LegiStorm

Summary:
What GAO Found

The Department of Commerce's National Oceanic and Atmospheric Administration's (NOAA) Coral Reef Conservation Program (CRCP) brings together expertise from several offices across NOAA that carry out projects related to coral reefs. The CRCP supports research and restoration in two states and five territories with jurisdiction over coral reef ecosystems—Florida, Hawaii, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

To identify priorities for the program, the CRCP holds workshops or individual meetings with points of contact in each of the seven jurisdictions to identify jurisdictional priorities. After these jurisdictional workshops, the CRCP holds a national workshop with NOAA staff. The workshops inform the CRCP budget, which the program develops in 3-year cycles.

The CRCP tracks obligations and expenditures in the Commerce Business System, a Department of Commerce financial system. This system delineates obligations and expenditures by various codes, such as fiscal year and object class (e.g., contractual services or grants). Senior CRCP and budget officials told us they regularly use obligation data to monitor progress in obligating funds but do not typically access or use expenditure data for management of the program as a whole. These officials said that in managing the CRCP, they focus on obligating CRCP funds rather than on ensuring they are expended.

Even if CRCP officials regularly access expenditure data for the whole program, they cannot (1) determine project-specific expenditures for all CRCP projects from NOAA's financial system, or (2) compare expenditures to obligations for all projects in the CRCP's annual spend plans, according to our analysis of CRCP documents. This limitation is due in part to the CRCP not assigning task codes to identify its projects in the Commerce Business System.

Federal standards for internal control state that management should use quality information to achieve the entity's objectives. By regularly tracking and accessing expenditure data on CRCP projects from the Commerce Business System, the CRCP will be better informed about actual expenditures and be able to compare expenditures to obligations in its annual spend plans and respond to requests for this information.

The CRCP has policies and guidance and shares information to promote transparency and accountability within NOAA and with outside entities such as Congress and the public. However, GAO identified some information that the CRCP has not communicated. For example, the program has not communicated information about obligations or expenditures on specific internal CRCP projects with outside entities. In addition, the program has not made its performance results available to outside entities.

GAO's key practices for evidence-based policymaking and federal standards for internal control state that federal organizations should externally communicate relevant key information on their learning and results to key stakeholders. By communicating information related to its performance results and internal expenditures to outside entities, the CRCP can increase its transparency and accountability in administering the program.

Why GAO Did This Study

The National Defense Authorization Act for Fiscal Year 2023 includes a provision for GAO to examine several aspects of the CRCP, including the CRCP's budget and accounting practices. This report discusses how the CRCP identifies priorities and develops its budget, tracks obligations and expenditures, and promotes transparency and accountability.

To do this work, GAO reviewed and analyzed relevant laws, policies, and guidance related to the CRCP and its budget and accounting practices. GAO also reviewed NOAA's system for tracking obligations and expenditures, data generated from this system, and audit documentation. GAO also interviewed NOAA officials and CRCP grant recipients, including representatives from all seven jurisdictions.