Proper  tracking and recording of MLAP costs is especially important since this  program is partially funded through mining fees that Congress has made  available only for mining law administration program operations. Conclusions

The Congress and program managers need accurate cost information in  order to make informed program and budgeting decisions. However,  the results of our work at BLM show that BLM’s financial records have not  accurately reflected the true costs of its programs because the costs of  some labor and a number of contracts and services costs were not charged  to the appropriate program. Other subactivities have benefited from the  charging of these improper costs to MLAP. Correspondingly, fewer funds  have been available for actual MLAP operations. BLM has taken steps to  make correcting adjustments for certain of these improper charges,  including the development of an Instruction Memorandum. Therefore, until additional procedures for MLAP are developed and  implemented, the Congress and program managers can place only limited  reliance on the accuracy of MLAP cost information. Recommendations for Executive Action

We recommend that the Director of the Bureau of Land Management take  the following four actions:  make correcting adjustments for improper charges to appropriation   remind employees that time charges and other obligations are to be  made to the benefiting subactivity as stated in BLM’s Fund Coding  Handbook and develop a mechanism to test compliance;   provide detailed guidance clarifying which tasks are chargeable to  MLAP operations, such as those listed in the background section of this  report; and  conduct training on this guidance for all employees authorized to charge  MLAP.
Why GAO Did This Study

The Bureau of Land Management's (BLM) Mining Law Administration Program (MLAP) is responsible for managing the environmentally responsible exploration and development of locatable minerals on public lands. The program is funded through mining fees collected from the holders of unpatented mining claims and sites and by appropriations to the extent that fees are inadequate to fund the program. Congress and program managers need accurate cost information in order to make informed program and budgeting decisions.

What GAO Found

However, GAO found that BLM's financial records did not accurately reflect the true costs of its programs because the costs of labor and a number of contracts and services costs were charged to MLAP and not to the appropriate program. As a result, other subactivities benefited from the charging of these improper costs and fewer funds have been available for actual MLAP operations. BLM has taken steps to make correcting adjustments for improper charges to MLAP contracts and services; however, additional adjustments are needed to correct for labor costs that were improperly charged to MLAP. Until these adjustments for improperly charged labor are made, Congress and program managers can place only a limited reliance on the accuracy of MLAP cost information.