In  managing the Caldera, the Trust is to protect and preserve the land while  attempting to achieve a financially self-sustaining operation. Appointees are to be selected based on their  expertise or experience. The Trust Is Making Progress toward Preserving and Protecting the Caldera and Providing Recreation and Sustained Yield Management

As required under the Preservation Act, the Board has taken steps to  establish and implement management policies to achieve the goals of  preserving and protecting the Caldera and providing for public recreation  and sustained yield management. In particular, the Board (1) established a  basic organization, (2) began to address infrastructure problems, (3)  granted limited access to the public through its interim grazing and  recreation programs, and (4) established an adaptive management  framework. Roads. Buildings, fences, and other facilities. Hiking. The Trust Has Much Work to Do to Meet Its Statutory Goals

Despite the progress made, the Trust has much work to do to meet its  mandated goals under the Preservation Act. The Trust has not developed an annual performance plan with measurable  goals for the activities it allows on the Caldera, which would help it  determine whether it is accomplishing the overall strategic goals. The Trust Has Not Addressed Risks Potentially Posed by Fire and Legal Liabilities

The Trust has not addressed program risks, including fire and legal  liabilities that could undermine its ability to meet its financial obligations. According to the National Fire  Plan, agencies need a fire management plan to outline a decision-making  process for responding to naturally occurring fires. For example, in May 2005, a fire on the Caldera burned about 82 acres  before being suppressed—at a cost of about $338,000. In the opinion of the  Forest Service Region 3 Fire Manager, this fire could have been left to burn  because it did not threaten any key resources or public infrastructure. The Trust Has Not Developed Required Mechanisms for Monitoring Progress in Meeting Financial and Other Goals

The Trust has yet to develop the mechanisms needed to monitor progress  in meeting its financial and other obligations under the Preservation,  Control, and Results Acts. The Trust has also experienced high turnover among key staff. To establish a more effective management control program, we  recommend that the Board develop   a strategic and performance plan that identifies measurable goals and  objectives for protecting and preserving the Caldera, providing  recreation, sustaining yield, and becoming financially self-sustaining;  a plan for becoming financially self-sustaining that includes financial  information detailing how and when the Trust will try to achieve this  goal;    mechanisms for periodic performance monitoring and reporting,  including annual performance reports that enable Congress and the  Trust to track progress in achieving the Trust’s program goals and  objectives; and  a plan for the timely replacement of key personnel. Comments from the Valles Caldera Trust

Guiding Principles of the Valles Caldera Trust

1. Future generations. 5.
Why GAO Did This Study

In 2000, Congress authorized the purchase of the Valles Caldera (the Caldera) in north-central New Mexico. The Valles Caldera Trust (Trust), a wholly owned government corporation, is to become financially self-sustaining and to manage the Caldera for multiple purposes while sustaining the land's valuable natural resources. GAO was mandated to assess the progress the Trust is making in meeting its statutory goals.

What GAO Found

The Trust has made progress in meeting its goals to preserve and protect the Caldera for future generations as well as to provide for public recreation and sustained yield management. Specifically, it has (1) established a basic organization with about 25 staff; (2) drafted policy and procedures and contracted with the Department of the Interior's National Business Center for accounting services; (3) begun engineering and construction efforts to address infrastructure problems--roads, water systems, fences, and buildings; (4) established interim grazing and recreation programs; and (5) implemented an adaptive management approach that focuses on making management decisions based on scientific data. The Trust, however, still has much work to do to meet its goals, including achieving a financially self-sustaining operation. Strategic and performance plans with measurable goals and objectives: For example, the Trust must decide on the level of activities (e.g., grazing, hiking, and hunting) that will be allowed without seriously harming the land's resources, and yet will still provide sufficient recreational activity and sustained yield management. The Trust also must select additional opportunities for generating revenues, such as securing private donations. Plans to manage program risks: The Trust has not addressed program risks, including fire and legal liabilities. For example, the Trust lacks a fire plan, which would outline a decision-making process for responding to fires, and has not obtained liability coverage. Because it did not have a fire plan, the Trust spent about $338,000 in May 2005 to suppress a fire, which, in the opinion of the Forest Service Region 3 Fire Manager, could have been left to burn because the fire did not threaten any key resources or public infrastructure. Also, because it has not obtained liability coverage, the Trust has restricted the number of Caldera visitors. Mechanisms for monitoring progress: Among other things, the Trust has not had annual financial audits and has not prepared performance reports that would help it assess its progress toward meeting its financial and other goals. The Trust's efforts to raise the revenues needed to bring it closer to meeting its financial self-sustainability goal could be undermined by one or more of these issues. Frequent turnover in Board members and key staff has contributed to the problems experienced to date.