UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, DC. 204CO
OFFICE OF
THE INSPECTOR GENERAL
MEMORANDUM
SUBJECT: Audit of Superfund Interagency Agreements with the
Federal Emergency Management Agency for Fiscal 1987
Audit Report M5BFL9-11-0029-9100259
FROM: Kenneth D. Hockman 7yi>v^olw cP H0^*^^
Divisional Inspector General for Audit
Internal Audit Division
TO: Harvey G. Pippen
Director, Grants Administration Division
On November 21, 1988, I transmitted the attached audit
report from the Office of the Inspector General, FEMA for
information purposes. At that time, I indicated that FEMA's
Office of the Comptroller (Comptroller) had not responded to the
audit report. FEMA's Office of the Inspector General has now
analyzed the Comptroller's response and concluded that the
Comptroller has taken or plans to take corrective action.
To accurately report Superfund costs to EPA, the Comptroller
is developing a system to reconcile Superfund expenses included
on Department of Treasury reports of disbursements to FEMA's
official accounting records. Future Office of Inspector General,
FEMA audit reports will address system effectiveness.
Because FEMA has taken action to correct reporting errors
and locate supporting documentation for Superfund costs, we are
not making any recommendations in this report. We are closing
this report upon issuance.
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I have attached FEMA's audit report (Attachment 1), the
Comptroller's response (Attachment 2), and the FEMA Office of the
Inspector General's analysis of the response (Attachment 3).
Should your staff have any questions concerning this report,
please have them contact John Walsh on 475-6753.
Attachments
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APPENDIX
DISTRIBUTION OF REPORT
Director, Office of Emergency and Remedial Response (OS-200)
Director, Office of Program Management (OS-240)
Director, Financial Management Division (PM-226)
Comptroller (PM-225)
Chief, Grants Information and Analysis Branch (PM-216F)
Agency Followup Official (PH-208)
Audit Followup Coordinator (PM-208)
Attn: Program Operations Support Staff
Agency Followup Official (PM-225)
Attn: Director, Resource Management Division
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ATTACHMENT 1
Federal Emergency Management Agency
Washington. D.C. 20472
>'QV -4
MEMORANDUM FOR:
FROM:
SUBJECT:
Grant C. Peterson
Associate Director
State and Local Programs and
Support Directorate
Gary J, Barard
Assistant Inspector General for Audit
Office of the Inspector General
Review of FEMA's Administration of J:he
Comprehensive Environmental Response,
Compensation and Liability Act For Fiscal
Year 1987; Audit Report No. H-02-89
The Office of Inspector General conducted an audit of the Federal
Emergency Management Agency's (FEMA) administration of the
temporary and permanent relocation program under the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980. This audit, mandated by the Superfund Amendments
and Reauthorization Act of 1986, was made to determine if FEMA
had effectively fulfilled its program responsibilities and had
expended funds for eligible purposes.
We found that FEMA had effectively administered the temporary
relocation component of the Program, and had generally spent
funds for eligible purposes. The report contains no findings
which require action by your office.
However, we did identify several recording and documentation
problems which the Office of the Comptroller must correct. We
have addressed recommendations to that office for appropriate
action.
Should you have any questions on this report please contact me or
Jane Altenhofen on 646-3911.
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Federal Emergency Management Agency
Washington, D.C. 20472
NOV - 4 1988
MEMORANDUM FOR:
FROM:
SUBJECT:
George H. Orrell
Comptroller
-"-i-i*!^.,
Gary JT Barard '~~-
Assistant Inspector General for Audit
Review of FEMA's Administration of the
Comprehensive Environmental Response,
Compensation and Liability Act For
Fiscal Year 1987; Audit Report No. H-02-89
The Office of Inspector General conducted an audit of the
Federal Emergency Management Agency's (FEMA) administration of
the temporary and permanent relocation program under the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980. This audit, mandated by the Superfund Amendments
and Reauthorization Act of 1986, was made to determine if FEMA
had effectively fulfilled its program responsibilities and had
expended funds for eligible purposes.
We found that FEMA had effectively administered the temporary
relocation component of the Program, and had generally spent
funds for eligible purposes. However, we identified a clear need
for FEMA to improve its procedures for reporting program costs
and for retaining documentation to support such costs.
In accordance with FEMA Instruction 1270.2, paragraph 7, we are
requesting that your office submit comments on the report within
60 days from the date of this memorandum. Your comments should
indicate concurrence or non-concurrence with the audit findings,
reasons for non-concurrence where appropriate, and actions
initiated or planned by your office to comply with the audit
recommendations.
Should you have any questions on this report please contact me or
Jane Altenhofen on 646-3911,
Attachment
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OFFICE OF
INSPECTOR
GENERAL
REVIEW OF FEMA'S ADMINISTRATION OF THE
COMPREHENSIVE ENVIRONMENTAL RESPONSE,
COMPENSATION AND LIABILITY ACT FOR
FISCAL YEAR 1987
AUDIT REPORT NO. H-02-89
FEDERAL EMERGENCY
MANAGEMENT AGENCY
NOVEMBER 1988
DATE
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INTRODUCTION AND SCOPE
The Office of the Inspector General conducted an audit of the
Federal Emergency Management Agency's (FEMA) administration of
the temporary and permanent relocation program under the
Comprehensive Environmental Response, Compensation and Liability
Act (CERCLA) of 1980. This Act, commonly referred to as
Superfund, requires an annual audit of expenditures incurred by
each Federal Agency involved in the administration of program
activities. Our audit was made to determine if FEMA had
effectively fulfilled its program responsibilities and had
expended funds for eligible purposes.
The audit covered program and expenditure activities for Fiscal
Year (FY) 1937. During this period, FEMA received $8.4 million
in allocation transfers from the Environmental Protection Agency
(EPA) , the Agency with primary responsibility for Superfund
administration. For the same period, FEMA reported expenditures
of $1,647,275. FEMA received $5 million of the unspent balance
of $6.8 million late in the fiscal year for training purposes.
FEMA spent program funds for relocation activities at 20 sites,
selected by EPA, and in support of five accounts for planning and
training activities (see Exhibit A). We audited temporary
relocation program expenses of $316,922 incurred for 12 of the 20
sites(see Note,Exhibit A), and administrative expenses of
$506,668 for all five of the planning and training accounts.
FEMA had not incurred any expenses for permanent relocation
activities at the sites we reviewed.
The majority of the expenses ($.7 million) at the remaining eight
sites, were incurred by a contractor administering the program
for FEMA. At FEMA's request, the Defense Contract Audit Agency
indicated they would audit these costs in part.
During our review, we examined the results of internal control
assessments performed by the State and Local Programs and Support
Directorate, the FEMA organizational element responsible for the
Superfund Program. These assessments, made pursuant to the
Office of Management and Budget Circular A-123, concluded that
the susceptibility of the Superfund Program to fraud, waste, and
abuse was low.
Our audit was performed during the period of March 1988 through
July 1988, and included audit work at FEMA Headquarters and
Regional Offices in Boston, MA.; Denton, TX. ; Kansas City, MO.;
Denver, CO. ; and San Francisco, CA. The audit was made in
accordance with the "Standards for Audit of Governmental
Organizations, Programs, Activities and Functions" promulgated by
the U.S. Comptroller General. Accordingly, the examination
included such tests cf the accounting records and such other
auditing procedures as we considered necessary in the
circumstances,
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BACKGROUND
The U.S. Congress passed CERCLA (P.L. 96-5X0) in 1980 to address
the problems associated with- hazardous substances. This Act
established a Hazardous Substance Response Trust Fund and
authorized the Federal Government to respond directly to actual
or threatened releases of hazardous substances, pollutants, or
contaminants that may endanger public health or welfare.
Specifically, it provides for the establishment of a program to
control and clean-up hazardous substances released or left to
dissipate into the environment. In conjunction with such
actions, the Federal Government also provides temporary or
permanent relocation to individuals affected by the hazardous
substances.
Executive Order No. 12316, "Responses to Environmental Damage",
assigns responsibility to various Federal agencies for
administration of the Act. EPA has primary responsibility for
carrying out the program and FEMA has responsibility for
administering the temporary and permanent relocation program.
FEMA was assigned these activities because of the Agency's
previous experience in regulating relocation efforts under the
Disaster Assistance Program.
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RESULTS OF AUDIT
We found that FEMA had effectively administered the temporary
relocation component of the Superfund Program, and had generally
spent funds for eligible purposes. However, we identified a
clear need for FEMA to improve its procedures for reporting
program costs and for retaining documentation to support such
costs.
1. Program Administration
Our review of program administration during FY 1987 showed
that FEMA provided temporary relocation benefits totaling
$316,922 to 90 families, at 12 sites. These benefits
included moving expenses, lodging, and food subsidies. We
determined that all 90 families were eligible for assistance
and that the assistance they received was provided
expeditiously.
2. Accumulation and Reporting of Program Costs
By agreement, FEMA is required to submit financial reports
to EPA monthly on program expenses. The reporting of such
expenses must clearly delineate costs by site and
administrative account. We found that because of the
procedures and practices in compiling costs, FEMA
understated expenses in its reports to EPA by $46,430 and
reported site and account totals incorrectly.
The reporting inaccuracies occurred because FEMA's office of
the Comptroller, the preparer of financial reports to EPA,
used unreconciled reports of disbursements prepared by or
for the Treasury Department as the source for compiling
Superfund costs rather than the Agency's official accounting
system. The reports of disbursements were inaccurate
because of inadvertent data entry errors and because they
did not reflect payroll adjustments.
These inaccuracies consisted of the:
o Underreporting of $62,460 in allocable payroll costs
(see Exhibit B) . These costs were incurred for FEMA
employees who performed site-specific Superfund duties
. intermittently through the year. Such costs were not
reflected on the Treasury reports;
o Underreporting of $18,990 in eligible expenses (see
Exhibit C) . These expenses were not recorded on the
Treasury reports;
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Reporting of $35,020 in ineligible costs. These
charges were for either expenditures unrelated to the
Superfund Program (see Exhibit D) or for the unused
portion of travel advances (see Exhibit E); and
Incorrect reporting of $3,016 in otherwise eligible
expenses which had been charged to the wrong site or
account (see Exhibit F).
3. Missing Documentation
The agreement between EPA and FEMA also required FEMA to
maintain documentation to support all Superfund charges.
However, the office of the Comptroller could not provide
supporting documentation for approximately $26,242 in
expenditures (see Exhibit G). Missing were invoices,
receipts, or payment documents. Thus, these charges are
considered questionable.
RECOMMENDATIONS
In view of the above conditions, we recommend that the Office of
the Comptroller:
1) Reconcile Superfund expenses included on Treasury
reports of disbursements to FEMA's official
accounting records to ensure accurate reporting of
Superfund costs to EPA; and
2) Correct the reporting inaccuracies found through
audit by adding (in subsequent reports) the
$81,450 in eligible costs; deleting (in subsequent
reports) the $35,020 in ineligible costs; and
reporting accurately (in subsequent reports) the
$3,016 in costs charged to the wrong accounts or
sites.
3) Locate records to support the $26,242 in
questioned costs or reduce Superfund expenditures
by that amount.
EXIT CONFERENCE
We discussed these findings and recommendations with the Office
of the Comptroller on October 20, 1988. The representatives
generally concurred with the findings and agreed that the
reporting errors needed to be corrected and the missing
documentation located.
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SCHEDULE OF FISCAL YEAR 1987
EXHIBIT A
SITE/ACCOUNT *
3300/3400
9000
9004
9005
9006
9008
9020
9022
9026
9027
9028
9029
9032
9033
9034
9035
9036
9037
9038
9039
9040
9041
9042
9043
9C44
SUPERFUND EXPENDITURES BY SITE/ACCOUNT
REPORTED TO EPA 8Y FEMA
LOCATION
TIMES BEACH, MISSOURI
PLANNING AGREEMENT - HEADQUARTERS
GLOBE, ARIZONA
M INKER STOUT/NIEGHBORS, MISSOURI
QUIAL RUM, MISSOURI
PIAZZA ROAD, MISSOURI
SCRANTON, PENNSYLVANIA
HUDSON, NEU HAMPSHIRE
LONOENOERRY, NEW HAMPSHIRE
MILL CREEK, MONTANA
DETROIT, MICHIGAN
SANFQRD, NORTH CAROLINA
CHEHALIS, WASHINGTON
PLANNING AGREEMENT - NETC
PLANNING AGREEMENT - NTH
SENUTA FAMILY, TEXAS
HOLLEY FAMILY, TEXAS
DEHPSEV FAMILY, TEXAS
CASTLEUOOO, MISSOURI
LIBERTY, TEXAS
MONROVIA, CALIFORNIA
CCNRCE, TEXAS
PLANNING AGREEMENT - REGION 1
SPRINGFIELD, VERMONT
TIKE 1 1 1 I;*NING FL*OS
TCTAL
FY 1987 EXPENDITURES
$679,292.88
$343,293.56 -
$67,100.99
$42,867.80 *
$56,953.85 *
$1,442.89 *
15,773.00
$12,765.23
$32,673.39
$64,074.39 *
$4,301.89
$14,297.33
$7,480.24
$57,684.95 *
$103,327.65 •
$17,174,81 *
$709.00 *
S1.564.32 «
$27,638.25 *
$7,094.29 *
$34,949.18 *
$304.50 *
$1,459.73 *
i62,148.50 *
I7C2.C3 '
il ,647.274.$7
* SiTES ALD!'£3
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SCHEDULE OF PAYROLL COSTS
EXHIBIT 8
SITE/ACCOUNT *
3300/3400
9000
9005
9006
9008
9027
9029
9032
9033
9034
9035
9036
9037
9038
9039
9040
9043
MOT REPORTED TO EPA
LOCATION
TIMES 8EACH, MISSOURI
PLANNING AGREEMENT - HEADQUARTERS
MlNKER STOUT/NEIGHBORS, MISSOURI
QUAIL RUN, MISSOURI
PIAZZA ROAD, MISSOURI
MILL CREEK, MONTANA
SANFORD, NORTH CAROLINA
CHEHALIS, WASHINGTON
PLANNING AGREEMENT - NETC
PLANNING AGREEMENT - NTH
SENUTA FAMILY, TEXAS
HOLLEY FAMILY, TEXAS
DEMPSEY FAMILY, TEXAS
CASTLEUOOD, MISSOURI
LIBERTY, TEXAS
MONROVIA, CALIFORNIA
SPRINGFIELD, VERMONT
PAYROLL
UNOERREPORTEO
$Z,<.23.69
$15,209.82
$91.99
($1,033.64)
$63.72
$18,801.61
$1,341.41
$97.51
$1,688.19
$11,807.07
S35.28
$182.41
$219.27
$5,016.92
$862.41
$4,228.79
$1,383.78
TOTAL
$62,460.23
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SCHEDULE OF ELIGIBLE EXPENSES
EXHIBIT C
SITE/ACCOUNT
9027
9027
9040
9034
9034
9034
9034
9034
9034
9034
9034
9034
9034
9034
9034
9041
9000
9000
9000
TOTAL
NOT REPORTED TC
SCHEDULE <1>
VD0263
VOQ257
VF0349
RCC535
RC0549
RC0550
RC0556
RN0474
TC0126
TC0127
TC0129
RF0544
IC0178
RA0641 &
[A0132
RK0266 &
I KOI 24
RT04SO
RN038S
RN039H
TC0116
1 EPA
AMOUNT
S9.466.00
$4,787.00
$13.01
$86. 50
$1,179.24
$442.25
$558.40
$229.50
$436.00
$364.00
$311.00
$290.00
$153.00
$55.00
$90.00
$52.69
$133.62
$52.60
$290.00
$18,989.81
<1> SCHEDULE NUMBERS CSTA1NEO f?CM SJPERFUNO ACCOUNTING RECORDS
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SCHEDULE OF
EXHIBIT D
SITE/ACCOUNT
9040
9000
9006
9034
9034
9000
TOTALS
NON-SUPERFUND EXPENSES
REPORTED TO EPA
NOW- SUPER FUND
SCHEDULE AMOUNT AMOUNT
RF0522 $9,562.53 $9,478.53
IN0192 $25,000.00 $25,000.00
374562 ($52.04) ($52.04)
1T0147 $40.00 $40.00
RD0506 $200.00 $200.00
TN0074 $229.50 $229.50
$34,979.99 $34,895.99
<1> SCHEDULE NUMBERS OBTAINED FROM STATEMENT OF TRANSACTION REPORT
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SCHEDULE OF UNUSED
EXHIBIT E
SITE/ACCOUNT
9000
9034
9039
9034
TOTALS
TRAVEL ADVANCES
SCHEDULE <1> ADVANCE
IM0179 & $100.00
RN0367
1A0137 & $40.00
RA0663
IT0139 & $100.00
RT0443
IC0178 & $130.00
RC0548
$390.00
EXPENSE OUTSTANDING
$97.00 $3.00
'
$9.84 $50.16
$31.85 $68.15
$127.30 $2.70
$265.99 $124.01
<1> SCHEDULE NUMBERS OBTAINED FROM STATEMENT OF TRANSACTIONS REPORT
AND SUPERFUND ACCOUNTING RECORDS.
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SCHEDULE OF EXPENSES REPORTED
£XH!8ir F
INCORRECTLY BY SITE/ACCOUNT
SITE/ACCOUNT
9000
9000
9000
9000
9000
9006
9043
9043
9043
9043
9043
9043
9038
9043
9035
•OTALS
SCHEDULE <1>
RN0464
RN0470
TNOOS3
TN0087
100479
841141
B0131S
80139S
B0154S
801 58S
B0169S
869336
H7B174
80169S
RT0407
AMOUNT
$253.60
$197.30
$248.00
$82.00
$50.00
$157.25
$150.00
$394.60
$676.66
$30.44
$28.88
($69.76)
$297.38
$78.00
$386.33
$3,015.73
CORRECT
ACCOUNT
9034
9034
9034
9034
9034
9005
9034
9034
9034
9034
9034
9042
9033
9034
9035
9036
9037
CORRECT
AMOUNT
$258.60
$197.30
$248.00
$82.00
$50.00
$157.25
$150.00
$394.60
$676.66
$80.44
$28.83
($69.76)
$297.38
$78.00
$129.05
$129.05
$128.28
$3,015.73
<1> SCHEDULE NUMBERS OBTAINED FROM STATEMENT OF TRANSACTIONS REPORT
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SCHEDULE QF EXPENSES
EXHIBIT G
WITH HISSING DOCUMENTATION
SITE/ACCOUNT
3300/3400
3300/3400
3300/3400
3300/3400
3300/3400
9000
9000
9000
9020
9033
9034
9034
9034
9034
9044
TOTAL
SCHEDULE <1>
T 00393
871027
871025
871143
870989
TA0398
V02677
V028T6
VP0409
H02499
T7T010
H7B168
H7L170
RS0214
E71449
AMOUNT
4218.00
$9,195.04
$7,657.31
($52.40)
($2,424.87)
$443.00
$260.00
$3,173.00
$5,773.00
$15.75
$418.00
$331.80
$7.57
$240.00
$986.30
$26,241.50
<1> SCHEDULE NUMBERS OBTAINED FROM SUPERFUNO ACCOUNTING RECORDS
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ATTACHMENT 2
Federal Emergency Management Agency
Washington, D.C. 20472
JAN 12 1989
MEMORANDUM FOR:
FROM:
SUBJECT:
Garv J. Barard
Assistant Inspector General for Audit
(•George H. Orrel!)
Controller
If '
Review of FEMff's Administration of the Comprehensive
Enviromental Response, Compensation and Liability
Act (CERCLA) for Fiscal Year 1987
Audit Report No, H-Q2-89
We have completed our review of the subject audit report and your
supplemental memorandum dated November 4, 1988, regarding administrative
costs charged against various Superfund relocation programs under CEHfLA
during FY 1987. In response to the audit findings, and in accordanc^
with FEMA Instruction 1270.2, paragraph 7, we have prepared the attached
comments and planned corrective action.
I would like to compliment your staff for their professionalism when
conducting the recent subject audit. When requesting information and
assistance from the Accounting Division, your staff was consistently
friendly, polite and considerate of ongoing operational deadlines.
Consequently, both offices worked well together to achieve the purpose
of the audit without incurring some of the friction and
misunderstandings that are sometimes associated with an audit. The
result was a high degree of cooperation and a well prepared audit report.
Due to the continuing expansion of FEMA's Superfund activities and the
Superfund's highly visibile position in Congress, we understand the
importance of the annual audit. Your report has helped us identify
several new issues that are in need of correction. Additionally, your
findings reinforce some actions that we have already taken to correct
operational weaknesses. Full compliance with the recommendations
outlined in your audit will be accomplished by February 28, 1989.
If you have any questions or require additional information, please
contact Jim Lucas, Accounting Officer, at 646-4398.
Attachment
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Office of the Comptroller Review
January 11. 1989
Me have completed our review of the subject audit report and vour
supplemental memorandum dated November 4, 1988, regarding administrative
costs charged against various Superfund relocation programs under CERCLA
during FY 1987, We will respond to the report on an item by item basis.
Item number one does not require action.
Item number two of the audit states that expenses reported to EPA were
understated bv $46,430, and that site and fund totals were reported
incorrectly. The audit states that the monthly financial reports
submitted to EPA were not accurate since they were prepared from
unreconciled "Summary of Transactions" (SF 224) reports, rather than the
"Data Processing Special Request" (OPSR 337) report, which is extracted
from FEMA's "Financial Reporting and Accounting System" PARS. The audit
further states that the SF 224 reports were inaccurate due to data entry
errors and lack of payroll adjustments. Subsequently, the audit has
identified more specific problems below:
3
The amount of 162,460 was identified in Exhibit B of the audit report^as
an allocable pavroll cost not reported on FEMA's SF 224 reports.
We agree with the audit that Superfund payroll costs were not being
reported to EPA correctly. Actual Superfund payroll costs were not
reported to EPA until the end of the fiscal year, on the September
"Project Status" report. Payroll costs wgje reported monthly
(during the same fiscal year) in the SF 224 report to the
Department of Treasury (Treasury), and the "Report on Budget
Execution" (SF 133), which is also provided to EPA. The payroll
costs reported on the SF 224 and SF 133 reports are provided by
Treasury on their monthly Treasury Payroll Information System
(TPIS) report. The TPIS figures are based on actual payroll
(salaries and benefits) costs processed for the Agency by Treasury,
and are broken out by fund and pay period. However, the TPIS
figures do not include any prorated (time) payroll adjustments made
in the "Intergrated Staffyear Information System" (ISIS), (by
Superfund and/or non-Superfund employees) for time incurred against
various Superfund sites/programs. Thus, Treasury's payroll costs
were not alwavs correct. Before actual payroll costs could be
reported accurately on the "Project Status" report, the Accounting
staff is required to reconcile Treasury's and PARS' Superfund
payroll costs by pay period. When ISIS entries are made,
accounting adjustments are required in FARS, and are made in
conjuction with the reconciliation process to correctly balance
payroll costs between FARS and Treasury. (During prior fiscal
years, the payroll reconciliation process could not be completed
(due to various reasons) until the end of the fiscal year, to
coincide with the year-end reporting and closeout process).
The Accounting staff has already begun research on the payroll
-2-
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amounts identified in the audit (Exhibit 8 of the audit report), to
Mke certain that thev have been reconciled and have been posted
Wit necessary) to EPA's "Project Status" report. Action has also
bavn taken to determine how Superfund pavroll costs can be
reconciled and reported to EPA on a monthly basis. We anticipate
completion of these items bv February 28, 1989, at which time we
will contact the auditor verbally and/or in writing on the status
of our planned corrective actions.
The amount of S18.99Q in eligible expenses listed in Exhibit C of the
audit report was not recorded on FEMA's 5F 224 reports.
We agree that the identified eligible expenses were not recorded
properlv on our monthly SF 224 reports. The Accounting staff has
researched all of the (19) schedules listed in Exhibit C, and have
determined that 15 schedules wgjg reported on FEMA's SF 224 reports
to Treasury. However, it appears that the accomplished (paid)
entries for these schedules were inadvertently coded in PARS
against the wrong fund code (i.e., S & E = 9, Disaster « 6)
number. The remaining four schedules (VD0263, VOQ257, RN0474 &
RF0544) were preoared and coded in PARS, but were never
accomplished by Treasury - which means that these schedules weree
never recorded on the SF 224 report. The Accounting staff will
make all of the necessary coding changes and correcting entries for
these discrepancies by February 28, 1989. (The schedule amounts
listed in Exhibit C for schedules RC0535, RC0550, RC0556 and IC0178
did not correspond to the actual schedule totals when researched.
The auditor has been notified of the variances for these schedules).
The amount of $35,020 has been identified in Exhibit 0 & E of the audit
report as ineligible costs charged to the Superfund Program. The audit
has identified $34,8% as being non-Superfund costs reported to EPA, and
$124 as outstanding Superfund travel advances due FEMA.
We agree that all of the schedules listed in Exhibit D, in the
amount of $34,8%, were erroneously charged to the Superfund
Program instead of the Salaries and Expense (S 4 E) account. The
Accounting staff will make all of the necessary correcting entries
by February 28, 1989.
We do not agree with the auditor's findings concerning outstanding
travel advances in the amount of $124.01. Upon researching the
schedule numbers listed in Exhibit E within the "Travel Information
Reporting System" (TRIPS), the Accounting staff has determined that
all outstanding advances have been repaid. The Accounting staff
has provided the auditor copies of printouts which supports their
conclusion.
The amount of $3,016 has been identified in Exhibit F of the audit
report as being erroneously charged to the wrong Superfund site or fund.
We agree with that the schedules listed in Exhibit F were
-3-
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inadver-.entlv charged to the wrong Supeifund site/program number or
to the 3 4 E account (Fund 9), and will make all of the necessarv
Cprrec:.ng entiles by Februarv 28, 1989. However, the Accounting
staff -=s determined that schedule numbers B0169S, H7B174 and
dtWCT :o net reauire adjustments, and have provided the auditor
with c:iies of schedules and printouts to support their
cone iu:. on. (The amounts referenced for schedules B01395, 8015-iS
and RTI-37 in tne exhibit, do not correspond to the actual scheoule
amount- *nen compared during research. The auditor has been
notifies of the variances for these schedules).
Item number *nree of the audit states that the Office of the Comptroller
could not or:.ide supporting documentation (i.e., invoices, receipts and
pavment dooxents) for $26,242 in expenditures as listed in Exhibit G of
the audit rercrt. Therefore, these charges have been considered
questionable.
The Accounting staff has located schedules V02678, V02816, H7B168
and RSCli-t, and have submitted them to the auditor for his review.
The Acccjnting staff is having some difficulty locating the
remaini-g schedules as follows:
1 . T00393
2. 871027
3 . 871025
4. 871143
5 . 870989
6. TAQ398
7 . VP0409
8 . HQ2499
9. T7T010
10. H7L17Q
11. £71449
We wil- continue to search for all missing documentation. As
documer-.s are located, they will be promptly delivered to the
auditor. The Accounting staff will attempt to have all missing
documer-.ation located and delivered to the auditor by February 28,
1989. Schedules TA0398 and VP0409, were requested from Regions
III anc IV by formal memorandum. Copies of the memorandum have
been provided to the auditor for his review).
Item one of our supplemental memorandum states that Letter of Credit
(LOC) month 1 . expense reports for O.R. Colan Associates (under Times
Beach, MCn -.5,6 not been entered into PARS since April 1985.
Subsequent! . expenditures in the amount of $1.9 million were not
reported to EPA from Mav 1985 thru September 1987.
We aarr-e that O.R. Colan Associates' monthlv "Summary of
Transa—ions" (SF 272) report was not being entered into PARS in a
time!, -anner. In the past, the SF 272 reports were not being
enter&z into PARS routinelv due to the following reasons:
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o Reports were sometimes attached to invoices and were not
separated before being submitted to Documents Control and
Accounts Pavable for payment processing.
"*b Untimei- and disorganized delivery patterns of the report to
and within the Accounting Division.
o Heaw data entrv backlogs in the LOG office.
We have corrected this matter bv making sure that the responsible
Program Officer delivers the SF 272 report directly to the
Superfund Accountant each month. The Accountant will then ensure
that the SF 272 report is delivered to the LOG office in a timelv
manner, and is promptly entered into PARS.
The LOG office has already entered O.R. Colan's SF 272 reports into
PARS for Mav 1985 thru September 1987 in the amount of $1.9
million. Additionally, reports for October 1987 thru April 1988,
have been entered. The LOG office is currently organizing reports
for Mav 1988 thru November 1988, for entry into FARS during January
1989.
Item two of vour supplemental memorandum identified (in the attachment)
several eligible transactions reported to EPA, but not recorded in FARS.
We do not agree with the audit. All of the documents identified in
the attachment we,re recorded in FARS, with the possible of
exception of schedule 870361, which cannot be confirmed at this
time. The Accounting staff cannot locate an entry for this
schedule in FARS, but will research the reason for omission. Once
research has been completed, the auditor will be notified of the
results and will be provided printouts if needed. The Accounting
staff has provided copies of printouts (of confirmed schedules) to
the auditor for his review.
Item three of your supplmental memorandum states that "time sheets for
Accounting personnel were missing for the entire year".
Ne agree that the time sheets requested by the auditor during the
audit process could not be immediately located. The Accounting
staff has located the requested time sheets for Headquarters and
have provided copies to the auditor for his review. Time sheets
for Region VII were located at Headquarters also, but did not
contain the FY 1987 time sheets requested bv the auditor. We will
contact the Region VII Superfund contact and ask that he trv to
locate the 1987 time sheets, and transmit them to Headquarters for
the auditor to review. The Accounting staff will attempt to have
the missing timesheets for Region VII delivered to the auditor by
February 28, 1989.
If vou have anv questions or require additional information, please
contact Vince Velez at 646-3707 or Svlvia Faulkner at 646-4266.
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ATTACHMENT 3
•KCfflWENDATIONS ^OR THE SUPERFUND AUDIT QF FISCAL YEAR 1787
FEUA 016 AUDIT REPORT NO. H-02-89
RECOMENOATION t flNB RECQHMENDATIQN
STATUS
ACHON TAKEM *C RESOLVE
1. Ke recowenc that the 0"ice cf ts«
Caiatroller recsncile Super'uri axpsnm
included on Treasury reoorts '.* iissu
to FE.19's Official accepting 'e::rs? ta
ensure accurate resorting :* S'-:s** j-ii icsts
to EF$.
RESOLVED T1ie Office of the CoiDtrsilar has agreed
»ith the Binding srd is develsoing a
systei tc correct th:s. Action has not
d at tni» tise.
:, Ma recowed that tka 3?fica v t"3
Csioti'sller cor-ect tie rssc't:--:
inaccuracies fou^d th^^ug?1 twa -^\'. :v
: idi the ailocable :-a,":!l ::;*.5 3*
$62.460 te tr,e costs «-e:c".s: v; ;:A.
c Atfa the ehgiale ssce-sss :'
RESDLVEB 4djusti',q entries ^ave been lade and
i detgrtined to non be correct,
RESOLVED Adjusting vines have been tade anc
4 deternrsi -.3 ron it csrrKt.
a ^duc; :UiisJ ::5ts :J «T?.?:3 ':-
Ad;usti-ig '.-.triss 'lavs :eer iase ind
ceternrsd t: now :e co-'sct.
.c;-r=:t.v :y sits t; Er
^dj,3t:":c e-tnes lave been ^afle and
T, iff -2:?i«e.-d thit the Cff.ca •:? f-.a
:i*::r5ller locate records to suc:or-. the
i2i.2*2 ir, questiontd costs or re.uca
s-iSr'fLid expenditures bv that aiount.
4
CLOSED
Ocsstrj'.'.er hj5 located
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