Environmental Cleanup: Inadequate Army Oversight of Rocky Mountain Arsenal Shared Costs
NSIAD/AIMD-97-33
Published: Jan 23, 1997. Publicly Released: Jan 31, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed cleanup costs claimed by Shell Oil Company and shared by Shell and the U.S. Army at Rocky Mountain Arsenal, Colorado, focusing on: (1) selected aspects of the processes that the Army uses to review cost claims under its settlement agreement with Shell; and (2) the adequacy of these processes.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | The Secretary of the Army should establish specific procedures for the examination of Shell's cost claims and documentation, including costs of its contractors and subcontractors. |
The Army established a standing operating procedure for the review and approval of Shell's cost claims in December 1996.
|
| Department of the Army | The Secretary of the Army should establish standard procedures for the approval and documentation of supplementary agreements regarding the allocability of costs and treatment of capital assets and real estate. |
The standing operating procedure on cost allocability was completed on January 31, 1997 and the standing operating procedure on capital assets/real estate was completed February 26, 1997.
|
| Department of the Army | The Secretary of the Army should require that such key duties and responsibilities as recording and reviewing transactions be performed by different individuals. |
DOD described the current procedures used, separation of duties, and how the Army will continue to look for organizational or procedural ways to improve independent oversight of the Army-Shell shared costs. Under a new procedure, internal review, U.S. Army Industrial Operations Command, Rock Island, performs quarterly reviews (3 done thus far)and separately, the Army Audit Agency, at the request of the Acting Secretary of the Army, is scheduled to perform a review.
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Topics
Accounting proceduresArmy facilitiesChemical weaponsClaims processingClaims settlementCost sharing (finance)Environmental monitoringExpense claimsInternal controlsPollution controlWaste disposalEnvironmental cleanups