	Strengthening Resource Protection

In fulfilling its resource protection functions, Interior has faced a number  of management challenges in the past and will continue to face challenges  in the future. In particular, based on our recent work, we would like to  highlight three challenges in this area (1) protecting lives, property and  resources from wildland fires; (2) adapting to climate change; and  (3) protecting and securing federal lands from illegal activities. However, our nation’s wildland fire problem worsened dramatically over  the past decade. Strengthening the Accountability of Indian and Insular Area Programs

We have reported on management weaknesses in Indian and insular area  programs for a number of years. BIA continues to face challenges in  processing land in trust applications, and Interior’s Office of Insular  Affairs (OIA) continues to face challenges in providing assistance to  seven of the insular areas—four U.S. territories and three sovereign island  nations—with long-standing financial, program management, and  economic challenges. Improving Federal Land Acquisition and Exchanges

As the steward of more than 500 million acres, federal land sales,  acquisitions, and exchanges are important land management tools for  Interior. We  recommended that Interior take several steps to better manage the land  exchange program and protect federal funds. In November 2010, the  department estimated that the deferred maintenance backlog for fiscal  year 2010 was between $13.5 billion and $19.9 billion (see table 1). Interior has made progress addressing our prior recommendations to  improve information on the maintenance needs of NPS facilities and BIA  schools and irrigation projects. Management of Federal Oil and Gas Resources

Interior’s management of oil and gas resources has been a focus of a large  body of our work and an area where we have found numerous weaknesses  and challenges that need to be addressed. We designated Interior’s management of federal oil and gas resources as a  governmentwide high risk issue in February 2011. Interior faces ongoing  challenges executing its responsibilities to manage oil and gas production  from federal lands and waters in four broad areas: (1) oil and gas revenue  collection, (2) management of human capital, (3) the recently undertaken  reorganization of the bureaus dealing with oil and gas issues, and  (4) balancing timely and efficient oil and gas development with  environmental stewardship responsibilities. The results of the study may reveal the potential for  greater revenues to the federal government. We made a  number of recommendations to address these issues. As we stated in our  March 2009 testimony, additional revenues could be generated by  amending the General Mining Act of 1872 so that the federal government  could collect federal royalties on minerals extracted from U.S. mineral  rights. In addition, financial assurances and bonds from hardrock mining  and oil and gas operations could be enhanced to help ensure the  reclamation of federal land disturbed by these operations. Interior has been challenged to effectively protect its computer systems  and networks. Our recent work, as well as our analysis of agency and  Office of Inspector General reports, show that the department has not  consistently implemented effective controls to prevent, limit, and detect  unauthorized access to its systems or manage the configuration of  network devices to prevent unauthorized access and ensure system  integrity. The  department agreed with our recommendations and indicated that it has  initiated actions to implement them. Interior Management Challenges

Department of the Interior: Major Management Challenges. Federal Land Management: Challenges to Implementing the Federal  Land Transaction Facilitation Act.
Why GAO Did This Study

The Department of the Interior (Interior) is responsible for managing much of the nation's vast natural resources. Its agencies implement an array of programs intended to protect these resources for future generations while also allowing certain uses of them, such as recreation and oil and gas development. In some cases, Interior is authorized to collect royalties and fees for these uses. Over the years, GAO has reported on management challenges at Interior, which are largely characterized by the struggle to balance the demand for greater use of its resources with the need to conserve and protect them. Furthermore, given the government's long-term fiscal challenges, Interior faces difficult choices in balancing its responsibilities. This testimony highlights some of the major management challenges facing Interior today. It is based on prior GAO reports.

What GAO Found

As GAO's previous work has shown, Interior faces major management challenges in the following seven areas: (1) Strengthening resource protection: Interior has not yet developed a cohesive strategy to address wildland fire issues as GAO has recommended in the past. In addition, Interior faces challenges in adapting to climate change and protecting and securing federal lands from illegal activities. (2) Strengthening the accountability of Indian and insular area programs: Having a land base is important to Indian tribal governments. Concerns remain about the effect of a February 2009 Supreme Court decision on the process for taking land in trust for tribes and their members. In addition, seven insular areas--four U.S. territories and three sovereign island nations--continue to face financial, program management, and economic challenges. (3) Improving federal land acquisition and exchanges: As the steward of more than 500 million acres of federal land, land sales, acquisitions, and exchanges are important land management functions for the department. The Federal Land Transaction Facilitation Act of 2000 has had limited success and Interior needs to better manage land exchanges and protect federal funds. (4) Reducing Interior's deferred maintenance backlog: While Interior has made progress improving information on maintenance needs, the dollar estimate of the deferred maintenance backlog for fiscal year 2010 was between $13.5 billion and $19.9 billion. (5) Management of federal oil and gas resources: GAO designated Interior's management of federal oil and gas resources as a governmentwide high-risk area in February 2011. Interior faces ongoing challenges in four broad areas: (1) oil and gas revenue collection, (2) management of human capital, (3) reorganization of the bureaus dealing with oil and gas issues, and (4) balancing timely and efficient oil and gas development with environmental stewardship responsibilities. (6) Generating revenue and enhancing financial assurances and bonds: Additional revenues could be generated by amending the General Mining Act of 1872 so that the federal government could collect federal royalties on minerals extracted from U.S. mineral rights. In addition, financial assurances and bonds from hardrock mining and oil and gas operations could be enhanced to help ensure the reclamation of federal land disturbed by these operations. (7) Improving information security: Interior has been challenged to effectively protect its computer systems and networks. The department has not consistently implemented effective controls to prevent, limit, and detect unauthorized access to its systems or manage the configuration of network devices to prevent unauthorized access and ensure system integrity.

What GAO Recommends

GAO has made a number of recommendations intended to improve Interior's programs by enhancing the information it uses to manage its programs and strengthening internal controls. Interior has agreed with most of the recommendations and taken some steps to implement them. However, Interior has been slow to implement other recommendations, such as developing a cohesive wildland fire strategy and improving oversight of oil and gas activities.