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GAO-07-659R 1 (2007-03-28)

handle is hein.gao/gaocrptaveo0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 March 28, 2007 The Honorable Nick J. Rahall II Chairman, Committee on Natural Resources House of Representatives Subject: Posthearing Questions: Major Management Challenges at the Department of the Interior Dear Mr. Chairman: On February 16, 2007, I testified at the Committee's oversight hearing on Reports, Audits, and Investigations by the Government Accountability Office and the Office of Inspector General Regarding the Department of the Interior. 1 This letter responds to your February 26, 2007 request, in which members of the Committee asked additional questions about GAO's past reports. To answer these questions, we relied primarily on a number of GAO reports, as well as our body of knowledge in these areas. We prepared this letter during March 2007 in accordance with generally accepted government auditing standards. Because this letter was primarily based on previously issued reports, we did not seek agency comments on a draft of this letter. Our responses to the questions follow. 1. Based on GAO's reports and audits, what are the fiscal costs resulting from mismanagement of programs and the revenue losses associated with the failure to collect fair market value for the use and development of resources under the jurisdiction of the Department of the Interior? What priorities should Congress pursue to address these problems? Past GAO reports have identified a number of areas in which the Department of the Interior (Interior) has not collected all revenue authorized. The most significant source of forgone revenue owing to mismanagement is the department's implementation of the Outer Continental Shelf Deep Water Royalty Relief Act enacted in 1995-amounting to at least $1 billion-because of the failure to include price thresholds in leases issued in 1998 and 1999. All other sources of potential lost revenue from Interior programs that we have reported on pale in comparison with this amount. We have also identified revenue that the department could collect should the Congress choose to give it additional authority in certain programs. 'GAO, Department of the Interior: Major Management Challenges, AO -07-502T (Washington, D.C.: Feb. 16, 2007). GAO-07-659R Interior Management Challenges

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