United States
Environmental Protection
Agency
Administration And
Resources Management
(3304)
EPA 205-R-95-002
May 1995
&EPA
Management's Semiannual Report
To the Congress On Audits
October 1,1994 Through
March 31,1995
-------
Cover photo:
Blue Heron
by Steve Delaney
-------
TABLE OF CONTENTS
Table of Contents i
Overview of Audit Management Activities
Accomplishments and Initiatives 1
Overview of Audit Activity 2
Statistical Tables
Table 1: Final Action on Audit Reports With
Disallowed Costs 6
Table 2: Final Action on Audit Reports
With Recommendations That Funds
Be Put To Better Use . 7
Table 3: Audit Reports Under Appeal or
Where a Legislative Solution is
Sought ' : 8
Table 4: Audit Reports With a Management
Decision But No Final Action After
One Year 9
EPA's Semiannual Report to Congress - Spring 1995
Page i
Recycled/Recyclable Printed with Vegetable Based Inks on Recycled Paper (20% Postconsumer)
-------
-------
OVERVIEW OF AUDIT MANAGEMENT ACTIVITIES
This Spring 1995 semiannual report on audit activity is submitted by the
Environmental Protection Agency in response to the requirements of the Inspector
General Act Amendments of 1988. It highlights significant audit management
accomplishments and initiatives undertaken at EPA and provides an overview of audit
activity in the previous six-month period -- October 1, 1994 through March 31, 1995.
ACCOMPLISHMENTS AND INITIATIVES
EPA continues to emphasize audit management and the tracking of followup
activities. The Agency's audit tracking system, when released in 1990, provided a
mainframe computer-based system for tracking and reporting of audit activity. Since
1990, the system has had several upgrades. It now operates within a network of local
area networks. EPA has broadened report capabilities and streamlined file transfers.
Also, automated quality control edits on data accuracy were built-in. To simplify data
entry and enhance consistency of information, the system receives certain data monthly
from the Office of Inspector General database.
Feb90ť Jul91~ Dec 92-- Jan 94- JANUARY 1995
EPA CONTINUES TO MAKE IMPROVEMENTS
TO ITS AUDIT TRACKING SYSTEM
In January 1995, the Agency issued another release of the operating software.
This incorporated additional suggestions and requests from the network of audit
followup coordinators. New features included: greater flexibility for user-defined
reporting; first-time capabilities to archive inactive records; expanded on-screen help
explanations; more efficient file transfer processing; new user-defined data elements;
simplified report selection; paperless reviewing of reports on-screen; better tracking of
financial assistance audits in appeal; and improved followup tracking of corrective
actions in performance audits.
With this new release, EPA sponsored national training for the audit followup
coordinators, defined the capabilities of the improved system and provided updated
guidance on various audit management concepts.
EPA's Semiannual Report to Congress - Spring 1995
Page 1
-------
In an effort to keep the system current with the needs of the audit management
community in EPA, we are continuously working to identity potential improvements to
the followup process and plan to issue further software enhancements in the future.
Additionally, the leaders of EPA's audit management quality action team are
progressing on work to clarify and update the EPA Order on audit management A
revised directive is expected to be available for Agency comment in the Fall of 1995.
OVERVIEW OF AUDIT ACTIVITY
ť Audit Reports With Final Action
During the reporting period, EPA had a total of 514 management decisions
pending final action. This is a decrease of 47 from the total of 561 pending final actions
noted in the Fall 1994 report. Since the beginning of EPA's Congressional reporting on
its audit activity, the number of audit reports pending final action during each
semiannual period has averaged 620 and has ranged from a high of 791 (Spring 1990) to
a low of 471 (Fall 1991).
During the six-month period, October 1, 1994 through March 31, 1995, EPA
completed final action on 133 audits - a decrease of 124 from the previous reporting
period. Of these, 104 were financial assistance audits with $20,882,703 in disallowed
costs, 20 were preaward contract audits resulting in $190,121 of unobligated funds
reported as put to better use, and 9 were performance audits with internal EPA
corrective actions completed. Detailed information on this audit activity is presented
below.
Financial Assistance Audits - For financial assistance audits, final action occurs
when the Agency recovers from the grantee, or writes off, costs disallowed in the
Agency's management decision on the audit. For the 104 financial assistance audit
reports where EPA took final action this period, the Office of the Inspector General
questioned a total of $45,441,443. After careful management review and agreement by
the OIG, the Agency disallowed $20,882,703. Of this, EPA recovered $15,406,050 and
reinstated or wrote off $5,476,653.
EPA's Semiannual Report to Congress - Spring 1995
Page 2
-------
Costs
OIG QUESTIONED COSTS VS. AGENCY DISALLOWED COSTS
(In millions)
1ZU
100
OA
60
40
on
0
50.9
77.4
-
Ť*
18.6
"~~ I
85.2
- -
216
_ : ._ -_-
111.5
, ,
563
f~--^
-.>-"".-;
__-__ \ŁŁ-- "
- ~
45:4
2Q.9~"
~1 '
Spring 93
Fall 93
OlOQutttlontdCott*
Agmey DJnltoiwd Co.tt
Spring 94 FaU94
Reporting Period
Spring 95
There are several reasons why questioned costs are significantly higher than
disallowed costs. In many cases, the audited grantees or contractors provide additional
cost documentation to the Agency after the OIG has completed its audit. This
documentation supports the allowability of the claimed costs. Second, EPA officials may
allow additional costs claimed by the grantee based on further clarification of the
grantee's activities as they relate to the grant regulations.
Prior to issuing the final determination letter to the grantee, Agency officials are
required to reach agreement with the OIG on the amount of disallowed costs associated
with the audit. It is this amount that the Agency then seeks to recover through an offset
against future payments to the grantee or contractor, a "cash" collection, receipt of
property, or through other means determined appropriate by the Agency. If efforts to
recover these funds from the recipient are not successful, the Agency may deem the
funds uncollectible and write-off the amount(s).
Preaward Contract Audits - Preaward contract audits evaluate whether the
prospective costs and pricing data submitted in contract proposals were appropriate,
accurate and complete. Final action occurs when the Agency awards the contract to a
contractor or cancels the solicitation. The Agency completed final action on 20
preaward contract audits in this reporting period. Of these, 5 audits resulted in $190,121
in unobligated funds reported as put to better use.
Internal Performance Audits - Internal performance audits are audits of internal
Agency programs, organizations, functions or activities. For internal performance audits,
final action occurs when the Agency completes implementation of the corrective actions
plan to remedy weaknesses identified in the audit. Many of these audits involve
complex issues and require extensive effort by the responsible office to remedy
deficiencies cited by the OIG. In some cases, EPA's corrective action plans are based
EPA's Semiannual Report to Congress - Spring 1995
_Page 3
-------
on the need for states or other entities to implement their own corrective actions which
are beyond EPA's direct control. The Agency took final action on 9 internal
performance audits in this reporting period.
* Audit Reports With No Final Action After One Year
As of March 31, 1995, there were 68 audits where a report had been issued,
management's response had been accepted by the OIG, but final actions were
incomplete after one year. This represents an increase of 15 audits over the last
reporting period. Of the 68 audits awaiting final action after one year, 37 are projected
for closure in 1995, and an additional 13 will be closed upon receipt of a monetary
reimbursement from the grantee or contractor.
AUDITS WITH FINAL ACTION EXCEEDING ONE YEAR
Spring 92 Fall 92 Spring 93 Fall 93 Spring 94 Fall 94
Reporting Period
Spring 95
As illustrated by the chart below, the majority of audits reported this period with
corrective actions exceeding one year are internal performance audits of Agency
operations and external assistance agreement audits. The explanations for each of the
audits taking the Agency more than one year to complete final action are listed in detail
in Table 4 of this report.
TYPES OF AUDITS WITH PAST DUE FINAL ACTION
33 Internal
18 External
1 Singla
16 Contract/SF Grant
Reporting Period: Spring 1995
EPA's Semiannual Report to Congress - Spring 1995
Page 4
-------
External Financial Audits - Generally, the reason that followup on external
audits remains open one year after issuance of the management decision is that the
Agency is awaiting monetary reimbursement from the grantee. Once the EPA collects
the Federal share of costs owed the government, EPA closes followup action on the
audit. Of the 31 external financial audits reported in the previous semiannual report as
having no final action after one year, 6 have been closed. Accounts receivable collection
activities continue on the remainder.
Internal Performance Audits - Overall, the reason that followup on internal
performance audits remains open one year after issuance of the management decision is
because of long-term corrective action plans. As stated above, EPA's corrective action
plans can be based on the need for states and other entities to implement their own
corrective actions. Of the 22 internal performance audits reported in the previous
semiannual report as having no final action after one year, 1 is now closed. Corrective
actions on the remainder continue; 15 of these are projected for closure in 1995.
ť> Audit Reports In Appeal
At the end of this reporting period, there were 140 management decisions on
financial assistance audits that were the subject of a formal administrative appeal, as
allowed by EPA regulations. This is an increase of 3 appealed management decisions
from the total of 137 reported in the last reporting period. The disallowed costs in these
140 appealed management decisions amount to $131,343,249.
MANAGEMENT DECISIONS UNDER APPEAL
120
80
40
J37 _
140
Spring 92 Fall 92
Spring 95
Spring 93 Fall 93 Spring 94 Fall 94
Reporting Period
Management decisions for financial assistance audits that seek monetary
reimbursement from grantees are often appealed by the grantee, requiring EPA to
suspend taking account receivable collection action. In January 1995, EPA expanded the
capabilities oi its audit tracking system to allow the Agency to better monitor the status
of appealed management decisions and the results of these appeals. The Agency has
begun to collect data in this area for trends analysis and future reporting.
EPA's Semiannual Report to Congress - Spring 1995
Page5
-------
-------
TABLE 1: FINAL ACTION ON
AUDIT REPORTS WITH DISALLOWED COSTS
A. Balance reported at the end of previous period.
B. Adjustments to the balance of the previous report.1
C. Audit reports with management decisions on which the final
action had not been taken at the beginning of the period.
D. Audit reports on which management decisions were made.
during the period.
(i) Management decisions with disallowed costs.
(ii) Management decisions with no disallowed costs.
E. Total audit reports pending final action during the period.
F. Audit reports on which final action was taken during the
period.
(i) Recoveries
a) Offsets
b) Collections
c) Value of Property
d) Other
(ii) Write-Offs
G. Audit reports needing final action at the end of the period
(subtract F from E).
Number of
Audits
256
-2
254
62
Disallowed
Costs
$158,936,180
-2,202,139
156,734,041
39,111,924
47
15
369*
39,111,924
0
195,845,965
104 20,882,703s
12,950,971
2,312,346
0
142,733
3,241,177
265 $174,963,262
1 Differences in number of reports and amounts of disallowed costs between this report and our previous semiannual report
result from adjustments made to our audit tracking system.
2 This includes 53 management decisions on audits for which no costs were questioned.
3 This amount includes $2,235,476 in final adjustments to audit recoveries made by management.
Page 6
EPA's Semiannual Report to Congress Spring 1995
-------
TABLE 2: FINAL ACTION ON AUDIT REPORTS
WITH RECOMMENDATIONS THAT FUNDS BE PUT TO BETTER USE
Number of
Audits
Dollar Value
A. Balance reported at the end of previous period.
B. Adjustments to the balance of the previous report.1
C. Audit reports with management decisions on which the final
action had not been taken at the beginning of the period.
D. Audit reports on which management decisions were made
during the period.
(i) Management decisions with funds to be put to better
use
(ii) Management decisions with no funds to be put to
better use
E. Total audit reports pending final action during the period.
F. Audit reports on which final action was taken during the
period.
(i) Value of recommendations that were actually
completed
(ii) Value of recommendations that management decided
should not or could not be completed
G. Audit reports needing final action at the end of the period
(subtract F from E).
48 $1,872,085
8 69,433
56 1,941,518
16
11
822
29
53
120,688
120,688
0
2,062,206
190,121
190,121
0
1,872,085
1 Differences in number of reports and amounts of funds put to better use between this report and our previous semiannual
report result from adjustments made to our audit tracking system.
2 This includes 10 management decisions on audits for which no funds were recommended for better use.
Page?
EPA's Semiannual Report to Congress - Spring 1995
-------
TABLE 3: AUDIT REPORTS UNDER APPEAL OR
WHERE A LEGISLATIVE SOLUTION IS SOUGHT
Under Administrative Appeal
Under Judicial Appeal
Legislative Solution Being Sought
140
0
0
140
Page 8
EPA's Semiannual Report to Congress - Spring 1995
-------
TABLE 4: AUDIT REPORTS WITH A MANAGEMENT DECISION BUT
NO FINAL ACTION AFTER ONE YEAR
INTERNAL AND MANAGEMENT AUDITS
Internal and management audits are independent reviews of Agency programs and operations to determine whether results
and objectives are achieved effectively, resources are managed efficiently, and applicable laws and regulations are being
complied with properly. Final actions for an audit occur when all corrective actions have been implemented. Final action
may take longer than one year when corrective actions are complex and lengthy.
Report 0100206 - Dated 9/30/91 USER CHARGE SYSTEM
Two of three commitments - incorporating the user system into the Municipal Wastewater Pollution Prevention
Program and pursuing legislative changes have been met. The last commitment is to increase emphasis on financial
management reviews in NPDES inspections. Six training sessions are scheduled; three have been completed.
Remaining sessions and outreach materials for municipalities with construction grants will be completed by 9/30/95.
Report 0400018 - Dated 11/15/90 OIL AND CAS WASTES
Twelve of 13 commitments have been met. The last followup commitment is promulgation of the coastal oil and gas
effluent guideline. Proposal was signed by the Administrator in January 1995. Final action is scheduled for FY 1996.
Report 1100378 - Dated 4/9/93 PESTICIDES INERTS
Delays were necessary to formally resolve confidential business information issues. The program expects to complete
all but one remaining action by 12/31/96. The one remaining action - to issue data call-ins for all List 3 inerts (500
chemicals) is expected to be completed by 12/99 due to the limited availability of resources.
Report 1100422 - Dated 3/27/92 DELAWARE BAY & INLAND BAYS
The corrective action to Recommendation #2 remains on hold as the Delaware Department of Natural Resources and
Environmental Conservation is in the process of updating their NPDES program regulations. The estimated
completion date is December 1995.
Report 1100434 - Dated 3/5/93 CWA SECTION 404 CONSOLIDATED
One commitment revised 404 (q) guidance - was completed; another commitment - development of a strategic plan
is pending. An annotated outline was completed. Completion of followup is expected by end of FY 1995.
Report 1400064 - Dated 1/29/92 QA/QC OVER LAB DATA
All corrective actions have been completed except for development of a study rejection policy. The draft policy has
been developed and final policy development is expected to be completed in FY 1995.
Report 2100443 - Dated 11/2/93 LAB R&D DULUTH, MN
The OGC issued EPA Ethics Advisory 94-15 on 3/28/95, clarifying EPA Order 1000.28 - Ethics, issued on 6/7/94. Final
action was reflected as of April 1, 1995.
EPA's Semiannual Report to Congress - Spring 1995
Page 9
-------
Report 2100295 - Dated 8/2/93
EPA MGT OF CSC CONTRACT
The "policy guidance on lease vs. purchase analysis" action has been delayed due to competing priorities. Expected
completion is 9/30/95. The Defense Contracting Audit Agency audit was delayed and is now expected by June or July
of 1995. After this audit is evaluated and negotiations take place, adjustments and modifications will need to be issued
to hundreds of Delivery Orders under this contract. Expected completion is 9/30/95.
Report 2100591 - Dated 4/15/93
EPA SYS. SOFTWARE INTEGRITY
In a memo to the OIG dated January 11, 1994, the National Data Processing Division advised the DIG that all
corrective actions have been completed and asked that the audit be closed out in the OIG tracking system. CFO
auditors were in NDPD in early October 1994 to verify that all findings were addressed and resolved to their
satisfaction. As of May 9, 1995, the program is awaiting the OIG's audit close-out acceptance.
Report 2100641 - Dated 1/27/93
PCIE TASK 1
The milestone "Publish Formal Integrated IRM Plan" was approved by the Executive Steering Committee for
Information Resources Management on 3/15/95. The final two milestones, including validating the success of the
corrective actions, are scheduled to be completed by 12/30/95.
Report 2100660 Dated 3/25/93
SF FY 91 SF TRUST FUND
Due to staff shortages and other priorities of the available staff, the Financial Management Division has had to delay
the completion of the final corrective actions until 7/31/95.
Report 2100661 - Dated 1/5/93
REVIEW OF OCM GLP OPERATIONS
The timetable for completing all corrective actions has been impacted by the Agency-wide reorganization of EPA's
enforcement and compliance program. Completion of final corrective actions is expected in FY 1995.
Report 2400032 - Dated 6/25/92
GLP AUDIT, DC
All issues have been addressed except for whether an accreditation program for Good Laboratory Practices labs should
be part of the Agency-wide national Environmental Laboratory Accreditation program. A decision on this issue is
expected in FY 1995.
Report 2400056 - Dated 10/15/92
WASTE TECH IND (C/I), OH
Delay was necessary by Headquarter's decision to enhance the credibility of the risk assessment by subjecting it to
review by outside expert scientists.
Report 2400065 - Dated 1/11/93
PCB FOLLOW-UP
The inspection guidance manual is being rewritten to make it more user-friendly. A workgroup composed of EPA
Headquarters, regional and State representatives has been formed to do the rewrite. This is expected to be completed
in FY 1995.
Page 10
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 3100058 - Dated 4/20/93
SF DECADE OF SF AUDITS
The Financial Management Division has completed all of the corrective actions and will take final action in the 2nd
quarter of FY 1995.
Report 3100097 - Dated 5/17/93
PESTICIDES IMPORTS-FOLLOW-UP
With the recent Agency-wide reorganization of EPA's enforcement and compliance program, the program office
continues to work to expedite the issuance of a memorandum of understanding. Efforts continue to determine whether
the U. S. Customs Service's automated data system can partially replace the Notice of Arrival. Resolution is expected
in 1995.
Report 3100114 - Dated 7/6/93
SF INDIRECT COST RATES 87-88
The indirect cost rates for Fiscal Years 1991 and 1992 are taking longer to be computed and reviewed than was first
anticipated. The expected completion date is now 5/31/95.
Report 3100152 - Dated 6/28/93
SUPERFUND CAPPING REPORT
The Superfund Accelerated Clean-up Model concepts have been integrated into program office strategic goals, targets
and performance measures. The National Enforcement Response policy (penalties/compliance) is under development.
The Independent Government Cost Estimate model for enforcement support services contracts and cost recovery
procedures manual is expected to be completed in 1995.
Report 3100156 - Dated 4/1/93
ATHENS ERL-ORD, GA
All but eight of the corrective actions have been completed. The remaining actions are in the process of being
completed.
Report 3100175 - Dated 9/30/93
AUTOMATED CLEARING HOUSE
The Resources Management Directives System Chapter on the Automated Clearing House needs to be included in
the Green Border Agency review process before final format issuance. Therefore, the expected completion date has
been extended to 4/1/95.
Report 3100236 - Dated 6/14/93 ENV. RES. LAB NARRAGANSETT, RI
The program office has completed 67 of the 68 commitments. The final action is in the process of being completed.
Report 3100264 - Dated 1175/93 FINANCIAL STATEMENT AUDITS
Additional programming and coding is required in order for the finance system to provide accurate financial trial
balances. Reconciliation of the deferred revenue account for Superfund state contracts also requires additional
resources which will delay completion of audit followup action until 12/30/95.
Page 11
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 3100265 - Dated 11/12/93 PESTICIDE FINANCIAL STATEMENT
The Quality Action Team has had to delay a cost benefit analysis for the future implementation of an automated Fixed
Asset Sub-System to capitalize Agency assets, due to a delay by U.S. Geological Survey. This has resulted in the audit
recommendation milestones slipping to 7/31/96 as the projected date for completion.
Report 3100266 - Dated 11/1/93 ZZ ACCOUNTS
Completion of action on audit recommendations has been delayed to 12/30/95 due to contractual delays with Superfund
Cost Organization and Recovery System (SCORES) and the development of a rollover plan for Superfund Cost
Recovery Image Processing System (SCRIPS). This has delayed the regional training of Superfund program staff on
both of these systems.
Report 3100358 - Dated 11/17/93 R 10 SF RPT TO CONGRESS FY92
Corrective action has been adequately completed for 8 of the 16 issues. The remaining 8 issues have been corrected
and the Region expects to assess the adequacy of the actions before the end of May 1995.
Report 3100391 - Dated 12/23/93 RECONCILING CASH
Although some of the differences have been corrected, the Washington Financial Management Center still has to finish
investigating the final unreconciled cash system differences for FY 1991 and 1992 before final reconciliation can occur.
Cash reconciliation training also has to be scheduled. The scheduled completion date has been moved to 9/30/95.
Report 3400030 - Dated 3/26/93 PESTICIDES BANNED F/U
Proposal of the final rule has been delayed due to the complexity of the rule, the large number of public comments,
and the competing priorities for resources within the Pesticide program. Promulgation of the final rule is anticipated
in late 1996.
Report 3400033 - Dated 10/6/93 WORKMANS' COMP
EPA officials accepted all of the Federal Employees' Compensation Act Workgroup's audit recommendations and have
begun implementation. A National Program Manager for EPA's Workers' Compensation program has been appointed.
The expected completion date for the last corrective action is 9/30/95.
Report 3400096 - Dated 12/20/93 SF-SITE FOLLOWUP
This audit has three outstanding followup commitments. The office is working to complete these actions by the end
of FY 1995.
Report 4100205 - Dated 3/11/94 PESTICIDES THEME REPORT
The corrective actions are ongoing with small delays being experienced. The planned completion of all corrective
actions remains mid-FY 1996.
EPA's Semiannual Report to Congress - Spring 1995
Page 12
-------
Report 4100233 Dated 3/31/94
AWARD OF ICF CONTRACTS
Only one corrective action - to establish a policy for the percentage of evaluation points that can be awarded in the
area of corporate experience remains open. The policy has been drafted and the Office of Acquisition Management
Competition Advocate is currently reviewing it. It is expected to be completed in May 1995.
Report 9100467 - Dated 12/14/89
CHESAPEAKE BAY HI
Metals issues have not been resolved. A major reorganization in the State resulted in a change in personnel. The
revised corrective action date for Virginia is 9/30/95.
EXTERNAL GRANT AUDITS
External grant audits are independent reviews of the records nnd performance of individual assistance recipients. These
audits generally involve findings which require a repayment of Federal funds received for final action. Final action can take
longer than a year as the grantee may appeal, refuse to repay, or be placed on a repayment plan that spans several years.
Report 0200001 Dated 3/29/91
SULTANA COMM SER DIST, CA
Disallowed: $39,013
The final determination letter indicated that the grantee owed a balance of $31,391. The grantee requested a waiver
of debt collection due to financial hardship. The request has been forwarded through the Finance Office to the Office
of General Counsel for review.
Report 0300008 - Dated 6/25/90 MONTGOMERY CO SD 2, KY Disallowed: $91,235
The Finance Office is working with the attorneys for the County to put the County on a payment schedule.
Report 0300063 - Dated 2/19/91 VENTURA REG SAN DIST, CA Disallowed: $788,161
EPA's Office of Water agrees with the majority of the Region's two-thirds rule interpretation. The draft management
decision is under review by the State to determine whether OWs cost estimates are accurate for the blocks to be
removed from funding. This issue will be resolved and the final determination sent to the grantee 6/30/95.
Report 1200001 - Dated 4/18/91 COAL RIVER PSD, WV Disallowed: $80,282
The regional office anticipates taking final action when the account receivable of $37,864 is paid.
Report 1300079 - Dated 2/3/92 NEW IBERIA, LA Disallowed: $42,722
An analysis of financial statements determined that the City could pay the amount owed the government. The City
was notified. The City requested a copy of the analysis and it was provided on 10/19/94. A letter was sent to the City
on 3/2/95 asking for comment within 2 weeks. The City did not respond. The Office of General Counsel is drafting
a letter to the Department of Justice to take action.
Report 1300086 - Dated 2/25/94
HILLSBOROUGH CTY, FL
A grant amendment has been issued decreasing the amount of the grant by $5,148,078 to the final eligible cost of
$5,245,731. Close out procedures are in process and should be completed during the month of May 1995.
Page 13
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 1400057 - Dated 2/5/92
LAKEWOOD, OH
Disallowed: $119,975
Region referred the collection of this account receivable to the Headquarter's Claims Officer on 5/13/93 for action.
Presently, the full amount of the account receivable has not been collected from the grantee. Grantee is in the process
of making installment payments. The region anticipates taking final action immediately after it collects the full amount
of the account receivable.
Report 2200004 - Dated 4/30/92 GREEN VALLEY PSD, WV Disallowed: $228,465
The regional office anticipates taking final action when the account receivable of $48,092 is paid.
Report 2200019 - Dated 11/10/92 CARYVILLE, TN Disallowed: $321,556
The grantee requested a deviation from grant regulations. The request was denied. The account receivable is being
forwarded to the Claims Office as uncollectible.
Report 2200036 - Dated 8/27/93
CITY OF EL MIRAGE, AZ
Disallowed: $43,188
On 5/5/94, the Region requested that the Finance Office approve the write-off of $44,323 due to financial hardship.
On 7/20/94, the Finance Office forwarded the request to the Office of General Counsel for review and possible waiver
of the debt.
Report 2200040 - Dated 11/8/93
CITY OF SUITER CREEK, CA
Disallowed: $140,804
The appeal by the grantee was denied. The grantee indicated that it did not have the money to pay EPA the balance
due. On 3/16/95, the grantee submitted a request to waive the debt due to financial hardship. The request for waiver
of debt collection will be forwarded to the Finance Office and the Office of General Counsel for review by 5/30/95.
Report 2300051 - Dated 2/9/93 RED JACKET PUBLIC SERVICE, W Disallowed: $241,555
The regional office anticipates taking final action when the account receivable of $105,982 is paid.
Report 2300086 - Dated 8/19/93 NACO SAN DIST., AZ Disallowed: $38,447
On 5/5/94, the Region provided to the Finance Office a grantee request to write-off $39,456 due to financial hardship.
On 7/20/94, the Finance Office forwarded the request to the Office of General Counsel for review.
Report 2400024 - Dated 9/20/93
NPDES PERMIT, AK
The Region was awaiting a followup audit by the OIG to ensure corrective action was adequate. The OIG notified
the Region that a followup audit will not occur, and the Region closed final action on the audit on 4/1/95.
Report 3300003 - Dated 5/11/93
CITY OF HOPEWELL, VA
Disallowed: $137,388
The Regional Administrator issued a dispute decision on 2/6/95. The regional office anticipates taking final action
when the account receivable of $137,381 is paid.
Page 14
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 5190159 - Dated 9/29/93
EUCLID, OH
Disallowed: $420
Resolution of questioned costs depends upon grantee's satisfactory completion of actions imposed by a consent decree.
The consent decree allows the grantee until 1996 to complete corrective actions.
Report 9100165 - Dated 10/30/89
ESPANOLA, NM
Disallowed: $61,772
On 10/22/94, Headquarters requested additional information from the City. EPA received the information on 12/29/94.
Headquarters OIG is currently analyzing the information. The Region is awaiting a determination by the Office of
General Counsel for a hardship case based on the OIG's analysis. City debt is $50,965 plus interest.
SINGLE AUDITS
Single audits are external audits which examine ihe financial operations of a State or local government to ensure a grantee
complies with generally accepted accounting and financial procedures. Single audits are issued on a yearly or bi-yearfy basis
on all federally funded grantees. Generally, the findings are non-monetary compliance actions that must be corrected. The
non-monetary corrective actions may take longer than one year to implement if the findings are complex or if the grantee
does not have the resources to take corrective action.
Report 2500704 - Dated 3/29/93
EQB, PR
Puerto Rico's Environmental Quality Board has improved its financial management/grant accounting procedures
according to the CPA firm currently performing the EQB Single Audit. The next Single Audit report is targeted for
5/31/95. Currently, Region II is withholding certain Superfund Cooperative Agreement payments pending EQB's
submission of detailed supporting documentation. Estimated closure is November 1995.
CONTRACTSISUPERFUND GRANT AUDITS
Preaward contract audits evaluate whether the prospective cost or pricing data submitted were current, accurate and
complete. Final action occurs when the contract is awarded. Interim and final cost audits review the allowability of costs
claimed under the contract and determine compliance with terms and conditions of the award. Final action occurs when
repayments to EPA are received or corrective actions are implemented. Indirect cost audits evaluate whether an assistance
recipient's or contractor's prospective or incurred indirect costs rate properly allocates allowable costs. Final action occurs
when repayments to EPA are received or corrective actions are implemented.
Report 0300095 - Dated 4/1/93
OREGON DEQ, OR
Disallowed: $25,280
The Region is awaiting written approval of grantee's system change from OIG to ensure adequacy of corrective action
regarding the leave allocation issue. All other necessary corrective action has been taken and funds have been fully
collected.
Report 1100146 - Dated 9/30/93 WASHINGTON DEPT OF ECOLOGY, WA Disallowed Costs: $220
All funds have been collected. One corrective action remains to be completed. Final action is expected shortly.
Page 15
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 1100156 - Dated 9/30/93
ALASKA DEPT OF ENV CONSER, AK
Disallowed: $33,143
The Region is working with the OIG and grantee to ensure adequate corrective action on procurement and leave
allocation issues. Disallowed costs are to be offset against the core program grant. Awaiting final action for closeout
of old agreement. Final action is expected by June 1, 1995.
Report 1300047 - Dated 3/31/93
WASHINGTON DEPT OF ECOLOGY, WA Disallowed: $1,170
All funds have been collected. Corrective action regarding allocation of holiday and leave costs that is agreeable to
the OIG has not been completed. All other corrective action is complete.
Report 1300066 - Dated 9/30/93
WASHINGTON DEPT OF ECOLOGY, WA Disallowed: $16,210
The Region is working with the grantee to ensure adequate corrective action on two remaining issues: (1) cost price
analysis and appropriate award, and (2) procurement. All other corrective action is complete and disallowed costs have
been collected.
Report 1300101 - Dated 9/28/92
GUARDIAN ENVIRONMENTAL SVC, DE
Many issues raised in the audit report must await final settlement of all delivery orders. These delivery orders are
under various contracts associated with the audit. Settlement of the delivery orders is in process. Final action is
anticipated by 9/30/95. Eight delivery orders have been negotiated; four remaining ones covered by the audit are in
process.
Report 2100299 - Dated 9/30/93
WASH DOE MULTI-SITE, WA
The Region is awaiting review of corrective action by grantee to resolve one remaining issue. No costs were disallowed
and all other issues have been adequately corrected.
Report 2100612 - Dated 9/30/93
IDAHO DHW S/F COOP AGREEM-, ID
Disallowed: $275,038
The Region is awaiting a review of the adequacy of corrective action. Completion is expected before the end of June
1995.
Report 2300054 - Dated 3/29/93
EQB-FOLLOWUP REVIEW SUPERFUND, PR
While some progress has been made, Region II continues to provide technical assistance and monitoring of the Puerto
Rico Environmental Quality Board's corrective actions. In addition, certain Superfund Cooperative Agreement
payments are now being withheld pending EQB's submission of detailed grant expenditure documentation. Estimated
closure is November 1995.
Report 3100012 - Dated 3/21/94
WESTINGHOUSE HAZTECH, GA
The audit is incomplete as it did not include an assist audit for the corporate allocation. The Defense Contracting
Audit Agency audit of the corporate allocation is expected by June 1995. Final action is expected by September 30,
1995.
Page 16
EPA's Semiannual Report to Congress - Spring 1995
-------
Report 3100085 - Dated 9/15/93
UNISYS, VA
The unsupported costs are resolved between Defense Contracting Audit Agency and the contractor and will be
reflected in the supplemental report indicating the approval and acceptance of the keypunch costs by DCAA. Final
action will occur when the supplemental report is received. The supplemental report is expected to be issued by
5/31/95.
Report 3100361 - Dated 1/7/94
ARIZONA DEPT OF WTR RES., AZ
As of 4/30/95, the Region is awaiting the additional support documentation from the grantee. Once received, it will
be reviewed for completion of corrective actions related to financial management audit findings.
Report 3300008 - Dated 6/30/93
SF COOPERATIVE AGREEMENTS, MD
Due to the number of recommendations contained in the report, additional time is required to adequately address the
corrective action milestones. Target completion date is 10/30/95.
Report 3300032 - Dated 8/13/93
MISSOURI DNR, MO
Disallowed: $198,424
The recipient has submitted a matrix of costs to be redistributed to Federal EPA grants. Information is being reviewed
by Grants Administration and Financial Management to determine the final amount to be refunded by the assistance
recipient.
Report 3400017 - Dated 4/27/93
OSDBU-NAMC, DC
The draft competitive award package developed by the Quality Action Team in January 1995 proved unacceptable to
the Office Director. A second draft package is due by June 30, 1995.
Report 4000836 - Dated 2/5/90
ENV MGT CORP (UTICA), MI
Disallowed: $110,106
The U.S. Attorney's Office of Michigan has negotiated a repayment schedule with the contractor. The Agency has
no direct involvement in this process. EPA receives quarterly payments of $7500. The U.S. Attorney has collected
$135,000 of the $225,000 owed.
Report 4100015 - Dated 2/8/94
ENVmONMENTAL SCI & ENG, FL
The modification authorizing use of premium overtime not to exceed $13,020 on the contract was issued on April 18,
1994. This completes final action as of April 1, 1995.
TOTAL AUDIT REPORTS WITH A MANAGEMENT DECISION BUT NO FINAL ACTION AFTER ONE YEAR: 68
Page 17
EPA's Semiannual Report to Congress - Spring 1995
-------
-------
CO
O
O
Hip
Ło o a
sis
O
------- |