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GAO-04-114R 1 (2003-10-03)

handle is hein.gao/gaobaamhy0001 and id is 1 raw text is: I Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 October 3, 2003 The Honorable Lane Evans Ranking Minority Member Committee on Veterans Affairs House of Representatives The Honorable Bob Filner Ranking Minority Member Subcommittee on Coast Guard and Maritime Transportation Committee on Transportation and Infrastructure House of Representatives The Honorable Corrine Brown House of Representatives Subject: U.S. Coast Guard National Pollution Funds Center: Claims Payment Process Was Functioning Effectively, but Additional Controls Are Needed to Reduce the Risk of Improper Payments The Oil Spill Liability Trust Fund (Fund) is a $1 billion fund authorized by the Oil Pollution Act of 1990 (OPA) to pay for (1) federal removal actions, (2) certain claims for uncompensated removal costs and damages, and (3) natural resource damage and restoration activities resulting from oil spills or the substantial threat of oil spills to the waters or shorelines of the United States. The Fund is administered by the National Pollution Funds Center (NPFC) of the U.S. Coast Guard. In May 2002, at your request, our Office of General Counsel reported on legal issues and limitations of the Fund and concluded that certain administrative costs were inappropriately being paid out of the Fund. In light of this conclusion, you asked that we review the internal controls over disbursements from the Fund. This report summarizes the information provided during our briefing on our review of claim payments made from the Fund, which was provided to your staff on September 17, 2003. A second briefing will be provided to your staff on the results of our review of controls over operating expenses and other disbursements from the Emergency Fund.' The enclosed briefing slides highlight the results of our work and the information provided. Specifically, we reviewed the Fund to determine whether 'The Emergency Fund is used to pay for emergency removal activities and the initiation of natural resource damage assessments. GAO-04-114R Oil Spill Liability Trust Fund Claims

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