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OFFICE OF INSPECTOR GENERAL
Catalyst for Improving the Environment
Audit Report
Followup on Information
Concerning Superfund
Cooperative Agreements with
New York and New Jersey
Report No. 08-2-0099
March 4, 2008

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*. U.S. Environmental Protection Agency	08-2-0099
March 4, 2008

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At a Glance

Why We Did This Review
We performed this review to
determine the status of the
$9.6 million in deobligations
for cooperative agreements
identified in an earlier report.
Background
The U.S. Environmental
Protection Agency's (EPA's)
Office of Superfund
Remediation and Technology
Innovation requested that we
obtain information involving
obligations for Superfund
cooperative agreements with
the States of New York and
New Jersey. Our prior review,
dated October 30, 2006,
identified $9.6 million under
six agreements that could be
deobligated. In response to
our report, EPA provided
tentative actions and
milestones for the cooperative
agreements.
Catalyst for Improving the Environment
Followup on Information Concerning
Superfund Cooperative Agreements with
New York and New Jersey
What We Found
We found that EPA Region 2 had deobligated $7.3 million from four of the
six sites in New York and New Jersey cited in our prior report. Remaining
funds obligated for the Burnt Fly Bog, Combe Fill South, and Syncon
Resins agreements are expected to be used for ongoing work at the sites.
The amounts deobligated differ from the amounts identified in our prior
report because additional funds were no longer needed for the Ellis Property
site agreement, and because New York made final drawdowns on the New
York Multi-Site agreement. Since the remaining funds obligated under the
agreements are expected to be used for ongoing work, we are not requesting
that EPA take additional corrective actions at this time. The Office of Solid
Waste and Emergency Response had no comments on the draft report.
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/
20080304-08-2-0099.pdf

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PRO^^"
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
OFFICE OF
INSPECTOR GENERAL
March 4, 2008
MEMORANDUM
SUBJECT: Followup on Information Concerning Superfund Cooperative Agreements
with New York and New Jersey
Report No. 08-2-0099
The Office of Inspector General (OIG) of the U.S Environmental Protection Agency (EPA) has
completed a followup review. This review was of EPA Region 2's progress in implementing
corrective actions being taken based on the Office of Solid Waste and Emergency Response's
(OSWER's) March 7, 2007, response to OIG Report No. 2007-2-00003, Information Concerning
Superfund Cooperative Agreements with New York and New Jersey, issued October 30, 2006.
The report had identified $9,586,744 in funding that could be deobligated and made available for
other environmental activity.
OSWER's March 7, 2007, response stated that:
1.	Region 2 issued a Deobligation Plan for Fiscal Year 2007 to OSWER's Office of
Superfund Remediation and Technology Innovation on January 17, 2007. The
Deobligation Plan specifically identified six cooperative agreement deobligations, all of
which were identified in the OIG report. These deobligations are for: Imperial Oil, Ellis
Property, Burnt Fly Bog, Combe Fill South, Syncon Resins, and New York Multi-Site.
2.	Deobligations for Combe Fill South, Syncon Resins, and New York Multi-Site had been
tentatively scheduled for deobligation in June 2007.
3.	Deobligations for Imperial Oil, Ellis Property, and Burnt Fly Bog had been tentatively
scheduled for deobligation in July 2007.
FROM:
Melissa M. Heist
Assistant Inspector General for Audit
TO:
Susan Parker Bodine, Assistant Administrator
Office of Solid Waste and Emergency Response
1

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These proposed actions and milestones were the scope of our followup review. We interviewed
EPA Grants and Program personnel to obtain information about the planned deobligations and
confirmed the actions taken by reviewing activity in the Financial Data Warehouse. We
performed our audit in accordance with generally accepted government auditing standards issued
by the Comptroller General of the United States. We conducted our audit field work from
August to October 2007.
We found that of the $9,586,744 suggested for deobligation, $7,264,970 has been deobligated.
Details on the status of obligations are in Table 1.
Table 1: Status of Obligations
Site Name
Amount in Prior
OIG Report
Amount
Deobligated
Agency Remarks
Imperial Oil
[New Jersey]
$5,000,000
$5,000,000

Ellis Property
[New Jersey]
500,000
543,500
The actual amount deobligated was based on actual
remedial design funds no longer needed.
Burnt Fly Bog
[New Jersey]
1,000,000
0
Region 2 is re-budgeting the remaining funds needed
for ongoing work at the site.
Combe Fill South
[New Jersey]
2,000,000
1,336,578
The remaining funds are needed for ongoing work at
the site.
Syncon Resins
[New Jersey]
600,000
0
A portion of the funds are to be used for ongoing work
at the site. The State is working on the Financial
Status Reports to identify the remaining balance to be
returned to Region 2 in Fiscal Year 2008.
New York Multi-Site
[New York]
486,744
384,892
The difference between the amount identified in the
prior OIG report and the amount deobligated is due to
final drawdowns by the State.
Total
$9,586,744
$7,264,970

Sources: OIG Report No. 2007-2-00003, Financial Data Warehouse, and information provided by Region 2 Grants
and Contracts Management Branch staff and project officers.
Since the remaining funds obligated under the agreements are expected to be used for ongoing
work at Burnt Fly Bog, Combe Fill South, and Syncon Resins, we are not requesting the Agency
take additional actions at this time. We issued a draft report on February 15, 2008, and provided
the Agency an opportunity to respond. The Agency did not have any comments on the report.
The estimated cost of this report - calculated by multiplying the project's staff days by the
applicable daily full cost billing rates in effect at the time - is $54,227.
Because this report contains no recommendations, you are not required to respond to this report.
We have no objections to the further release of this report to the public. This report will be
available at http://www.epa.gov/oig.
Should you have any questions, please contact Paul Curtis, Director, Financial Statement Audits,
at (202) 566-2523 or Curtis.Paul@epa.gov; or Meg Bastin, Project Manager, at (513) 487-2366
or Bastin.Margaret@epa.gov.
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Status of Recommendations and
Potential Monetary Benefits
POTENTIAL MONETARY
RECOMMENDATIONS	BENEFITS (In $000s)





Planned


Rec.
Page



Completion
Claimed
Agreed To
No.
No.
Subject
Status1
Action Official
Date
Amount
Amount
No recommendations
1 0 = recommendation is open with agreed-to corrective actions pending
C = recommendation is closed with all agreed-to actions completed
U = recommendation is undecided with resolution efforts in progress
3

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Appendix A
Distribution
Assistant Administrator, Office of Solid Waste and Emergency Response
Assistant Administrator, Office of Administration and Resources Management
Regional Administrator, EPA Region 2
Director, Office of Grants and Debarment
Director, Grants and Interagency Agreements Management Division
Director, Office of Superfund Remediation and Technology Innovation
Chief, Contracts Management Branch, Office of Superfund Remediation and
Technology Innovation
Director, Office of Financial Management
Agency Followup Official (the CFO)
Agency Followup Coordinator
Audit Followup Coordinator, Office of the Chief Financial Officer
Audit Followup Coordinator, Office of Administration and Resources Management
Audit Followup Coordinator, Office of Solid Waste and Emergency Response
Audit Followup Coordinator, Office of Grants and Debarment
Audit Liaison, EPA Region 2
Chief, Grants and Contracts Management Branch, EPA Region 2
Deputy Inspector General
4

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