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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
08-2-0226
August 6, 2008
Catalyst for Improving the Environment
Why We Did This Review
The U.S. Environmental
Protection Agency (EPA)
Office of Inspector General
conducted reviews of
earmarked grants known as
Special Appropriation Act
Projects issued to local and
tribal governments. We
selected the Passaic Valley
Sewerage Commissioners for
one of these reviews.
Background
In 2001, Passaic Valley
Sewerage Commissioners
received an EPA Special
Appropriation Act Project
grant, XP98237601.
The purpose of the grant was
to provide federal assistance
of $4,751,200 for
rehabilitating existing final
clarifiers, constructing a
floating dock and off-loading
facilities, and procuring
thickening centrifuges at the
grantee's location.
Passaic Valley Sewerage Commissioners -
Unallowable Costs Claimed Under EPA Grant
XP98237601
What We Found
The grantee claimed $2,385,634 for pre-award costs under Grant XP98237601 that
were incurred prior to the grant award and thus were unallowable under the grant
administrative conditions and Office of Management and Budget Circular A-87.
The federal share of the unallowable pre-award costs was $1,312,099.
What We Recommend
We recommend that the EPA Regional Administrator, Region 2, recover
$1,312,099, the federal share of the unallowable pre-award costs.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.qov/oiq/reports/2008/
20080806-08-2-0226.pdf

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