To implement these provisions  in the Act, the Secretary chartered the Management Council and the Task  Force as federal advisory committees. According to its charter, the Task Force also functions only in an advisory  capacity and reports to the Secretary of the Interior. For the 5 years from the beginning of fiscal year 2000 through the end of  fiscal year 2004, according to FWS officials, the Klamath River Basin  Conservation Area Restoration Program received about $9.8 million in cash  and noncash contributions: almost $6.3 million from federal sources and  almost $3.6 million from nonfederal sources. The federal funds included  about $5.1 million in appropriations derived from FWS’s Resource  Management appropriation account,which includes a lump-sum  appropriation that FWS allocates to various program activities, including  the Fisheries Program. In  addition, according to FWS officials, the Restoration Program benefited  during that same time period from about $1.7 million in cash and noncash  contributions from federal entities that participated in restoration projects  and from $5.8 million in cash and noncash contributions from nonfederal  entities that participated in restoration projects. Combining that amount  with the $4.7 million in cash and noncash contributions provided to  restoration projects by project participants brings the total invested by the  Restoration Program directly to restoration projects during the 5-year  period to a little over $7.6 million. The Secretary of the Interior and the  Director of FWS have taken a number of actions to formulate, establish,  and implement the Restoration Program, including designating a  conservation area, establishing the Management Council and the Task  Force, formulating a long-term plan, and funding over 350 restoration  projects in the Klamath River Basin. Regarding the financial requirements  of the Act, FWS officials have correctly identified the need to fund some  Restoration Program expenditures, such as certain travel and salary  expenses for FWS officials who are members of the Management Council  or the Task Force, from monies that are not subject to the Act’s restrictions. However, they have not yet incorporated into their accounting procedures  and record-keeping practices sufficient controls to provide reasonable  assurance of compliance with those provisions of the Act. In addition,  concerning the Act’s requirement that 50 percent of the Restoration  Program’s costs be provided by nonfederal sources, FWS officials do  collect some information regarding nonfederal contributions to restoration  projects, but they do not distinguish between cash and noncash  contributions in project documents, document their valuation decisions  regarding the noncash contributions, or take steps to verify that nonfederal  contributions meet the Act’s criteria. Incorporating these additional  controls into the Restoration Program’s operations would not be difficult or  costly, and would provide reasonable assurance of compliance with those  provisions of the Act. Objectives, Scope and Methodology

The objectives of this engagement were to provide information about  (1) sources and amounts of funding received by and for the Restoration  Program for fiscal years 2000 through 2004; (2) amounts of funds received  by and for the Restoration Program for fiscal years 2000 through 2004 spent  for restoration projects, travel reimbursements, administrative expenses,  overhead, and technical support; (3) amounts of funding received by the  Task Force and Management Council for fiscal years 2000 through 2004  spent for the purposes of restoration projects, travel reimbursements,  administrative expenses, overhead, and technical support; and (4) whether  the Secretary of the Interior has complied with specific requirements  contained in certain provisions of the Klamath River Basin Fishery  Resources Restoration Act.
Why GAO Did This Study

The Klamath River Basin Fishery Resources Restoration Act (Act), passed in October 1986, required the Secretary of the Interior to establish and restore a conservation area in that river basin, created a management council and a task force to assist and advise the Secretary, and authorized $21 million until September 30, 2006. The restoration program reports that it had been appropriated over $17 million by September 2005. In anticipation of the authorization's expiration, GAO was asked to provide information for fiscal years 2000 through 2004, the most recent 5-year period for which complete information is available, about (1) funding for the program; (2) expenditures by the program for restoration projects, travel expenses, administrative expenses, overhead, and technical support; (3) expenditures by the management council and the task force; and (4) whether the Secretary complied with certain requirements of the Act. GAO obtained funding and expenditure information from FWS but did not audit that financial information.

What GAO Found

The Secretary of the Interior and the U.S. Fish and Wildlife Service (FWS) have taken a number of actions to formulate, establish, and implement the Klamath River Basin Conservation Area Restoration Program, including designating a conservation area, establishing the management council and the task force, formulating a long-term plan, and funding restoration projects in the Klamath River Basin. The restoration program reports receiving a little over $9.8 million in cash and noncash contributions during fiscal years 2000 through 2004 from federal and nonfederal sources. The federal portion totaled almost $6.3 million and consisted of about $5.1 million from FWS's lump-sum resource management appropriation account, and almost $1.2 million in cash and noncash contributions from federal entities that participated in restoration projects with FWS, according to FWS records. FWS records also show that the nonfederal portion consisted of almost $3.6 million in cash and noncash contributions from nonfederal entities that participated in restoration projects. During the same 5-year period, the restoration program spent about $7.6 million in cash and noncash contributions for restoration projects, about $200,000 for travel reimbursements, about $1.1 million for administrative expenses, and about $491,000 for overhead, according to information provided by FWS officials. Information was not available on technical support expenses incurred by the restoration program. The management council and the task force serve solely in an advisory capacity and do not directly select or manage projects. FWS officials told GAO that they paid about $800,000 to cover operating costs of the management council and the task force for the 5-year period. Regarding the financial requirements of the Act, FWS officials have correctly identified the need to fund some Restoration Program expenditures from monies that are not subject to the Act's restrictions, and FWS officials told GAO they believe they are in compliance with these provisions. However, FWS has not yet incorporated into their accounting procedures and record-keeping sufficient controls to provide reasonable assurance of compliance with those provisions of the Act. In addition, the Act requires that half of the restoration program's costs be funded by nonfederal sources. FWS officials collect some information on restoration projects regarding any nonfederal contributions, but they do not distinguish between cash and noncash contributions in project documents, document their valuation decisions regarding the noncash contributions, or take steps to verify that nonfederal contributions meet the Act's criteria. Incorporating these additional controls into the Restoration Program's operations would not be difficult or costly, and would provide reasonable assurance of compliance with those provisions of the Act.