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WBILM LIBRA: STATES 8806447 DEPARTMENT oneINTERIOR ANNUAL REPORT DEPARTMENTAL REPORT ON ACCOUNTABILITY FISCAL YEAR lo Oe The Chief Financial Officers Act of 1990 was enacted to improve the financial management practices of the Federal government, and to ensure the production of reliable and timely financial information for use in managing and evaluating Federal programs. The Government Management Reform Act of 1994 (GMRA) furthered the objectives of the Chief Financial Officers Act by requiring all Federal agencies to prepare and publish annual financial reports, beginning with fiscal year 1996 activities. At the same time, the GMRA authorized the Office of Management and Budget (OMB) to implement a pilot program to streamline and consolidate several statutory financial management and performance reports into a single, annual Accountability Report. The 1998 Accountability Report is the Department of the Interior’s third report under the pilot OMB program. For a second year in a row, Interior is proud to report that its consolidated financial statements have received an unqualified audit opinion. The 1998 unqualified audit opinion is a tribute to the collaborative efforts of Interior’s program and financial staffs in managing and reporting on the Department’s financial resources. The 1998 Accountability Report has been revised to include a detailed discussion of Interior’s five strategic goals. These goals unify the diverse missions of the Department and provide the strategic direction for managing and investing taxpayer resources to protect and preserve our natural and cultural heritage for future generations. All comments regarding the content and presentation of this report are welcome. An electronic version of the report is available on Interior's Office of Financial Management World Wide Web site (www.doi.gov/pfm). Comments may be addressed to: ee- es U.S. Department of the Interior Office of Financial Management, Room 5412 1849 C Street, N.W. Washington, D.C. 20240 For additional information about the Department of the Interior, please contact: U.S. Department of the Interior Office of Communications, Room 6013 1849 C Street, N.W. Washington, D.C. 20240 or visit Interior’s Internet Web site at www.doi.gov. About the cover: Glacier National Park, Montana (photo by Deb Carey) ee EPARTMENT OF THE INTERIOR Fiscal Year 1998 Accountability Report April 1999 Pigs ssi ¢ ft tadun agp ep pei “JiPey any ee oe a wand, Chea Ae ; ? ‘ Pra re it ° uM pireyain 4 “ipres (ieee ape telis, deka gphb ing =e " a a : A . ; 1 yie 4 iy e Ws~ ~ é \ « " ? . A : d i ita i at La a 1 _ = el a J ¥ ; 7 ch é is - sacl ons e aan - } seit! A law ie s ib ® = é 2 ® . Wa . - rm Pei! 7 c 2 ees i 169 f ifpeTr3 * ha oe VFiliteevpol Ir TABLE OF CONTENTS Pere RiP UCe DAD LItUrO ech etary Olvties LLELiOtie isa teuseeiesechnes catans ode tterdioekaceeeseenessttosssselectiveessyecbentieys ii eee MER IE RTRIME Tony MOTTE ITTATICIAL COLISCeL arcs spe ctyersattg: cer tates cai cet cssssasssesegetinsestsconsdnesedednaconssonesassbanezeens iv PAO RORELE IYES TRUOT? cosconcnce nue B AERA GARA a eee a ee Bo a EO ee eo ere eee Sees aD 1 syerperg inert: Owneas Gn cel ANTE Sal a ao ra Bia Ue cer Cee eee MSE Pret one area t ONDER OAL GOT eae coe sneer claates Mi pnb desea cio et alee ee veut ieee erate 3 tna bilei ta de eee ead 4 CPO BpS eg 0, eying hCGS ANTA BME E§ O T NS tosh ea be pe ated Po perience veer ine viceky py bia Tera ehre e 16 [SUG UIIGIRYE! AGI BES cco note mrvecan nei a 2eceN acted ee element deat be heei pb eie botc Pres eed ae 24 WE AMLG OAN CEMV ICA SHIE S ere et ere rat ate ns eeaetcetoceagvaraaca aecatontteehereer eeorresesteetigeeeys 30 NDE HIME SERGSh SEEING ETITEIL EA Ali 0 SON ERE REY) DR RT CEPT PRE ME ETE 31 AGENI YE STOS IEE ETV ERe e SipA M a eeet e MARA teA O ea RRP CRE SE Of OCR RRO ONE 39 iesydaeen a Coroiiataay beni r VG OT) soemerey ceo ar ecer peony prin neennrhe Seperate mein eel ererere enn lope peepee erent 45 PoPmer UMC ESOUCTELC CIEI TIATIClA LO CALCITICIC opter vec ceer eas tiear ee cevecetat fade tice fecers<p<ncs<cnsgsccusrs cnaestccsaceeseresesessars af 1P RE RIBDAL TOPOSI OUS RILGTR DE ROR SI ONE URC ERE ER ie ENR 58 LO PESEIOMUgET ELD AULD A TICILSIRLCIICIES set theese. oe Re Ped ected cbc faa cds Soav usu sweod Speeo one sonranacaetasbese: 64 DE OME Ca TCLAL TOI OTTOM CN eee er ee ee toi cate ee act Sek Stites irapevevecnssrbetocdsdpneosingesdeigesae¥bs 91 Bee ECS DEN SSCE SEA TIC IN eS CICIE S etree esse eat oss tenes nsealrarss os coptrghidsssucennssapensocwhssicenogsaciacees 101 NPI72 HOVE SRO Oe Rae AN Oe OL co Tn ee ee ne ee eee 102 INSB IRD EIS RO D POTS Ko Deel pho RO Oreo ee OUTLET He ee ET ee en ee 106 CMiEaf ig Miele ee Ce SL See Beka A ae ON, Oe Petes BM acca separ she iach sdetdthy lean dasbedas connie 109 RDs eer Tae Lea E/iaVid al JEUCION ENT irk. 6 yt, Acetate Ate) oh kL MAbs sp xino Live)c es serupesh Matis cvad Teh os} Li3 Be eI ta ACOE LL) Oe ies ROT Pen ee ee D RE AUi es ae tv safe Coc enrnrevecoseeanesosuucions 114 Neca yore! Cardy Steal PO Pent yictee. eatae tet emt pest. Sct sd Bessa bdo dzasdnecviitiy Tisoie nd 116 Peercerrigea yn ligka (Spier oe weee etre eee Ako tics aad tales tat Ravens Mae COM Se EL suh eh bdURZauy eee btodadess Soden sangeches dete 117 MAELOTIA GIL OREO CanM ota tes Mees Sepata uses,» Mngt le, HRN ORT. op bistein hans Dip Laakso. evseh oseaninez edad 118 PBT OPEA LA TE ALlE IS et ten pies ts Seanenetverae neta oe era eRe eG ETAL LES OES. APO, ES, 2 122 AI ALVI GIER SCE DICE reser Wace hee eee ortc ep ikest au aes vecsenaynion san vanessa svenons 129 ar eOIOt al GO IVA TiaCiaviHCy tat, Keke, A Aaah SA eh ORE. Sesto. ey a ale, Ceetketctcde Ween. teed 132 es he 0070 ice yee ATE; Greate AURO NEw ereeeen N,N e PONDS, te Celealh cst }2. Teese ibe beee Aes cL 138 WSO OVARCCIAIICTIAO SEM MINIT: Skis ts IMENT I PREM ON NOUN, GSUAID Lads elon Rashes ARB ooRilanh new told 142 Bee ase Vib AU CHICHEADETULCON AW M1, dred et}. ast MAE, See ee AR Nd ME vas Tad btaaddcrbvonsethecihh 146 ROTC OR SUFI LCe UAETIEI ee, ee eae St ee ME, MEN EET, cA is tea. 150 LLG Uisai cyr d eyS ha ban Pati besl eM beya taed ad ar DAS IB Pec necteoc tvb end on ae REPEL CLL DORR PEDERI WEEE 153 Bea ERMRAE NONIE IVT LG Pes e eccce evans ctaacspnscetteac ee cares toh a tteete site ahyS ecsatadeatensddesnsatein sacbiennehoneosincisersas 159 LETTER FROM THE SECRETARY At the Department of the Interior, we are proud to protect and provide access to our Nation’s natural and cultural heritage and to honor our trust responsibilities to Native Americans. I am proud to report on our accom- plishments for fiscal year 1998. Serving the Public Interior is committed to providing superior service to our customers, part- ners, and stakeholders. By asking for and listening to the public’s opinions and ideas, and taking action to address concerns, we are making substantial improvements in our service to the Nation. The national parks, refuges, and other Federal lands host more than 300 million visits annually, and those visits should be enjoyable, safe and educational. We continue to seek to improve our understanding of the public we serve so that we can protect the land and share it for the future. We are also working hard to improve visitor experience through partnerships with other Federal agencies, State and local governments, and private sector groups. Interior has taken great strides in recent years toward becoming a more streamlined organization. Since 1993, we have reduced Interior’s staffing level by approximately 14 percent. Despite this workforce reduction, we have continued to provide high quality service to the American public. Investing in the Future Interior invests its energy and its resources to protect America's scenic beauty and its cultural heritage. National parks, refuges, and public lands are the heart of the Nation's natural, cultural, and historical legacy. As steward of these unique resources, the Department faces growing demands to rehabilitate an aging infrastructure of public facilities and to protect natural and cultural resources. New investments are needed to ensure visitor safety at Interior facilities, safe working conditions for employees, and safe facilities for students attending Indian schools. In 1998, we presented these growing requirements to Congress; Congress responded by providing over $850 million for maintenance and construction in fiscal year 1999, an increase of 4.4 percent over Bek sis Restoring Ecosystems: Over the last 5 years the Administration has implemented three large scale watershed restoration efforts using new methods, partnerships, and renewed public participation In 1998, we continued to make progress in restoring California's Bay-Delta, the largest estuary on the west coast of North America; the Florida Everglades to restore natural water flows; and the forests of the Pacific Northwest to replenish trout, coho, chinook, and sockeye salmon. While we are making progress, these areas demand continued support to protect their vitality for future generations. Clean Water and Watershed Restoration Initiative: Over the last 25 years, the Clean Water Act has stopped billions of pounds of pollution from flowing into the Nations's rivers, lakes, and streams, and has doubled the number of waterways that are safe for swimming and fishing. Yet despite this significant progress, there is still much to be done to fulfill our national commitment to protect the Nation's waters. Under the Clean Water and Water- shed Restoration Initiative, Interior has taken the lead to ensure healthy aquatic systems in our Nation's water- sheds. Together with the Department of Agriculture, Environmental Protection Agency, and other Federal agencies, we are developing cooperative partnerships with States and local governments as well as the public. il Historic Preservation: The celebration of the turn of the century is a true commemoration of our democracy, our rich history, and our unequaled diversity. It is an opportunity to showcase the preservation of the icons of American history and culture for ourselves and for the world. Recognizing that the material culture of our Nation is the touchstone of our history, Interior is working to preserve this rich fabric of American heritage, ensuring that the citizens of the 21st Century have the same opportunity that we did to observe and enjoy the archaeologic and historic ruins in the Southwest, objects gathered by the Lewis and Clark expedition, and the laboratory of Thomas Edison, among other American treasures. Prudent Outer Continental Shelf Management: The Nation has seen a resurgence of Gulf of Mexico leasing activity with a high level of industry interest, particularly in deep-water regions. There have been record- breaking lease sales over the past few years and a sustained level of exploration and development activity, spurred by dramatic advances in technology and the discovery of extremely prolific reservoirs with wells producing over 20,000 barrels of oil per day. The Department's attention is focused on sustaining these benefits while protecting the marine environment by preventing any conditions or actions that could adversely impact the Gulf environment. This means basing leasing and regulatory decisions on good scientific information and maintaining a vigilant inspection program, both of which are critical to preventing accidents that threaten human life or the environment. Responding to Native American Needs A key principle of the Federal-tribal relationship is protecting and encouraging tribal self-governance. To achieve self-determination, Tribes require a long-term Federal commitment and adequate funds to develop self-governance, a strong economic base, and social and educational institutions that enable them to benefit from America's prosperity and to preserve their cultural heritage. In fulfilling the Nation’s trust responsibilities to Tribes, Interior is committed to meeting these obligations. During 1998 the Bureau of Indian Affairs provided Tribes with over $1.1 billion in resources to foster strong and stable tribal governments, enabling them to exercise their authority as sovereign nations. Interior has trust responsibilities for many tribal and individual Indian assets. Over the last several years, the Department has been working diligently to reform the systems, policies, practices, and procedures by which Tribes and individual Indians receive revenue due them from trust lands. In 1997, the Department began implementing reforms proposed in the Office of Special Trustee’s Comprehensive Strategic Plan related to cleaning up data, eliminating trust asset processing backlogs, and revamping trust management systems. In 1998, the Department continued to implement this plan. These reforms are of critical importance—resolving longstanding trust management issues is receiving the highest level of attention from the Department. As we move forward toward a new century and celebrate the Department's founding 150 years ago, we remain steadfast in protecting our Nation's natural and cultural resources and fulfilling our trust responsibilities to the Tribes. While we have made substantial progress during this Administration, much remains to be done. I am committed to continuing our progress. ee am Bruce Babbitt Secretary of the Interior lll LETTER FROM THE CHIEF FINANCIAL OFFICER I am pleased to present the Department of the Interior's fiscal year 1998 Departmental Report on Accountability prepared under a pilot program authorized by the Government Management Reform Act of 1994. Over the past year, Interior has made significant progress toward my three goals: ensuring accountability to the public in the use of Federal resources, building a diverse Department that is reflective of the strength and creativity of all America's people, and creating a quality workplace that will attract and retain the best and the brightest workforce. Achieving these goals must be our highest priority as we accomplish our mission of stewardship over the Nation's vast public lands and resources, serve the public with care and re- spect, and provide for economic development with balance and integrity. Being Accountable to the Public Planninfgo r Quality Results: Accountability begins with a clear understanding of our mission and a plan to achieve that mission. In 1997, the Department of the Interior published its first strategic plan under the Government Performance and Results Act (GPRA), and in February of 1998 the Department submitted its first annual performance plan to Congress along with the President's budget. That plan includes performance mea- sures for the Department and for individual bureaus within the Department. We have learned over the past year the importance of a clear focus in the plan. Our strategic plan has been streamlined from its original 10 common themes to 5 broad goals that define the Department’s mission: protecting the environment and preserving our Nation's natural and cultural resources; providing recreation for America; managing natural resources for a healthy environment and a strong economy; providing science for a changing world; and meeting our responsibilities for American Indians. We are now measuring our performance in each of these areas. Addressing Year 2000 Computer Issues: Much has been written about the impending disaster that will befall organizations—both public and private—whose computer systems treat a double zero as signifying the year 1900 rather than 2000. Given our reliance on computers, the failure of systems to operate properly can mean anything from minor inconveniences to major problems. The dimensions of this challenge are enormous and we are well on the way to resolving these issues for the Department. I am pleased to state that as of March 31, 1999, we have corrected and tested 100 percent of our mission critical systems. Obtaining and Maintaining Unqualified Audit Opinions: Maintaining integrity in financial management activities demands that we maintain unqualified (clean) audit opinions on the Department's consolidated financial statements as well as achieving unqualified audit opinions on all individual bureau financial statements. Follow- ing the intent of the Chief Financial Officers Act, all bureaus have been preparing annual financial statements since 1994. As of March 31, 1999, five bureaus had received unqualified audit opinions on their financial statements for fiscal year 1998. The Department began preparing a Departmental Accountability Report beginning in 1996. We are proud that for fiscal year 1998, the Department received its second unqualified audit opinion on the Consolidated Financial Statements published in the Department's Accountability Report. Investing in Maintenance: The Department is steward to about one sixth of the land mass of the United States and manages an extensive infrastructure—which includes buildings, dams, vehicles, equipment, and aircraft. 1V This infrastructure must be maintained to ensure safety for those who visit, live, or work in our Nation's parks, refuges, fish hatcheries, and other facilities, as well as for those students who attend Indian schools. Thanks especially to Chairman Ralph Regula, funding was obtained for fiscal year 1999 to address many of Interior's infrastructure needs and we developed for the first time, a five-year construction and maintenance plan in support of the fiscal year 2000 budget for each bureau. Additionally, a Deferred Maintenance Working Group developed strategy and guidelines for tracking deferred maintenance and for improving the management of maintenance and construction funds; this plan is now being implemented. Streamlining Administrative Support: Streamlining administrative support is critical for ensuring that program managers are able to focus their efforts on mission goals. Steps are being taken to consolidate three Service Centers into one consolidated operation, the National Business Center. This operation should provide support to the Department, its bureaus and other customers in the most efficient manner possible. The Department is also moving aggressively to consolidate its travel, purchase, and fleet charge card support under a new relationship with NationsBank. Building a Diverse Department During the past year Interior developed a strategic plan to improve our workforce diversity. The vision of the plan is to establish a Departmental workforce that is reflective of the Nation at all levels and in all occupations; a workplace where the quality of work life is valued; and there is an environment open and accepting of individual differences and where all employees are encouraged to maximize their potential and make a commitment to provide quality service to customers. Inherent in this five-year plan is the understanding that managing for diversity entails a comprehensive process for developing a workplace environment that is productive for all employees. Building a truly diverse Department is essential if we are to meet the demands of our mission into the next century. We will be measuring progress over the years to come. Creating a Quality Workplace The quality of the workplace is critical if employees are to perform their tasks and functions effectively and efficiently. During 1998 we created a quality of life task force and established a series of projects to improve the quality of the workplace in Washington D.C. as a leadership example for the Department. We upgraded our family care center for employees to bring children or elders to work in an enjoyable environment; the Main Interior Building health room was reopened to provide employees with easy access to health care; the rooftop terrace was opened so that employees can enjoy fresh air and the spectacular view of the city during warmer weather; the gym was renovated in cooperation with the Interior Department Recreation Association; and we modernized the employee snack bar and cafeteria. In addition to these improvements, I have asked all bureau and office heads to develop quality of life plans for each office around the country. All employees, regardless of their duty station, are entitled to a friendly, safe, and satisfying work environment. March 3, 1999, marks the 150th Anniversary of the Department. Throughout the year we will be holding events to recognize our outstanding employees, to educate the public about the services we provide, and to celebrate our service to the Nation. Although I am very proud of the progress and success presented in this report, there is much to be accomplished. The Department will continue to provide sound management of the resources under our stewardship, respond positively to the needs and concerns of the public, and demand quality results in meeting the challenges before us. n Berry Chief Financial Officer dilasihi bued itesiacanaainre- atau Py eeee S e eew. e fbih s hs 2 eh ee eo ee ee Oe ee ae o.4 hal HEtectS ob S