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Audit of Superfund Activities in the Environment and Natural Resources Division for Fiscal Years 2006 through 2008
Raymond J. Beaudet (ed)
The Comprehensive Environmental Response, Compensation andLiability Act of 1980 (known as CERCLA or Superfund), which was expanded by the Superfund Amendments and Reauthorization Act of 1986, established the Superfund program to clean up the nation’s worst hazardous waste sites. CERCLA seeks to ensure that individuals or organizations responsible for the improper disposal of hazardous waste bear the costs for their actions. It also established the Hazardous Substance Superfund Trust Fund (Trust Fund) to finance clean up sites when a liable party cannot be found or the third party is incapable of paying clean up costs. The Trust Fund also pays the Environmental Protection Agency’s (EPA) for enforcement, mgt. activities, and R&D. The Attorney Gen. has responsibility for all Superfund litigation. Within the Dept. of Justice (DOJ), the Environment and Natural Resources Div. (ENRD) enforces CERCLA’s civil and criminal pollution-control laws. In FY 1987, EPA entered into interagency agreements with the ENRD and began reimbursing the ENRD for its litigation costs. In recent years, EPA authorized reimbursements to the ENRD of $26.0 million for FY 2006 and $26.3 million for FY 2007, and $25.6 million for FY 2008 in accordance with EPA Interagency Agreements. The EPA and the ENRD Statement of Work required the ENRD to maintain a system that documented its litigation costs. To this end, the ENRD used a cost distribution system developed and maintained by a private contractor. The system was designed to process financial data from the ENRD Expenditure and Allotment (E&A) Reports into: (1) Superfund direct costs by specific case broken down between direct labor costs and all other direct costs; (2) non-Superfund direct costs; and (3) allocable indirect costs. As required by CERCLA, the DOJ Office of the Inspector Gen, (OIG) conducted this audit to determine if the cost allocation process used by the ENRD and its contractor provided an equitable distribution of total labor costs, other direct costs, and indirect costs to Superfund cases from FYs 2006 - 2008. Figures.
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