Forest Service: Agency's Response to Our Recommendations on the Management of the Knutson-Vandenberg Fund - Government Accountability Office (GAO) report

Forest Service: Agency's Response to Our Recommendations on the Management of the Knutson-Vandenberg Fund - GAO Report

Date:	July 7, 1998
Report No.:	T-RCED-98-240
Pages:	11
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Subjects: Federal interfund transactions Forest conservation Forest management Funds management Government collections Internal controls Timber sales Trust revolving funds Knutson-Vandenberg Trust Fund Summary: The Knutson-Vandenberg Trust Fund is the Forest Service's primary source of money for the reforestation of timber harvest areas. The fund is also used to improve timber stands and other renewable resources within the harvested areas. Although the amount of expenditures from the Fund may vary from year to year, expenditures for fiscal year 1997 totaled a little more than $166 million. This testimony draws on a June 1996 GAO report (GAO/RCED-96-15) on shortcomings in the Fund's administration. GAO discusses (1) transfers from the Fund that have not been fully restored, (2) the effect of unrestored transfers on planned projects, (3) the lack of financial information to ensure compliance with the Knutson-Vandenberg Act's requirements, and (4) the lack of a standardized methodology for calculating and limiting program support costs. GAO also discusses the Agriculture Department's subsequent actions on GAO's recommendations for improving the management of the Knutson-Vandenberg program.