00
                       ENVIRONMENTAL PROTECTION AGENCY




                            COOPERATIVE AGREEMENT




                           REPORT OF INTERIM AUDIT







                                     OF






           NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION




             MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84




           (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)




             FOR THE PERIOD DECEMBER 31, 1984 TO MARCH 31, 1989

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION

              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84

            (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                                CONTENTS
                                                                    Page

AUDITORS' REPORT                                                     1-2

Summary of Costs Claimed, Accepted and Questioned - Exhibit A          3

Note to Exhibit A (Scope Limitation)                                 4-5

Statement of Costs Claimed, Accepted and Questioned for
  Fulton Terminals Site - Schedule A                                   6

Notes to Schedule A                                                  7-8

Statement of Costs Claimed, Accepted and Questioned for
  Clothier Site - Schedule B                                           9

Notes to Schedule B                                                10-12

Statement of Costs Claimed, Accepted and Questioned for
  Volney Landfill Site - Schedule C                                   13

Notes to Schedule C                                                14-16

Statement of Costs Incurred and Determined Eligible or
  Ineligible (All Sites) - Exhibit A-l                                17

Notes to Exhibit A-l                                               18-21

Background of the Sites - Exhibit A-2                              22-24

Auditors' Comments on Compliance, Performance and
  Internal Control - Exhibit B                                        25

Summary of Grantee Comments and
 Auditor Response to Comments                                      26-31

-------
                     SAMUEL M. FISHER COMPANY
                     CERTIFIED PUBLIC ACCOUNTANTS
                                 4OI PARKWAY
                          BROOM ALL. PENNSYLVANIA 19O08
                                 1219) 328-3900
                               FAX (2151 328-0004
Environmental Protection Agency
Divisional Inspector General for Audit
Eastern Audit Division
J.F. Kennedy Federal Building
Boston, MA  02203-1911
We  have  performed  an   interim   audit   of   costs   claimed   for  the   period
December 31,  1984  to  March   31,   1989   under   New  York  State   Multi-Site
Cooperative Agreement  Number V002437-84 with Environmental  Protection  Agency
(EPA)  under  the  Comprehensive,   Environmental  Response,  Compensation,   and
Liability Act of  1980  (CERCLA) as  amended  by  the  Superfund Amendments  and
Reauthorization Act (SARA).  The primary objectives  of our examination were as
follows:

1.   To determine  the adequacy, effectiveness and reliability of procurement,
     accounting   and   management   controls   exercised   by   the   State   in
     administering the cooperative agreement.

2.   To ascertain  the  State's  compliance  with  provisions of  the  cooperative
     agreement and applicable Federal regulations and instructions.

3.   To determine  the  reasonableness,  allocability  and allowability of costs
     claimed under the cooperative agreement.

Our examination covered costs claimed from December  31, 1984  to March 31,  1989
for remedial  investigations  and feasibility  studies  for Fulton Terminals  site
in  Fulton,  New York, Clothier  site in Granby,  New York and  Volney Landfill
site in Volney, New York, as presented in the summary of expenditures from the
State's accounting records.

Our  audit  was  performed  in   accordance  with  generally  accepted auditing
standards  and   the  "Standards   for  Audit   of   Governmental  Organizations,
Programs, Activities and  Functions" issued by the Comptroller General  of  the
United States.   The Environmental  Protection Agency's  "Audit Guide for  CERCLA
Cooperative Agreements,"  issued in August,  1985, was also used as  a guide in
our examination.  Accordingly, the audit included such tests  of the accounting
records and such other  auditing procedures as we considered  necessary  in  the
circumstances.

We did not carry out a substantive  examination of the  claimed costs that  were
accepted in another  EPA audit report  (Note  to  Exhibit A).   These  costs  were
examined by another accounting firm whose report  thereon has  been furnished to
us, and  our  opinion  expressed herein  insofar  as it  relates to  these costs
claimed and accepted is based upon the report of  the other auditors. However,
we did carry  out a second review  of the  costs claimed for the Volney Landfill
site which  had  been  accepted per  the  interim audit  for  Federal eligibility,
because of  subsequent  invalidation  of certain   analytical data used for  the
selection of the remedy included in the Record of Decision.

-------
Environmental Protection Agency
Divisional Inspector General for Audit
Eastern Audit Division
Schedules A,  B  and C set  forth  the  costs claimed by the  State  and the costs
which we  questioned,  including an explanation of  the  reasons  such costs were
questioned.

In  our  opinion,   subject  to  the effects on  Exhibit  A  of  EPA's  ultimate
resolution  of  the questionable  expenditures referred  to  in  the  preceding
paragraph, and subject to  the results of litigation, if any, which may lead to
recovery  of  costs  of  remedial  investigations  and feasibility studies,  Exhibit
A  presents  the  financial  information  in  accordance with  generally  accepted
accounting principles and  financial provisions of the agreement.

In  addition, Exhibit  B  shows  our report on the review  of the  State's  (1)
procurement,  accounting and management controls  (based on criteria established
by  EPA and  set  forth in  the  aforementioned  audit guide)  and  (2) compliance
with  provisions  of  the   agreement  and  applicable  Federal regulations  and
instructions.

This report  is  intended  for use in connection with  the  agreement  to  which it
refers and should  not be used for  any other purpose.
                                          r
Broomall, Pennsylvania
November  10,  1989
                                      -2-

-------
                                                                           EXHIBIT A
                   NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                     MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                   (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)

                      Summary of Costs Claimed, Accepted and Questioned
                     For the Period December 31, 1984 to March 31, 1989

                                        INTERIM AUDIT
                         EPA Eligible Costs
                       Claimed       Accepted
                                   Questioned Costs
Fulton Terminals
Clothier
Volney Landfill
 $  394,169
    723,069
    491.934

 $1.609.172
   333,178
   565,060
   417,902
                               Ineligible
 71,897

$71.897
                              Unsupported    Schedule
$ 60,991
 158,009
   2.135
A
B
C
       Multi-Site  Cooperative  Agreement Number  V002437-84 was  awarded  to New  York
       State Department  of  Environmental Conservation  (NYSDEC)  on  December  28,  1984
       for  100%  Federal participation in  focused  feasibility  studies,  remedial
       investigations and feasibility studies at Fulton Terminals site in Fulton, New
       York and  Clothier Site  in  Granby,  New York;  and remedial  investigation and
       feasibility  study at Volney Landfill site  in Volney, New York.   The  maximum
       Federal participation was as follows:
Original award

Amendment No. 1

Amendment No. 2
   Date

12-28-1984

03-30-1987

06-30-1988
                                    Fulton
                                   Terminals
              Clothier
             Volney
            Landfill
              Total
Amendment No. 3     09-29-1989

       Project and Budget Period:
$449.946      $697.393      $700.560      $1.84:

       No revision in Federal participation

UQ7.884      $810.348      $629.667      $1.847.899
                               No revision in Federal participation
       The project and budget period per the original  award  was  December  31,  1984 to
       June 30, 1986.  Amendment Number 1, authorized on March 30, 1987, extended the
       end of  the project  and  budget periods  to December  31,  1987,  and  Amendment
       Number  2  further  extended  these  periods  to December  31,   1988.   Amendment
       Number  3 extended  the project  and budget  period for  Fulton  Terminals  and
       Clothier Sites to March 31, 1990.

       Letter-of-Credit Drawdowns:

       He  tested  drawdowns on  Letter of  Credit Number  68-13-0203(Amendment  Number
       28) for this cooperative  agreement and  found  them  to be  reasonable  and  in
       accordance with Federal regulations, except  for the questioned costs noted in
       Schedules A, B and C.
                                             -3-

-------
                                                                    EXHIBIT A
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
            (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)

                               Note to Exhibit A

                                 INTERIM AUDIT
SCOPE LIMITATION

This grant  had an interim  audit  performed by another accounting  firm,  which
covered the costs for the period December 31, 1984 to March 31, 1986.

The statement of costs claimed, accepted and set aside was as follows:

                                    Claimed       Accepted      Set-Aside

       Personnel
       Fringe benefits
       Indirect costs
       Travel
       Materials and supplies
       Contractual services
$ 46,810
14,409
20,201
$81,420
1,070
240
355,604
$46,810
14,409
20,201
$81,420
1,070
240
-
$
-
-
$
_
-
355,604
The contractual  service  costs of $355,604 were set  aside  because documentary
evidence of a  pre-award  cost analysis of the contract was  not  made available
to the auditors.  This evidence  was  subsequently  made  available to EPA Region
II, and EPA accepted the costs in its Audit Resolution dated January 29, 1988.

The accepted costs per the interim audit are analyzed by site as follows:
Personnel
Travel
Materials and supplies
Contractual services
Total
$ 81,420
1,070
240
355,604
Fulton
Terminals
$25,815
165
63,241
Clothier
$ 30,588
730
230,893
Volney
Landfill
$25,017
175
240
61,470
                                                        $262.211
$86.902
Our  audit  instructions  from  EPA/01G were   to  examine  costs  claimed  per
Financial Status Report (FSR) as of March 31,  1989 which were in excess of the
accepted  costs  in  the  prior  interim audit.   Accordingly, we  limited  our
substantive audit of the costs as follows:
                                      -4-

-------
                                                                           EXHIBIT A
                   NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                     MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                   (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)

                                      Note to Exhibit A

                                        INTERIM AUDIT
Costs claimed per FSR as of 3-31-89
Costs accepted per prior interim audit

Costs audited per this interim audit
 Fulton
Terminals

 $394,169
   89.221

 $304.948
Clothier

$723,069
 262,211
 Volney
Landfill

$491,934
  86,902
   Total

$1,609,172
   438.334

$1.170.838
       However, we  did carry out  a  second review of  $405,032 (the costs  of  Volney
       Landfill site) accepted per the  interim  audit  for  Federal  eligibility because
       of subsequent  invalidation  of  certain analytical data used  for  the  selection
       of the remedy included in the  Record of Decision.
                                             -5-

-------
                                                                          SCHEDULE A
                   NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                     MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                    FULTON TERMINALS SITE

                     Statement of Costs Claimed, Accepted and Questioned
                     For the Period December 31, 1984 to March 31,  1989
                                        INTERIM AUDIT
                                EPA Eligible Costs
                              Claimed       Accepted
                               	         (A)
                               Questioned Costs
Personnel costs
Travel
Equipment and supplies
Contractual services

Total
$ 84,955
   1,855
     946
 306.413
$ 46,134
   1,312
     946
 284,786

$333.178
Ineligible
   (B)

  $
Unsupported    Note
    (C)        	

  $38,821        1
      543        2

   21,627        3
       (A)  This amount should  not  be construed as being  the  final  determination of
            the Federal share of accepted costs.  The  amount may  vary  depending upon
            the resolution by EPA of the questioned costs of $60,991.

       (B)  Ineligible cost:
            A  proposed or  claimed  amount  which  should  not  be  reimbursed  by  the
            Government  because  the  cost is  in violation of  a  provision  of  law,
            regulation, contract, grant, cooperative agreement, or other agreement or
            document governing the expenditure of funds.

       (C)  Unsupported cost:
            A proposed or claimed amount that  cannot be  given  unqualified acceptance
            by  the auditor  because  at the  time  of  the audit,  the  cost  is  not
            supported  by  adequate  documentation and/or has  not been  approved  by
            responsible program officials.
                                             -6-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                             FULTON TERMINALS SITE

                              NOTES TO SCHEDULE A

                                 INTERIM AUDIT
Note 1.   Personnel Costs
          We question $38,821, being the costs claimed in excess
          of the grant budget, as unsupported until an amendment
          of the grant to provide for the excess. The excess is
          calculated as follows:

          Total costs claimed           $ 84,955
          Current grant amount           (46,134)
          Excess claimed over grant
Note 2.   Travel
          We question $543, being the costs claimed in excess
          of the grant budget, as unsupported until an amendment
          of the grant to provide for the excess.  The excess is
          calculated as follows:
          Total costs claimed           $ 1,855
          Current grant amount           (1,312)
          Excess claimed over grant     $   543

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                             FULTON TERMINALS SITE

                              NOTES TO SCHEDULE A

                                 INTERIM AUDIT
Note 3.   Contractual Services
               We question $21,627, being the costs claimed for
               laboratory services for the project obtained by
               the grantee's prime contractor (URS, Inc.) from
               a sub-contractor, NYTEST, as unsupported for
               non-availability of a written sub-agreement
               between URS, Inc. and NYTEST in compliance with
               40 CFR 33.005, 33.250 and 33.1015.  A written
               sub-agreement is required to support any contract
               or sub-contract in excess of $10,000 in accordance
               with the aforementioned provisions of 40 CFR Part
               33.  We therefore question $21,627 as unsupported
               costs until the grantee achieves compliance with
               the requirements.
               The claimed costs of $21,627 are calculated as follows:

               Costs for analysis of samples based on a
               written quotation of prices (not a
               sub-agreement) submitted by NYTEST to URS    $26,510

               Deduction for resampling costs
               incurred by URS                                4,883
               Net costs claimed

               Analytical results of the first sampling had failed
               to pass quality assurance/quality control (QA/QC)
               review, and the sampling process had to be done
               twice. However, NYTEST did not bill URS for
               resampling services.
                                      -8-

-------
                                                                        SCHEDULE B
                       NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                    MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                        CLOTHIER SITE

                     Statement of Costs Claimed, Accepted and Questioned
                     For the Period December 31, 1984 to March 31, 1989
                                        INTERIM AUDIT
                                EPA Eligible Costs          Questioned Costs	
                              Claimed       Accepted    Ineligible    Unsupported    Note
                              	         (A)          (B)            (C)         	

Personnel costs              $106,794       $ 69,979      $            $ 36,815        1
Travel                          4,728            914           -          3,814        2
Equipment and supplies          4,606          1,500           -          3,106        3
Contractual services          606,941        492,667      	-        114,274        4

Total                        $723.069       $565.060
       (A)  This amount  should  not  be construed as being  the  final  determination of
            the Federal share of accepted  costs.  The  amount may vary depending upon
            the resolution by EPA of the questioned costs of $158,009.

       (B)  Ineligible cost:
            A  proposed or  claimed  amount which  should  not  be  reimbursed by  the
            Government  because  the  cost  is  in violation of  a  provision  of  law,
            regulation, contract, grant, cooperative agreement, or other agreement or
            document governing the expenditure of funds.

       (C)  Unsupported cost:
            A proposed or claimed amount  that  cannot be  given  unqualified acceptance
            by  the  auditor  because  at  the  time  of  the audit,  the  cost is  not
            supported  by adequate  documentation and/or has  not been approved  by
            responsible program officials.
                                             -9-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                 CLOTHIER SITE

                              NOTES TO SCHEDULE B

                                 INTERIM AUDIT
Note 1.   Personnel Costs

          (a)  We question $759 as unsupported because the
               grantee could not make available to us adequate
               supporting documentation such as the employee
               time sheets to substantiate the costs.  The
               required supporting documentation was not
               available according to the grantee.  We therefore
               question $759 as unsupported for lack of
               supporting documentation as required per
               40 CFR 30.500.

          (b)  We question $36,056, being the costs claimed
               in excess of the grant budget, as unsupported
               until an amendment of the grant to provide for the
               excess.  The excess is calculated as follows:
                    $   759
               Total costs claimed
               Costs questioned in Note 1 (a)

               Current grant amount
               Excess claimed over grant
          Total costs questioned as unsupported
$ 106,794
 (    759)
$ 106,035
 ( 69.979)
                                                                       36,056
Note 2.   Travel

          We question $3,814, being the costs claimed in excess
          of the grant budget, as unsupported until an
          amendment of the grant to provide for the excess.
          The excess is calculated as follows:
          Total costs claimed
          Current grant amount
          Excess claimed over grant
$ 4,728
 (  914)
                                                                      $ 3.814
                                       -10-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                 CLOTHIER SITE

                              NOTES TO SCHEDULE B

                                 INTERIM AUDIT
Note 3.   Equipment and Supplies

          We question $3,106, being the costs claimed in excess
          of the grant budget, as unsupported until the
          amendment of the grant to provide for the excess.
          The excess is calculated as follows:

          Total costs claimed                     $ 4,606
          Current grant amount                     (1,500)
          Excess claimed over grant               $ 3.106

                                                                      $ 3.106

Note 4.   Contractual Services

          (a)  We question $21,955, being the costs claimed
               for laboratory services for the project
               obtained by the grantee's prime contractor
               (URS, Inc.) from a sub-contractor, NYTEST, as
               unsupported for non-availability of a written
               sub-agreement between URS, Inc. and NYTEST
               in compliance with 40 CFR 33.005, 33.250 and
               33.1015.

               A written sub-agreement is required to support
               any contract or sub-contract in excess of $10,000
               in accordance with the above mentioned provisions
               of 40.CFR Part 33.  We therefore question $21,955
               as unsupported costs until the grantee achieves
               compliance with the requirements.                      $ 21,955

               The claimed costs of $21,955 are calculated as
               follows:

               Costs for analysis of samples based on a
               written quotation of prices (not a sub-
               agreement) submitted by NYTEST to URS        $26,910

               Deduction for resampling costs incurred
               by URS                                         4,955

               Net costs claimed

               Analytical results of the first sampling had failed
               to pass QA/QC review, and the sampling process had
               to be done twice.  However, NYTEST did not bill
               URS for resampling services.
                                     -11-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                 CLOTHIER SITE

                              NOTES TO SCHEDULE B

                                 INTERIM AUDIT
Note 4.   Contractual Services (continued)
          (b)  We question the overrun of $92,319 on a
               sub-contract between the grantee's prime
               contractor (URS, Inc.) and Environmental Resource
               Associates, Ltd. (ERA) for sampling and waste
               characterization services as unsupported costs
               for lack of a supplemental agreement to revise
               the original contract amount.  The increase in
               the costs was due to the excess of the number
               of waste drums actually staged over what was
               previously estimated, and additional road
               stabilization and equipment costs incurred
               because of adverse weather conditions at
               the Clothier site.

               The contract agreement between URS and ERA
               provides that the maximum amount payable for
               Clothier Site under the signed agreement is
               $108,846.  The costs actually incurred and
               claimed by the grantee are $201,165.  According
               to the prime contractor of the grantee, no
               written sub-agreement was prepared to increase
               the original limit per the contract.

               A written sub-agreement is required to support
               any contract or sub-contract in excess of
               $10,000 pursuant to 40 CFR 33.005, 33.250 and
               33.1015,  Accordingly, we question the
               unsupported overrun of $92,319, until the grantee
               submits the required supplemental agreement.

               Total costs questioned as unsupported
92,319
                                     -12-

-------
                                                                          SCHEDULE C
                   NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                     MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                                    VOLNEY LANDFILL SITE

                     Statement of Costs Claimed, Accepted and Questioned
                     For the Period December 31, 1984 to March 31, 1989
                                        INTERIM AUDIT
                                EPA Eligible Costs          Questioned Costs	
                              Claimed       Accepted    Ineligible    Unsupported    Note
                              	         (A)          (B)            (C)         	

Personnel costs              $ 79,810       $ 73,146     $ 4,551         $2,113        1
Travel                          1,633            914         697             22        2
Equipment and supplies          1,244          1,244
Contractual services          409.247        342.598      66,649         	-        3

Total                        $491.934       $417.902     $71.897         $2.135


       (A)  This amount should  not  be construed as being  the  final  determination of
            the Federal share of accepted costs.  The  amount  may  vary depending upon
            the resolution by EPA of the questioned costs of $74,032.

       (B)  Ineligible cost:
            A  proposed or  claimed  amount  which  should  not  be  reimbursed  by  the
            Government  because  the  cost is  in  violation of  a  provision of  law,
            regulation, contract, grant, cooperative agreement, or other agreement or
            document governing the expenditure of funds.

       (C)  Unsupported cost:
            A proposed or claimed amount  that  cannot be given unqualified acceptance
            by  the auditor because  at  the  time  of   the audit,  the  cost  is  not
            supported  by  adequate  documentation and/or has  not been  approved  by
            responsible program officials.
                                            -13-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                             VOLNEY LANDFILL SITE

                              NOTES TO SCHEDULE C

                                 INTERIM AUDIT
Note 1.   Personnel Costs
          (a) (i)   We question $3,036, being the personnel services
                    costs for various matters associated with the
                    invalidated analytical data of Volney Landfill,
                    as ineligible for Federal participation.

                    The results of the analytical data used as
                    a basis for selection of the remedy contained in
                    the Record of Decision signed on July 31, 1987
                    was discovered, subsequently in early 1988, to be
                    unacceptable.  It was also noticed that the
                    results of the said analytical data were accepted
                    by NYSDEC without subjecting them to a QA/QC review as
                    required under General Provision M.3 of the
                    Cooperative Agreement and 40 CFR 30.503(e).  EPA
                    re-evaluated the selected remedy by re-sampling
                    the ground water, surface water and sediments
                    from the Volney Landfill through its own
                    contractor.

                    The above mentioned additional costs were
                    incurred as a result of non-compliance with the
                    requirements of the cooperative agreement, and are
                    therefore ineligible for Federal participation.     $ 3,036

               (ii) We question $1,515, being the costs incurred
                    after the expiration date of December 31, 1988
                    of the grant project and budget period, as
                    ineligible.  We question these costs as claimed
                    outside the scope of this cooperative agreement
                    pursuant to Award Condition Number 8 of the
                    Cooperative Agreement Amendment Number 3.
                    The total ineligible costs questioned

          (b)   (i)  We question $903 as unsupported because the
                    grantee could not make available to us
                    adequate supporting documentation such as
                    the employee time sheets to substantiate
                    the costs.

                    The required supporting documentation was
                    not available according to the grantee.
                    We therefore question $903 as unsupported
                    for lack of supporting documentation as
                    required per 40 CFR 30.500.
  1,515

$ 4.551
  903
                                     -14-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                             VOLNEY LANDFILL SITE

                              NOTES TO SCHEDULE C
                                 INTERIM AUDIT
Note 1.   Personnel Costs (continued)
          ii)  We question $1,210, being the costs claimed in
               excess of the grant budget, as unsupported costs
               until an amendment of the grant to provide for
               the excess.  The excess is calculated as follows:

               Total costs claimed                      $ 79,810
               Ineligible costs questioned               ( 4,551)
               Unsupported costs costs questioned
                in Note 1 (b) i)                         (   903)

                                                        $ 74,356
               Current grant amount                      (73,146)
               Excess claimed over grant                $  1.210.
                                                                       1.210

               Total unsupported costs questioned                    $ 2.113

Note 2.   Travel

          (a)  We question $697, being the costs incurred
               after the expiration date of December 31, 1988
               of the grant project and budget period, as
               ineligible.  We question these costs as claimed
               outside the scope of this cooperative agreement
               pursuant to Award Condition Number 8 of the
               Cooperative Agreement Amendment Number 3.             $   697

          (b)  We question $22, being the costs claimed in
               excess of the grant budget, as unsupported
               until an amendment of the grant to provide for
               the excess.  The excess is calculated as
               follows:
               Total costs claimed               $  1,633
               Ineligible costs questioned         (  697)
                                                 $   936
               Current grant amount                (  914)
               Excess claimed over grant         $    22
                                      -15-

-------
Note 3.   Contractual Services
          (a)  We question $48,312, being the costs billed by the
               prime contractor, URS, Inc., for laboratory services
               provided by a sub-contractor, NYTEST, as ineligible
               for Federal participation since the results of the
               analytical data were invalidated following a
               QA/QC review required under General Provision M.3 of
               the Cooperative Agreement and 40 CFR 30.503(c).
               URS, Inc. has agreed to give NYSDEC credit for this
               amount against additional costs not yet billed to
               NYSDEC.  (see Note 4 to Exhibit A-l)                      $48,312

          (b)  We question $18,337, being the costs billed by
               the prime contractor, URS, Inc., for various services
               associated with sampling of ground water, surface
               water and sediments, as ineligible for Federal
               participation since the analytical results of the
               sampling were invalidated following a QA/QC
               review required under General Provision M.3
               of the Cooperative Agreement and 40 CFR 30.503(c).

                                                                         18.337

               The total ineligible costs questioned                    $66.649
                                     -16-

-------
                                                              EXHIBIT A-l
        NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
          MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
        (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
   Statement of Costs Incurred and Determined Eligible or Ineligible
             For the Period April 1, 1989 to June 30, 1989

                             INTERIM AUDIT
                           Incurred  Eligible  Ineligible  Unsupported  Note
    FULTON TERMINALS

    Personnel costs
    Travel
    Equipment and supplies
    Contractual services
    Total

    CLOTHIER SITE

    Personnel costs
    Travel
    Equipment and supplies
    Contractual services
    Total

    VOLNEY LANDFILL
                        $ 5,623   $
                        $ 3,654   $
                            $ 7,749   $
Personnel costs
Travel
Equipment and supplies
Contractual services    	-
Total                   $ 7.749
$ 2,194
                                            $ 2.194
$ 7,749
                                                $ 7.7*9
             $ 5,623
                                                         $ 5.623
$ 1,460
1,2
             3


             4
Notes:  A.  The above costs are not an integral part of Exhibit A
            as they have not yet been claimed by NYSDEC for
            Federal participation.

        B.  No information was available to us (as of the date of
            our field audit) of any project costs incurred after
            June 30, 1989.
                                -17-

-------
                NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                  MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                             NOTES TO EXHIBIT A-l

                                 INTERIM AUDIT


Note 1.   Personnel Costs (Fulton Terminals and Clothier Sites)

          Since the grant budget for personnel costs for each site
          has been exceeded as of March 31, 1989 per Schedules A, B
          and C, all personnel costs incurred after March 31, 1989
          should be questioned as unsupported costs pending
          appropriate amendment of the grant budget to include
          them.


Note 2.  Personnel Costs of Clothier Site

         $2,194 of the total incurred was for services associated
         with the proposed remedial design, and therefore, outside
         the scope of the present Cooperative Agreement under audit.

Note 3.  Personnel Costs of Volney Landfill

         Costs incurred after the expiration of the project and
         budget period per the grant are ineligible for Federal
         participation.

Note 4.  Contractual Services Costs (All Sites)

         NYSDEC's prime contractor, URS Inc., has not yet billed
         for any services rendered beyond October 30, 1987.

         The unpaid retainage on the costs billed is as follows:
         Fulton Terminals
         Clothier Site
         Volney Landfill

         Total
$ 8,494
  8,613
 10,068
         As the retainage is not yet paid, NYSDEC has not claimed
         it for Federal participation.  $965 of the total retainage
         of $10,068  for Volney Landfill is for the costs associated
         with invalidated Volney sampling results, and ineligible
         for Federal participation.
                                     -18-

-------
                NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                  MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                             NOTES TO EXHIBIT A-l

                                 INTERIM AUDIT



Note 4.  Contractual Services Costs (All Sites) (continued)

         The following is a list of the costs incurred by
         URS, Inc. but not yet billed to the grantee as of
         the date of our field audit.  These costs are not
         included in the costs claimed per Schedule A and B:


         FULTON TERMINALS SITE
         CLP data audit
         Health risk assessment
 7,192      This  amount  has not  yet
            been  billed  by URS,  Inc.
            and covers the audit done
            to ensure the results of
            re-sampling  of Fulton data
            to be quality assured after
            the previous sampling
            results were determined to
            be unacceptable.  NYSDEC
            has informed us that they
            would not claim these costs
            for Federal  reimbursement.

14,101      Costs associated with this
            service were billed  but were
            rejected by  NYSDEC as they
            exceeded the contract limit.
            The contractor claims that
            these additional services
            are due to additional
            requirements under SARA,
            which were not included
            in the scope of the  previous
            contract. NYSDEC was unable
            to furnish us a detailed
            analysis of  work performed
            by URS, Inc.
                                        -19-

-------
               NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                 MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
               (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)

                                NOTES TO EXHIBIT A-l

                                    INTERIM AUDIT
NOTES 4. Contractual Services Costs (All Sites) (continued)
         Report revisions
  24,213      The contractor  claims that
              revisions to the RI/FS
              report were necessary to
              include the results  of
              additional soil sampling,
              which was not included in
              the original contract.
              NYSDEC was unable to furnish
              us an analysis  of $24,213 by
              specific item revised by URS
              for our verification.
         Total
         CLOTHIER SITE
         Health risk assessment
$ 45,506
  11,927
         Report revisions
  41,344
The contractor claims that
these additional services
are due to additional
requirements under SARA,
which were not included in
the scope of the previous
contract.  NYSDEC was unable
to furnish us a detailed
analysis of work performed
by URS, Inc.

The contractor claims that
revisions to the RI/FS
report was necessary to
include the results of
additional soil sampling,
which was not included in
the original contract.  Also
the report was re-written
to conform to the new
guidelines of SARA. NYSDEC
was unable to furnish us an
analysis of $41,344 by
specific item as revised by
URS for our verification.
                                        -20-

-------
                NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
                  MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
                (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                             NOTES TO EXHIBIT A-l

                                 INTERIM AUDIT
Note 4.  Contractual Services Costs (All Sites) (continued)
         Total
$ 53,271
         GRAND TOTAL

         URS, Inc. has also agreed to give NYSDEC a credit of $48,312 for costs
         associated with invalid sampling results for Volney Landfill Site.
         See Note 3 (a) to Schedule C.
                                        -21-

-------
                                                                EXHIBIT A-2
       NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
         MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
       (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                       Background of the Sites

                            INTERIM AUDIT
Fulton Terminals

The Fulton Terminals Site is a two-acre abandoned former chemical waste
and petroleum  product storage  facility located  in  the City  of  Fulton,
Oswego County, New York.  From  1972  to 1979,  this site was used to store
hazardous wastes.  Wastes were stored in both above-ground and underground
tanks.

In  late  1981,  the   principals  of  Fulton  Terminals,  Inc.  agreed  to
cooperate  with NYSDEC  in a  voluntary cleanup  program.  The  voluntary
cleanup  lasted until  March,  1983,  when  the  principals  were fined  by
NYSDEC for using an unlicensed handler of PCB waste.

Remedial investigation and feasibility  study  (RI/FS)  at Fulton Terminals
were  commenced  in  early  1985.   Timely  completion  of  RI/FS work  was
delayed  due  to  certain  quality  assurance problems  associated with  the
technical  data  collected  from  the  site,  and  RI/FS  reports  requiring
revision because of  the  new requirements under  SARA.   The initial RI/FS
report prepared by NYSDEC's contractor was not  acceptable to EPA, and as
a  result,  EPA prepared  a supplemental  RI/FS  report  through  its  own
contractor.  A Record of Decision is  planned  to be issued  in the near
future.
Clothier

The Clothier site is located in the Town of Granby, Oswego County, New
York.  The site is bounded on the West by Ox Creek.

This site was used as disposal site for wastes from a pollution abatement
services  facility.   Inspection of  the  site revealed that  the deposited
drums of waste were in poor condition and leaking.  NYSDEC sued the owner
of the  site  in 1976 for  operating an illegal landfill.  As  a result of
this suit, a temporary operating  permit was  given to the  owner,  and he
was ordered  to clean up  the  site within one year.  Work was done in 1977
to cover  the drums  dumped on the  site.  This  action  caused the drums to
rupture.  The  owner  was  cited for  failing  to  meet  the  conditions of the
lawsuit.

The New York State Department of Health analyzed one soil and two surface
water samples  from  the  site.   The soil sample was  found to contain PCB.
PCB and other  organic compounds  were  not detected from the surface water
samples.
                               -22-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
            (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
                            Background of the Sites

                                 INTERIM AUDIT


2.   Clothier (continued)
     RI/FS at Clothier  site  were commenced in early  1985.   Timely completion
     of  RI/FS work  was delayed due  to certain  quality assurance  problems
     associated with  the technical  data collected from  the site, and  RI/FS
     reports  requiring  revision because of  the  new requirements  under  SARA.
     The  initial  RI/FS  report  prepared  by  NYSDEC's  contractor  was  not
     acceptable to  EPA, and  as a  result,  EPA  (through  its own  contractor)
     revised  and   supplemented  the  RI/FS   report   prepared  by   NYSDEC's
     contractor.  NYSDEC's  contractor  also revised  the  previously  prepared
     RI/FS report to  meet the  acceptable  format.   EPA released both reports
     for public review.  A Record of Decision was signed on December 28,  1988.

3.   Volney Landfill
     Volney Landfill, also known as the Oswego Valley Sanitary Landfill,  is
     located  on the west  side  of  Silk Road  in the Town  of Volney,  Oswego
     County, New York.   The  landfill  is  situated on the site of  a  former sand
     and  gravel pit operated  by the  Oswego  County Highway  Department.   The
     landfill site covers approximately 58 acres.
     Oswego County acquired  the  Volney Landfill  between 1975 and 1976.   Prior
     to  that time,  it  was  privately  owned  and  served  the communities  of
     Granby, Volney and Fulton.  The  landfill was  started in 1968  to  handle
     municipal  refuse  only.    Pollution  Abatement   Services  of  Oswego  dumped
     approximately  8,000 barrels of  waste, said  to  be  sludge,  at  the  site
     during  the 1970's  under  an  agreement with  the  previous  operator.   A
     number of barrels leaked during disposal, and  the workers of the landfill
     suspected that some barrels contained industrial chemicals.
     Subsequently,  concern   arose  that  leachate  from the   landfill  may  be
     contaminating the ground and surface waters with the  hazardous chemicals.
     In  1979,  NYSDEC  and Oswego County closed  the  landfill and  developed  a
     program  for  ground water  monitoring  and leachate treatment.   Hazardous
     organic  chemicals  were  detected  from surface  and ground  water samples
     collected from the  landfill and its immediate  vicinity.

     RI/FS at  Volney Landfill  site  were commenced  in early  1985.   NYSDEC's
     contractor completed  the  RI/FS  report  in  May,  1987,   and  a Record  of
     Decision  (ROD)  was  signed on  July 31,  1987.   In  early  1988, it  was
     noticed that NYSDEC had not performed a quality assurance/quality control
     review  of  the  analytical  data  used  in the  RI/FS  report.   A  quality
     assurance/quality control  review  of the data  was  then performed, and the
     results  indicated  the  data  (analytical  results of  the  ground  water
     samples) were  invalid.   This  raised  a  doubt on the  validity of  the
     remedial measure  selected  in  the  ROD.   To  rectify  the situation,  EPA
     (through its own contractor) re-evaluated the  remedy selected in the ROD
     by re-sampling the ground water, surface water and sediments.
                                     -23-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V002437-84
            (FULTON TERMINALS,  CLOTHIER AND VOLNEY LANDFILL SITES)
                            Background of the Sites

                                 INTERIM AUDIT
3.   Volney Landfill (continued)

     Based upon  the results  of the  re-sampling and  re-evaluation of  RI/FS
     report, EPA has  concluded that the remedy  selected  in the ROD does  not
     require significant alteration.
                                     -24-

-------
                                                                     EXHIBIT B
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              MULTI-SITE COOPERATIVE AGREEMENT NUMBER V 002437-84
            (FULTON TERMINALS, CLOTHIER AND VOLNEY LANDFILL SITES)
           Comments on Compliance, Performance and Internal Controls

                                 INTERIM AUDIT
As a part  of  our examination,  we reviewed and tested  the  Grantee's  system of
internal accounting controls to the extent we considered necessary to evaluate
the  system  as  required  by   generally  accepted  auditing  standards.   This
evaluation  established  a  basis  for  reliance  on  the  Grantee's  accounting
control system in determining  the nature,  timing  and extent  of other auditing
procedures necessary for expressing an opinion on the financial reports.

The objective of internal accounting control is to provide reasonable, but not
absolute,  assurance  that  the  (1)  assets  are safeguarded against  loss  from
unauthorized  use or disposition  and  (2)  financial  records  are  reliable  for
preparing financial statements and maintaining accountability for assets.   The
concept  of reasonable  assurance recognizes  that  the cost  of  a  system  of
internal accounting controls  should not exceed the  benefits derived and  also
recognizes that  the evaluation of these factors necessarily requires estimates
and judgements by management.

There are  inherent  limitations that  should  be recognized in  considering  the
potential effectiveness of any system of internal accounting controls.  In the
performance of most control procedures, errors can result from misunderstanding
of  instructions,  mistakes  of  judgement,  carelessness  or  other  personal
factors.  Control procedures  whose  effectiveness depends  upon segregation of
duties can be circumvented by collusion.  Similarly, control procedures can be
circumvented intentionally by management, either with respect to the execution
and recording  of transactions  or with respect to  the  estimates and judgments
required in the  preparation of financial  statements.  Further,  projection of
any evaluation of internal  accounting  control  to  future  periods is subject to
the risks  that  the  procedures may become inadequate because of  changes  in
conditions  and  that  the  degree  of  compliance  with  the  procedures   may
deteriorate.

The EPA  "Audit Guide for  CERCLA Cooperative Agreement, issued  on August  13,
1985,  requires  a  review  and evaluation  of  the  adequacy  of the  controls
exercised  by   the   State  through  its   financial   management,  accounting,
procurement,  contract  administration,   and  property  management  systems  to
provide assurance that  costs  claimed are  reasonable,  allowable and allocable
to  the  sponsored  project.   We  understand  that   EPA  considers  procedures
conforming to the criteria in its audit guide to be adequate for EPA purposes.
Procedures  that  are  not in  conformity with  the audit  guide  indicate  some
inadequacy for EPA purposes.  Based on this understanding and on our study, we
believe that the State's procedures were adequate for EPA purposes.
                                     -25-

-------
            NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
              Multi-Site Cooperative Agreement Number V002437-84
            (Fulton Terminals, Clothier and Volney Landfill Sites)
                                 INTERIM AUDIT
The contents of the draft  audit  report  were discussed with the grantee during
a preliminary exit conference  held on November 10, 1989  in  Albany,  New York.
The grantee responded  in  a letter dated January 19,  1990, a copy of which is
attached.  We offered to hold a final exit conference but the grantee believed
there was  no need  therefor since  mutual agreement  has  been reached  on  all
significant  aspects   of  the   audit.The   following  summarizes  the  grantee's
comments with our response to their comments.

                             FULTON TERMINAL SITES

Personnel Costs (Note 1 to Schedule A)

We questioned $38,821, being the  costs  claimed  in  excess  of  the  grant budget,
as  unsupported.   Of  these questioned  costs  $1,281  was  incurred  after  the
expiration date of  December 31,  1988 of  the grant budget and project period
per Grant Amendment Number 2.
Grantee Comment:
Auditor Response:
The grantee states that USEPA awarded an amendment to this
grant on September 9, 1989, which extended the Fulton
Terminals budget period to March 31, 1990.  However, since
the budget for personnel costs was not increased, they
accept the auditor's finding of the excess cost ($38,821)
and request that this amount be set aside until such time
as an amendment is awarded to increase the budget for
personnel costs.

We continue to question $38,821 as unsupported costs until
EPA amends the grant to provide for these additional
costs.
Travel  (Note 2 to Schedule A)

We  questioned $769  as  unsupported costs  as  they  were  incurred after  the
expiration  date  of  December 31,  1988  of the grant budget  and project period
per  the Grant  Amendment Number 2.  $543 of  the  questioned  costs  is in excess
of the  grant budget for  travel costs.
Grantee Comment:
Auditor Response:
The grantee states that the budget period for this portion
of the grant was extended to March 31, 1990.  However, the
budget was not increased.  They, therefore, request
reinstatement of travel costs in the amount of $226 up to
the current budget, and set aside the auditor's finding of
$543 in costs exceeding the grant budget until such
time as an amendment is awarded to increase the budget for
travel costs.

We now accept $226 in our audit report, and continue to
question the balance of $543 (the costs claimed in excess
of the budget) as unsupported until the grant budget is
amended by EPA to provide for the excess.
                                     -26-

-------
Contractural Services (Note 3 to Schedule A)

(a)  We questioned $21,627, being the costs for laboratory services for the
     project obtained by the grantee's prime contractor (URS, Inc.) from
     NYTEST, as unsupported for lack of a written sub-agreement between URS,
     Inc. and NYTEST in compliance with 40 CFR 33.005, 33.250 and 33.1015.

Grantee Comment:    The grantee states that the prime contractor, URS
                    Consultants has submitted a sub-agreement with NYTEST for
                    the project engineer's review.  It is, therefore,
                    requested that $21,627 be set aside pending the project
                    engineers review of the sub-agreement.

Auditor Response:   We continue to question $21, 627 as unsupported until the
                    grantee submits the required written sub-agreement.

(b)  We questioned $18,235 paid to URS, Inc. for removal of waste samples,
     drums and cuttings, which tasks were outside the scope of the contract
     with URS, Inc. at the time of our field audit.

Grantee Comments:   The grantee states that Supplemental Agreement No. 3 dated
                    June 19, 1989 (approved by the State Comptroller's Office
                    on November 8, 1989) with URS, Inc. increases the scope of
                    the contract to include the removal of waste samples,
                    drums and drill cuttings.  Based on that approval, it is
                    requested that the costs be accepted.  A copy of the
                    approved contract is attached.

Auditor Response:   We have now reinstated $18,235 previously questioned as
                    unsupported per the draft audit report.

                                 CLOTHIER SITE

Personnel Costs  (Note 1 to Schedule B)

(a)  We questioned $759 as unsupported for lack of adequate supporting
     documentation, such as the employee time sheets, to substantiate the
     costs.

Grantee Comment:    The grantee states that since $759 was based on accruals
                    rather than time records, the auditor's finding is
                    accepted.

Auditor Response:   Our finding stands affirmed.

(b)  We questioned $36,056, being the costs claimed in excess of the grant
     budget, as unsupported.  Of these questioned costs $5,014 was incurred
     after the expiration date of December 31, 1988 of the grant budget and
     project period per Grant Amendment Number 2.

Grantee Comment:    The grantee states that USEPA awarded an amendment to this
                    grant on September 9, 1989, which extended the budget
                    period to March 31, 1990.  However, since the budget for
                    personnel costs was not increased, the grantee accepts the
                    auditor's finding of the excess cost  ($36,056) and
                    requests that this amount be set aside until such time as
                    an amendment is awarded to increase the budget for
                    personnel costs.

                                     -27-

-------
Personnel Costs (Note 1 to Schedule B) (Continued)
Auditor Response:
                    We continue to question $36,056 as unsupported costs until
                    EPA amends the grant to allow these additional costs.
Travel (Note 2 to Schedule B)

We  questioned $3,814  as unsupported  costs  claimed  in  excess  of  the grant
budget.  Of  these questioned  costs  $2,405 was incurred  after the expiration
date  of  December 31,  1988  of the grant  budget and project  period  per Grant
Amendment Number 2.
Grantee Comment:
Auditor Response:
                    The grantee states that the budget period was extended by
                    USEPA to March 31, 1990.  However, since the travel budget
                    was not increased, the grantee accepts the auditor's
                    findings of excess costs ($3,814) and requests that this
                    amount be set aside until such time as an amendment is
                    awarded to increase the budget for travel costs.

                    We continue to question $3,814 as unsupported costs until
                    EPA amends the grant to allow these additional costs.
Equipment And Supplies  (Note 3 to Schedule B)

We questioned $3,106 as unsupported costs since they were claimed in excess of
the grant budget.
Grantee Comment:
                    The grantee accepts the auditor's findings of excess costs
                    and requests that $3,106 be set aside until such time as
                    an amendment is awarded to increase the budget for
                    equipment and supplies.

Auditor Response:   We continue to question $3,106 as unsupported costs until
                    EPA amends the grant to allow these additional costs.

Contractual Services (Note 4 to Schedule B)

(a)  We questioned $21,955, being the costs for laboratory services for the
     project obtained by the grantee's prime contractor (URS, Inc.) from
     NYTEST, as unsupported for lack of a written sub-agreement between URS,
     Inc. and NYTEST in compliance with 40 CFR 33.005, 33.250 and 33.1015.
Grantee Comment:
Auditor Response:
                    The grantee states that the prime contractor, URS
                    Consultants has submitted a sub-agreement with NYTEST for
                    the project engineer's review.  It is, therefore,
                    requested that $21,955 be set aside pending the project
                    engineer's review of the sub-agreement.

                    We continue to question $21,955 as unsupported until the
                    grantee submits the required written sub-agreement.
                                     -28-

-------
Contractual Service (Note 4 to Schedule B) (Continued)

(b)  We questioned an overrun of $92,319 on a sub-contract between the
     grantee's prime contractor (URS, Inc.) and Environmental Resource
     associates. Ltd. (ERA) as unsupported costs for lack of a supplemental
     agreement to revise the original contract amount.
Grantee Comment:
Auditor Response;
The grantee states that URS has submitted a supplemental
agreement with ERA for the project engineer's review and
approval.  It is, therefore, requested that the costs be
set aside pending the project engineer's review of the
sub-agreement.

We continue to question $92,319 as unsupported until the
grantee submits the required supplemental agreement
between URS, Inc. and ERA.
(c)  We questioned $24,773 paid to URS, Inc. for removal of waste samples,
     drums and cuttings ($19,638) and soil sampling ($5,135), which tasks were
     outside the scope of the contract with URS, Inc. at the time of our field
     audit.
Grantee Comment:
Auditor Response;
The grantee states that Supplemental Agreement No. 3 dated
June 29, 1989 (approved by the State Comptroller's Office
on November 8, 1989) with URS, Inc. increases the scope of
the contract to include the removal of waste samples,
drums, drill cuttings and soil sampling.  It is,
therefore, requested that the costs be accepted now.

We have now reinstated $24,773 previously questioned as
unsupported per the draft audit report.
                             VOLNEY LANDFILL SITE

Personnel Costs (Note 1 to Schedule C)

(a)  We questioned $3,036, being the personnel costs associated with the
     invalidated analytical data of Volney Landfill, as ineligible.

Grantee Comment:    The grantee accepts the auditor's findings.

Auditor Response:   Our findings stand affirmed.

(b) (i)   We questioned $903 as unsupported for lack of adequate supporting
          documentation, such as the employee time sheets, to substantiate the
          costs.

Grantee Comment:    The grantee accepts the auditor's findings since $903 was
                    based on accruals rather than time records.

Auditor Response:   Our findings stand affirmed.
                                     -29-

-------
Personnel Costs (Note 1 to Schedule C) (Continued)
     (ii) We questioned $2,725, being the costs claimed in excess of the grant
          budget, as unsupported.  Of these questioned costs $1,515 was
          incurred after the expiration date of December 31, 1988 of the grant
          budget and project period per the grant.
Grantee Comment:
Auditor Response:
The grantee states that since the budget period for this
portion of the grant was not extended, the auditor's
findings of the excess costs in the amount of $1,515 are
accepted.  However, it is requested that the remainder,
$1,210, be set aside until such time as an amendment is
awarded to increase the budget for personnel costs.

We have reclassified $1,515 from unsupported questioned
costs to ineligible questioned costs.  As for the remainder
of $1,210, we continue to question it as unsupported costs
until EPA amends the grant to allow it.
Travel  (Note 2 to Schedule C)

We questioned $719,  being the costs claimed in excess of the grant budget, as
unsupported.  Of these questioned costs $697 was incurred after the expiration
date  of December  31, 1988  of the  grant  budget and  project period  per the
grant.
Grantee Comment:
Auditor Response:
The grantee accepts the auditor's findings of excess costs
in the amount of $697 since the budget period for this
portion of the grant was not extended.  However, it is
requested that the remainder of $22 be set aside until
such time as an amendment is awarded to increase the
travel costs budget.

We have reclassified $697 from unsupported questioned
costs to ineligible questioned costs.  As for the
remainder of $22, we continue to question it as
unsupported costs until EPA amends the grant to allow it.
Contractual Services  (Note 3 to Schedule C)

(a)  We questioned  $48,312, being  the costs billed by the prime contractor,
     URS, Inc.,  for laboratory services provided by a sub-contractor, NYTEST,
     as ineligible  since the results of the analytical data were invalidated
     following a QA/QC review required under General Provision M.3 of the
     Cooperative Agreement and 40  CFR 30.503 (c).

Grantee Comment:    The grantee accepts the auditor's findings.

Auditor Response:   Our findings stand affirmed.
                                      -30-

-------
Contractual Services (Note 3 to Schedule C) (Continued)
(b)  We questioned $18,337, being the costs billed by the prime contractor,
     URS, Inc., for sampling of ground water, surface water and sediments, as
     ineligible since the analytical results of the sampling were invalidated
     following a QA/QC review required under General Provision M.3 of the
     Cooperative Agreement and 40 CFR 30.503 (c).

Grantee Comment:    The grantee accepts the auditor's findings.

Auditor Response:   Our findings stand affirmed.

(c)  We questioned as unsupported $3,991 ($4,201 less 5% retainage) paid to
     URS, Inc., for health risk assessment services, which were not within the
     scope of the contract with URS, Inc.
Grantee Comment:
The grantee states that Supplemental Agreement No.  3 dated
June 29, 1989 (approved by the State Comptroller's  Office
on November 8, 1989) with URS, Inc. increases the scope of
the contract to include the said services.  It is,
therefore, requested that $3,991 be accepted.
Auditor Response:   We have now accepted the costs in our audit report,
                                     -31-

-------
GRANTEE COMMENTS

-------
New York State Department of Environmental Conservation
50 Wolf Road, Albany, N»w York 12233
                                                                        Thomas C. Jorilng
                                                                        Commissioner
                                                  January 19, 1990
     Mr. Paul D. McKechnie
     Divisional Inspector General for Audit
     U.S. Environmental Protection Agency
     Office of the Inspector General
     Eastern Audit Division
     J.F. Kennedy Federal Building - Room 1911
     Boston, Massachusetts 02203-1911
                                             Re:  Grant No.  V002437-84
                                                 Draft Report No.
                                                 P5BQ9-02-0366
     Dear Mr. McKechnie:
          Enclosed is the response of the New York State Department of Environmental
     Conservation addressing the above referenced draft report on the interim audit
     of the multi-site cooperative agreement for Fulton Terminals, Clothier and
     Volney Landfill Sites.

          Thank you for the opportunity to review and comment on this draft report.

                                                  Sincerely,
                                                  Charles J.  Papa
                                                  Director of Internal Audit
     Enclosure

     cc: Samuel N. Fisher Company, CPA'

     bcc: M. O'Toole
          R. Lynch
          R. Lupe
          D. Norvik
          W. Wilson

-------
           New York State Department of Environmental Conservation
                           Grant No. V002437-84
     Following are the Department of Environmental Conservation's comments on
the draft interim audit for the Fulton Terminals, Clothier and Volney Landfill
Sites.  The comments are presented in the same order as in the draft audit.

Fulton Terminals Site

Note 1.   Personnel Costs - The auditors questioned $38,821 as claimed in
          excess of the grant.  It was also noted that $1,281 of these
          costs were incurred after the expiration date of the budget
          period.  On September 29, 1989 the USEPA awarded an amendment to
          this grant which extended the Fulton Terminals budget period to
          March 31, 1990.  However, since the budget for personnel costs was
          not increased, we accept the auditors' finding of the excess cost
          ($38,821) and request that this amount be set aside until such time
          as an amendment is awarded to increase the budget for personnel
          costs.

Note 2.   Travel - The auditors questioned $769 as being unsupported since
          they were incurred after the expiration of the budget period.
          The auditors also noted that $543 of that amount was in excess of
          the grant budget.  As stated in Note 1 above, the budget period for
          this portion of the grant was extended to March 31, 1990.  However,
          the budget was not increased.  We therefore request reinstatement of
          travel costs in the amount of $226 up to the current budget, and set
          aside the auditors' finding of $543 in costs in excess of the grant
          budget until such time as an amendment is awarded to increase the
          budget for travel costs.

Note 3.   Contractual Services -

          a)   The auditors questioned $21,627 in laboratory costs for NYTEST,
               a subcontractor, because the costs are in excess of $10,000 and
               no subagreement was on file.   On January 9, 1990 the prime
               contractor, URS Consultants submitted a subagreement with
               NYTEST for the project engineer's review.   He therefore request
               that these costs be set aside pending the project engineer's
               review of the subagreement.

          b)   The auditors questioned $18,235 paid to URS, Inc. for tasks
               outside the scope of the contract.  However Supplemental
               Agreement No. 3 dated June 29, 1989 of the URS' New York State
               Contract No. D001173 was approved by the State Comptroller's
               Office on November 8, 1989.  This amendment increases the scope
               of the contract to include the removal of waste samples, drums
               and drill cuttings, which are the tasks the auditors had
               determined to be outside the scope of the contract.  Based on
               that approval we request that the costs be accepted.  A copy of
               the approved contract is attached.

-------
Comments on Draft Interim Audit Report No.
New York State Department of Environmental Conservation
                Grant No. V002437-84
                                                                     (page ^ or  4;
Clothier Site

Note 1. Personnel Costs

          a)   The auditors questioned $759 as unsupported because time sheets
               were not available  to  substantiate the costs.  Since this
               amount was based on accruals rather than time records, we
               accept the auditors' finding.

          b)   The auditors questioned $36,056 in personnel costs claimed as
               being in excess of  the grant budget.  Also, the auditors noted
               that $5,014 of those costs were incurred between January 1 and
               March 31, 1989, after the expiration of the budget period.  On
               September 9, 1989 the USEPA awarded an amendment to this grant
               which extended the  budget period to March 31, 1990.  However
               since the budget for personnel costs was not increased we
               accept the auditors' finding of excess costs ($36,056) and
               request that amount be set aside until such tine as an
               amendment is awarded to increase the budget for personnel
               costs.

Note 2.   Travel - The auditors questioned $3,814 in travel costs as being
          in excess of the grant budget.  The auditors also noted that $2,405
          was incurred between January 1 and March 31, 1989 which was after
          the expiration of the budget period.  As stated in Note 1 b above,
          the budget period was extended to March 31, 1990.  However, since
          the travel budget was not increased, we accept the auditors'
          findings of excess costs ($3,814) and request that amount be set
          aside until such time as an amendment is awarded to increase the
          budget for travel costs.
                                    s

Note 3.   Equipment and Supplies - The auditors questioned $3,106 in
          equipment and supplies1  costs as being in excess of the grant
          budget.  We accept the auditors'  findings of excess costs and
          request that $3,106 be set aside until such time as an amendment is
          awarded to increase the budget for equipment and supplies

Note 4. Contractual Services

     a)   The auditors questioned  $21,955 in laboratory services costs for
          NYTEST, a subcontractor, because the costs were in excess of $10,000
          and no subagreement was on file.   On January 9, 1990 the prime
          contractor, URS Consultants, submitted a subagreement with NYTEST
          for the project engineer's review and approval.  We therefore
          request that these costs be set aside pending the project engineer's
          review.

     b)   The auditors questioned the $92,319 overrun on a URS subcontractor,
          Environmental Resource Associates, Ltd., because there was no
          subagreement to revise the original contract amount.   On January 9,
          1990 URS submitted a supplemental agreement for that work for the
          project engineer's review and approval.  We therefore request that
          the costs be set aside pending the project engineer's review of the
          subagreement.

-------
           Comments on Draft Interim Audit Report No. P5BQ9-02-0366 (page 3 of 4)
           New York State Department of Environmental Conservation
                           Grant No. V002437-84
                                                                  >***«**»***«***
Clothier Site
Note 4. Contractual Services (continued)
     c)   The auditors questioned $25,043 paid to URS Inc. for tasks outside
          the scope of the contract.  However, Supplemental Agreement No. 3
          as described in Note 3-b. under Fulton Terminals also covers the
          Clothier Site.  We, therefore, request that the costs now be
          accepted.
Volney Landfill Site

Note 1.   Personnel Costs

     a)   The auditors disallowed $3,036 in personnel costs associated with
          invalidated analytical data of Volney Landfill.  We accept the
          auditors' finding.

     b)(i)The auditors questioned $903 in personnel costs as unsupported
          because the time sheets were unavailable to substantiate the
          costs.  Since this amount was based on accruals rather than time
          records, we accept the auditors' finding.

     (ii) The auditors questioned $2,725 in personnel costs as being in
          excess of the grant budget-.  $1,515 of that amount was incurred
          between January 1 and March 31, 1989, after expiration of the
          grant budget period.  Since the budget period for this portion of
          the grant was not extended, we accept the auditors' finding of
          excess costs in the amount of $1,515.  However, we request that the
          remainder, $1,210, be set aside until such time as an amendment is
          awarded to increase the budget for personnel costs.

Note 2.   Travel - The auditors questioned $719 in travel costs as being in
          excess of the travel budget.  The auditors also noted that $697 of
          that amount was incurred between January 1 and March 31, 1989, after
          expiration of the grant budget period.  Since the budget period for
          this portion of the grant was not extended, we accept the auditors'
          finding of excess costs in the amount of $697.  However, we request
          that the remainder, $22, be set aside until such time as an
          amendment is awarded to increase the travel costs budget.

Note 3.   Contractual Services

          a)   The auditors questioned $48,312 in costs billed by URS, Inc.
               for laboratory services provided by a subcontractor, NYTEST, as
               ineligible since the costs were associated with invalidated
               analytical data.  We accept the auditors' finding.

-------
           Comments on            -
           Hew York State Department of Environmental Conservation
                           Grant No. V002437-84
Vplney Landfill Site

Note 3.   Contractual Services (continued)

          b)   The auditors questioned $18,337 in costs billed by URS, Inc.
               for sampling services in connection with invalidated analytical
               data as ineligible for Federal participation.  We accept the
               auditors' finding.

          c)   The auditors questioned $3,991 paid to URS Inc. for health risk
               assessment services which were not within the scope of the
               existing subagreement.  However, Supplemental Agreement
               No. 3 as described in Note 3b. under Fulton Terminal
               increases the scope to include those services.  We therefore
               request that these costs be accepted.

-------
fHIS AGREEMENT entered into this "p / day of  /*               , 1939, by
and betveen the NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
(hereinafter referred to as the DEPARTMENT) and URS CORPORATION (herein-
after referred to as the ENGINEER)

                                WITNESS:
      WHEREAS the parties hereto entered into a prior agreement which was
duly assigned Contract No. D001173 by the Comptroller of the State of Nev
York and amended by Supplemental Agreement No.  1 vhich vas approved by the
Comptroller on 7/1/86 and by Supplemental Agreement No. 2 approved by the
Comptroller on 8/18/86.
      WHEREAS the parties desire to amend said Agreement;  and
      WHEREAS the DEPARTMENT is empowered by lav to obtain technical and
professional services; and
      WHEREAS  the  performance of  this  service  is  essential  to  the
DEPARTMENT; and
      WHEREAS  the  DEPARTMENT  has fully  examined all  of its  internal
capabilities  and has  thoroughly  investigated  all possible  alternative
methods  of accomplishing  this project within the DEPARTMENT,  and has
determined that it must accomplish this vork through consultant services;
and
      WHEREAS  the ENGINEER hereby represents  that it  is  professionally
capable of providing the desired technical and professional services vhich
are  the  subject matter  of  this  AGREEMENT,  and is licensed  to practice
engineering in the  State of Nev York.

Nov  therefore, the  parties agree as follows:

1.    The  ENGINEER vill be reimbursed  for costs  incurred  to  perform the
      additional services  associated  vith the   contract  modifications
      detailed in 'Description of Additional  Services', attached hereto
      and  Bade a part hereof.

2.    The  amount of the  lump sum fixed fee described in  ITEM V of ARTICLE
      10 of the  prior Agreement is hereby revised to $10.711  for the

-------
      Fulton Terminals site, $11,519 for the Clothier  site,  and $12.958
      for the Volney Landfill.

3.    The maximum amount payable described in ITEM IX of ARTICLE  10 of the
      prior  Agreement  is   hereby  revised  to  $352,496  at  the  Fulton
      Terminals site, $569,978 at the Clothier site, and $418,115 at the
      Volney  Landfill site, unless  there  is  an additional  change in the
      scope,  character, or complexity of the work contained  in an executed
      Supplemental  Agreement.

 4.    All other terms and conditions of the prior Agreement remain in full
       force and effect.

 5.     Revised Exhibits C,  D-l,  D-2  and  D-3,  attached hereto, replace the
       corresponding  original  exhibits  in  Schedule  2  of  the  prior
       Agreement.

       The term of  this  Contract is extended to January 31,  1990.

-------
      IN WITNESS WHEREOF,  representatives of the Department and the
Engineer have executed this Contract on the day and year written beneath
their respective signatures.
Recommended:
T i 11 e: ~j

Date:
^FORJJEPARTMENT

[By:

 Title:  Director of Fiscal

 Date:
                                FOR ENGINEER

                                By:   Virgnjra Sinoh. P.E.

                                Title:   Vice President

                                Date:  \D^P  Q_ft
Approved as to Form:

By: 	
          Attorney General
Date:
STATE
 .."SSaBW?""
         O  ,
COUNTY OFr> _*_ j
      Qn thai
     I/V A-L*i
                   )  SS:
      ., 19**V&5We~me personally
       ,known,  who being duly sworn,
came
did depose and say that
New York; that (s)he is	
the corporation described in and which executed the above instrument;
that (s)he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that  it was so affixed by
authority of the Board of Directors of said corporation and that (s)he
signed his/her name thereto by the same authority.
                                         Notary Public
                                      DEBORAH 1 MOOT
                                      Nowy Public
                                      ^j»Hr«d in Eric but*
                                        '

-------
                                EXHIBIT  C
                         ESTIMATED  COST  SUMMARY
Item IA - Direct Technical Salaries
     TR - Direct Technical Salaries
     l    Premium Portion of Overtime
 Item II  - Direct Non-Salary Costs
           Expenses
 Item III - Overhead
  Item IV  -  Fixed  Fee
  Item II - Direct Non-Salary Costs
            Subcontractors
  Total Estimated Cost
   MAXIMUM AMOUNT PAYABLE:
 Fulton Terminals
 Clothier
 Volney Landfill
 All  3 sites

 Fulton Terminals
 Clothier
 Volney  Landfill
 All  3 sites

 Fulton Terminals
 Clothier
 Volney Landfill
 All  3 sites

 Fulton Terminals
 Clothier
 Volney  Landfill
 All  3 sites

  Fulton  Terminals
  Clothier
  Volney  Landfill
  All 3 sites

  Fulton Terminals
  Clothier
  Volney Landfill
- All 3 sites

  Fulton Terminals
  Clothier
  Volney Landfill
   All 3  sites
$   72,999
    74,022
    79,338
   226,359

      -0-
      -0-
      -0-
      -0-

    30,079
    37,129
    30,617
    97,825

    90,838
    92,109
     98,727
    281,674

     10,711
     11,755
     12,958
     35,424

    147,869
    355,199
    196,475
    699,543

     352,496
     570,214
     418,115
   1,340,825

  $1,340.825

-------
"   S   5
                                                              <*>
                                                    «   H   O
                                                    r»   o   o
                                                    m   
(A
M
                                             »-   *
              *   CM

              *   «
              N   M
               •    *

              «   »

                                                                             H   N
                           4   «   O   O
                                                                                                        O   I-

-------

























CM
Q
H
»
i

















-H J* *1
01 to in
i_l M f*»
nW (Q U
O H U
H

m
O
U
rH CO
0) M
O C
t* O
U
3
BJ
-H 01
03 tO
*•> C
O W
fri O
M
•w* ^
(Q
BO
Oi -H
X Ctf *
JE W O
SS M H
CA S
H
H O
(A _}
O O
Q
U
(- «
^C 8"
^C &b
|H
e-
CA
W
•c
M CK
O 0)
-Q ,£
a u
J Oi

?*
^
o
u
>
Oi

C
fl
fc*
•—
CM 00 VO r« Ol VO O
Is. O rH VO O» t* m
CM rH i-» O CM H r»
o» *" m * 
N


CM Ot VO CM O vO m
en 00 rH 4 00 00 00
00 Ol rH Ol rH CM m
in en en fn en in t3
rH cn




CM en en 00 Ol rH rH
oo vo oo m ao ao vo
en en CM cn CM * rH
cn



VO O rH r» m «8T •*
VO rH r» 00 O VO Ol
in o «n 01 vo vo o
00 CM H rH rH CM m
rH
.«• VO CM rs. 00 rH O
co rH vo 01 ao  ^ en
rH en •« en

00 Ol O rH
rH rH

0
VO
O
rH




1
1
1






Ol
vO
rH





rH
Ov
00





t-t
00




Oi
•sT
•*


rH
VO
cn


t
t6
U
•sT
iH
CM
O

m


o>
o>
rH
m
in
en



Ol
CM
rH
•
PS.
en


vO
00
00
IS.
fs.
rH



m
in
rH
rH


Oi
0
rH
CM
OV
CM
CM
0
,T
rs.
O
|i

-------
     ««
     ^c
                      *
                     w
M   M
"   b.
M   C   >•

2   s   i
U   °   -J
     3
     (A
     w
§
      \O   O   r-s
      en   A   A
                            m
                                               f>»   CO   f>
                                               CM   »H   •*
O   cn   «H
(MOO
K   4^   CM
                                                                                 CD
                                                                                 at
                                                                                      »n
                                •   §
                                Q%   O

                                O   rt
                                          CM   M
                                     O
                                     O
                                     o
                            CM  O
                       O   CO
                           CM
                       en   en
                                     CM
                                               O
                                               in
                                                      e
                                                      o
      ^   *•?   co   4n   r^   o^   in   P*   o   en   *H   *4^  4*1
      •*AP*t0r»A*«nri*OOi'4CM
      coAcoia^cocoi-ienmcocoo
°*     •   JT   -:  -r   -   -:   j1  ^  -:   -:   -r       _:
      en   en   en   co   c«   en   P^   •»   o   en   A       **^
      rt        A   fS                      'H   ^"4            O^








      co«nHAfoin
      CMeni-4«coenr««Ac«ico       A
       •         *    •                            •              *
      H        •*   rt                           fl            CM









      i^   M   k«-ii0Or»«irl4jD(MO«f-tcM
      AOPo^r^AAmtMroA^pH

      a«r4oCA«»HfncMinio«       co
                «                                              A








Ol    «OCOAOAACO«40400O<0
      O^«>ainp«.p».«BOCOP»4nen
      lAtOAioMm^ocMenAmen

      o^Af^mr4encM<«inen       A
                                 Oi   1^
                                                                       e   •*
                                                                                      O
                                                                                     »*

-------
                   Patcriotion of Additional Service!
I.
                 -  ASK 3 SITE
      A)
Ktmoval of vmstt samples,  drums and drill cuttings
The field  activities  associated  vitb the remedial investigation  at the
Fulton  Terminals  and  Clothier  sites  have  generated  containers  of
contaminated  wastes  and  soils  which  require  disposal  at  permitted
Treatment, Storage and Disposal Facilities (TSDF).  The disposal of these
materials vas not  specified in the original  contract  scope  of services.
The cost for  the  disposal of  wastes  from the Fulton  Terminals  site was
$18,235.00 and the cost for disposal of wastes from the Clothier site was
$19.637.57.  (See Exhibits 1 and 2.)

      8)    Additional Clothier  soil  sampling

In order to characterize the extent of soil contamination present  at the
Clothier site, an additional round of soil samples was collected  by the
ENGINEER.   The collection  of these   samples  was not  specified in  the
original contract scope.  The following is a breakdown of costs associated
with the collection of these samples
Staff Title
       Salary Hate
Hours
Total Cost
Senior Technician    $13.00
Surveyor               8.43
                              84.0
                              76.5
                      Total Direct Labor
                     Overhead  (1124.4*1)
                        Fixed  Fee (|10Z)
                               Subtotal

                      Other Direct Co^tt
                                 Travel
                      Heals and Lodging
                     equipment & Samples
                            Grand Total
                  $ 1.092.00
                      644.90
                  $ 1,736.90
                    2.161.40
                      389.83
                  $ 4,288.13
                                                           $   230.66
                                                               560.90
                                                               325.51
                                                           S 5,405.20

-------
                              Exhibit 1

                     Manaf •'"•nt, Inc.
41. IS
N^
201/443-flOO
                      ,, A<
                     07103
TO' TOS ,IHC.
    570 DEUVAIZ AVZNUt
    BUfTAW , HW T0«  U202
    ATTH:  DAM I0THMAM
                                       INVOICE E-N!
                                INVOICE DATE

                                PROJECT NO. -
                                CUSTOMER ORDER
                                TtftMSi NIT II «AYS_
                            DESCMFnON
         TO wmci TOU fotwtt m»i«D octom u A» i*. «M

         ALSO , DtCEKUl 2A, 1916
                             KATIIZAL/nODOCTS

                             Tuistomnoi

                             DlSKJIAl
                                      AttACHD.*
           *SZX COIM Of BAUT

-------
                                  Exhibit 2
                                                                      i y v n i r c
                                                                          4MCUKTS «iv..
                                                                •|«IST AT TWO MOCINT Ml «C
                                                                         **T|
     URS
     S70 0«!w*rt Strttt
     Syffilo. Ntw torj U202
     ATTENTION:  *. 0. ROTHMAN
       A.  Clotftltr Slta
           1.  22 F1btr OruM of SMplts for Inc1rwtt1on Prof 11t No.  G07787


        B.   Pulton Siu
            1.  61 Orun      Profllt Not 6077M. G07700, GQ77U,. 8077I§-

            2.  IS Ovtrpack OHJM   '
         (For mort
                                      pins,
                                                         Utur dat^ MarcH 2. 1987,
1 Mf MIT TO
k
P.O. Boi 8000 Dipt. WO
• • ».«.   «.~ ¥«•* 149*7
S28.07S.CC

-------
      C)    Additions! Volnty groundveter sampling
In ordtr to confirm the prestnct of contamination discovered in previous
groundwater samples, » second round of  staples  is  necessary.   The costs
for the ENGINEER to collect these samples is as followss
                   s§i»rf Rate,
                                                Total Cost
Engineer -Level 2
Technician
         $16.01               44.5
           6.56               42.5
                      Total  Direct Labor
                     Overhead (C124.44Z)
                        Fixed Pee (|10Z)
                                Subtotal

                      Other  Direct Cost!
             Travel  (300 ai.  I $0.23/ai)
                                   Tolls
                      Meals  and Lodging
                             Grand Total
                  5    712.44
                      279.80
                  $   991.24
                    1,233.50

                  $ 2,447.21
                                                                 69.00
                                                                  6.70
                                                            S 2,753.47
      D)
CLP Data Audit (Pulton)
The  nev Pulton  Terminals chemical  data  (groundwater,  surface  water.
sediment)  was given  a detailed  CLP data audit.  This audit  was  not
specified  in  the original contract scope.  The following is  a breakdown
of costs associated with the audit.
Stiff Tltlt
       S»l»r»
Houri
Total Cost
Scientist -Level 4    $20.63
Scientist -Level 4     20.04
Scientist -Level 3     17.29
                               39.0
                               47.5
                               53.0
                      Total Direct Labor
                     Overhead (1124.441)
                                    Pee
                                Subtotal

                      Other Direct Coste
                                 Travel
                      Meals and Lodging
                             Grand Total
                      804.57
                      951.90
                                                            $ 2,672.84
                                                              3.326.08

                                                            $ S, 998. 92
                                                            $   753.53
                                                                440.00
                                                            $ 7.192.45
            credit for invalid data (Volney)
URS Invoice Mo. 3776 (for the period 11/29/86 through 12/26/86}  included
charges of  $48,312.00 by MYTCST Environmental, Inc.  for Volney  cheaical
analyses which subsequently proved to be invalid.   An equal reduction in
the Volney Landfill upset budget is credited.
      P)
tebudget costs among sites


-------
actions at  Fulton  Terminals  and Clothier sites by USEPA,  and partly by
implementation  of  the Superfund Amendments  and leauthorization  Act of
1986.  Both of these actions, which vere not anticipated or provided for
in  the initial contract,  required  restructuring  and reallocation of
resources among the three sites,  and also among the labor and direct non-
salary cost categories.  In addition,  a number of project functions vere
performed simultaneously and/or  jointly for  the  different  sites,  making
the  delineation of  costs  betveen the  three in  some cases  relatively
arbitrary.  For the reasons  above,  and based upon actual  project costs
incurred, the following rebudgeting of costs among sites is appropriate.
This rebudgeting has. for the sake of  convenience,  been applied entirely
to Task 3. Site Investigation.
                  Budget Additions (+)  and/or Subtractions (-)
                                    Clothier
                                            Volnev
                      Total
Labor
Overhead (1124.44Z)
Subcontractor
Total
•o.
.Q.
.34,589.00
-34, 5tft. 00
.0.
.0.
-6,769.00
-6,769.00
+18,427.20
+22. 930. BO
•0-
+4 1,3 SB. 00
+ 18, 427. 20
+22,930.80
.41,358.00
-0-
XX.
WMEDIAL INVESTIGATION - TASK 4  SIT! INVESTIGATION ANALYSIS
      A)
      Health tisk Assessment
Amendments  to  the Federal  Superfund  program  promulgated  under  the
Super fund Amendments and leauthorization Act of 1986 (SA1A)  have required
the development  of a  health risk assessment  for the Fulton  Terminals,
Clothier and  Volney Landfill sites.   The original  contract scope  was
developed in 1985 and did not include a health risk assessment.  The costs
to perform the health  risk assessment aret  Fulton  Terminals $14,101.26;
Clothier $11,926.97; and Volney Landfill $4,200.51.   A breakdown of these
costs is as followst

Fulton Terminals Site
St«f* Title
             Salarr !•»•
Hours
Total Cost.
Engineer -Level 4     $26.44
Engineer -Level 2      14.62
Engineer -Level 2      13.94
                                     24.0
                                    169.5
                                     40.0
                            Total Direct Labor
                           Overhead (1124.44Z)
                              Fixed Fee (|10Z)
                                    Subtotal

                            Other Direct Cost,*
                                 Subconsultant
                                   Grand Total
                  $   634.56
                    2.478.09
                      557.60
                  $ 3,670.25
                    4,567.26
                      823.75
                    9.061.26
                                                            S 5.040.00
                                                            $14.101.26

-------
Enginetr -Level 4
Engineer -Level 2
Scientist -Level 2
 $28.67              108.0
  14.88               36.0
  14.62               82.0
             Total Direct Labor
            Overhead ((124.44Z)
               Fiztd Fee (flOI)
                    Grand Total
                          Total Coit

                          $ 3,096.52
                               535.64
                            1.198.84
                          $ 4,831.00
                            6,011.70
                            1.084.27
                          $11,926.97
Voln*v Lapd^ijl

        Ltle         Salirr Rate
 $26.44
  14.62
  13.94
 Engineer -Level 4
 Engineer -Level 2
 Engineer -Level 2
           8.0
          82.5
          16.0
 Total Direct Labor
Overhead (1124.441)
   Fixed Ftt (1101)
        Grand Total
  tal Coat

$   211.52
  1,206.15
    223.04
$ 1,640.71
  2,041.70
    168.24
$11,926.97
                                   Other Diret
                                        Subcontultant
                           Computer Literature Search
                                          Grand Total
 III.
         MEDIAL
TICATIOM
                                       REPORTS
       A)    Eeport  reviaioni
                                       $   125.00
                                             24.86
                                       $  4,200.51
  The  Fulton Teminali  and Clothier RI/FS  report*  were both  revised to
  include the  retultt of  extentive additional  soil  sampling which  *as
  perforned by, or at the direction of,  USEPA.  (At Fulton Terminal«,  the
  number of toil aaaplet  increased  fron 4, in  the original contract scope,
  to 19» at Clothier,  the number increased from 4 to  69.)  In addition, the
  Clothier Ft report was,  at the direction of  USEPA, entirely restructured
  and rewritten to conform with the new SARA guidelines, which were enacted
  after ta« initial report had been prepared.  The costs for these revisions
  art at followst

-------
Fulton Terminals
StaffJltlft
Salary Rate
Hours
Total Cost
Engineer -Level 4
Geologist -Level 4
Engineer -Level 3
Scientist -Level 3
Engineer -Level 2
Scientist -Level 2
Geologist -Level 2
Engineer -Level 1
Scientist -Level 1
Draftsman
lord Processor




Clothier Site
Stiff Title
Engineer -Level 4
Engineer -Level 3
Engineer -Level 2
Scientist -Level 2
Scientist -Level 1
Chief Draftsman
Draftsman
Word Processor




$27.91
24.04
17.18
16.27
14.42
15.98
12.45
8.14
10.31
7.46
7.26





Salarr Hat*
$27.18
18.17
14.72
14.84
11.89
16.31
8.54
9.41




203.0
3.0
18.0
38.0
152.0
45.0
4.0
29.0
3.0
64.5
57.0
Total Direct Labor
Overhead (1124.441)
Fee
Grand Total

Hours
286.0
5.0
560.0
21.5
14.0
2.0
87.0
112.0
Total Direct Labor
Overhead (I124.44X)
Fee
Grand Total
$ 5,666.69
72.12
309.18
618.32
2,191.13
718.92
49.80
236.12
30.94
481.24
413.84
$10,788.30
13,424.95
-0-
$24.213.25

Total Cost
$ 7,772.28
90.86
8.243.59
319.11
166.44
32.62
742.78
1.033.46
$18,421.14
22,923.27
-0-
S41.344.41

-------
                      Suau&ftrv of Additional Costs
Remedial
    Pylton
                                         Clohier
Removal of waste staples.
druas and cuttings       $18.235.00  $19,637.57
Clothier soil sampling

Volney groundvater
sampling

CLP data audit

Invalid data credit

Rebudgeting

Taak Total

Taek 4
                              .0.



                              -0-

                           7.192.45
5.405.20


   -0-

   • 0-
                              -0-     $37,872.57

                              .0-       5,405.20



                           2.753.47     2.753.47

                              .0.       7.192.45
                              -0-         .0-    .48,312.00  -48,312.00

                         -34.589.00   -6.769.00   41.358.00       -0-
                         -$9.161.55  $18.273.77  .$4.200.33  $ 4.911.69




Health risk assessment  $14.101.26   $11.926.97  $ 4,200.51  $30,228.74
 Report Revision*
$24.213.25   $41.344.41
                                                      -0-    $65.557.66
 61AID TOTAL
$29.132.96   $71.343.13  -$   0.02  $100,698.09

-------
Summit"? of Additional Costa * Continued
• ft
F
Di :ect Labor
<;<7*rhe»d
Fixed Fee
Subtotal
Other Direct Cottl
Travel fc Tolls
Heals & Lodging
Equip. & Supplies
Subcontractor
Subtotal
CEAK) TOTAL
Ful^op
$17,131.39
21,318.29
S23.73
$39,273.43

$ 733.33
440.00
-0-
-V^.. 314. 00
-10.120.47
$29,152.96
Clothier
$24,989.04
31,096.37
1.474.10
$57,559.51

$ 230.66
560.90
323.31
12.868.57
13,985.64
$71,545.15
Vainer
$21,059.13
26,206.00
590.71
$47,155.86

$ 73.70
230.56
24.86
.48.187.00
.47.655.89
-$ 0.02
Tofril
$ 63,179.58
78,620.66
2. 888. 56
$144,668.60

$ 1,059.89
1,231.46
330.37
-46.63Z.43
-43,990.71
$100,698.09

-------