Superfund Recordkeeping Guidance Essay, Research Paper
A. BACKGROUND & A ; SUMMARY
The Comprehensive Environmental Response, Compensation and Liability Act of 1980, ( CERCLA ) , as amended by the Superfund Amendments and Reauthorization Act of 1986, ( SARA ) , provides for the designation, probe and killing of Superfund, risky waste sites. Under these Acts, the Environmental Protection Agency ( EPA ) is required to retrieve its response costs from responsible parties after take parting in the probe, killing, inadvertence, enforcement and other required administrative commissariats.
State bureaus which spend CERCLA financess must account for and document all response costs to allow recovery of these costs from responsible parties by EPA and the State. Fundss may besides be provided to the State by EPA under a grant system to set about Superfund related response activities. State bureaus which spend CERCLA grant financess must account for and document all State costs.
This manual outlines processs involved with the outgo of financess by the Maryland Department of the Environment ( MDE ) for CERCLA activities. It sets forth fiscal direction and recordkeeping demands for Superfund sites and for CERCLA related activities covered by EPA grants. Many of the rules and processs covered by this manual service as counsel for non-CERCLA sites, every bit good, which have the potency for future cost recovery actions. This manual will go on to be updated as new processs are developed.
Documentation processs involve complex fiscal direction and recordkeeping policies that must be followed to guarantee cost recovery. These policies are based on ordinances and counsel, in portion, set Forth in:
– Code of Federal Regulations, ( CFR ) , Title 40, Part 31, Part 33 and Part 35, Subpart & # 8220 ; O & # 8221 ; .
– & # 8220 ; State Superfund Financial Management and Recordkeeping Guidance & # 8221 ; , 1987, EPA.
– Office of management and budget Round No. A-87, & # 8221 ; Cost Principles for State and Local Governments & # 8221 ; .
– Code of Maryland Regulations, ( COMAR ) , Title 21.
Key characteristics of the Superfund fiscal direction and recordkeeping policies which are set Forth in item herein in Section D, include:
– Documentation of all disbursals involved with response or grant-specified activities.
– Recovery of & # 8220 ; sensible and necessary & # 8221 ; costs merely.
– Designation of fiscal paperss, and all other cost related records or understandings which may function as the footing for finding or authorising response costs, with the phrase & # 8211 ; & # 8220 ; SUPERFUND DO NOT DESTROY & # 8221 ; .
– Keeping timesheets and other fiscal papers masters without change after blessings.
– Care of a alone file or set of files, either incorporating difficult transcripts, or electronic images shall be maintained for each Superfund site which shall be identified by a undertaking cost history ( PCA ) codification to allow timely entree to site records.
& # 183 ; Record categories within these files shall be organized in a consistent mode.
– Care of extra files, incorporating backup certification which provide background and service as a footing or mandate for costs, should besides be maintained. These general files may incorporate information that is non needfully site-specific.
– Retain original paperss for each site, OU or activity.
– Electronic records may be acceptable for cost recovery if approved by EPA or Attorney General & # 8217 ; s office.
– Submiting cost certification, in response to petitions from lawyers or EPA merely after, expense related records are reconciled with the cost sum-up.
– Retention of records stamped with the phrase & # 8211 ; & # 8220 ; SUPERFUND DO NOT DESTROY & # 8221 ; for at least 10 old ages following entry of the concluding Financial Status Report, ( FSR ) , unless otherwise directed by EPA.
& # 183 ; Records are to be retained longer than 10 old ages if judicial proceeding, claim, cost recovery or other associated action takes topographic point before the terminal of the 10-year period.
– Environmental protection agency must O.K. devastation of paperss that were required to be saved.
Establish Superfund and EPA grant fiscal direction and recordkeeping processs which:
– enable the State to run into legal duties and EPA audit demands ;
– papers disbursal related records in a lawfully acceptable mode ;
– facilitate answerability and cost recovery ; and
– provide seasonably entree to site, operable unit and activity related expense information.
C. ORGANIZATIONAL RESPONSIBILITIES
1. ERRP & # 8211 ; ( Environmental, Restoration and Redevelopment Program )
ERRP behaviors and oversees CERCLA response activities within the Waste Management Administration, ( WAS ) . Its countries of duties screen:
– Pre-remedial, remedial, removal and operation & A ; care stages.
– Response activities which include, but are non limited to, probes, reappraisal and remark on studies, inadvertence and execution of response actions, and enforcement actions, and
– Plan development.
CERCLA activities may be funded under EPA grants/ Cooperative Agreements ( CAs ) . The footings of these grants are negotiated between EPA and the State. The State besides uses its ain financess in prosecuting in response activities.
Trained staff behavior proficient activities associated with probe, appraisal and killing, including related activities such as preparation, travel, and Program development and the similar. These employees shall subject timesheets for farther processing and record maintaining. Time devoted to assorted response activities is distributed to a figure of alone PCA codifications within the timesheets, thereby allowing assignment of costs to allow sites, OUs and activities. In add-on, the proficient staff may originate requisitions such as purchase and travel petitions and other fiscal paperss associated with response activities. PCA codifications are besides used to delegate costs for these and other activities as good.
Clerical and administrative staff may help the proficient staff in financial, timekeeping, purchase requisitions, travel verifiers and record maintaining affairs. This staff besides serves as affair with other divisions in processing clip answerability paperss and other requisitions.
The Program Administrator of ERRP manages ERRP Program and proficient activities and approves all ERRP requisitions. Originators of requisitions must warrant the necessity of points requested before blessing and must fulfill footings of the grants. Approval, or subscribe off, by the Program Administrator may be via electronic signature where the Advanced Purchasing Inventory Control System ( ADPICS ) , or a similar system, is used with the Financial Management Information System ( FMIS ) to treat the requisition. FMIS is the computerized statewide accounting system which tracks costs by site, OU and activity, and by grant degree.
2. Office of Administrative Services ( OAS )
A site group, established under CERCLA, maps in a support function in the countries of:
– General plan support necessary to run a State plan to implementing CERCLA activities ;
– Inter-agency coordination of ERRP activities as necessary to implement CERCLA administrative record maintaining and financial demands ;
– Legal aid associated with the disposal of the CERCLA plan.
Specific maps include, but are non limited to:
– Develop processs for financial and contract direction that:
& # 183 ; Ensure the fiscal unity of CERCLA site-specific outgos and CERCLA related procurement disposal.
& # 183 ; Provide clerical and administrative support for the CERCLA plan.
– Prepare and negotiate CA grant applications
& # 183 ; Notify State Clearinghouse of an application.
& # 183 ; Assure that no struggle exists with other State bureaus in their programs and plans.
& # 183 ; Determine forces, supplies and equipment that will be needed under each CA.
– Administer grant award
& # 183 ; Set up alone PCA codifications for each site, OU and/or appropriate activity to supply proper answerability.
& # 183 ; Prepare State budget to let use of financess.
– After State budget blessing, reappraisal CA outgos and supervise the support position of each CA.
– Procure a Remedial Management Services ( RMS ) contractor, where applicable, and pull off the administrative facets of the contract.
– Submit timesheets, covering OAS activities, with their clip distributed to allow PCA codifications. After blessing, the timesheets are sent to Fiscal Services for look intoing and allotment.
– Prepare, reappraisal and O.K. diary entries for clip and other cost related points to guarantee coverage under grants.
– Maintain files of all cost-related paperss ( timesheets, stock list, bills etc ) . and respond to petitions from EPA sing submittal of cost certification sum-ups.
– Ensure that appropriate records are available to the public under the Maryland Public Information Act ( MPIA ) .
– Procedure requisitions.
– Reappraisal bills from Fiscal Services to O.K. payment.
– Prepare quarterly and other fiscal and stock list studies as required by EPA.
The OAS plan is funded under CAs negotiated between EPA and the State.
c. OAS STAFF
Administrative Military officers and associated clerical and administrative staff determine ( with ERRP ) whether a petition is sensible and necessary and is authorized by a grant. OAS Staff responsibilities include procurement, budget inadvertence, fiscal direction, belongings direction, stock list, records keeping and contract disposal maps within the CERCLA Program.
The Lead Agency Budget Specialist is responsible for guaranting that there is State appropriation blessing of support and authorization to pass grant money. The Lead Agency Budget Specialist provides State budget enfranchisement and may originate budget or grant amendments to cover points non provided for in the budget or the grant.
The Director of WAS has concluding duty for budgeting and grants direction. These duties may be delegated for everyday requisitions.
3. OTHER UNITS
a. FISCAL SERVICES ( FS )
Fiscal Services, a portion of the Administrative and Employee Services Administration ( AESA ) , plays a major function in Superfund fiscal direction and recordkeeping. It is responsible for:
– Processing all timesheets, including rectifying for leave handiness and apportioning leave clip and indirect costs.
– Processing other outgo paperss including travel progresss, expense studies, contractor bills and purchase orders.
– Recording Superfund paysheet and other disbursals in FMIS under its R*STARS plan, the Maryland accounting system, by site, OU and/or activity, as applicable.
– Acting Automated Clearing House ( ACH ) minutess.
– Fixing Federal Cash Transaction Reports ( FCTRs ) .
– Retaining some of the original certification for Superfund outgos.
– Processing bills for payment.
B. PROCUREMENT AND CENTRAL SERVICES
This division, portion of the AESA, handles procurance, stock list control, having and shops for MDE. Its major duties include:
– Adhere to all State ordinances and buying governments delegated to MDE by the Department of General Services ( DGS ) and the Department of Budget and Fiscal Planning ( DBFP ) understandings in the procurance of goods and services.
& # 183 ; Issue purchase orders for sanctioned requisitions for supplies and equipment and procedure requisitions for services.
& # 168 ; ADPICS or similar EPA approved electronic system may be used for purchases.
& # 168 ; Procurement authorization and the stairss involved in the procurance procedure depend on the nature and cost of the purchase.
& # 183 ; Documentation of the agreed upon degree of buying authorization should be maintained.
– Prepare/maintain stock list records and aid in disposal of surplus and excess belongings in conformity with the guidelines of the Inventory Control Manual, July 1, 1992.
– Proctor vehicle use, provide guidelines for their usage, and at the petition of OAS, control, purchase, and dispose of State vehicles.
c. ISCD & # 8211 ; ( Information Systems and Communications Division )
This Division enters timesheet informations into Master paysheet to be uploaded for timekeeping and grants direction intents.
d. DGS & # 8211 ; ( Department of General Services )
Among its governments, as outlined in COMAR, Title 21, DGS is responsible for blessing of contracts for the purchase of all trade goods and supplies. It besides has authorization to present contracts for capital building, architectural and technology, or care in the sum of $ 100,000 or less. It may depute portion of its authorization to other procurance bureaus.
DGS besides keeps on file stock list records submitted by MDE and is responsible for the disposal of State owned belongings.
e. DBFP & # 8211 ; ( Department of Budget and Fiscal Planning )
Among its governments DBFP approves service contracts and automatic informations processing contracts in the sum of $ 100,000 or less. It besides has authorization over buying, leasing and lease of motor vehicles for usage by State functionaries and employees. Other governments of DBFP are described in COMAR, Title 21. DBFP may depute some of its procurement authorization to other bureaus.
f. BPW & # 8211 ; ( Board of Public Works )
Except every bit provided under State Finance and Procurement Article, 12-101, Annotated Code of Maryland, BPW may command all procurance in the State. BPW duties and governments include:
– Setting policy and adopting ordinances ;
– Exercise any authorization conferred on a section by the Annotated Code of Maryland and, to the extent that its action in exerting this authorization is inconsistent with the action of any section, the action of BPW shall predominate ;
– Delegating to any section or procurance bureau all or portion of its authorization with respect to specific procurances or categories of procurances ; and
– Blessing contracts in surplus of $ 100,000 and other contracts non specifically delegated to another section or bureau.
D. FINANCIAL MANAGEMENT & A ; RECORDKEEPING
1. Legal BASIS AND BASIC REQUIREMENTS FOR COST RECOVERY
CERCLA, as amended by SARA, a
uthorizes recovery of federal and State costs from responsible parties. To prosecute required CERCLA cost recovery against a responsible party, the costs must be accurately documented. In add-on, the necessity of the work done must be proved and the party’s duty for the release or possible release of risky substances must be established. Proving the necessity of the work done and showing party duty are beyond the range of this manual. This manual focuses on the certification and record maintaining demands and processs that the State must fulfill to supply for successful cost recovery actions.
In order to achieve the Automated Clearing House Payment Requests, the undermentioned processs must be undertaken. A grant outgo study is obtained from the FMIS aid desk. Cost informations from the grant outgo study is entered into a draw spreadsheet which calculates indirect costs and the entire sum to pull. The draw sum is entered on the EPA ACH Payment Request signifier. This signifier, along with a screen missive and any other information requested, is faxed to the EPA Regional Finance Office.
a. REQUIRED RECORDS
Expenses incurred during the class of a Superfund response action by the State autumn into a figure of classs. These include, but are non limited to direct labour, administrative and overhead ( indirect ) , supply and equipment, travel and contractor costs. In conformity with CFR, Title 40, Part 35, Subpart & # 8220 ; O & # 8221 ; , the records must back up the undermentioned points by site, OU or activity:
& # 183 ; Amount of financess received and expended
& # 183 ; Direct and indirect undertaking costs
& # 183 ; Description of belongings, including a maker & # 8217 ; s consecutive figure or other designation
& # 183 ; Source of the belongings
& # 183 ; Information sing ownership ( MDE or EPA )
& # 183 ; Unit acquisition day of the month and cost
& # 183 ; Percentage of EPA & # 8217 ; s involvement and cost
& # 183 ; Location, usage and status ( by site, OU or activity, as applicable ) and the day of the month this information was recorded
& # 183 ; Ultimate temperament informations
& # 183 ; Reasons for rejecting any or all commands
& # 183 ; Justification for procurance made on a non-competitively negotiated footing, where required
& # 183 ; For procurances & gt ; $ 25,000 papers:
& # 168 ; Basis for contractor choice
& # 168 ; Written justification for choosing the procurance method
& # 168 ; Written justification for usage of any specification which does non supply for maximal free and unfastened competition
& # 168 ; Written justification for the pick of contract type
& # 168 ; Basis for award cost or monetary value, including a transcript of the cost and monetary value analysis and certification of dialogues.
& # 183 ; Other records
& # 168 ; Time and attending records and back uping certification
& # 168 ; Documentation of conformity with applicable legislative acts and ordinances
& # 168 ; Number of site specific proficient hours spent to finish each pre-remedial undertaking
A history of each disbursal point must be established to be considered valid by a tribunal. Supporting records which constitute a valid history of any cost for work, leased or purchased point must show that:
– the work was authorized by the State ;
– the work was completed ( or received ) ;
– the State was billed for the cost ; and
– the State paid for the cost.
B. DOCUMENT AND OTHER COST RECOVERY REQUIREMENTS
Each papers functioning as grounds to back up costs claimed by the State must run into a figure of legal demands in order to be considered dependable and reliable. The papers must hold been produced at approximately the same clip as the disbursal was incurred, it must be produced and utilized in the normal class of concern and expert informant must be available, if requested, to attest as to the genuineness and dependability of the papers.
Records that prove that disbursals were sensible and necessary must be retained by the State. Misdemeanor of EPA or State procurement ordinances make it hard to show sensible and necessary conditions. If hearers discover improper patterns, the costs associated with these patterns may be disallowed, ensuing in increased State costs.
c. CHALLENGES TO STATE EXPENSE RECORDS
Cost certification may be successfully challenged by a responsible party if any of the criterions or demands are non met. State forces may be questioned under curse on issues such as record maintaining patterns, fiscal direction, procurance patterns, and similar affairs and may be required to react to written inquiries on these affairs. Furthermore, all back uping disbursal records may be examined for completeness, inaccuracies, incompatibilities and other defects. If the State receives a petition from EPA the suspects in a federal cost recovery for production of paperss, it must follow.
State forces may besides be asked procedural inquiries under curse as to how the State determined assorted types of costs. If the cost certification does non run into the demands in this manual, State forces will be asked to explicate the grounds hence. Examples where farther account may be required include: processs to accurately account for employee clip, command rating methods, consistence or completeness of records, methodological analysis for ciphering equipment use rates, etc.
d. PROTECTED INFORMATION
Certain personal and concern information may be protected from revelation and the Attorney General & # 8217 ; s ( AG & # 8217 ; s ) office must ever be contacted in make up one’s minding on information to be withheld. Examples of information that may be withheld from revelation, but are non limited to: societal security Numberss, recognition card Numberss, holiday and ill leave balances, and place references. An illustration of concern information that may keep back is confidential trade or fiscal information
2. PREPARING COST DOCUMENTATION
Each MDE organisation involved in originating an activity, treating a petition or set abouting other Superfund response activities is a nexus in the concatenation of cost certification. These units include ERRP, OAS, Procurement, AG & # 8217 ; s office, Fiscal Services and other entities referred to in other groups. Specific descriptions of the activities of each of the assorted units involved are described in Section C,3.
The procedure used to supply cost certification is initiated when the State plan directors receive a petition for a bundle detailing the State & # 8217 ; s disbursals at a site. The petition may come from beginnings such as EPA, the State & # 8217 ; s legal staff or a responsible party.
– The paperss requested must be provided.
– Where a big figure of paperss is requested, the cost certification bundle should incorporate an up-to-date sum-up of costs. This sum-up, which breaks out costs by class ( wages, travel, supplies and equipment, etc. , as requested ) , should be placed at the forepart of the bundle ( See Appendix 1 )
– The balance of the bundle is divided into subdivisions incorporating back uping paperss for each of the cost classs in the sum-up.
– A subdivision sum-up should be included where there are a big figure of records in any one subdivision.
– Reconciliation of all the disbursal records in each subdivision is the concluding measure in fixing the cost certification bundle. No cost certification should be submitted to EPA, the legal staff, etc, until the disbursal records reconcile precisely with the cost sum-up. The affiliated checklist should be completed to guarantee rapprochement. ( See Appendix 2 ) .
3. EPA Audited account
EPA may scrutinize a Superfund CA to find whether a ) the costs that the State has claimed under the understanding are allowable and allocatable to the undertaking under the footings of the CA and applicable ordinances ; and B ) controls and processs in the State & # 8217 ; s fiscal and undertaking direction, recordkeeping, accounting, procurance and belongings direction meet EPA and other Federal demands. Major issues concern the State & # 8217 ; s ability to supply a ) responsible accounting, B ) seasonably and accurate coverage and degree Celsius ) effectual processs for indirect cost allotment, equipment purchases and contractor procurance. The processs as outlined in this manual must be followed to guarantee the successful meeting of audit considerations.
4. Cost Accounting
a. VOUCHER Processing
Vouchers are processed quarterly and are broken down by plan cost history codifications harmonizing to site, OU and activity. These dislocations include bills and direct bills, purchase orders, junior-grade hard currency and travel expense-related points. Expense-related junior-grade hard currency is processed using the standard statewide processing system. Purchase orders that have antecedently been given authorization are system matched with receiving system studies and processed as is. Purchase orders that haven & # 8217 ; t received authorization are first sent to the Administrative Office for reappraisal and blessing and so through the procedure outlined supra. This information is sent to the State & # 8217 ; s General Accounting Office where the mention Numberss are processed and matched with the accountant & # 8217 ; s mention Numberss. All verifiers and journal accommodations are filed by financial twelvemonth and day of the month. Original paperss are retained at that place for three old ages and so returned to OAS for farther storage and keeping.
B. COMPUTERIZED COST Trailing
FMIS, the State computerized accounting system, tracks all costs by site, OU and activity. Where verifiers allow costs to be charged to multiple sites, this information is allocated to the appropriate PCA codifications under FMIS. The system provides elaborate certification to confirm site-specific charges and provides an audit trail. It allows the State to accommodate beginning certification with fiscal accounting system information. Together with FMIS studies, cogent evidence of payment can be established with studies that include the day of the month paid and the cheque figure.
c. Coverage REQUIREMENTS
In conformity with CFR, Title 40, Part 31 and Part 35, Subpart & # 8220 ; O & # 8221 ; , a figure of studies must be submitted to EPA. These include, but are non limited to, the followers:
– Quarterly advancement studies covering activities delineated in the Statement of Work are submitted quarterly by ERRP, within 30 yearss of the terminal of each Federal financial one-fourth. Key points to be reported upon include:
& # 183 ; Details of work accomplished during the coverage period, holds, or other jobs and disciplinary actions planned. For pre-remedial CAs, the study must include a list of site-specific merchandises completed and estimated proficient hours spent to finish each merchandise.
& # 183 ; A comparing of the per centum of undertaking completed to the undertaking agenda and account of disagreements.
& # 183 ; A comparing of financess spent to day of the month to planned outgos and an account for important disagreements.
& # 168 ; Compare per undertaking footing for remedial, enforcement and removal undertakings.
& # 183 ; An estimation of clip and financess needed to complete work required in the CA, a comparing with existent clip and financess staying and justification for any addition.
– Presentment of important developments covering events which may happen between scheduled coverage day of the months, and holding important impact on CA supported activity, should be given by OAS to the EPA undertaking officer every bit shortly as the status becomes known.
– Inventory studies shall be submitted as described in Section F2 of this manual.
– A Department of Labor study must be submitted to the DOL Regional Office of Compliance for each building undertaking expected to transcend $ 10,000 within a 12 month period and a transcript must be sent to EPA. This study shall be submitted by OAS to DOL within 10 yearss of each such building contract and incorporate the undermentioned information:
& # 183 ; Award sum
& # 183 ; Estimated start and completion day of the months
& # 183 ; Project figure, name and site location.
– Minority and Women & # 8217 ; s Business Enterprise ( MBE/WBE ) studies must be submitted by OAS to the award functionary covering the usage of MBE and WBE houses within 30 yearss after the terminal of each Federal financial one-fourth. A study on the attempts to promote MBE engagement in the Superfund plan may be submitted quarterly, but is required November 1 of each twelvemonth.
– Financial Status Reports ( FSRs ) , following with demands in CFR, Title 40, Part 31 and Part 35, Subpart & # 8220 ; O & # 8221 ; , shall be submitted by OAS. FSRs include fiscal information by site, OU and activity, as applicable.
& # 183 ; OAS Administrative Officer prepares the study and submits to Fiscal Services to guarantee figures fit FMIS and so frontward to EPA.
& # 183 ; A concluding FSR must hold no unliquidated duties.
& # 168 ; If any duties remain unliquidated, the FSR is considered as an interim study ; a concluding study must be submitted after neutralizing all duties.
& # 183 ; FSRs shall be submitted as follows:
& # 168 ; Annually, due 90 yearss after the terminal of the Federal financial twelvemonth or as specified in the CA ; if quarterly or biyearly, due 30 yearss after the coverage period.
& # 168 ; Within 90 yearss after finishing each CERCLA-funded response activity at a site.
& # 168 ; Within 90 yearss after expiration or closeout of the CA.
– Federal Cash Transaction Reports ( FCTRs ) , covering grant payments ( by missive or recognition, Treasury cheque progresss or electronic transportations of financess ) , shall be submitted by FS.
& # 183 ; To fix a FCTR, outgo informations from the grant tracking spreadsheet and informations from single draw petitions is obtained. Instruction manuals on the dorsum of the FCTR signifier are utilized to come in informations onto the FCTR readying sheet. This signifier is so filled in and mailed to the Regional office.
& # 183 ; FCTRs are due quarterly, within 15 working yearss after the terminal of the one-fourth.
5. RECORDKEEPING Guidance
Effective recordkeeping is indispensable for cost recovery. Good recordkeeping provides a complete set of disbursal related records for each site and timely entree to these records. It is of import to stress that cost certification processs apply both to the State and to the State & # 8217 ; s contractors.
Direct entree to the files should be restricted. Files should be maintained in a locked file cabinet. Responsibility for keeping the files shall be assigned to OAS Administrative Officers and/or specifically designated OAS clerical or administrative staff.
a. PROCEDURES FOR USING THE FILE MAGIC ELECTRONIC Filing SYSTEM
Original paperss are scanned and indexed utilizing File Magic 5 Software. The undermentioned processs should be followed when utilizing this system. A File Magic manual is available for farther information.