EXHIBIT 4.-DEPARTMENT OF AGRICULTURE FOREST SERVICE Summary statement of receipts and expenditures for the fiscal year ended June 30, 1957 GENERAL NOTE.-This statement was prepared by the Forest Service. General Accounting Office comments appear on p. 22. EXHIBIT 5.-DEPARTMENT OF AGRICULTURE FOREST SERVICE-NATIONAL FOREST PROGRAM Statement of receipts and expenditures for the fiscal year ended June 30, 1957 GENERAL NOTE.-This statement was prepared by the Forest Service. General Accounting Office comments appear on p. 22. GAO COMMENTS ON FOREST SERVICE STATEMENTS OF RECEIPTS AND EXPENDITURES The statements of receipts and expenditures for the fiscal year ended June 30, 1957 (exhibits 4 and 5), were prepared by the Forest Service. The Service prepares annually financial statements providing information on receipts and expenditures. Receipts are stated on a cash basis and expenditures on an obligation basis. Receipts are classified in accordance with the programs from which they were produced, such as timber sales and grazing, and by the geographical area from which they arose. Expenditures on an obligational basis are summarized by geographical area and are grouped by (1) appropriation and object classification, (2) operating function, (3) operating and investment expenditures, (4) cooperative work, and (5) work for others. A portion of the receipts, amounting to about $30 million, is subject to distribution to States, Territories, and counties as directed by the Congress. The estimated cost of permanent access roads, constructed by timber purchasers and financed from approved road allowances granted by the Forest Service as reductions in the value of the timber purchased is, in effect, noncash income which is not shown on the statement. This estimated cost is capitalized as roads, trails, and bridges on the statement of financial condition. The contra credit is in invested and donated capital account, and estimated depreciation on these roads is included as part of the depreciation shown on the statement of receipts and expenditures. We believe that preferred treatment of income and expenses would be to include the estimated cost of permanent roads as income, as well as to include subsequent road depreciation as an expense. 22 EXHIBIT 6.-DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT Statement of revenue and expenses for the period July 1, 1956, to June 30, 1957 1 Payment to states and counties (expenditure basis).. Total expenses. 17, 464, 230 38, 069, 244 55, 533, 474 56, 525, 883 1 On an accrual basis payments to States would be $38,700,056. The excess of revenue over expense on an accrual basis would be $55,895,072. GENERAL NOTE.--This statement and note were prepared by the Bureau of Land Management. General Accounting Office comments appear below. GAO COMMENTS ON BUREAU OF LAND MANAGEMENT STATEMENT OF REVENUE AND EXPENSES The statement of revenue and expenses for the period July 1, 1956, to June 30, 1957 (exhibit 6), was prepared by the Bureau of Land Management. This statement is prepared annually by the Bureau. Revenues shown on the statement are stated on a cash basis and operating costs on a modified accrual basis. The Bureau accrues operating costs annually at June 30. Basically, the receipts are recorded in the books of account in accordance with receipt fund symbol and, for purposes of the statement, certain similar types of receipts are consolidated. The operating costs do not include costs incurred by the Geological Survey in the supervision of productive oil and gas and mining leases although receipts from these activities are shown in the statement under the captions "Mineral leasing" and "Oil and gas, Outer Continental Shelf." For fiscal year 1957, Geological Survey requested about $1.5 million for these activities, which are carried out for BLM and other Government agencies. Also, the statement does not include depreciation because the Bureau does not depreciate assets. Also depletion of assets is not considered. The payment to States and counties of about $38 million is not part of BLM's operating costs and represents required distribution of receipts as provided by law. EXHIBIT 7.-DEPARTMENT OF THE INTERIOR NATIONAL PARK SERVICE Statement of operating expenses and related revenues and receipts for fiscal year 1957 GENERAL NOTE.-This statement was prepared by the National Park Service. General Accounting Office comments appear below. GAO COMMENTS ON NATIONAL PARK SERVICE STATEMENT OF OPERATING EXPENSES AND RELATED REVENUES AND RECEIPTS The statement of operating expenses and related revenues and receipts for fiscal year 1957 (exhibit 7) was prepared by National Park Service for the convenience of this report from data recorded in the books of account. Control accounts have been established for each of the categories listed on the statement. Operating program expenses are shown on the statement by appropriation activities. Cost accounts have been established to show components of cost, such as personal services, other direct expenses, facilitating services, depreciation of equipment, and stores. Expenses chargeable to working funds, reimbursable activities, special funds, and trust funds represent recorded expenses applicable to the respective funds and activities. Reimbursable activities expenses consist of such items as quarters and mess operations, utility operations for concessioners, and other expenses. Most of the general fund revenues are received from entrance fees to parks and other areas administered by NPS. Collections from reimbursable work, special funds, and trust funds, represent the cash collected in fiscal year 1957. The general fund revenues are maintained on a modified accrual basis. (See p. 7.) LETTER FROM SENATOR MURRAY TO MR. MARION CLAWSON, DIRECTOR, LAND USE AND MANAGEMENT PROGRAM, RESOURCES FOR THE FUTURE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, UNITED STATES SENATE, May 22, 1958. Mr. MARION CLAWSON, Washington, D. C. DEAR MR. CLAWSON: On November 15, 1957, partially as a result of reading your book, The Federal Lands, I asked the Comptroller General to undertake a study of financial reporting for natural resource programs. A copy of that letter was furnished to you. I now transmit for your information a copy of his reply. Would it be imposing too much on your time for you to present your views, as a land management expert, on some of the factors you consider desirable in reports designed to better show the importance of proper investment and operating funds for Federal natural resource agencies? If you desire to undertake it, will you also set forth a tentative financial statement and examples of the economic information that should accompany such statements? I shall appreciate receipt of the comments you are in a position to make. Sincerely yours, JAMES E. MURRAY, Chairman. RESPONSE OF MR. MARION CLAWSON TO SENATOR Hon. JAMES E. MURRAY, MURRAY RESOURCES FOR THE FUTURE, INC., Chairman, Committee on Interior and Insular Affairs, United States Senate, Washington, D. C. DEAR SENATOR MURRAY: I am happy to respond to your letter of May 22, asking me to comment on some of the factors that should be considered in reports designed to show the importance of proper investment and operating funds for the Federal natural resource agencies. I am delighted to see the interest of the Committee on Interior and Insular Affairs, of the General Accounting Office, and of the land managing agencies in this matter. It is evident that substantial progress toward achieving better reports has already been made, and I am sure that we may look forward to further progress. There are obvious deficiencies in the present accounts and reports, as the report |