10/18/04 SHORTAGE OF FUNDS TO PAY ESI

MOPR Notes:  See LEV20041018 for cmts re this hand-out there.  


 

 

18 October 2004

 

               J. Zerega

VALLEY PARK, MISSOURI PROJECT

SHORTAGE OF FUNDS TO PAY ENVIRONMENTAL SPECIALISTS, INC.

FISCAL YEAR 2004

$2,093,500 in fed funds reprogrammed into the VP project in 9/04.  These funds were expended on the ESI contract. 

ESI earnings in FY 04 (including est'd Sept earnings of $1.4M) $ 8,017,996
   
Payments & accruals in FY 04 (excluding interest)   3,510,300 *
   
Owed to ESI at the end of FY 04 (excluding interest)   4,507,696
   
   
Interest paid in FY 04      22,809
Interest owed on unpaid billings thru Aug billing        5,974
   
* Sponsor funds expended in FY 04;  cash contributions $178,008, sewer relocations
$22,800.  Fed funds expended in FY 04:  $3,309,492
   
   
FISCAL YEAR 2005         
   
ESI will complete the contract & will have earned the  
   total contract amount plus mods & interest, say... $14,800,000
   
Payments to ESI in FY 04  -  3,510,300
   
Approximate fed amount that will be paid to ESI  
   from the President's $2,060,000 FY 05 Budget request  - 1,000,000 **
 
Approximate sponsor funds that will be paid to ESI  -    250,000 **
   
ESI will be owed about   10,039,700
   
**  We are paying ESI as early in FY 05 as possible to reduce interest payments.  Corps
paid ESI $950,000 in principal & interest in early 10/04 using fed funds.  Corps requested
$120,000 in sponsor cash contributions related to the fed funds received in 9/04.  Corps
withdrawing $65,000 of FY 05 cash contributions related to the initial FY 05 CRA funding.