The Environmental Protection Agency (EPA) has a cost-reimbursable agreement with the Energy Research and Development Administration (ERDA) under which EPA Environmental Monitoring and Support Laboratory-Las Vegas (EMSL) conducts offsite radiological monitoring of ERDA Nevada Test Site and is reimbursed by ERDA for providing those services. ERDA responsibilities under the agreement will be transferred to the Department of Energy shortly.

EPA has been substantially overcharging ERDA for EMSL services. The exact amount of overcharge was indeterminable, however, due to inadequate accountability by EMSL for costs incurred under the agreement and uncertainty about which costs should be reimbursable under the agreement. During the first 6 months of fiscal year 1977, EMSL had charged ERDA $949,900 for costs of providing agreement services, about 95 percent of which costs were labor charges. EMSL was generally not charging ERDA for the actual labor costs of the employees who were doing the monitoring.

Status Legend:

Review Pending-GAO has not yet assessed implementation status.

Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.

Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.

Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.

• Review Pending
• Open
• Closed - implemented
• Closed - not implemented

Recommendation for Executive Action

Recommendation: The existing agreement should be revised to provide for specific identification of costs or cost elements that should be reimbursed. The Administrator, EPA, should issue instructions requiring EMSL employees to record and maintain appropriate records of the actual costs incurred for each cost element under the agreement and that such records support all future charges submitted to ERDA and the Department of Energy for reimbursement.

Agency Affected:

Status: Closed

Comments: Please call 202/512-6100 for additional information.