f:
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""Cover Photo: High Atop Red Rock Canyon
x by Steve Delaney ,.
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TABLE OF CONTENTS
Table of Contents i
,•''•' ( ' i .
, - _ . '* '
Overview of Audit Management Activities
1 ( JIUIJ-II----IJIJ-1 .. l_P _ f
Accomplishments and Initiatives , , 1. 1
* . ' ' •
Overview of Audit Activity : 2
it '( , • •
1 ' - ' ^ -' .. '
Statistical Tables
v - ' . ; .
Table 1: Final Action on Audit Reports With
Disallowed Costs 7
Table 2: Final Action on Audit Reports
" With Recommendations That Funds
•Be Put To Better Use „ 8
Table 3: Audit Reports Under Appeal or . -
Where a Legislative Solution is
Sought . 1 9
"» ^ «..'•-.
Table 4: Audit Reports With a Management
Decision But No Final Action After- ,
One Year . '. 10
EPA's Semiannual Report to Congress - Fall 1995
Page i
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OVERVIEW OF AUDIT MANAGEMENT ACTIVITIES
i - • ' . -
This Fall 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 — April 1, 1995 through September 30, 1995.
Complimenting this report is EPA's Office of Inspector General Semiannual Report to
the Congress: April 1. 1995 through September 30. 1995.^ The OIG report highlights
audit activity and describes its efforts to promote EPA program effectiveness.
.' ( • \
ACCOMPLISHMENTS AND INITIATIVES
" ' l " '
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 to enhance data accuracy and user
friendliness. It now operates within a network of local area "networks. .EPA has
broadened report capabilities, streamlined file transfers,, and built in automated quality
control edits to improve data accuracy. To simplify data entry and enhance consistency
of information, the system receives specific,data monthly from the Office of Inspector,
General tracking system database.
This system of audit management and tracking has allowed EPA to establish
improved accountability and responsibility in carrying out its mission effectively and
efficiently by allowing focused attention on the implementation of audit followup. ,
i
; In September 1995, the Agency issued another release of the operating software
to make minor adjustments and improve operating efficiency. We anticipate that with
.this release, we have completed the multi-year effort to improve the system to bring it to
its full capability. . . ' • • .
EPA CONTINUES TO UPGRADE ITS AUDIT TRACKING SYSTEM
1990
1991
1992
1994
EPA's Semiannual Report to Congress - Fall 1995
Page 1
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The Office of the Inspector General and EPA management are studying the
possibility of developing a consolidated OIG/management audit tracking system. This
would allow for more efficient and complete tracking of audit activity — from the initial
request for an audit to an office's completion of final corrective action. A joint system
would provide more information to both OIG and EPA offices on audit activity. Arid it
would streamline semiannual Congressional reporting by avoiding data overlap between
the two current systems. If this idea proves feasible and resources are available to
proceed, we anticipate forming an Agency-wide group to address how the joint system
should operate.
Additionally, the leaders of EPA's audit management quality action team are
working to rewrite the EPA Order on audit management. This requires the
development of an order that covers the multidisciplinary approaches related to
resolution, followup, tracking and reporting on the various types of contract audits,
assistance audits and internal audits. ,
OVERVIEW OF AUDIT ACTIVITY
During this reporting period, EPA management monitored active resolution and
followup action on 857 audits. As illustrated below, these 857 fall into seven different
categories.
EPA MONITORS A LARGE DATABASE OF AUDITS
' 46 Grant
222Pceavard
245 Construction Grant
12 Other
93 Internal'
S9 angle ""SS^, i^'180 Contract
857 Active Audits tracked for Followup Actions During Fall 1995
> Final Action Taken on Audit Reports ' '
In the reporting period, EPA had a total of 525 management decisions pending
final action. This is an increase of 74 from the total of 451 management decisions
pending final actions noted in the Spring 1995 report. Since the beginning of EPA's
Congressional semiannual reporting on its audit activity, the number of audit reports
pending final action during each semiannual period has averaged 549 and has ranged
from a high of 791 (Spring 1990) to a low of 451 (Spring 1995). ; .
EPA's Semiannual Report to Congress - Fall 1995
Page 2
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During the six-month period, April 1, 1995 through September 30, 1995, EPA
completed final action on 226 audits — an increase of 93 over the previous reporting
period.. Of these, 121 were financial assistance audits with $38,323,234 in disallowed
costs recovered, written off or reinstated on appeal, 85 were preaward contract audits
resulting in $3,569,163 of unobligated funds reported as put to better use, and 20 were
performance audits,with internal EPA corrective actions completed. Detailed
information on this audit activity is presented below and in Tables 1 and 2.
Financial Assistance Audits - For financial assistance audits, final action occurs
when the Agency recovers from the grantee — or writes off as an uncollectible claim --
costs disallowed in the Agency's management decision on the audit, or reinstates these
costs as allowable through an appeal of the grantee. For the 121 financial assistance
audit reports where EPA took final action this period, the Office of the inspector
General had initially questioned a total of $131,751,560. After careful review, the
Agency and OIG agreed in disallowing $38,323,234 of these questioned costs.
DIG QUESTIONED COSTS VS. AGENCY DISALLOWED COSTS
(in millions)
Spring 93 Fall 93 ,
ac QtasOonta Costs
Spring 94 Fall 94
• Reporting Period
Spring 95
Fall 95
There are several reasons why the costs questioned in an .audit may be
significantly higher than the costs eventually disallowed by EPA. In many cases, the
audited grantees or contractors provide additional cost documentation to the Agency
after the OIG has completed its audit. This documentation was not available to the
auditors and 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.. .
In either case, prior to issuing the determination letter to the grantee, Agency
officials are required to reach agreement with the OIG on the amount of questioned
costs in the audit that management will disallow. ' •
EPA's Semiannual Report to Congress - Fall 1995
Page 3
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The grantee then has the opportunity under Federal regulations to formally
appeal this EPA determination. On the basis of the information provided in the appeal,
the Agency may reinstate to the grantee all or portions of the costs disallowed in the
determination letter.
The Agency then seeks to recover the final amount 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). . . . .
From April 1, 1995 through September 30, 1995, the Agency took final action on
121 financial assistance audits. Of the $38,323,234 that EPA disallowed in these audits,
the Agency recovered $36,956,069, reinstated $1,215,829 on appeal, and wrote off
$151,336 as uncollectible.
\ . • " . '
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 or
cancels the .solicitation. The Agency completed final action on 85 preaward contract
audits in this reporting period. Of these, 9 audits resulted in $3,569,163 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
to remedy weaknesses identified'in the audit. Many of these audits involve complex
issues and require extensive, long-term effort by the responsible office to remedy
deficiencies cited by the OIG. In some cases, EPA's corrective action plans are based
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 20 internal
performance audits in this reporting period.
* No Final Action on Audit Reports After One Year
As of September 30, 1995, there were 79 audits where management's final
corrective action had not occurred within one year after the management decision. .This
is an increase of 11 over the 68 reported in the Spring of 1995. Of these 68, final action
has been completed oh 16 audits, and 27 additional audits met the reporting criteria.
EPA's Semiannual Report to Congress - Fall 1995
Page. 4
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. p
Of the 79 audits now awaiting final action after one year, 28 are projected for
closure by March 30, 1996, and an additional 19 will be closed upon receipt of a
monetary reimbursement from the grantee or contractor. ' ' •
NO FINAL ACTION ON AUDrT REPORTS AFTER ONE YEAR
8(
60
40
20
79
59
60
Spring 92 Fall 92
Spring 93 Fall 93 . Spring 94 Fall 94
Reporting Period
Spring 95 Fall 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. They amount to 44% of the total. The explanations for each of .these 79
audits are listed in detail in Table 4 of this report;
TYPES OF AUDITS WITH NO FINAL ACTION AFTER ONE YEAR • • "
3 Other
35 Internal
11 Grant
2Sngle
18 Construction Grant
Reporting Period: Fall 1995
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 17 external financial audits reported in the previous semiannual report as
having no final action after one year, 4 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 the need for long-term corrective action plans. As stated above, EPA's
EPA's Semiannual Report to Congress - Fall 1995
PageS
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corrective action plans can be based on the need for states and other entities to
implement their own corrective actions.
1 In this report, final corrective action on 37 internal performance audits remains
incomplete after one year. This is an increase over the 33 reported in the previous
semiannual report. Of these 33, final action on 8 is now complete. Of the 37 noted in
this report as awaiting final action after one year, 14 of these are projected for closure
by March 30^ 1996. . .
> Appeals of Management Decisions
Management decisions for financial assistance audits that seek monetary
reimbursement from grantees are often appealed-by the grantee. This is allowed by
EPA regulation. These appeals require EPA to suspend taking action to collect the
account receivable, until the Agency issues a decision .on the appeal.
As of September 30, 1995, there were 134 formal administrative appeals of
management decisions pending. The total disallowed costs in these 134 appealed
management decisions amount to $139,240,846; however, the specific issues and costs
under appeal are .more limited. These 134 represent a decrease of 6 from the total of
140 management decisions reported in appeal status as of March 31,. 1995.
MANAGEMENT DECISIONS UNDER APPEAL
Spring 92 Fall 92
Fall 94
Spring 95 Fall 95
Spring 93 Fall 93 Spring 94
. Reporting Period
Of the .140 appeals that were pending as of March 31, 1995, 17 have been decided
and $1,215,829 in previously disallowed costs which were reinstated to the grantee.
Additionally, since April 1, 1995, grantees filed 11 new appeals which are awaiting
decision. .
EPA has begun a detailed review of audit tracking system records to measure the
accuracy of management decisions reported in appeal status. Results of this review will
allow the Agency to evaluate the adequacy of automated checks in the tracking system,
assess the current procedures to assure data quality assurance, and possibly reduce the
number of management decisions reported in appeal status in the future.
J
EPA's Semiannual Report to Congress - Fall 1995
Page 6
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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 ho 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 '
(iii) Reinstated Through Grantee Appeals
G., Audit reports needing final action at the end of the period
(subtract F from E). ;
Number of
Audits
265-
i
• ' -12
253
1 ^j
1082
50
13
361
121
240
Disallowed
Costs
$174,963,262,
51,184
' 175,014,446
82,414,184
' 82,414,184
0
. 257,428,630
38,323,234
30,010,363
- 2,638,379
0
4,307,327
151,336
1,215,829
'.
$219,105,396
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. These are available upon request..
2 This includes 45 management decisions on audits for which no costs were questioned. •
. ^EPA's Semiannual Report to Congress - Fall ,1995
Page 7 '
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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. „ ' 53
B. Adjustments to the balance of the previous report.1 12 '. '
C. Audit reports with management decisions on which the final .65
action had not been taken at the beginning- of the period.
D. Audit reports on which management decisions were made. 992
during the period. - . -
(i) Management decisions with funds to be put
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TABLE 3: AUDIT REPORTS UNDER APPEAL OR
WHERE A LEGISLATIVE SOLUTION IS SOUGHT
Under Administrative Appeal 134
Under Judicial Appeal 0
Legislative Solution Being Sought . 0
134
EPA's Semiannual Report to Congress - Fall 1995
Page 9 - '•'•'. . • - .
• • •• ••' • • • ; •; .• . •'••'-• • . •. .
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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.
OIL AND GAS WASTES
Report 0400018
Management Decision Date: 11/15/90
Twelve of-13 commitments have been met. The last follow-up commitment is promulgation of the coastal oil and gas
effluent guideline. The proposal was signed by the Administrator in January 1995. Final action is scheduled for FY.
1996. . ' • . . •
PESTICIDES INERTS
Report 1100378
Management Decision Date: 04/09/93
Confidential business information issues were resolved 3/28/95. The program office expects to complete all but one
remaining action by 12/31/96. After that, the one remaining corrective action - to issue data call-ins for all List 3
inerts (500 chemicals) ~ is expected to be completed 12/99 due to the limited availability of resources.
DELAWARE BAY & INLAND BAYS . " , ,
Report 1100422 . Management Decision Date: 03/27/92
One corrective action remains on hold as the Delaware Department of Natural Resources and Environmental
Conservation is in the process of updating their National Pollution Discharge Elimination System program regulations.
Final action is anticipated by December 1995. , . V
CWA SECTION 404 CONSOLDDATED, GA. .
Report 1100434 Management Decision Date: 03/05/93 . .
The final corrective action is on hold pending Congressional and Executive resolution regarding the Federal role in
protecting wetlands.
EPA MGT OF CSC CONTRACT
Report 2100295
Management Decision Date: 08/02/93
EPA has decided to provide lease vs. purchase information in the "Cookbook" of'the Agency Local Area Network
Information Services. Also, EPA's new methodology for accounting for program management costs will require
contractors to submit hours and dollars for all labor categories. Expected completion date is June of 1996.
Page 10
EPA's Semiannual Report to Congress - Fall 1995
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EPA SYS. SOFTWARE INTEGRITY
Report 2100591
Management Decision Date: 04/15/93
In a memo dated September 6, 1995, the Office of the Inspector General requested additional information to close
this audit. All information requested by the OIG was provided by the Office oMnformation Resources Management.
PCffi TASK 1
Report 2100641
Management Decision Date: 01/27/93
The milestone, "Publish Formal Integrated IRM ,Plan," was approved by the Executive Steering Committee for.
Information Resource'Management on 3/15/95. The final two milestones, including validating the success of the
corrective actions, are scheduled for completion by 12/30/95. -
SF FY 91 SF TRUST FUND
Report 2100660 .
Management Decision Date: 03/25/93
Due to staff shortages and other priorities of the available staff, completion of the final recommendations in this audit
is delayed until 07/31/96. . ,
GLP AUDIT, DC
Report 2400032
Management Decision Date: 06/25/92
A decision has been made to develop a lab accreditation system under the auspices of National Environmental
Laboratory Accreditation Council Next steps in.FY 1996 include scheduling a NELAC mid-year meeting and a public
(meeting to solicit industry views. ' ,
WASTE TECH IND (C/I), OH
Report 2400056
Management Decision Date: 10/15/92
Delay was necessary by a Headquarter's decision to enhance the credibility of the risk assessment by subjecting it to
review by outside expert scientists. All corrective actions are expected to be completed by 12/31/95.
PCS FOLLOW-UP, DC
Report 2400065
Management Decision Date: 01/11/93
Due to the reorganization of EPA's enforcement program, the re-write of the inspection guidance manual is now
scheduled for completion in January 1996. '•'•.., .
PESTICIDES IMPORTS-FOLLOW-UPTX
Report 3100097 Management Decision Date: 05/17/93
The U. S. Customs Service is'collecting imports manifests and sending to them EPA on a voluntary basis while awaiting
closure on formal agreement language. EPA and Customs Service are finalizing the Memorandum of Understanding
.which includes language for Customs to collect all hazardous wastes manifests. EPA-has developed a hazardous waste
compliance monitoring training course for Customs inspectors and has provided training for most U.S. - Mexico ports.
Final action is expected the early part of. FY 1996.
Page 11
EPA's Semiannual Report to Congress - Fall 1995
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SF INDIRECT COST RATES 87-88
Report 3100114
Management Decision Date: 07/06/93
Both the FY 1991 and FY 1992 indirect cost rates'were finalized 2/95 and 3/95. The Financial Management Division
will finalize the indirect cost rates when the Agency establishes guidelines for rules methodology. Final action cannot
be determined at this time. , ' . ' ..
SUPERFUND CAPPING REPORT, NY
Report 3100152 Management Decision Date: 06/28/93
The need for a National Enforcement Response Policy is being evaluated based on>a review of 10 regional enforcement
response policies.' The Independent Government Cost Estimate model has been developed and piloted in Region 6.
The model will be made available to other regions based on resolution of a contracting issue with the Office of
Administration and Resources Management. The Cost Recovery Procedures Manual has been issued. Final corrective
action is expected in early FY 1996. . .
ATHENS ERL-ORD, GA
Report 3100156
Management Decision Date: 04/01/93
All but one corrective action have been completed. Final action is anticipated by January 15,1996.
AUTOMATED CLEARING HOUSE
Report 3100175
Management Decision Date: 09/30/93
There are two open recommendations which are tentatively targeted for completion by 07/15/96. Recommendations
have been incorporated into Resource Management Division's Chapter but are currently in final review before issuance.
Final action is anticipated by October 1996. . ' •
; * .
ENV. RES. LAB NARRAGANSETT, RI ' • /
Report 3100236 Management Decision Date: 06/14/93 ^
' ' ' ' ' f ' '
\ The program office has completed 67 of the 68 commitments. Final action is anticipated by January 15,1996.
FINANCIAL STATEMENT AUDITS '
Report 3100264
Management Decision Date: 11/05/93
Additional programming and coding are 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 recommendations until 12/30/95. .
)
PESTICIDE FINANCIAL STATEMENT
Report 3100265 Management Decision Date: 11/12/93
/ • •
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 final date for completion.-
Page 12 .
EPA's Semiannual Report to Congress - Fall 1995
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ZZ ACCOUNTS
Report 3100266 Management Decision Date: 11/01/93
i
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 roll over plan for the Superfund.Cost
Recovery Image Processing System. This has delayed the regional training of Superfund program staff on both of these,
systems. . ' .. \ . . • ' „ . • >
RECONCILING CASH
Report 3100391 Management Decision Date: 12/23/93
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.
. Final action is anticipated by December 1995.
REVIEW OF ADEC SOW PROGRAM, AK ' , N
. Report 3300012 Management Decision Date: 7/25/94
The project officer has been periodically following up to ensure that the corrective action plan is on schedule. Final
action is anticipated by May 31, 1996. „ • \ .
PESTICIDES BANNED F/U !
Report 3400030 * Management Decision Date: 03/26/93 , '•,'..'
c1 '
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 fbal rule is anticipated
late in 1996. ' ;
" •'. - " - . ' , ."" ' - -• . -
OCEM' , ....••'•' .• , . • ; • ' -
Report 3400094 Management Decision Date: 04/05/94
/ . ' '
Although final corrective'action occurred on September 30, 1994, the program office did not close the audit.
Therefore, this audit now reflects a final action date of October 1, 1995. . . -
PROCEDURES LISTING SF SITES . , . . .
Report 4100180 ' Management Decision Date: 06/20/94
As of September 30,1995, the corrective action plan is on hold pending the Superfund reauthorization. .Final action
cannot be determined at this time. . . •
-•',•- - • ' *
PESTICIDES THEME REPORT, . .
Report 4100205 • '" Management Decision Date: 03/11/94 , .
1 - '
The corrective actions are ongoing with small delays being experienced. The planned completion of all corrective
actions remains FY 1996. • < ' ''•*..
EPA's Semiannual Report to Congress - Fall 1995
1 Page 13
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FMflA CAPPING, OSWER, WATER
Report 4100224 Management Decision Date: 07/01/94 ,
The Office of Inspector General approved the revised correction plan. Final.action is anticipated in October 1996.
FY 93 PEST/OIL SPILL F/S AUDIT
Report 4100230 Management Decision Date: 07/12/94 - <
Performance measures on unliquidated obligations and performing physical inventories have to be created. The
expected completion date for the last corrective action on these performance measures is early, in FY 1996.
FY 93 FINANCIAL STATEMENT
Report 4100231 Management Decision Date: 07/11/94
v
Open audit recommendations consist of creating policy for the timely recommendation, and recording of accounts
receivable; account for Superfund state contracts, accounts receivable and marketable securities; ensuring project/site
codes are used for cost accounting purposes; and creating accounting policy for accrued liabilities for grant expenses.
Final action is anticipated by 03/31/96. , ' . . .
AWARD OF ICF CONTRACTS .
Report 4100233 Management Decision Date: 03/31/94
Only one corrective action remains open — "To establish a policy for the percentage of evaluation points that can be
awarded in the area of corporate experience." The policy has been drafted and the Office of Acquisition Management '
Competition Advocate is currently reviewing it. Final action is expected early in FY 1996. N
FMFIA CAPPING - WATER REPORT
Report 4100236 Management Decision Date: 08/02/94
Two offices have received training'and technical assistance in implementing the new management integrity process.
The Office of Water will be assessing needs in the remaining program offices on an ongoing basis to determine if
assistance is still necessary. This audit is closed as of 10/1/95. -
GULF BREEZE LAB AUDIT, FL ,
Report 4100237 Management Decision Date: 09/02/94
The program office conducted a management review on 12/94 - 1/95 and issued a report in May 1995. Corrective
actions are underway. Final action cannot be determined at this time.
" • . ^ '
REVIEW OF EPA'S USE OF FTTA
Report 4100470 Management Decision Date: 07/27/94
The revised delegations of authority and revised EPA Order on the Federal Technology Transfer Act (FTTA) have "
'gone through the Agency's Green Border Review process and are awaiting the signature of the Administrator. Once
they are signed, all audit issues will be completed and the audit can be closed. . .
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EPA's Semiannual Report to Congress - Fall 1995
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REVITAL ENF PILOTS
'Report 4400037
Management Decision Date: ,07/11/94
As of September 30,1995, the corrective action plan is on hold pending the Superfund reauthorization. Final action
cannot be determined at this time. , . .
SPECIAL ffiM REVIEW-CONG REQ .
Report 4400038 Management Decision Date: 09/30/94 N
EPA does not have the information resource management structure to link or share data Agency-wide. The Agency
agreed to take corrective actions to include designating a Chietlnformatipn Officer and a Data Administrator, creating
a strong Executive Steering Committee, establishing key data standards, upgrading its IRM training program, and
establishing performance measure criteria. Final action cannot be determined at this tune. •
SFAI SACM THRU 1/94, R5 , "'..'.,'
Report 4400080 Management Decision Date: 08/11/94
" *
All corrective actions are completed. Final action was taken on October 10, 1995.
I ' - • • '' • .
MITIGATION OF PENALTIES F/U . ,
Report 4400107. Management Decision Date: 09/15/94 .
The program office is researching the progress of the corrective action plan. A final action date cannot be determined
at this time. " . '.
' . '
CHESAPEAKE BAY III
Report 9100467 . . Management Decision Date: 12/14/89 ." '
All but one of the corrective actions have been completed. Final action is anticipated October 1, 1996. •
0
EXTERNAL GRANT AUDITS
' t * ' . *•
t ' .
External grant 'audits are independent reviews of the records and performance of individual assistance recipients. These
audits generally involve finding? 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.
SULTANA COMM SER DIST, CA
Report 0200001 Management Decision Date: 03/29/91
Disallowed: $39,013
On 9/12/95, the Office of General Counsel reported that the financial analysis from the Office of the Inspector General
had been received and indicates, that the grantee is able to repay its debt. Consequently, OGC is pursuing the
collection. / If .the collection is not completed by 12/31/95, OGC will refer collection to the Department of Justice.
MONTGOMERY CO SD 2,XKY . .
Report 0300008 Management Decision Date: 06/25/90 - Disallowed: $91,235
This account receivable was referred to the Claims Office at Headquarters on September 13, 1995.
Page 15
EPA's Semiannual Report to Congress - Fall 1995
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COAL RIVER PSD, WV
Report 1200001
Management Decision Date: 04/18/91
Disallowed: $80,282
An open account receivable in the amount of $37,864 is currently recorded in the Region. .The estimated date for final
resolution cannot be determined at this time. ' - - • ' .
•.
ELMHTJRST TOWNSHIP, PA
Report 1200022
Management Decision Date: 12/13/91
Disallowed: $97,531
An open account receivable in the amount of .$5,982 is currently recorded in the Region. The estimated date.for final.
action cannot be determined at this time. -
NEW IBERIA, LA
Report 1300079
Management Decision Date: 02/03/92
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 resubmitted its financial package to the Office of the Inspector
General for review. The Office of General Counsel is awaiting OIG's decision. OGC estimates completing final action
by 12/31/95. ' . .
LAKEWOOD, OH
Report 1400057
Management Decision Date: 02/05/92
Disallowed: $119,975
Region referred the collection of this account receivable to the Claims Office at Headquarters on 5/13/93 for action.
Presently, the full amount of the account receivable has'not been collected from the grantee. The grantee is in the
process of making installment payments. The Region anticipates taking final action immediately after the full amount
of the account receivable has been collected. The final payment is due 4/1/97 (per agreement), i
GREEN VALLEY PSD, WV
Report 2200004
Management Decision Date: 04/30/92
Disallowed: $228,465
An account receivable in the amount of $48,092 was forwarded to the EPA Claims Office (HQ) on 5/6/94. The
estimated date for final action cannot be determined at this time.
CARYV1LLE, TN
Report 2200019
Management Decision Date: 11/10/92
Disallowed: $321,556
This account receivable was referred to the Claims Office at Headquarters on April 14, 1995.
EL MIRAGE, CITY OF, AZ
Report 2200036 . '
Management Decision Date: 08/27/93
Disallowed: $43,188
On 9/12/95, the Office of General Counsel reported that the financial analysis from the Office of the Inspector General
had been received and indicates that the grantee is able to repay its debt. Consequently, OGC is pursuing the
collection. If the collection is not completed by 12/31/95, OGC will refer collection to the Department of Justice.
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EPA's Semiannual Report to Congress - Fall. 1995
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SUITER CREEK. CITY OF, CA
Report 220040 Management Decision Date: 11/08/93 Disallowed: $140,804
On 9/22/95, the Office of General Counsel forwarded requisite financial information to the Office of the Inspector
General for an analysis of the grantee's ability to pay. The OGC does not believe the analysis or possible collection
will be completed until June 30, 1996. •..'"•
RED JACKET PUBLIC SERVICE, WV
Report 2300051 Management Decision Date: 02/08/93 Disallowed: $241,555
An open account receivable in the amount of $105,982 is currently recorded in the Region.. The estimated date for
final action cannot be determined at this time.
HOPEWELL CITY OF, VA
Report 3300003 Management Decision Date: 05/11/93 , Disallowed: $137,388
An open account receivable in the amount of $137,381 is currently recorded in the Region. The estimated date for
final action cannot be determined at this time. '
NEWBERG, CITY OF, OR
Report 2300088 Management Decision Date: 07/27/94 '' Disallowed: $15,804
'Confirmation of final action completion is anticipated by March 31,1996.' -,--'• .
OSDBU-NAMC •.,,.-'
Report 3400017 Management Decision Date: 04/27/93
The Quality Action Team's final meeting took .place September -13, 1995. The final draft of the competitive award
package will be submitted early in FY 1996. . ."
LAKEPORT SD MIDDLETOWN, CA . .
Report 3400016 Management Decision Date: 09/19/94 " '
' • 's
The corrective action plan addressing a number of system deficiencies targets final action on 12/31/96. Certification
and resumption of operation is expected by. the targeted final action date. -
• - ' i -*' ,,-.••-.
KEANSBURG,NJ .
Report 4100093 . Management Decision Date: 09/21/94 Disallowed: $110,106
The grantee has not paid the Bill for Collection in the amount of $166,040. This bill has been referred by Region II
to Headquarters Office of General Counsel for collection proceedings. Final action cannot be determined at this time.
EUCLD3, OH . ' •' . .
Report 5190159 Management Decision Date: 09/29/93 Disallowed: $420
Resolution of questioned costs depends upon grantee's satisfactory completion of actions imposed by consent decree.
The consent decree allows the grantee until 1996 to complete corrective actions. •
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Page 17 - ; f
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BALTIMORE MAYOR & CTY COUN, MD
Report 9100143 Management Decision Date: 07/24/89
Disallowed: $20,734
An active account receivable in the amount of $1,096 is currently recorded in the Region. The estimated date for final
action cannot be determined at this tune. -
ESFANOLA, NM
Report 9100165
Management Decision Date: 10/30/89
Disallowed: $61,772
The Office of the Inspector General determined that the City' could pay the Bill for Collection of $50,965 plus interest.
The Office of General Counsel requested more information from the City. The City sent the information to the OIG
for hardship case review. OGC estimates completing final action by 12/31/95. ,
DISTRICT OF COLUMBIA, DC
Report 9100494 Management Decision Date: 01/12/90
Disallowed: $2,070,462
'An open account receivable in the amount.of $223,903 is currently recorded in the Region. The estimated date for
final action cannot be determined at this time. '
* . '.
. *
SINGLE AUDITS ,, ~
Single audits are external audits which examine the 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.
, VA CONSERVATION & HISTORIC, VA
Report 0500893 , Management Decision Date: 11/19/90
Disallowed: $4,656
An open account receivable in the amount of $4,656 is currently recorded in the Region. The estimated date for final
action cannot be determined at this time. . -
EQB, PR
Report 2500704
Management Decision Date: 03/29/93
The Puerto Rico Environmental Quality Board has improved its financial management/grant accounting procedures
per the CPA firm currently performing the EQB Single Audit. Currently, Region II is withholding certain Superfund
Cooperative Agreement payments pending EQB's submission of detailed supporting documentation. Final action is
anticipated early in FY1996. " " - , /
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EPA's Semiannual Report to Congress - Fall 1995
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CONTRACTSISVPERFVND 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 alienability 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. ' . "
WASHINGTON DEPT OF ECOLOGY, WA
Report 1100146 Management Decision Date: 09/30/93 ,' Disallowed: $220
i •
> ' • •, "
All funds have been collected. One corrective action remains to be completed. Final action is anticipated by May 30,'
1996. . " . ' • , " . . '•.••'.... '
i •
ALASKA DEPT OF ENV CONSER, AK
Report 1100156 , Management Decision Date: 09/30/93 . , Y Disallowed: $33,143
' ' ' ">
Awaiting final confirmation of adequate corrective action on procurement and leave allocation issues, and close out
of the old agreement. Disallowed costs have been offset against core program grant. Final action is anticipated by
June 1, 1996. '
it s ' , ' .
WASHINGTON DEPT OF ECOLOGY, WA
Report 1300047 ~ Management Decision Date: 03/31/93 Disallowed: $1,170
• ... ' \ . • '•
Funds have been fully collected. Confirmation of adequate corrective action on the final unresolved issue of leave
allocation is anticipated by June 1, 1996. , - ' >'
WASHINGTON DEPT OF ECOLOGY, WA " ;
Report 1300066 Management Decision Date: 09/30/93 . Disallowed: $16,210
Awaiting confirmation of adequate corrective action on two remaining issues: (1) cost price analysis and appropriate
award, and (2) procurement. All other corrective'actions are completed and disallowed costs have been collected.
Final action is anticipated by March 31,1996. ' •
../ '"''-•
GUARDIAN ENVIRONMENTAL SVC, DE
Report 1300101 . • , , \ Management Decision Date: 09/28/92
\ ' * ^ ""
Many issues raised in the audit report must await final settlement of all delivery orders. Settlement of the delivery
orders is in process. Final action is anticipated by 1/31/96. Eight delivery orders have been negotiated; four remaining
delivery orders are covered by the audit in process. ' .
WASH DOE MULTI-SITE, WA - -
Report 2100299 Management Decision Date: 09/30/93
/,
. •<• ' -
All but one corrective action has been completed. Final action is anticipated by June 1,1996.
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Page 19 . _ • " »
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GEO RESOURCE CONSULTANTS FN, CA
Report 2100524 Management Decision Date: 09/01/94
Negotiations between the contracting officer and the contractor's attorney are ongoing. Final action is expected early
in FY 1996.
EQB-FOLLOWUP REVIEW SUPERFUND, PR
Report 2300054 Management Decision Date: 03/29/93
While some progress has been made, Region II continues to provide technical assistance and monitor 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. Final action is
anticipated early in FY 1996.
WESTINGHOUSE HAZTECH, GA
Report 3100012 Management Decision Date: 03/21/94
The audit is incomplete as it did not include an assist audit for the corporate allocation. The Defense Contract Audit
Agency audit of the corporate allocation is expected by October 1995. Final action is expected by December 31,1995.
ARIZONA DEPT OF WTO RES., AZ
Report 3100361 Management Decision Date: 01/07/94
Additional supporting documentation was expected from the grantee on 4/30/95. Due to lack of a submittal, EPA sent
a follow-up letter, dated 9/12/95, deeming $352,229 as ineligible costs. Consequently, once these funds.are collected,
final action can be taken. .
SF COOPERATIVE AGREEMENTS, MD
Report 3300008 Management Decision Date: 06/30/93
All but one of the corrective actions have been completed. Final action is anticipated early in FY 19%.
MISSOURI DNR, MO
Report 3300032
Management Decision Date: 08/13/93
: Disallowed: $198,424
The grantee has provided accounts receivable information in response to the audit report. This information is being
reviewed by regional Grants Administration and Financial Management offices. The region expects to take final action
by 12/31/95. . . ,
ENV MGT CORP (UTICA), MI
Report 4000836 Management Decision Date: 02/05/94
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 $7,500. As of 08/31/95, the balance owed to
EPA is $150,832 which includes interest payable.
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EPA's Semiannual.Report to Congress - Fall 1995
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CDM FEDERAL PROGRAMS, MA .
Report 4100314 Management Decision Date: 09/09/94
Indirect rates have been negotiated. The Action Official was notified in September 1995 of questioned direct costs.
Questioned direct costs will be resolved by 11/30/95 for final action. ,
COMPUTER SCIENCE CORP, VA
Report 4100342 Management Decision Date: 09/12/94
Disallowed: $165,801
Contractor has agreed to the negotiated adjustment which will be made on the final voucher. Final audit has been
requested from the Defense Contract Audit Agency and is expected early in FY 1996.
COMPUTER SCIENCE CORP, VA
Report 4100384 Management Decision Date: 09/12/94
Disallowed: $170,840
The contractor has agreed to the negotiated adjustments which will be included on the final voucher. Final audit has
been requested from the Defense Contract Audit Agency and the audit report is expected early in FY 1996.
DYNCORP/PRI, VA
Report 4100526
Management Decision Date: 09/16/94
Disallowed: $38,189
The contractor provided additional data which resulted in a revised audit report. Revised questioned (overbilled) costs
are $19,765. The contracting officer requested and anticipates a refund from the contractor early in FY 1996 for final
action. . . ,
.' ' ' H
COMPUTER SCIENCE CORP, VA . .
Report 4400066 Management Decision Date: 09/13/94 , , .
The contractor has agreed to the negotiated adjustments which will be made on the final voucher. Final audit has been
requested from the Defense Contract Audit Agency and the report is expected early in FY 1996.
COMPUTER SCIENCE CORP, VA
Report 4400068 , - Management Decision Date: 09/12/94
Disallowed: $184,833
The contractor has agreed to the negotiated adjustments which will be made on the final voucher. Final audit has been
requested from the Defense Contract Audit Agency and the report is expected early in FY 1996.
TOTAL AUDIT REPORTS WITH A MANAGEMENT DECISION BUT NO FINAL ACTION AFTER ONE YEAR 79 .
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EPA's Semiannual Report to Congress - Fall 1995
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