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GAO-04-340R 1 (2004-01-13)

handle is hein.gao/gaocrptapvd0001 and id is 1 raw text is: 



    G AO


         Aco untability * Integrity * Reliability
United States General Accounting Office
Washington, D.C. 20548



                                    January 13, 2004

                                    The Honorable Lane Evans
                                    Ranking Democratic Member
                                    Committee on Veterans Affairs
                                    House of Representatives

                                    The Honorable Bob Filner
                                    Ranking Democratic 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:
                                    Improvements Are Needed in Internal Control Over Disbursements

                                    The Oil Spill Liability Trust Fund (Fund) is a $1 billion fund that has two
                                    major components: the Emergency Fund and the Principal Fund. The
                                    Emergency Fund is used for paying for federal removal actions and the
                                    initiation of natural resource damage assessments by designated federal,
                                    state, or Indian tribe officials, resulting from oil spills or the substantial
                                    threat of oil spills to the waters or shorelines of the United States. The
                                    Principal Fund is used for paying certain claims for uncompensated
                                    removal costs and damages 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 (USCG).

                                    In May 2002, at your request, we issued a legal opinion related to the uses
                                    and limitations of the Fund and concluded that the Fund is not available to
                                    pay employee salaries and other operating expenses.' The USCG reported
                                    that from fiscal years 1998 through 2002, $32.8 million from the Fund was
                                    used to pay costs associated with processing claims, including salaries and
                                    other operating expenses. In April 2003, the USCG returned the $32.8


                                    1These costs are to be paid out of an annual operating expense appropriation.


GAO-04-340R Oil Spill Liability Trust Fund Disbursements


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