Conclusion

The use of incorrect or unreliable data and inappropriate assumptions in RSPA’s calculation of the minimum PSF balance resulted in RSPA overstating the necessary minimum balance. Crucial to a reasonable calculation of the PSF minimum balance is an analysis of expected receipts as compared to expected obligations. Until RSPA performs this type of analysis, it will not be able to provide a reasonable estimate of the required minimum PSF balance. In addition, the timing of OPS’ cash receipts is affected by OPS’ untimely data collection and verification process. This process results in delayed billings and likely delays cash receipts, resulting in a larger required minimum PSF balance. OPS’ current efforts to implement a new Internet- based data collection and billing system have the potential to shorten what is currently an extended billing process. Finalizing the operator data on which the fee assessments are based at an earlier date would allow billing to take place shortly after the agency received its appropriation for the fiscal year. Accordingly, fee revenue would likely be available for obligation in a more timely manner and help reduce the required minimum PSF balance.
What GAO Found

The use of incorrect or unreliable data and inappropriate assumptions in the Research and Special Program Administration's (RSPA) calculation of the minimum Pipeline Safety Fund (PSF) balance caused RSPA to overstate the necessary minimum balance. Crucial to a reasonable calculation of the PSF minimum balance is an analysis of expected receipts as compared to expected obligations. Until RSPA does this type of analysis, it will be unable to reasonably estimate the required minimum PSF balance. In addition, the timing of the Office of Pipeline Safety's (OPS) cash receipts is affected by OPS' slow data collection and verification process. This process results in delayed billings and likely delays cash receipts, resulting in a larger required minimum PSF balance. OPS' current efforts to implement a new Internet-based data collection and billing system could shorten what is now an extended billing process. Finalizing the operator data on which the fee assessments are based at an earlier date would allow billing to take place shortly after the agency received its appropriation for the fiscal year. Accordingly, fee revenue would likely be available for obligation in a more timely manner and help reduce the required minimum PSF balance.