£• PA X
                          TABLE OF CONTENTS
                                                               Pace

  SUMMARY OF RESULTS  	      1

  SCOPE AND OBJECTIVES  	      2

  DETAILS OF REVIEW  	      4

       Annual Report  Chapter  3.0  — Responses At Sites
  ;     With Hazardous Substances  Releases  	      4

       Annual Report  Chapter  4.0  — Site Discovery And
       Assessment	      8

       Annual Report  Chapters  3.0 and 4.0  — Additional
       Comments	      9

       Annual Report  Chapter  5.0  — The National
       Priorities  List  of Sites  . .	     11

       Annual Report  Chapter  6.0  — Enforcement
       Program Activities  	     11

       Annual Report  Chapter  11.0 — Technology-
       Related Research And Development  	     12

       Annual Report  Chapter  14.0 — Executive Branch
       Estimate  Of Resources  Needed To Complete
       Superfund Implementation  	     13

       Annual Report  Preparation  Process 	     13

  EXHIBIT

       Review of Regional Records 	     15
                                          •WDQUARTERS LIBRARY

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      1 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
      /                WASHINGTON. D.C. 20460

                          m 28 1990
                                                  THE INSPECTOR GENERAL

MEMORANDUM

SUBJECT:  Audit Report No. E1SFF9-11-0015-0100227
          Review of the Fiscal Year  1988
          Super fund RejMrt to Congress
FROM:     John C.
          Inspector^ General  (A-109)

TO:       William K. Reilly
          Administrator  (A-100)


SUMMARY OF RESULTS

     We have completed our review of the Environmental Protection
Agency's (EPA) report  to  Congress  on  Progress  Toward Implementing
Super fund:  Fiscal  Year 1988  (Annual  Report).  We   found that while
some sections of  the Annual  Report were accurate and reasonable,
others were not.  Further/ the process the Agency used to prepare
the Annual Report was not timely.   The problems we identified with
the accuracy and timeliness of this  Annual Report were essentially
the  same  as  those we  identified for  fiscal year  1987 (FY87).
However, due to the length of time taken to prepare the FY87 Annual
Report, EPA  was not able  to take corrective  action  on  our FY87
findings  in time  to  affect  the  quality  of the  FY88  data  or
timeliness of the report.  EPA has now established a work group to
improve the Comprehensive Environmental Response, Compensation and
Liability  Information  System  (CERCLIS)  input controls, and  is
performing monthly data quality audits.  Further,  actions  have been
taken to improve  the process for preparing future Annual Reports
in a more timely manner.

     Some sections of  the Annual  Report,  such as key information
presented  in Chapter  5.0  on sites  deleted  from the  National
Priorities List (NPL),  Chapter 6.0 on the enforcement program, and
Chapter 11.0 on  the  Superfund  Innovative  Technology  Evaluation
(SITE)   Program,  were   generally    reasonable  and   accurate.
However, certain information presented  in Chapters 3.0 and 4.0 was
not  reasonable  or  accurate.     Significant  portions  of  the
accomplishments claimed by the regions were  not supported by valid
source documents (see the exhibit at the end of this report), for
several reasons.  In some cases the  source documentation  indicated
the action either did not meet Agency definitions or did  not occur
in fiscal year  1988  ("invalid actions").   In other instances, we
were  unable  to  locate  adequate  supporting  documentation  to

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determine whether  or when the action occurred ("source documents
not located").  Also, program accomplishments figures in the Annual
Report  were not always   complete  because CERCLIS  is routinely
updated months  after the  fiscal year end.

     Appendix  A does  not always  show  the  original estimated
completion  dates for Remedial Investigations/Feasibility  Studies
(Rl/FSs) and Remedial Actions (RAs)  in-process at the end of FY87.
While it identifies  delays that occurred during  FY88,  it does not
identify any delays  which may have occurred in prior years.

     The process used to prepare the FY88 Annual Report  was not
fully effective, due to many of the same  problems that occurred
with  the FY87  Annual  Report.   For example,  the Annual  Report
coordinator's   resources  were  limited,  and   he had  difficulty
obtaining some  key end of fiscal year data.   Also,  the tracking
system available for the  signatory officials was not complete and
accurate, thus hindering their monitoring of the process.  Finally,
the report coordinator was still working on the FY87 Annual Report
when this one was  past due.   As a  result,  the FY88 Annual Report
was submitted  to the  Office  of Management and  Budget (OMB)  for
review one  month later than  last year's  report.   And this Annual
Report was  not  completed until  December  1989,  even though it was
due to Congress in January 1989.

SCOPS AMD OBJECTIVES

     The objectives  of our review were to determine whether the
Annual Report is reasonable and accurate,  as  required by Section
301(h)(2) of  the  Comprehensive Environmental Response,  Compen-
sation, and Liability Act  (CERCLA).

     We began our review on January 30, 1989, at EPA Headquarters
and in Regions 4 and 5.  We completed virtually all of our work by
September 28,  1989,  when EPA sent  the  Annual Report  to  OMB for
review.  However, we also reviewed  the  final  changes made to the
Annual  Report  in  December  1989,  after  OMB's  review had  been
completed.

     Our work  focused on FY88  activities.   Numerous  auditors
familiar with  the  Superfund  program  reviewed the entire  Annual
Report to determine if there were any sections  which did not appear
to be reasonable and accurate.

     We performed detailed audit work in Headquarters and Regions
4  and  5  to  verify  the accuracy  of  selected  key  information
presented in  the  following  Annual Report  chapters  and  related
appendices:

     — 3.0: "Responses At Sites With Hazardous Substance
        Releases";

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     — 4.0: "Site Discovery and Assessment";

     — 5.0: "The National Priorities List of Sites";

     — 6.0: "Enforcement Program Activities";

     — 11.0: "Technology-Related Research and Development"; and

     — 14.0: "Executive Branch Estimate of Resources Needed
        To Complete Superfund Implementation".

     As previously stated, some  of  the  information in the Annual
Report was not  finalized until  December 1989.   In order that our
review would not delay the  Annual Report any further, we began our
field work by using an October 1988  draft, and used updated drafts
as they became available.  We focused our field work on those items
CERCLA specifically required to be  included in the Annual Report.
We performed  detailed audit work in  Regions  4  and  5  because of
their volume of  Superfund activity.  Recognizing regional differen-
ces, we  hoped  in  this manner  to  obtain a balanced,  nationwide
perspective in our review.

     For the  information in  Chapters 3.0, 4.0, 5.0,  and  6.0, we
obtained CERCLIS printouts  in January 1989, and matched the nation-
wide summary totals to  the totals in  the Annual Report.   We also
selected samples of cases for  review in  the pre-remedial, removal,
remedial and enforcement programs.  We did not  secure the printouts
from the CERCLIS database ourselves.  Instead, we relied on those
provided by the  Office of  Solid  Waste  and Emergency  Response
(OSWER) to define our universe of cases.

     For our sample cases,  we  reviewed the source documentation in
Regions 4 and 5  to determine whether the  activities claimed met the
definitions  for valid FY88 actions.   The specific  source  docu-
mentation reviewed varied from activity  to activity.  For example,
for Preliminary Assessment  (PA)  completions,  the  official Agency
definition states that "a PA is complete when the report is review-
ed and accepted  by the region and the PA  completion date is enter-
ed into CERCLIS."  In  accordance with this definition, we reviewed
source documents showing the review and acceptance  of the PA report
by the region, such as the PA report itself and regional logs; we
also reviewed the CERCLIS printout showing the entry of the action
into the database. We performed  this same type of review for each
of the pre-remedial,  removal,  remedial,  and   enforcement  actions
selected for review.  Although virtually every one of our sample
items was  selected at random, we did not  select  a statistically
valid sample.  Therefore,  the results of our review should not be
projected throughout EPA.

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     During our  review of the  FY87  Annual  Report, we  identified
four FA Completions and  one RI/FS  Start  in Region  5  that were
claimed  in   FY87,  but should have been counted in  FY88.   Because
of this,  we  reviewed these  five  cases  specifically to determine
whether they were counted again in the FY88 statistics.
             r
     We reviewed the information presented in the Agency's report
on the  SITE  Program.  Concurrent with our review of the Annual
Report,  the  Office of Inspector  General (OIG)  was conducting a
survey  of the  SITE Program  to ascertain  whether an  audit was
warranted.  To determine if the information presented on the SITE
Program  was  reasonable and  accurate,  we asked  the OIG auditors
surveying the SITE  Program to review this chapter.

     We did not  perform  in-depth  audit  work on Chapter 14.0, for
two  reasons.   First,  most of  it  is budget information  that is
readily available within the Agency.   Second, Section  14.3 was not
added  to the  report until  the  July  1989 draft,  after  we had
completed our field work.

     Throughout the course of our review, we brought the concerns
which we identified to the Agency's attention.   The Agency correct-
ed most of these concerns.

     Except as noted below,  our work was performed in accordance
with the  Government Auditing Standards (1988 revision)  issued by the
Comptroller General of the United States.   We  did not  perform a
full scope audit to determine if the Superfund program  is achieving
the results required by CERCLA,  nor did we perform extensive tests
to determine if internal controls are adequate.   We performed audit
work we believed necessary to determine if key information included
in the Annual Report is reasonable and accurate.  Furthermore, for
the items not tested, nothing came to  our attention which warranted
more detailed  audit work than  that  described in  the DETAILS OF
REVIEW section.

DETAILS OF REVIEW

            Annual Report Chapter 3.0 -  Responses  At
             Sites With Hazardous Substance Releases

Removal Program

     The Annual Report's nationwide and Region 4 and 5 totals for
Removal Starts and Removal Completions differed slightly  from those
on the CERCLIS printouts provided to us.   Nationwide Removal Starts
totaled 328 in the  Annual  Report  and  326 in CERCLIS.  Nationwide

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Removal Completions totaled 282 in the Annual  Report, but only 277
in CERCLIS.  Region 4  and 5 Removal Starts totaled 96  in the Annual
Report and 95 in CERCLIS,  while Region 4  and 5 Removal Completions
totaled 87 in the Annual Report and 85 in CERCLIS.  OSWER officials
attributed these  differences  to  the  fact that the larger numbers
take into account sites with more than one removal action, whereas
the CERCLIS totals equate each site  with  only one such action.

     Of  the  47   Removal  Starts  and  11  Removal Completions  we
reviewed, 51 (88 percent)  were valid  FY88 actions.  However, seven
of the actions were not valid FY88 accomplishments.

     Four of these seven actions were  not valid because, based on
official Agency definitions,  they should have been recorded in a
different fiscal year.  In fact,  one  of these  four was actually an
FY87 Removal Start that was counted in both FY87 and FY88.

     For the other three actions, the source documentation did not
show any evidence that the Agency definitions  of a start or a com-
pletion were  met, regardless of  the fiscal  year involved.   For
example, the Marietta Mercury Spill  site in  Region 4 was counted
as both an EPA-lead first Removal Start and first Removal Comple-
tion, even though the definition was never entirely met in either
case.  Specifically,  EPA  received  notification of  "about a six
ounce  mercury spill"  on  the  floor  of  a  personal  residence  in
Marietta, Georgia.  The On-Scene  Coordinator (OSC) first mobilized
a contractor to assist in  removing the mercury'  The OSC then went
to the residence  and  was  told EPA's  assistance was not required.
The resident of the home said that a  relative would help in remov-
ing the mercury.   The OSC  subsequently stated in a memorandum to
his file  that EPA did not  use the contractor to do any removal
actions at the residence.  EPA paid $1,000 to mobilize the contrac-
tor, even though  the  contractor's services were not needed.

     OSWER Directive  9200.3-1A states  that a  first Removal Start
occurs when removal activity has begun. Furthermore, the directive
states that a  first Removal Completion is counted on the day the
on-site removal action is  completed.   We  believe that the Marietta
Mercury Spill site does not meet the Agency definition of a Removal
Start or a Removal Completion.  In addition, our review of CERCLIS
revealed that  this  site was also counted as  a responsible party-
lead subsequent Removal Start and Removal Completion, because the
resident of the house stated she would clean up the mercury.

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     Figure 1 provides the detailed results  of our removal program
review.
Number in the
   Annual Report

Universe per
   CERCLIS

Sample Size

Valid FY88
   Actions

Source Documents
   Not Located

Invalid FY88
   Actions
                             FIGURE 1
                         REMOVAL PROGRAM

                    Removal Starts

                    Regions:
                    4    5    Total
62   34
62

29


26


 0
33

18


16


 0
96


95

47


42


 0
                       Removal Completions

                         Regions:
                         4    5    Total
                    55   32
55

 7


 6


 0
30

 4


 3


 0
87


85

11


 9


 0
Remedial Program

     Both the Annual  Report  and  the CERCLIS printouts listed 150
RI/FS Starts  nationwide in FY88.   For the two  regions  which we
reviewed, CERCLIS reported 42  RI/FS Starts.   We sampled 13 RI/FS
Starts and determined that all 13 were valid FY88 actions.

     We found that the number of  Records of Decision (RODs) listed
in the Annual  Report as completed nationwide during FY88 was almost
identical to  CERCLIS.   The Annual  Report  listed 152  and CERCLIS
listed 154 RODs in FY88.   CERCLIS identified 37 RODs  for Regions
4 and 5, and all 15 RODs we reviewed were valid FY88 actions.

     The nationwide totals for Remedial Design (RD)  Starts and RA
Starts contained  in  the Annual  Report agreed with those  on the
CERCLIS printouts provided to us.  Of the 99 RD Starts during FY88,
28 were in Regions 4 and 5.  For RA Starts,  these  regions accounted
for 18 of the 72 nationwide.

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     Of the 15 RD Starts and 15 RA Starts  we  reviewed,  29  (97 per-
cent) were valid FY88 actions.  The one invalid action was due to
the funds not being obligated on an EPA-lead  site  as  of the end of
FY88.  The definition of an RD Start for this  type  of  site  includes
obligating the  funds.   Figure  2 provides  the detailed results of
our RD and RA" Starts review.
                             FIGURE 2
                         RD AND RA STARTS
Universe in
   CERCLIS

Sample Size

Valid FY88
   Actions

Source Documents
   Not Located

Invalid FY88
   Actions
                      RD Starts

                    Regions:
                              Total
10   18   28

 4   11   15


 4   10   14


 000


 Oil
                           RA Starts

                         Regions:
                         4    5    Total
8

8


8


0


0
10

 7


 7


 0


 0
18

15


15


 0


 0
     CERCLA Section 301(h)(l)(c) requires  the Agency to include in
the Annual Report  "notice  of  each (feasibility)  study which will
not meet a previously published schedule for completion and the new
estimated date for completion."  The Annual Report addresses this
requirement  in  Appendix A.   It  is  important  for the  reader to
understand that this appendix  shows  "previously published" comple-
tion dates which were  estimated no  earlier than  the beginning of
FY88.  For projects in-process at that time, these dates were taken
from the column 9/30/87 Est. Completion  included in Appendix D of
the FY87  Annual Report.   So  for these projects,  lengthy delays
which may have  occurred prior  to the beginning  of FY88  are not
shown (see Figure 3  for RI/FS examples).   OSWER  officials stated
that the  revised estimated dates  of  completion   contained in the
FY87 Annual Report constituted a  "previously published schedule,"
so  comparing these dates with the new 1988 estimates satisfied the
statutory intent of CERCLA.

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                             FIGURE 3
                   STATUS OF RI/FSB ON  9/30/88
                              Per FY87          Per  FY88
                              Annual Report;   Annual Report;
Site Name

Kellogg-Deering Well Field

Groveland Wells

New Bedford Site
"1/1/87 Est.
Completion"

   2/88

   1/88

   2/88
"Previously Pub.
 Completion Sch.

      2/89

      4/89

      2/89
                   Annual Report Chapter 4.0 -
                  Site Discovery And Asseeament

Pre-Remedial Program

     The  nationwide totals  for PAs  and  Site  Inspections (Sis)
contained  in  the Annual Report agreed with  those  on the CERCLIS
printouts provided to us.  Of the  2,884 PAs completed during FY88,
784 were in Regions 4 and 5.   For  Sis, these regions completed 413
of the 1,237 nationwide.

     Of the 44  PA completions and 31  SI  completions we reviewed,
25 (33 percent) were valid FY88 actions.  Five were not valid FY88
actions; instead, according  to official  Agency definitions, they
should have been recorded in a different fiscal year.   Three of
these five were part of a batch of 74 PA reports actually input to
CERCLIS on November 4,  1988 (FY89),  but which  were erroneously
recorded as November 4,  1987  (FY88).

     In addition, we were  unable  to locate  adequate source docu-
mentation  for  45 (60 percent) of the 75 sample  cases.   Specifi-
cally, in Region 4 we located all  of the reports, but there was no
evidence on the reports,  such as a date and signature, to show that
they had been  reviewed  and accepted by the Agency.  A log was main-
tained of approximately  60 percent of the reports,  but it did not
show review and acceptance.   Further, some of the reports themsel-
ves were undated, and others  were very old,  in one case dating back
to FY81.  Region 4 officials  stated that they did not document the
review and acceptance on  the  reports because  they entered the dates
into a computer database instead.   In Region 5, regional personnel
could not locate some of the  reports.  The regional log was spora-
dically  maintained  during  FY88,  and  as a  result,  in some cases
there  were no entries  for these reports documenting Agency review
and  acceptance.   Figure 4  provides the detailed  results  of  our
review.

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Universe in
   CERCLIS

Sample Size

Valid FY88
   Actions

Source Documents
   Not Located

Invalid FY88
   Actions
                             FIGURE 4
                       PRI-REKEDIAL PROGRAM

                    PA Completions

                    Regions:
                    4    5    Total
170   614   784

 16    28    44


  0    13    13


 16    12    28


  033
 SI Completions

 Regions m.
 4    5    Total


182   231    413

 15    16     31
  0


 15
12    12


 2    17
     The Annual Report  states  that  the  Agency met the January 1,
1988, CERCLA target for completing PAs for all  sites in CBRCLIS as
of October  1986.   However, the reader  should  note  that  the FY87
Annual Report acknowledged that the Agency may not meet a similar
goal for Sis.  Part  of  the reason for this  may be a reduction in
SI completion  volume in FY88.   According  to  Exhibit  1.0-4,  the
number of  FY88 SI completions was  the  lowest in the last five
years, decreasing from FY87 levels by seven percent.  This reduc-
tion  in  volume must have been  anticipated,  because  the Agency
established an FY88 target 16 percent lower than the  FY87 accom-
plishment.  Although the Agency  apparently  exceeded its  own FY88
target for  SI  completions,  this  target  would  not    have   been
sufficient to induce  Agency components to meet  the CERCLA deadline.
              Annual  Report Chaptere  3.0 and  4.0  -
                       Additional Comments

     According  to  OSWER  officials,  CERCLIS was  expanded  and
improved during FY88.  However, as previously discussed, our review
identified concerns with the accuracy of some data in the system.
Further examples of system problems include the following:

          In  December 1988, we requested that Headquarters OSWER
         officials provide us CERCLIS  printouts  from  which  to
         select our samples  for  Regions 4  and 5.   We were initi-
         ally  advised that printouts could not be  provided  due

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         to  "data discrepancies."    During  January  1989,  these
         officials  apparently  believed  the  discrepancies were
         sufficiently resolved, and  we  received our  printouts.

         During  our  field work,  Region 5 officials  advised the
         auditors  that  they considered  the  system to contain
         inaccuracies.

     From our discussions and observations  in  the  two  regions,
we believe that  inadequate  input  controls  continue  to hamper the
accuracy and  reliability of  CERCLIS.   OSWER officials advised us
that a work group has  been  formed to review these input controls
and make recommendations  for  improvements.    In addition,   they
stated they are conducting monthly data quality audits.

     In addition  to  our concern about  the accuracy of  the data,
CERCLIS accomplishments for FY88 differed depending on the date of
the printout.   For example, we obtained three different figures for
Removal Starts in Region 4.   A Headquarters  CERCLIS report dated
October 19, 1988,  listed 62;  the draft Annual Report dated February
23, 1989,  listed  67; and a  Region 4  CERCLIS  printout  dated March
14, 1989, listed  65.

     OSWER  Directive  9200.3-1A established  a  cut-off  date  of
October  17,   1988,  for  producing  final quarter accomplishments
reports.  However, the regions did not adhere to the cut-off date
and continued  to  input  information into CERCLIS months  after the
end of the fiscal year.  OSWER officials stated that for purposes
of completeness,  the Agency  wants to get all accomplishments into
CERCLIS, regardless of lateness.  Nevertheless, since the CERCLIS
runs used  for  the Annual Report were generated shortly  after the
cut-off date,  and since the  regions continued to enter accomplish-
ments into the system, the Annual Report may be understating some
Agency accomplishments.

     The reader should understand that in some instances, activi-
ties conducted at a site are claimed in multiple categories, i.e.
both as Removals and Remedial Actions.  These same activities are
apparently considered  to meet  more  than one  Agency  definition.
For example, at the Region 4 Newport Dump site, the documentation
in the files stated  that "the  remedial action  was initiated on
July 2, 1987 and  completed on October 31, 1987."  Yet the CERCLIS
printouts we  received  indicated that not one,  but  three actions
occurred on October  30,  1987:  a Removal Completion; a  first RA
Completion; and a final RA Completion.   Some Agency officials have
devised the term "removials" to apply to these cases; OIG auditors
in Region 4 have  initiated an audit of this practice.
                                10

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     Following up  on our FY87 review, we  found  that the four PA
Completions and  one RI/FS Start which Region  5  counted in FY87,
but should have  recorded in  FY88,  were not counted again in this
year's  statistics.   However,  based on the  previously discussed
Removal Start' which Region 5 counted in both years, the potential
exists that other accomplishments may also be double counted.


                   Annual Report Chapter 5.0 -
              The National Priorities List Of Sites

     The Annual Report listed five  sites   deleted  from  the  NPL
nationwide in FY88 .   We obtained documentation from Headquarters
which verified that  the  Agency deleted these five sites from the
NPL.  Two  of  the sites deleted were in Region  4, while Region 5
did not have any sites deleted.  We did not do any further work in
Region 4 validating the completion dates for the two  sites deleted.


                   Annual Report Chapter 6.0 -
                  Enforcement Program Activities

     We reviewed  four  categories  of enforcement activities  dis-
cussed in  the Annual Report:   Administrative Orders (AOs); RI/FS
Settlements; RD/RA Settlements; and Referrals.  In most cases, the
nationwide CERCLIS  totals provided to us  agreed  with  the totals
shown in the Annual Report .  The only instance in which the nation-
wide totals did  not agree was  in the AO  category.   The CERCLIS
printouts  showed  202 Unilateral/Administrative  Orders,  while the
Annual Report contained  207 .

     For our samples of cases selected in each activity category,
we were able to locate all appropriate  source documents and verify
that the actions occurred during FY88, as claimed.  Figure 5 out-
lines the number of sample cases reviewed.


                             FIGURE 5
                                CASES REVIEWED
                         Number of Actions       Sample
Enforcement Category     in Regions 4 and 5       Size

Administrative Orders         60                   7

RI/FS Settlements             26                  13

RD/RA Settlements             12                  12

Referrals                     31                   6
                                11

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     The reader  should note that for  these  settlements,  not all
parties to the settlement have to be in agreement, nor all monies
collected, to meet the EPA definition  of  an accomplishment.  For
example, at  the time  of  our review the  Consent Decree  for the
Laskin/Poplar'site had been filed in court, but not yet signed by
the affected  parties,  and  penalty  monies had not  actually been
collected.   There   is,  therefore,  some   degree  of  uncertainty
regarding the final resolution of this case.

     It is important for the reader to understand that the dollar
figures cited in the Annual Report  for  AOs, RI/FS Settlements, and
RD/RA Settlements are  estimates made  by  the  regional officials.
In  most cases  these  are  not  actual  monies  collected  for  the
Superfund, but rather  are  estimates of the amount of money saved
the Federal Government by  having the  responsible  parties  perform
the cleanups.   Regional officials stated  that the  estimates are
based on normal costs to clean up sites similar to those in ques-
tion,  unless more specific  information   is available  to be used.
We  requested  source documents to  validate the amounts of these
estimates in Regions 4  and 5,  but  regional officials were unable
to provide any documentation.

      The Annual Report presents enforcement accomplishments in a
number of different  categories,  based  on  official Agency defini-
tions and statistics tracking.  It is important for the reader to
understand that the  same Superfund site  may  appear   in  more than
one category.  For example  in Region 5, the American Anodco, Inc.,
site was counted in both the Administrative Order and RI/FS Settle-
ment categories.   Thus, the  reader  should not add  together the
numbers of accomplishments  in the  different  categories  to form a
picture of  the  overall enforcement accomplishments  at  Superfund
sites during FY88.


                    Annual Report Chapter 11.0 -
         Technology-Related Research And Development

     We reviewed the information presented in the Annual Report on
the SITE Program.  Concurrent with our review of the Annual Report,
the DIG was conducting a survey  of the  SITE Program.  To determine
if the information presented on the SITE Program was reasonable and
accurate, we asked the auditors  working on the SITE Program survey
to analyze this chapter.   Based  on their  review,  we believe that
the information presented on the SITE Program is generally reason-
able and accurate.
                                12

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    Annual Report Chapter 14.0 - Executive Branch Estimate Of
      Resources Heeded To Complete Superfund Implementation

     We  did  not  perform in-depth  audit  work on the information
in this  chapter.   Much  of  it consists of  FY88 obligations/ the
resource estimates from  the FY89 Operating Plan, and the Agency's
budget  request  for  FY90,  all  of  which  is   readily  available
information.   Further,  Section  14.3,  on the Agency's estimate of
post-FY90 costs  to  clean up  the  existing NPL, was  added  to the
draft report after we completed our field work.  Consequently, we
did not have sufficient time to  perform an  in-depth review of this
information prior to the Agency's scheduled issuance of the final
report.  However,  we do wish to emphasize that the projected dollar
figure of approximately $18.6 billion does  not  address sites which
are not presently proposed for listing or actually on the NPL.


               Annual Report Preparation Process

     As with last  year's  Annual Report, the process used to prepare
this year's was not fully effective.  Although this Annual Report
was due to Congress January  1,  1989,  it was not submitted to OMB
for review until September 1989, one month later than last year's
report.  While the Agency improved the overall  timeliness of issu-
ing the  report,  it  was  still not completed until  December 1989.
Many of the reasons for  the Annual Report's lateness are the same
as last year.  These issues need to be addressed if future Annual
Reports are to be submitted timely to Congress.

     Part of  the  reason that the Annual  Report encountered such
difficulties is that the  coordinator's resources were limited, thus
inhibiting the completion of  the prior year's  Annual Report.   In
fact, while we were performing our review of the FY88 Annual Report
the coordinator was still  devoting  much of his time  to  the FY87
Annual Report.  We  finished  almost  all of  our  field work for the
FY88 review prior to  the Agency's transmittal  of  the FY87 Annual
Report to Congress.

     Another factor contributing to the Annual Report's delay was
the fact that the  coordinator was unable to secure selected accom-
plishment figures in a timely manner from Agency offices  respon-
sible for compiling them.   For  example,  as previously discussed,
we were initially  unable to secure  CERCLIS  printouts  from OSWER
two months after the end of the fiscal year, due to "data discre-
pancies ."
                                13

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     Accurate and complete monitoring information is not available
to the signatory officials.  The Director, Office of Emergency and
Remedial Response, has a tracking system to monitor the status and
progress of the Annual Report.  However, the tracking system avail-
able  for  ther Administrator  and the  Assistant  Administrator for
OSWER is  incomplete  and inaccurate.   In June  1989, we  secured a
printout from the "Statutory Deadlines Tracking System", which con-
tained no record of the   FY88  Annual   Report.    Furthermore,  the
printout showed that the  FY87  Annual  Report  was  completed  on
February 26, 1988, when, in fact, it was not signed by the Admini-
strator until  over a year later.   Without accurate  and complete
monitoring  information,  officials  responsible  for  signing  the
Annual Report cannot ensure it is completed on time.

     Finally, we are concerned  that delays  in  the  FY88  Annual
Report will delay  future Annual Reports past the January due date
to Congress.  Preparation of the FY89 Annual Report did not begin
until past the  point  in  time necessary to meet the CERCLA deadline.

     CERCLA states that the   authorizing committees   in Congress
will hold oversight hearings  after receiving the  Annual Report, to
ensure that the statute is being implemented according to the pur-
poses of the law and congressional  intent.   The delay in issuing
the FY88 Annual Report will not  only delay that oversight process,
but also did not afford Congress the opportunity to  consider any
needed action during the FY90 appropriations cycle.
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               EXHIBIT
  REVIEW  OF  REGIONAL RECORDS
      71
                       LEGEND
HC-MQCDUL MOKWAL  KQCDW.
     PROGRAMS
MMJD FVK ACTONS
                           SOURCE MOMENTS N0T LOCOED
                           VWJD FYtt
               15

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