dEPA
United Stsws
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9275.1-01
TITLE: Removal Financial Management Instructions
APPROVAL DATE: July 31, 1984
EFFECTIVE DATE: July 31, 1984
ORIGINATING OFFICE: cms/om
B FINAL
D DRAFT
STATUS:
REFERENCE (other documents}:
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE D
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. T'0460
JUL 3 I 1934
MEMORANDUM
SULlO WASTE AND CM6 H(if NC? HtSPf.\SE
OGWER Directive 9275.1-1
SUBJECT: Removal-) Financial Management Instructions
FROM: tee 'w. Thomas
Assistant Administrator
TO: Regional Administrators
Regions I - X
Attached are the Removal Financial Management Instructions.
These instructions were developed in order to ensure a smooth
transition in implementing the April 16, 1984, Superfund
delegations. The package was prepared in .close cooperation
with your program and management division staff. Comments
received from Regions were incorporated as shown in the
attached comment matrix.
The Removal Financial Management Instructions provide a
planning structure for you to identify and assign Regional
financial responsibility. Since each Region is organized
differently, the document does not specify the organizational
location of the responsibility. Instead, it provides guidelines
and standards for what must be done. It is up to you to establish
organizational responsibility for your new financial management.
functions.
On June 1, 1984, you wore issued an allowance by the Office
of the Comptroller to be used to fund removal actions.
These allowances were based on your Site Stabilization Accom-
plishment Plans. We must keep careful track of obligations
against these allowances because we have to submit monthly
reports to Congress and because, as we approach the end of the
year, we must make sure each Region's legitimate response
needs are met.
Consequently, you are being asked to send Headquarters,
within six working days of the end of each month, a list of
your open commitments and obligations (see page 10 of the
instructions). Your first report is due to Becky Kennedy of
OERR's Funds Control Center (WH-548D) by August 8, 1984, and
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OSWER Directive 9275.1-1
should cover both June and July. This is an extremely important
responsibility and I ask your cooperation in establishing a
mechanism within your Region that will ensure this deadline
is met each month. We are investigating alternative means
of obtaining this financial information in order to reduce the
reporting burden on the Regions.
Bruce Engelbert, at FTS 382-2441, can answer any questions
you or your staff may have.
Attachment
cc: Edward V. Fitzpatrick
Louis F. Gitto
Herbert Barrack
William L. Librizzi
Stephen R. Wassersug
Alvin Morris
Howard D. Zeller
Thomas W. Devine
William H. Sanders, III
Robert Springer
John S. Fleeter
Delores J. Platt
Oscar Ramirez
John Wickland
Jack W. Hoffbuhr
Irwin Dickstein
Charles Murray
Nora McGee
Harry Seraydarian
Gary O'Neal
Region
Region
Region
Region
Region
Region
Region
Region
Region
Region
Region
Reg ion
Region
Region
Region
Region
Region
Region
Reg ion
Reg ion
I
I
II
II
III
III
IV
IV
V
V
VI
VI
VI
VII
VIII
VIII
IX
X
IX
X
Morgan Kinghorn
Brian Polly
Gordon Takeshita
Harvey Pippen
Dave Ryan
Dave O'Connor
Stan Fredericks
Bruce Engelbert
Donald Kraft
Becky Kennedy
Billie Perry
Jack Stanton
Hans Crump
Thad Juszczak
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OSWER Directive 9275.1-1
SUPERFUND REMOVAL PROGRAM
FINANCIAL MANAGEMENT AUTHORITY, RESPONSIBILITIES
AND PROCEDURES
U.S. Environmental Protection Agency
Office of Emergency and Remedial
Response
July 11, 1984
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OSWER Directive 9275.1-1
SUPERFUND REMOVAL PROGRAM
FINANCIAL MANAGEMENT AUTHORITY, RESPONSIBILITIES
AND PROCEDURES
Under the approved Superfund delegations, the Regional
Offices have additional authority and responsibilities for
significant portions of the removal program. This
includes both programmatic authority, described in detail
in the Superfund Removal Guidance, and financial authority
described in this document.
Regional financial authority consists of three
distinct, but interrelated, parts: approval, funding and
obligation (award). Authority to approve removals is
contained in the Superfund delegations package. In
general, Regional approval authority under the removal
program will include all direct response activities
costing less than $1 million per site/spill as contained
in the Superfund delegations.
Funding authority will be contained in the Regions'
allowances, and will provide extramural funding
(commitment authority) for the following removal
mechanisms:
Emergency Response Cleanup Services (ERCS)
Delivery Orders
Orders for Services, Notices to Proceed and
Letter Contracts
Cooperative Agreements (CA)
Designated Interagency Agreements (IAG)
FEMA allocation transfer lAGs for temporary
relocation
Coast Guard lAGs for assisting in EPA
removals (Coast Guard intramural costs)
Other agencies as appropriate (site-specific
only) .
Contract obligation authority is delegated by the
Procurement and Contracts Management Division (PCMD).
Regions have authority to obligate the Government for
amounts up to $250,000 under ERCS Delivery Orders, up to
$2,500 under Orders for Services, up to $10,000 under
Notices to Proceed and up to $50,000 under Letter
Contracts with state and local governments. Obligations
for increments in excess of these amounts must be made in
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OSWER Directive 9275.1-1
accordance with Federal acquisition regulations by
PCMD-Headquarters, with the exception of Orders for
Services, which may never exceed $2,500 nor be modified to
change the amount of the original award. Superfund
Cooperative Agreement obligation authority is delegated in
the Superfund delegations package (delegation 14-1-B); IAG
award authority has been delegated in delegation 1-11.
The upper obligation limit under Cooperative Agreements
and lAGs is the amount approved for the removal action.
The upper obligation limit under Orders for Services is
$2,500. FEMA allocation transfer lAGs, referred to
throughout this document as transfer lAGs, must be
processed through the Office of the Comptroller as
described in Section VI.
This document describes removal approval, funding and
document processing in detail. The attachment to this
document spells out all acronyms used in the document.
I. DELEGATIONS OF AUTHORITY
The following highlights the delegations of financial
management authority in the removal program, subject to
the general restrictions noted below:
RAs will approve the initiation of removal
actions costing up to $1 million in obligations
per site/spill (including all extramural costs
and Headquarters and Regional intramural costs,
but excluding all enforcement costs) , regardless
of duration (RAs will approve extensions beyond
the 6-month limit) (14-1-A)
AASWER will approve the initiation of removal
actions costing over $1 million, and will approve
waiver of statutory $1 million limit (14-2)
RAs may enter into Superfund State Contracts
(which are not procurement contracts) and award
Cooperative Agreements with States to perform
removal actions (14-1-B)
RAs may award lAGs (1-11)
On-Scene Coordinators (OSC) have limited
authority to obligate funds for removal actions
(up to $2,500 for Orders for Services, up to
$10,000 for Notices to Proceed and up to $50,000
for Letter Contracts with state and local
governments) that have been approved by the
appropriate official; ERCS Ordering Officers can
obligate Delivery Orders for up to $250,000 for
approved actions
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OSWER Directive 9275.1-1
RAs may redelegate authority to the OSCs to
approve the initiation of removal actions up to
$50,000 (within the RA's $1 million ceiling); the
$1 million approval authority may be redelegated
to Regional Division Directors, but only where an
action is expected to last six months or. less
(14-1-A)
RAs may redelegate award authority for CAs and
lAGs to Regional Management Divisions; may also
redelegate to Management Divisions authority for
funds certification (commitment) (14-1-B).
The following restrictions will apply to the Regional
approval of removal actions:
Obligations from the fund in excess of $1 million
per site/spill will require written waiver by
AASWER
RAs must be granted a waiver by AASWER to exceed
the $1 million limit before approving removal
actions which would result in total extramural
obligations at any one site of more than $900,000
Regions must comply with directives issued by
AASWER
Contract obligation authority is subject to
Federal acquisition regulations and contracting
officer warrants issued by PCMD.
II. REGIONAL OFFICE ALLOWANCES
Each Regional Office will be issued an allowance by
the Office of the Comptroller to be used to fund removal
actions. The Regions will request annual removal funding
in the Site Stabilization Accomplishments Plan (SSAP),
which will be broken out by quarter. The approved SSAP
will determine the amount of the annual allowance, and the
quarterly allocations of that allowance. The allowance
will be issued as follows:
October 1 for first and second quarters
March 1 for third quarter
June 1 for fourth quarter.
End of fiscal year adjustments may be necessary to
accommodate unforeseen events. In addition, Headquarters
will maintain a contingency reserve to fund emergency
actions.
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OSWER Directive 9275.1-1
Regions must manage and control their allowances in
accordance with Agency directives, e.g., Accounting
Manual. Headquarters will provide assistance and
oversight as required.
If a Region believes their current allowance is
insufficient to last the rest of theiquarter, the.Program
Division should submit a request to Jack Stanton,
Director, ERD/ detailing the following:
Actual obligations (year-to-date)
Open commitments
Additional allowance needed
Justification for additional funds.
This request should be submitted to ERD by the twelfth day
of the month preceeding the month for which the additional
funds will be needed. When approved, the additional funds
will be transferred by the Office of the Comptroller into
the Region's allowance on the first day of the following
month.
III. FINANCIAL MANAGEMENT RESPONSIBILITIES
The following EPA organizational units have financial
management responsibilities for the Superfund removal
program. These responsibilities are detailed in
Exhibit 1. , Since Regions may be organized differently and
internally may assign responsibilities as best meets their
needs, these descriptions are intended to serve as
guidelines to assist Regions to carry out their functions.
(1) Regions
Regions will in general be responsible for
approving, funding, obligating and implementing the
primary removal response activities within the
limitation of the delegations. The Regional
Administrator has authority to approve and fund
removal activities, to award Cooperative Agreements
and lAGs, and to enter into non-procurement Superfund
State Contracts. Some of this authority may be
redelegated, in whole or in part, to Regional Division
Directors or OSCs. The Management Division, e.g.,
Administrative Services Division, Office of Policy and
Management, etc., will be responsible for the
management and control of the Region's allowance and
financial processes, and the Cooperative Agreement and
IAG award processes. The Program Division, e.g.,
Waste Management Division, Office of Emergency and
Remedial Response, Environmental Services Division,
etc., will initiate and direct all removal response
activities in the Region.
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OSWER Directive 9275.1-1
(2) Headquarters
The Office of Solid Waste and Emergency Response,
as the national program manager, is generally
responsible for maintaining program consistency,
providing necessary guidance and directives, and
reporting on national program activities and
accomplishments.
The Assistant Administrator for Solid Waste and
Emergency Response (AASWER) is delegated the primary
authority for these Headquarters functions, but may
redelegate selected authority to OERR managers. The
non-response (non-site-specific) portions of the
removal program will be funded and coordinated in
Headquarters. The Office of Administration and
Resources Management (OARM), through the Procurement
and Contracts Management Division (PCMD), will carry
out its contract award and management
responsibilities. The Financial Management Division
(FMD) of OARM (Office of the Comptroller) will provide
accounting systems, policies and procedures, billing
and collections functions, support to cost recovery
and. other financial functions. The Grants
Administration Division (GAD) of OARM will provide
national guidance on the processing and award of
Cooperative Agreements and lAGs. The Budget Division
of OARM, (Office of the Comptroller) will issue,
reprogram and transfer allowances.
(3) Servicing Finance Offices
The field organizations that play a role in
financial management of the removal program are FMD's
Servicing Finance Offices (SFO). The SFOs provide
accounting services and entry into the Financial
Management System (FMS) for contracts (SFO-Research
Triangle Park) and reimbursable lAGs (SFO-Cincinnati);
services for Superfund Cooperative Agreements will be
provided by Regional Offices.
IV. SUPERFUND ACCOUNT NUMBERS
The ten-digit Superfund account number structure is
essentially the same as that used throughout the Agency,
with the addition of identifiers to track costs by
site/spill and activity. The Superfund account number
identifies the year in which money was authorized; the
appropriation, program element, allowance holder,
responsibility center and activity to which the spending
action will be charged; and, for site-specific actions,
the site/spill identifier and site-specific activity code
for which funds will be used. All Regional extramural
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OSWER Directive 9275.1-1
removal funding must be charged site-specifically. This
requires the following structure for the last three fields
of the account number: 8th field--site-specific activity
code; 9th and 10th fields--site/spill identifier. The
account number is assigned to the Procurement Request (PR)
or Commitment Notice (CN) at the time a removal is
funded. If a removal is initiated during non-working
hours, the OSC should use the pre-assigned emergency
site/spill identifier that the Regional Management
Division has given to each Program Division, or follow
alternative procedures established by the Region. On the
next working day, the OSC must notify the Management
Division that the emergency identifier was used, and
report the site name and state and the response activity
code. The Management Division must set up the account
number in FMS on that same day.
When assigning Superfund account numbers, the
Management Division needs to determine if the incident is
at a new or existing site/spill. This process is
complicated by the fact that:
The removal, remedial and enforcement programs
will all be requesting account numbers
They may be funding work at the same sites/spills
The same site/spill may have several different
names (aliases).
If the account number is for an existing site/spill,
the appropriate assigned identifier should be used. If it
is for a new site/spill, the next sequential identifier
should be issued and recorded. For new account numbers,
the Management Division will set up the account number in
FMS. At the same time, each Regional Management Division
will provide the Financial Management Division-
Headquarters, Financial Reports and Analysis Branch, with
the new sites added to the identifier list to assist in
their accounting control process and for special reporting
requirements. For the balance of FY 1984, the OERR FCC
will assign site/spill identifiers; additional guidance
will follow.
V. DOCUMENT CONTROL NUMBER
The Document Control Number (DCN) is a unique
six-digit number assigned by the Region that identifies
each individual financial transaction. The DCN is
assigned to the PR or CN at the time a removal is funded.
If a removal is initiated during non-working hours, the
OSC should use the pre-assigned DCN which has been given
to each Program Division, or follow alternative procedures
established by the Region.
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OSWER Directive 9275.1-1
One DCN should be used for each commitment at a site.
The DCN is entered on the PR or CN prepared and signed in
the Region. The corresponding obligating document, e.g.,
ERGS Delivery Order, must have the same DCN and accounting
data as the PR. DCNs are not needed for transfer lAGs
with FEMA.
VI. FINANCIAL DOCUMENT PROCESSING
There are three basic types of financial documents
needed to undertake a removal action. Although these
documents should generally be prepared and processed
sequentially, the nature of the removal program is such
that the documents often are processed simultaneously or
out of order. FEMA IAG transfer allocations are processed
using different documents, as described at the end of this
section; there is no Commitment Notice for these actions.
Since each Region may establish its own responsibilities
and redelegations under Superfund, the following
description is intended to guide, not mandate, the
Region's internal processing of documents.
The first type of document is used to approve the
removal action. There is one document of this type, the
Action Memorandum (formerly 10-point document). For
removals expected to cost less than $1 million, the
Regional Administrator, or other Regional staff if
redelegated, signs the Action Memo. Regions must send a
copy of the signed Action Memo to the Response Operations
Branch of ERD-Headquarters within five days of signature.
These documents are needed for tracking and Congressional
response purposes. For removals greater than $1 million,
the AASWER must sign and approve the Action Memo. See
Exhibit 2 for an outline of this process.
The second type of document is used to commit funds
for a removal action. There are two types of commitment
documents: The Procurement Request (EPA Form 1900-8) and
the Commitment Notice (EPA Form 2550-9). The PR is used
to commit funds for contracts; the CN to commit funds for
Cooperative Agreements (CAs) and reimbursable Interagency
Agreements (lAGs); transfer lAGs are not committed and
therefore do not require a CN, a DCN or an account
number. The Program Division will prepare the PR or CN
and obtain all necessary program approvals and signatures,
and will send the document to the Management Division for
addition of accounting information (account number,
appropriation and DCN). The Management Division will also
check that the action has been approved. The RA as
Allowance Holder, or designee, will certify the
availability of funds and set aside the required funds on
the allowance1s Document Control Register. The approved
PR or CN is entered as a commitment into FMS, directly by
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OSWER Directive 9275.1-1
the Region for Cooperative Agreements and by the SFO/RTP
for contracts or SFO/Cincinnati for reimbursable lAGs.
Disposition of the documents after commitment shall be as
* _ ^ ^ -_.•_
follows:
PRs for ERCS -- if within Regional Ordering
Officer's ordering authority, i.e., for amounts
up to $250,000, return PR to Program Division to
obligate funds and retain copy of PR in Regional
contract file, with original sent to
PCMD-Headquarters for official contract file. If
greater than $250,000, prepare PR for the total
cost; obligate Delivery Order for $250,000; and
send originals of PR and obligated Regional
Delivery Order to PCMD in Headquarters for
obligation of increment over $250,000. Finance
copy of PR is sent to SFO-RTP for entry of
commitment in FMS.
PRs for Letter Contracts, Notices to Proceed and
Orders for Services — if within Regional OSC's
contracting authority, i.e., amounts up to
$50,000, $10,000 and $2,500, respectively, return
PR to Program Division to obligate funds and
retain copy of PR in Regional contract file, with
original sent to PCMD-Headquarters for official
contract file; if greater than Region's
contracting authority, prepare PR for the total
cost and obligate up to the limit of Regional
authority (except for Orders for Services, which
may never exceed $2,500); send original of PR and
original signed Regional contract to PCMD in
Headquarters for obligation of increment in
excess of Regional authority. Finance copy of PR
is sent to SFO-RTP for entry of commitment in FMS.
CNs for Cooperative Agreements and reimbursable
lAGs -- send with remainder of funding package
(CA application, Assistance Funding Order and
Special Conditions for Cooperative Agreements;
transmittal memo and EPA Form 1610-1 for lAGs) to
Regional Grants office. For transfer lAGs,
prepare EPA Form 1610-1 and a transmittal memo;
the transmittal memo should include a funds
certification and reservation statement, such
as: "I certify that funds are available for this
project, and have reserved funds in the amount of
$ for this purpose;" once signed, send
these documents to the Regional Grants Office.
CNs for reimbursable lAGs are sent to
SFO-Cincinnati for entry of commitment in FMS.
Commitments for Cooperative Agreements are
entered in FMS in the Regions.
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OSWER Directive 9275.1-1
See Exhibit 3 for an outline of this process.
The third type of document is the obligating
document. Six documents of this type are used in the
removal program. They are:
ERCS Delivery Order, which .is obligated-by a
Regional Ordering Officer for amounts up to
$250,000; PCMD in Headquarters will modify Orders
to obligate amounts over the Regions' $250,000
authority, and will award all modifications to
change the original amount
Letter Contract with state and local governments,
which can be obligated by a Regional OSC for
amounts up to $50,000; PCMD in Headquarters will
obligate amounts over the Regions' $50,000
authority and will award all modifications to
change the original amount
Notice to Proceed, which can be obligated by a
Regional OSC for amounts up to $10,000; PCMD in
Headquarters will modify Notices to obligate
amounts over the Regions' $10,000 authority and .
will award all modifications to change the amount
Order for Services, which can be obligated by a
Regional OSC for amounts up to $2,500; an Order
for Services may never exceed $2,500
Cooperative Agreement, which is awarded by the
Regional Administrator; the limit on award amount
is the amount approved for the removal action
IAG, which is signed by the RA, but is not
obligated until executed by the other Federal
agency.
Note that Superfund State Contracts, which outline state
and EPA responsibilities and provide required state
assurances under CERCLA, are not obligating documents.
They are negotiated and signed in the Regions.
Obligating documents must be processed in accordance
with guidance-issued by PCMD, GAD and FMD. Regions will
make obligations/awards as noted above. For CAs, Regions
are responsible for entering obligations into their
Document Control Register and into FMS. For reimbursable
lAGs, copies of executed obligating documents must be sent
to SFO-Cincinnati for entry into FMS. Transfer lAGs with
FEMA must be coordinated with the Office of the
Comptroller. For contracts awarded by Regions under
Ordering Officer or emergency contracting authority,
copies of obligating documents must be sent to the SFO-RTP
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OSWER Directive 9275.1-1
for entry into FMS and to PCMD for definitization and
filing"in the official contract file. For contracts
awarded by PCMD, they will be responsible for making
distribution to the Region and to SFO-RTP. Modifications
to all contract awards, whether originally made by the
Region or PCMD, will be made by PCMD; the procedures for
PCMD contract awards should be followed. See Exhibit 4
for an outline of the obligation process.
For FEMA lAGs, which are allocation transfers, funds
are transferred to FEMA via SF-1151, Non-expenditure
Transfer Authorization. This transfer is processed by the
Office of the Comptroller — the Budget Division for the
required change request and FMD-Headquarters, Financial
Reports and Analysis Branch, for the SF-1151. Regions
must obtain from FEMA a quarterly outlay plan with each
signed transfer IAG, and must forward one signed copy of
the IAG, a signed change request for transfer of funds and
an outlay plan to both:
FMD, Financial Reports and Analysis Branch,
attention: Ivery Jacobs
Office of the Comptroller, Budget Division,
attention: Liz Milstead.
VII. CONTRACTOR INVOICES
Contractors will include, on the Program Division's
copy of the invoice or voucher for payment, a
certification statement to be signed by the OSC or
Ordering Officer. The statement will indicate that the
services for which the contractor is billing have been
provided. A typical certification statement to be used
is: "I certify to the best of my knowledge and belief
that the services shown on the invoice have been performed
and are accepted." The OSC or Ordering Officer must sign
the certification and, within 5 days, forward the
certified copy of the invoice or voucher to SFO/RTP.
Additional guidelines and procedures on processing
contractor invoices are included in the "Emergency
Ordering and Acquisition Procedures" and "ERCS Users
Manual."
VIII. REPORTING REQUIREMENTS
The OERR Funds Control Center (OERR/FCC) is
responsible for preparing periodic and ad hoc financial
status reports on the removal program. For these reports
to be both timely and comprehensive, FCC needs to get from
the Regions information on extramural obligations. This
information will be obtained by running an FMS report on
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OSWER Directive 9275.1-1
the fifth working day of each month for the Regions'
obligations. Since not all Since not all obligations will
be in FMS at that time, a Region must submit a
supplemental report including those extramural obligations
that have not been entered into FMS. To be included in
the previous month's status report, this Regional report
must be received by FCC no later than the sixth working
day of the month and must contain, for each obligation:
Document Control Number
Account Number
Site/spill name
Amount of open commitments
Amount of obligation
Date of obligation.
Reports should be sent to:
Becky Kennedy
OERR Funds Control Center
WH-548D
FCC will not verify the Regional information, but will
compile various reports using the data in FMS supplemented
by that submitted by the Regions. Additional guidance on
reporting requirements will follow.
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OSWER Directive
Exhibit 1
Financial Management Responsibilities
(Removal Program)
REGION
Regional
Administrator
Management
Division
Authority to approve removal actions up to
$1 million, regardless of duration (also approves exemption
beyond 6-month limit)
Authority to award Cooperative Agreements and lAGs
Authority to enter into Superfund State Contracts
(non-procurement)
May redelegate selected authorities to Division
Directors/OSCs
Assigns account numbers and DCNs to all Regional commitment
and obligation documents
Issues site/spill identifiers for Region effective
October 1, 1984
Processes all commitment documents for Regional contracts
and reimbursable lAGs; sends copy of PR or CN to SFO/RTP or
SFO/Cincinnati for entry into FMS
Enters Cooperative Agreement commitments, obligations and
drawdowns into FMS
Processes Cooperative Agreements and designated lAGs,
including assigning CA and IAG identification numbers; may
award agreements if authority redelegated
Maintains files of financial documents
Prepares required financial reports
Sets up account numbers (new obligational authority only)
in FMS
Controls allowance, maintains DCR and reconciles
transactions
Maintains fiscal oversight of Cooperative Agreements
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OSW1JK Directive 9275.1-1
Exhibit 1 (cont'd)
Financial Management Responsibilities
(Removal Program)
Program
Division
Obligates ERCS Delivery Orders up to $250,000
Obligates Orders for Services up to $2,500, Notices to
Proceed up to $10,000 and Letter Contracts up to $50,000
Initiates removal actions; prepares PRs/CNs and
work statements
Reviews and certifies invoices
Initiates and approves TDDs under TAT contract
Prepares Action Memos and forwards to ERD
Drafts SSAPs
Works with states to develop Superfund State Contracts and
Cooperative Agreements
HEADQUARTERS
AASWER
to
I
Formally issues removal guidance and directives
Approves removal actions expected to cost or actually
costing over $1 million
Approves waiver of statutory $1 million limit
Approves SSAPs
May redelegate selected authorities to OERR
OERR/FCC
Prepares various Superfund financial reports
Prepares Superfund-specific guidance and directives
Implements and oversees compliance with Agency financial
management policies and procedures
Processes and commits funds for TAT and ERCS management and
award (TAT) or incentive (ERCS) fee
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OSWfcR Directive 9275.
Exhibit 1 (cont'd)
Financial Management Responsibilities
(Removal Program)
OERR/ERD
Provides guidance and coordination for ERGS contracts
Coordinates ERGS performance incentive process
Initiates TAT funding and rebid; coordinates and manages
TAT performance evaluation; shifts TAT resources as
necessary
Coordinates SSAP approvals and amendments
Drafts removal guidance and directives and coordinates
agency review
PCMD
Awards, administers and modifies ERGS and TAT contracts
Definitizes all ERCS Delivery Orders and Regional emergency
contracts (Order for Services, Notice to Proceed and Letter
Contract)
Obligates ERCS Delivery Orders for amounts in excess of the
Regions' $250,000 authority
Modifies Notices to Proceed and Letter Contracts to
obligate amounts in excess of the Regions' $10,000 and
$50,000 obligating authority
Awards all contract and Delivery Order modifications
Maintains official contract files
FMD
Promulgates Agency-wide accounting policies and procedures
Maintains and implements the official Agency-wide
accounting systems
Assists in assembling financial cost recovery documents
and FMS print-outs
Bills and monitors payments for state cost shares under
Superfund State Contracts
Sets up carry-over account numbers in FMS
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OSWEk Directive 9275.1-1
Exhibit 1 (cont'd)
Financial Management Responsibilities
(Removal Program)
GAD
Transfers official CA and IAG files to Regions
Issues guidance for the processing and award of CAs and lAGs
SFO' S
SFO/RTP
Enters commitments for ERCS and other contracts into FMS
Enters obligations and payment information into FMS for
ERCS and other contracts
Processes invoices for ERCS and other contracts
SFO/Las Vegas
Transfers official files and responsibilities for CAs to
Regions
SFO/Cincinnati
Ul
i
Processes invoices for lAGs; enters commitments,
obligations and payments for reimbursable lAGs into FMS
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OSWER Directive 9275.1-1
Exhibit 2
Financial Document Processing -
Removal Action Memorandum
1. Regional Program Division drafts Action Memo (formerly
10-point document).
2. If removal expected to cost no more than $1 million,
forwards Action Memo to Regional Administrator; if
expected to cost more than $1 million, forwards Action
Memo to AASWER.
3. RA or AASWER approves Action Memo.
4. Copy of Action Memo sent to ERD/Response Operations
Branch within 5 days of signature.
5. Original Action Memo returned to Regional Management
Division for filing; copy to Regional Program Division.
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OSWER Oirective 9275.1-1
Exhibit 3
Financial Document Processing -
Removal Commitment Documents
1. Regional Program Division prepares funding package:
Contracts -- PR plus statement of work
Cooperative Agreements -- CN, Assistance Funding
Order, Special Conditions plus Application
Reimbursable lAGs — CN, transmittal memo plus
EPA Form 1610-1
Transfer lAGs -- Transmittal memo (with
certification and reservation statement) plus EPA
Form 1610-1.
2. Commitment document and remainder of funding package
undergoes Regional legal and administrative review.
3. Regional Management Division adds accounting
information (account number, appropriation and DCN)
and certifies availability of funds; enters commitment
in OCR and directly into FMS for Cooperative
Agreements, sends document to SFO/RTP for contracts or
SFO/Cincinnati for reimbursable lAGs for entry of
commitment into FMS. For transfer lAGs, funds are
reserved from the Regional allowance but are not
committed in OCR or FMS.
4. For removal actions expected to cost no more than SI
million, RA approves action; for actions expected to
cost more than $1 million, AASWER approves action.
5. Distribution of commitment document/funding package
depends on type of funding mechanism:
ERCS Delivery Order not more than $250,000; Order
for Services, Notice to Proceed or Letter
Contract not more than $2,500, $10,000 and
$50,000, respectively — return to Regional
Program Division for obligation
ERCS Delivery Order greater than $250,000; Notice
to Proceed or Letter Contract greater than
$10,000 and $50,000, respectively -- return to
Program Division for obligation of amount within
Regional authority; send to PCMD-Headquarters for
modification of Delivery Order or contract to add
increment in excess of Regional obligating
authority (also to be used for modifications to
all contracts)
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OSWER Directive 9275.1-1
Exhibit 3 (cont'd)
Cooperative Agreement or IAG -- send to Regional
Grants office for award.
6. Originals of all PRs must be sent to PCMD-Headquarters
to be included in official contract file.
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OSWER Directive 9275.1-1
Exhibit 4
Financial Document Processing -
Removal Obligating Documents
1. Award Official depends on type of funding mechanism:
a. ERGS Delivery Order not more than $250,000 --
Regional Ordering Officer
b. Order for Services, Notice to Proceed or Letter
Contract within Regions' obligating authority,
i.e., for amounts not more than $2,500, $10,000
and $50,000, respectively — OSC
c. Modifications to ERCS Delivery Orders, Notice to
Proceed and Letter Contracts to obligate amounts
in excess of Regions'obligating authority of
$250,000, $10,000 and $50,000, respectively, and
modifications to change all original obligation
amounts -- PCMD Headquarters
d. Cooperative Agreements -- RA
e. lAGs -- RA
2. For items "a" and "b" above, distribution after
signature is:
PCMD -- for definitization and filing in official
contract file (original)
ERD - Removal Operations Branch -- for
information purposes
SFO-RTP — for entry into FMS and filing in
official file
Regional Management Division -- For entry into
OCR and filing in Regional file.
3. For item "c" above, distribution after signature is:
PCMD — for filing in official file (original)
ERD - Removal Operations Branch -- for
information purposes
SFO-RTP -- for entry into FMS and filing in
official file
Regional Management Division -- for entry into
OCR and filing in Regional file.
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OSWER Directive 9275.1-1
Exhibit 4 (cont'd)
4. For item "d" above, distribution after signature is:
ERD - Removal Operations Branch — for
information purposes
Regional Management Division — for entry into
OCR and FMS and filing in pfficial file.
(original).
5. For item "e" above, distribution after signature is to
the recipient Federal agency. After signature by the
Federal agency, distribution is:
ERD - Removal Operations Branch -- for
information purposes
Regional Management Division — for entry into
DCR and filing in official file
SFO/Cincinnati — for entry into FMS and filing
in official file (original).
FEMA lAGs (original) with quarterly outlay plans and a
change request to transfer funds must be forwarded to
the Office of the Comptroller, Budget Division, with a
copy to FMD-Headquarters, Financial Reports and
Analysis Branch, to transfer funds by SF-1151 to FEMA.
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OSWER Directive 9275.1-1
ATTACHMENT
Acronyms Used in Removal Financial
Management Procedures
AASWER - Assistant Administrator for Solid Waste and
Emergency Response
CERCLA - Comprehensive Environmental Response,
Compensation, and Liability Act of 1980
(Superfund)
CA - Cooperative Agreement
CN - Commitment Notice
DCN - Document Control Number
OCR - Document Control Register
ERCS - Emergency Response Cleanup Services
ERD - Emergency Response Division
FEMA - Federal Emergency Management Agency
FMD - , Financial Management Division (Headquarters)
GAD - Grants Administration Division (Headquarters)
IAG - Intergency Agreement
OARM - Office of Administration and Resources
Management (Headquarters)
OERR - Office of Emergency and Remedial Response
(Headquarters)
OERR/FCC - Funds Control Center of the Office of
Emergency and Remedial Response (Headquarters)
OERR/ERD - Emergency Response Division of the Office of
Emergency and Remedial Response (Headquarters)
OSC - On-Scene Coordinator
PCMD - Procurement and Contracts Management Division
PR - Procurement Request
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OSWER Directive 9275.1-1
RA - Regional Administrator
RTF - Research Triangle Park
SFO - Servicing Finance Office
SSAP - Site Stabilization Accomplishments Plan
TAT - Technical Assistance Team
TDD - Technical Directive Document
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
C. Morgan Kinghorn
Comptroller
Brian K. Polly
Director, PCMD
SUBJECT
Delegations - 6-month
extension (p.2)
FMD Responsibilities
(Exhibit 1)
Financial Document
Processing-Removal Obliga-
ing Documents (Exhibit 4)
Financial Document
Processing (page 9)
ERCS Delivery Order
Obligations (pages 1,
8 and Exhibits 1 and
Orders for Service
3,7
4)
ERCS Funding
Authority (page 1)
Financial Management
Responsibilities -
OERR/FCC and ERD
(Exhibit 1)
COMMENT
Wording misleading; sounds
like extension is for 6-
months.
'Important to state FMD's
role in Agency-wide
system.
Important to reiterate
PCMD's award role in item 3
Add "Budget Division"
to processing of Transfer
lAGs.
OSC awards action up to
limit of authority; PCMD
modifies document to add
additional funding.
Orders for Services can
never exceed $2,500 and
should never be modified
to change the amount.
Regional ERCS funding for
Delivery Orders only; OERR
funds contract management.
ERCS incentive mechanism
should be called "perfor-
mance incentive process".
RESPONSE
Comment accepted.
Wording now reads
"extension beyond the
6-month limit".
Comment accepted. Ad
"Maintains and imple-
ments the official
Agency-wide account in
system."
Comment not accepted.
Item 3 discusses dis-
tribution after award
Comment accepted and
change made.
Comment accepted;
changes made
where necessary.
Comment accepted;
changes made
where necessary.
Comment accepted;
changes made to
clarify this point
Comment accepted;
changes made to re
flect proper ^Le
ology.
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Brian K. Polly
(continued)
Region I
W. Librizzi, Director
OERR and H. Barrack,
ARA for Policy and
Management, Region II
SUBJECT
Financial Management
Respons ibi1it ies-PCMD
(Exhibit 1)
Contractor Invoices
(page 9)
No comments received
Financial Management
Respons ibi1i t i es—Manage-
ment Division (Exhibit 1)
Delegations of Authority
(page 2)
Financial Management
Responsibilities (page 4)
COMMENT
Proper terminology is
"awards all contract and
Delivery Order modifi-
cations . "
"Interim Emergenecy Pro-
curement Procedures"
are being replaced by
"Emergency Ordering and
Acquistion Procedures"
RESPONSE
Comment accepted;
this suggested word-
ing has been substi-
tuted.
Comment accepted;
the replacement document
title will be used.
"Audits Cooperative Agree- Comment accepted. The
ments" needs clarification, wording has been clari-
probably to "coordinates fied to "maintains
audits of..." fiscal oversight of..."
Comment accepted. '
has been eliminated,
All1
"Maintains files of all
financial documents" needs
clarification... some
documents, such as time-
sheets, are maintained in
the Program Division.
Regions need procedures to Comment noted. OERR
enable tracking of removal will provide Regions
costs against the $1 mil- with procedures for cost
lion ceiling. tracking, but in a
document other than
this financial
procedures document.
Recommends that "funding" Comment noted. "Funding
be replaced by is more inclusive than
'"committing". "committing", encom-
passing both committing
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
W. Librizzi/H. Barrack
(continued)
Alvin Morris, Assis-
tant RA for Policy
and Management,
Region III
Region IV
Robert Springer,
Director, Planning and
Management Division,
Region V
SUBJECT
Concur, no comment
No comments received
General
Financial Document
Processing (page 7)
COMMENT
RESPONSE
and actually providing
funds. In this circum-
stance, "funding" is
the more appropriate
term.
Recommends that instruc-
tions of this type be pre-
reviewed by HQ Office of
the Comptroller and FMD
to assure compliance with
accounting, fund control
and financial operations
requirements.
The instructions state that
commitments for contracts
and lAGs are entered into
FMS by the SFOs in RTP
and Cincinnati; believes
that Regions should enter
commitments to reflect an
early reservation of funds.
Comment noted. FMD
staff did review and
comment on the removal
procedures at several
points in the develop-
ment process. Region
V also reviewed the
document prior to
formal transmittal
throughout the Agency.
Comment noted. Regions
cannot directly enter
commitments for
transactions obligated
in RTP or Cincinnati
because of the differen
SFO numbers. Both FMD
and one Region stated
that the Regions do not
have First-Up capabil-
ities to enter commit-
ments against other
SFO's obligations. if •
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OSWER Directive 9275.^1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Robert Springer
(continued)
Region VI
Susan Gordon,
Assistant RA for
Policy and Management
Region VII
Dave Wagner,
Director, Air and Waste
Mangement Division
Region VII
SUBJECT
COMMENT
No comments received
Cost Recovery
Cost recovery responsibil-
ities need expansion.
Issuing Site/Spill
Identifiers
Although this guidance
assigns responsibility for
issuing identifiers to
Management Divisions, the
Program Divisions are more
appropriate since they are
familiar with site aliases
and need identifiers
first.
RESPONSE
Region V or any other
Region does have First-
Up, they should use it
in accordance with FMD
procedures.
Comment noted.
Cost recovery indeed
needs clarification,
but this directive is
not the appropriate
mechanism for doing so.
Comment noted. As
the directive states
(page 3), the indicated
responsibilities are
intended to guide, not
dictate to, the Regions
Since some Regions have
remedial and removal
programs separated
organizationally, and
since the issuance of
identifiers needs to be
coordinated between the
two (and enforcement),
the Management Division
may often be the logi-
cal issuer of identi-
fiers. As long as the
process is adequately
controlled and managed,
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Dave Wagner
(continued)
SUBJECT
Maintenance of Files
Audits of Cooperative
Agreements (Exhibit 1)
COMMENT
It is unclear from the
^guidance how HQ will ob-
tain identifiers. Recom
mend that they contact
the Region.
Because of Regional space
limitations, recommends
microfiching and archiving
original documents.
What types of audits
will Management Division
be doing?
Who requests audits from
the IG when required?
RESPONSE
Regions may assign it
where it makes most
sense.
Comment noted. The
exact mechanism for
managing identifiers has
not been determined.
While it is clear that
Regions will assign
identifiers, it may be
possible for HQ to ac-
cess those identifiers
through some sort of
system. Additional
guidance will follow.
Comment noted. For cost
recovery purposes, ori-
ginal source documents
should be maintained in
the Regional files.
None. The wording in
Exhibit 1 has been cor-
rected to "Maintains
fiscal oversight of"
rather than "Audits".
Anyone can, or the IG
can audit on a random
or scheduled basis.
What defines the difference They are the same--see
between these two typer of above.
audits.
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OSWER Directive 9275.1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Dave Wagner
(continued)
SUBJECT
Cost Recovery (Exhibit 1)
Reporting Requirements
(page 9)
COMMENT
From Exhibit 1, Reg. VII
assumes OERR/FCC maintains
overall coordination for
cost recovery.
Please clarify reporting
requirements. How useful
can a report be if it con-
tains unverified data?
This is one of the
problems with PTS.
Jack Hoffbuhr,
Acting Regional
Administrator, Office
of Policy and Management,
Region VIII
Acronyms
The document is difficult
to read because of the
"excessive" use of
acronyms. The full name
should be used the first
time each appears
on a page.
RESPONSE
Comment noted.
OWPE provides overall
coordination; Regions,
FCC and FMD provide
support for financial
documentat ion.
Comment noted. Each
Region, as Allowance
Holder, is responsible
for verifying their re-
ported data. Although
FCC may check data that
appears unusual, it
will provide no regular
reconciliation or veri-
fication of data. Com-
plete HQ data require-
ments are not yet de-
termined; once this
occurs, supplemental
guidance will be sent
to the Regions.
Comment partially
accepted. Regions
need to become
familiar with Super-
fund acconyms. To
help in following
this document, an at-
tachment has been added
containing all acronyms
used in the document,
in alphabetical order.
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Jack Hoffbuhr
(continued)
SUBJECT
Letter Contracts
COMMENT
The document should expand
on the definition of Let-
ter Contracts. The dele-
gations limitations state
the authority does not ex-
• tend to procurement con-
tracts. What is the ef-
fect of a Letter Contract
on Super fund money?
ERCS Contracts
(page 1)
Is there more than one
ERCS contract? If so, how
does the OSC know which
one to use?
RESPONSE
As described on page 1,
financial authotity
comes from three sour-
ces. The authority to
enter into contracts
'with states, delegated
in 14-1-B, is to provic
required CERCLA assur-
ances and to lay out
roles and responsibili-
ties for planned re-
moval actions. These
contracts, commonly
called Superfund State
Contracts, do not obli-
gate any funds. The
authority to -award Let-
ter Contracts with sta
and local governments
isigranted by PCMD for
amounts up to $50,000.
These two authorities
come from two entirely
different sources and
are not related. Let-
ter Contracts for re-
moval actions are de-
scribed in more detail
in the Removal Guidanc.
soon to be issued by
ERD.
Yes, there are four ERc
zone contracts, but eat
Region has only one coi
tract under which it
can order world
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Jack Hoffbuhr
(continued)
SUBJECT
Other Emergency
Contracts
(page 1)
Ordering Officer's
Contracting Authority
(page 7)
Letter Contracts
(page 8)
Responsibilities -
Management Division
(Exhibit 1)
COMMENT
"Notice to Proceed" and
"Orders for Services"
would indicate that con-
tracting has already been
completed nor the contract
-obligated. Are these two
actions handled the same
as "Delivery Orders"?
Is the term contracting
authority correct, or
should the term be ob-
ligating authority?
What is the difference,
if any, between Letter
Contracts and Superfund
State contracts?
Audit of Cooperative
Agreements is a function
of ,the IG, not the Manage-
ment Division.
RESPONSE
I
No, Notices to Proceed
and Orders for Services
are handled differently
than ERCS Delivery
Orders. Contracting has
not been completed and
the contract obligated
as in the case with
ERCS; each Notice and
Order is a new obliga-
tion. More details on
these contract types
are contained in the
Removal Guidance to be
issued by ERD; or can
be obtained from PCMD.
Comment accepted. The
Ordering Officer has
been delegated authority
by PCMD in the ERCS con-
tracts to "place orders"
against the contract.
"Contracting" has been
changed to "ordering".
See Letter Contracts
above.
Comment accepted.
"Audits" has been
changed to "Maintains
fiscal oversight of."
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OSWER Directive 9275.1-1
COMMENTS MATRIX
REMOVAL FINANCIAL MANAGEMENT PROCEDURES
COMMENTOR
Jack Hoffbuhr
(continued)
SUBJECT
Acronyms
(Exhibit 1)
COMMENT
Undefined acronyms are
included in Exhibit 1.
I RESPONSE
Comment accepted.. A
complete list and spell-
ing out of all acronyms
used in the document has
been added as an Attach-
ment.
Region IX
Region X
Billie Perry
OERR
No comments received
Deferred comments
Transfer IAGs
Transfer IAGs are pro-
cessed differently than
reimbursable IAGs.
Comment accepted.
Throughout the document,
the distinction between
transfer and reimburs-
able IAGs has been made.
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