v o' . UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
^/°6^
WASHINGTON, D.C. 20460
OFFICE OF
THE INSPECTOR GENERAL
MEMORANDUM
SUBJECT:
FROM:
TO:
Audit Report No. 05BH7-11-0044-71846
Audit of Superfund Interagency Agreements
with the Department of Energy
Ernest E. Bradley III,
Assistant Inspector General for Audit (A-109)
J. Winston Porter
Assistant Administrator for Solid Uaste
and Emergency Response (WH-562A)
On August 19, 1986, we requested the Inspector General, Department of
Energy (DOE) to perform an audit of interagency agreements entered into
between EPA and DOE. On March 9, 1987, we provided you with DOE's report on
six interagency agreements. This memorandum transmits DOE's report on
the remainder of the agreements we requested them to audit. Except for a
minor overcharge involving $3,852, the costs claimed under the interagency
agreements were considered to be allowable.
In accordance with EPA Directive 2750, you are the designated Agency
"Action Official" for this report. As such, you are required to submit a
final determination within 150 days from the date of this memorandum.
Should your staff have any questions, please have them contact
Kenneth D. Hockman, Divisional Inspector General for Audit on 382-4930.
Attachments
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DISTRIBUTION
Assistant Administrator for Solid Waste
and Emergency Response (WH-562A)
Associate Enforcement Counsel
for Hazardous Waste Enforcement (LE-134S)
Director, Financial Management Division (PM-226)
Chief, Superfund Accounting Branch (PM-226)
Agency Followup Official
Attn: Resource Management Staff (PM-225)
Director, Grants Administration Division (PM-216)
Chief, Grants Information and Analysis Branch (PM-216)
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. , REPORT HO,
WR-CC-87-30
U.S. Department of
Office of Inspector General
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
Ilelease Date:
May 7, 1987
AUDIT OF COSTS CLAIMED
EPA SUPERFUND INTERAGENCY AGREEMENTS
DW89930549-01 AND DW89930965-01
FISCAL YEARS 1984 THROUGH 1986
UNC TECHNICAL SERVICES, SUCCESSOR CONTRACTOR TO
BENDIX FIELD ENGINEERING CORPORATION
GRAND JUNCTION OPERATIONS
GRAND JUNCTION, COLORADO
PREPARED BY: LEONARD G. BIRNBAUM AND COMPANY
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REPORT NO: wR_cc-87-30
U. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
Audit of Costs Claimed
\
EPA Superfund Interagency Agreements
DW89930549-01 and DW89930965-01
Fiscal Years 1984 Through 1986
UNC Technical Services, Successor Contractor to
Bendix Field Engineering Corporation
Grand Junction Operations
Grand Junction, Colorado
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REPORT NO: WR-CC-87-30
AUDIT OF COSTS CLAIMED
EPA SUPERFUND INTERAGENCY AGREEMENTS
DW89930549-01 AND DW89930965-01
FISCAL YEARS 1984 THROUGH 1986
UNC TECHNICAL SERVICES, SUCCESSOR CONTRACTOR TO
BENDIX FIELD ENGINEERING CORPORATION
GRAND JUNCTION OPERATIONS
GRAND JUNCTION, COLORADO
TABLE OF CONTENTS
Purpose and Scope 1
Audit Results
Summary of Contractor's Costs Claimed and Results of Audit
DW89930549-01 - Exhibit A 3
Summary of Contractor's Costs Claimed and Results of Audit
DW89930965-01 - Exhibit B 4
-------
U. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
AUDIT OF CLAIMED COSTS
EPA SUPERFUND INTERAGENCY AGREEMENTS
DW89930549-01 AND DW89930965-01
UNC TECHNICAL SERVICES, SUCCESSOR CONTRACTOR TO
BENDIX FIELD ENGINEERING CORPORATION
GRAND JUNCTION OPERATIONS
GRAND JUNCTION, COLORADO
REPORT NO: WR-CC-87-30 May 7, 1987
PURPOSE AND SCOPE
In response to a request dated August 19, 1986, from the
Environmental Protection Agency, Washington D. C., we have
completed an audit of costs claimed under interagency agreements
DW89930549-01 and DW89930965-01 performed by Bendix Field
Engineering Corporation, Grand Junction Operations, at the
Department of Energy (DOE), Grand Junction Project Office, Grand
Junction, Colorado. Interagency agreement DW89930549-01 required
DOE to reduce offsite contamination in Monticello, Utah related
to the H. S. -Randall residence, and Montgomery Ward Catalogue
Sales Store (Harold Young property). The agreement initially
authorized $144,000 for the project and amendment 03 increased
this to $329,000. Interagency agreement DW89930965-01 required
DOE to perform reviews of eleven remedial action feasibility
reports for the Denver project. The agreement authorized $44,400
for technical review and $10,000 for technical consultants on
field data. Beginning October 1, 1986, UNC Technical Services,
Inc., became the operator of the Grand Junction Project Office.
All Bendix Field Engineering Corporation records, for the
interagency agreements, were retained by UNC Technical Services,
Inc. The purpose of the audit was to determine the allowability
of costs claimed during fiscal years 1984 through 1986.
Allowable costs were costs incurred which were reasonable,
allocable, and according to the terms of the agreement,
applicable cost principles and regulations, and generally
accepted accounting principles and practices appropriate to the
particular circumstances.
The scope of the audit was limited to test procedures for
validating the contractor's costs claimed by tracing the costs to
books of original entry and supporting records. The audit
-------
included tests of specific transactions and did not include an
evaluation of the total costs and internal control systems, or
the technical aspects of the participant's performance.
As defined in the scope, the audit was completed according
to applicable sections of the generally accepted government
auditing standards and included such tests of the contractor's
data and records and such other auditing procedures as were
considered necessary. Federal Acquisition Regulations Subpart
31.2, cost principles for commercial organizations, and the terms
and conditions of the agreements were used as criteria in the
evaluation of costs claimed.
This report may not be released to anyone outside of
DOE without approval of Headquarters, Office of Audits, except to
an agency involved in negotiating or administering the contract.
RESULTS OF AUDIT
Based on the audit, we considered the claimed costs of
$326,235.22 to be allowable under Interagency Agreement
DW89930549-01, and $26,634.17 was considered allowable under
Interagency Agreement DW89930965-01. A summary of costs is
contained in Exhibits A and B, respectively.
The results of audit were discussed on February 25, 1987,
with Mr. John Bombino, Vice President of Finance, UNC Technical
Services, Inc., Mr. Robert E. Levy, Contracting Officer, Grand
Junction Project Office, and Mr. H. Brent Clark, Director,
Contracts Management Division, DOE, Idaho Falls Idaho, who agreed
with the audit results.
EONARD G. BIRNBAUM AND COMPANY
e&*M
ACCEPTED BY:
?J
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REPORT NO: WR-CC-87-30
EXHIBIT A
Page 1 of 1
ONC TECHNICAL SERVICES, SUCCESSOR CONTRACTOR TO
BENDIX FIELD ENGINEERING CORPORATION
GRAND JUNCTION, COLORADO
SUMMARY OF CONTRACTOR'S COSTS CLAIMED AND RESULTS OF AUDIT
INTERAGENCY AGREEMENT DW89930549-01
OCTOBER 1, 1983, THROUGH SEPTEMBER 31, 1985
Contractor's Costs Claimed
Direct Labor
Labor Overhead
Travel
Miscellaneous Direct
Subcontracts
Procurement Support
Common Support
Subtotal
General & Administrative
Total
Young
Property
$9,859.72
9,859.72
1,109.73
1,006.68
67,965.85
3,448.63
6,312.25
99,562.58
5,506.19
$105,068.77
Randall
Property
$18,600.76
18,450.42
3,655.13
2,064.13
147,601.00
7,483.27
12,404.80
210,259,51
10,906.94
Total
$28,460.48
23,310.14
4,764.86
3,070.81
215,566.85
10,931.90
18,717.05
309,822.09
16,413.13
$221,166.45 $326,235.22
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REPORT NO: WR-CC-87-30
EXHIBIT B
Page 1 of 1
UNC TECHNICAL SERVICES, SUCCESSOR CONTRACTOR TO
BENDIX FIELD ENGINEERING CORPORATION
GRAND JUNCTION, COLORADO
SUMMARY OF CONTRACTOR'S COSTS CLAIMED AND RESULTS OF AUDIT
INTERAGENCY AGREEMENT DW89930965-01
OCTOBER lr 1983, THROUGH SEPTEMBER 31, 1986
Direct Labor
Labor Overhead
Travel
Miscellaneous
Subcontracts
Procurement Support
Common Support
Subtotal
General & Administrative
Total
Contractor Cost Claimed
$8,919.25
8,310.84
940.46
64.58
0
3.23
4,359.18
$22,597.54
4,036.63
$26,634.17
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untiea siaies uovernmenl
Deportment of Encn
SUBJECT;
Dttt: way 12» 1987
IG-WR
r - ~~
Audit of Costs Claimed EPA Superfund Interagency Agreements
DW89930549-01 and DW89930965-01, Fiscal Years 1984 through 1986
UNC Technical Services, Successor Contractor to Bendix Field
Engineering Corporation, Grand Junction Operations Office,
Grand Junction, Colorado
Mr. T. E. Wade II, Manager, DOE, Idaho Operations Office, 785 DOE
Plaza, Idaho Falls, Idaho 83402
In response to a request dated August 19, 1986 from the
Environmental Protection Agency, enclosed are two copies of the
subject audit.
The Office of the Inspector General has no objection to the
release of this report at the discretion of the Contracting
Officer, to the duly authorized representatives of the prime
contractor.
Under the provisions of Title 32, Code of Federal Regulations,
Part 290.26{b}(2) (as amended 10 August 1977), all Freedom of
Tnf nrmaf inn Art rpau*»stK fnr audit renorts received bv the IG
Part 290.26{b}(2) (as amended 10 August 19/7), ajj Fre
Information Act requests for audit reports received by the
will be referred to the cognizant Contracting Officer
determination as
requestor.
IG
for
to tne cognizant contracting unicer IOIT
to releasability and a direct response to the
Contract information contained in this audit report may be
confidential. The restrictions of 18 USC 1905 should be
considered before this information is released to the public.
Wayne I. Tucker
Manager, Western Region
Office of Inspector General
Attachment
Audit Report (2)
cc:
Ernie Moore, Audit Director, AAG, Albuquerque, NM
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REPORT NO: WR-CC-87-31
0. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
Audit of Costs Claimed
For Fiscal Years 1984 Through 1986 on
EPA Superfund Interagency Agreement DW89072201
By Lawrence Berkeley Laboratory
Berkeley, California
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REPORT NO: WR-CC-87-31
AUDIT OF COSTS CLAIMED
FOR FISCAL YEARS 1984 THROUGH 1986 ON
EPA SUPERFUND INTERAGENCY AGREEMENT DW89072201
BY LAWRENCE BERKELEY LABORATORY
BERKELEY, CALIFORNIA
TABLE OF CONTENTS
, Page
— **
Purpose and Scope 1
Audit Results.... 2
Summary of Costs Claimed and Results of Audit - Exhibit A.... 3
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U. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
AUDIT OF COSTS CLAIMED
FOR FISCAL YEARS 1984 THROUGH 1986 ON
EPA SUPERFUND INTERAGENCY AGREEMENT DW89072201
BY LAWRENCE BERKELEY LABORATORY
BERKELEY, CALIFORNIA
REPORT NO: WR-CC-87-31 May 7, 1987
PURPOSE AND SCOPE
In response to a request dated August 19, 1986, from the
Environmental Protection Agency, Washington, D. C., we have
completed an audit of Lawrence Berkeley Laboratory (LBL) costs
claimed under EPA Superfund Interagency Agreement DW89072201 for
fiscal years 1984 through 1986. The purpose of the audit was to
determine the alienability of the claimed costs under the
agreement. Allowable costs are costs incurred which are
reasonable, allocable, and according to the terms of the
agreement, applicable cost principles and regulations, and
generally accepted accounting principles and practices
appropriate to the particular circumstances. The agreement
required LBL to provode "Verification of Analytic and Semi
Analytic Methods for Prediction of Containment Transport." The
contractor claimed $90,000 under this agreement for April 1,
1984, through September 30, 1986.
The scope of the audit was limited to test procedures for
validating the contractor's costs claimed by tracing them to
books of original entry and supporting records. Tests included
specific transactions and did not include an evaluation of the
contractor's cost control system or technical aspects of the
contractor's performance.
As defined in the above scope, the audit was completed
according to sections of the generally accepted government
auditing standards that applied and included such tests of the
contractor's data and records as were considered necessary.
Department of Energy Acquisition Regulations, Federal Acquisition
Regulations, and the terms and conditions of the agreement were
used as criteria in our determining of allowable costs.
This report may not be released to anyone outside the
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Department of Energy without approval of Headquarters, Office of
Audits, except to an agency involved in negotiating or
administering the agreement.
Our office did not complete a technical evaluation of the
agreement. Accordingly, our recommendations for acceptance of
costs claimed is qualified pending the contracting officer's
technical review of the contractor's performance.
AUDIT RESULTS
Based on the audit, we consider $90,000 to be allowable
under the agreement. A summary of costs claimed is contained in
Exhibit A.
The results of our audit were discussed with the
contractor's representative, Ms. Barbara Perry. Department Head,
Off icer of Sponsored Research Administration, on April 1, 1987.
LEONARD G. B1RNBAUM AND COMPANY^
ACCEPTED BY:
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REPORT NO: WR-CC-87-31
EXHIBIT A
Page 1 of 1
LAWRENCE BERKELEY LABORATORY
BERKELEY, CALIFORNIA
Summary of Costs Claimed
and Results of Audit
EPA Interagency Agreement DW89072201
April 1, 1984 Through September 30, 1986
Supplies and Expenses
Travel
Consultants
Computer Expense
Scientific Burden
Scientific Labor
Technical Services
General Overhead
Total <•
Amount Claimed and
Recommended for Acceptance
$2,927
4,970
13,545
1,214
7,188
28,957
2,117
29,082
$90,000
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REPORT NO: WR-CO87-32
U. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO
EPA Superfund Audit
of Interagency Agreements DWB9077501 and DW89139401 with
DOE at
Los Alamos National Laboratory
Los Alamos, New Mexico
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REPORT NO: WR-CC-87-32
EPA SUPERFUND AUDIT
OF INTERAGENCY AGREEMENTS DW89077501 AND DW89139401 WITH
DOE AT
LOS ALAMOS NATIONAL LABORATORY
LOS ALAMOS, NEW MEXICO
TABLE OF CONTENTS
Purpose and Scope 1
Audit Results 2
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U. S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
WESTERN REGION
ALBUQUERQUE, NEW MEXICO 87115
EPA SUPERFUND AUDIT
OF INTERAGENCY AGREEMENTS DW89077501 AND DW89139401 WITH
DOE AT
LOS ALAMOS NATIONAL LABORATORY
LOS ALAMOS, NEW MEXICO
REPORT NO: WR-CC-87-32 May 7, 1987
PURPOSE AND SCOPE
In response to a request dated August 19, 1986, from the
Environmental Protection Agency, Washington D. C., we have
completed an audit of incurred costs of Los Alamos National
Laboratory, Interagency Agreements DW89077501 and DW89139401.
The purpose of the audit was to evaluate the reasonableness of
the contractor's costs claimed. The contractor's claim for
fiscal years 1984 through 1986, consisted of costs of $107,384
incurred for a program to provide "Guidelines for Selection of
Chemical Protective Clothing."
The scope of the audit of costs claimed was limited to
evaluating the accounting records and other supporting
documentation on which the costs claimed were based. Tests
included specific transactions supporting the costs claimed.
Evaluations of the contractor's total cost-control system or the
technical aspects of the claim were not included.
As defined in the above scope, the audit was completed
according to sections of the generally accepted government
auditing standards that applied and included such tests of the
contractor's data and records and such other auditing procedures
as were considered necessary. The Federal Acquisition
Regulations, as supplemented by the Department of Energy
Acquisition Regulations, were used as criteria in the evaluation
of claimed costs.
This report may not be released to anyone outside of the
requesting department without the approval of Headquarters,
Office of Audits, except to an agency involved in negotiating or
administering the contract.
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AUDIT RESULTS
Based on the audit, we consider the claimed costs of
$107,384 to be allowable under the agreements and recommended for
acceptance. A summary of the claimed costs for each agreement is
provided in Exhibit A.
The results of audit were discussed with Mr. Bob Davidson,
Internal Review and Evaluation Department, and Mr. Horton Struve,
DOE-AL, who agreed with our findings.
LEONARD G. BIRNBAUM AND COMPANY
ACCEPTED BY:
S *J4®n*y***&l £»**wO
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REPORT NO: WR-CC-87-32
EXHIBIT A
Page 1 of 1
EPA SUPERFUND AUDIT
OP INTERAGENCY AGREEMENTS DW89077501 AND DWB9139401 WITH DOE AT
LOS ALAMOS NATIONAL LABORATORY
FISCAL YEAR 1984-1986
AGREEMENT NO;
*•
DW89077501
DW89139401
CUMULATIVE
OBLIGATION
$85,000
50,000
$135,000
CLAIMED
COSTS
$85,000
22,384
107,384
QUESTIONED
COSTS
-0-
Notes
I.
The above obligated and claimed amounts represent costs for
fiscal years 1984 through 1986 only. The contractor carries
over amounts from one fiscal year to another.
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NUMBER: CR-CC-87- 1
U.S. DEEARlMENr OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
CAPITAL REGIONAL OFFICE
Genoantown, Maryland 20874
Audit of Costs Claimed
by the Department of Energy
Under Superfund Interagency Agreement DW89105001
with the Environmental Protection Agency
for Work Performed by
Council of Energy Resource Tribes
Denver, Colorado
Fiscal Years 1984 Through 1986
This review was done by Leonard G. Birnbaum and Company, Certified
Public Accountants, and, by acceptance, it becomes a product of the
Office of Inspector General.
Date: July 13, 1987
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NUMBER: CR-OC-87- 1
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER SUPERFUND BTTERAGENCY AGREEMENT DM89105001
WITH THE ENVraDNMENIAL PROTECTION AGENCY
•FOR WORK PERFORMED BY
COUNCIL OF ENERGY RESOURCE TRIBES
DENVER, COLORADO
FISCAL YEARS 1984 THROUGH 1986
TABLE OF OONTEJH.TS
Page
Purpose and Scope 1
Audit Results 1
-------
U.S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
CAPITAL REGIONAL OFFICE
Germantown, Maryland 20874
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER SUPERFUND INTERAGENCY AGREEMENT DW89105001
WITH THE ENVIKJNMENraii PROTECTION AGENCY
FOR WORK PERFORMED BY
COUNCIL OF ENERGY RESOURCE TRIBES
DENVER, COLORADO
FISCAL YEARS 1984 THROUGH 1986
NUMBER: CR-CC-87- 1 July 13, 1987
PURPOSE AND SCOPE
In response to a request dated August 19, 1986, from the Environ-
mental Protection Agency (EPA), Washington, D.C., we have completed an
audit of costs incurred under interagency agreement DW89105001 between
EPA and Department of Energy Headquarters. The work was performed by
the Council of Energy Resource Tribes (CERT), Denver, Colorado during
the period September 1984 through March 1986 under a cost-type contract
with DOE. The purpose of the audit was to evaluate the reasonableness
of the contractor's claimed costs of $117,398 incurred to develop an
"Inventory of Hazardous Waste Sites on Indian lands."
The Denver Branch Office of the Defense Contract Audit Agency
(DCAA) is responsible for reviewing the costs incurred and claimed by
CERT under its Government contracts and grants. Accordingly, we have
relied on DCAA for verification of the costs incurred by CERT. DCAA
reported the results of their audit on May 6, 1987 in audit report
number 7121-7-179053. We also reviewed the DOE contracting officer's
actions in authorizing payments to CERT and the actions taken by the DOE
Finance Office at Germantown, Maryland to charge the EPA Superfund for
the amounts which are properly reimbursable for the work performed.
This report may not be released to anyone outside the requesting
agency without approval of the DOE Office of Inspector General
Headquarters, Office of Audits, except to an agency involved in
negotiating or administering the interagency agreement and contract.
AUDIT RESULTS
Pertinent data with respect to the subject project are set forth
and discussed below:
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Amount
EPA Superfund obligations by
IAG for the project (a) $125,000
Cost, reimbursements obtained by
DOE fron EPA Superfund (b) $121,250
Costs incurred by CERT for project
performance (c) $117,398
Difference (b - c) $ 3,852
Ihe amount obtained by DOE ($121,250) under interagency reimburse-
ment procedures was based upon estimated performance costs for this
project because CERT billings under its DOE contract were in total and
did not include a breakdown of individual project costs.
In response to our request, CERT informed us that their project
cost records show the total amount incurred and claimed for performance
of this project amounted to $117,398. This amount was verified to us by
DCAA in their May 6, 1987 audit report. DCAA took no major exception to
the claimed costs and stated the results of their audit are qualified
pending final review of CERT's incurred costs and indirect rates for the
period of performance.
For purposes of this review, we have accepted the costs of $117,398
as incurred for the performance of this project. The difference of
$3,852 should be credited to EPA interagency agreement DW89105001 as an
overbilling of incurred costs.
r
Ml
lEONARD G. BIHNBAUM AND COMP
ACCEPTED EY:
^^-^6
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Audit Report No. 7121-7-179053 6 May 1987
REPORT ON REVIEW OF RECORDED COSTS
CONTRACT NO. DE-AGO 1-84CPU936
INVENTORY OF HAZARDOUS HASTE SITES PROJECT
COUNCIL OF ENERGY RESOURCE TRIBES
DENVER, COLORADO
The Defense Contract Audit Agency bas no objection to the release of this report,
at the discretion of the contracting agency, to authorized representatives of
Council of Energy Resource Tribes.
Under the provisions of Title 32, Code of Federal Regulations, Part 290.26(b)
(2), any Freedom of Information Act requests for audit reports received by DCAA
.will be referred to the cognizant agency for determination as to releasability
and a direct response to the requester.
Contractor information contained in this audit report nay be confidential. The
restrictions of 18 USC 1905 should be considered before this information is
released to the public.
This report Bay not be released to any Federal agency outside the Departnent of
Defense without the approval of Headquarters, DCAA, except to an agency request-
ing the report in negotiating or administering its contract.
DEFENSE CONTRACT AUDIT AGENCY
DENVER BRANCH OFFICE
DENVER, COLORADO
FOR OFFICIAL USE ONLY
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DEFENSE CONTRACT AUDIT AGENCY
SAN FRANCISCO REGION
DENVER BRANCH OFFICE
ROOM 474. U.S. CUSTOM HOUSE
7*1 . ItTH STREET
DENVER. COLORADO tOZOZ - 1517
in »m» ui'f* TO
Audit Report No. 7121-7-179053 6 May 1987
SUBJECT: Report on Review of Recorded Costs
Contract No. DE-AC01-84CP11936
Inventory of Hazardous Waste Sites Project
Council of Energy Resource Tribes
Denver, Colorado
TO: U.S. Department of Energy
Office of the Inspector General, 01-34
ATTN: Kelvin Weieer
Washington, D.C.
1. Purpose and Scope of Audit
As requested in your letter dated 9 January 1987, we verified recorded costs
on the subject project. The purpose of the review was to verify amounts to the
contractor's boohs and records.
2. Scope of Audit
The evaluation was performed in accordance with generally accepted Govern-
ment auditing standards and included such tests of the contractor's data and
records and such other auditing procedures we considered necessary in the cir-
cumstances.
3. Results of Audit
Our evaluation disclosed the following recorded costs from inception of the
contract through 31 March 1986.
Recorded
Costs
labor $ 42,955
Travel 4,077
Consultant 6,500
Other 2,104
Overhead 41,741
GE.A Expense 20.021
Total
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Audit Report No. 7121-7-179053
/"«'
Recorded lebor and travel costs include transfers totalling $391 and $477,
respectively, from other Council of Energy Resource Tribes' (CERT) projects. We
reviewed supporting data for the transfers and found it to be inadequate.
Results of audit are qualified pending our final review of CERT's incurred
costs and indirect rates for the period of contract performance.
5. Disposition of Audit Results
Information contained in this audit report should not be used for purposes
other than for the progress payment review without prior consultation with our
office.
Upon request we will provide additional accounting counsel. Our telephone
number is AC 303/844-3077 or FTS 564-3077.
DEFENSE CONTRACT AUDIT AGENCY
^ROBERT S^KERI, 1
Branch Manager
FOR OFFICIAL USE ONLY
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P9C ¥ tna.|
C1**»), ""
United States Government
Department of Energy
memorandum
DATE:
H6PLY TO
ATTNOF:
SUBJECT:
TO:
July 13, 1987
IG-34
Audit of Cost Claimed by the Department of Energy
Under Superfund Interagency Agreement DW89105001
with the Environmental Protection Agency
Director of Intergovernmental Affairs, CP-23
In response to a request dated August 19, 1986, the Office of Inspector
General conducted an audit of costs claimed by the Department of Energy
under Superfund Interagency Agreement DW89105001 with the Environmental
Protection Agency. The work under the Interagency agreement was performed
by the Council of Energy Resource Tribes, Denver, Colorado during Fiscal
Years 1984 through 1986.
The Office of the Inspector General has no objection to the release of
this report at the discretion of the Contracting Officer, to the duly
authorized representatives of the prime contractor.
Under the provisions of Title 32, Code of Federal Regulations, Part
290.26{b) (2) (as amended 10 August 1977), all Freedom of Information Act
requests for audit reports received by the Inspector General will be
referred to the cognizant Contracting Officer for determination as to
releasability and a direct response to the requestor.
Contract information contained in this audit report may be confidential.
The restrictions of 18 USC 1905 should be considered before this information
is released to the public.
Manager, Capital Regional Office
Office of Inspector General
Attachment
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KUmber: ER-OC-87-58
U.S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
EASTERN REGIONAL OFFICE
Oak Ridge, Tennessee 37830
Audit of Costs Claimed
by the Department of Energy
Under Interagency Agreements No. DW89108101 and DW89024601
with the Environmental Protection Agency
for Work Performed by
Argorme National laboratory,
Chicago, Illinois
October 1, 1983 to September 30, 1986
This audit was done by Leonard G. Birnbaum and Company, Certified Public
Accountants, and, by acceptance, it becomes a product of the Office of
Inspector General.
Date: August 5, 1987
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NUntoer: ER-CC-87-58
AUDIT OF COSTS CLAIMED
BY TOE DEPAKMENr OF ENERGY
UNDER lOTERAGENCY AGREEMENTS NO. DW89108101 AND DW89024601
WITH THE ENVIRONMENiaL IBDTECriON AGENCY
FOR WORK PERFORMED BY
ARGONNE NATIONAL lABORATORY
CHICAGO, TTTTNQIS
OCTOBER 1, 1983 TO SEPTEMBER 30, 1986
TABLE OF CONTENTS
Purpose and Scope
Audit Results.
Summary of Costs Claimed - Exhibit A.
.1
.2
.3
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OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
EASTERN REGIONAL OFFICE
Oak Ridge, Tennessee 37830
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER INTERAGENCY AGREEMENTS NO. DW89108101 AMD DW89024601
WITH THE ENVIRCNMENTAL PROTECTION AGENCY
FOR WORK PERFORMED BY
ARGONNE NATIONAL LABORATORY
CHICAGO, ILLINOIS
OCTOBER 1, 1983 TO SEPTEMBER 30, 1986
REPORT NO: ER-CC-87-58 August 5. 1987
PURPOSE AND SCOPE
In response to a request from the Environmental Protection Agency
(EPA), Washington, D.C., we have audited the costs incurred under inter*-
agency agreements DW89108101 and DW89024601. Argonne National labora-
tory (ANL) performed the work projects set forth in these agreements
under its cost-type contract with the Department of Energy's (DOE)
Chicago Operations Office. Agreement number DW89108101 requested DOE to
assess the degree of contamination and identify the types of contami-
nated materials at a site in Lansdowne, PA and to submit recommendations
to EPA on the remedial action to be taken to decontaminate the site.
Agreement number DW89024601 requested that certain samples of contami-
nated materials which EPA sent to ANL be maintained in protective
storage. The contractor's claims consisted of costs of $122,198 for
planning and accomplishing the work during Fiscal Years 1984, 1985, and
1986.
The purpose of our audit was to evaluate the allowability of costs
claimed under the interagency agreements. Allowable costs are costs
incurred which are reasonable, allocable, and in accordance with terms
of the interagency agreement, applicable cost principles and regula-
tions, and generally accepted accounting principles and practices
appropriate to the particular circa instances.
The scope of our audit was limited to evaluating the accounting
records and other supporting documentation supporting claimed costs.
Tests did not include an evaluation of the contractor's total cost
control system or technical aspects of the contractor's performance.
As defined in the above scope, the audit was performed in accor-
dance with the applicable sections of the generally accepted Government
auditing standards and included such tests of the contractor's reports
and records and such other auditing procedures as were considered neces-
sary. The Federal Acquisition Regulations, as supplemented by the
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Department of Energy Acquisition Regulations, were used as criteria in
the evaluation of claimed costs.
report nay not be released to anyone outside the requesting
Department without the approval of DOE, Office of Inspector General
(OIG) , Headquarters, Office of Audits, except to an Agency involved in
negotiating or administering the interagency agreements. Furthermore,
the information contained in this audit report should not be used for
purposes other than those intended without prior consultation with the
DOE-OIG regarding its applicability.
AUDIT PESUITS
Based on the audit, we consider the costs claimed of $122,198
allowable under the interagency agreements and recommend them for accep-
tance, A summary of the claimed costs for each agreement is provided in
Exhibit A.
The results of audit were discussed with Al Nisius, ANL chief of
Accounting, who agreed with our findings.
G. BIRNBAUM AND OCMH
ACXZEPTED BY:
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Number: ER-CC-87- 58
Exhibit A
Chicago Operations Office
Argonne, Illinois
Summary of Costs Claimed
Interagency Agreements No. DW89108101 and DW89024601
October 1, 1983 to September 30, 1986
RESULTS OF AUDIT
INTERAGENCY
AGREEMENT NUMBER
DW89108101 (Note 1)
DW89024601 (Note 2)
Total
DOE *
QUESTIONED
COSTS
$106,302
15,896
$122.198
- 0 -
* The DOE Chicago Operations Office billed the amounts shown to
the EPA without adding any administrative costs.
Note 1 - Project started and completed during period.
Note 2 - This agreement requested the performance of a large number of
different projects. Only the projects related to the custody
of hazardous waste samples were chargeable to EPA Superfund
Appropriation 6820X8145. A memorandum of the costs incurred
for the month on each individual project applicable to the
agreement was furnished to the EPA Cincinnati Finance Office
along with the overall monthly interagency billing invoice (SF
1081) prepared by the DOE Chicago Operations Office. The EPA
Finance Office used the monthly memoranda to determine the
amounts applicable to the custody projects and charged the
Superfund appropriation accordingly. Our review of the ANL
time and financial records indicated that the cost amounts
reported for this project in the monthly memoranda were gener-
ally valid and that the total for Fiscal Years 1984, 1985, and
1986 approximated the amounts the EPA Finance Office charged
to the Superfund appropriation.
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United States Government
Department of Energy
memorandum
DATE: August 11, 1987
REPLY TO
ATTN OF:
IG-ERO
SUBJECT: Audit of Costs Claimed by the Department of Energy Under
Superfund Interagency Agreements DW89108101 and
DW89024601 with the Environmental Protection Agency
TO: Hilary J. Rauch, Manager
Chicago Operations Office
In response to a request dated August 19, 1986, the
Office of Inspector General conducted an audit of costs
claimed by the Department of Energy under Superfund
Interagency Agreements DW89108101 and DW89024601 with the
Environmental Protection Agency. The work under the
interagency agreements was performed by Argonne National
Laboratory, Chicago, Illinois during Fiscal Years 1984,
1985, and 1986.
The Office of the Inspector General has no objection to
the release of this report at the discretion of the
Contracting Officer, to the duly authorized representa-
tives of the prime contractor.
Under the provisions of Title 32, Code of Federal
Regulations, Part 290.26 (b) (2) (as amended 10 August
1977), all Freedom of Information Act requests for audit
reports received by the Inspector General will be
referred to the cognizant Contracting Officer for
determination as to releasability and a direct response
to the requestor.
Contract information contained in this audit report may
be confidential. The restrictions of 18 use 1905 should
be considered before this information is released to the
public.
Jamesf W. Swafforq
Manager, Eastern Region
Office of Inspector General
Attachment
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Number: ER-OC-87-59
U.S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
EASTERN REGION
Oak Ridge, Tennessee 37830
Audit of Costs Claimed
by the Department of Energy
Under Interagency Agreements No. DW89138601 and DW89147501
with the Environmental Protection Agency
for Work Performed by
Martin Marietta Energy Systems, Inc.
October 1, 1984 to September 30, 1986
This audit was done by Leonard G. Birnbaum and Company, Certified Public
Accountants, and, by acceptance, it becomes a product of the Office of
Inspector General.
Date: August 5, 1987
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Nuntoer: ER-OC-87- 59
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER HHERAGENCY AGREEMENTS NO. DW89138601 AND DW89147501
WITH THE ENVIRONMENTAL VWJi'iX-TlON AGENCY
FOR V9QRK PERFORMED BY
MARTIN MARIETTA ENERGY SYSTEMS, INC.
OCIDEER 1, 1984 TO SEPTEMBER 30, 1986
TABI£ OF
Page
Purpose and Scope 1
Audit Results 2
Summary of Costs Claimed - Exhibit A 3
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OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
EASTERN REGIONAL OFFICE
Oak Ridge, Tennessee 37831
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER INTERAGENCY AGREEMENTS NO. DW89138601 AMD DW89147501
WITH THE ENVIRONMENTAL PROTECTION AGENCY
FOR WORK PERFORMED BY
MARTIN MARIETTA ENERGY SYSTEMS, INC.
OCTOBER 1, 1984 TO SEPTEMBER 30, 1986
REPORT NO.: ER-CC-87-59 August 5, 1987
PURPOSE AND SCOPE
In response to a request from the Environmental Protection Agency
(EPA), Washington D.C., we have audited costs incurred under interagency
agreements DW89138601 and DW89147501. EPA issued these interagency
agreements to the Department of Energy's (DOE) Oak Ridge Operations
Office. Agreement number DW89138601 requested an evaluation of proposed
remedial action for the Whitehouse Oil Pits, and agreement number
DW89147501 requested information support for the Office of Waste Pro-
grams Enforcement, EPA. Oak Ridge Operations Office contracted with
Martin Marietta Energy Systems, Inc. (MMES), to perform the work under
the agreements. The contractor's claims consisted of costs of $97,982
incurred for planning and accomplishing the work during Fiscal Years
1985 and 1986. There were no costs incurred in Fiscal Year 1984.
The purpose of our audit was to evaluate the allowability of costs
claimed under the interagency agreements. Allowable costs are costs
incurred which are reasonable, allocable, and in accordance with terms
of the interagency agreements, applicable cost principles and
regulations, and generally accepted accounting principles and practices
appropriate to the particular circumstances.
The scope of the audit was limited to evaluating the accounting
records and other documentation supporting claimed costs. Tests did not
include an evaluation of the contractor's total cost control system or
technical aspects of the contractor's performance.
As defined in the above scope, our audit was performed in accor-
dance with the applicable sections of the generally accepted Government
auditing standards and included such tests of the contractor's data and
records and such other auditing procedures as were considered necessary.
The Federal Acquisition Regulations, as supplemented by the Department
of Energy Acquisition Regulations, were used as criteria in the evalua-
tion of the claimed costs.
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report nay not be released to anyone outside the requesting
Department without the approval of the DOE, Office of Inspector General
(DIG) , Headquarters, Office of Audits, except to an Agency involved in
negotiating or administering the interagency agreements. Furthermore,
the information contained in this audit report should not be used for
purposes other than those intended without prior consultation with the
DQE-OIG regarding its applicability.
AUDIT RESULTS
Based on the audit, we consider the claimed costs of $97,982 allow-
able under the interagency agreements and recommend them for acceptance.
A summary of the claimed costs for each agreement is provided in Exhibit
A«
The results of audit were discussed with Mary Ross, Manager,
Central Accounting, MMES, who agreed with our findings.
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Nunfcer: ER-OC-G7-59
Exhibit A
Oak Ridge Operations Office
Oak Ridge, Tennessee
Sunmary of Costs Claimed
Interagency Agreements No. DW89138601 and DW89147501
October 1, 1984 to September 30, 1986
DW89138601
DW89147501
Total
RESULTS OF AUDIT
INTERAGENCY
AGREEMENT
NUMBER
MOUNTS
OBLIGATED
COSTS
BY DOE
QUESTIONED
COSTS
$ 21,500 $ 17,892
2/
100.000
$121,500
80.090
$ 97.982
NOTES
1. EPA originally issued DW89138601 for $21,500. The unexpended
amount of $3,608 was reported for deobligation. In MMES records
this agreement is Work Order 157101 (40-1571-85).
2. EPA originally issued DW89147501 for $200,000 and later reduced it
to $100,000. In MMES records this agreement is Work Order 158401
(40-1584-85).
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XJnited States Government ___ Department of Energy
memorandum
DATE:
REPLY TO
ATTN OF: IG-ERO
SUBJECT: Audit of Costs Claimed by the Department of Energy Under
Superfund Interagency Agreements DW89138601 and
DW89147501 with the Environmental Protection Agency
TO: Joe La Grone, Manager
Oak Ridge Operations Office
In response to a request dated August 19, 1986, the
Office of Inspector General conducted an audit of costs
claimed by the Department of Energy under Superfund
Interagency Agreements DW89138601 and DW89147501 with the
Environmental Protection Agency. The work under the
interagency agreements was performed by Martin Marietta
Energy Systems, Inc., Oak Ridge, Tennessee during Fiscal
Years 1985 and 1986.
The Office of the Inspector General has no objection to
the release of this report at the discretion of the
Contracting Officer to the duly authorized representa-
tives of the prime contractor.
Under the provisions of Title 32, Code of Federal
Regulations, Part 290.26(b)(2) (as amended 10 August
1977), all Freedom of Information Act requests for audit
reports received by the Inspector General will be
referred to the cognizant Contracting Officer for
determination as to releasability and a direct response
to the requestor.
Contract information contained in this audit report may
be confidential. The restrictions of 18 USC 1905 should
be considered before this information is released to the
public.
W. Swafford
Manager, Eastern Region
Office of Inspector General
Attachment
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Number: ER-OC-87- 60
U.S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE_OF AUDITS
EASTERN REGIONAL OFFICE
Oak Ridge, Tennessee 37830
Audit of Costs Claimed
by the Department of Energy
Under Interagency Agreement No. DW89138201
with the Environmental Protection Agency
for Work Performed by
Oak Ridge Associated Universities
and
Battelle Oolurttous laboratories
October 1, 1984 to September 30, 1986
This audit was done by Leonard G. Birnbaum and Company, Certified Public
Accountants, and, by acceptance, it becomes a product of the Office of
Inspector General.
Date: August 5, 1987
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Ntnhber: ER-CC-87-60
AUDPT OF
BY THE DEPARUiENr OF ENERGY
UNDER INTERAGENCY AGREEMENT NO. DW89138201
VTCTH 1HE INVIRDNMINIAL roOTECTION AGENCY
FOR WORK PERFORMED BY
OAK RIDGE ASSOCIATED UNIVERSITIES
AND
BATTEEIE OOUMBUS lABORATORIES
OCTOBER 1, 1984 TO SEPTEMBER 30, 1986
TABLE OF
Purpose and Scope 1
Audit Results 2
Summary of Costs Claimed - Exhibit A 3
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OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDITS
EASTERN REGIONAL OFFICE
Oak Ridge, Tennessee 37830
AUDIT OF COSTS CLAIMED
BY THE DEPARTMENT OF ENERGY
UNDER INTERAGENCY AGREEMENT NO. DW89138201
WITH THE ENVIRONMENTAL PROTECTION AGENCY
FOR WORK PERFORMED EY
OAK RIDGE ASSOCIATED UNIVERSITIES
AND
BATTELLE COIIMBUS LABORATORIES
OCTOBER 1, 1984 TO SEtTiMHtR 30, 1986
REPORT NO.: ER-CC-87-60 August 5, 1987
PURPOSE AND SCOPE
In response to a request from the Environmental Protection Agency
(EPA), Washington, D.C., we have audited costs incurred under inter-
agency agreement DW89138201. This agreement was issued to the Depart-
ment of Energy's (DOE) Oak Ridge Operations Office for decontaminating,
packaging, and shipping contaminated gloveboxes, a vent system, and
miscellaneous waste items which were located at the J.C. Haynes labora-
tory near Newark, Ohio. Oak Ridge Operations Office contracted with Oak
Ridge Associated Universities (ORAU) and with Battelle Columbus labora-
tories (BCL) to perform specified portions of the work. The contrac-
tors1 claims consisted of $302,013 incurred for planning and accomplish-
ing the work during Fiscal Years 1985 and 1986. There were no costs
incurred in Fiscal Year 1984.
The purpose of our audit was to evaluate the alienability of costs
claimed under the interagency agreement. Allowable costs are costs
incurred which are reasonable, allocable, and in accordance with terms
of the interagency agreement, applicable cost principles and regula-
tions, and generally accepted accounting principles and practices appro-
priate to the particular circumstances.
The scope of our audit was limited to evaluating the accounting
records and other documentation supporting claimed costs. Tests did not
include an evaluation of the contractors' total cost control system or
technical aspects of the contractors1 performance.
As defined in the above scope, our audit was performed in accor-
dance with the applicable sections of the generally accepted Government
auditing standards and included such tests of the contractors1 data and
-------
records and such other auditing procedures as were considered necessary.
The Federal Acquisition Regulations, as supplemented by the Department
of Energy Acquisition Regulations, were used as criteria in the evalua-
tion of claimed costs.
This report may not be released to anyone outside the requesting
Department without the approval of DOE, Office of Inspector General
(OIG), Headquarters, Office of Audits, except to an Agency involved in
negotiating or administering the interagency agreement. Furthermore,
the information contained in this audit report should not be used for
purposes other than those intended without prior consultation with the
DOE-OIG regarding its applicability.
AUDIT RESULTS
Based on the audit, we consider the costs claimed by ORAU of
$170,542 and the costs claimed by BCL of $131,471, or a total of
$302,013, to be allowable under the interagency agreement and recommend
them for acceptance. A summary of the claimed costs is presented in
Exhibit A.
The results of audit were discussed with J.C. Stanifer, Head,
Central Accounting, ORAU, and with Ronald Baker, Manager of Government
Accounting Practices, BCL, who agreed with our findings.
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Number: m«30-87-60
Exhibit A
Oak Ridge Operations Office
Oak Ridge, Tennessee
. Sunroary of Costs Claimed
Interagency Agreement No. DW89138201
October 1, 1984 to September 30, 1986
RESUIH5 OF AUDIT
INTERAGENCY
AGREEMENT
NUMBER
DW89138201
CRAU Portion
BCL Portion
AMDUNTS
OBLIGATED
365,650
COSTS
CLAIMED QUESTIONED
BY DOE
$365,650
$170,542
131.471
$302,013
-0-
NOTE
I/ As of February 24, 1987, an additional $18.21 was due Battelle.
- o
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IMDI
United States Government
I
I ^memorandum
Department of Energy
I
DATE: August 12, 1987
REPLY TO
ATTN OF: IG-ERO
SUBJECT: Audit of Costs Claimed by the Department of Energy Under
Superfund Interagency Agreement DW89138201 with the
Environmental Protection Agency
TO: Joe La Grone, Manager
Oak Ridge Operations Office
In response to a request dated August 19, 1986, the
Office of Inspector General conducted an audit of costs
claimed by the Department of Energy under Superfund
Interagency Agreement DW89138201 with the Environmental
Protection Agency. The work under the interagency agree-
ment was performed by Oak Ridge Associated Universities
and Battelle Columbus Laboratories during Fiscal Years
1985 and 1986.
The Office of the Inspector General has no objection to
the release of this report at the discretion of the
Contracting Officer to the duly authorized representa-
tives of the prime contractor.
Under the provisions of Title 32, Code of Federal
Regulations, Part 290.26(b)(2) (as amended 10 August
1977), all Freedom of Information Act requests for audit
reports received by the Inspector General will be
referred to the cognizant Contracting Officer for
determination as to releasability and a direct response
to the requestor.
Contract information contained in this audit report may
be confidential. The restrictions of 18 use 1905 should
be considered before this information is released to the
public.
/James W. Swafford
Manager, Eastern Region
Office of Inspector General
Attachment
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