories,  as described
below in more detail.

•  On April 28, 1993, the
Deputy Inspector General
testified before the House
Subcommittee on
Investigations and Oversight,
Committee on Science, Space,
and Technology on EPA's
Superfund Innovative
Technology Evaluation (SITE)
program. In  1990, OIG
reported that the program was
not providing decision-makers
timely, credible information on
innovative technologies for
selecting remedies for
Superfund sites. The
testimony provided the
subcommittee a historical
perspective on the program
and discussed our prior audit
work and the preliminary
results of an  ongoing follow-up
review of the Agency's
implementation of our prior
recommendations on four
problems identified  by the
audit: matching proposed
technologies with suitable
Superfund sites; reporting on
demonstrations; contractor
performance and cost control;
and Federal  funding for
technology developers.

•  On May 6, 1993, the
Inspector General testified
before the House
Subcommittee on Legislation
and National Security, and the
Subcommittee on
Environment,  Energy and
Natural Resources, Committee
on Government Operations on
elevating EPA to cabinet level
status. He focused his
testimony on two areas of the
proposed "Department of
Environmental Protection Act,"
procurement reform and
information resources
management, since they
related directly to recently
completed and ongoing work.

• On June 10, 1993, the
Inspector General testified
before the Senate
Subcommittee on Superfund,
Recycling, and Solid Waste
Management, Committee on
Environment and Public Works
on completed and ongoing
audit work in Superfund
contract management, financial
management, and information.
Although the Inspector General
used examples relating to the
Superfund program,  he stated
that these areas of concern
were also problems in other
EPA programs and  activities.

• On June 22, 1993, the
Inspector General testified
before the Senate Committee
on Governmental Affairs to
provide an update on the
Agency's progress in
addressing the problems in
contract management
discussed in committee
hearings in March 1992.  The
Inspector General also
discussed the results of
subsequent audits relating to
management, not only of
contracts, but the broader
range of extramural
assistance, including
cooperative agreements and
interagency agreements.

• On June 25, 1993, the
Inspector General testified
before the House
Subcommittee on
Environment,  Energy, and
Natural Resources, Committee
34
                                                                                         OFFICE OF INSPECTOR GENERAL

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 on Government Operations, on
 a series of reviews in the last
 year on EPA's research and
 development laboratories.
 Specifically, the testimony
 focused on how the
 laboratories had managed
 contracts and assistance
 agreements with organizations
 outside EPA which conduct or
 supplement much of EPA's
 research and EPA
 management responsiveness
 in taking corrective action.
 Five broad areas of concern
 were covered-work outside
 the scope of the contract or
 agreement, personal services,
 inadequate invoice review,
 limited competition, and
 conflicts of interest.

 •  On July 26, 1993, the
 Inspector General testified
 before the House
 Subcommittee on Oversight,
 Committee on Ways and
 Means, on audits of financial
 management in the Superfund
 program.  The Inspector
 General gave an overview of
 audits conducted of  EPA's
 Superfund accounting system
 over the last 10 years,
 including a discussion of
 accounts receivable,
 preliminary site costs, the
 indirect cost rate, and property
 and equipment.  With respect
 to the recently issued audit of
 the Superfund financial
 statements, he testified  that
 the CPA auditors who
 performed the audit for  the
 OIG disclaimed an opinion
 because EPA could not
 provide support for the data
 included in the statements.
 Also, ineffective controls in
 EPA's accounting system led
to errors totaling nearly  $500
 million, which EPA corrected
during the audit.  The audit
 also reported problems  in
accounts receivable and
property.
 OIG Management
 Initiatives

 This section discusses OIG
 initiatives to promote
 management and financial
 improvements and integrity in
 EPA's operations.  For this
 semiannual period, we are
 highlighting the OIG's
 continuing  efforts to implement
 its long-term program to audit
 EPA contractors.

 Expansion of Audit
 Program of Contractors

 The OIG continued to
 implement  its long-term
 program for conducting
 financial audits of EPA
 contracts during this
 semiannual period.  To deal
 with major  contractors on a
 comprehensive basis, we have
 assigned responsibility for
 overseeing and coordinating
 audits for the Agency's top 25
 contractors to a single OIG
 field division. We have
 formally assumed audit
 cognizance for 12 contractors
 and are analyzing data to
 potentially assume cognizance
 of additional firms.  In order to
 ensure our staff is prepared for
 contract audit work, we have
 expanded our staff's training
 opportunities.  We have
 obtained contract audit self-
 study courses developed by
 the Defense Contract Audit
 Agency (DCAA) for its use and
 are sending our contract
 auditors to  DCAA's Contract
 Audit  Institute for training.

 With respect to the audit
 backlog, we have reduced the
 number of open audit
 requests. As of September
 1993, there were 463
 outstanding incurred cost audit
 requests. Only 57 of the 463,
or 12  percent, were requested
prior to 1991. We are
continuing to work with DCAA
 to complete these audits.

 The OIG also worked with the
 Office of Management and
 Budget (OMB) and EPA's
 Office of Acquisition
 Management to implement the
 recommendations of the EPA
 SWAT Team and improve the
 Federal Acquisition Regulation
 (FAR) which governs
 Government contracting.  To
 this end, we forwarded to OMB
 for consideration
 recommended changes to
 seven FAR cost principles.  In
 view of the Administration's
 position on reducing costs, we
 feel the recommended
 changes will significantly
 improve the affected FAR cost
 principles and aid EPA in
 reviewing contract costs for
 allowability,  allocability, and
 reasonableness.

 Training

 OIG Developed Courses

 • Detection and Prevention of
 Fraud

 This course  was developed to
 help prepare independent
 public accountants doing work
 for the EPA  OIG, OIG auditors
 and EPA program and contract
 managers to detect and refer
 instances of possible fraud to
 the OIG Office of
 Investigations. The purpose of
 this course is to raise the
 consciousness of the
 participants to the elements
 and indicators of fraud. During
this reporting period the course
 was revised  and presented to
our Central Audit Division, to
 EPA program officers through
the EPA Institute, and as a
special seminar at the Federal
 Executive Institute. We also
assisted several other Offices
of Inspector  General develop
similar courses.

• Effectively  Selling Audit and
Investigative Findings
 This course, previously called
 Effective Briefing Techniques,
 was revised to stress the
 elements of a participatory,
 collaborative audit and
 investigative approach to
 develop and present
 persuasive recommendations
 and cases.  During this
 reporting period, we presented
 this course twice to our staff.
 We also  presented a workshop
 version of this course, by
 request,  at the Association of
 Government Accountants
 National  Professional
 Development Conference and
 for the Institute of Internal
 Auditors.

 • The Brown Bag Institute of
 Learning

 As part of our effort to do more
 in-house training  we initiated
 a lunchtime training program
 call the Brown Bag Institute of
 Learning. This program,
 hosted each month by various
 OIG managers features video
 tapes, case studies,
 discussions and  presentations
 by experts on subjects
 pertinent to OIG  work.

 During this reporting period,
 the OIG staff began
 development of additional in-
 house training courses, in
 order to provide  instruction
 more tailored to the actual
 work of our auditors and
 investigators and reduce our
 reliance on training vendors
 and contractors.

 Total Quality
 Management

 Quality Action Teams (OAT)
 have been established within
 OIG to improve training,
 recruiting, data gathering and
 sharing, and administrative
 processes.  In addition to the
teams within OIG, OIG
 employees  are members of
 Headquarters and Regional
Quality Action Teams seeking
to improve processes such as
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performance management,
employees recognition and
awards, audit followup,
procurement, and
implementation of the Chief
Financial Officers Act and the
Federal Managers' Financial
Integrity Act.


President's Council
on Integrity and
Efficiency

The Office of Inspector
General participates  in the
activities of the President's
Council on Integrity and
Efficiency (PCIE), which was
established by Executive Order
12301 in March 1981 to attack
fraud and waste, and to
improve management in the
Federal Government. The
PCIE was re-established by
Executive Order 12805 on May
11, 1992.  The PCIE
coordinates interagency
activities involving common
issues and develops
approaches and techniques to
strengthen the effectiveness of
the entire Inspector General
community.  The PCIE is
headed by the Deputy Director
for Management, Office of
Management and Budget, and
includes all civilian
Presidentially appointed
Inspectors General and other
key Federal officials.

Inspector General John C.
Martin chairs the Internal
Operations Committee of the
PCIE.  The EPA Office of
Inspector General is  leading a
PCIE government-wide review
of applications software
maintenance involving nine
Federal agencies.
Committee  on
Integrity and
Management
Improvement
The Committee on Integrity
and Management Improvement
(CIMI) was established in 1984
by EPA Order 1130.1.  The
purpose of CIMI is to
coordinate the Agency's effort
to minimize the opportunities
for fraud,  waste, and
mismanagement in EPA
programs and to advise the
Administrator on policies to
improve the efficiency and
effectiveness of EPA programs
and activities. The Committee
is composed of senior EPA
program and regional officials
and is chaired by the Inspector
General.

Computer Software
Duplication

Making unauthorized copies of
computer software is relatively
easy and is often done
innocently. When it comes to
unauthorized duplication of
software,  many people do not
realize the costly impact on the
software developer and the
customer community, or that it
is punishable by law.
Although  the cost of "softlifting"
(individuals making copies for
their own use or use by a
friend) is  borne initially by the
software developer, it is
ultimately paid for by legitimate
users.  CIMI believed that it
would be beneficial to heighten
employee awareness that
unauthorized software
duplication exposes the
individual to legal action and
the Agency to embarrassment
and serious financial
consequences. Therefore,
CIMI developed a leaflet to
make EPA employees  and
managers aware of the
seriousness of copyright
infringement and violation of
software licenses.

Public Service Recognition
Week

To communicate support and
appreciation to EPA
employees at all levels, CIMI
sought an opportunity for the
Agency to show its
commitment to human
resources.  To demonstrate
Agency appreciation to
employees, CIMI developed
and coordinated a series of
events during Public Service
Recognition Week in May.
Inspector General  John Martin
was master of ceremonies at a
special ceremony highlighted
by speeches from  former
Acting Deputy Administrator
Jon Cannon and Prince
George's County, Maryland,
Executive Parris Glendening.
Following the  ceremony,
Administrator  Carol Browner
hosted an hour-long reception
for winners  of the EPA
Employee Recognition Award.
Hotline Activities

During this period, the Hotline
was part of President Clinton's
efforts to "reinvent" the
Government by serving as a
collection point for the ideas of
American citizens. This
initiative requests the public to
directly participate by calling
OIG Hotlines to make
suggestions for improving
Government operations and
saving money. Attended
operating hours were
expanded  to serve the needs
of the public.

During this period, the Hotline
referred 3,191 telephone
callers to the appropriate EPA
program office, State agency,
or other Federal agency for
assistance.  The OIG Hotline
opened 46 new cases and
completed and closed 43
cases.  Of the cases closed, 6
resulted in environmental,
prosecutive, or administrative
corrective action, while 37 did
not require action. Cases that
did not have immediate validity
due to insufficient information
may be used to identify trends
or patterns of potentially
vulnerable areas for future
review.  The following are
examples of corrective action
taken as a result of information
provided to the OIG Hotline.

   •  A complainant alleged
that an EPA employee
circumvented procurement
procedures in awarding a
contract to a personal friend.
A review of the complaint
disclosed evidence of the
appearance of giving
preferential treatment to a
personal friend in issuing a
specific contract delivery  order.
The employee was given a
written reprimand.

   •  A complainant alleged
that an EPA employee
improperly influenced the
public on an environmental
issue.  A review of the
complaint disclosed that the
employee allowed his official
title to appear on a newspaper
editorial without the requisite
disclaimer that the views
expressed were his own  and
not those of the Agency.  The
employee was reprimanded
and office guidance was
issued regarding the use of job
titles on non-EPA work.

   •  A complainant alleged a
conflict of interest and abuse
of travel funds by an EPA
employee. A review of the
complaint disclosed that a
supervisor began an intimate
relationship with  an employee
which created a reasonable
appearance of favoritism and
non-impartial judgment
constituting a violation of
ethical requirements.  The
supervisor received a written
reprimand.
36
                                                                                         OFFICE OF INSPECTOR GENERAL

-------
   Appendix  1  - Reports  Issued
APPENDIX 1 - REPORTS ISSUED

     THE INSPECTOR GENERAL ACT REQUIRES A LISTING, SUBDIVIDED ACCORDING TO SUBJECT MATTER, OF EACH REPORT
ISSUED BY THE OFFICE DURING THE REPORTING PERIOD AND FOR EACH REPORT. WHERE APPLICABLE, THE DOLLAR VALUE
OF QUESTIONED COSTS AND THE DOLLAR VALUE OF RECOMMENDATIONS THAT FUNDS BE PUT TO BETTER USE.
 Assignment: Control Number
                               Title
                                                    Final Report
                                                        Issued
                                                                             Questioned Costs
                                                                                                         Recommended
                                                                                                         Efficiencies
                                             Ineligible
                                               Costs
                          Unsupported
                            Costs
Unreasonable (Funds Be Put
   Costs     To Better Use)
 1.  INTERNAL & MANAGEMENT ASSIGNMENTS

 Office of the Administrator

 E1SFF2-11-0019-3100404  SUPERFUND REPORT TO CONGRESS -
                      FISCAL 1991                      9/30/93

 Deputy Administrator

 E6EMG3-13-2055-3400094  USE OF RESOURCES IN OFFICE OF
                      COOPERATIVE ENVIRONMENTAL
                      MANAGEMENT                       9/29/93

 Assistant Administrator for Air and Radiation

 E1KAF1-03-0329-3100384  THE STRATOSPHERIC OZONE
                      PROTECTION PROGRAM               9/24/93

 Assistant Administrator for Administration and Resources Management
E1AMF2 -08 -0046-3100175
P1SFL2-20-8001
E1EPL2
E1SFF2
E1BMF2
E1AMF2
E6AWG3
Office
-20
-11
-06
-11
-04
of
-7001
-0051
-0047
-0040
-0281
-3100264
AUTOMATED CLEARING HOUSE
PAYMENT SYSTEM
FINANCIAL STATEMENT AUDITS
-3100265 PESTICIDE FINANCIAL STATEMENTS
-3100266
-3100284
-3100391
-3400068
Acquisition
SUPERFUND "
ZZ" ACCOUNTS
EPA'S ADMINISTRATION OF NON-
SUPERFUND SUPPORT CONTRACTS
RECONCILING
CONFERENCES
Management
CASH
- REGION 4

5/ 5/93
6/30/93
6/30/93
11 2/93
7/22/93
9/29/93
8/17/93

 D6EMN3-03-0052-3300059  REVIEW OF ATLIS FEDERAL
                      SERVICES, INC.  BILLING AND
                      HIRING PRACTICES                 8/26/93

 Assistant  Administrator for Prevention,  Pesticides and Toxic Substances

 E1EPF2-05-0063-3100256  PESTICIDES SPECIAL REVIEW PROGRAM  7/22/93

 Assistant  Administrator for Research and Development
 E1JBF2-01-0275-3100236  ORD'S NARRAGANSETT ENVIRONMENTAL
                      LAB MANAGEMENT OF EXTRAMURAL
                      RESOURCES

 E1SKG3-11-5015-3400096  SUPERFUND INNOVATIVE TECHNOLOGY
                      EVALUATION PROGRAM - FOLLOWUP
                                6/16/93
                                                      9/29/93

 Assistant Administrator for Solid Waste and Emergency Response
 E1SGG2-06-0181-3400097


 E1SFF3-11-0016-3100392


 Regional Administrator, Region 1
SURVEY OF SUPERFUND ARCS
MANAGEMENT ACTIVITIES
FISCAL  1992 SUPERFUND
ACCOMPLISHMENTS
 E1HWC3-01-0023-3100291


 E1RML3-07-0011-3100322

 Regional Administrator,
REGION  1'S ENFORCEMENT OF THE
SAFE DRINKING WATER ACT

FMFIA IMPLEMENTATION - REGION 1

Region  4
E1SGG2-14-0026-3400067


Regional Administrator, Region 5
SUPERFUND RI/FS REVIEW OF
NORTH  HOLLYWOOD SITE
El SGG2-14-0024-3 40004 5
                      SUPERFUND RI/FS REVIEW OF
                      BOFORS SITE
9/30/93


9/29/93




7/30/93

8/23/93




8/ 4/93




4/ 6/93
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                          37

-------
Assignment
Control Number
                        Title
     Final Report
         Issued
                                                                                      Questioned Costs
                Ineligible
                  Costs
          Unsupported
                Costs
              Unnecessary/
              Unreasonable
                    Costs
           Recommended
              Efficiencies
            (Funds be Put
           To Better Use)
E1SFD3-05-0154-3100287   FISCAL  1992  SUPERFUND
                         ACCOMPLISHMENTS -  REGION 5

Regional Administrator,  Region  6

E1SGG2-06-0181-3400098   SUPERFUND ARCS MANAGEMENT
                         ACTIVITIES IN REGION 6

Regional Administrator,  Region  7

E6EWG3-07-0106-3400088   FURNITURE ACQUISITION - REGION 7

E1SGG2-06-0181-3400099   SUPERFUND ARCS MANAGEMENT
                         ACTIVITIES IN REGION 7

Regional Administrator,  Region  8

E1RML2-08-0091-3100326   FMFIA IMPLEMENTATION - REGION 8

E1SFL3-08-0041-3100319   FISCAL  1992  SUPERFUND
                         ACCOMPLISHMENTS -  REGION 8

Regional Administrator,  Region  9

E1SFL3-09-0101-3100359   FISCAL  1992  SUPERFUND
                         ACCOMPLISHMENTS -  REGION 9

E1LLS3-09-006S-3400086   LUST-YOSEMITE NATIONAL PARK

E6FFG3-19-0001-3400080   SCAP  ACCOMPLISHMENTS - REGION 9

Regional Administrator,  Region  10

E1SFL3-10-0042-3100358   FISCAL  1992  SUPERFUND
                         ACCOMPLISHMENTS -  REGION 10

              TOTAL  INTERNAL  &  MANAGEMENT  ASSIGNMENTS

2 . CONSTRUCTION GRANT ASSIGNMENTS

P2CWL2-01-0144-3100179   MILFORD
S2CWLO-01-0073-3100161   SOUTH ESSEX  SEWERAGE DIST
S2CWLO-01-0312-3100163   NEW BEDFORD
S2CWL1-01-0264-3100237   NORTH ATTLEBOROUGH
S2CWL2-01-0028-3100255   SALISBURY
S2CWL2-01-0185-3100318   ATTLEBORO
S2CWL1-01-0134-3100321   SO. ESSEX SEWER DISTRICT

              TOTAL  OF REGION 01  =   7

E2CWL2-02-0078-3100204   GREAT NECK WPCD
E2CWMO-02-0302-3200048   SUFFOLK COUNTY
E2CWM1-02-0045-3200050   ERIE  COUNTY  SD #4
E2CWM1-02-0096-3200051   LIBERTY
E2CWM2-02-0137-3200052   ONEIDA  COUNTY SD
E2CWM1-02-0124-3200055   CANASTOTA
P2CWL1-02-0104-3100169   NYCDEP
P2CWL9-02-0175-3100196   ROCKAWAY  VALLEY REG SA
P2CWL1-02-0104-3100374   NYCDEP
P2CWL1-02-0017-3100388   CHEMUNG COUNTY
P2CWN9-02-0133-3300035   GLOUCESTER COUNTY

              TOTAL  OF REGION 02  =  11

E2CWMO-03-0183-3200049   TALBOT  COUNTY
P2CWM9-03-0261-3200045   BALTIMORE MAYOR &  CTY COUN
P2CWN8-03-0220-3300041   ELK PINCH PSD
P2CWNO-03-0387-3300046   BALTIMORE MAYOR &  CTY COUN
P2CWNO-03-0339-3300047   BALTIMORE MAYOR &  CITY COUN MD
P2CWNO-03-0032-3300049   BALTIMORE MAYOR &  CTY COUN  MD
P2CWN9-03-0384-3300050   BALTIMORE MAYOR &  CTY COUN
              TOTAL OF REGION  03  =
                                      7
E2CWL9-05-0262-3100397   FLINT
E2AWT3-05-0354-3400093   CLEVELAND NEORSD (EWS C/O)

              TOTAL  OF  REGION 05  =   2

E2CWN2-06-0163-3300038   CONROE
P2CWN2-06-0190-3300048   NEW  IBERIA
P2CWN2-06-0189-3300055   PORT NECHES

              TOTAL  OF  REGION 06  =   3

P2CWN3-07-0071-3300058   TOPEKA

              TOTAL  OF  REGION 07  =   1

E2CWM9-08-0036-3200047   MINOT
E2CWNO-08-0002-3300039   GREELEY
E2BWN2-08-0052-3300054   HUGHES COUNTY
       7/30/93




       9/30/93



       9/20/93


       9/30/93



       8/24/93


       8/16/93


)N 9

?S
CT
MA
MA
MA
MA
MA
MA
NY
NY
NY
NY
NY
NY
NY
NJ
NY
NY
NJ

MD
HV
MD
MD
MD
MD
MI
OH
TX
LA
TX
8/12/93
9/14/93
9/ 2/93
7/22/93
30
5/ 7/93
4/13/93
4/14/93
6/16/93
6/21/93
8/16/93
8/20/93
6/ 3/93
6/ 2/93
6/14/93
6/14/93
7/27/93
9/14/93
4/29/93
6/ 1/93
9/14/93
9/28/93
4/ 9/93
6/ 9/93
4/13/93
5/ 6/93
5/24/93
5/24/93
5/27/93
5/28/93
9/30/93
9/27/93
4/29/93
5/27/93
11 1/93
KS
ND
CO
SD
       7/14/93
4/30/93
4/30/93
6/30/93
                        149,075
                        101,428
                         86,011
                          8,938
                      1,969.835
                        401,242
                        191,220

                      2,907,749

                      1,343,546
                        139,054
                        167,119
                      1,326,705
                        306,095
                        263,724
                     12,895,788
                          7,883
                     12,731,984
                      1,014,508
                              0

                     30,196,406
                                 22,509
                                      0
                                      0
                                      0
                                      0
                                      0
                                      0

                                 22,509

                                 44,743
                              4,718,571
                                 22,056
                                      0
                                      0
                                      0
                             10,014,698
                                658,878
                             15,416,534
                                      0
                                570,006

                             31,445,486
147,176
298,988
684,189
118,644
340,265
1,137,312
3,805,897
6,532,471
438,497
100, 352
0
1,871,305
17,120
131,428
534,358
1,401,747
4,056,310
7,812,621
438,497

303,768
 20,753
 18,776

343,297

122,907

122,907

      0
 10,677
281,365
7,812,621

   30,812
    3,248
  112,958

  147,018

    1,200

    1,200

        0
        0
        0
                                     0
                             1,834,794
                                     0
                                     0
                                     0
                                     0
                                     0

                             1,834,794

                                     0
                                     0
                                     0
                                     0
                                     0
                                     0
                                     0
                                     0
                            11,018,23«
                                     0
                                     0

                            11,018,236

                               116,219
                                     0
                                     0
                                     0
                                     0
                                     0
                                     0

                               116,219

                             2,100,000
2,100,000

        0
        0
        0

        0

        0

        0

   41,548
        0
        0
   38
                                                                                                 OFFICE OF INSPECTOR GENERAL

-------
                                                                                     Questioned Costs
Assignment Title
Control Number
Final Report
Issued

Ineligible
Costs

Unsupported
Costs

Unnecessary/
Unreasonable
Costs
Recommended
Efficiencies
(Funds be Put
To Better Use)
E2CWM1-09-
E2CWNO-09-
E2BWL3-09-
S2CWM9-09-
S2CWNO-09-
S2CWN1-09-
S2CWNO-09-
S2CWN2-09-
S2CWNO-09-
S2CWNO-09-
              TOTAL OF REGION 08 =   3

          0115-3200046  GUSTINE, CITY OF
          0247-3300063  SEWER AUTH. MIDCOASTSIDE
          0190-3300072  SAN DIEGO,  CITY OF OUTFALL
          0192-3200056  SAN FRANCISCO, CITY & CO
          0073-3300036  SAN FRANCISCO, CITY & CO
          0217-3300051  CORNING, CITY OF
          0263-3300057  LOS ANGELES CSD
          0041-3300066  GOLETA SAN DIST
          0050-3300078  SAN FRANCISCO, CITY AND CO
          0076-3300080  LAS VIRGENES MWD

              TOTAL OF REGION 09 =  10
P2CWN2-
P2CWNO-
P2CWN1-
P2CWN1-
P2CWN1-
P2CWN1-
P2CWN1-
P2CWN9-
       10-0016-3300067
       10-0052-3300069
       10-0048-3300071
       10-0047-3300074
       10-0044-3300075
       10-0049-3300076
       10-0041-3300077
       10-0173-3300079
                         PETERSBURG,  CITY OF
                         SEATTLE
                         EUGENE,  CITY OF
                         LANE  COUNTY
                         PORTLAND,  CITY OF
                         SEASIDE,  CITY OF
                         METROPOLITAN WASTEWTR.
                         ST  MARIES,  CITY OF
                                     8
MGT,
              TOTAL OF REGION 10 =

P2CWP9-23-0052-3400076  ORTONVILLE

              TOTAL OF REGION 23 =   1
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
                                                     CA
AK
WA
OR
OR
OR
OR
CA
ID
                                                    MN
              TOTAL CONSTRUCTION GRANT ASSIGNMENTS
 3. OTHER GRANT ASSIGNMENTS

 C3HVK3-01-0205-3500948  CHICOPEE, CITY OF
 C3HVK3-01-0224-3500988  NE WASTE MANAGEMENT  OFFICIALMA
 G3HVK3-01-0115-3500509  MATTABASSETT DISTRICT
 G3HVK3-01-0148-3500607  SOUTH ESSEX SEWER DISTRICT
 G3HVK3-01-0147-3500608  SOUTH ESSEX SEWER DISTRICT
 G3HVK3-01-0152-3500609  HEALTH EFFECTS INSTITUTE
 G3HVK3-01-0128-3500670  RYE, TOWN OF
 G3HVK3-01-0134-3500701  HARTFORD, TOWN OF
 G3HVK3-01-0164-3500781  MASS WATER RESOURCES AUTHO.
 G3HVK3-01-0204-3500796  BURLINGTON, CITY OF
 G3HVK3-01-0187-3500827  LUBEC TOWN OF
 G3HVK3-01-0162-3500835  RUTLAND, CITY OF
 G3HUK3-01-0211-3500949  HEALTH EFFECTS INST.
 G3HVK3-01-0225-3500986  PORTLAND WATER DISTRICT
 G3HVK3-01-0226-3500987  PORTLAND WATER DISTRICT
 N3HVK3-01-0127-3500671  PIONEER VALLEY PLANN COMM
 N3HVK2-01-0183-3500737  PENOBSCOT INDIAN NATION
 N3HVJ3-01-0113-35007S6  NEW HAMPSHIRE, STATE OF
 N3HVK3-01-0188-3500795  BIGELOW LAB FOR OCEAN  SCI.
 N3HVK3-01-0168-3500797  MASSACHUSETTS, STATE OF
 N3HVK3-01-0161-3500940  PENOBSCOT INDIAN NATION
 P3DMN1-01-0192-3300061  NEW HAMPSHIRE DES

              TOTAL OF REGION 01 =  22

 G3HVK3-02-0118-3500520  CAMDEN COUNTY MUA
 G3HVK3-02-0147-3500655  LONG BRANCH SA
 G3HVK3-02-0148-3500684  CAPE MAY COUNTY MUA
 G3HVK3-02-0150-3500726  LANDIS SA
 G3HVK3-02-0157-3500743  GREAT NECK WPCD
 G3HVK3-02-0170-3500836  MANASQUAN RIVER RSA
 G3HUK3-02-0172-3500838  OZONE TRANSPORT COMM
 G3HUK3-02-0184-3500899  AMERICAN LUNG ASSN
 G3HVK3-02-0187-3500905  LOVE CANAL AREA REVITALIZ
 G3HVK3-02-0188-3500908  LOVE CANAL AREA REVITALIZ
 G3HVK3-02-0196-3500919  INTERSTATE SANITATION  COMM
 G3HVK3-02-0197-3500926  HIGHLAND FALLS
 G3HVK3-02-0203-3500952  PORT WASHINGTON WPCD
 N3HVK2-02-0068-3500514  ITHACA
N3HVK3-02-0071-3500516  GLENS FALLS
N3HVK3-02-0013-3500517  HORNELL
N3HVK2-02-0033-3500518  HAMBURG
N3HVK2-02-0036-3500519  KINGSTON
N3HVK3-02-0100-3500521  BETHEL
N3HVK2-02-0015-3500522  HORNELL
N3HVK1-02-0117-3500523  CHESTER
N3HVK2-02-0029-3500524  ROCKLAND
N3HVK3-02-0087-3500577  SUFFOLK COUNTY
N3HVK1-02-0075-3500578  GLENS FALLS
N3HVK1-02-0079-3500579  ITHACA
N3HVK1-02-0052-3500580  WAWARSING
N3HVK1-02-0122-3500581  NEW ROCHELLE
N3HVK2-02-0048-3500582  WARWICK
N3HVK2-02-0043-3500583  HUNTINGTON
N3HVK1-02-0053-3500658  ONEIDA COUNTY
N3HVK3-02-0108-3500837  NASSAU COUNTY
N3HVK3-02-0171-3500849  SOUTHERN TIER CENT REG PLAN NY
N3HVK3-02-0135-3500894  SENECA NATION OF INDIANS
            4/22/93
            9/14/93
            9/29/93
            9/30/93
            4/26/93
            6/ 1/93
            7/14/93
            9/16/93
            9/30/93
            9/30/93
9/21/93
9/29/93
9/29/93
9/29/93
9/29/93
9/30/93
9/30/93
9/30/93
                                                           9/ 1/93
                                                          53
MA
LMA
CT
MA
MA
MA
NH
VT
MA
VT
ME
VT
MA
ME
ME
MA
ME
NH
ME
MA
ME
NH
NJ
NJ
NJ
NJ
NY
NJ
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
NY
9/ 7/93
9/29/93
4/ 7/93
5/11/93
5/11/93
5/11/93
5/27/93
6/ 4/93
7/12/93
7/19/93
7/23/93
8/ 2/93
9/ 7/93
9/29/93
9/29/93
5/27/93
6/21/93
6/30/93
7/19/93
7/19/93
9/ 3/93
8/27/93
4/13/93
5/20/93
6/ 1/93
6/14/93
6/24/93
8/ 2/93
8/ 2/93
8/24/93
8/25/93
8/25/93
8/26/93
8/31/93
9/10/93
4/13/93
4/13/93
4/13/93
4/13/93
4/13/93
4/13/93
4/13/93
4/13/93
4/13/93
4/28/93
4/28/93
4/28/93
4/28/93
4/28/93
4/28/93
4/28/93
5/24/93
8/ 2/93
8/ 5/93
8/17/93
   292,042

         0
   436,117
 4,996,690
   103,238
   369,987
         0
   388,560
   273,220
   211,395
 3,818,863

10,598,070

   161,920
   115,738
   106,828
    56,528
    51,057
    72,886
 1,914,853
    62,860

 2,542,670

   107,991

   107,991

54,082,100
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                             11,296
                                                                              2,247
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                            497,500
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
                                                                                  0
         0

         0
         0
    67,546
   192,921
         0
         0
         0
         0
    32,698
         0

   293,165

    16,408
   217,557
         0
         0
   445,008
   141,152
 5,085,843
     5,206

 5,911,174

         0

         0

49,689,483
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                            35,478
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
                                                                                                 0
    41,548

 1,800,075
         0
         0
         0
 2,154,332
 5,612,227
         0
         0
         0
   568,480

10,135,114

         0
         0
         0
         0
         0
         0
         0
         0

         0

         0

         0

25,245,911
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                     39

-------
                                                                        Questioned Costs
Assignment
Control Number
N3HVK3-02-0163-3500939
TOTAL OF
C3HVK3 -03 -0082 -3500788
C3HVK3 -03 -0267-3500866
C3HVK3-03-0344-3500877
C3HVK3 -03 -0119-3 500969
C3HVK3 -03-0377-3500970
C3HVK3-03 -0378-3500971
D3BML3 -03 -04 50 -3100393
D3BML3 -03 -0451 -3100394
D3BML3 -03 -0452 -3100395
D3BML3-03-0453-3100396
G3HVK3 -03 -0257 -3500599
G3HVK3 -03 -0258-3500600
G3HVK3 -03 -0259 -3 500601
G3HVK3-03 -0260-3500602
G3HVK3-03-0261-3500604
G3HVK3-03-0158-3500664
G3HVK3-03-0297-3500668
G3HVK3 -03 -0298- 3500669
G3HVK3 -03 -0323 -3500748
G3HVK3 -03 -0325- 3 500751
G3HVK3 -03 -0326- 3 500753
G3HVK3 -03 -0327- 3 500754
G3HVK3 -03 -03 38 -3500757
G3HVK3 -03 -0343 -3500789
G3HVK3 -03 -0379 -3500878
G3HVK3 -03 -0398 -3500880
G3HVK3 -03 -0408-3500881
G3HVK3-03-0409 -3500883
G3HVK3-03-0410-3500884
G3HVK3-03-0426-3500972
G3HVK3 -03 -0427 -3 500973
N3HVK3 -03 -0279 -3 500642
N3HVK3 -03 -0280- 3500643
N3HVK3-03-0281-3500644
N3HUK3-03-0282-3500645
N3HUK3 -03 -0120-3 500665
N3HUK2 -03 -0574 -3500666
N3HVK2 -03 -053 1-3500667
N3HVK3 -03 -0324-3500749
N3HVK3 -03-0062-3500758
N3HVK3-03-0401-3500994
N3HVK3 -03 -0122 -350099 5
N3HVK3-03-0266-3500996
N3HVK3 -03 -0124 -3500997
N3HUK3 -03 -0263-3500999
N3HUK3-03-0339-3501000
TOTAL OF
C3HVK3 -04 -0220 -3500503
C3HVK3-04-0180-3500546
C3HVK3-04-0210-3500605
C3HVK3 -04 -0168-3 5006 12
C3HVK3 -04 -0102 -3 500622
C3HVK3 -04 -024 1-3 500661
C3HVK3 -04 -013 7 -3500844
C3HVK3 -04 -03 13 -3500868
G3HVK3 -04 -01 65-3500497
G3HVK3 -04 -01 40-3500498
G3HVK3 -04 -0146-3500499
G3HVK3 -04 -0178 -3500507
G3HVK3 -04 -0177 -3500508
G3HVK3 -04 -0172 -3 500525
G3HVK3-04-0182 -3500544
G3HVK3-04-0184 -3500545
G3HVK3-04-0175-3500553
G3HVK3 -04 -0176-3500554
G3HVK3 -04-0186-3500568
G3HVK3 -04 -0187- 3 500571
G3HVK3 -04 -0202 -3 500576
G3HVK3-04-0213 -3500586
G3HVK3-04-0214-3500587
G3HVK3-04-0208-3500588
G3HVK3-04 -0205-3500589
G3HVK3-04-0212 -3500611
G3HVK3 -04 -02 15-3500621
G3HVK3 -04 -0228-3500646
G3HVK3 -04 -0229 -3 500647
G3HVK3 -04 -0148 -3 500648
G3HVK3-04-0226-3500649
G3HVK3 -04 -0262-3500693
G3HVK3 -04-0269 -3500694
G3HVK3 -04 -0276- 3500709
G3HVK3 -04 -0294 -3 500761
G3HVK3-04-0287 -3500783
G3HVK3 -04 -0277 -3500874
G3HVK3-04-0308-3500912
N3HVK2-04-0455-3500502
Title Final Report
Issued
NEW YORK CITY NY
REGION 02 = 34
CHESTERFIELD COUNTY VA
SUSSEX COUNTY DE
WASHINGTON COUNTY MD
PRINCE WILLIAM COUNTY VA
BALTIMORE COUNTY MD
ANNE ARUNDEL COUNTY MD
PA STATE UNIVERSITY PA
CARNEGIE UNIVERSITY PA
CARNEGIE UNIVERSITY PA
CARNEGIE UNIVERSITY PA
DELAWARE RIVER BASIN DE
LEE COUNTY VA
PETERS TOWNSHIP PA
NEW HOLLAND BOROUGH AUTH PA
FRANKLIN TOWNSHIP PA
INTERSTATE COM POTOMAC RIVERMD
CALVERT COUNTY MD
PATTERSON TOWNSHIP MU. A. PA
ALTOONA CITY AUTHORITY PA
BLAIR COUNTY CON. DISTRICT PA
CENTRE COUNTY CONSERVE DIST.PA
LOWER TEN MILE JOINT AUTH. PA
DUBLIN BOROUGH PA
PENN VEST PA
ST. MARY'S CTY. METRO COMM. MD
ROCKWOOD BOROUGH MUNICIPAL PA
TALBOT COUNTY MD
STROUD TOWNSHIP PA
SAINT THOMAS TOWNSHIP PA
BUTLER AREA SEWER AUTH. PA
MERCERSBURG BOROUGH PA
DC DEPT CONSUMER REG AFFAIRSDC
DC DEPT. CONSUMER REG . AFFAIRSDC
NEW CASTLE COUNTY DE
PA STATE UNIVERSITY PA
GEORGE WASHINGTON UNIVERSITYDC
URBAN INSTITUTE, THE DC
HOWARD COUNTY MD
RICHMOND CITY OF VA
ERIE COUNTY PA
PA COMMONWEALTH OF PA
ALEXANDRIA VA
HOWARD COUNTY MD
CECIL COUNTY MD
JOHNS HOPKINS UNIVERSITY MD
TEMPLE UNIVERSITY PA
REGION 03 = 46
JACKSONVILLE FL
TALLAHASSEE FL
TAMPA FL
LEXINGTON-FAYETTE COUNTY KY
ATLANTA GA
FORT LAUDERDALE FL
JEFFERSON COUNTY KY
COBB COUNTY GA
ELIZABETHTOWN KY
G ASTON I A NC
BUNCOMBE COUNTY METRO SEWAGENC
LACENTER KY
RADCLIFF KY
COLLIER COUNTY FL
SALTILLO MS
LOUISVILLE & JEFFERSON CO SEKY
CORNERSVILLE TN
ST ANDREWS PUBLIC SERVICE DISC
SALUDA SC
SALUDA SC
MANCHESTER KY
ANDALUSIA AL
PINE HILL AL
WARNER ROBINS GA
BRUNSON SC
WHITESBURG KY
UNIONTOWN AL
C1TRONELLE UTILITIES BOARD AL
SANFORD FL
DALTON WATER LIGHT & SINKINGGA
GADSDEN WATER WORKS £ SEWER AL
LARGO FL
WAVELAND REGIONAL WASTEWATERMS
NORTH AUGUSTA SC
MONROE GA
LARGO FL
ESTILL CO. WATER DISTRICT NOKY
CHICKAMAUGA GA
PASCO COUNTY FL
9/ 2/93

7/15/93
8/12/93
8/12/93
9/17/93
9/17/93
9/17/93
9/30/93
9/30/93
9/30/93
9/30/93
S/ 7/93
S/ 7/93
S/ 7/93
S/ 7/93
5/ 7/93
5/27/93
5/27/93
S/27/93
6/25/93
6/25/93
6/25/93
6/25/93
6/30/93
7/15/93
8/12/93
8/12/93
8/12/93
8/12/93
8/12/93
9/17/93
9/17/93
5/18/93
5/18/93
5/18/93
5/18/93
5/27/93
5/27/93
5/27/93
6/25/93
6/30/93
9/30/93
9/30/93
9/30/93
9/30/93
9/30/93
9/30/93

4/ 2/93
4/21/93
5/11/93
5/12/93
5/13/93
5/25/93
8/ 3/93
8/12/93
4/ 1/93
4/ 2/93
4/ 2/93
4/ 6/93
4/ 6/93
4/13/93
4/20/93
4/20/93
4/22/93
4/22/93
4/26/93
4/26/93
4/28/93
4/30/93
4/30/93
4/30/93
4/30/93
5/11/93
5/13/93
5/19/93
5/19/93
5/19/93
5/19/93
6/ 4/93
6/ 4/93
6/ 8/93
7/ 2/93
7/14/93
8/12/93
8/26/93
4/ 2/93


Recommended
Ineligible Unsupported Unnecessary/ Efficiencies
Costs Costs Unreasonable (Funds be Put
Costs To Better Use)
0
511,043
0
0
0
0
0
0




0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
35,478
0
0
0
0
0
0




0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0




0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
40
                                                                                   OFFICE OF INSPECTOR GENERAL

-------
                                                                                     Questioned Costs
Assignment
Control Number
N3HVK3 -04 -0162 -3500504
N3HUK3 -04 -0242 -3500569
N3HUK3 -04 -0243 -3500570
N3HVK3-04-0204-3500606
N3HVK3-04-0240-3500650
N3HVK2 -04 -0388- 3 500660
N3HVK3-04-0216-3500662
N3HVK3 -04-0222 -3500663
N3HVK3-04-0271-3500672
N3HVK3-04-0224-3500682
N3HVK2-04-0339-3500683
N3HVK3 -04 -0266 -3500692
N3HUK3 -04 -0029 -35007 10
N3HUJ3 -04 -0143 -3500711
N3HUK2 -04 -0338 -3500714
N3HVK2 -04-0254-35007 15
N3HUK3 -04-0231-3500730
N3HVJ2-04-0460-3500731
N3HVK3 -04 -0223-3500732
N3HVK2 -04 -0470-3500744
N3HVJ2 -04 -0464 -3500745
N3HVK2 -04-0293 -3 500750
N3HVJ2 -04 -0458 -3500752
N3HVK2 -04-0471-3500762
N3HVK3-04-0142-3500763
N3HVK3 -04-017 1-35007 64
N3HVK2 -04 -0444 -3500831
N3HUK3 -04-0166-3500832
N3HVK3 -04 -0181 -3500833
N3HVK3 -04 -01 74 -3500834
N3HVK3 -04 -0206-3500845
N3HVK3 -04 -0297 -3500846
N3HVK3 -04-03 11-3500847
N3HVK3 -04-03 10-3500848
N3HVK3-04-0264 -3500867
N3HVK3 -04 -0275 -35009 13
N3HVK2 -04-0447-3500925
N3HVK3-04-0283-3500958
N3HVK3 -04 -0350-3500984
N3HVJ3 -04 -0340-3 500985
Title
DURHAM
KENTUCKY UNIVERSITY OF
KENTUCKY UNIVERSITY OF
LAKELAND
SARASOTA
SARASOTA COUNTY
WAUCHULA
ORLANDO
SARASOTA COUNTY
DOTHAN
FLORENCE
ARCADIA
CENTRAL CAROLINA TECHNICAL
MISSISSIPPI UNIVERSITY OF
MEDICAL UNIVERSITY OF SC
HICKORY
MOREHEAD STATE UNIVERSITY
GEORGIA, STATE OF
RED BAY
MEMPHIS
TENNESSEE, STATE OF
KEY WEST
MISSISSIPPI STATE OF
PINELLAS COUNTY
AUGUSTA
DURHAM
CELINA
MIAMI UNIVERSITY
FREEPORT
OAK GROVE
BRUNSON
WARNER ROBINS
FAYETTEVILLE
CAMP HILL
SEMINOLE TRIBE OF FLORIDA
OKALOOSA COUNTY
BREVARD COUNTY

NC
KY
KY
FL
FL
FL
FL
FL
FL
AL
AL
FL
SC
MS
SC
NC
KY
GA
AL
TN
TN
FL
MS
FL
GA
NC
TN
FL
FL
KY
SC
GA
TN
AL
FL
FL
FL
EASTERN BAND OF CHEROKEE INDNC
CHATTANOOGA
KENTUCKY STATE OF
TN
KY
Final Report
Issued
4/ 2/93
4/26/93
4/26/93
5/11/93
5/19/93
5/24/93
5/25/93
5/25/93
5/27/93
6/ 1/93
6/ 1/93
6/ 2/93
6/ 8/93
6/ 8/93
6/ 9/93
6/10/93
6/16/93
6/16/93
6/17/93
6/24/93
6/24/93
6/25/93
6/25/93
11 2/93
7/ 2/93
11 2/93
7/30/93
7/30/93
7/30/93
7/30/93
8/ 3/93
8/ 4/93
8/ 4/93
8/ 4/93
8/12/93
8/26/93
8/31/93
9/14/93
9/29/93
9/29/93
Ineligible Unsupported Unnecessary/ Efficiencies
Costs Costs Unreasonable (Funds be Put
Costs To Better Use)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
              TOTAL OF REGION 04 =  79

C3HVK3-05-0195-3500593  AKRON FY 91
C3HVK3-05-0294-3500800  KALAMAZOO FY 91
C3HVK3-05-0313-3500872  LANSING FY 92
C3HVK3-05-0347-3500965  GRAND RAPIDS FY 92
G3HVJ3-05-0169-3500526  ADAMS LAKE RSD FY 90/91
G3HVJ3-05-0173-3500527  KENTLAND FY 89/90
G3HVJ3-05-0177-3500S29  LANESVILLE FY 90/91
G3HVJ3-05-0176-3500530  AMO-COATESVILLE CD FY 90/91
G3HVK2-05-0376-3500531  ISLE FY 91
G3HVJ3-05-0178-3500532  CAMPBELLSBURG FY 90/91
G3HVJ3-05-0219-3500559  LAKE CO FY 91
G3HVJ3-05-0197-3500560  HOPE FY 90/91
G3HVJ3-05-0194-3500561  ARCADIA FY 90/91
G3HVK3-05-0221-3500562  HUBBARD SD FY 92
G3HVJ3-05-0205-3500563  SHARPSVILLE FY 90/91
G3HVK3-05-0215-3500590  FLUSHING FY 92
G3HVJ3-05-0216-3500591  S HENRY RWD FY 90/91
G3HVK3-05-0213-3500592  STACY FY 92
G3HVJ3-05-0223-3500594  SHIRLEY FY 90/91
G3HVJ3-05-0214-3500596  MARKLEVILLE FY 90/91
G3HVK3-05-0218-3500632  RANDALL FY 92
G3HVJ3-05-0249-3500633  MCDONALD FY 91
G3HVJ3-05-0250-3500634  ELYRIA FY 91
G3HVK3-05-0266-3500652  BROWNSDALE FY 92
G3HVK3-05-0265-3500653  ALLOUEZ FY 92
G3HVK3-05-0263-3500654  OGILVIE FY 92
G3HMK3-05-0276-3500676  ST IGNATIUS SCHOOL FY 93
G3HVK3-05-0264-3500765  FOLEY FY 92
G3HVK3-05-0280-3500782  LAKE MICHIGAN FED FY 92
G3HVK3-05-0303-3500799  ADAMS FY 92
G3HVK3-05-0302-3500840  CALUMET FY 92
G3HVJ3-05-0301-3500841  LOOGOOTEE FY 92
G3HVK3-05-0282-3500843  DODGE CENTER FY 92
G3HVK3-05-0311-3500873  STAPLES FY 92
G3HVK3-05-0320-3500890  CLEVELAND NEORSD FY 92
G3HVJ3-05-0359-3500963  INDIANA RECYCLE INST FY 92
G3HVK3-05-0357-3500964  DOWNERS GROVE SD FY 93
N3HVK3-05-0118-3500528  WAYNE CO FY 91
N3HVK2-05-0430-3500533  RED LAKE/CHIPPEWA FY 91
N3HVJ3-05-0170-3500564  ANDERSON FY 91
N3HVJ3-05-0157-3500651  MICHIGAN DNR FY 90/91
N3HVJ2-05-0341-3500755  MICHIGAN DOA FY 89/90
N3HVK3-05-0252-3500839  ILLINOIS DOM & M FY 91/92
N3HVK3-05-0185-3500842  INDIANAPOLIS FY 91
N3HVK3-05-0261-3500891  STOCKBRIDGE-MUNSEE FY 92
N3HVK3-05-0297-3500892  COLUMBUS FY 92
N3HVK3-05-0312-3500898  WORTHINGTON FY 92
N3HVJ3-05-0322-3500998  NW IN RPC FY 92
OH
MI
MI
MI
IN
IN
IN
IN
MN
IN
OH
IN
IN
WI
IN
MI
IN
MN
IN
IN
MN
OH
OH
MN
MI
MN
OH
MN
IL
MN
MI
IN
MN
MN
OH
IN
IL
MI
MN
IN
MI
MI
IL
IN
WI
OH
MN
IN
5/ 3/93
7/20/93
8/12/93
9/16/93
4/ 9/93
4/ 9/93
4/14/93
4/14/93
4/14/93
4/14/93
4/23/93
4/23/93
4/23/93
4/23/93
4/23/93
S/ 3/93
5/ 3/93
5/ 3/93
5/ 3/93
5/ 5/93
5/17/93
5/17/93
5/17/93
5/20/93
5/20/93
5/20/93
5/28/93
7/ 6/93
7/13/93
7/20/93
8/ 3/93
8/ 3/93
8/ 3/93
8/12/93
8/16/93
9/16/93
9/16/93
4/ 9/93
4/14/93
4/23/93
5/20/93
6/28/93
8/ 3/93
8/ 3/93
8/16/93
8/16/93
8/23/93
9/30/93
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
1,018
    0
    0
    0
    0
    0
    0
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                     41

-------
Assignment
Control Number
                          Title
Final Report
    Issued
                                                                                           Questioned Costs
Ineligible
  Costs
Unsupported
     Costs
	     Recommended
 Unnecessary/      Efficiencies
 Unreasonable     (Funds be Put
        Costs   To Better Use)
               TOTAL OF REGION 05 =  48
C3HVK3-06-0150-3500773
C3HVK3-06-0178-3500828
C3HVJ3-06-0190-3500907
E3LLN3-06-0060-3300068
G3HVK3-06-0107-3500540
G3HVK3-06-0108-3500541
G3HVK3-06-0109-3500542
G3HVK3-06-0110-3500543
G3HVK3-06-0114-3500555
G3HVK3 -06-0124 -3500597
G3HVK3-06-0123-3500598
G3HVK3 -06-0126-3500610
G3HVK3-06-0132-3500685
G3HVK3 -06-0137-3500703
G3HVK3-06-0138-3500704
G3HVK3-06-0139-3500705
G3HVK3-06-0140-3500706
G3HVK3-06 -0141 -3500707
G3HVK3 -06-0143 -3500712
G3HVK3 -06-0144-3500713
G3HVK3-06-0171 -3500817
G3HVK3-06-0172-3500818
G3HVK3-06-0173-3500819
G3HVK3-06-0175-3500820
G3HWK3-06-0176-3500821
G3HVJ3 -06-0177-3500822
G3HVJ3 -06 -0174 -350082 3
G3HVK3 -06-0179-3500829
G3HVK3-06-0189-3500906
G3HVK3-06-0192 -3500917
G3HVK3-06-0193-3500918
G3HVK3 -06-0195- 3 500930
N3HVJ3 -06-0099-3500500
N3HVK3 -06-0098 -3500501
N3HVK3 -06-0101 -3500505
N3HVK3-06-0102-3500506
N3HVK3 -06-0125-3500603
N3HVK3-06-0130-3500659
N3HVK3-06-0133-3500686
N3HVK3-06-0135-3500687
N3HVK3-06-0134-3500688
N3HVJ3-06-0136-3500702
N3HVK3 -06-0142 -3500708
N3HUK3-06-0145-3500722
N3HUK3 -06-0146-3500723
N3HVK3 -06 -0147 -3500724
N3HVK3 -06-0148 -3500725
N3HVJ3 -06-0156- 3 500801
N3HUK3 -06-0 157 -3500802
N3HVK3 -06-0158-3500803
N3HVK3 -06-0159 -3500804
N3HVK3-06-0160-3500805
N3HVK3-06-0161-3500807
N3HVK3 -06-01 62 -3500808
N3HVK3 -06-0163 -3500809
N3HUK3 -06-0164 -3500810
N3HVK3 -06-0165- 3 500811
N3HVK3 -06-0 166 -3 500812
N3HVK3 -06 -0167 -35008 13
N3HVJ3 -06 -0168-35008 14
N3HVK3 -06-0169 -3500815
N3HWK3 -06-0170-3500816
N3HVK3 -06-01 80- 3500830
N3HVK3 -06-0184 -3500853
N3HVK3 -06-0186-3500859
N3HVK3 -06-019 1-3500909
N3HVK3 -06-0 19 6 -3500931
N3HVK3-06-0197-3500954
N3HVK3 -06-0198-3500955
N3HVK3-06-0199 -3500956
TOTAL OF
G3HVK3 -07-0 123 -3 500515
G3HVK3-07-0129-3500768
G3HVK3 -07 -0130-3500771
G3HVK3 -07 -0132 -3500790
G3HVK3 -07 -0134 -3500798
G3HVK3-07-0153-3500941
G3HVK3 -07-0157 -3500950
N3HVK3 -07-0113 -3500573
N3HVK3-07-0126-3500675
N3HVJ3-07-0095-3500721
N3HVK3 -07 -0110- 3500851
N3HVK3 -07 -0122 -3500852
N3HVK3-07-0111-3500882
N3HVK3 -07-0112-3500886
N3HVK3 -07 -0121 -3500888
N3HVJ3 -07-014 3 -3500893
N3HVK3 -07-0139-3500900
SAN ANTONIO TX
SHREVEPORT LA
ARKANSAS DEPT. OF POLLUTION AR
LUST/UST NM
BROWNSVILLE PUB TX
BROWNSVILLE PUB TX
BROWNSVILLE PUB TX
BROWNSVILLE PUB TX
DERIDDER LA
EL PASO WCID WESTWAY TX
DEVINE TX
SAN JUAN TX
RUNGE TX
SHAWNEE OK
SOUTH HOUSTON TX
SOUTH HOUSTON TX
SOUTH HOUSTON TX
LEVELLAND TX
TERREBONNE PARISH CONSOLID LA
DERIDDER LA
SPLENDORA TX
LEONARD TX
LEONARD TX
SUNSET VALLEY TX
EL PASO PSB TX
ARK SOIL AND W AR
ARKANSAS STATE PLANT BOARD AR
NEW CORDELL OK
OAK MANOR MUD TX
PECOS NM
CONROE TX
DERIDDER LA
OKLAHOMA, STATE OF OK
EL PASO TX
DEVINE TX
TROY TX
DALLAS TX
EIGHT NORTHERN INDIAN PUEBLONM
NORTH CENTRAL COG TX
TEXARKANA TX
SANTA CLARA INDIAN PUEBLO NM
SOIL & WATER CONS.COMMISS. AR
SAN JUAN PUEBLO NM
OKLAHOMA UNIVERSITY OF OK
ABILENE CHRISTIAN UNIVERSITYTX
OSAGE NATION OK
DALLAS, CITY OF TX
LOUISIANA, STATE OF LA
ABILENE CHRISTIAN UNIVERSITYTX
CLEBURN TX
DALLAS, CITY OF TX
PLANO TX
KICKAPOO TRADITIONAL TRIBE TX
KICKAPOO TRADITIONAL TRIBE TX
FORT WORTH TX
UNIVERSITY OF OKLAHOMA OK
OSAGE NATION OK
ST. BERNARD PARISH POL. JURY LA
ALBUQUERQUE NM
TEXAS, STATE OF TX
JEFFERSON PARISH LA
SANTA CLARA INDIAN PUEBLO NM
EDMOND OK
NM ENERGY MINERALS & NAT. RE NM
PUEBLO OF IOSLETA NM
KICKAPOO TRIBE TX
LOWER COLORADO RIVER TX
ARK -TEX COG AR
LOVELACE MEDICAL FOUNDATION NM
LOVELACE MEDICAL FOUNDATION NM
REGION 06 = 70
PUB WTR DIST #3 CHILLICOTHE MO
DESOTO MO
ROCK CREEK PUBLIC SEWER DISTMO
COLUMBIA MO
SALINA KS
DODGE CITY KS
ARCADIA MO
LINCOLN NE
JOPLIN MO
MARSHALLTOWN IA
LINN COUNTY I A
TRENTON MO
POLK COUNTY IA
WEBB CITY MO
ST LOUIS MO
SIOUX CITY COMM SCHOOL DIST IA
JOHNSON COUNTY KS
11 8/93
7/26/93
8/25/93
9/27/93
4/20/93
4/20/93
4/20/93
4/20/93
4/22/93
5/ 6/93
S/ 6/93
5/11/93
6/ 1/93
6/ 7/93
6/ 7/93
6/ 7/93
6/ 7/93
6/ 7/93
6/ 8/93
6/ 9/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/27/93
8/25/93
8/26/93
8/26/93
9/ 1/93
4/ 2/93
4/ 2/93
4/ 6/93
4/ 6/93
5/ 7/93
5/24/93
6/ 1/93
6/ 1/93
6/ 1/93
6/ 7/93
6/ 7/93
6/11/93
6/11/93
6/11/93
6/11/93
7/21/93
7/21/93
7/21/93
7/21/93
7/21/93
7/21/93
7/21/93
7/21/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/22/93
7/27/93
8/ 6/93
8/ 9/93
8/25/93
9/ 1/93
9/13/93
9/13/93
9/13/93

4/13/93
7/ 8/93
7/ 8/93
7/16/93
7/19/93
9/ 3/93
9/ 8/93
4/27/93
5/28/93
6/11/93
8/ 5/93
8/ 5/93
8/12/93
8/13/93
8/13/93
8/16/93
8/24/93
                                                                                         0
                                                                                         0
                                                                                         0

                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                    18,298
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0

                                                                                    18,298

                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                                                                         0
                                       1,018

                                            0
                                            0
                                            0

                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
                                            0
   42
                                                                                                        OFFICE OF INSPECTOR GENERAL

-------
                                                                           Questioned Costs
Assignment
Control Number
N3HVK3-07-0115-3500903
N3HUK3-07-0152-3500910
N3HUK3-07-0151-3500911
N3HUK3-07-0154-3500936
N3HVK3 -07 -0114 -3500946
TOTAL OF
C3HVK3 -08-0117-3500979
G3HVJ3-08-0079-3500772
G3HVJ3-08-0083-3500775
G3HVK3-08-0084 -3500776
G3HVJ3 -08-0087-3500777
G3HVK3 -08-0092-3500879
G3HVK3-08-0093 -3500889
G3HVK3 -08-0096 -3 500904
G3HVK3 -08-0102- 3500935
G3HVK3 -08-0101-3500937
N3HVK3-08-0070-3500572
N3HVK3 -08 -0082 -3500766
N3HVJ3 -08-0081 -3500767
N3HVK3 -08-0080-3500769
N3HVK3 -08-0085-3500774
N3HVK3-08-0071 -3500778
N3HVK3 -08-0076-3500850
N3HVK3 -08-0075-3500885
N3HVK3 -08-0074 -3500887
N3HVK3 -08 -0095 -3500895
N3HVK3 -08-0100-3500901
N3HVK3 -08-0090-3500902
N3HVK3 -08 -0107- 3500932
N3HVK3 -08 -0106-350093 3
N3HVK3 -08-01 11 -3500934
N3HVK3 -08-01 10- 3500938
N3HVK3 -08 -01 14 -3500942
N3HVK3 -08-01 12 -3500951
N3HVK3 -08 -01 15-3500953
N3HVK3 -08 -01 19 -3500961
N3HVK3 -08 -0103 -3500980
N3HVJ3 -08-012 1-3500981
N3HVK3 -08 -0122 -3 500982
TOTAL OF
C3HVK3-09 -0244 -3500945
G3HVK3 -09 -0144 -3500513
G3HVK3 -09-0184-3500673
G3HVK3 -09 -0204 -3500779
G3HVK2 -09 -0293 -3 500826
G3HVK3 -09 -0214 -3 500862
G3HVK3 -09 -0220- 3500896
G3HVK3 -09 -019 5- 3500957
G3HVK2 -09 -0292 -3500974
G3HVK3 -09 -0251 -3500992
N3HVK3 -09 -0095 -3500510
N3HVK2 -09 -0290-3500511
N3HVK2 -09 -03 10-3500534
N3HVK2-09-0346-3500535
N3HVK3 -09 -0035- 3 500536
N3HVK3 -09 -0149 -3500537
N3HVK3 -09 -0148-3500539
N3HVK3-09-0152-3500547
N3HVK3 -09 -0099 -3 500548
N3HVK3 -09 -0153 -3500552
N3HVK3 -09-0157-3500556
N3HVK3 -09-0156-3500557
N3HVK3-09-0159-3500565
N3HVK3 -09 -01 58-3500566
N3HVK2 -09 -0285-3500574
N3HVK3 -09-0 161- 3500575
N3HVK3 -09-0162-3500585
N3HVK3 -09 -0105 -350061 3
N3HVK2 -09 -0273 -3500614
N3HVK3 -09 -0055 -3500615
N3HVK3 -09 -0123 -3500623
N3HVK3 -09 -01 74 -3500624
N3HVK3-09-0173-3500625
N3HVK3 -09 -0172- 3 500626
N3HVK3 -09 -0176- 3500627
N3HVK3 -09-0106-3500630
N3HVK3-09-0032-3500636
N3HVK3 -09 -0026 -3500637
N3HVK3 -09 -0135-3500638
N3HVK3-09-0134-3500639
N3HVK2- 09 -0354 -3500640
N3HVK3- 09 -0087- 3 500641
N3HVK3 -09 -0179 -3500656
N3HVK3 -09 -0178 -3500657
N3HVK3 -09 -0025-3500674
N3HVK3 -09 -0027 -3500677
N3HVK3 -09 -0186 -3500681
N3HVK3-09 -0107-3500695
Title
KANSAS CITY MO
UNIVERSITY OF NEBRASKA SYST.NE
UNIVERSITY OF NEBRASKA-SYST.NE
UN IV OF KS CENTER FOR REASEAKS
LINCOLN SANITARY SEWER NE
REGION 07 = 22
SIOUX FALLS SD
SOUTHEAST CASS WATER DIST ND
MENDORA NE
CENTRAL COLORADO WATER DIST CO
BUFFALO WY
EAST DAKOTA WATER DEV DIST. SD
TRIPP SD
SO ADAMS COUNTY WATER DIST. CO
BURLINGTON WY
LONGMONT CO
UTE INDIAN TRIBE UT
CASTLE ROCK CO
CASS COUNTY ND
ASSINIBOINE & SIOUX TRIBES MT
SALISH & KOOTENAI TRIBES MT
NORTHERN CHEYENNE TRIBE MT
CHEYENNE RIVER SIOUX TRIBE SD
SOUTHERN UTE INDIAN TRIBE CO
DENVER REGIONAL COUNCIL CO
B I SHARK ND
WESTMINISTER CO
WESTMINISTER CO
ROCK SPRINGS WY
THREE AFFILIATED TRIBES
GRAND FORKS ND
CHEYENNE RIVER SIOUX TRIBE SD
CROW TRIBE OF INDIANS MT
NORTHERN CHEYENNE TRIBE MT
CROW TRIBE OF INDIANS MT
WYOMING DEPARTMENT OF HEALTH
MINOT ND
PENNINGTON COUNTY SD
UTE INDIAN TRIBE UT
REGION 08 = 33
SAN DIEGO, CITY OF CA
BOULDER CITY, CITY OF NV
EAST BAY DISCHARGERS AUTH CA
CALAVERAS COUNTY WATER DIST CA
HAWAII, COUNTY OF HI
VALLEJO SANIT & FLOOD CTRL CA
CARSON CITY NV
BOULDER CITY, CITY OF NV
HAWAII COUNTY OF HI
SAN LUCAS CO WATER DIST. CA
MARSHALL ISLANDS REPUBLIC OFMH
NAVAJO NATION AZ
COLORADO RIVER IND. TRIBES AZ
GLENDALE, CITY OF AZ
HOOPA VALLEY TRIBE CA
SHASTA, COUNTY OF CA
PACIFICA, CITY OF CA
NEVADA, COUNTY OF CA
HENDERSON, CITY OF NV
WEOTT COMM. SVCS . DIST CA
SANTA CRUZ, CITY OF CA
LOS ANGELES CNTY SANT. DIST CA
STANISLAUS, COUNTY OF CA
SAN LUIS OBISPO, COUNTY OF CA
BOULDER CITY, CITY OF NV
CORNING, CITY OF CA
ASSN OF BAY AREA GOVERNMENT CA
POHNPEI, STATE OF FM
WASHOE COUNTY NV
LAKE OROVILLE AREA PUD CA
WASHOE COUNTY NV
SACRAMENTO, COUNTY OF CA
SOUTH COAST AIR QTY MGMT DISCA
EAST BAY MUNI UTILITY DIS CA
ALAMEDA, COUNTY OF CA
KOSRAE, STATE OF FM
GILA RIVER IND. COMMUNITY AZ
TUCSON, CITY OF AZ
TUSCON, CITY OF AZ
VENTURA, COUNTY OF CA
FRESNO, CITY OF CA
PRESCOTT, CITY OF AZ
HUGHSON, CITY OF CA
SAN DIEGO ASSN OF GOVERNMENTCA
SALT RIVER PIMA-MAR IND COMMAZ
MARICOPA ASSN OF GOVTS AZ
MONTEREY, COUNTY OF CA
FEDERATED STATES MICRONESIA FM
Final Report
Issued
8/24/93
8/25/93
8/25/93
9/ 1/93
9/ 3/93

9/27/93
7/ 8/93
7/ 8/93
7/ 8/93
7/ 8/93
8/12/93
8/13/93
8/24/93
9/ 1/93
9/ 1/93
4/27/93
7/ 7/93
7/ 7/93
7/ 8/93
7/ 8/93
7/ 8/93
8/ 5/93
8/13/93
8/13/93
8/19/93
8/24/93
8/24/93
9/ 1/93
9/ 1/93
9/ 1/93
9/ 1/93
9/ 3/93
9/ 8/93
9/10/93
9/14/93
9/27/93
9/27/93
9/28/93

9/ 3/93
4/ 8/93
5/27/93
7/ 9/93
7/22/93
8/10/93
8/19/93
9/14/93
9/17/93
9/29/93
4/ 8/93
4/ 8/93
4/15/93
4/15/93
4/15/93
4/16/93
4/16/93
4/21/93
4/21/93
4/21/93
4/22/93
4/22/93
4/23/93
4/23/93
4/27/93
4/27/93
4/29/93
5/12/93
5/12/93
5/12/93
5/14/93
5/14/93
5/14/93
5/14/93
5/17/93
5/17/93
5/18/93
5/18/93
5/18/93
5/18/93
5/18/93
5/18/93
5/20/93
5/20/93
5/27/93
6/ 1/93
6/ 1/93
6/ 4/93

Ineligible
Costs
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
21,405
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Unsupported
Costs
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Unnecessary/
Unreasonable
Costs
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Recommended
Efficiencies
(Funds be Put
To Better Use)
























































































APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                        43

-------
                                                                          Questioned Costs
                                                                                                       Recommended
Assignment
Control Number
N3HVK3 -09-0100-3500700
N3HUK3 -09 -0051 -3500716
N3HVK3-09-0122-3500719
N3HVK3-09 -0191-3500720
N3HVK3-09-0192-3500727
N3HUK3-09-0054-3500728
N3HVK3-09-0169-3S00734
N3HUK2-09-0326-3500738
N3HVK3-09-0085-3500741
N3HVK3 -09-0102 -3500747
N3HVJ3 -09-0155-3500786
N3HVK3 -09 -0031 -3500787
N3HVK3 -09-0188-3500791
N3HUK3 -09 -0060-3500792
N3HUK3-09-0181-3500794
N3HVK3 -09-0216-3500854
N3HVK3-09-0215-3500855
N3HUK3 -09 -0030 -3 500861
N3HVK3 -09 -0108-3500864
N3HVK3 -09 -0218-3500865
N3HVK3 -09 -0217 -3500875
N3HVK3-09 -0113 -3600915
N3HVK3 -09 -01 54 -3500921
N3HUK3 -09 -0121 -3500922
N3HVK3-09 -0249-3500923
N3HVK3-09-0238-3500924
N3HUK3 -09-0182 -3500928
N3HVK3 -09-0245- 3 5009 47
N3HVK3-09-0196-3500959
N3HVK3 -09 -0246 -3500960
N3HVK3-09-0183-3500962
N3HVK3 -09 -0236- 3500976
N3HVK3 -09 -0222 -3 500978
N3HVK3 -09 -0256-3500983
N3HVK3 -09 -0198-350099 3
TOTAL OF
G3HVJ3- 10 -0072 -3500512
G3HVK3- 10-0082 -3500567
G3HVJ3- 10-0004 -3 5007 60
G3HVJ3 -10-0122-3500863
G3HVJ3 -10 -0145 -3500989
N3HVJ3-10-OOS7-3500538
N3HVK3- 10-0077 -3 500549
N3HVK3 -10 -0078 -3500550
N3HVJ3 -10-0027 -3500551
N3HVK3 -10-002 6-3500558
N3HVK2 -10-0115-3500584
N3HVJ3 -10-0051 -3500616
N3HVJ3- 10-0046-3500617
N3HVJ3- 10 -0047 -3500618
N3HVJ3- 10-0049 -3500619
N3HVJ3- 10-0005-3500620
N3HUK3- 10-0063 -3500628
N3HUK3-10-0064-3500629
N3HVJ2 -10-0130-3500631
N3HUK3 -10 -0006-3500635
N3HVK3 -10 -0050-3500678
N3HVK3 -10-0003 -3 500679
N3HVK3- 10 -0002 -3500680
N3HVK3 -10 -0010-3500689
N3HVK3 -10 -0070-3500690
N3HVK3 -10 -007 1-3500691
N3HVK3 -10 -0079 -3 500696
N3HVK3 -10 -0032 -3500698
N3HVK2-10-009 6-3500699
N3HVK3 -10-0065-3500717
N3HVK3-10-0100-3500718
N3HVK3- 10-001 1-3500729
N3HVK3- 10-0060- 3500733
N3HVK3-10-0012-3500735
N3HUK3-10-0059 -3500736
N3HVK3-10-0020-3500739
N3HVK3 -10-0038-3500740
N3HVJ2 -10 -0106 -3 500742
N3HVK2 -10-0125-3500746
N3HVK2 -10-0124 -3500759
N3HVK3-10-0041 -3500780
N3HVK3- 10-0035-3500784
N3HVK3- 10-0066-3500785
N3HVK2- 10-0093 -3 500793
N3HUJ3 -10-0085 -3 500824
N3HVK2 -10-01 16-3 500825
N3HVK3- 10-0087- 3 500856
N3HVK3 -10-0053 -3500857
N3HVK3- 10-0048-3500858
N3HVK3-10-0124-3S00860
N3HVK3-10-0084-3500869
N3HVK3 -10-0123-3500870
N3HVK3 -10-0052-3500871
N3HVK3-10-0102 -3500876
Title Final Report
Issued
MAO I, COUNTY OF HI
LONG BEACH FOUN CA ST. UNIV.CA
ASSN MONTEREY BAY AREA GOVT CA
MERCED COUNTY CA
PHOENIX, CITY OF AZ
SAN DIEGO STATE UNIV FOUND CA
FLAGSTAFF, CITY OF AZ
CALIF PUBLIC HLTH FOUNDATIONCA
RINCON, S.L.B. MISSION IND CA
GUAM, GOVERNMENT OF GU
PIMA COUNTY AZ
QUECHAN INDIAN TRIBE AZ
TOHONO O'ODHAM NATION AZ
SONOMA STATE UNIV ACAD FOUN CA
PIMA CNTY COMM COLLEGE DIST AZ
SAN JOAQUIN, COUNTY OF CA
KERN, COUNTY OF CA
HUMBOLT STATE UNIV FOUND CA
CHUUK STATE GOVERNMENT FM
KINGS, COUNTY OF CA
NAPA, COUNTY OF CA
CW OF NOR MARIANA ISLANDS MP
CLARK COUNTY HLTH DISTRICT NV
PACIFIC BASIN DEVELOP COUN HI
SONOMA, COUNTY OF CA
ORANGE, COUNTY OF CA
ASOC NACIONAL PRO PER MAYORECA
GERBER-LAS FLORES COMM SVC CA
SALT RIVER PIMA-MAR IND COMMAZ
FRESNO, CITY OF CA
HOOPA VALLEY TRIBE CA
LOS ANGELES, CITY OF CA
HAWAII, DEPT OF AGRICULT. HI
SAN FRANCISCO, CITY & CO CA
MARICOPA ASSN OF GOVT'S. AZ
REGION 09 = 83
YAKIMA, CITY OF WA
POST FALLS, CITY OF ID
CHEHALIS, CITY OF WA
CHEHALIS, CITY OF WA
CHEHALIS, CITY OF WA
KITSAP COUNTY WA
PORT GAMBLE S ' KLALLAM WA
PORT GAMBLE S' KLALLAM TRIBE WA
KING COUNTY WA
ANCHORAGE, MUNICIPALITY OF AK
NEZ PERCE TRIBE ID
TACOMA, CITY OF WA
SPOKANE COUNTY WA
MUNI OF METRO SEATTLE WA
PORT OF FRIDAY HARBOR WA
OLYMPIA, CITY OF WA
LINN-BENTON COMM COLLEGE OR
LINN-BENTON COMM COLLEGE OR
OREGON, STATE OF OR
KLAWOCK CITY SCH DISTRICT AK
NORTH BEND, CITY OF OR
MCMINNVILLE, CITY OF OR
JAMESTOWN KLALLAM TRIBE WA
COLUM RIV INTER-TRIBAL FIS OR
SPOKANE TRIBE OF INDIANS WA
CONFED TRIBES COLVILLE RES WA
KALISPEL TRIBE OF INDIANS WA
LEWISTON, CITY OF ID
SALEM, CITY OF OR
SWINOMISH INDIAN TRIBAL COMMWA
SWINOMISH INDIAN TRIBAL COMMWA
PUYALLAP TRIBE OF INDIANS WA
QUINAULT INDIAN NATION WA
NORTHWEST IND FISHERIES COM WA
HOMER SOCIETY OF NATURAL HISAK
STILLAQUAMISH INDIAN TRIBE WA
LOWER ELWHA KLALLAM TRIBE WA
WASHINGTON, STATE OF WA
COEUR D'ALENE TRIBE OF IDAHOID
SKAGIT SYSTEM COOPERATIVE WA
FAIRBANKS NOR STAR BOROUGH AK
UPPER SKAGIT INDIAN TRIBE WA
NEZ PERCE TRIBE ID
CONFED TRIBES WARM SPRNG RE OR
PASCO SCHOOL DISTRICT NO.l WA
PORTLAND, CITY OF OR
CONFED TRIBES WARM SPRING REOR
METROPOLITAN SERVICE DIST OR
LUMMI INDIAN BUSINESS COUNCLWA
POCATELLO, CITY OF ID
CON TRIBES YAKIMA IND NATIONWA
SALEM, CITY OF OR
SALEM, CITY OF OR
TULALIP TRIBES WA
6/ 4/93
6/10/93
6/10/93
6/10/93
6/14/93
6/14/93
6/18/93
6/22/93
6/22/93
6/24/93
7/15/93
7/15/93
7/16/93
7/16/93
7/16/93
8/ 6/93
8/ 6/93
8/10/93
8/11/93
8/11/93
8/12/93
8/26/93
8/26/93
8/26/93
8/26/93
8/26/93
8/31/93
9/ 3/93
9/14/93
9/14/93
9/16/93
9/21/93
9/22/93
9/28/93
9/29/93

4/ 8/93
4/23/93
7/ 1/93
8/10/93
9/29/93
4/16/93
4/21/93
4/21/93
4/21/93
4/22/93
4/29/93
5/12/93
5/12/93
5/12/93
6/12/93
5/12/93
5/17/93
5/17/93
5/17/93
5/18/93
6/ 1/93
6/ 1/93
6/ 1/93
6/ 2/93
6/ 2/93
6/ 2/93
6/ 4/93
6/ 4/93
6/ 4/93
6/10/93
6/10/93
6/14/93
6/18/93
6/18/93
6/18/93
6/22/93
6/22/93
6/22/93
6/24/93
7/ 1/93
11 9/93
7/15/93
7/15/93
7/16/93
7/22/93
7/22/93
8/ 6/93
8/ 6/93
8/ 6/93
8/10/93
8/12/93
8/12/93
8/12/93
8/12/93
Ineligible Unsupported Unnecessary/ Efficiencies
Costs Costs Unreasonable (Funds be Put
Costs To Better Use)
0
0
0
0
0
0
0
0
0
13,341
0
0
0
0
0
0
0
0
0
0
0
44,953
0
0
0
0
0
0
0
0
0
0
6,801
0
0
86, 500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
44
                                                                                     OFFICE OF INSPECTOR GENERAl

-------
                                                                                     Questioned Costs
Assignment
Control Number
N3HVJ3 -10-0080- 3500897
N3HVK3- 10-0090-3500914
N3HVK3- 10-0086 -3500916
N3HVK3-10-0120-3500920
N3HVK3 -10-0091-3500927
N3HVK3-10-0121 -3500943
N3HVK3- 10-0106 -3500944
N3HVJ3 -10 -0104 -3500966
N3HVJ3- 10-0103 -3 500967
N3HVJ3- 10-0108- 3500968
N3HVK3 -10-0116-3500975
N3HVK3-10-0118-3500977
N3HVK3-10-0125-3500990
N3HVK3-10-0105-3500991
N3HVJ3 -10-0109 -3501001
TOTAL OF
Title
SEATTLE, CITY OF
BOISE, CITY

WA
ID
COEUR D'ALENE TRIBE OF IDAHOID
SQUAXIN TRIBE
THE SUQUAMISK TRIBE
COEUR D'ALENE TRIBE
SKAGIT SYSTEM COOPERATIVE
IDAHO DEPT OF WATER RES
IDAHO DEPT OF WATER RES
IDAHO DEPT OF LABOR & IND
NORTHWEST IND FISHER COMM
MUCKLESHOOT INDIAN TRIBE
JUNEAU, CITY & BOROUGH OF
KLAMATH TRIBE
IDAHO DEPT OF LABOR & IND
REGION 10 = 69
WA
WA
ID
WA
ID
ID
SVID
WA
WA
AK
OR
SVID

TOTAL OTHER GRANT ASSIGNMENTS
Final Report
Issued
8/19/93
8/26/93
8/26/93
8/26/93
8/31/93
9/ 3/93
9/ 3/93
9/16/93
9/16/93
9/16/93
9/21/93
9/21/93
9/29/93
9/29/93
9/30/93

506

Ineligible
Costs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5,218
15,218
631,059

Unsupported
Costs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
36,496

Unnecessary/
Unreasonable
Costs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Recommended
Efficiencies
(Funds be Put
To Better Use)

















 S. SUPERFUND GRANT ASSIGNMENTS

 E5CFP3-03-0308-3400060  SUPERFUND COOPERATIVE  AGREE  VA
 P5FGN2-03-0508-3300056  PA COOPERATIVE  AGREEMENTS    PA

              TOTAL OF REGION 03 =    2

 P5CGL2-04-0399-3100189  FL DEPT. ENVIR.  REGULATIONS  FL
 P5BGL2-04-0400-3100218  MIAMI-DADE WSA               FL
              TOTAL OF REGION 04 =   2

P5EGL1-07-0190-3100269  KANSAS DEPT OF  HEALTH

              TOTAL OF REGION 07 =   1

P5BGL2-09-0044-3100361  ARIZONA DEPT OF WTR RES.
SSBGN1-09-0132-3300037  SAN GABRIEL VALLEY MWD

              TOTAL OF REGION 09 =   2

H5BFL2-11-0030-3100398  SF-IAG FY91 HHS EXPENDITURES
H5BFL2-11-0030-3100399  SF-IAG FY91 HHS EXPENDITURES
M5BFL2-11-0028-3100400  SF-IAG FY 91 DOT COAST GUARD

              TOTAL OF REGION 11 =   3

              TOTAL SUPERFUND GRANT ASSIGNMENTS
                                              KS
                                              AZ
                                              CA
                                                     6/ 8/93
                                                     II 6/93
                                                     5/21/93
                                                     6/ 9/93
                                                     II 6/93
        9/  1/93
        4/27/93
                                                     9/30/93
                                                     9/30/93
                                                     9/30/93
                                                           10
                     266


                     266


                  108,798

                  108,798

                   17,380

                   17,380


                  212,920

                  212,920
2,806,575


2,806,575


        0

        0

   85,654

   85,654


        0

        0
                                                                             339,364
                                                                                          2,892,229
 3. OTHER CONTRACT ASSIGNMENTS
D8DML3
D8FML3
D8AML3
D8AML2
D8DML3
D8AML3
D8DML3
D8DML3
D8AML2
D8DML3-
D8DML3
D8DML3
D8DML3-
D8DML3-
D8DML3-
D8DML3-
D8EML3-
D8EML3-
D8EML3-
D8DML3-
D8DML3-
D8DML3•
D8AML3•
D8DML3-
D8DML3-
D8DML3-
D8AML3-
D8AML3-
D8AML3-
D8AML3-
D8AML3-
D8DML3-
D8AWL3-
P8DMLO-
•01-0106-3100160   SIGMA RESEARCH  CORPORATION   MA
•01-0146-3100167   EG&G DYNATREND  INC           MA
•01-0144-3100168   MONITORING  INSTRUMENTS  ENV   MA
-01-0250-3100180   ABT ASSOCIATES               MA
•01-0145-3100183   COMBUSTION  ENGINEERING  INC.  CT
•01-0149-3100195   CADMUS GROUP  INC             MA
•01-0169-3100216   METCALF & EDDY  INC.          MA
•01-0171-3100220   ABB COMBUSTION  ENGINEERING   CT
•01-0269-3100222   EASTERN RESEARCH GROUP       MA
-01-0170-3100225   COM FEDERAL PROGRAM          MA
•01-0183-3100242   FAY, SPOFFORD, &. THORNDIKE    MA
01-0179-3100243   ABB COMBUSTION  ENGR.  SYSTEM  CT
01-0181-3100244   ABB COMBUSTION  ENGR.  NUCL    CT
01-0182-3100245   WPI INC.                     MA
01-0172-3100246   DYNATREND CORPORATION       MA
01-0180-3100247   ARTHUR D. LITTLE INC.        MA
01-0177-3100248   ARTHUR D. LITTLE INC.        MA
01-0178-3100251   ARTHUR D. LITTLE INC.        MA
01-0176-3100252   INDUSTRIAL  ECONOMICS  INC.    MA
01-0175-3100253   INDUSTRIAL  ECONOMICS  INC.    MA
01-0174-3100254   CAMP DRESSER  AND MCKEE       MA
01-0190-3100257   EG&G DYNATREND               MA
01-0159-3100274   ABT ASSOCIATES               MA
01-0208-3100277   RILEY CONSOLIDATED INC.      MA
01-0207-3100283   ABT ASSOCIATES               MA
01-0197-3100286   ABB COMBUSTION  ENG. NUCLEAR  CT
01-0191-3100290   ASCENSION TECH. INC.         MA
01-0166-3100293   INTERNATIONAL FUEL CELLS     CT
01-0150-3100294   METCALF & EDDY               MA
01-0215-3100367   NORTHBRIDGE ENV. MGT. CONSU  MA
01-0216-3100368   EASTERN RESEARCH GROUP       MA
01-0261-3100370   INDUSTRIAL ECONOMICS  INC.    MA
01-0242-3100386   CADMUS GROUP                 MA
01-0067-3100305   NEW HAMPSHIRE DBS            NH
              TOTAL OF REGION 01 =  34
D8DML3-02-0138-3100166
D8FML3-02-0142-3100181
                 EBASCO SERVICES INC
                 TAMS CONSULTANTS INC.
NY
NY
       4/ 8/93
       4/29/93
       4/29/93
       5/11/93
       5/11/93
       6/ 1/93
       6/ 9/93
       6/10/93
       6/10/93
       6/11/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/18/93
       6/24/93
       7/15/93
       7/19/93
       7/19/93
       7/23/93
       7/27/93
       7/30/93
       8/ 3/93
       9/ 3/93
       9/ 7/93
       9/ 8/93
       9/24/93
       8/10/93
4/29/93
5/11/93
         *The dollar value of contract audits have  not  been  shown.
         Public disclosure of the dollar value of financial  recom-
         mendations could prematurely reveal the Government's
         negotiating positions or release of this information  is
         not routinely available under the Freedom  of  Information
         Act.  The number of these reports and dollar  value  of the
         findings have been included in the aggregate  data displayed
         below.  Such data individually excluded in this  listing will
         be provided to the Congress under separate memorandum within
         30 days of the transmittal of the semiannual  report to the
         agency head.  The transmitted data will contain  appropriate
         cautions regarding disclosure.
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                      45

-------
                                                                        Questioned Costs
Assignment
Control Number
D8BML3 -02-0143 -3100182
D8FML3 -02 -0145-3100186
D8CML3-02-0116-3 100221
D8DML3-02-0159-3100261
D8DML3 -02-0194-3100348
D8DML3 -02 -0193 -3100350
D8AML3-02-0178-3100354
D8EML3 -02 -0269-3100385
D8EMN3 -02 -0152-3300052
E8AZP3-02-0156-3400083
P8AXP3-02-0113 -3400044
P8AXP3-02-0126-3400047
P8AXP3-02-0127-3400055
P8AXP3-02 -0136-3400065
TOTAL OF
D8AML3 -03 -0235-3100185
D8AML3 -03-0159-3100234
D8AAL3 -03 -0100-3 100235
D8ABL3 -03 -0246-3 100238
D8APL3 -03-0268-3100239
D8APL3 -03 -0223 -3 100240
D8AML3 -03 -0336-3 100327
D8AML3-03-0313-3100328
D8AWL3-03 -0318-3100329
D8AML3-03-0321-3100332
D8AML3-03-03 17-3100333
D8AML3 -03-0238-3100334
D8AWL3 -03 -0276-3 100335
D8AML3 -03-0311-3 100337
D8AML3-03-0333-3100338
D8AML3 -03 -0347 -3100339
D8AML3 -03-0309 -3100342
D8AWL3-03 -0278-3100344
D8AML3-03 -03 10-3100345
D8AWL3-03-0277-3100346
D8AML3-03-0249-3100347
D8AAL3-03-0346-3100349
D8AML3 -03 -0345 -3100351
D8AML3-03-0359-3100352
D8APL3-03 -0391-3100376
D8APL3 -03 -0388-3100378
D8APL3 -03-0386-3100401
D8AML3-03-0358-3100402
P8DML2-03-0365-3100159
TOTAL OF
D8BML3-04 -0252-3100171
D8BML3 -04 -0256-3 100 172
D8BML3 -04 -0255-3 100173
D8BML2 -04 -0227 -3 100174
D8CML3 -04 -0270-3 100 191
D8BML3 -04 -0094 -3 100194
D8AML3 -04 -0233 -3 100197
D8BML3-04-0052-3100198
D8BML3-04-0274-3100199
D8BML3 -04-0273-3100200
D8BML3 -04-0053-3100201
D8BML3 -04 -0272 -3 100202
D8BML3 -04 -0282 -3 100207
D8AML3-04 -0257-3 100223
D8EML3 -04 -0258-3 100224
D8CML3 -04 -0247-3 100249
D8CML3 -04 -0246- 3 100250
D8AML3 -04 -0285 -3100273
D8AML3-04-0286-3100292
D8AML3 -04 -0289 -3 100297
D8CML3-04-0261 -3100310
D8AML3-04-0299-3100311
D8AML3-04-0291-3100314
D8AML3 -04 -0306-3 100324
D8EML3-04-0325-3100364
D8AML3-04-0307-3100369
D8EML3 -04 -0330 -3100371
D8CML3 -04 -0288-3100380
D8EML3-04-0344-3100381
D8EML3 -04-0343-3 100382
D8AML3-04-0314-3100383
TOTAL OF
D8BML3-05-0184-3100178
08CML2 -05-0158-3100262
D8AML3-05-0236-3100263
D8AML3-05-0291-3100300
D8AML3-05-0292-3 100301
D8AML3-05-0259-3100302
D8AML3-05-0278-3100303
D8AML3-05-0299-3100306
D8AML3 -05-0293-3100307
Title
FOSTER WHEELER CORP NJ
EBASCO SERVICES INC. NY
SYRACUSE RESEARCH CORP NY
EBASCO SERVICES INC, NY
SYRACUSE RESEARCH CORP. NY
SYRACUSE RESEARCH CORP. NY
SYRACUSE RESEARCH NY
SYRACUSE RESEARCH CORP. NY
EBASCO SERVICES INC. NY
ECOLOGY & ENVIRONMENT NY
ECOLOGY & ENVIR NY
ECOLOGY & ENVIR NY
ECOLOGY & ENVIR NY
ECOLOGY & ENVIR NY
REGION 02 = 16
VERSAR VA
AVANTI CORPORATION VA
ROY F. WESTON PA
VERSAR VA
VISTA COMPUTER SERVICES VA
NCI INFORMATION SYSTEM VA
WESTAT MD
DATEX, INC. VA
MAR INC. MD
LABAT ANDERSON VA
SCIENTIFIC CONSULTING GROUP MD
THE BIONETICS CORPORATION VA
ENVIRONMENTAL MANAGEMENT MD
ENGINEERING COMPUTER OPTEC MD
SOLUTIONS BY DESIGN VA
TRAINING RESOURCES GROUP VA
BOOZ ALLEN HAMILTON MD
WADE MILLER ASSOCIATES
TECHNICAL RESOURCES, INC. MD
TOXACHEMICA INTERNATIONAL MD
RESOLVE, INCORPORATED DC
SCIENTIFIC & COMMERCIAL SYS . VA
PREMIER, INC. VA
BREGMAN & COMPANY, INC. MD
SYSTEMS INTEGRATION GROUP MD
ONE NUMBER INFORMATION INC. VA
GARCIA CONSULTING INC. VA
ENVIRON VA
ASCI CORPORATION VA
REGION 03 = 29
MANTECH NC
JONES OPERATIONS & MAINT. NC
JONES OPERATIONS & MAINT. NC
JONES OPERATIONS & MAINT. NC
ENTROPY ENVIRONMENTALISTS NC
RESEARCH INFO ORGANIZERS NC
MANTECH ENV. RESEARCH SVC. NC
RESEARCH INFO. ORGANIZERS NC
ENTROPY ENVIRONMENTALISTS NC
ENVIRONMENTAL SCIENCE & ENG FL
RESEARCH INFO. ORGANIZERS NC
INTEGRATED LABORATORY SYSTEMNC
SYSTEMS RESEARCH & DEV. NC
RAO ENTERPRISE NC
MANTECH ENV. RESEARCH NC
MANTECH NC
MANTECH NC
GENERAL OFFSHORE CORPORATIONFL
SEAWARD SERVICES FL
MANTECH NC
MANTECH NC
ENVIRONMNETAL QUALITY MGMT. TO
RESEARCH i EVALUATION ASSOC.NC
MIT ASSOC. TN
MANTECH ENVIRONMENTAL TECH NC
CALL HENRY, INC. FL
CONTINENTAL SHELF ASSOCIATESFL
RESEARCH & EVALUATION ASSOC.NC
ADVANCED SYSTEMS TECH GA
AMBAC INTERNATIONAL SC
AMBAC INTERNATIONAL SC
REGION 04 = 31
TARITAS PS MI
TARITAS PS MI
BATTELLE OH
AUTO TESTING LAB OH
INTERNATIONAL CONS OH
AT KEARNEY IL
NEXUS TSC IL
BATTELLE OH
RIGO & RIGO OH
Final Report
Issued
5/11/93
5/20/93
6/10/93
6/28/93
8/26/93
8/26/93
8/27/93
9/21/93
6/ 9/93
9/ 7/93
4/ 1/93
4/14/93
5/24/93
7/ 2/93

5/13/93
6/16/93
6/16/93
6/16/93
6/16/93
6/16/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/26/93
8/26/93
8/26/93
8/26/93
8/26/93
8/26/93
8/26/93
8/26/93
9/17/93
9/17/93
9/30/93
9/30/93
4/ 5/93

4/30/93
S/ 4/93
5/ 4/93
S/ 4/93
5/24/93
5/27/93
6/ 1/93
6/ 1/93
6/ 1/93
6/ 1/93
(,/ 2/93
6/ 2/93
&/ 4/93
6/11/93
6/11/93
6/18/93
6/18/93
7/14/93
7/30/93
8/ 4/93
8/12/93
8/13/93
8/13/93
8/23/93
9/ 3/93
9/ 8/93
9/ 8/93
9/20/93
9/20/93
9/20/93
9/20/93

5/ 5/93
6/28/93
6/28/93
8/ 6/93
8/ 6/93
8/ 6/93
8/ 6/93
8/10/93
8/10/93
Recommended
Ineligible Unsupported Unnecessary/ Efficiencies
Costs Costs Unreasonable (Funds be Put
Costs To Better Use)






















































































46
                                                                                   OFFICE OF INSPECTOR GENERAL

-------
Assignment
Control Number
                         Title
                                                   Final Report
                                                       Issued
                                                                                       Questioned Costs
                                                              Ineligible
                                                                Costs
                                                                Unsupported
                                                                      Costs
                                                              Unnecessary/
                                                              Unreasonable
                                                                    Costs
                                                           Recommended
                                                              Efficiencies
                                                            (Funds be Put
                                                           To Better Use)
D8EMN3-05-0306-3300060
D8EHN3-05-0306-3300062
E8AZP3-05-0307-3400078
E8AXP3-05-0317-3400079
E8AWP3-05-0350-3400090
P8AXP3-05-0222-3400049
                  AT KEARNEY (D/S)             IL
                  AT KEARNEY (D/S)             IL
                  PRC EMI (DOE)                IL
                  PRC EMI (NAVY CLEAN4)        IL
                  PRC EMI (GROUND WATER)       IL
                  WW ENG                       MI
               TOTAL OF REGION 05 =  15
D8AML3-
D8AML3-
D8AML3-
D8BML2-
D8CML3-
D8AML3-
D8AML3-
D8AML3-
D8AML3-
D8AML3-
D8BML2-
D8CML3-
D8EML3-
D8AML3-
D8CML3-
06-0079-
06-0103-
06-0104-
06-0075-
06-0064-
•06-0129-
06-0131-
06-0154-
06-0151-
06-0152-
06-0126-
06-0094-
06-0194-
06-0155-
06-0093-
3100170
3100188
3100190
3100192
3100203
3100271
3100272
3100309
3100312
3100313
3100323
3100365
3100366
3100372
3100390
EG&G AUTOMOTIVE  RESEARCH
LOCKHEED
LOCKHEED
LOCKHEED
RADIAN CORPORATION
SOUTHWEST RESEARCH
RADIAN
         TX
         TX
         TX
         TX
         TX
INSTITUTETX
         TX
LOCKHEED ENV.  SYS  &  TECH
RADIAN
TECHNICIAN'S CO.
GEOSCIENCE CONSULTANTS LTD
LOCKHEED
LOCKHEED ENVIRONMENTAL SYS
EG&G AUTOMOTIVE RSCH INC,
RADIAN
         TX
         TX
         TX
         NM
         TX
         TX
         TX
         TX
               TOTAL  OF REGION 06 =  IS
D8AML3-07-0133-3100289   FRANKLIN ASSOCIATES LIMITED  KS
               TOTAL  OF REGION 07 =   1

D8ABL3-08-0056-3100165  WESTERN RESEARCH
               TOTAL  OF REGION 08 =
                                                     WY
              TOTAL OF REGION  23  =  12
              TOTAL OTHER CONTRACT ASSIGNMENTS
                                             8/27/93
                                             8/27/93
                                             9/ 2/93
                                             9/ 2/93
                                             9/23/93
                                             5/12/93
4/30/93
5/21/93
5/21/93
5/25/93
6/ 2/93
7/ 9/93
7/ 9/93
8/12/93
8/13/93
8/13/93
8/23/93
9/ 3/93
9/ 3/93
9/10/93
9/29/93
                                                             7/23/93
                                                             4/20/93
D8BML3-09-0151-3100164
D8CPL2-09-0125-3100177
D8CML3-09-0128-3100187
D8CAL3-09 -0118-3 100193
D8BML3 -09 -0185 -3100206
D8AAL3 -09 -0160-3 1002 13
D8APL3-09-0163-3100214
D8CAL2-09 -0247 -3 100219
D8CAL3 -09-0166-3100228
D8BML3-09 -0193-3100229
D8BML3-09-0194-3100230
D8AAL3-09-0147-3100260
D8AAL3 -09 -0208-3100295
D8AML3-09 -0202-3 100296
D8AML3 -09 -0201 -3 100320
D8AAL3 -09-0209-3100355
D8AWL3-09-0210-3100356
D8ABL3-09-023 1-3 100360
D8ABL3-09 -0233 -310037 5
D8ABN3-09 -0232 -3300064
D8APP3-09-0200-3400063
H8ABL3 -09-0112-3100176
S8AWN2 -09 -0344 -3 300065
TOTAL OF
D8BML3-10-0094 -3100205
E8AZL3- 10-0073 -3 1002 15
E8AWL3- 10-0 137 -3 100389
P8EXL2 -10-0126- 3 100210
TOTAL OF
E8AML3 -22 -0289 -3 100304
E8AZN3-22-0366-3300073
E8AXP3 -22 -0328- 3400085
TOTAL OF
D8AML3 -23 -0283 -31 00308
E8AXP3 -23 -001 1-3400075
E8CXP3 -23 -0009 -3400092
P8BMP1 -23 -0339 -3400050
P8BMPO-23 -0175-3400053
P8BMPO-23 -0177-3400062
P8CMP2 -23 -0180 -3400071
P8CMP2 -23 -0176 -3400072
P8CMP2-23 -0183 -3400073
P8CMP2-23 -0181 -3400074
P8CMP2 -23 -0177 -3400077
P8CMP2-23 -0179 -3400082
GEO/RESOURCE DC FY89-91
AQUA TERRA FINAL
ACUREX ENVL CORP
SAIC FINAL
ECOS, INC FYE MARCH '89 OH
IT P. A.
SAIC P. A. MARITME SVCS
ENGINEERING SCIENCE FINAL
SRI INTERNATIONAL FINAL
ECOS, INC FY1990 OH&DC
ECOS, INC. FY 1991 OH £ DC
JACOBS P. A.
ACUREX P. A.
ACUREX COST VAR PROPOSAL
S -CUBED MAXWELL LAB P. A.
ENERGY & ENVIRONMENTAL RES
TETRA TECH P. A.
AUTOMOTIVE TESTING PA
ED PINK RACING ENGINS PA
EFI TECHNOLOGY PA
SAIC/MARITIME ACCG SYSTEM
DESERT RESEARCH INSTITUTE
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
NV
MONTEREY RWP CA ASSIST AUDITCA
REGION 09 = 23
PTI ENVIRONMENTAL SVCS 89OH
TEAM SUPPORT P. A.
CH2M PA
CH2M CAS STMT PEVIS 8/18/92
REGION 10 = 4
ASCI D201848M1
ICF DE-RP01-92DP70067
ICF DTRS-57-92-R00026
REGION 22 = 3
EQM (AIR)
OHM REM (ARMY)
OHM REM (EVEREADY BATTERY)
PEI ASSOC FY 89
PEI ASSOC FY 86
PEI ASSOC FY 87/88
PEI ASSOC (68-02-3546)
PEI ASSOC (68-01-6310)
PEI ASSOC (68-02-3760)
PEI ASSOC (68-02-3554)
PEI ASSOC (68-02-3173)
PEI ASSOC (68-02-3512)

WA
OR
OR
OR



VA

OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
4/19/93
5/ 5/93
5/20/93
5/27/93
6/ 3/93
6/ 8/93
6/ 8/93
6/ 9/93
6/15/93
6/15/93
6/15/93
6/25/93
8/ 3/93
8/ 3/93
8/17/93
8/27/93
8/27/93
9/ 1/93
9/15/93
9/15/93
6/30/93
5/ 5/93
9/16/93

6/ 3/93
6/ 8/93
9/28/93
6/ 4/93

8/ 9/93
9/29/93
9/ 8/93

8/10/93
8/31/93
9/23/93
5/13/93
5/14/93
6/14/93
8/25/93
8/26/93
8/27/93
8/27/93
9/ 1/93
9/ 3/93
                                                          184
                                                                            3,114,511
                                                                                           5,441,999
                                                                                                                           40,455,060
  APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                        47

-------
Assignment
Control Number
                        Title
                                                   Final Report
                                                       Issued
                                                                                      Questioned Costs
                                                                      Ineligible
                                                                        Costs
Unsupported
     Costs
Unnecessary/
Unreasonable
      Costs
Recommended
   Efficiencies
 (Funds be Put
To Better Use)
 9. SUPERFUND  CONTRACT ASSIGNMENTS
D9AJL3-01-0156-3100275
E9AJP3-01-0155-3400064
                  HYDRAULIC & WATER RESOURCES MA
                  TRC  ENVIRONMENTAL CORP      MA
D9DFL3-
D9EGL3-
D9DFL3-
D9EFL3-
D9DFL3-
D9DFL3-
D9EFL3•
D9DFL3-
D9DFL2-
D9AKL3-
 D9AJL3
 D9AJL3
 D9AJL3
 D9AJL3
 D9AFL3
 D9AFL3
 D9AJL3
 D9AJL3
 D9AJL3
 D9AJL3
 D9AJL3
 D9AJL3
 P9DFN2
 P9EKN3
 P9EKN3
 P9AKN3
                                  INC.
                                  INC.
        TOTAL  OF REGION 01 =   2

-02-0153-3100226  EBASCO SERVICES INC.
•02-0169-3100276  EBASCO SERVICES INC.
•02-0174-3100278  EBASCO SERVICES INC.
-02-0176-3100279  EBASCO SERVICES
•02-0175-3100280  EBASCO SERVICES
•02-0162-3100281  EBASCO SERVICES INC.
-02-0173-3100282  EBASCO SERVICES INC.
-02-0161-3100285  EBASCO SERVICES INC.
-02-0271-3100288  S&D ENVIRONMENTAL SERVICES
-02-0245-3100387  POSTER WHEELER US CORP.

        TOTAL  OF REGION 02 =  10

-03-0253-3100231  AE ENVIRONMENTAL SERVICES
-03-0241-3100232  JOHN HEMENWAY ASSOCIATES
-03-0273-3100233  LAW OFFICE OF CLAUDIA BARBERMD
-03-0252-3100241  RESOURCE APPLICATIONS, INC
-03-0334-3100330  BIONETICS
-03-0335-3100331  HUGHES STX CORPORATION
-03-0254-3100336  KEVRIC COMPANY
-03-0240-3100340  HYDROGEOLOGIC, INC.
-03-0244-3100341  ISSI INC.
-03-0239-3100343  TECHLAW INC.
-03-0245-3100353  FINANCIAL INVESTIGATIONS
-03-0362-3100377  EXECUTIVE RESOURCE
-03-0501-3300040  GUARDIAN
-03-0271-3300042  ICF INC.  - ICF TECH. INC.
-03-0112-3300043  ICF INC. ICF INTERNATIONAL
-03-0067-3300045  ICF-INC.

        TOTAL  OF REGION 03 =  16
 D9EKL3-04-0320-3100315
 D9EKL3-04-0319-3100316
 D9AKL3-04-0284-3100317
 E9AHP3-04-0232-3400056
                  TECHNOLOGY PLANNING AND MGMTNC
                  TECHNOLOGY PLANNING AND MGMTNC
                  TECHNOLOGY PLANNING & MGMT.
                  WESTINGHOUSE ERCS PROPOSAL
 D9AML3-
 D9AKL3-
 E9EGP3-
 E9AJP3-
 E9AJP3-
 E9AJP3-
 E9AJP3-
 E9AJP3-
 E9EFP3-
 E9EFP3-
 P9DGL1-
                                      INC
       TOTAL OF  REGION  04  =

05-0245-3100217   LIFE SYSTEMS
05-0247-3100299   AT KEARNEY
05-0072-3400046   PRC EMI D/S Al
05-0212-3400048   PRC EMI
05-0233-3400051   PRC EMI
05-0234-3400052   PRC EMI
05-0257-3400057   PRC EMI
•05-0258-3400058   PRC EMI
05-0285-3400066   PRC EMI D/S A2
05-0341-3400091   PRC EMI D/S A3
•05-0123-3100184   DONOHUE ARCS1 FY 88/89
                          (RIO ENF SUPP)
                          (R8 ENF SUPP)
                          (R9 ENF SUPP)
                          (R2 ENF SUPP)
                          (R5 ENF SUPP)
               TOTAL OF REGION 05 =  11
 D9AJL3-07-0124-3100209
 D9CKL3-07-0038-3100258
 D9CKL3-07-0037-3100259
 D9AKL2-07-0001-3100325
                  DPRA INC.
                  A-S-K ASSOCIATES
                  A-S-K ASSOCIATES
                  MIDWEST RESEARCH INSTITUTE
               TOTAL OF REGION 07 =
 D9AJL3-08-0072-3100208
 D9AJL3-08-0078-3100212
                  AGEISS ENVIRONMENTAL CORP.
                  AGEISS ENVIRONMENTAL CORP
 D9CGL3-
 D9AJL3-
 D9BGL3-
 D9BGL2-
 D9BGL3-
 D9CGL2-
 D9BGL2-
 D9AJN3-
 D9AHN3-
        TOTAL  OF REGION 08 =   2

09-0146-3100162  SAIC FINAL
09-0175-3100227  SAIC P.A.  SUB TO KEARNEY
09-0119-3100268  SAFETY SCIENCE OH&DC FY83-87CA
09-0158-3100362  ENGINEERING SCI. OHSDC 88
09-0257-3100363  THE RAND CORP OH & DC FY90
09-0262-3100373  BECHTEL NATIONAL FINAL
09-0345-3100379  JONES & STOKES OH&DC FY'91
09-0132-3300044  SAIC P.A.
09-0143-3300053  INTERNATIONAL TECHNOLOGY

        TOTAL  OF REGION 09 =   9
 E9BHP2-10-0024-3400095
 P9EGP2-10-0129-3400061
                  RES-SELF INSURANCE
                  RES INITIAL CAS DISCL STM
               TOTAL OF REGION 10 =
 E9EHP2-23-0422-3400069
 E9EHP2-23-0422-3400070
 E9EHP3-23-0003-3400081
                  OHM REM DATA RELIABILITY
                  OHM REM DATA RELIABILITY
                  OHM REM CAS 401
                                                     7/15/93
                                                     7/ 2/93
NY
NY
NY
NY
NY
NY
NY
NY
NJ
NJ
WV
PA
IMD
VA
VA
MD
MD
VA
VA
VA
DC
VA
DE
VA
VA
VA
TOC
?NC
NC
GA
OH
IL
IL
IL
IL
IL
IL
IL
IL
IL
WI
KS


MO
CO
CO
CA
CA
'CA
CA
CA
CA
CA
CA
CA
OR
OR
OH
OH
OH
6/11/93
7/19/93
7/19/93
7/19/93
7/19/93
7/19/93
7/19/93
7/23/93
7/23/93
9/24/93
6/16/93
6/16/93
6/16/93
6/16/93
8/25/93
8/25/93
8/25/93
8/25/93
8/25/93
8/26/93
8/27/93
9/17/93
5/ 4/93
5/12/93
5/12/93
5/21/93
8/13/93
8/13/93
8/13/93
5/26/93
6/ 9/93
8/ 6/93
4/ 9/93
5/ 3/93
5/13/93
5/13/93
6/ 1/93
6/ 1/93
11 8/93
9/23/93
5/12/93
6/ 4/93
6/25/93
6/25/93
8/24/93
6/ 4/93
6/ 7/93
4/13/93
6/14/93
6/30/93
9/ 1/93
9/ 2/93
9/10/93
9/20/93
5/20/93
6/29/93
9/29/93
6/ 8/93
8/23/93
8/23/93
9/ 2/93
   48
                                                                                                  OFFICE OF INSPECTOR GENERAL

-------
                                                                                    Questioned Costs
Assignment Title
Control Number
Final Report
Issued

Ineligible
Costs

Unsupported
Costs

Unnecessary/
Unreasonable
Costs
Recommended
Efficiencies
(Funds be Put
To Better Use)
P9DHL2-23-0260-3100267
P9BGL1-23-0278-3100298
P9DHL1-23-0340-3100403
P9BHP2-23-0459-3400087
P9BHP2-23-0142-3400089
OHM REM FY 91               OH     6/30/93
DONOHUE ARCS1 PM            WI     8/ 4/93
PEI ASSOC FY 89             OH     9/30/93
OHM REM ERCS2 Zl FY 91      OH     9/17/93
PEI ASSOC ERCS2 23 FY 88/89 OH     9/20/93
              TOTAL OF  REGION  23  =
                                     8
              TOTAL SUPERFUND CONTRACT ASSIGNMENTS

              TOTAL ASSIGNMENTS  =    851
                                                  3,872,053

                                                 62,039,087
     9,764

58,069,971
                                                                                                       25,245,911
 6,389,649

46,844,709
  APRIL 1. 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                    49

-------
      Appendix  2 -  Reports  Issued Without Management Decision
   THE INSPECTOR GENERAL ACT REQUIRES A SUMMARY OF EACH REPORT ISSUED BEFORE THE COMMENCEMENT OF THE REPORTING
   PERIOD FOR WHICH NO MANAGEMENT DECISION HAS BEEN MADE BY THE END OF THE REPORTING PERIOD (INCLUDING THE DATE AND
   TITLE OF EACH SUCH REPORT), AN EXPLANATION OF THE REASONS SUCH MANAGEMENT DECISION HAS NOT BEEN MADE, AND A
   STATEMENT CONCERNING THE DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION ON EACH SUCH REPORT. (The IG
   provides the summary, the date and title of each such report. The Agency provides the explanation of the reasons why such management decision has
   not been made, and a statement concerning the desired timetable for achieving a management decision on each such report.)

    IG Followup Status Codes of Agency's Response at 9/30/93:

    1. No Response
    2. Incomplete Response Received
    3. Proposed Response Received Awaiting Final Determination
    4. Proposed Response Received in Review Process
    5. Final Response Received in Review Process
    6. Resolution Under Negotiation in Headquarters
Assignment Control
Number
                         Title
Final  Report
      Issued
Assistant Administrator for Administration Resources Management

 E1XZG2-13-0046-3400033  WORKMANS COMP                 3/24/93
  Summary!  EPA HAS NOT ADEQUATELY MANAGED/EXECUTED ITS FECA
RESPONSIBILITIES;  VERIFIED/CORRECTLY ASSIGNED FECA COSTS;
DESIGNATED RESPONSIBILITY FOR FECA FUNCTIONS; SET UP A LIGHT
DUTY/RETURN TO WORK PROGRAM; PREPARED FECA POLICY/GUIDANCE;  SET UP
NATIONAL OVERSIGHT; ADEQUATELY TRAINED PERSONNEL.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl  RESOLUTION WAS DELAYED DUE TO OARM ESTABLISHING A SENIOR
LEVEL  COMMITTEE AND WORKGROUP TO WORK THROUGH THE OIG'S ISSUES AS
WELL AS OTHER ISSUES RELATED TO WORKER'S COMPENSATION.  THE OIG
DID NOT ACCEPT THE PROGRAM OFFICE'S ORIGINAL RESPONSE.  THE
PROGRAM OFFICE PROVIDED A REVISED RESPONSE ON OCTOBER 1, 1993.

  . DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! THE OIG
AND PROGRAM OFFICE REACHED RESOLUTION ON OCTOBER 5, 1993.

 10 FOLLOWUP STATUS AS OF  9/30/93    [5]  (The response was both
received and Che report was closed out on October 5, 1993 )

 E1AMP2-20-0019-3400039  OIL SPILL TRUST FUND          3/29/93
  SummaryI  EPA DID NOT HAVE ADEQUATE CONTROLS OR PROCEDURES TO
PROPERLY ACCOUNT FOR $18.4 MILLION AVAILABLE IN FISCAL 1992 FROM
THE OIL SPILL LIABILITY TRUST FUND.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl  RESOLUTION WAS DELAYED DUE TO OARM FULFILLING THE OIG'S
RECOMMENDATION FOR CREATING A STANDARD OPERATING PROCEDURE.
ALTHOUGH THE OIG DID NOT REQUIRE SIGNATURES, OARM FELT THE
DOCUMENT SHOULD BE FORMALIZED WITH THE APPROPRIATE SIGNATURES
BEFORE SENDING THE FINAL RESPONSE TO THE OIG.  THE PROGRAM OFFICE
IS AWAITING THE OIG'S REVIEW OF THE PROPOSED RESPONSE PROVIDED ON
OCTOBER 8, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
RESOLUTION WILL BE DETERMINED ONCE THE OIG COMPLETES ITS REVIEW.
Assignment control
Number
                                                                                        Title
Final Report
     Issued
                Assistant Administrator for Research & Development

                 E6ABF2-11-0032-3100153  USE OF CRADA BY EMSL-CIN       3/31/93
                  Summary! CRADAS ENTERED BY EMSL-CINCINNATI WERE AN INAPPROPRIATE
                USE OF THE FTTA,  CREATED POTENTIAL FOR GOVERNMENT CONTROLLED
                MONOPOLY AND PRESENTED A CONFLICT BETWEEN EPA'S NEED TO ADMINISTER
                FAIR AND EQUITABLE REGULATION AND THE DESIRE  TO  INCREASE REVENUE
                FROM SALES TO THE REGULATED COMMUNITY.

                  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEH
                MADEi THE PROGRAM OFFICE PROVIDED A RESPONSE TO THE OIG ON JULY ',
                1993.  THE OIG HAD DIFFICULTY WITH THE RESPONSE REGARDING THE EIA
                MARKET SURVEY.   THE OFFICE AND OIG ARE CURRENTLY IN NEGOTIATION
                AND THE OFFICE  IS DEVELOPING A POSITION PAPER TO  HELP CLARIFY TIE
                ISSUES.

                  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                RESOLUTION IS EXPECTED BY MARCH 31, 1994.

                 IG FOLLOWUP STATUS AS OF  9/30/93    [2]

                Assistant Administrator for Solid Waste & Emergency Response

                 E1SJE2-02-0063-3100152  SUPERFUND CAPPING REPORT  NY   3/31/3
                  Summary!  THE AGENCY'S USE OF RPS TO CLEANUP SUPERFUND SITES HS
                BEEN HAMPERED BY NUMEROUS PROBLEMS, INCLUDING DELAYS IN INITIATIG
                CLEANUPS, LACK OF AGGRESSIVE ENFORCEMENT ACTIONS, AND INEFFECTIE
                MANAGEMENT OF CONTRACTORS.

                  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BBB
                MADEl THE PROGRAM OFFICE MET WITH THE OIG ON SEPTEMBER 1, 199J
                THE OIG ASKED FOR ADDITIONAL CLARIFICATION  TO THE  PROGRAM OFFICES
                RESPONSE SENT IN JULY.  THE PROGRAM OFFICE PROVIDED WRITTEN
                CLARIFICATION TO THE OIG ON SEPTEMBER 28,  1993.  THE OIG HAS
                REVIEWED THE RESPONSE.

                  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
                RESOLUTION IS EXPECTED BY OCTOBER 29, 1993.
 IG FOLLOWUP STATUS AS OF  9/30/93
October 19, 1993.I
                                   I1J (This report was closed on
                                                                10 FOLLOWUP STATUS AS  OF  9/30/93
                                                                                                  IS]
   50
                                           OFFICE OF INSPECTOR GENERAL

-------
Assignment
Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
Offlca  ot  General Counsel

 E1JBF1-05-0175-2100443  DOLUTH LAB                 MN   II 7/92
  Summaryi   ALL FINDINGS AND RECOMMENDATIONS HAVE  BEEN CLEARED
EXCEPT  ONE OGC FINDING.  ETHICS OFFICIALS ARE NOT  DOCUMENTING, OR
REQUIRED TO DOCUMENT,  SIGNIFICANT ETHICS ADVICE.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE  OIG ACCEPTED THE OFFICE OF ADMINISTRATION AND RESOURCES
MANAGEMENT AND THE OFFICE OF RESEARCH AND DEVELOPMENT'S RESPONSE
TO THE  AUDIT RECOMMENDATIONS.  THE OFFICE OF GENERAL COUNSEL (OGC)
HAS ADDRESSED THREE OF THE FOUR OUTSTANDING ISSUES.   THE OIG IS
EVALUATING OGC'S POSITION ON THE LAST ISSUE.  AN OIG DECISION
REGARDING  THE LAST ISSUE IS EXPECTED BY OCTOBER 29,  1993.

  « DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION CANNOT BE DETERMINED AT THIS TIME.
 I(3 FOLLOWUP  STATUS AS OF  9/30/93
                                       [1]
 Contracts Management Division Cincinnati

 D8CML3-02-0124-3100138  SYRACUSE RESEARCH CORP    NY   3/19/93
  Summaryi   $826,813  REPRESENTS ALLOWABLE COSTS FOR  THE BASIC
CONTRACT, $940,493  REPRESENTS ALLOWABLE COSTS UNDER  OPTION 1; AND
$1,116,603 REPRESENTS ALLOWABLE COSTS UNDER OPTION 2.  THE FINAL
VOUCHER  INCLUDED $50,305 OF OTHERWISE ALLOWABLE COSTS IN EXCESS OF
CONTRACT LIMIT  FOR  OPTION 2.

  - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE CINCINNATI  COST ADVISORY BRANCH HAS DELAYED ISSUING ITS
REPORT DUE TO HIGHER  PRIORITY WORKLOAD.  THE OFFICE  EXPECTS TO
RESOLVE  ALL  ISSUES  REGARDING THIS AUDIT.
                                             D8CML3-03-0147-3100107   VERSAR                    VA    2/22/93
                                              Summaryi  TOTAL FIXED FEE ALLOWABLE IS $129,881.  TOTAL FIXED FEE
                                            INCENTIVE PAYABLE IS  $214,539.   THE FEE NEEDS TO BE ADJUSTED.

                                              - EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                                            MADEi THE OIG AND RTF CONTRACT  OFFICE ARE CURRENTLY IN
                                            NEGOTIATIONS.  THERE  IS  A DISPUTE CONCERNING THE AMOUNT  OF THE
                                            FIXED FEE EARNED.

                                              - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
                                            RESOLUTION IS EXPECTED BY DECEMBER 31, 1993.
                                             IG FOLLOWUP STATUS AS  OF   9/30/93
                                                                                  [1]
                                             D8AML2-04-0335-2100440   ALPHA-GAMMA TECHNOLOGIES INCNC  6/25/92
                                              Summary!   (PREAWARD AUDIT UNDER NEGOTIATIONS)

                                              - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            HADEi THE MANAGEMENT DECISION  IS DELAYED DUE TO THE COMPLEXITY OF
                                            THE TECHNICAL EVALUATION.

                                              • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi
                                            ANTICIPATE AWARD OF CONTRACT BY DECEMBER 15, 1993.
                                             10 FOLLOWUP STATUS AS OF   9/30/93
                                                                                  [1]
                                             D8AML2-04-0242-2100467  EC/R INC.
                                              Summary:   (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                                                                  NC 7/10/92
                                              - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEi THE MANAGEMENT DECISION  IS DELAYED DUE TO THE COMPLEXITY OF
                                            THE TECHNICAL EVALUATION.
  - DESIRED  TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi
RESOLUTION IS  EXPECTED BY JANUARY 18, 1994.
  IG FOLLOWUP  STATUS AS OF  9/30/93
                                       [1]
                                              - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                            ANTICIPATE AWARD OF CONTRACT  BY DECEMBER 15, 1993.
                                                                       IG FOLLOWUP STATUS AS  OF  9/30/93
                                                                                                            [1]
 D8AML3-05-010B-3100093  AUTO TESTING LAB
  Summaryt   (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                    OH
                                                          2/  3/93
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi RESOLUTION WAS DELAYED DUE TO THE CINCINNATI CONTRACT
OFFICE'S REQUEST FOR AN ASSIST AUDIT.  FINAL NEGOTIATION  WAS
REACHED AND THE CONTRACT WAS AWARDED ON SEPTEMBER 30, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi  THE
AWARD OF THE CONTRACT CLOSED THIS AUDIT.

 IG FOLLOWUP STATUS AS OF  9/30/93   [1]  (when the Agency provided the
above status on October 20,  1993 had not received a copy of the award document.
Upon receipt of the award document the report can be removed from the followup
process )


 Contracts Managamont Division RTF

 D8CAL2-03-0433-2100604  ENERGY AND ENVIRONMENTAL  VA  9/10/92
  Summaryi  THE CONTRACTOR'S FINAL VOUCHER INCLUDED  COSTS IN
EXCESS OF CONTRACT LIMITATIONS TOTALING $51,622.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi RESOLUTION WAS DELAYED DUE TO THE RTF CONTRACT OFFICE
ENCOUNTERING PROBLEMS IN OBTAINING COST OVERRUN DOCUMENTATION  AS
WELL AS DISAGREEING WITH THE CALCULATION OF FEE ADJUSTMENT.  THE
OFFICE AND OIG  HAVE REACHED RESOLUTION.

  » DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi  THE OIG
CLOSED THIS AUDIT ON OCTOBER 14,  1993.

IO FOLLOWUP STATUS AS OF  9/30/93   [1]  (OIO received  the proposed
response on October 12, 1993 and closed the audit after receiving the final
response on October 14, 1993.)


 D6CPL2-03-0432-2100620  MIRANDA ASSOCIATES INC    DC  9/16/92
  Summaryi  DCAA QUESTIONED $278,979 DUE TO 1) THE LIMITATIONS OF
FUNDS CLAUSE, 2)  OVERSTATED OVERHEAD COSTS,  AND 3)  A COMPUTATIONAL
ERROR.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE RTF CONTRACT OFFICE AND OIG ARE CURRENTLY  IN
NEGOTIATIONS FOR CLOSING OUT THE CONTRACT.   THE CONTRACTOR IS
HAVING DIFFICULTY IN LOCATING RECORDS TO RESPOND TO  THE AUDIT
EXCEPTIONS.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
 IG FOLLOWUP STATUS AS  OF   9/30/93
                                      [1]
    APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                             D6AML2-04-0362-2100474  ANALYTICAL TESTING CONSULT
                                              Summaryi  (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                                                                                            NC 7/15/92
                                              - EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                                            MADE) THE MANAGEMENT DECISION IS DELAYED DUE TO THE COMPLEXITY OF
                                            THE TECHNICAL EVALUATION.

                                              > DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi
                                            ANTICIPATE AWARD OF CONTRACT  BY DECEMBER 15,  1993.
                                             IG FOLLOWUP STATUS AS OF   9/30/93
                                                                                  [1]
                                            D8BML2-04-0410-2100514
                                             •summaryi
                                                                    INTEGRATED LABORATORY SYS  NC   8/6/92
                                              -  EXPLANATION OF TKE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEi  RESOLUTION HAS BEEN DELAYED  DUE TO THE INCORRECT OFFICE
                                            RECEIVING THE FINAL REPORT.   THE RTF CONTRACT OFFICE RECEIVED THE
                                            REPORT FOR ITS REVIEW ON SEPTEMBER 27,  1993.   THIS OFFICE IS NOW
                                            FORMING ITS RESPONSE.

                                              -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION)
                                            RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
                                             IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                  [1]
                                             D8BML2-04-0409-2100515
                                             •Summary:
                                                                     INTEGRATED LABORATORY SYS NC   8/ 6/92
                                              -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi  THIS AUDIT COVERED TWO ORGANIZATIONS.   ONE OFFICE SENT A
                                           PROPOSED MANAGEMENT DECISION TO  THE  OIG ON JANUARY 15, 1993
                                           REGARDING THE INDIRECT COSTS.  THE OTHER OFFICE ANTICIPATES
                                           RECEIVING THE REPORT THE WEEK OF OCTOBER 18,  1993 TO BEGIN ITS
                                           REVIEW OF DIRECT COSTS.

                                              •  DESIRED TIMETABLE FOR ACHIEVING  A MANAGEMENT DECISIONi
                                           RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
                                             10  FOLLOWUP STATUS AS OF  9/30/93    [1]

                                             D8CML3-06-0031-3100014  SOUTHWESTERN PUBLIC SERVICE TX10/27/92
                                             •Summaryt

                                              -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi  THE FINANCE OFFICE IS HAVING DIFFICULTY IN LOCATING THE FILES
                                           IN ORDER TO DETERMINE THE TOTAL  AMOUNT PAID.

                                              »  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi REVISED
                                           TARGET DATE FOR RESOLUTION IS OCTOBER 31,  1993.
                                                                       IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                                            [1]
                                                                                               51

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Assignment
Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
 D8CML3-09-0075-3100119  ACUREX ENV CORP FINAL        CA 3/ 5/93
  Summaryi  CONTRACTOR'S FINAL VOUCHER INCLUDED  $89,292.00 OF
COSTS IN EXCESS OF  CONTRACT FUNDING LIMITATIONS.   THE CONTRACTOR
HAS NOT MET ITS LEVEL-OF-EFFORT REQUIREMENTS  FOR BOTH OPTION YEARS
AND THE FEE MAY NEED ADJUSTMENT.

  - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS HOT BEEN
HADE I THE RTF CONTRACT OFFICE IS AWAITING THE CONTRACTOR'S
SUBMISSION OF THE CREDIT VOUCHER AND CHECK.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY DECEMBER 31, 1993.
 10 FOLLOWUP STATUS  AS OF  9/30/93
                                       11)
 P8AMP2-23-0301-2400052  EQM (AIR)
  summaryi   (PREAWARP AUDIT UNDER NEGOTIATIONS)
                                                       OH 7/ 2/92
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEt THE MANAGEMENT DECISION IS DELAYED DUE  TO THE COMPLEXITY OF
THE TECHNICAL EVALUATION.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONl
ANTICIPATE AWARD  OF CONTRACT BY DECEMBER 15,  1993.

 IG FOLLOWUP STATUS AS OF  9/30/93   [1]


OFFICE OF ACQUISITION MANAGEMENT

P9BGL2-04-0046-3100015  WESTINOHOUSE HAZTECH        GA  10/28/92
 Summaryi  COSTS  QUESTIONED AS INELIGIBLE REPRESENTS THE
APPLICATION OF THE INCORRECT G & A RATE.  UNSUPPORTED COSTS WERE
FOR MATERIALS BILLED AT A FIXED-RATE NOT PROVIDED FOR IN THE
CONTRACT AND NO OTHER DOCUMENTATION WAS ALLOWABLE TO SUPPORT UNIT
PRICE USED.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE: THE OIG IS  CURRENTLY REVIEWING THE CONTRACTOR'S ADDITIONAL
SUPPORTING DOCUMENTATION FOR FIXED RATE MATERIALS.   THE OIG
EXPECTS TO ISSUE  THE REPORT BY DECEMBER, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION]
RESOLUTION IS EXPECTED BY JUNE 30, 1994.
 IG FOLLOWUP  STATUS AS OF  9/30/93
                                       [1]
 OFFICE OF ACQUISITION MANAGEMENT

 Cost Advisory & Financial Analysis Division
 Cost Review  & Rate Negotiation Branch

 D8DML2-02-0121-2100404  MALCOLM PIRNIE  INC
 *Suramaryi
                           NY   6/10/92
   - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE  DEPARTMENT OF LABOR HAS INITIATED A LABOR PRACTICES SUIT
AGAINST  THE  CONTRACTOR WHICH WILL IMPACT THE ALLOWABILITY OF
CERTAIN  INDIRECT COSTS.  NEGOTIATIONS  HAVE BEEN SUSPENDED UNTIL
THE LEGAL  ACTION IS COMPLETE.  THE OFFICE INFORMED THE OIG OF THIS
SITUATION  ON FEBRUARY 25, 1993.

   » DESIRED  TIMETABLE FOR ACHIEVING A  MANAGEMENT DECISIONl
RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
 IQ FOLLOWUP  STATUS AS OF  9/30/93
                                       [1]
 D8DML2-02-0122-2100405
 •Summary!
                          MALCOLM PIRNIE INC
                                                     NY   6/10/92
   - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEt  THE  DEPARTMENT OF LABOR HAS  INITIATED A LABOR PRACTICES SUIT
AGAINST  THE CONTRACTOR WHICH WILL  IMPACT THE ALLOWABILITY OF
CERTAIN  INDIRECT COSTS.  NEGOTIATIONS  HAVE BEEN SUSPENDED UNTIL
THE LEGAL  ACTION IS COMPLETE.  THE OFFICE INFORMED THE OIG OF THIS
SITUATION  ON FEBRUARY 25, 1993.

   » DESIRED TIMETABLE FOR ACHIEVING A  MANAGEMENT DECISIONl
RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
  IG  FOLLOWUP STATUS AS OF  9/30/93
                                       [11
 D8EML2-03-0302-2100315  GILBERT ASSOCIATES INC    PA   4/ 7/92
  Summaryi   DCAA DETERMINED THAT GILBERT COMMONWEALTH OWES THE
FEDERAL  GOVERNMENT $2,538,438 AS A  CREDIT REFUND DUE TO THE
TERMINATION OF A DEFINED BENEFIT PENSION PLAN.   EPA'S PORTION IS
$1,285.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl  THIS  AUDIT INVOLVES A PENSION PLAN TERMINATION TO BE
RESOLVED BY THE COGNIZANT FEDERAL AGENCY FOR THE CONTRACTOR
(DEPARTMENT OF DEFENSE (DOD).  DCAA ISSUED THE  REPORT FOR
    52
                                            APPROPRIATE ACTION.  THE EPA OIG REISSUED THE DCAA REPORT.  EPA CAN
                                            TAKE NO ACTION.

                                              . DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONl DOD
                                            EXPECTS RESOLUTION BY DECEMBER  31, 1993.
                                             IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                   [3]
                                             D8DMLS-04-0182-2100420  CLAUDE TERRY £ ASSOCIATES
                                             •Summary i
                                                                                                   GA 6/17/92
                                               - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEl  THE PROGRAM OFFICE PROVIDED  ITS  RESPONSE TO THE OIG ON
                                            SEPTEMBER 16,  1993.

                                               » DESIRED TIMETABLE FOR ACHIEVING  A  MANAGEMENT DECISIONl

                                             IG FOLLOWUP STATUS AS OF  9/30/93    [2]  (The program off ice's response
                                            was not adequate in accordance with EPA Directive 2750. The OIG considers that it
                                            is premature to close assignment until the program office negotiates final rates
                                            with the contractor.)
                                             D8BML2-04-0136-2100422
                                             *SuBB»ryi
                                                                      CLAUDE  TERRY 4 ASSOCIATES   GA 6/17/92
                                               -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEl  THE PROGRAM OFFICE PROVIDED ITS RESPONSE TO THE OIG ON
                                            SEPTEMBER 16,  1993.

                                               •  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONl

                                              IG  FOLLOWUP STATUS AS OF  9/30/93   [2)  (The program office's response
                                            was not adequate in accordance with EPA Directive 2T50. The OIG considers that it
                                            is premature to close assignment until the program office negotiates final rates
                                            with  the contractor )
                                             D8BML2-04-0181-2100423
                                             •summary!
                                                                      CLAUDE  TERRY & ASSOCIATES   GA 6/17/92
                                               -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEl  THE PROGRAM OFFICE PROVIDED ITS RESPONSE TO THE OIG ON
                                            SEPTEMBER 16,  1993.

                                               -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONl

                                              IQ  FOLLOWUP STATUS AS OF  9/30/93   [2]  (The program office's response
                                            was not adequate in accordance with EPA Directive 2750. The OIG considers that it
                                            is premature to close assignment  until the program office negotiates final rates
                                            with  the contractor.)
                                              D9BKL3-04-0034-3100010  EHRT
                                              •Eununaryt
                                                                                                KY 10/  9/92
                                               -  EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                                             MADEl
                                             THE  OIG REQUESTED THAT THE OFFICE SUSPEND NEGOTIATIONS UNTIL A COST
                                             IMPACT OF RECENT INVESTIGATORY  FINDINGS COULD BE ASSESSED.

                                               -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONl
                                             RESOLUTION CANNOT BE DETERMINED AT THIS TIME.
                                              IO FOLLOWUP STATUS AS OF   9/30/93
                                                                                   [1)
                                              P9DHL2-04-0047-3100012
                                              •Summaryi
                                                                                                WESTINGHOUSE HAZTECH
                                                                                                                            GA IO/  9/92
                                               - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                             MADEl  THE AUDIT IS INCOMPLETE AS IT DID NOT INCLUDE AN ASSIST AUDIT
                                             FOR THE CORPORATE ALLOCATION.   THE DCAA AUDIT OF  THE CORPORATE
                                             ALLOCATION IS EXPECTED BY  FEBRUARY,  1994.

                                               . DESIRED TIMETABLE FOR  ACHIEVING A MANAGEMENT  DECISION]
                                             RESOLUTION IS EXPECTED BY  AUGUST 31, 1994.
                                              IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                   [1]
                                                                                                                                     THE
                                              P9DHL9-10-0110-1100108   RES FY86 INDIRECT COSTS    OR   1/24/S1
                                              • Summary! THE OIG REQUESTED THAT THE OFFICE SUSPEND NEGOTIATIONS
                                             WHILE AN INVESTIGATION OF THE CONTRACTOR WAS BEING PERFORMED.
                                             DEPARTMENT OF JUSTICE  IS TAKING ACTION AGAINST  THE  CONTRACTOR.

                                               . DESIRED TIMETABLE  FOR ACHIEVING A MANAGEMENT  DECISION!
                                             RESOLUTION WILL OCCUR  ONCE A SETTLEMENT HAS BEEN  REACHED.

                                              IG FOLLOWUP STATUS AS OF  9/30/93   [1] (The OIO aoreea with the ab<|>ve
                                             atatufl And doaa not expect  a response  until the review la complete.)
                                                                                                     OFFICE OF INSPECTOR GENERAL

-------
 Assignment
 Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
  P9DHLO -10 -0096 -210 0304
  •summary!
                          RES 87 OH
                                                    OR   3/31/92
   - EXPLANATION  OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE.  THE OIG REQUESTED THAT THE OFFICE SUSPEND NEGOTIATIONS WHILE
AN INVESTIGATION OF THE CONTRACTOR WAS BEING PERFORMED.  THE
DEPARTMENT OF JUSTICE IS TAKING ACTION AGAINST THE CONTRACTOR.

   . DESIRED  TIMETABLE FOR ACBIEVINQ A MANAGEMENT DECISION!
RESOLUTION WILL  OCCUR ONCE A SETTLEMENT HAS BEEN REACHED.
  IS FOLLOWUP  STATUS  AS OF  9/30/93
                                      [1]
 P9DHL9-10-0148-2100642
  •summaryi
                          RES 88  OH
                                                    OR   9/28/92
   - EXPLANATION OF  THE REASONS MANAOEMENT DECISION HAS NOT BEEN
MADEl THE OIG REQUESTED THAT THE OFFICE SUSPEND NEGOTIATIONS WHILE
AN INVESTIGATION OF THE CONTRACTOR WAS BEING PERFORMED.  THE
DEPARTMENT OF JUSTICE  IS TAKING ACTION AGAINST THE CONTRACTOR.

   « DESIRED TIMETABLE  FOR ACHIEVING A MANAGEMENT DEC IS ION I
RESOLUTION WILL OCCUR  ONCE  A SETTLEMENT HAS BEEN REACHED.
 IG FOLLOWUP STATUS AS  OF   9/30/93
 PSDHL1-10-0005-3100147  RES  89  OH
 •Summary t
                                      [1]
                                                    OR   3/29/93
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE I
THE OIG REQUESTED THAT THE OFFICE  SUSPEND NEGOTIATIONS WHILE AN
INVESTIGATION OF THE CONTRACTOR WAS  BEING PERFORMED.   THE
DEPARTMENT OF JUSTICE IS  TAKING ACTION AGAINST THE CONTRACTOR.

  « DESIRED TIMETABLE FOR ACHIEVING  A MANAGEMENT DECISION!
RESOLUTION WILL OCCUR ONCE A SETTLEMENT HAS BEEN REACHED.
 10 FOLLOWUP STATUS AS OF   9/30/93
                                      [1]
 P8DMLO-23-0421-2100376  PEI ASSOC  FY 90
 •Summary*
                                                    OH   5/20/92
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEI THE AUDIT IS INCOMPLETE AS  IT DID NOT INCLUDE AN ASSIST
AUDIT FOR THE CORPORATE ALLOCATION.   THE  REPORT RECOMMENDED THAT
ACTION NOT BE TAKEN UNTIL THE CORPORATE ALLOCATION AUDIT IS
COMPLETE.  PER DCAA, THE AUDIT REPORT WILL BE ISSUED IN FEBRUARY,
1994.

  • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY MARCH 31, 1994.
                                            OFFICE OF ACQUISITION MANAOEMENT

                                            Coet Advisory t  Financial  Analytic Division
                                            Financial Analysis  Branch

                                            D9BFL2-03-0367-2100622  COMPUTER SCIENCE CORP       VA 9/17/92
                                             Summary.  DCAA  QUESTIONED 7,692 LABOR HOURS IN EXCESS OF THOS]
                                           AUTHORIZED IN THE CONTRACT.   DCAA WAS UNABLE TO DETERMINE IF HOUR:
                                           BILLED IN ACCORDANCE WITH THE DOPO'S MEMORANDUM.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE. THE CONTRACTING OFFICER REQUESTED DCAA TO REVIEW THE
                                           CONTRACTOR'S RESPONSE ON  SEPTEMBER 15,  1993.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                           RESOLUTION IS  EXPECTED BY NOVEMBER 30,  1993.
                                                                      IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [1]
                                            P8BMN1-03-0146-2300014   O&R MANAGEMENT CORPORATION MD ll/ 5/91
                                             Summary.  WE QUESTIONED $557,442  OF OTHER DIRECT COSTS.  ONE
                                           HUNDRED PERCENT OF THE CONTRACT WAS QUESTIONED BECAUSE O&R DID NO'
                                           MAINTAIN RECORDS.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! RESOLUTION  HAS  BEEN DELAYED DUE TO THE COMPANY NO LONGER
                                           BEING IN BUSINESS.  THE CONTRACTING OFFICER IS WRITING A DECISIO1
                                           ON THE DISALLOWANCE OF THE COST CLAIMED BY  THE CONTRACTOR  IN TH]
                                           AUDIT REPORT.  THIS DECISION IS EXPECTED TO BE FINALIZED BY
                                           DECEMBER 31,  1993.

                                             • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                           RESOLUTION IS EXPECTED BY DECEMBER  31,  1993.
                                            IG FOLLOWUP STATUS AS OF   9/30/93
                                                                                 [11
                                            D9BGL2-04-0368-2100587  VESTA TECHNOLOGY LTD      FL   9/  9/92
                                             Summary:  VESTA PROVIDED  INCINERATION SERVICES TO RES.   DELAY
                                           CLAIM DUE TO FAILED TEST BURNS 4  DEMOBILIZATION.  $113,000
                                           QUESTIONED ON INCINERATION DELAY.  $129,000 QUESTIONED ON EXTENDE1
                                           OVERHEAD.  $264,000 WAS UNAUDITED SUBJECT  (FLINT).  $88,000 PROFI'
                                           WAS QUESTIONED.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi THIS AUDIT COVERS THE FIRST TIER SUBCONTRACTOR'S CLAIM TO TH]
                                           PRIME CONTRACTOR.  NEGOTIATIONS OF THIS AUDIT ARE AWAITING
                                           NEGOTIATION OF AN ASSIST AUDIT ON THE  SECOND  TIER SUBCONTRACTOR
                                           THE ASSIST AUDIT HAS BEEN COMPLETED AND RESULTS WERE  SENT TO TH]
                                           CONTRACTOR OFFICE ON JULY 23, 1993.  NEGOTIATIONS BETWEEN THE
                                           CONTRACTING OFFICER AND CONTRACTOR ARE IN PROCESS.

                                             = DESIRED TIMETABLE FOR ACHIEVING A  MANAGEMENT DECISION:
                                           RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
 IS FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
                                                                      IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [1]
 P8BMP1-23-0335-2400073  PEI ASSOC  {FY  85)            OH 9/ 9/92
  Summaryi  THE REVIEW FOUND $224,781 OF  INELIGIBLE AND $195,886
OF UNSUPPORTED COSTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE! THE OFFICE RECENTLY MET WITH  THE  OIG ON  SEPTEMBER 15,  1993
TO DEVELOP A PROCEDURE TO RESOLVE THE ISSUES.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT  DECISION:
RESOLUTION IS EXPECTED BY DECEMBER  31,  1993.
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
                                            D8CML2-09-0319-2100524
                                            •Summary.
                                                                                              GEO RESOURCE CONSULTANTS  FN CA 8/12/92
                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi THE CONTRACTING OFFICER FORWARDED THE SETTLEMENT POSITION T(
                                           THE CONTRACTOR ON APRIL 30, 1993.  THEY ARE CURRENTLY  UNDERGOINl
                                           ACTIVE NEGOTIATIONS WITH THE CONTRACTOR'S ATTORNEY.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
                                           RESOLUTION IS EXPECTED BY NOVEMBER 30,  1993.
                                                                      10 FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [1]
 P8DMLO-23-0178-3100137  PEI ASSOC FY 87/88           OH 3/17/93
  Summary!  NEARLY $2 MILLION WAS UNSUPPORTED  BECAUSE OF A LACK OF
A JOB COSTS SYSTEM-INDIRECT RATES FOR LAB & NON-LAB  OVERHEADS
COULD NOT BE DETERMINED.  $840,906 OF INELIGIBLE COSTS INCLUDED
$479,316 OF PROPOSED COSTS NOT RECEIVED.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE AUDIT IS INCOMPLETE AS IT DID NOT INCLUDE  AN ASSIST
AUDIT FOR THE CORPORATE ALLOCATION FROM DCAA.  THE REPORT
RECOMMENDED THAT ACTION NOT BE TAKEN UNTIL THE CORPORATE
ALLOCATION AUDIT IS COMPLETE.  THE DCAA AUDIT  WAS  RECENTLY
COMPLETED.

  > DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY MARCH 31, 1994.
                                            P9AKN9-23-0347-0300036  OH MATERIALS  (PR  EQ RATES)
                                             summary.  (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                                                                                          OH 3/27/90
                                             - EXPLANATION OF THE REASONS MANAGEMENT  DECISION HAS  NOT BEEN
                                           MADE. THE OFFICE REQUESTED FURTHER AUDITS  ON  THE  CONTRACTOR'S
                                           EQUIPMENT UTILIZATION RATES FOR  1990  IN  ORDER TO  RESOLVE THESE
                                           COSTS.  THE YEARS 1987 THROUGH 1989 SHOULD BE RESOLVED  WITHIN  1
                                           MONTHS FROM RECEIPT OF THESE AUDITS.  ALSO, THERE HAS BEEN A NE!
                                           CONTRACTING OFFICER ASSIGNED.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT  DECISION!
                                           RESOLUTION IS EXPECTED BY SEPTEMBER 30,  1994.
                                            IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                 [1]
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
    APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                              53

-------
Assignment
Number
                         Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
P9AKNO-23-0260-0300047  OH MATERIALS  (PR KQ RATES)
         t  (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                    OH 4/37/90
  - EXPLANATION OP THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE! THE CONTRACTING OFFICER NEGOTIATED AND SETTLED  ISSUES
COVERED BY THE AUDIT REPORT.  AFTER THE SETTLEMENT DOCUMENTS ARE
REVIEWED, THIS AUDIT WILL BE CLOSED.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DEC IS ION t
RESOLUTION IS EXPECTED BY OCTOBER 29, 1993.
                                                                     M5BFL2-11-002S-3100040   EP-IAG FY90 DOT-COAST GUARD DC12/ 1/92
                                                                     •Summary t

                                                                       - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                    MADE! THE HEADQUARTERS GRANTS OFFICE IS AWAITING THE RESULTS OF THE
                                                                    ORGANIZATIONS' REVIEW OF  THE AUDIT FINDINGS.

                                                                       . DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                                                    RESOLUTION IS EXPECTED BY DECEMBER 31,  1993.
 10 FOLLOWOP STATUS AS OF  9/30/93
                                      Ul
 P9AHN1-23-0144-2300023  OHM REM ERCS2 Z2 FY 89
  Summaryi   (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                    OH 12/26/91
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE CONTRACTING OFFICER NEGOTIATED AND SETTLED ISSUES
COVERED BY THE AUDIT REPORT.  AFTER THE SETTLEMENT DOCUMENTS ARE
REVIEWED, THIS AUDIT WILL BE CLOSED.

  « DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION I
RESOLUTION IS EXPECTED BY OCTOBER 29, 1993.

 IG FOLLOWUP STATUS AS OF  9/30/93   [1]
 P9AHN1-23-0143-2300024  OHM REM ERCS2 Zl FY 89
  Summaryi   (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                    OH 12/27/91
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl NEGOTIATIONS ARE STILL PENDING.  THE OFFICE REQUESTED
FURTHER AUDITS ON THE CONTRACTOR'S EQUIPMENT UTILIZATION RATES FOR
1990 IN ORDER TO RESOLVE THESE COSTS.  THE YEARS 1987 THROUGH 1989
SHOULD BE RESOLVED WITHIN 12 MONTHS FROM RECEIPT OF THESE AUDITS.

  » DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY SEPTEMBER 30, 1994.
 10 FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
 P8BMPO-23-0422-2400046  PEI ASSOC FY 90             OH 6/ 2/92
  Summaryi  REVIEW OF INCURRED COSTS IS INCOMPLETE BECAUSE AUDITED
INDIRECT RATES HAVE NOT BEEN FINALIZED AND APPLIED.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE AUDIT IS INCOMPLETE AS IT DID NOT  INCLUDE AN ASSIST
AUDIT FOR THE CORPORATE ALLOCATION.  THE REPORT RECOMMENDED THAT
ACTION NOT BE TAKEN UNTIL THE CORPORATE ALLOCATION AUDIT  IS
COMPLETE.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY MARCH 31, 1994.
 IG POLLOWUP STATUS AS OF  9/30/93
 OFFICE OF ACQUISITION MANAGEMENT
                                      111
 Coat Advisory & Financial Analysis Division
 Washington Coat Advisory Branch

 P9AKN1-23-0191-1300085  OHM REM ERCS3 Rl
  Summary!  (PREAWARD AUDIT UNDER NEGOTIATIONS)
                                                     OH 7/ 9/91
  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE CONTRACT HAS NOT BEEN AWARDED; HOWEVER, CONTRACT
NEGOTIATIONS ARE ON-GOING.
  > DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY DECEMBER 31, 1993.

 IG POLLOWUP STATUS AS OF  9/30/93    [1]


 Grants Administration Division

 N3HVJ3-05-0052-3500272  WISCONSIN U OF FY 90/91     HI 1/21/93
  Summary!  THE GRANTEE EXCEEDED THE FEDERAL GRANT AMOUNT BY
$1,558.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE HEADQUARTERS GRANTS OFFICE LOST THIS REPORT DURING AN
OFFICE MOVE.  THE OFFICE REQUESTED A COPY OF THE AUDIT REPORT AND
RECEIVED IT ON OCTOBER 13, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION IS EXPECTED BY JANUARY 31, 1994.

 10 FOLLOWUP STATUS AS OF  9/30/93    [1]
                                                                     IO FOLLOWUP STATUS AS  OF  9/30/93
                                                                                                          [1]
                                                                     MSBFL3-11-0014-3100046   SF IAO DOI USGS
                                                                     •Summaryj
                                                                                                                            12/ 3/92
                                                                       - EXPLANATION OF  THE  REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                    MADEt THE HEADQUARTERS GRANTS OFFICE IS AWAITING THE RESULTS OF THE
                                                                    ORGANIZATIONS' REVIEW OF THE QUESTIONED COSTS.

                                                                       - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                                                    RESOLUTION  IS EXPECTED  BY DECEMBER 31,  1993.
                                                                      IO  FOLLOWUP  STATUS  AS  OF  9/30/93
                                                                                                          [1]
                                                                     M5BFL2-11-0045-3100059
                                                                     •Summaryi
                                                                                              SF-IAG FY91 DOI
                                                                                                                             I/ 4/93
                                                                       - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                    MADEl THE HEADQUARTERS GRANTS OFFICE IS AWAITING THE RESULTS OF THE
                                                                    ORGANIZATIONS' REVIEW OF THE REPORT.

                                                                       • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
                                                                    RESOLUTION  IS EXPECTED BY DECEMBER 31,  1993.

                                                                     10 FOLLOWUP STATUS AS OF  9/30/93   [1]
                                                                     M5BFL2-11-004S-3100158   SF-IAG FY91 DOI
                                                                     •Summary!
                                                                                                                             3/31/93
                                                                       - EXPLANATION  OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                    MADEl THE HEADQUARTERS GRANTS OFFICE IS AV'AITING THE RESULTS OF THE
                                                                    ORGANIZATIONS' REVIEW OF  THE REPORT.

                                                                       • DESIRED TIMETABLE FOR ACHIEVING  A MANAGEMENT DECISION!
                                                                    RESOLUTION  IS EXPECTED BY DECEMBER 31,  1993.
                                                                     10 FOLLOWUP  STATUS AS  OF  9/30/93
                                                                                                          [1]
                 Office  ot Administration & Resources Management RTF NC

                 B8BML2-03-0179-2100667   E. H.  PECHAN                VA 9/30/92
                   Summary i  WE FOUND NUMEROUS WEAKNESSES SUCH AS AWARDING A
                 CONTRACT TO AN INEXPERIENCED CONTRACTOR, NUMEROUS AMENDMENTS WITH
                 LITTLE OR NO JUSTIFICATION AND  POTENTIAL CONFLICT OF INTEREST
                 BETWEEN  CONTRACTOR AND EPA GRANTEE.   WE QUESTIONED 5441,768 IN
                 INELIGIBLE CONSULTANT, DIRECT LABOR & OTHER COSTS.

                   -  EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                 MADEl THE RTF CONTRACT OFFICE SUBMITTED A PROPOSED MANAGEMENT
                 DECISION TO THE OIG ON AUGUST 11, 1993.  THE OIG DID NOT ACCEPT THE
                 DECISION.

                   • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION) REVISED
                 TARGET DATE  FOR RESOLUTION IS DECEMBER 31, 1993.

                 IO  FOLLOWUP STATUS AS OF  9/30/93   [2]


                 Regional Adminiatrator,  Region 1

                 K3BWL1-01-0178-2100S22   RI ESTUARY PROGRAM GRANTS   RI 8/11/92
                   Summaryi A TOTAL OF $198, 111  IS QUESTIONED.  VARIOUS WEAKNESSES
                 IN THE GRANTEE'S INTERNAL CONTROLS ARE ALSO REPORTED, OF WHICH
                 $41,954  UNREASONABLE,  $154,522  UNSUPPORTED, $1,635 INELIGIBLE.

                   -  EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                 MADEl THE REGION AND THE  OIG HAVE REACHED AGREEMENT ON MOST ISSUES
                 IN THIS  INTERIM AUDIT.   THE REMAINING ISSUE INVOLVES DETERMINING
                 CONTRACTOR'S OBLIGATIONS TO MEET THE TERMS OF THE CONTRACT.

                   - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                 DETERMINATION LETTER IS  EXPECTED BY DECEMBER 31, 1993.
                                                                     IO FOLLOWUP STATUS AS  OF  9/30/93
                                                                                                          [2]
   54
                                                                                                  OFFICE OF INSPECTOR GENERAL

-------
 Assignment
 Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
 Regional Administrator, Ragion 2

  P2BW*8-02-0017-2100449  NYC - NORTH RIVKR           NY 7/  5/92
   Summary!   THE GRANTEE CLAIMED $2,661,322 OF INELIGIBLE COSTS AND
 $11,814,277 OF UNSUPPORTED COSTS FOR THE CONSTRUCTION OF THE NORTH
 RIVER WASTEWATER WATER TREATMENT PLANT AND A SLUDGE VESSEL.

   - EXPLANATION OF THB REASONS MANAGEMENT DECISION HAS NOT  BEEN
 MADEi THE NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
 IS THE DELEGATED AGENCY RESPONSIBLE FOR DRAFTING THIS AUDIT
 RESOLUTION  FOR THE REGION.  A HIGH VOLUME OF AUDITS AND THE LARGE
 AMOUNT OF QUESTIONED COSTS CAUSED A DELAY IN THE RESOLUTION OF
 THIS AUDIT.   REGION IS AWAITING OIG RESPONSE BASED ON INFORMATION
 PROVIDED ON AUGUST 25, 1993.

   - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!  A FINAL
 DETERMINATION LETTER IS EXPECTED BY DECEMBER 31, 1993.
                                              - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAI
                                           DETERMINATION LETTER IS EXPECTED BY MARCH 31,  1994.
  IO  FOLLOWUP STATUS AS OF  9/30/93
                                      [4]
  D2CWL3-02-0030-3100021  NYCDEP - NORTH RIVER       NY 117 3/92
   Summary!   THE CITY OF NEW YORK CLAIMED $1,311,893 OF OVERHEAD
 COSTS FOR WHICH THE  CONSULTING ENGINEER COULD NOT SUPPORT THE
 AMOUNT  CLAIMED.  AN ADDITIONAL $35,359 WAS QUESTIONED AS INELIGIBLE
 BASED ON APPLICATION OF THE PRORATION FACTOR.

   - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
 MADEi THE NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
 IS THE  DELEGATED AGENCY RESPONSIBLE FOR DRAFTING THIS AUDIT
 RESOLUTION FOR  THE REGION.   A HIGH VOLUME OF AUDITS AND THE LARGE
 AMOUNT  OF QUESTIONED COSTS  CAUSED A DELAY IN THE RESOLUTION OF
 THIS AUDIT.  REGION  AWAITING OIG RESPONSE BASED ON INFORMATION
 PROVIDED ON  AUGUST 25,  1993.

   • DESIRED  TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
 DETERMINATION LETTER IS EXPECTED BY DECEMBER 31, 1993.
 IO POLLOWUP  STATUS AS  OF  9/30/93
                                      [41
 P2CWL1-02-0104-310011B   NYCDEP                      NY 3/ 2/93
  Summary!  THE  CITY  OF  NEW YORK CLAIMED UNALLOWABLE PROJECT COSTS
OF  $13,953,725 FOR DESIGN AND CONSTRUCTION OF 8 DEPARTMENT OF
ENVIRONMENTAL PROTECTION WATER POLLUTION CONTROL FACILITIES AND
APPURTENANCES.

  - EXPLANATION  OF THB REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE! THE NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
IS THE DELEGATED AGENCY  RESPONSIBLE FOR DRAFTING THIS AUDIT
RESOLUTION FOR THE REGION.   A HIGH VOLUME OF AUDITS AND THE LARGE
AMOUNT OF QUESTIONED  COSTS CAUSED A DELAY IN THE RESOLUTION OF
THIS AUDIT.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER  IS  EXPECTED BY DECEMBER 31, 1993.
 IO FOLLOWUP STATUS AS  OF   9/30/93
                                      [1]
 E2AWT3-02-0016-3400002   EARLY WARNING-RED HOOK WPCP NY10/28/92
  Summary!  OUR REVIEW OF THE  NEW YORK CITY RED HOOK WPCP
DISCLOSED THAT LABORATORY FACILITIES WERE NOT IN USE AND HAD NOT
BEEN UTILIZED SINCE CONSTRUCTION WAS COMPLETED. IN ADDITION, THE
COMPUTERIZED CONTROL ROOM WAS  UNFINISHED.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE: THE NEW YORK STATE  DEPARTMENT OF ENVIRONMENTAL CONSERVATION
IS THE DELEGATED AGENCY RESPONSIBLE FOR DRAFTING THIS AUDIT
RESOLUTION FOR THE REGION.  A  HIGH VOLUME OF AUDITS AND THE LARGE
AMOUNT OF QUESTIONED COSTS CAUSED A DELAY IN THE RESOLUTION OF
THIS AUDIT.

  « DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED BY DECEMBER 31,  1993.

 10 FOLLOWUP STATUS AS OF  9/30/93   [1]


 Regional Administrator,  Region 3

 P6DWNO-03-0261-230004S   DC GOVERNMENT               DC 3/31/92
  Summary!  REVIEW OF THE WASHINGTON TIMES ALLEGATIONS CONCERNING
THE BLUE PLAINS TREATMENT PLANT DISCLOSED CONTRACT OVERRUNS OF $21
MILLION.  IN ADDITION EXCESSIVE DELAYS OCCURRED BECAUSE OF
PROCUREMENT POLICIES AND  PRACTICES.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE OIG DISAGREED WITH THE $41.1 MILLION FINAL DETERMINATION
LETTER ISSUED ON MARCH 5,  1993,  REQUIRING ADDITIONAL DOCUMENTATION
FROM THE CORPS OF ENGINEERS.   REGION SUBMITTED A REVISED FINAL
DETERMINATION LETTER TO OIG ON AUGUST 10,  1993.  OIG IDENTIFIED
THE FINAL DETERMINATION LETTER AS INCOMPLETE UNTIL ITS ENGINEERING
UNIT PERFORMS A TECHNICAL REVIEW OF A $1.1 MILLION ISSUE.
                                             IO  FOLLOWUP STATUS AS OF  9/30/93
                                                                                  (2}
                                             F2CWN1-03-0123-23000«2  PHILADELPHIA CITY OF        PA  7/23/92
                                              SUMuryi  THE CITY OF PHILADELPHIA WATER DEPARTMENT CLAIMED MORE
                                           THAN $20  MILLION OF INELIGIBLE COSTS INCLUDING  $8.7 MILLION OF
                                           COSTS ASSOCIATED WITH ABANDONED SYSTEMS AND EQUIPMENT.

                                              -  EXPLANATION OF THB REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi THE SIZE AND COMPLEXITY OF THIS MEGA-AUDIT,  INVOLVING SEVERAI
                                           GRANTS, HAS REQUIRED SIGNIFICANT TIME TO RESOLVE.  MEETINGS AND
                                           CORRESPONDENCE WITH GRANTEE ARE ONGOING.

                                              - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                           DETERMINATION LETTER IS EXPECTED DECEMBER 31, 1993.
                                                                       IO  FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           (11
                                            P2CWN9-03-0256-3300026  BALTIMORE MAYOR fc CTY COON  MD 3/25/93
                                             SUUaaryi  CITY OF BALTIMORE CLAIMED QUESTIONED COSTS IN EXCESS OF
                                           $3M.  THESE INCLUDED $2 . 1M OF PROJECT INSPECTION CLAIMED COSTS THAI
                                           EXCEEDED  INCURRED COSTS.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi DUE TO SEVERAL QUESTIONS CONCERNING VARIOUS COST CATEGORIES
                                           WHICH TOTAL MORE THAN $3.85 MILLION IN COSTS, FURTHER DOCUMENTATION
                                           WAS SOUGHT  IN  ADDITION TO THE SEVERAL GRANTEE SUBMISSIONS WHICH
                                           REQUIRED  EXTENSIVE REVIEW.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                           DETERMINATION  LETTER  IS EXPECTED BY OCTOBER 31,  1993.

                                            10 FOLLOWUP STATUS AS OF  9/30/93   (1]


                                            Regional Administrator,  Ragion 4

                                            E2CWN1-04-OOS2-1300086  HILLSBOROUGH CTY            FL 7/17/91
                                             Summary!  THE GRANTEE RECEIVED EPA FUNDS TO EXPAND ITS WASTEWATEF
                                           TREATMENT PLANT.  WE DID NOT FIND JUSTIFICATION FOR THE EXPANSION.
                                           THEREFORE, WE  QUESTIONED 84%  OF THE EXPANSION COST THAT WAS
                                           UNNECESSARY, WHICH COMES TO $5,052,880 EPA SHARE.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! JUSTIFICATION FOR THE EXPANSION OF THE TREATMENT PLANT IS
                                           DEPENDENT UPON THE OUTCOME  OF  THE CORRECTIVE ACTION PLAN FOR THE
                                           RUSKIN/WIMAUMA PROJECT.

                                             . DESIRED TIMETABLE  FOR ACHIEVING A MANAGEMENT DECISION: THE
                                           REGION AND OIG CONCUR  THAT  A  FINAL DETERMINATION IS PREMATURE.
                                                                      10 FOLLOWUP  STATUS  AS  OF
                                                                     status.)
                                                                                                 9/30/93
                                                                                                           [2]  (OIG agrees with the above
                                            Regional Administrator,  Region 5

                                            E2AWT1-05-0116-1400048   ENGLISH EWS                 IN 9/2S/91
                                             Summary!  THE GRANTEE  HAS  BEGUN A SIGNIFICANT REDEVELOPMENT
                                           PROJECT WHICH RAISES  QUESTIONS ABOUT THE CONCLUSIONS OF THE
                                           FACILITIES PLANNING PROCESS.  AS A RESULT THE GRANT AWARD OF
                                           $2,676,600 WAS PREMATURE AND THE PRELIMINARY PLANNING NEEDS TO BE
                                           REEVALUATED.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi THE OIG DID NOT ACCEPT THE REGION'S PROPOSED FINAL
                                           DETERMINATION LETTER  OF  JANUARY 7,  1992.  THE AUDIT HAS BEEN
                                           ELEVATED TO THE HEADQUARTERS OIG AND PROGRAM OFFICE TO RESOLVE
                                           OUTSTANDING ISSUES.  THE OFFICE OF GENERAL COUNSEL  IS WORKING ON I
                                           LEGAL INTERPRETATION  TO  HELP REACH  RESOLUTION.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION:
                                           RESOLUTION CANNOT BE  DETERMINED AT  THIS TIME.
                                            10 FOLLOWUP STATUS AS OF   9/30/93
                                                                                 [2]
                                            Regional Administrator, Region 5
                                            Qranta Financial Management,  Region 5

                                            P2CWP6-05-0298-2400004  W  LAKE SUPERIOR            MN 12/12/91
                                             Summary:  THE GRANTEE CLAIMED $8,595,588 OF INELIGIBLE
                                           CONSTRUCTION,  ENGINEERING AND ADMINISTRATIVE COSTS,  AND $166,834 OE
                                           UNSUPPORTED COSTS.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE OIG DID NOT ACCEPT THE REGION'S PROPOSED FINAL
                                           DETERMINATION LETTER OF JANUARY 7,  1992.  THE AUDIT HAS BEEN
                                           ELEVATED TO THE HEADQUARTERS OIG AND PROGRAM OFFICE ON JULY 24,
                                           1992 TO RESOLVE OUTSTANDING ISSUES.   THE OIG AND THE OFFICE OF
                                           GENERAL COUNSEL MET AND DETERMINED THAT THE OUTSTANDING ISSUES AR1
   APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                              55

-------
Assignment
Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
REGULATORY AND THAT THE OIG  IS RESEARCHING  THE  REGULATION IN PLACE
AT THE TIME OF THE AWARD.

  > DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!  THE OIG
EXPECTS THIS AUDIT TO BE ELEVATED TO THE  AUDIT  RESOLUTION BOARD.
                                              - DESIRED TIMETABLE FOR ACHIEVING) A MANAGEMENT DECISION! A FINAL
                                            DETERMINATION LETTER IS EXPECTED BY DECEMBER 31, 1993.
 1(3 FOLLOWUP STATUS AS OF  9/30/93
                                      [6]
 E2CWL3-05-0121-3100141  CLEVELAND NEORSD            OH 3/26/93
  Summary!  NEORSD CLAIMED $35,402,826 OF UNNECESSARY/UNREASONABLE
COSTS FOR ABANDONED PORTIONS OF A WASTEWATER TREATMENT SYSTEM.   IN
ADDITION, THE GRANTEE CLAIMED  $12,274,972 FOR ENGINEERING COSTS
THAT IT COULD NOT RECONCILE WITH ITS BOOKS AND RECORDS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE REGION AND OIG HAVE  BEEN UNABLE TO COME TO AGREEMENT ON
DISALLOWANCE OF QUESTIONED COSTS.  THE OIG QUESTIONED ALL COSTS
DESPITE THE GRANTEE'S SUPPORT  FOR SOME COSTS.   THE REGION AND OIG
ARE ATTEMPTING TO OBTAIN FINAL PAY REQUESTS FROM THE GRANTEE WHICH
WILL ALLOW THE OIG TO AGREE WITH THE REGION'S PROPOSAL.

  » DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED BY NOVEMBER 30,  1993.
 10 POLLOWOP STATUS AS OF   9/30/93
                                      [1]
 P2CWP7-05-0079-3400038   FLINT                        MI 3/29/93
  Summary!  THE CITY OF FLINT, MI  CLAIMED $1,189,038 OF INELIGIBLE
CONSTRUCTION & ENGINEERING COSTS;  $252,325 OF UNSUPPORTED
ADMINISTRATIVE &. ENGINEERING  COSTS;  AND $5,520 OF UNNECESSARY/
UNREASONABLE ENGINEERING  START-UP  COSTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE! RESOLUTION OF THE REPORT WAS DELAYED DUE TO THE REGION'S
INABILITY TO LOCATE THE EPA PROJECT FILE.   PRELIMINARY
DETERMINATION LETTER SENT TO  THE GRANTEE ON SEPTEMBER 15, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED BY NOVEMBER 1,  1993.
 IG FOLLOWUP STATUS AS OF   9/30/93
                                      [3]
 E2BWL5-05-0136-7000980   SAUOET                      IL 3/31/67
  Summary!  WE QUESTIONED OVER $7  MILLION FOR INELIGIBLE AND
UNNECESSARY PROJECT COSTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE REGION  IS SEEKING  GUIDANCE FROM REGIONAL COUNSEL AND
WATER DIVISION REGARDING  COMPLEX TECHNICAL AND LEGAL ISSUES.  THE
REGION AND FIELD  OIG HAVE DISAGREEMENTS.   THESE WILL BE ELEVATED
TO HEADQUARTERS OIG WHEN  THE REGION SUBMITS THE PROPOSED FINAL
DETERMINATION LETTER.  THE PRELIMINARY FINAL DETERMINATION LETTER
IS EXPECTED BY NOVEMBER 30,  1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!
RESOLUTION CANNOT BE DETERMINED AT THIS TIME.
                                             IG  FOLLOWUP STATUS AS Of  9/30/93
                                                                                 [3]
                                            P2CMN5-05-0169-8100774  DETROIT WSD                 MI 9/ 1/88
                                             SUMaryi  THE GRANTEE CLAIMED $5, 600 OF INELIGIBLE AND $992,000 OF
                                            UNSUPPORTED FORCE ACCOUNT COSTS.  THE GRANTEE ALSO CLAIMED
                                            INELIGIBLE CONSTRUCTION AND MISC.  COSTS OF $91,000.

                                              -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADBt THE REGION AND OIG REACHED AGREEMENT IN MAY 1993 ON 10 OF THE
                                            13 REPORTS ISSUED ON DETROIT WATER AND SEWAGE DEPARTMENT GRANTS.
                                            RESOLUTION OF THIS AUDIT HAS BEEN SUSPENDED PENDING OIG'S AGREEMENT
                                            WITH THE REGION'S PROPOSED RESOLUTION OF THE OTHER 10 REPORTS WHICH
                                            DID  NOT OCCUR UNTIL MAY 1993.

                                              -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                            DETERMINATION LETTER IS EXPECTED BY DECEMBER 31,  1993.

                                             IO  FOLLOWUP STATUS AS OF  9/30/93    [2]


                                             Regional Administrator, Ragion 6

                                             E2CWN1-06-0155-3300025  KENNER                      LA 3/24/93
                                              Summary! KENNER, LA CLAIMED $651,084 OF INELIGIBLE CONSTRUCTION
                                            CHANGE ORDER COSTS.  AN ADDITIONAL $632,000 OF  CONTRACTOR CLAIM
                                            COSTS  AND $30,263 OF UNSUPPORTED ADMINISTRATIVE  COSTS WERE
                                            QUESTIONED.

                                              -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADE!  THE REGION IS AWAITING A DECISION FROM HEADQUARTERS GRANTS
                                            ADMINISTRATION DIVISION REGARDING A DEVIATION REQUEST SENT ON
                                            SEPTEMBER 22,  1993 REQUESTING $651,084 BE REINSTATED.

                                              -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                            DETERMINATION LETTER IS EXPECTED BY DECEMBER 31,  1993.

                                             IG  FOLLOWUP STATUS AS OF  9/30/93    [1]


                                             Regional Administrator, Region 7

                                             P2CWN2-07-0183-3300027  DES MOINES                  IA 3/29/93
                                              Summaryi  WE QUESTIONED $98,921 CONSISTING OF $47,518 OF
                                            ENGINEERING COSTS,  $35,466 OF INELIGIBLE CONSTRUCTION CHANGE ORDER
                                            COSTS  AND $15,937 OF CONSTRUCTION DEPOSITS ON PLANS AND
                                            SPECIFICATIONS.

                                              -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADEi  THE REGION SUBMITTED THE FINAL  DETERMINATION LETTER    ON
                                            SEPTEMBER 22,  1993.  THE OIG AGREED TO THE FINAL DETERMINATION
                                            LETTER ON SEPTEMBER 30, 1993.  HOWEVER, THE IG  AUDIT TRACKING
                                            SYSTEM DID NOT REFLECT THIS ACTION UNTIL OCTOBER 13, 1993.

                                              -  DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! THIS
                                            AUDIT  IS CLOSED.
 IS FOLLOWUP STATUS AS OF   9/30/93
                                      [2]
                                                                      10 FOLLOWUP STATUS AS OF   9/30/93
                                                                     explanation.)
                                                                                                           [3]  (OIG agrees with the above
 P2CWN5-OS-0132-8000464   DETROIT WSD                 MI 1/20/88
  Summary!  THE GRANTEE  CLAIMED UNSUPPORTED FORCE ACCOUNT COSTS OF
$2 MILLION.  THE GRANTEE ALSO CLAIMED $2.6 MILLION OF INELIGIBLE
AND $119,000 OF UNSUPPORTED CONSTRUCTION COSTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADE: THE REGION AND OIG REACHED AGREEMENT IN MAY 1993 ON 10 OF
THE 13 REPORTS ISSUED ON DETROIT WATER AND SEWAGE DEPARTMENT
GRANTS.  THE GRANTEE HAS SUBSEQUENTLY PROVIDED THE REGION WITH
VOLUMINOUS, COMPLEX DOCUMENTATION WHICH IS CURRENTLY UNDER REVIEW
BY THE WATER DIVISION.   THE PROPOSED FINAL DETERMINATION WAS
AGREED TO BY THE OIG.

 « DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS  EXPECTED BY DECEMBER 31,  1993.
 IG FOLLOWUP STATUS AS  OF  9/30/93
                                      [3]
                                             P2BWN2-07-0184-3300029  DES MOINES                   IA 3/29/93
                                              Summary!  WE QUESTIONED $347,793 CONSISTING OF $311,945 OF
                                            CONSTRUCTION CHANGE ORDER COSTS THAT WERE NOT ADEQUATELY SUPPORTED
                                            AND $30,887 OF ENGINEERING SERVICE COSTS ALLOCABLE  TO  INELIGIBLE
                                            CONSTRUCTION.

                                              - EXPLANATION OF THE REASONS MANAGEMENT  DECISION HAS NOT BEEN
                                            MADEi THE REGION ISSUED THE FINAL DETERMINATION  LETTER ON AUGUST
                                            26, 1993.  ALTHOUGH THE OIG AGREED WITH  THE FINAL DETERMINATION
                                            LETTER, THE IG AUDIT TRACKING SYSTEM DID NOT REFLECT THIS ACTION
                                            UNTIL OCTOBER 13, 1993.

                                              • DESIRED TIMETABLE FOR ACHIEVING A  MANAGEMENT DECISION! THIS
                                            AUDIT IS CLOSED.
                                             IO FOLLOWUP STATUS AS OF   9/30/93
                                            explanation.)
                                                                                                           [3] (OIG agrees with the above
 P2CWN7-05-0237-8100724   DETROIT WSD                 MI 8/29/88
  Summary!  THE GRANTEE  CLAIMED UNSUPPORTED FORCE ACCOUNT COSTS OF
 $662,000 AND  INELIGIBLE  CONSTRUCTION COSTS OF $274,000.

  - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
 MADE: THE REGION AND OIG REACHED AGREEMENT IN MAY 1993 ON 10 OF
 THE 13 REPORTS ISSUED ON DETROIT WATER AND SEWAGE DEPARTMENT
 GRANTS.  GRANTEE HAS SUBSEQUENTLY PROVIDED THE REGION WITH
 VOLUMINOUS, COMPLEX DOCUMENTATION WHICH IS CURRENTLY UNDER REVIEW
 BY THE WATER  DIVISION.   THE PROPOSED FINAL DETERMINATION WAS
 AGREED TO BY  THE OIG.
                                             Regional Administrator, Region  8

                                             P2CWL8-08-0104-3100144  NORTHGLENN                  CO 3/29/93
                                              Summary i COSTS QUESTIONED OF $683, 571 FOR LEGAL COSTS OF $10, 519
                                            PROJECT INSPECTION COSTS OF $298,885;  CLAIM  SETTLEMENT COSTS OF
                                            $660, FORCE ACCOUNT COSTS OF  $259,024,  CONSTRUCTION COSTS OF
                                            $50,000, DEBRIS REMOVAL COSTS OF $64,492.

                                              - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                            MADE! THE MANAGEMENT DECISION WAS  DELAYED BECAUSE OF A LACK OF
                                            RESOURCES TO ADDRESS AUDIT RESOLUTION.
    56
                                                                                                   OFFICE OF INSPECTOR GENERAL

-------
Assignment
Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
  - DESIRED TIMETABLE  FOR  ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS  EXPECTED BY MARCH 31,  1994.
 IG FOLLOWUP STATUS AS OF   9/30/93
                                      [1]
 E2CWN7-08-0139-3300026  CASPER                       WY 3/29/93
  Summary!  GRANTEE OVERESTIMATED REQUIRED WASTEWATER TREATMENT
CAPACITY VALUED AT $6.1 MILLION.   THE GRANTEE DID NOT BASE ITS
PROJECTED NON-RESIDENTIAL FLOWS ON ACTUAL MEASURED FLOW
INFORMATION EVEN THOUGH THE  INFORMATION WAS INCLUDED IN THE
FACILITY PLAN.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE MANAGEMENT DECISION WAS DELAYED BECAUSE OF A LACK OF
RESOURCES TO ADDRESS AUDIT RESOLUTION.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED  BY MARCH 31,  1994.
 IG FOLLOWUP STATUS AS OF   9/30/93
                                      [1]
 P5BGN2-08-0019-3300033  DEPT OF  HEALTH 6 ENVIR SCI  MT 3/31/93
  Summary!  WE QUESTIONED  $12 MILLION OF UNSUPPORTED SUPERFUND
CONTRACT COSTS.  THE STATE DID NOT  HAVE ADEQUATE CONTROLS OVER
SUPERFUND CONTRACTS.   IN ADDITION,  MDHES DID NOT HAVE AN
ACCEPTABLE LEAVE ALLOCATION METHOD  OR AN EFFECTIVE AUDIT
RESOLUTION PROCESS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE MANAGEMENT DECISION WAS DELAYED BECAUSE OF A LACK OF
RESOURCES TO ADDRESS AUDIT RESOLUTION.

  - DESIRED TIMETABLE  FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED  BY MARCH 31,  1994.
 IG FOLLOWUP STATUS AS OF   9/30/93
                                      tl]
 N3HVJ3-08-0025-3500293  SOUTH DAKOTA,  STATE OF      SD 1/28/93
  Summary!  THE STATE OF SOUTH DAKOTA IMPROPERLY ALLOCATED PAYROLL
EXPENSES FOR TWO EPA GRANTS AND  MADE  UNALLOWABLE PAYMENTS TO THE
TRUSTEE FOR THE STATE REVOLVING  FUND.  AS  A RESULT THE STATE
INCURRED UNSUPPORTED COSTS OF $20,812  AND UNALLOWABLE AND
UNNECESSARY COSTS OF $1,001.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE MANAGEMENT DECISION WAS DELAYED BECAUSE OF A LACK OF
RESOURCES TO ADDRESS AUDIT RESOLUTION.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi A FINAL
DETERMINATION LETTER IS EXPECTED BY FEBRUARY 22,  1994.
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
 N3HVK3-08-0049-3500407  CASPER COLLEGE               WY 3/  3/93
  Summaryi  CASPER COLLEGE  IMPROPERLY  ALLOCATED EXPENSES BETWEEN
THE WATER POLLUTION CONTROL GRANT AND  THE  SAFE DRINKING WATER
RESEARCH AND DEMONSTRATION GRANT. AS A RESULT THE COLLEGE
OVERCHARGED THE WATER POLLUTION GRANT  BY $1,373.

  - EXPLANATION OF THE REASONS MANAGEMENT  DECISION HAS NOT  BEEN
MADEl THE MANAGEMENT DECISION WAS DELAYED  BECAUSE OF A LACK OF
RESOURCES TO ADDRESS AUDIT RESOLUTION.

  - DESIRED TIMETABLE FOR ACHIEVING A  MANAGEMENT DECISIONi  A FINAL
DETERMINATION LETTER IS EXPECTED BY MARCH  4,  1994.
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
 G3HVK3-08-0059-3500437  LAKE ANDES                   SD 3/16/93
  Summary!  THE CITY RECEIVED AN ADVERSE OPINION ON ITS FINANCIAL
STATEMENTS DUE TO CONTROL AND PROCEDURAL DEFICIENCIES AND ERRORS
AND OMISSIONS IN THE FINANCIAL STATEMENTS.  LAKE  ANDES DID NOT HAVE
A SUFFICIENT FINANCIAL MANAGEMENT SYSTEM TO QUALIFY FOR A GRANT.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEi THE MANAGEMENT DECISION WAS DELAYED BECAUSE OF A LACK OF
RESOURCES TO ADDRESS AUDIT RESOLUTION.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!  A FINAL
DETERMINATION LETTER IS EXPECTED BY MARCH 16,  1994.
                                           UNDOCUMENTED FORCE  ACCOUNT AND $1,099,261 ARCHITECT/ENGINEERING
                                           COSTS  INCURRED  UNDER PROHIBITED CONTRACT METHOD.

                                             - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADKl  A FINAL DETERMINATION LETTER HAS BEEN DRAFTED BY THE STATE
                                           AND REVIEWED BY THE LOCAL OIG.  DUE TO OUTSTANDING ISSUES, THE
                                           LOCAL  OIG  HAS DEFERRED DISCUSSION OF THIS AND THREE OTHER LOS
                                           ANGELES DRAFT FINAL DETERMINATION LETTERS UNTIL FY 1994.

                                             » DESIRBD TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi REVISED
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30, 1994.
                                            JO FOLLOWUP STATUS AS OF  9/30/93
                                                                                 [11
                                            S2CWN9-09-003S-1300117   LOS ANGELES,  CITY OF        CA 9/30/91
                                             Summaryi INELIGIBLE COSTS INCLUDED $4,004,695 FOR COST INCURRED
                                           PRIOR TO APPROVAL  $3,659,407 IN EXCESS OF APPROVAL ADDITIONAL
                                           ARCHITECT/ENGINEERING,  QUESTIONED $3, 999, 353 RELATED TO REPLACEMENT
                                           OF BAS ENGINES WITH ELECTRIC MOTORS & $5,275,186 FOR INADEQUATELY
                                           DOCUMENTED FORCE ACCOUNT COSTS.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADKl A FINAL DETERMINATION  LETTER HAS BEEN DRAFTED BY THE STATE
                                           AND REVIEWED BY THE LOCAL OIG.  DUE TO OUTSTANDING ISSUES, THE
                                           LOCAL OIG HAS DEFERRED DISCUSSION OF THIS AND THREE OTHER LOS
                                           ANGELES DRAFT FINAL DETERMINATION LETTERS UNTIL FY 1994.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! REVISED
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30, 1994.
                                            10 FOLLOWUP STATUS AS  OF  9/30/93
                                                                                 [1)
                                            S2CWN9-09-0032-1300118   MONTEREY REG HATER POLL CON CA 9/30/91
                                             Summary!  THE  STATE  CLAIMED $7,491,007 OF INELIGIBLE
                                           CONSTRUCTION, ENGINEERING,  ADMINISTRATIVE,  AND OTHER COSTS.
                                           ADDITIONAL  $51,118,958 OF UNREASONABLE PROJECT COSTS WERE
                                           QUESTIONED.

                                             - EXPLANATION  OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEl THE LOCAL  OIG DISAGREED WITH FOUR OF THE PROPOSED
                                           DETERMINATIONS AND  HAS ASKED  TO DEFER DISCUSSION UNTIL FY 1994.

                                             • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION) REVISED
                                           TARGET DATE FOR FINAL DETERMINATION LETTER IS SEPTEMBER 30,  1994.
                                            10 FOLLOWUP STATUS AS  OF  9/30/93
                                                                                 II]
                                            S2CW*8-09-0156-1300119   LOS  ANGELES,  CITY OF        CA 9/30/91
                                             Summary.  INELIGIBLE COSTS OF $2,483,872 INCLUDED $2,039,554 OF
                                           CONSTRUCTION AND FORCE ACCOUNT COST OUTSIDE SCOPE OF APPROVED
                                           PROJECT;  $444,318 OF  FORCE  ACCOUNT ALLOCABLE TO INELIGIBLE
                                           CONSTRUCTION; UNREASONABLE  COSTS OF $68,150,598 RELATED TO
                                           EXCESSIVE LANDSCAPING, FORCE  ACCOUNT AND UNUSED FACILITIES.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi FINAL DETERMINATION LETTER HAS BEEN DRAFTED BY THE STATE ANE
                                           REVIEWED BY THE LOCAL OIG.  DUE TO OUTSTANDING ISSUES,  THE LOCAL
                                           OIG HAS DEFERRED DISCUSSION OF THIS AND THREE OTHER LOS ANGELES
                                           DRAFT FINAL DETERMINATION LETTER UNTIL FY 1994.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISIONi REVISE!
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30, 1994.
                                            IG FOLLOWUP STATUS AS  OF   9/30/93
                                                                                 [1]
                                            S2CWM1-09-0157-2200040   SUTTER CREEK,  CITY OF       CA 9/30/92
                                             Summary.  COST QUESTIONED OF $12,916  INCLUDES $5,566 OF
                                           ENGINEERING COST IN EXCESS OF APPROVED  AMOUNT, AND $6,850 OF
                                           UNDOCUMENTED ADMINISTRATIVE COSTS AND $500 PERMIT FEES,
                                           UNREASONABLE COSTS OF  $343,467 RELATED  TO FIXUP FACILITIES
                                           CONSTRUCTED UNDER PRIOR GRANT.

                                             - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE LOCAL OIG DISAGREED WITH THE  MAY 18, 1993 DRAFT FINAL
                                           DETERMINATION LETTER.  THE STATE WATER RESOURCES CONTROL BOARD IS
                                           PREPARING ANOTHER DRAFT FINAL  DETERMINATION LETTER AND IS AWAITINC
                                           A LEGAL OPINION FROM ITS  LEGAL COUNSEL.

                                             - DESIRED TIMETABLE FOR  ACHIEVING A MANAGEMENT DECISIONi REVISEI
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS  SEPTEMBER 30, 1994,
                                                                      IO FOLLOWUP STATUS AS OF  9/30/93
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
                                                                                                           [11
 Regional Adminiatrotor, Ragion 9

 S2CW*8-09-0157-1300112  LOS ANGELES, CITY OF        CA 9/25/91
  Summaryi  INELIGIBLE COSTS OF $723,627  INCLUDED:  $650,255 OF
UNALLOWABLE FORCE ACCOUNT COSTS; AND  $73,372  FOR UNALLOWABLE
ENGINEERING COSTS.  UNREASONABLE COSTS  INCLUDE $879,630 OF
   APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                              57

-------
Assignment
Number
Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
 S2CWN1-09-0228-2300044  LOS ANGELES, CITY OP        CA  3/13/92
  Summary:  INELIGIBLE COSTS INCLUDED $1,400,564  FOR UNUSED
EQUIPMENT ITEMS, $202,058 FOR UNALLOWABLE ARCHITECT/ENGINEERING,
AND $572,354 FOR UNALLOWABLE FORCE ACCOUNT UNREASONABLE  COSTS  OF
$1,010,586 FOR EXCESSIVE ARCHITECT/ENGINEERING  AND  FORCE ACCOUNT,
ADDITIONAL $11,188,321 PLANT NOT OPERATING IN ACCORDANCE WITH
GRANT CONCEPTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION  HAS NOT BEEN
MADE! A FINAL DETERMINATION LETTER HAS BEEN DRAFTED BY THE STATE
AND REVIEWED BY THE LOCAL OIG.  DUE TO OUTSTANDING  ISSUES,  THE
LOCAL OIG HAS DEFERRED DISCUSSION OF THIS AND THREE OTHER LOS
ANGELES DRAFT FINAL DETERMINATION LETTERS UNTIL FY  1994.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT  DECISIONl  REVISED
TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30,
1994.
 IG FOLLOWUP STATUS AS OP  9/30/93
                                      [11
 E1SO*7-09-0219-23000«3  REGION 9 MGMT OF  STNGPELLO   CA 7/30/92
  Summaryi  REGION 9 HAS NOT EFFECTIVELY MANAGED  THE  STRNFELLOW
SUPERFUND COOPERATIVE AGREEMENT.  PROBLEMS WITH ACCURACY OF
LABORATORY ANALYSES; DELAY IN COMPLETION OF  RI/FS; DELAY IN
COMPLETION AND STARTUP OF INTERIM PRETREATMENT FACILITY;  AND
REVIEW OF STATES ROLE.

  - EXPLANATION OP THE REASONS MANAGEMENT  DECISION HAS  NOT BEEN
MADBi RESOLUTION WAS DELAYED UNTIL THE LOCAL OIG'S CONCERNS COULD
BE ADDRESSED VIA ADDITIONAL TECHNICAL AND  LEGAL SETTLEMENT
EFFORTS.  A DRAFT FINAL DETERMINATION LETTER WAS  SENT TO THE LOCAL
OIG FOR REVIEW ON SEPTEMBER 17, 1993.

  - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT  DECISION!  REVISED
TARGET DATE FOR A FINAL DETERMINATION LETTER IS DECEMBER 31,  1993.
 IG FOLLOWUP STATUS AS OP  9/30/93
                                      [2]
 E2CWN1-09-0092-2300082  RUSSIAN RIVER CSD           CA 9/25/92
  Summary:  COSTS OF $8,344,066 HAVE BEEN  QUESTIONED  AS
INELIGIBLE, INCLUDING INELIGIBLE CONSTRUCTION  ENGINEERING  AND
FORCE ACCOUNT COSTS, AN ADDITIONAL  $18,297,400 HAVE BEEN
QUESTIONED AS UNNECESSARY BECAUSE THE PLANT WAS NOT FULLY
UTILIZED.

  - EXPLANATION OP THE REASONS MANAGEMENT  DECISION HAS  NOT BEEN
MADEi THE REGION IS CURRENTLY REVIEWING THE STATE'S DRAFT  FINAL
DETERMINATION LETTER AND WILL DISCUSS IT SOON  WITH THE  STATE.

  » DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION!  TARGET
DATE FOR A FINAL DETERMINATION LETTER IS DECEMBER 31,  1994.
 IG FOLLOWUP STATUS AS OP  9/30/93
                                      [1]
 S2CWNO-09-0262-2300089  SAN FRANCISCO, CITY  S.  CO     CA 9/30/92
  Summary!  INELIGIBLE COST INCLUDE  $50,015 OF  UNALLOWABLE
ARCHITECT/ENGINEERING COSTS AND  $271,092  FOR  COSTS  ALLOCABLE TO
OTHER FEDERAL FACILITIES RELATED TO  UNSUPPORTED CONSTRUCTION
ARCHITECT/ENGINEERING FORCE ACCOUNT  COSTS.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION  HAS  NOT  BEEN
MADEI THE LOCAL OIG CONTINUES TO QUESTION THE USE OF  COMPUTER TAPE
DATA IN PLACE OF TIMECARDS.  THE STATE WATER  RESOURCES  CONTROL
BOARD AND THE LOCAL OIG WILL MEET AGAIN TO DISCUSS  THIS ISSUE
AFTER OCTOBER 1, 1993.

  » DESIRED TIMETABLE FOR ACHIEVING  A MANAGEMENT DECISION!  TARGET
DATE FOR A FINAL DETERMINATION LETTER IS  SEPTEMBER  30,  1994.
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
                                            E2CNMO-09-0291-3200028   NIPOMO COMM SERV. DIST.     CA 2/11/93
                                             Summaryi   INELIGIBLE COSTS OF $45,237 INCLUDES $8,541.00 OF
                                           EXCESSIVE CONSTRUCTION COSTS AND $36,696.00 OF UNALLOWABLE
                                           ENGINEERING, $4,853,609 REPRESENTS COSTS RELATED TO UNDERUTILIZED
                                           FACILITIES.

                                             - EXPLANATION OP THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE REGION RECEIVED THE STATE'S DRAFT FINAL DETERMINATION
                                           LETTER ON SEPTEMBER 27,  1993 AND HAS SINCE SENT IT THE LOCAL OIG
                                           FOR ITS REVIEW.

                                             • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! REVISED
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30, 1994 .
                                            10 FOLLOWUP  STATUS  AS  OF  9/30/93
                                                                                 [1]
                                            S2CWN9-09-0028-3300010   SACRAMENTO RCSD             CA 2/ 1/93
                                             Summary.   INELIGIBLE COSTS $1,395,800 INCLUDE: $710,337 FOR
                                           CONSTRUCTION COSTS  IN EXCESS OF APPROVED,  $320,600 UNALLOWABLE
                                           ADMINISTRATIVE  AND  FORCE ACCOUNT,  $163,079.00 OF UNALLOWABLE
                                           ARCHITECT/ENGINEERING AND $201,734.00 OF LAND COSTS $2,624,778 OF
                                           UNREASONABLE COSTS  IN EXCESS OF APPROVED GRANT AMOUNT.

                                             - EXPLANATION OP  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE REGION IS WORKING WITH THE STATE TO RESOLVE TECHNICAL
                                           ISSUES BEFORE THE DRAFT FINAL DETERMINATION LETTER CAN BE DRAFTED.

                                             - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                           DETERMINATION LETTER IS  EXPECTED BY APRIL 29, 1994.
                                             10 FOLLOWUP  STATUS  AS  OF  9/30/93
                                                                                 [1]
                                            S2CWNO-09-0242-3300022   SAUSLITO MARIN CSD          CA 3/16/93
                                             Summaryi  INELIGIBLE COST OF $1,058,613 INCLUDES $1,002,874 FOR
                                           COSTS ALLOCABLE  TO OTHER FEDERAL FACILITIES AND $55,739 FOR
                                           UNALLOWABLE ARCHITECT/ENGINEERING AND ADMINISTRATIVE COSTS.
                                           $8,023,895 OF  UNREASONABLE COST QUESTIONED BECAUSE PLANT DID NOT
                                           MEET DISCHARGE REQUIREMENTS.

                                             - EXPLANATION  OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE REGION IS WORKING WITH THE STATE TO RESOLVE TECHNICAL
                                           ISSUES BEFORE THE DRAFT FINAL DETERMINATION LETTER CAN BE DRAFTED.

                                             . DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                           DETERMINATION  LETTER IS  EXPECTED BY SEPTEMBER 30, 1994.
                                             IO FOLLOWUP  STATUS  AS  OF  9/30/93
                                                                                 [1]
                                            S2CWN2-09-0046-3300023   WATSONVILLB,  CITY OP       CA   3/18/93
                                              Summaryi  INELIGIBLE COST QUESTIONED OF $521, 020 REPRESENTS FORCE
                                           ACCOUNT AND ENGINEERING COSTS CONSIDERED OUTSIDE THE SCOPE OF THE
                                           APPROVED PROJECT. UNNECESSARY COSTS INCLUDE :  $2 , 457 , 378 IN EXCESS
                                           OF GRANT AMOUNT AND $24,201,000 FOR UNDERUTILIZED FACILITIES.

                                              - EXPLANATION OF  THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                           MADE! THE REGION HAS REQUESTED REVISIONS TO THE FINAL DETERMINATION
                                           LETTER FROM THE STATE WATER RESOURCES CONTROL BOARD  (SWRCB) .  THE
                                           SWRCB IS REDRAFTING THE FINAL DETERMINATION LETTER AND IS AWAITING
                                           MORE INFORMATION  FROM THE U.S.  CORPS OF ENGINEERS.

                                              > DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! REVISED
                                           TARGET DATE FOR A FINAL DETERMINATION LETTER IS SEPTEMBER 30, 1994.

                                            IO FOLLOWUP  STATUS AS OF  9/30/93   [1]
                                            S2CWNO-09-0077-3300031  FRESNO,  CITY OF            CA   3/29/93
                                             Summaryi   INELIGIBLE COSTS OF $1,454,430 INCLUDES $37,022 FOR
                                           UNAPPROVED  COSTS;  $51,674 ALLOCABLE TO INELIGIBLE CONSTRUCTION;
                                           $198,000  FOR UNUSED EQUIPMENT;  AND $1,167,734 FOR REPLACEMENT
                                           FACILITIES;  $433,434 QUESTIONED FOR NONCOMPLIANCE WITH GRANT
                                           CONCEPT APPROVAL.

                                             - EXPLANATION OF THE REASONS  MANAGEMENT DECISION HAS NOT BEEN
                                           MADEi AS OF SEPTEMBER 16,  1993 THE LOCAL OIG REQUESTED A COMPLETION
                                           DATE FOR  ONE OF THE AUDIT FINDINGS.

                                             . DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! REVISED
                                           TARGET DATE FOR A FINAL DETERMINATION  LETTER IS DECEMBER 31, 1993.
                                                                      IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [1]
                                                                      •2ANT2-09-0333-3400016  LAKEPORT SD MIDDLBTOWN      CA  1/21/93
                                                                       Summary:   THE LAKE COUNTY SANITATION DISTRICT SEWER PROJECT
                                                                     CONSTRUCTED IN MIDDLETOWN, CALIFORNIA DID NOT MEET THE EFFLUENT
                                                                     DISPOSAL OBJECTIVE OF ITS $7.2 MILLION CONSTRUCTION  GRANT.

                                                                       -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT  BEEN
                                                                     MADEi AT THE OIG REQUEST, THE GRANTEE,  THE STATE, AND  A CONTRACTOR
                                                                     ARE  WORKING ON A CORRECTIVE ACTION PLAN TO CORRECT SYSTEM
                                                                     DEFICIENCIES.  AT THE OIG'S REQUEST, THIS SCHEDULE WILL BE ADDED TO
   58
                                                                         OFFICE OF INSPECTOR GENERAL

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 Assignment
 Number
                          Title
Final Report
     Issued
Assignment
Number
Title
Final Report
     Issued
 THE FINAL DETERMINATION LETTER.

   - DESIRED  TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
 DETERMINATION  LETTER IS EXPECTED BY JUNE 30,  1994.
 10 FOLLOWOP STATUS AS  OF  9/30/93
                                      [2]
 E2AWT3-09-OOB2-3400037   SAN DIEGO,  CITY OF          CA   3/29/93
  Svunmaryi  THE  CITY  OF  SAN  DIEGO HAS CONSTRUCTED AN $11.8 MILLION
 LAND OUTFALL WHICH WILL  NOT  BE USED  BY THE CITY FOR THE INTENDED
 PURPOSE OF THE GRANT  NOR WILL IT BE  USED IN THE FORESEEABLE
 FUTURE.

  - EXPLANATION  OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
 MADEl THE REGION IS SCHEDULED TO MEET WITH REGIONAL ATTORNEYS ON
 OCTOBER 14, 1993 TO DISCUSS  THE IMPOSED COURSE OF ACTION RESULTING
 FROM A TRIAL HEARING  CONDUCTED ON OCTOBER 8,  1993.

  - DESIRED TIMETABLE FOR ACHIEVING  A MANAGEMENT DBCISIONl REVISED
 TARGET DATE FOR  A FINAL  DETERMINATION LETTER IS SEPTEMBER 30,
 1994.
 IO FOLLOWUP STATUS AS  OF   9/30/93
                                      [2]
 E2AWP9-09-0065-9400025  HOMELAND EARLY WARNING      CA 3/31/89
  Summaryi  SPECIAL REVIEW OF  CONSTRUCTION GRANT OF WASTEWATER
TREATMENT PLANT FOUND  $3,737,139  IN  FED.  SHARE COSTS QUESTIONED.
AN EARLY WARNING LETTER ADVISED THAT COSTS FOR THE COLLECTION
SYSTEM PORTION OF THE  PROJECT  DID NOT QUALIFY FOR FUNDING BECAUSE
-OF THE '2/3 RULE' .

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE REGION REQUESTED ASSISTANCE FROM THE AUDIT REVIEW GROUP
IN RESOLVING THIS AUDIT.  THE  OFFICE OF WATER ISSUED A POLICY
CLARIFICATION ON THE 2/3 RULE.  THE  OFFICE OF GENERAL COUNSEL
EXPECTS TO REVIEW THE  POLICY CLARIFICATION IN FY 1994.   THE REGION
WILL APPLY THE POLICY  CLARIFICATION  IN RESOLVING THIS AUDIT.

  ' DESIRED TIMETABLE  FOR ACHIEVING  A MANAGEMENT DECISION!
RESOLUTION CANNOT BE DETERMINED AT THIS TIME.

 IG FOLLOWUP STATUS AS OF  9/30/93   [6]


 E2AWP9-09-0230-9400043  EARLY WARNING-MARINA CWD    CA   9/26/89
  Summaryi  SPECIAL REVIEW OF  GRANT  TO BUY CAPACITY RIGHTS FROM
REGIONAL WASTEWATER TREATMENT  PLANT  RESULTED  IN AN EARLY WARNING
LETTER TO EPA MANAGEMENT THAT  THE AWARD VIOLATED 40 CFR3S 2250 AND
THAT TOTAL COSTS QUESTIONED OF $1,694,000 (F.S.  $931,700)  WOULD
CAUSE 'WINDFALL'.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl RESOLUTION OF THIS AUDIT IS LINKED TO THE MONTEREY EARLY
WARNING AUDIT.  THE REGION AND OIG ARE DISCUSSING ISSUES TO HELP
REACH RESOLUTION.

  * DESIRED TIMETABLE  FOR ACHIEVING  A MANAGEMENT DECISION: A FINAL
DETERMINATION LETTER IS EXPECTED  BY  SEPTEMBER 30,  1994.

 IG FOLLOWUP STATUS AS OF  9/30/93   [4]


 Regional Administrator, Region 10

 P2CWL9-10-0002-2100669  PIERCE COUNTY UTILITIES DEP WA   9/30/92
  Summaryi  THE GRANTEE CLAIMED TOTAL QUESTIONABLE COSTS OF
$4,496,181 FOR REIMBURSEMENT UNDER EPA'S CONSTRUCTION GRANTS
PROGRAM.   COST CLAIMED OF $2,179,647 WERE FOUND TO BE INELIGIBLE
AND CLAIMS FOR $2,316,534 WERE UNNECESSARY AND UNREASONABLE.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE REGION OBTAINED ADDITIONAL DOCUMENTATION FOR REVIEW OF
GRANT ELIGIBILITY AND  LACK OF  DOCUMENTATION ISSUES IN AUDIT
REPORT.   THE REGION MUST REVIEW 16 GRANTS AND EXTENSIVE
DOCUMENTATION OBTAINED FROM VARIOUS  SOURCES TO REACH RESOLUTION.
THE REGION WILL ISSUE  THE DRAFT FINAL DETERMINATION LETTER TO THE
OIG BY NOVEMBER 30,  1993.

  - DESIRED TIMETABLE  FOR ACHIEVING  A MANAGEMENT DECISION! A FINAL
DETERMINATION LETTER IS EXPECTED  BY  MARCH 31,  1994.
 IG FOLLOWUP STATUS AS OF  9/30/93
                                      [1]
 P2CWN1-10-0042-2300088  NEWBERO, CITY OF            OR    9/30/92
  Summary!  INELIGIBLE COSTS OF $8,998 RELATED COSTS IN  EXCESS  OF
APPROVAL; $151,758 FOR COSTS NOT SUPPORTED BY ADEQUATE SOURCE
DOCUMENTATION; AND $15,480,301 UNREASONABLE RELATED TO UNUSED
FACILITIES AND EXPIRED NPDES PERMIT.

  - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
MADEl THE REGION HAS ENCOUNTERED A DELAY IN GETTING ADDITIONAL
INFORMATION FROM THE AUDITEE, STATE, AND CORPS OF ENGINEERS FOR
                                                                     REVIEW AND RESOLUTION OF 'UNSUPPORTED COSTS' AND 'COSTS CLAIMED IN
                                                                     EXCESS OF APPROVED AMOUNTS' ISSUES CONTAINED IN THE AUDIT REPORT.
                                                                     THE REGION WILL ISSUE THE  DRAFT FINAL DETERMINATION LETTER TO THE
                                                                     OIG BY OCTOBER 31, 1993.

                                                                       • DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                                                     DETERMINATION LETTER IS EXPECTED BY MARCH  31,  1994.
                                                                      IO FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [1]
                                                                      P2CNN9-10-0107-2300091  FED WAY WATER AND SEW      WA   9/30/92
                                                                       Summaryi INELIGIBLE COSTS OF $1,304,725 CONSISTED OF $67,287 FOR
                                                                     UNALLOWABLE CONSTRUCTION COST,  $61,048 RELATED TO INELIGIBLE CONST
                                                                     PERCENTAGE; $21,243 OF UNAPPROVED ARCHITECT/ENGINEERING; AND
                                                                     $1,155,147 RELATED TO EXCESS CAPACITY.  ALSO QUESTIONED WERE
                                                                     $2,242,049 AS UNSUPPORTED.

                                                                       - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                     MADE i THE REGION IS OBTAINING ADDITIONAL INFORMATION  FROM THE
                                                                     GRANTEE AND THE STATE TO REVIEW/RESOLVE ISSUE OF GRANT ELIGIBLE
                                                                     COSTS FOR A 30-YEAR PLAN VS. A 20-YEAR PLAN.  THE ADDITIONAL
                                                                     DOCUMENTATION WAS TIME CONSUMING TO OBTAIN SINCE THE PROJECT IS 15
                                                                     YEARS OLD.  THE REGION WILL ISSUE THE DRAFT FINAL DETERMINATION
                                                                     LETTER TO THE OIG BY OCTOBER 29, 1993.

                                                                       - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                                                     DETERMINATION LETTER IS EXPECTED BY MARCH 31, 1994.
                                                                      IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           (II
                                                                      E6EWN2-10-0020-3300012  REVIEW OF ADEC SDW  PROGRAM  AK  2/10/93
                                                                       Summaryi  PROCEDURAL WEAKNESSES IN THE ALASKA DEPARTMENT OF
                                                                     ENVIRONMENTAL CONSERVATION'S  (ADEC) SAFE DRINKING WATER  PROGRAM
                                                                     RESULTED IN COSTS THAT WERE UNAUDITABLE.  ALSO, ADEC FAILED TO
                                                                     EITHER COMPLETE TIMELY OR DOCUMENT COMPLETION FOR SIX WORK PLAN
                                                                     OBJECTIVES THAT WE REVIEWED.

                                                                       - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                     MADEl THE REGION WAS AWAITING THE SIGNING OF THE STATE EPA
                                                                     AGREEMENT (SEA)  WHICH  INCLUDES A PLAN FOR CORRECTIVE ACTIONS.  THE
                                                                     SEA WAS SIGNED AT THE END OF AUGUST, 1993.  THE REGION SENT A DRAFT
                                                                     FINAL DETERMINATION LETTER TO THE OIG ON SEPTEMBER 30,  1993 FOR ITS
                                                                     CONCURRENCE.

                                                                       - DESIRED TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION! A FINAL
                                                                     DETERMINATION LETTER IS EXPECTED BY NOVEMBER 30, 1993.
                                                                      10 FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [4]
                                                                      P2CWNO-10-0008-3300030  CHEHALIS, CITY OF           WA 3/29/93
                                                                       Summaryi   INELIGIBLE COSTS OF $119,184 INCLUDES $6,770 OF
                                                                     UNALLOWABLE ADMINISTRATIVE & ARCHITECT/ENGINEERING; $22,986.00 OF
                                                                     COSTS OUTSIDE SCOPE OF APPROVED PROJECT; $13,038.00 FOR REPAIR
                                                                     WORK; $43,390.00 FOR UNSUBSTANTIATED FORCE ACCOUNT AND
                                                                     ARCHITECT/ENGINEERING COSTS.

                                                                       - EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                     MADEl THE REGION SENT THE DRAFT FINAL DETERMINATION LETTER TO THE
                                                                     OIG ON SEPTEMBER 22,  1993.  THE OIG DISAGREED WITH THE DRAFT FINAI
                                                                     DETERMINATION LETTER.  ALTHOUGH THE AUDIT FINDINGS ARE UNDER
                                                                     $100,000, THE REGION IS HOLDING ISSUANCE OF THE FINAL DETERMINATE
                                                                     LETTER AS A COURTESY TO THE OIG.  THE REGION AND OIG ARE CONTINUINC
                                                                     DISCUSSIONS.

                                                                       - DESIRED  TIMETABLE FOR ACHIEVING A MANAGEMENT DEC IS ION 1 A FINA!
                                                                     DETERMINATION LETTER IS EXPECTED BY NOVEMBER 30, 1993.
                                                                      IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           [2]
                                                                      E3BO*6-10-0066-8100761  MOSES LAKE IRR & REHAB DIST WA 8/31/68
                                                                       Summaryi   INTERIM AUDIT OF DEMONSTRATION GRANT TO RESTORE MOSE:
                                                                     LAKE AND TO  CONTROL NON-POINT POLLUTION SOURCES FOUND TOTAL COST:
                                                                     QUESTIONED OF $2,439,103  (F.S. $1,205,039).   GRANTEE USED STANDARI
                                                                     METHODOLOGY  INSTEAD OF DEVELOPING NEW INNOVATIVE TECHNIQUES.

                                                                       -  EXPLANATION OF THE REASONS MANAGEMENT DECISION HAS NOT BEEN
                                                                     MADEl THE HEADQUARTER OIG AND THE OFFICE OF WATER ARE REVIEWING
                                                                     ISSUES THAT  ARE STILL NOT RESOLVED.  THE OFFICE OF GENERAL COUNSE]
                                                                     ESTABLISHED  A  LEGAL TEST TO ADDRESS THE ISSUE UNDER REVIEW.  THI
                                                                     OIG  IS WAITING ON ITS ENGINEERS FOR REVIEW RESULTS.

                                                                       «  DESIRED  TIMETABLE FOR ACHIEVING A MANAGEMENT DECISION: A FINA'
                                                                     DETERMINATION  LETTER IS EXPECTED BY MARCH 31, 1994.
                                                                      IG FOLLOWUP STATUS AS OF  9/30/93
                                                                                                           161
                                                                     TOTAL AUDITS ISSUED BEFORE REPORTING PERIOD FOR WHICH NO MANAGEMEN1
                                                                     DECISION WAS MADE DURING THE REPORTING PERIODl 100

                                                                      * » Agency procedures do not require the IG'S approval on Agency'
                                                                     Management Decision on an audit (other than  a preaward or an
                                                                     internal and management audit) with the Federal share of questions
                                                                     costs of less than $100,000.   Therefore, we  have not provided  a
                                                                     summary of these audits.
   APRIL 1, 1993 THROUGH SEPTEMBER 30, 1993
                                                                                                                       59

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PIG MAILING ADDRESSES and TELEPHONE NUMBERS
PIG HOTLINE  (800)  424-4000 or  (2021 260-4977
Headquarters
Environmental Protection Agency
Office of Inspector General
401 M Street, S.W. (2441)
Washington, DC 20460
(202) 260-3137

Atlanta
Environmental Protection Agency
Office of Inspector General
1475 Peachtree Street, ME
Suite 1100
Atlanta, GA 30309-3003
Audit: (404) 347-3623
Investigations: (404) 347-2398

Boston
Environmental Protection Agency
Office of Inspector General
JFK Federal Building (OIG)
(office at 1 Congress St)
Boston, MA 02203
Audit: (617)565-3160
lnvestigations:(617) 565-3928

Chicago
Environmental Protection Agency
Office of Inspector General
77 West Jackson Boulevard
13th Floor (IA-13J)
Chicago, IL 60604
Audit: (312)353-2486
Investigations: (312) 353-2507

Cincinnati
Environmental Protection Agency
Office of Inspector General
4411 Montgomery (MS Norwood)
Cincinnati, OH 45268-7001
Audit: (513) 366-4360

Dallas
Environmental Protection Agency
Office of Inspector General (6OIG)
1445 Ross Avenue, Suite 1200
Dallas, Texas 75202-2733
Audit: (214) 655-6621
Investigations: (404) 347-2398

Denver
Environmental Protection Agency
Office of Inspector General
999 18th Street, Suite 500
Denver,  CO 80202-2405
Audit: (303) 294-7520
Kansas City
Environmental Protection Agency
Office of Inspector General
726 Minnesota Avenue
(office at 630 Minnesota Ave)
Kansas City, KS 66101
Audit: (913)551-7824
Investigations: (312) 353-2507

New York
Office of Inspector General
90 Church Street, Room 802
New York, NY  10007
Audit: (212)  264-5730
Investigations: (212) 264-0399

Philadelphia
Environmental Protection Agency
Office of Inspector General
841 Chestnut Street, 13th Floor
Philadelphia, PA 19107
Audit: (215)597-0497
Investigations: (215) 597-9421

Research Triangle Park, NC
Environmental Protection Agency
Office of Inspector General
Catawba  Building
Highway 54, Mail Drop 53
Research Triangle Park, NC 27711
Audit: (919)541-1028
Investigations: (919) 541-1027

Sacramento
Environmental Protection Agency
Office of inspector General
650 Capitol  Mall, Suite 6309
Sacramento, CA 95814
Audit: (916)551-1076

San Francisco
Environmental Protection Agency
Office of Inspector General
75 Hawthorne St (1-1)
19th Floor
San Francisco, CA 94105
Audit: (415)744-2445
Investigations: (415) 744-2465

Seattle
Environmental Protection Agency
Office of Inspector General
1111 3rd Avenue, Suite 1460
Seattle, WA 98101
Audit: (206) 553-1273
Investigations: (415) 744-2465
60

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