United States General Accounting Office

GAO Report to the Ranking Minority Member,

Committee on Resources, House of

Representatives

November 1998 FOREST SERVICE

Distribution of Timber

Sales Receipts, Fiscal

Years 1995 Through

1997

GAO/RCED-99-24

GAO United States

General Accounting Office

Washington, D.C. 20548

Resources, Community, and

Economic Development Division

B-281250 

November 12, 1998

The Honorable George Miller

Ranking Minority Member

Committee on Resources

House of Representatives

Dear Mr. Miller:

The Forest Service distributes receipts from national forest timber sales to

various funds or accounts that have been established for specific

purposes. Any receipts not otherwise distributed are deposited into the

General Fund of the U.S. Treasury. In September 1995, we reported on the

amount of timber sales receipts, the amounts distributed to specific funds

or accounts, and the amounts deposited into the General Fund of the U.S.

Treasury for fiscal years 1992 through 1994.1

 You asked us to update the

information on the amount of the Forest Service’s timber sales receipts for

fiscal years 1995 through 1997, the amounts distributed to specific Forest

Service funds or accounts, the outlays for preparing and administering

timber sales, and the amounts of timber sales receipts transferred to the

General Fund of the U.S. Treasury. You also asked us to describe any

changes in the receipt distribution process that have occurred since our

last report.

The data in this report are timber sales accounting data on a cash basis

that recognizes receipts when collected and outlays when paid. Because of

this, the data presented in this report are not a measure of profitability,

nor is it appropriate to compare the data against budget authority

amounts. Cash accounting data do not reflect all costs associated with

operating a particular forest and, thus, cannot be used as a measure of

profitability on an individual forest basis. Profitability would be measured

on an accrual basis that matches all annual sales-related revenues with all

annual sales-related expenses. We chose to use cash accounting data

because they reflect the day-to-day operations of a forest.

Results in Brief During fiscal years 1995 through 1997, the Forest Service collected about

$1.85 billion in timber sales receipts and distributed about $1.7 billion, or

about 92 percent, to Forest Service funds or accounts established for

specific purposes such as reforestation, salvage sale preparation, and

1

Forest Service: Distribution of Timber Sales Receipts, Fiscal Years 1992-94 (GAO/RCED-95-237FS,

Sept. 8, 1995).

Page 1 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

credits for roads that timber purchasers build. During this same period,

the funds not otherwise distributed—about $125 million—plus about

$29 million from the Roads and Trails Fund were deposited into the

General Fund of the U.S. Treasury. To operate the timber program and to

prepare and administer timber sales, the Forest Service expended about

$1.2 billion in appropriations and other moneys during the period fiscal

years 1995 through 1997.

Since our September 1995 report, the Congress, in April 1996, established

an additional fund to be used to prepare future timber sales. Beginning in

fiscal year 1996, the Congress omitted appropriation language requiring

that the moneys in the Roads and Trail Fund be deposited in the General

Fund of the U.S. Treasury. Also, since fiscal year 1996, the Forest Service

has been using a special appropriation provided by the Congress for a

portion of the required payments to the states affected by a substantial

drop in the size of timber harvests—and, therefore, a substantial drop in

payments to these states—as a result of listing the northern spotted owl as

a threatened species. In addition, beginning in fiscal year 1999, the

Congress eliminated the credit given purchasers for building roads.

Background The Forest Service, within the U.S. Department of Agriculture, manages

the 192 million acre national forest system with its 155 national forests.

The national forests generate receipts from a variety of resources,

including recreation, grazing, and minerals; however, timber sales have

traditionally generated more than 90 percent of the total receipts. As

shown by figure 1, the harvested volume of timber has declined from 7.3

billion board feet in fiscal year 1992 to 3.3 billion board feet in fiscal year

1997. Accordingly, total timber sales receipts have also declined from $1.2

billion in fiscal year 1992 to $558 million in fiscal year 1997.

Page 2 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Figure 1: Timber Harvested and Total Timber Sales Receipts, Fiscal Years 1992 Through 1997

Timber harvested

Timber receipts

1992 1993 1994 1995 1996 1997

0

1

2

3

4

5

6

7

8

0

250

500

750

1,000

1,250

Harvested volumes in billion board feet Receipts in millions of dollars

Preparing timber sales usually takes 3 to 8 years and consists of six steps

or “gates.” The early steps involve identifying the timber to be offered for

sale and conducting necessary environmental assessments of the proposed

sale area. The later steps involve actually advertising the sale and selling

the timber. Because of the time involved, some timber sales on a particular

forest could be in the beginning steps while others could be at or near the

end steps. This multiyear, multistep process of having timber sales in

various stages of development up until the time a sale is offered is referred

to as the timber pipeline. At the forest level, appropriated funds are used

Page 3 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

to pay the costs associated with preparing and administering these timber

sales.

The process for distributing timber sales receipts starts when a timber

contract is awarded and the timber purchaser makes certain required

contractual deposits. These deposits can include down payments on the

timber as well as specific amounts for purposes such as ensuring that

logging debris is properly treated after the timber harvest is completed.

During the harvest, the purchaser makes additional payments in

accordance with schedules established in the contract. In addition, timber

purchasers may reduce the amount they pay in cash for timber by agreeing

to build roads that provide access to the timber sale area. When

purchasers build the roads, the Forest Service provides credits that may be

applied against the purchase price of the timber.

The actual distribution of timber sales receipts is a two-step process.

Initially, timber sales receipts are distributed into six funds or accounts.

The second step involves distributions from one of the six funds—the

National Forest Fund—into several additional funds or accounts. Any

funds remaining after the second stage distribution are deposited in the

General Fund of the U.S. Treasury.

Timber Sales

Receipts,

Distributions, Outlays,

and Deposits to the

General Fund of the

U.S. Treasury

During fiscal years 1995 through 1997, timber purchasers harvested about

11 billion board feet of timber from the national forests, for which the

Forest Service collected about $1.85 billion. The Forest Service distributed

about $1.7 billion to various Forest Service funds and accounts established

for specific purposes and deposited about $124.5 million of timber sales

receipts into the General Fund of the U.S. Treasury. While these funds or

accounts are provided for by law, two have specific percentage

distributions mandated by law—the Roads and Trails Fund and the

payments to states. Figure 2 shows this distribution process, and appendix

I further explains the receipt distribution process and the various funds

and accounts.

Page 4 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Figure 2: Distribution of Timber Sales Receipts, Fiscal Years 1995 Through 1997

Timber Sales Pipeline

Restoration Fund

$1,850.9 million $671.7 million

$452.7 million

$110.2 million

$126.0 million

$3.4 million

$16.1 million

$10.8 million

$124.5 million

$486.9 million

$67.2 million

$453.2 million

Charges collected for

brush removal, erosion

control, etc. (associated

charges)

Second Step: Distribution

from National Forest Fund

First Step: Initial distribution of timber sales receipts into six funds or accounts

These funds were transferred

to the General Fund of the U.S. Treasury

Note: Figures sometimes do not add because of rounding.

Page 5 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Timber Sales Receipts and

Distributions

As shown in figure 2, the distribution of timber sales receipts is essentially

a two-step process. The first step distributes receipts into six funds or

accounts including the Knutson-Vandenberg Fund, the Salvage Sale Fund,

associated charges account, purchaser road credit account, and interest

and penalties. Any timber sales receipts not distributed to these funds or

accounts passes into the National Forest Fund.

The second step involves further distributions from the National Forest

Fund, which serves as a holding account for timber-related receipts at the

national level. At the end of the fiscal year, any amount not distributed

from the National Forest Fund for specific purposes is transferred to the

General Fund of the U.S. Treasury. The largest distribution from this fund

involves the payments to states. By law, states are entitled to 25 percent of

the receipts from timber sales located within their boundaries.2

 In

addition, certain counties in California, Oregon, and Washington are

entitled to guaranteed payments as a result of listing the northern spotted

owl as a threatened species.

Table 1 shows, for fiscal years 1995 through 1997, total timber sales

receipts, the amounts distributed for specific Forest Service purposes, the

amounts deposited in the General Fund of the U.S. Treasury, and the

amounts distributed to the states.

2

Payments to the states are authorized by the Twenty-Five Percent Fund Act of 1908 (16 U.S.C. 500).

The annual calculation of the 25-percent payment to the states is based on the amounts in the National

Forest Fund, purchaser road credit account, the Salvage Sale Fund, and the Knutson-Vandenberg

Fund. Interest and penalties and associated charges are not included in this calculation.

Page 6 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Table 1: Timber Sales Receipts and

Distributions, Fiscal Years 1995

Through 1997 Timber sales receipts

Dollars in millions

Fiscal year Total

Amount

distributed for

specific Forest

Service

purposes

Amount

distributed to

statesa

Amount

deposited in

the General

Fund of the

U.S. Treasuryb

1995 $682.0 $392.9 $257.4 $31.7

1996 610.9 448.4 106.1 56.4

1997 558.0 399.1 89.7 69.2

Total $1,850.9 $1,240.4 $453.2 $157.3

aThe amounts distributed to states reflect only those amounts attributable to timber receipts from

national forests. States received more moneys when forest receipts from all sources are

considered. In addition, in fiscal year 1995, about $140 million for the spotted owl payments was

made out of the National Forest Fund rather than using the special appropriation for these

payments, as provided for in P.L. 103-66, as amended, which was used in fiscal years 1996 and

1997.

bFor fiscal year 1995, deposits to the General Fund of the U.S. Treasury included about

$29.4 million from the Roads and Trails Fund. In fiscal years 1996 and 1997, the Forest Service

was allowed to retain the amounts collected for the Roads and Trails Fund.

Source: Prepared by GAO from the Forest Service’s data.

Timber Sales Outlays Annually, the Forest Service receives and expends appropriations to

prepare and administer timber sales. In addition, moneys from the Salvage

Sale Fund are used to prepare and administer salvage sales. However, no

requirement exists that timber sales receipts cover the outlays for

preparing and administering timber sales.

These outlays would include, among other things, the cost of

environmental and other analyses, the cost to prepare and offer the timber

sale, and the cost to administer the purchaser’s operations as timber is

harvested. During fiscal years 1995 through 1997, the Forest Service’s

timber sale preparation and administration outlays were about $1.2 billion,

as shown in table 2.

Page 7 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Table 2: Timber Sales Outlays, Fiscal

Years 1995 Through 1997

Fiscal year

Dollars in millions

Outlay 1995 1996 1997 Total

Sale preparation $121.3 $153.5 $135.8 $410.6

General

administration

attributable to

sales 100.1 125.5 125.3 350.9

Analysis/

documentation 45.7 50.5 65.8 162.0

Harvest

administration 51.3 53.3 50.4 155.0

Silvicultural

exams 22.5 19.8 21.1 63.4

Transportation

planning 16.0 13.3 15.1 44.4

Appeals/

litigation 2.9 1.6 4.1 8.6

Appeals/

litigationindirect 4.6 3.1 3.5 11.2

Total $364.4 $420.6 $421.1 $1,206.1

Source: Prepared by GAO from the Forest Service’s data.

Appendix II contains information on total timber sales receipts, the

amounts distributed to the specific funds and accounts, and preparation

and administration outlays, at the regional level. Appendix III contains

similar information at the forest level. In addition, we have included, for

informational purposes, the amounts of attributable payments to states,

even though these payments are made at the national, not the forest level.

Deposits Into the General

Fund of the U.S. Treasury

For fiscal years 1995 through 1997, the Forest Service deposited about

$124.5 million from timber sales receipts into the General Fund of the U.S.

Treasury. In addition, the Forest Service deposited $3.4 million from

interest and penalties generated on timber sales. This category includes

such items as interest on late payments and fines assessed for cutting the

wrong trees. According to Forest Service officials, they classify interest

and penalties as miscellaneous receipts. These receipts are not distributed

to the National Forest Fund but instead are directly deposited to the

General Fund of the U.S. Treasury.

Page 8 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Finally, for fiscal year 1995, the Forest Service deposited an additional

$29.4 million into the General Fund of the U.S. Treasury from the Roads

and Trails Fund. Thus, in total, for fiscal years 1995 through 1997, the

Forest Service deposited a total of $157.3 million into the General Fund of

the U.S. Treasury.

Recent Changes in the

Receipt Distribution

Process

A number of changes have occurred in the receipt distribution process

since our September 1995 report. During the period, the Congress

authorized a new fund for deposits from timber sales receipts, omitted the

appropriation language requiring Roads and Trails Fund’s moneys to be

deposited into the General Fund of the U.S. Treasury, and eliminated the

use of the purchaser road credits. Also, since fiscal year 1996, the Forest

Service has been using a special appropriation provided by the Congress

for a portion of the required payments to the states affected by a

substantial drop in the size of timber harvests—and, therefore, a

substantial drop in payments to these states—as a result of listing the

northern spotted owl as a threatened species. These changes will result in

more timber sales receipts being distributed to specific funds and less

being available for deposit to the General Fund of the U.S. Treasury.

Timber Sales Pipeline

Restoration Fund

The Congress established the Timber Sales Pipeline Restoration Fund in

April 1996. The 1996 appropriations act authorized the Forest Service and

the Department of the Interior’s Bureau of Land Management to create a

Timber Sales Pipeline Restoration Fund to be used for preparing timber

sales to refill the timber pipeline.3

 Revenues collected from selected

timber sales in Oregon and Washington, less the funds necessary to make

payments to states or local governments that are in excess of $37.5 million,

are to be deposited in the Timber Sales Pipeline Restoration Fund.4

 Of the

revenues deposited into the fund, 75 percent are to be used to prepare

future timber sales, other than salvage sales, and 25 percent are to be used

on backlogged recreation projects. For fiscal years 1995 through 1997, the

Forest Service deposited about $11 million in the fund and expects to

allocate about $4.5 million to the regions in fiscal year 1999 to prepare

future timber sales.

3

Section 327 of the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (P.L. 104-134).

4

Section 2001(k) of the Fiscal Year 1995 Supplemental Appropriations for Disaster Assistance and

Rescissions Act (P.L. 104-19) released for sale the timber sales contracts in Washington and Oregon

that were offered under section 318 of the Fiscal Year 1990 Interior and Related Agencies

Appropriation Act but were not allowed to be completed because of the listing of the northern spotted

owl as a threatened species.

Page 9 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

Roads and Trails Fund Prior to fiscal year 1996, language in the Forest Service’s annual

appropriations acts required that the amount deposited into the Roads and

Trails Fund be transferred to the General Fund of the U.S. Treasury to

offset annual appropriations for road and trail construction and

maintenance. Beginning in fiscal year 1996, the Congress omitted this

appropriation language, and the Forest Service has retained about

$50 million in the fund, of which about $38 million related to timber

receipts. Guidance to regional foresters provides that the Roads and Trails

Fund moneys are to be used, beginning in fiscal year 1998, to correct road

and trail problems that are adversely affecting forest, rangeland, and

aquatic ecosystems on forest lands. According to Forest Service officials,

these funds are being used in addition to regular appropriations for road

and trail maintenance and reconstruction.

Purchaser Road Credits Beginning in fiscal year 1999, the Congress eliminated purchaser road

credits for future timber sales. Timber purchasers who currently have

unused road credits will be allowed to use them. In future timber sales,

offered without purchaser road credits, the Forest Service must estimate

the cost to construct the roads and include that amount in its calculation

of the payments to the states.

Spotted Owl Guarantee

Appropriation

For specific counties in California, Oregon, and Washington, the listing of

the northern spotted owl as a threatened species accounted for a

substantial drop in the size of timber harvests—and, therefore, a

substantial drop in the receipts that the counties would receive under the

25-percent payments to states. To reduce the fiscal impact of the listing,

the Congress included a “safety net”, or spotted owl guarantee in the

Forest Service’s annual appropriations acts for fiscal years 1991 through

1993 to ensure that state payments remained at a comparable level to

those payments made before the listing. A special appropriation was

established by the Omnibus Budget Reconciliation Act of 1993 (P.L.

103-66), as amended, to make these payments beginning in fiscal year

1994.

In August 1997, we reported that the Forest Service inappropriately made

the spotted owl guarantee payments for fiscal years 1994 and 1995 from

the National Forest Fund and recommended that the Forest Service make

the necessary accounting adjustments to reflect the use of the special

spotted owl appropriation in lieu of the National Forest Fund.5

 Since fiscal

5

Forest Service: Unauthorized Use of the National Forest Fund (GAO/RCED-97-216, Aug. 29, 1997).

Page 10 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

year 1996, the Forest Service has been using the special spotted owl

appropriation for a portion of the required payments to the states.

The Forest Service is in the process of working on appropriate actions

with Department of Treasury and Office of Management and Budget

officials that will implement the recommendations in our report. Once the

Forest Service, Department of Treasury, and Office of Management and

Budget officials agree on the accounting adjustments needed, the increase

in deposits to the General Fund of the U.S. Treasury for fiscal years 1994

and 1995 should total about $285 million.

Agency Comments We provided the Forest Service with a draft of this report for review and

comment. The Forest Service commented that the report accurately and

fairly presented information on the distribution of timber sales receipts.

The Forest Service also provided technical clarifications, which we

incorporated into the report.

We conducted our review by analyzing the Forest Service’s timber sales

accounting data for fiscal years 1995 through 1997. Appendix IV explains

our methodology in detail. We conducted our work from June through

October 1998 in accordance with generally accepted government auditing

standards.

As arranged with your office, unless you publicly announce its contents

earlier, we plan no further distribution of this report until 10 days after the

date of this letter. We will then send copies to the Secretary of Agriculture,

the Chief of the Forest Service, appropriate congressional committees, and

other interested parties. We will also make copies available to others on

request.

Page 11 GAO/RCED-99-24 Distribution of Timber Sales Receipts
B-281250 

If you or your staff have any questions about this report, please call me at

(206) 287-4810. Major contributors to this report are listed in appendix V.

Sincerely yours,

James K. Meissner

Associate Director, Energy,

 Resources, and Science Issues

Page 12 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Page 13 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Contents

Letter 1

Appendix I 

Distribution of Timber

Sales Receipts

16

Receipt Distribution Process: First Step 16

Receipt Distribution Process: Second Step 19

Appendix II 

Timber Sales Receipts

and Outlays by Region

Fiscal Years 1995

Through 1997

24

Appendix III 

Timber Sales Receipts

and Outlays by Forest

Fiscal Years 1995

Through 1997

27

Appendix IV 

Objectives, Scope,

and Methodology

43

Methodology 43

Appendix V 

Major Contributors to

This Report

48

Tables Table 1: Timber Sales Receipts and Distributions, Fiscal Years

1995 Through 1997

7

Table 2: Timber Sales Outlays, Fiscal Years 1995 Through 1997 8

Table I.1: First-Step Distribution of Timber Sales Receipts, Fiscal

Years 1992 Through 1997

19

 Table I.2: Second-Step Distribution of Receipts From The

National Forest Fund, Fiscal Years 1992 Through 1997

23

Page 14 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Contents

Table II.1: Timber Sales Receipts and Outlays by Region, Fiscal

Years 1995 Through 1997

24

Table III.1: Timber Sales Receipts and Outlays by National Forest,

Fiscal Years 1995 Through 1997

28

Figures Figure 1: Timber Harvested and Total Timber Sales Receipts,

Fiscal Years 1992 Through 1997

3

Figure 2: Distribution of Timber Sales Receipts, Fiscal Years 1995

Through 1997

5

Page 15 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

This appendix explains the special funds or accounts into which timber

sales receipts are deposited before the remaining receipts are deposited

into the General Fund of the U.S. Treasury. The two-step process involves

distributing the receipts into a number of funds and accounts that the

Forest Service uses to finance various activities. This appendix provides

the data we developed for this report as well as the similar data we

previously reported for fiscal years 1992 through 1994.

Receipt Distribution

Process: First Step

In the first step, timber sales receipts are deposited into six funds or

accounts. The following is a detailed description of each of the six

categories in which timber sales receipts are initially deposited.

Knutson-Vandenberg Fund The Knutson-Vandenberg Act of 1930 (16 U.S.C. 576b), as amended,

authorizes the use of timber sales receipts to reforest harvested areas and

to improve and protect the land’s future productivity. The Forest Service

maintains the Knutson-Vandenberg Trust Fund for this purpose. For each

timber sale, the Forest Service prepares a sale area improvement plan that

determines how much money should be set aside to meet the act’s

requirements and how this money should be spent. The percentage of the

timber sales receipts to be set aside varies with each sale according to the

kinds of activities that must be performed. The Knutson-Vandenberg Trust

Fund received about 24 percent of timber receipts in fiscal years 1995

through 1997 as well as for the period fiscal years 1992 through 1994.

Salvage Sale Fund “Salvage” timber refers to timber that is being made available for harvest

because it is disease- or insect-infested, dead, damaged or downed by

wind, or affected by fire or imminently susceptible to fire or insect attack.

The National Forest Management Act of 1976 (16 U.S.C. 472a(h))

established the Salvage Sale Fund. Individual salvage sale timber contracts

designate the amount of receipts to be collected and transferred to the

Salvage Sale Fund. The Forest Service uses moneys in the fund to prepare

and administer future salvage sales. The fund may also be used to pay for

the design, engineering, and supervision of construction of roads

associated with such sales. The Salvage Sale Fund received about

36 percent of total timber sales receipts in fiscal years 1995 through 1997

compared with about 18 percent for the period fiscal years 1992 through

1994.

Page 16 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

The amount for fiscal years 1995 through 1997 is, in part, attributable to

the emergency salvage timber sale program authorized by the Fiscal Year

1995 Supplemental Appropriations for Disaster Assistance and Rescissions

Act (P.L. 104-19). This program contained a number of provisions that

were intended to increase the volume of salvage timber that the Forest

Service offered for sale during the period July 27, 1995, through

December 31, 1996.

Purchaser Road Credits This category of receipts differs from the others in that it represents a

noncash payment for timber. In this case, the payment is in the form of

roads and is referred to as purchaser road credits. With many timber sales,

timber purchasers reduce the amount they pay in cash for timber by

agreeing to build roads that provide access to the timber sales area. The

use of purchaser road credits was established in the National Forest Roads

and Trails Act of 1964 (16 U.S.C. 532 et seq.). Timber contracts stipulate

which roads are to be built and their estimated cost. When timber

purchasers build these roads, they receive credits equal to the estimated

cost of the road stipulated in the contract. Purchasers may then use these

credits, instead of cash, to pay for timber. These road credits, in turn,

reduce the amount of cash entering the distribution system. The value of

the road credits, however, is considered a receipt in the calculation of the

payments to states. For both periods—fiscal years 1995 through 1997 and

fiscal years 1992 through 1994—this category represented about 7 percent

of total timber sales receipts.

Beginning in fiscal year 1999, the Congress eliminated purchaser road

credits on future timber sales. However, timber purchasers with unused

road credits will be allowed to use them. In future timber sales, offered

without purchaser road credits, the Forest Service must estimate the cost

to construct the roads and include that amount in its calculation of the

payments to the states.

Associated Charges The Forest Service assesses various charges for certain other activities

related to timber sales, such as piling and burning logging debris

remaining after a timber harvest, maintaining and repairing existing Forest

Service roads used during the timber harvest, and controlling erosion in

newly harvested areas. Each timber sales contract specifies the amounts

to be collected for these purposes. The Forest Service’s authority to assess

these charges stems from a number of laws, beginning with the

Cooperative Funds Act of 1914 (laws include 16 U.S.C. 471h, 498, 572, 535,

Page 17 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

537, 693d, and 1643). Associated charges accounted for about 6 percent of

timber sales receipts in fiscal years 1995 through 1997 and about

4.5 percent in fiscal years 1992 through 1994.

National Forest Fund Any timber sales receipts not designated for distribution into one of the

previously described categories passes into the National Forest Fund.

Among other things, this fund serves as a holding account for distributing

timber-related receipts to several other accounts or funds for specific

purposes.1

 At the end of the fiscal year, any amount not distributed is

deposited into the General Fund of the U.S. Treasury. This fund accounted

for about 36 percent of the timber receipts for fiscal years 1995 through

1997 compared with about 45 percent for fiscal years 1992 through 1994.

Interest and Penalties This category includes such items as interest on late payments and fines

assessed for cutting the wrong trees. According to Forest Service officials,

they classify interest and penalties as miscellaneous receipts. These

receipts are not distributed to the National Forest Fund but instead are

directly deposited into the General Fund of the U.S. Treasury. This

category of receipts is quite small, accounting for just 0.2 percent of timber

sales receipts for fiscal years 1995 through 1997 and fiscal years 1992

through 1994.

Summary

Distributions—Step One

The six categories into which timber sales receipts are initially distributed,

together with the amounts for fiscal years 1992 through 1997, are shown in

table I.1.

1

Receipts from all resources on Forest Service lands are deposited in the National Forest Fund. We are

reporting on only that portion of the National Forest Fund attributable to timber sales receipts.

Page 18 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

Table I.1: First-Step Distribution of

Timber Sales Receipts, Fiscal Years

1992 Through 1997 Fiscal year

Dollars in millions

Fund or account 1992 1993 1994 1995 1996 1997

KnutsonVandenberg Fund $278.1 $301.8 $230.1 $183.4 $156.7 $123.8

Salvage Sale

Fund 218.6 208.4 183.9 139.0 198.9 155.6

Purchaser road

credits 100.2 71.0 73.2 50.1 42.2 36.9

Associated

charges 63.9 47.8 37.2 31.9 33.7 46.7

Interest and

penalties

assessed 2.6 2.1 0.9 0.9 1.7 0.9

National Forest

Fund 568.9 456.6 451.1 307.3 190.8 190.7

Total $1,232.3 $1,087.7 $976.4 $712.6 $624.0 $554.6

Note: The amounts are presented in constant 1997 dollars and differ from the amounts shown in

our prior report for fiscal years 1992 through 1994.

Source: Prepared by GAO from the Forest Service’s data.

Receipt Distribution

Process: Second Step

The second step applies to only one of the funds initially receiving timber

sales receipts—the National Forest Fund. In step two, receipts in the

National Forest Fund are further distributed among several additional

funds. Timber sales receipts deposited in the National Forest Fund are

distributed as payments to the states, to the Roads and Trails Fund, to the

Timber Sales Pipeline Restoration Fund, and to Purchaser-Elect Roads;

the remainder is deposited into the General Fund of the U.S. Treasury at

the end of the fiscal year. Following is a more detailed description of each

fund or account to which distributions are made from the National Forest

Fund.

Payments to States The Forest Service uses receipts placed in the National Forest Fund to

make the required payments to the states. The Twenty-Five Percent Fund

Act of 1908 (16 U.S.C. 500) requires that 25 percent of a national forest’s

gross receipts be transferred to the states where the forest is located, to be

used to benefit roads and schools in the counties where the receipt was

earned. By law, gross receipts are defined as the total of the annual

distribution to the Knutson-Vandenberg Fund, the Salvage Sale Fund, the

Page 19 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

National Forest Fund, and purchaser road credits. Over 60 percent of the

state payments are made from the National Forest Fund. The remainder of

the payments to the states is made from a special appropriation

established by the Congress by the Omnibus Budget and Reconciliation

Act of 1993 (P.L. 103-66, as amended) to compensate specific counties in

California, Oregon, and Washington for the loss of revenues as a result of

listing the northern spotted owl as a threatened species. For the purposes

of calculating the payments to the states, the Forest Service does not

include associated charges and interest and penalties. Payments to states

accounted for about 24 percent of timber sales receipts in fiscal years 1995

through 1997, while for fiscal years 1992 through 1994 they accounted for

about 30 percent of timber sales receipts.

For specific counties in California, Oregon, and Washington, the listing of

the northern spotted owl as a threatened species accounted for a

substantial drop in the size of timber harvests—and, therefore, a

substantial drop in the receipts that the counties would receive under the

25-percent payments to states. To reduce the fiscal impact of the listing,

the Congress included a “safety net”, or spotted owl guarantee in the

Forest Service’s annual appropriations acts for fiscal years 1991 through

1993 to ensure that state payments remained at a comparable level to

those payments made before the listing. A special appropriation was

established by the Omnibus Budget Reconciliation Act of 1993 (P.L.

103-66), as amended, to make these payments beginning in fiscal year 1994

and included a formula designed to lessen the impacts on affected

counties’ timber receipts by guaranteeing a payment based on an average

of the receipts from prior years. The payment formula varies by year and

began decreasing by 3 percent a year after fiscal year 1994 until it expires

in 2003.

Roads and Trails Fund The Roads and Trails Fund annually receives 10 percent of all receipts

deposited in the National Forest Fund. Authorized by the Expenditures

From Receipts Act of 1913, as amended, (16 U.S.C. 501), the fund’s

purpose is to support the construction and maintenance of roads and trails

within the national forests in the states where the receipts were collected.

Prior to fiscal year 1996, language in the Forest Service’s annual

appropriation acts required that the amount deposited in the Roads and

Trails Fund be transferred to the General Fund of the U.S. Treasury to

offset annual appropriations for road and trail construction and

maintenance. Deposits to the Roads and Trails Fund were about 4 percent

of timber sales receipts for fiscal years 1995 through 1997, while they

Page 20 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

accounted for about 5 percent of timber sales receipts during fiscal years

1992 through 1994.

Beginning in fiscal year 1996, the Congress omitted the appropriation

language requiring deposits in the Roads and Trails Fund to be transferred

to the General Fund of the U.S. Treasury. In fiscal years 1996 and 1997, the

Forest Service deposited about $50 million into this fund, of which about

$38 million related to timber receipts. Guidance provided to regional

foresters indicates that the Roads and Trails Fund moneys are to be used,

beginning in fiscal year 1998, to correct road and trail problems that are

adversely affecting forest, rangeland, and aquatic ecosystems on forest

lands. According to Forest Service officials, these funds are being used in

addition to regular appropriations for road and trail maintenance and

reconstruction.

Timber Sales Pipeline

Restoration Fund

The Congress established the Timber Sales Pipeline Restoration Fund in

section 327 of the Omnibus Consolidated Rescissions and Appropriations

Act of 1996 (P.L. 104-134). The act authorized the Forest Service and the

Department of the Interior’s Bureau of Land Management to create a

Timber Sales Pipeline Restoration Fund to be used for preparing timber

sales to refill the timber pipeline. Net revenues collected from section

2001(k) timber sales, less the funds necessary to make payments to states

or local governments, that are in excess of $37.5 million are to be

deposited into the Timber Sales Pipeline Restoration Fund.2

 Of the

revenues deposited in the fund, 75 percent is to be used to prepare future

timber sales, other than salvage sales, and 25 percent is to be used on

backlogged recreation projects. During fiscal years 1995 through 1997, the

Forest Service deposited about $11 million in the fund and expects to

allocate about $4.5 million to the regions in fiscal year 1999 to prepare

future timber sales.

Purchaser-Elect Roads Under section 14(i) of the National Forest Management Act of 1976 (16

U.S.C. 472a(i)), certain small purchasers may elect to have the Forest

Service build the roads necessary to access the timber. The Forest Service

refers to these as “purchaser-elect” roads. The Forest Service does not

charge timber purchasers for building the roads, but it does have a

2

Section 2001(k) of the Fiscal Year 1995 Supplemental Appropriations for Disaster Assistance and

Rescissions Act (P.L. 104-19) released for sale the timber sale contracts in Washington and Oregon that

were offered for sale under section 318 of the Fiscal Year 1990 Interior and Related Agencies

Appropriation Act but were not allowed to be completed because the northern spotted owl was listed

as a threatened species.

Page 21 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

mechanism for ensuring that it recovers its estimated road-building costs

before the remaining timber sales receipts are deposited into the General

Fund of the U.S. Treasury. Each timber sales contract specifies the cost of

the roads related to the sale, and the Forest Service transfers these

amounts from the National Forest Fund to its purchaser-elect account. For

both fiscal years 1995 through 1997 and fiscal years 1992 through 1994,

purchaser-elect roads accounted for about 1 percent of timber receipts.

Treasury Payment At the end of each fiscal year, any money remaining in the National Forest

Fund after the above payments are made is deposited into the General

Fund of the U.S. Treasury. However, when such deposits are made,

timber-related receipts are not separated from receipts collected from

other forest resources, such as grazing, mining, or recreation. In total,

timber-related receipts were about 60 percent of total receipts deposited

from the National Forest Fund during fiscal years 1995 through 1997.

During fiscal years 1992 through 1994, about 50 percent of the receipts

deposited into the General Fund of the U.S. Treasury were timber-related.

The Forest Service is in the process of working with Department of

Treasury and Office of Management and Budget officials on appropriate

actions that will implement the recommendations in our August 1997

report on the National Forest Fund.3

 Once the Forest Service, Department

of Treasury, and Office of Management and Budget officials agree on the

accounting adjustments needed, the increase in deposits to the General

Fund of the U.S. Treasury for fiscal years 1994 and 1995 should total about

$285 million.

Summary

Distributions—Step Two

The five categories into which timber receipts are distributed from the

National Forest Fund, together with the amounts for fiscal years 1992

through 1997, are shown in table I.2.

3

Forest Service: Unauthorized Use of the National Forest Fund (GAO/RCED-97-216, Aug. 29, 1997).

Page 22 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix I 

Distribution of Timber Sales Receipts

Table I.2: Second-Step Distribution of

Receipts From the National Forest

Fund, Fiscal Years 1992 Through 1997 Fiscal year

Dollars in millions

Fund or account 1992 1993 1994 1995 1996 1997

Payments to

states $343.5 $317.9 $313.4 $269.0 $108.4 $89.7

Roads and Trails

Funda 56.9 45.7 45.1 30.7 19.1 19.1

Purchaser-elect

roads 9.6 9.3 6.3 5.9 5.7 4.2

Timber Sales

Pipeline

Restoration Fundb 0 0 0 0 1.4 9.4

General Fund of

the U.S. Treasury 158.9 83.8 86.3c 1.5c 55.8 68.4

Total $568.9 $456.7 $451.1 $307.1 $190.4 $190.8

Note: The amounts are presented in constant 1997 dollars and differ from the amounts shown in

our prior report for fiscal years 1992 through 1994.

aUntil fiscal year 1996, the Forest Service was required by the Congress in annual appropriation

acts to transfer the amounts deposited into the Roads and Trails Fund to the General Fund of the

U.S. Treasury. Beginning in fiscal year 1996, this language was omitted, and the Forest Service

has retained these deposits and, starting in fiscal year 1998, began to use the amounts for road

and trail construction and maintenance.

bThis fund was established in the fiscal year 1996 appropriations act.

cIn fiscal years 1994 and 1995, the spotted owl payment of $145 million and $140 million,

respectively, was inappropriately made out of the National Forest Fund rather than using the

special spotted owl appropriation, as provided for in P.L. 103-66, as amended.

Source: Prepared by GAO from the Forest Service’s data.

Page 23 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix II 

Timber Sales Receipts and Outlays by

Region Fiscal Years 1995 Through 1997

This appendix shows, by region, total receipts, the first-step distribution of

timber sales receipts, and outlays for preparing and administering timber

sales. Total receipts equals the total of the National Forest Fund,

purchaser road credits, Knutson-Vandenberg Fund, Salvage Sale Fund,

interest and penalties, and associated charges.

Outlays for preparing and administering timber sales include not only the

outlays of the individual forests, but also regional office outlays. There is

no requirement that timber receipts cover the outlays for preparing and

administering timber sales; however, these outlays are shown for

information purposes only.

The data shown in this appendix are timber sales accounting data on a

cash basis, which recognizes receipts when collected and outlays when

paid. Because of this, the data in the report are not a measure of

profitability, nor is it appropriate to compare these data against budget

authority amounts. Profitability would be measured on an accrual basis,

which matches all annual sales-related revenues with all annual

sales-related expenses.

Table II.1: Timber Sales Receipts and Outlays by Region, Fiscal Years 1995 Through 1997

Distributions of timber sales receipts

Dollars in millions

Regiona/

Fiscal year

Total

receipts

National

Forest

Fund

Purchaser

road

credits

KnutsonVandenberg

Fund

Salvage

Sale

Fund

Interest

and

penalties

Associated

charges

Preparation

and

administration

outlays

1—Northern Region

1995 $83.67 $25.72 $5.81 $19.32 $27.67 $0.04 $5.11 $40.84

1996 74.94 14.49 4.68 15.17 35.09 0.09 5.41 47.14

1997 62.93 13.06 4.67 8.72 30.45 0.08 5.93 45.16

2—Rocky Mountain Region

1995 25.77 7.22 2.42 6.69 8.09 0.04 1.30 15.20

1996 23.05 7.40 2.50 4.71 7.48 0.13 0.90 19.38

1997 24.31 10.18 3.06 5.05 5.00 0.51 0.98 21.95

3—Southwestern Region

1995 10.37 1.46 0.27 3.03 5.04 0.01 0.56 14.84

1996 3.38 0.99 0.10 1.12 0.10 0.01 0.16 15.90

1997 6.33 1.71 0.14 2.99 1.10 0.01 0.29 15.20

(continued)

Page 24 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix II 

Timber Sales Receipts and Outlays by

Region Fiscal Years 1995 Through 1997

Distributions of timber sales receipts

Dollars in millions

Regiona/

Fiscal year

Total

receipts

National

Forest

Fund

Purchaser

road

credits

KnutsonVandenberg

Fund

Salvage

Sale

Fund

Interest

and

penalties

Associated

charges

Preparation

and

administration

outlays

4—Intermountain Region

1995 26.47 9.00 2.09 6.65 7.52 0.02 1.19 28.10

1996 42.44 7.73 3.48 10.30 19.55 0.03 1.34 28.90

1997 36.69 8.53 2.06 3.65 20.92 0.04 1.48 29.46

5—Pacific Southwest Region

1995 115.23 29.87 4.10 43.00 30.54 0.11 7.60 55.19

1996 98.46 35.15 4.88 26.13 23.05 0.14 9.12 69.42

1997 84.17 17.07 5.13 17.18 34.83 0.10 9.87 63.49

6—Pacific Northwest Region

1995 238.60 128.26 5.39 51.76 40.55 0.35 12.28 91.77

1996 166.07 19.56 6.02 40.70 85.86 0.55 13.37 111.89

1997 182.95 61.13 10.77 33.36 53.18 0.13 25.87 111.98

8—Southern Region

1995 99.39 49.54 8.92 32.64 6.44 0.07 1.78 42.15

1996 118.48 53.22 7.97 43.68 11.52 0.10 1.98 46.90

1997 91.38 42.19 7.69 36.67 3.04 0.08 1.71 45.50

9—Eastern Region

1995 53.56 33.37 3.91 10.39 5.18 0.09 0.62 28.89

1996 60.67 36.82 3.68 11.19 8.43 0.01 0.55 32.82

1997 60.26 35.04 2.58 15.48 6.53 0.04 0.58 37.16

10—Alaska Region

1995 29.96 9.59 16.98 0.98 2.17 0.11 0.12 32.97

1996 23.32 11.40 7.98 0.39 2.78 0.64 0.11 32.52

1997 4.11 1.76 0.74 0.74 0.50 0.34 0.01 32.68

Note: For consistency with our prior report, the figures have not been converted to constant 1997

dollars.

Totals may not add due to rounding.

aThe Forest Service no longer has a region 7.

Source: Prepared by GAO from the Forest Service’s data.

Page 25 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix II 

Timber Sales Receipts and Outlays by

Region Fiscal Years 1995 Through 1997

Page 26 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by Forest

Fiscal Years 1995 Through 1997

This appendix shows, by forest, total receipts, the first step distribution of

timber sales receipts, outlays for preparing and administering timber sales,

and the payment to the states attributable to that particular forest. At the

forest level, for financial reporting purposes, the Forest Service groups its

155 national forests into 118 administrative units because many forests are

too small to have their own management structure. We used these 118

units, except for the Caribbean National Forest which has no timber sales

receipts, for our reporting to be consistent and comparable with the

Forest Service’s reports.

Total receipts equals the total of the National Forest Fund, purchaser road

credits, Knutson-Vandenberg Fund, Salvage Sale Fund, interest and

penalties, and associated charges. We have not included distributions to

the Timber Sales Pipeline Restoration Fund because this distribution is

made at the national level at the end of each fiscal year.

Outlays for preparing and administering timber sales are also shown for

the individual forests. There is no requirement that timber receipts cover

the outlays for preparing and administering timber sales; however, these

outlays are shown for information purposes only.

The attributable payments to the states is calculated on the basis of

25 percent of the total amounts in the National Forest Fund, purchaser

road credits, Knutson-Vandenberg Fund, and the Salvage Sale Fund.

Certain forests in Regions 5 and 6, however, receive a special payment to

compensate for lost revenues due to the listing of the northern spotted owl

as a threatened species. These payments, from a special appropriation, are

based on a legislative formula and continue until the year 2003. Payments

to the states are not made from individual forests, rather, they are made at

the national level.

The data shown in this appendix are timber sales accounting data on a

cash basis, which recognizes receipts when collected and outlays when

paid and, are thus, not a measure of the profitability of timber sales.

Profitability would be measured on an accrual basis which matches all

annual sales-related revenues with all annual sales-related expenses.

Page 27 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Table III.1: Timber Sales Receipts and Outlays by National Forest, Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Region 1

Beaverhead Forest

1995 $601,491 $(159,445) $0 $183,807 $532,147 $3,879 $41,103 $139,127 $948,667

1996 1,286,957 586,013 0 454,793 178,353 772 67,026 304,790 1,161,729

1997 718,908 214,653 0 209,725 163,840 457 130,233 147,055 2,571,814

Bitterroot Forest

1995 1,217,233 269,958 0 272,718 586,411 0 88,146 282,272 957,731

1996 1,012,238 (65,548) 45,224 371,476 462,587 104 198,395 203,435 1,209,805

1997 1,394,452 188,253 129,798 227,687 530,038 475 318,201 268,944 1,267,685

Clearwater Forest

1995 9,440,150 2,678,101 84,239 1,919,700 3,559,284 3,835 1,194,991 2,060,331 4,480,171

1996 2,564,863 402,934 235,853 298,090 958,893 31,094 637,999 473,943 5,957,683

1997 6,538,695 491,257 513,694 1,073,805 3,232,869 718 1,226,352 1,327,906 5,270,318

Custer Forest

1995 541,284 122,866 110,064 118,980 17,934 1,273 170,167 92,461 456,414

1996 264,117 (93,374) 63,387 115,102 64,573 7 114,422 37,422 435,914

1997 40,353 16,631 0 1,575 21,660 0 487 9,967 528,637

Deerlodge Forest

1995 1,995,844 (202,247) 178,678 967,793 859,454 213 191,953 450,920 1,188,075

1996 1,161,054 707,505 53,688 279,205 17,188 163 103,305 264,397 1,240,174

1997 966,890 440,072 16,394 228,467 281,957 0 0 241,723 29,960

Flathead Forest

1995 4,486,061 2,133,195 187,580 687,345 1,238,296 2,256 237,389 1,061,604 2,467,112

1996 3,508,775 (152,836) 202,622 436,933 2,769,504 16,144 236,408 814,056 2,776,913

1997 2,983,521 466,557 187,749 807,962 1,045,323 44,592 431,338 626,898 3,503,159

Gallatin Forest

1995 387,271 8,565 38,538 138,619 164,349 531 36,669 87,518 888,830

1996 663,658 (34,807) 94,827 162,120 362,545 1,449 77,524 146,171 1,015,131

1997 756,953 (27,187) 19,450 390,374 323,973 51 50,292 176,653 1,401,198

Helena Forest

1995 1,697,618 1,007,344 78,744 234,783 323,480 1,576 51,691 411,088 942,818

1996 1,222,168 5,456 13,908 49,057 1,067,047 265 86,435 283,867 1,283,198

1997 1,920,717 509,740 149,887 406,456 797,842 400 56,392 465,981 1,249,158

(continued)

Page 28 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Kootenai Forest

1995 19,865,326 5,223,667 866,628 2,296,762 10,391,190 (156) 1,087,235 4,694,562 10,152,577

1996 18,300,806 2,676,330 947,098 3,475,136 9,534,771 22,501 1,644,970 4,158,334 11,190,511

1997 15,757,139 4,535,842 1,171,344 1,964,171 6,370,470 6,156 1,709,156 3,510,457 9,694,295

Lewis and Clark Forest

1995 1,913,741 777,279 300,929 165,123 593,999 4,132 72,279 459,333 1,150,191

1996 1,829,268 751,895 36,129 221,258 741,261 363 78,362 437,636 1,039,546

1997 763,221 546,538 264,298 (89,281) 2,088 6 39,572 180,911 1,208,050

Lolo Forest

1995 5,995,668 334,759 293,361 2,672,961 2,330,998 9,385 354,204 1,408,020 3,918,691

1996 5,787,401 818,855 424,548 1,582,728 2,527,769 5,146 428,355 1,338,475 5,373,554

1997 8,489,998 1,344,004 626,524 945,177 4,820,156 13,885 740,252 1,933,965 4,835,614

Nez Perce Forest

1995 4,967,786 (195,598) 759,398 2,441,912 1,687,839 20 274,215 1,173,388 3,313,377

1996 6,471,173 2,678,437 1,587,950 713,420 1,151,882 7,584 331,900 1,532,922 3,007,225

1997 2,853,716 200,604 300,795 263,510 1,925,219 7,692 155,896 672,532 3,261,157

Idaho Panhandle Forests

1995 30,564,164 13,717,647 2,913,188 7,221,435 5,383,140 17,720 1,311,034 7,308,853 7,019,325

1996 30,865,920 6,205,676 975,926 7,011,238 15,254,484 8,810 1,409,786 7,361,831 8,211,402

1997 19,743,400 4,131,874 1,295,746 2,296,282 10,938,186 7,380 1,073,932 4,665,522 8,114,581

Region 2

Arapaho and Roosevelt Forests

1995 797,890 216,972 56,804 270,815 225,432 2,070 25,797 192,506 457,657

1996 769,066 333,379 84,125 199,221 134,574 249 17,518 187,825 849,097

1997 864,438 424,485 196,213 91,716 98,750 55 53,219 202,791 556,975

Bighorn Forest

1995 619,984 (18,040) 18,629 202,481 390,021 (1,025) 27,918 148,273 488,878

1996 792,753 140,964 11,562 85,172 490,823 0 64,232 182,130 806,000

1997 514,805 266,714 109 196,752 11,499 3,565 36,166 118,769 768,016

Black Hills Forest

1995 13,261,859 3,296,331 1,738,422 4,107,533 3,636,854 6,580 476,139 3,194,785 4,835,793

1996 10,922,878 2,462,288 1,614,094 3,140,825 3,369,465 94,799 241,407 2,646,668 4,966,863

1997 17,888,320 6,342,134 2,635,498 4,917,686 3,539,948 1,570 451,484 4,358,817 6,400,603

(continued)

Page 29 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Grand Mesa, Uncompahgre, and Gunnison Forests

1995 1,763,553 693,449 121,342 183,534 608,462 4,318 152,448 401,697 1,474,547

1996 1,459,712 739,867 84,582 114,812 454,435 2,277 63,739 348,424 1,982,391

1997 602,584 419,478 4,293 26,322 97,324 121 55,046 136,854 2,046,804

Medicine Bow Forest

1995 1,055,673 446,505 133,075 325,580 (20,821) 467 170,867 221,085 832,177

1996 875,552 (24,790) 30,550 130,682 541,649 24,516 172,945 169,523 2,138,728

1997 891,989 362,759 49,052 158,479 192,919 3,929 124,851 190,802 3,038,401

Nebraska Forest

1995 8,014 7,511 0 503 0 0 0 2,004 19,547

1996 941 605 0 336 0 0 0 235 22,945

1997 600 531 0 69 0 0 0 150 23,586

Pike and San Isabel Forests

1995 322,755 108,042 28,790 84,106 49,530 9,286 43,001 67,617 171,078

1996 396,663 179,014 (671) 119,974 40,168 9,271 48,907 84,621 388,718

1997 304,010 86,869 0 53,260 59,482 450 103,949 49,903 364,979

Rio Grande Forest

1995 3,460,957 502,621 0 1,016,132 1,807,252 2,018 132,934 831,501 910,939

1996 1,251,773 566,726 18,086 243,401 288,812 1,428 133,320 279,256 2,973,571

1997 502,522 120,170 0 87,700 219,939 38,433 36,280 106,952 3,116,847

Routt Forest

1995 1,766,177 802,836 159,173 218,040 498,435 767 86,926 419,621 1,095,604

1996 2,648,770 925,344 261,184 404,929 1,057,313 0 0 662,193 62,785

1997 2,124,618 1,797,671 50,574 131,336 145,037 0 0 531,155 314

San Juan Forest

1995 1,007,449 292,936 38,470 113,178 502,159 9,611 51,095 236,686 1,334,466

1996 1,315,056 726,923 134,582 83,608 369,943 0 0 328,764 135,846

1997 (605,084) 97,619 22,091 (779,247) 54,453 0 0 (151,271) 8,864

Shoshone Forest

1995 316,112 188,862 123 22,361 100,797 245 3,724 78,036 389,159

1996 627,571 517,388 25,283 1,622 68,710 116 14,452 153,251 519,320

1997 416,667 95,824 17,880 43,721 244,735 617 13,890 100,540 696,610

White River Forest

1995 1,388,586 686,556 124,716 143,330 297,333 9,204 127,447 312,984 1,595,342

1996 2,078,622 836,942 237,140 190,555 667,831 557 145,597 483,117 1,934,951

1997 805,846 163,273 81,114 120,165 337,701 2,077 101,516 175,563 2,328,621

(continued)

Page 30 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Region 3

Apache-Sitgreaves Forest

1995 3,146,871 370,396 24,047 1,126,848 1,488,793 2,534 134,253 752,521 4,225,581

1996 1,808,482 577,932 31,918 628,798 507,344 131 62,359 436,498 2,753,743

1997 2,002,144 702,920 8,809 996,431 222,522 3,751 67,711 482,671 3,073,599

Carson Forest

1995 558,362 5,730 55,672 316,942 112,890 0 67,128 122,809 1,185,662

1996 379,805 32,815 16,122 157,888 127,275 3,794 41,911 83,525 1,126,789

1997 237,373 64,593 15,357 96,386 47,988 300 12,749 56,081 1,537,282

Cibola Forest

1995 141,744 48,025 4,396 69,688 12,418 0 7,217 33,632 429,715

1996 61,487 6,586 0 41,048 11,278 0 2,575 14,728 621,091

1997 285,657 108,846 7,823 139,377 13,459 0 16,152 67,376 606,238

Coconino Forest

1995 2,273,585 933,540 48,614 387,760 813,624 4,702 85,345 545,885 2,500,629

1996 340,460 108,523 25,771 80,207 110,653 250 15,056 81,289 2,798,510

1997 798,346 246,311 50,164 150,054 312,187 2,005 37,625 189,679 2,183,972

Coronado Forest

1995 14,325 3,414 0 9,134 1,777 0 0 3,581 243,802

1996 23,398 6,598 0 16,519 281 0 0 5,850 298,363

1997 17,532 6,810 0 10,595 0 54 73 4,351 275,621

Gila Forest

1995 332,704 18,115 51,268 85,369 133,891 140 43,921 72,161 954,512

1996 70,679 21,874 3,506 13,411 29,366 103 2,419 17,039 1,521,042

1997 36,842 21,347 (6,878) 11,671 14,359 0 (3,657) 10,125 898,776

Kaibab Forest

1995 2,679,148 67,057 19,467 665,709 1,742,615 1,554 182,746 623,712 1,194,721

1996 395,389 204,502 15,419 80,953 69,357 4,121 21,037 92,558 1,622,961

1997 1,714,225 355,602 21,748 977,958 253,719 2,694 102,504 402,257 1,692,151

Lincoln Forest

1995 74,119 (8,138) 63,705 (2,705) 16,912 0 4,345 17,444 438,659

1996 37,836 5,425 0 13,499 17,950 0 962 9,219 626,063

1997 156,557 60,416 36,553 38,447 17,252 0 3,889 38,167 376,055

(continued)

Page 31 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Prescott Forest

1995 71,426 3,487 0 44,947 19,539 0 3,453 16,993 375,515

1996 39,404 10,179 0 13,166 15,518 0 541 9,716 615,166

1997 580,525 45,646 0 429,944 72,183 0 32,752 136,943 757,035

Santa Fe Forest

1995 286,868 13,945 (549) 36,214 231,338 0 5,920 70,237 1,194,333

1996 186,768 18,829 6,012 67,237 89,649 0 5,041 45,432 1,340,478

1997 281,018 90,847 7,194 50,525 123,901 0 8,551 68,117 1,275,242

Tonto Forest

1995 794,016 2,864 2,007 291,613 466,337 2,825 28,370 190,705 585,612

1996 35,655 1,710 0 8,088 18,391 0 7,466 7,047 827,613

1997 43,174 9,016 0 5,539 21,130 0 7,489 8,921 850,061

Region 4

Boise Forest

1995 8,564,034 2,204,811 516,963 3,034,975 2,510,241 10,363 286,681 2,066,748 7,789,076

1996 18,609,586 2,674,489 568,928 7,301,703 7,620,705 15,261 428,500 4,541,456 8,275,322

1997 11,331,557 2,529,665 455,070 (1,184,866) 9,281,348 14,000 236,340 2,770,304 7,865,620

Bridger-Teton Forest

1995 993,550 26,856 124,665 305,122 474,377 (76) 62,606 232,755 707,425

1996 971,115 324,625 52,785 217,822 327,757 12,055 36,071 230,747 1,075,477

1997 515,834 (13,387) 61,827 80,121 349,292 13,215 24,766 119,463 912,973

Caribou Forest

1995 364,647 83,715 98,493 123,452 26,623 0 32,364 83,071 727,685

1996 596,187 330,510 33,181 145,200 46,930 0 40,366 138,955 727,377

1997 698,751 197,548 120,488 308,248 19,385 1,532 51,550 161,417 686,054

Challis Forest

1995 305,536 8,688 60,384 170,878 65,586 0 0 76,384 241,301

1996 366,610 99,205 35,383 90,847 141,175 0 0 91,653 72,453

1997 51,986 (14,077) 62,586 31,819 (28,342) 0 0 12,997 62,041

Dixie Forest

1995 945,386 94,542 105,574 81,061 630,905 0 33,304 228,021 2,472,300

1996 1,742,341 153,767 218,702 172,300 1,148,616 0 48,956 423,346 2,778,852

1997 1,534,054 (107,593) 121,603 109,104 1,161,575 951 248,414 321,172 2,432,662

(continued)

Page 32 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Fishlake Forest

1995 162,527 2,074 23,870 69,722 61,734 0 5,127 39,350 460,539

1996 362,860 48,363 35,061 105,378 160,322 0 13,736 87,281 421,823

1997 467,157 (55,099) 26,019 163,352 315,594 0 17,291 112,467 554,916

Humboldt Forest

1995 10,795 3,175 0 4,032 3,588 0 0 2,699 53,964

1996 31,313 2,187 0 2,208 26,918 0 0 7,828 391

1997 (15,379) (21,941) 0 3,029 3,533 0 0 (3,845) 300

Manti-La Sal Forest

1995 255,835 (848) 11,059 62,132 151,976 25 31,491 56,080 968,349

1996 589,006 58,378 1,385 84,957 388,531 0 55,755 133,313 1,065,512

1997 327,934 (83,608) 33,192 (33,471) 339,193 25 72,603 63,827 844,284

Northern Utah Eco Groupg

1995 2,601,142 546,973 127,834 446,824 1,406,196 136 73,179 631,957 1,249,218

1996 2,912,402 1,037,175 479,218 256,266 1,069,429 2,433 67,881 710,522 2,739,027

1997 2,760,452 296,206 195,329 868,034 1,334,366 4,504 62,013 673,484 2,743,489

Payette Forest

1995 9,541,826 5,212,681 991,811 1,457,674 1,454,885 1,977 422,798 2,279,263 7,091,913

1996 13,964,461 2,517,520 1,836,176 1,204,311 7,945,532 108 460,814 3,375,885 5,042,996

1997 16,415,562 5,975,503 920,708 2,245,446 6,721,049 2,346 550,510 3,965,677 6,219,363

Salmon Forest

1995 1,140,640 405,019 28,471 382,594 256,570 436 67,550 268,164 1,788,557

1996 699,294 95,799 198,303 179,943 132,620 322 92,307 151,666 2,090,260

1997 998,907 (116,165) 46,455 379,810 621,913 1,472 65,422 233,003 1,982,449

Sawtooth Forest

1995 513,216 4,601 0 183,515 242,789 3,118 79,193 107,726 551,427

1996 810,185 129,968 0 146,098 483,414 0 50,705 189,870 610,002

1997 468,304 (142,603) 0 77,722 485,526 501 47,158 105,161 687,055

Targhee Forest

1995 881,413 387,709 0 289,501 129,316 1,015 73,872 201,632 998,518

1996 404,025 126,828 0 111,010 126,705 1,720 37,762 91,136 596,336

1997 461,506 155,037 0 171,787 71,826 1,339 61,517 99,663 974,832

Toiyabe Forest

1995 193,205 24,679 6,342 38,478 105,615 0 18,091 43,779 618,669

1996 383,601 132,773 23,415 279,870 (63,394) 0 10,937 93,166 1,083,593

1997 673,357 (65,935) 22,629 426,528 245,418 0 44,717 157,160 724,506

(continued)

Page 33 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Region 5

Angeles Forest

1995 18,695 6,542 0 12,153 0 0 0 4,674 72,234

1996 21,917 4,457 0 17,460 0 0 0 5,479 63,862

1997 7,588 2,260 0 5,328 0 0 0 1,897 99,232

Cleveland Forest

1995 7,397 3,268 0 4,129 0 0 0 1,849 41,401

1996 7,719 2,424 0 5,295 0 0 0 1,930 (615)

1997 9,121 3,573 0 5,548 0 0 0 2,280 31,498

Eldorado Forest

1995 2,010,365 (4,422,694) 29,127 5,788,095 529,675 11 86,151 481,051 5,062,751

1996 3,593,656 843,961 137,650 483,476 1,921,593 8,241 198,735 846,670 4,846,538

1997 3,749,001 732,954 223,561 2,870,021 (366,023) 0 288,488 865,128 4,577,351

Inyo Forest

1995 3,868,551 2,213,453 0 1,573,959 24,275 746 56,118 952,922 767,758

1996 1,314,434 1,040,079 0 192,499 52,468 103 29,285 321,262 394,989

1997 173,808 (305,444) 0 400,969 69,812 63 8,408 41,334 322,912

Klamath Foresth

1995 6,278,901 2,979,448 439,898 1,374,728 987,701 2,823 494,303 4,251,530 4,830,335

1996 10,278,966 1,631,716 967,651 1,653,820 4,652,557 6,973 1,366,249 4,095,986 6,628,771

1997 9,763,795 1,192,714 913,403 1,604,856 4,199,155 23,206 1,830,461 3,940,442 5,144,113

Lassen Forest

1995 27,628,546 4,760,191 405,669 14,872,537 6,208,491 29,626 1,352,032 6,561,722 6,201,074

1996 11,587,822 1,445,681 744,038 4,301,341 4,089,276 20,813 986,673 2,645,084 8,182,624

1997 15,890,304 2,816,918 719,174 2,979,562 8,081,368 21,385 1,271,897 3,649,256 7,462,399

Los Padres Forest

1995 7,653 672 0 2,897 1,431 0 2,653 1,250 64,729

1996 14,719 626 0 4,863 5,174 0 4,056 2,666 63,907

1997 9,174 880 0 2,878 3,163 0 2,253 1,730 75,712

Mendocino Foresth

1995 32,495 5,058 0 13,554 13,457 0 426 2,344,278 817,010

1996 1,168,316 (175,045) 531,210 452,381 239,665 0 120,105 2,258,512 1,365,129

1997 3,274,735 593,611 143,671 1,219,848 1,155,205 228 162,172 2,172,745 1,853,543

(continued)

Page 34 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Modoc Foresth

1995 11,159,792 3,281,416 101,112 4,425,657 2,887,724 71 463,812 2,642,197 3,770,167

1996 7,111,895 3,552,087 57,526 1,130,459 1,537,894 9,106 824,823 2,545,532 4,658,479

1997 5,799,475 838,290 77,725 1,281,074 3,062,434 17,687 522,265 2,448,866 4,660,273

Plumas Forest

1995 22,511,143 6,626,301 952,775 3,527,010 10,085,667 6,661 1,312,729 5,297,938 3,684,403

1996 16,327,786 9,677,855 354,514 2,979,357 2,494,885 64,129 757,046 3,876,653 5,592,926

1997 6,187,639 1,224,706 416,206 966,400 2,573,975 1,272 1,005,080 1,295,322 4,745,334

San Bernardino Forest

1995 164,388 5,002 0 29,624 123,528 0 6,234 39,539 270,257

1996 91,801 11,055 0 28,922 44,656 0 7,168 21,158 299,214

1997 79,741 2,919 0 22,694 47,300 0 6,828 18,228 144,444

Sequoia Forest

1995 3,900,626 185,398 136,421 1,620,334 1,761,920 3,107 193,446 926,018 3,008,823

1996 4,217,942 2,313,076 118,940 1,368,738 132,094 3,213 281,881 983,212 3,305,046

1997 4,073,403 1,164,352 251,301 2,110,828 102,354 1,689 442,879 907,209 2,668,961

Shasta-Trinity Foresth

1995 11,933,569 7,107,932 469,794 1,360,272 1,242,134 303 1,753,134 6,707,680 4,268,405

1996 15,021,448 9,686,981 177,278 2,814,931 1,380,697 0 961,561 6,462,277 6,490,632

1997 10,352,186 5,363,524 261,136 213,611 3,449,902 556 1,063,457 6,216,874 7,720,485

Sierra Forest

1995 5,249,678 3,114,578 206,921 1,358,661 313,087 18,489 237,942 1,248,312 3,225,340

1996 10,517,304 2,556,271 995,322 3,144,623 2,562,521 9,022 1,249,545 2,314,684 4,041,717

1997 6,603,422 1,580,525 674,521 1,320,518 2,349,741 149 677,968 1,481,326 3,285,846

Six Rivers Foresth

1995 3,455,619 (1,112,516) 20,115 4,077,176 307,575 51,926 111,343 4,101,614 2,112,270

1996 7,018,493 5,240,282 213,347 406,472 539,041 6,622 612,729 3,951,556 2,806,598

1997 4,126,021 835,456 173,959 206,582 2,128,752 10,846 770,426 3,801,496 3,161,264

Stanislaus Forest

1995 10,767,528 5,085,373 204,003 1,801,102 3,234,128 6,340 436,582 2,581,152 3,680,987

1996 4,906,710 (3,154,504) 206,806 5,232,408 2,231,218 4,249 386,533 1,128,982 6,367,892

1997 5,382,894 1,734,771 733,511 417,257 1,885,638 12,532 599,185 1,192,794 4,930,616

Tahoe Forest

1995 5,097,232 215,871 598,068 724,370 2,590,805 (6,890) 975,008 1,032,279 7,034,666

1996 5,266,652 473,361 374,409 1,912,101 1,163,032 6,346 1,337,403 980,726 8,832,653

1997 8,687,899 (712,288) 539,287 1,548,223 6,084,406 9,873 1,218,398 1,864,907 8,220,333

(continued)

Page 35 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Region 6

Colville Forest

1995 3,966,225 650,097 229,047 1,016,889 1,682,600 2,153 385,439 894,658 4,172,594

1996 4,962,987 (222,209) 300,595 1,624,318 2,984,827 3,957 271,499 1,171,883 5,892,776

1997 5,241,614 (128,592) 901,097 560,809 3,539,893 5,297 363,110 1,218,302 5,939,884

Deschutes Foresth

1995 15,433,760 5,607,308 467,658 4,023,316 3,830,431 13,481 1,491,566 5,218,522 5,615,342

1996 7,169,926(10,135,969) 489,680 2,997,391 12,896,687 5,442 916,695 5,027,600 8,143,591

1997 11,873,245 1,279,064 908,644 3,422,152 4,664,912 7,491 1,590,982 4,836,679 8,123,822

Fremont Forest

1995 10,410,898 1,717,078 676,971 1,274,925 6,073,955 122,210 545,759 2,435,732 3,194,797

1996 4,539,035 (1,680,268) 229,529 726,562 4,973,581 24,935 264,696 1,062,351 3,604,378

1997 8,532,851 1,920,784 7,029 270,648 5,668,167 22,290 643,933 1,966,657 3,501,938

Gifford-Pinchot Foresth

1995 11,510,878 8,448,367 368,676 910,360 1,290,087 1,347 492,041 11,258,368 5,817,702

1996 3,403,934 (9,244,263) 11,948 434,148 11,315,944 10,090 876,067 10,846,476 5,961,360

1997 14,799,787 1,626,228 433,079 1,324,904 2,464,613 15,472 8,935,491 10,434,585 6,426,502

Malheur Forest

1995 47,249,844 29,101,479 554,086 10,362,751 5,579,519 8,226 1,643,783 11,399,459 6,166,811

1996 13,783,037 7,684,257 1,011,105 523,743 4,001,071 332 562,529 3,305,044 8,235,067

1997 8,884,663 (4,780,822) 673,261 2,121,693 10,239,489 1,433 629,609 2,063,405 7,643,815

Mt. Baker-Snoqualmie Foresth

1995 13,873,114 11,258,089 181,662 1,721,083 479,718 10,281 222,281 8,245,498 1,753,489

1996 3,352,533 (3,615,474) 178,394 4,188,303 2,486,073 1,385 113,852 7,943,833 1,720,471

1997 1,468,039 (811,306) 123,267 1,528,573 571,236 16 56,253 7,642,169 1,551,717

Mt. Hood Foresth

1995 11,030,545 7,269,019 146,537 1,434,096 1,692,257 7,069 481,567 10,244,103 7,099,532

1996 8,745,193 3,617,800 382,228 2,299,501 1,569,678 (7,611) 883,597 9,869,319 8,538,637

1997 9,771,258 3,547,320 436,358 1,109,525 2,872,231 6,026 1,799,798 9,494,535 7,723,631

(continued)

Page 36 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Ochoco Forest

1995 14,340,684 6,181,797 285,170 3,612,304 3,665,975 646 594,792 3,436,312 4,990,122

1996 5,019,206 2,810,178 17,896 757,788 1,060,877 2,045 370,422 1,161,685 5,385,254

1997 4,321,871 1,050,132 276,947 709,065 1,673,039 45 612,643 927,296 3,846,656

Okanogan Foresth

1995 4,871,734 (3,311,505) 42,998 2,738,624 3,855,980 5,811 1,539,826 1,454,916 2,630,363

1996 2,987,931 571,032 49,323 1,115,595 853,459 1,687 396,835 1,401,687 3,816,223

1997 2,869,253 (3,318,702) 23,350 1,906,011 3,909,949 36 348,609 1,348,458 3,874,485

Olympic Foresth

1995 3,116,656 2,033,223 107,893 286,228 535,204 7,768 146,340 4,757,998 1,968,336

1996 5,091,304 2,071,152 150,181 250,494 1,284,279 45,786 1,289,412 4,583,925 2,129,774

1997 2,646,719 487,938 92,354 386,662 1,504,088 1,779 173,898 4,409,852 2,154,422

Rogue River Foresth

1995 9,388,159 4,693,950 17,926 3,791,398 415,113 3,642 466,130 6,416,272 3,136,759

1996 7,886,345 (6,067,947) 617,721 842,290 11,916,272 83,818 494,191 6,181,530 4,696,327

1997 13,906,275 8,162,283 422,716 2,584,954 1,935,124 23,594 777,604 5,946,789 5,102,504

Siskiyou Foresth

1995 7,314,253 4,994,549 628,773 1,189,975 161,505 477 338,974 6,351,831 3,167,195

1996 18,189,906 9,883,848 632,990 4,982,098 1,667,109 11,078 1,012,783 6,119,447 4,303,775

1997 14,706,726 6,295,116 937,277 4,647,202 1,959,619 1,399 866,113 5,887,063 3,743,609

Siuslaw Foresth

1995 10,579,713 7,036,216 144,318 2,937,447 266,722 1,500 193,510 13,026,387 3,062,831

1996 8,727,090 4,296,019 39,749 2,229,308 1,963,961 4,393 193,660 12,549,812 3,187,798

1997 1,272,131 197,353 70,675 583,833 396,883 0 23,387 12,073,237 3,181,344

Umatilla Forest

1995 3,741,556 (450,612) 15,187 1,335,971 2,457,840 3,954 379,216 839,597 4,554,347

1996 6,933,541 1,438,255 82,205 1,572,723 3,188,579 3,967 647,812 1,570,441 5,643,815

1997 10,570,903 1,701,069 451,331 2,911,836 4,687,834 254 818,579 2,438,018 5,335,104

Umpqua Foresth

1995 20,034,350 17,098,675 374,111 1,726,824 229,015 10,366 595,359 14,427,826 4,682,755

1996 21,071,531 15,446,691 321,420 2,413,523 2,086,272 5,561 798,064 13,899,978 5,555,947

1997 25,784,265 19,991,509 992,306 2,309,852 1,667,387 327 822,884 13,372,131 6,561,373

Wallowa-Whitman Forest

1995 3,688,131 (2,422,881) 741,734 3,253,686 1,926,468 2,092 187,032 874,752 4,645,481

1996 4,185,581 (582,976) 153,444 2,410,756 1,930,715 2,638 271,004 977,985 5,272,014

1997 5,392,586 444,728 407,939 1,251,917 2,597,858 5,401 684,743 1,175,611 5,409,223

(continued)

Page 37 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Wenatchee Foresth

1995 1,665,083 415,874 8,375 914,302 122,883 5,544 198,105 2,275,447 6,708,630

1996 4,099,645 (1,931,171) 0 1,763,673 3,592,791 19,391 654,961 2,192,199 6,194,854

1997 2,372,351 (283,860) 68,205 1,210,017 875,960 9,575 492,454 2,108,951 5,078,385

Willamette Foresth

1995 39,352,499 27,002,877 393,035 7,872,167 2,062,900 139,281 1,882,239 27,009,152 7,746,243

1996 23,257,845 2,868,162 1,310,722 6,407,867 9,680,731 327,184 2,663,179 26,021,012 8,262,942

1997 39,703,696 22,177,836 3,488,996 4,598,059 3,589,935 22,682 5,826,188 25,032,872 11,154,652

Winema Foresth

1995 7,031,678 938,103 9,121 1,362,747 4,225,658 2,568 493,481 8,116,463 6,244,587

1996 12,667,955 2,356,796 38,222 3,165,258 6,412,137 3,357 692,185 7,819,519 7,476,837

1997 3,860,644 1,570,594 57,159 (81,005) 1,905,335 3,447 405,114 7,522,575 7,923,430

Region 8

National Forests in Alabama

1995 5,765,465 2,268,987 143,189 2,607,333 614,732 1,827 129,397 1,408,560 2,283,176

1996 8,138,340 1,125,326 22,521 4,507,424 2,327,007 4,393 151,669 1,995,570 2,809,438

1997 3,832,815 969,893 19,942 2,661,874 105,554 10,142 65,410 939,316 2,220,976

Chattachoochee and Oconee Forests

1995 2,797,032 1,505,757 159,115 831,959 235,582 3,375 61,244 683,103 2,416,827

1996 3,368,784 942,958 128,566 1,172,402 1,056,950 6,186 61,722 825,219 2,818,022

1997 2,495,688 796,655 166,852 1,133,456 342,259 (87) 56,553 609,806 2,490,310

Cherokee Forest

1995 1,401,376 619,752 231,870 520,516 0 300 28,938 343,035 1,359,901

1996 899,521 210,317 126,388 533,317 13,510 718 15,271 220,883 1,234,769

1997 1,363,840 676,367 100,993 559,526 8,897 0 18,057 336,446 1,386,642

Daniel Boone Forest

1995 1,187,779 (10,440) 260,136 927,352 0 1,229 9,502 294,262 1,911,476

1996 1,880,272 279,815 339,641 1,212,655 10,325 12,408 25,428 460,609 2,097,687

1997 1,658,960 378,774 189,777 1,029,072 14,546 18,178 28,613 403,042 2,052,207

National Forests in Florida

1995 4,604,913 3,271,547 180,884 1,048,292 0 220 103,970 1,125,181 1,727,396

1996 3,679,936 2,666,252 90,139 827,913 10,008 409 85,215 898,578 1,938,553

1997 3,521,218 1,889,646 432,662 1,099,563 207 1,485 97,655 855,520 2,437,252

(continued)

Page 38 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

George Washington Forest

1995 2,311,637 932,062 67,533 883,143 392,142 0 36,757 568,720 1,469,347

1996 1,907,451 841,803 11,706 706,779 277,897 8,229 61,037 459,546 3,006,850

1997 1,780,659 529,997 66,686 719,832 419,660 2,346 42,138 434,044 2,893,857

Jefferson Forest

1995 1,549,541 423,318 179,871 698,651 197,674 1,478 48,549 374,879 1,497,150

1996 1,173,785 263,723 70,491 700,562 139,009 0 0 293,446 15,932

1997 1,095,617 220,606 55,651 809,768 9,592 0 0 273,904 (289)

Kisatchie Forest

1995 8,673,866 3,434,450 1,275,575 3,385,784 394,722 12,254 171,081 2,122,633 2,671,876

1996 10,903,457 3,869,653 1,215,536 5,192,220 455,565 2,333 168,150 2,683,244 2,835,931

1997 11,848,905 5,328,074 971,774 5,257,759 39,975 9,736 241,587 2,899,396 2,920,484

Marion-Sumter Forest

1995 5,322,049 3,840,450 255,492 1,061,237 83,349 173 81,348 1,310,132 2,316,613

1996 3,738,485 2,606,068 163,807 706,135 167,093 1,723 93,659 910,776 2,280,449

1997 5,061,347 3,885,470 301,260 760,633 28,615 6,743 78,626 1,243,995 2,328,898

National Forests in Mississippi

1995 29,026,587 17,387,726 1,650,188 6,710,289 2,915,720 13,189 349,475 7,165,981 6,293,087

1996 33,276,940 16,631,419 2,702,456 10,565,828 2,934,450 15,626 427,161 8,208,538 6,016,942

1997 19,543,723 11,002,348 1,938,424 6,196,446 273,576 11,579 121,350 4,852,699 7,146,658

National Forests in North Carolina

1995 3,412,479 760,125 900,133 1,643,173 29,417 283 79,348 833,212 2,287,916

1996 2,466,325 295,763 574,831 1,238,784 290,325 188 66,434 599,926 3,026,292

1997 2,504,073 816,685 450,589 870,984 304,158 273 61,384 610,604 3,039,258

Ouachita Forest

1995 16,797,236 5,327,955 656,324 9,051,826 1,306,965 13,419 440,747 4,085,768 6,210,274

1996 22,929,941 9,364,256 694,736 9,218,236 3,125,197 29,037 498,479 5,600,606 7,083,042

1997 21,078,840 8,053,142 812,578 10,418,134 1,129,421 7,500 658,065 5,103,319 7,000,796

Ozark and St. Francis Forests

1995 5,038,963 1,859,672 672,459 2,446,567 0 21,953 38,312 1,244,675 2,834,878

1996 6,771,172 3,764,090 349,985 2,386,277 187,742 13,286 69,792 1,672,024 3,635,063

1997 6,699,124 2,889,210 742,289 2,720,220 219,944 9,797 117,664 1,642,916 3,547,274

National Forests in Texas

1995 11,505,723 7,922,252 2,283,588 822,895 268,668 5,042 203,278 2,824,351 3,209,782

1996 17,350,182 10,364,232 1,478,267 4,715,946 528,308 8,051 255,378 4,271,688 3,610,581

1997 8,900,540 4,752,097 1,436,961 2,435,386 145,964 3,140 126,992 2,192,602 3,603,901

(continued)

Page 39 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Region 9

Allegheny Forest

1995 21,397,747 14,934,486 1,574,154 2,166,063 2,549,397 52,672 120,975 5,306,025 4,036,607

1996 24,754,406 16,060,722 1,971,264 3,438,689 3,143,000 (36,352) 177,083 6,153,419 3,840,547

1997 24,064,734 14,118,546 1,076,902 6,775,876 1,902,648 12,966 177,796 5,968,493 4,130,989

Chequamegon Forest

1995 2,410,400 1,385,131 55,311 658,103 248,558 2,793 60,504 586,776 2,307,270

1996 3,486,894 2,124,131 37,119 837,898 432,718 2,474 52,554 857,967 2,982,317

1997 4,525,045 3,360,240 32,892 720,651 348,620 1,784 60,858 1,115,601 2,946,078

Chippewa Forest

1995 3,295,912 2,295,526 55,699 789,898 122,927 4,189 27,673 816,013 1,636,707

1996 3,618,923 1,730,451 28,879 450,269 1,382,212 812 26,300 897,953 2,189,057

1997 3,348,618 1,316,252 55,060 760,248 1,190,584 3,760 22,714 830,536 2,658,840

Green Mountain Forest

1995 431,635 249,728 9,009 116,325 53,661 722 2,190 107,181 502,359

1996 665,656 486,115 5,027 107,977 60,375 3,560 2,602 164,874 475,129

1997 415,300 215,636 2,175 105,585 89,694 471 1,739 103,273 661,874

Hiawatha Forest

1995 3,464,425 1,867,228 200,990 1,095,275 277,711 2,094 21,127 860,301 1,894,669

1996 2,963,343 1,560,384 53,995 751,156 579,110 0 18,698 736,161 1,825,825

1997 2,751,554 773,949 69,788 1,261,836 635,132 78 10,771 685,176 2,142,806

Huron-Manistee Forest

1995 2,856,117 2,178,738 77,630 505,027 43,926 1,492 49,304 701,330 2,434,683

1996 3,104,681 2,301,477 97,421 554,382 118,800 796 31,805 768,020 2,806,017

1997 4,423,725 2,993,945 63,960 1,130,551 156,280 11,419 67,570 1,086,184 2,775,125

Hoosier Forest

1995 27,335 26,869 0 0 0 466 0 6.717 93,888

1996 12,740 4,243 0 7,274 1,223 0 0 3,185 197,261

1997 92,224 8,449 0 42,629 40,829 0 317 22.977 393,436

Mark Twain Forest

1995 4,738,375 1,813,092 198,309 2,210,261 358,311 141 158,261 1,144,993 2,815,953

1996 4,899,968 2,381,897 278,386 1,901,896 266,134 964 70,691 1,207,078 3,299,238

1997 4,604,746 2,039,092 188,581 2,007,833 285,093 849 83,298 1,130,150 2,966,085

(continued)

Page 40 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Monogahela Forest

1995 5,166,648 3,552,198 1,076,927 436,393 51,872 0 49,258 1,279,348 1,721,627

1996 7,019,612 5,610,362 727,736 618,611 14,929 0 47,974 1,742,910 2,047,540

1997 6,097,195 4,586,665 764,815 690,843 1,942 0 52,930 1,511,066 2,113,415

Nicolet Forest

1995 2,594,058 1,593,717 189,456 497,139 286,426 5,968 21,352 641,685 1,988,671

1996 2,661,359 1,845,465 133,775 362,075 301,252 2,119 16,673 660,642 2,361,772

1997 2,587,168 1,793,223 142,257 394,064 243,450 935 13,239 643,249 2,155,889

Ottawa Forest

1995 3,307,288 1,936,550 239,915 637,624 459,517 1,412 32,270 818,402 2,810,900

1996 3,115,701 1,990,024 90,656 570,622 426,456 7,515 30,428 769,440 2,913,490

1997 3,482,750 2,129,088 83,890 703,292 524,825 2,299 39,356 860,274 3,277,497

Shawnee Forest

1995 74,666 14,592 14,809 11,063 33,991 0 211 18,614 472,246

1996 62,204 28,041 2,500 13,165 0 18,439 59 10,927 288,880

1997 5,449 2,714 2,409 232 0 56 38 1,339 177,114

Superior Forest

1995 2,757,601 864,404 117,202 1,152,926 552,477 2,539 68,053 671,752 2,120,337

1996 3,295,624 105,451 122,843 1,411,139 1,588,443 1,443 66,305 806,969 2,788,633

1997 2,443,433 651,864 4,492 722,797 1,017,203 5,440 41,637 599,089 3,036,280

Wayne Forest

1995 23,006 6,849 6,768 9,025 0 0 364 5,661 234,678

1996 6,595 6,595 0 0 0 0 0 1,649 201,749

1997 30,563 26,110 35 4,418 0 0 0 7,641 242,908

White Mountain Forest

1995 1,012,933 651,281 91,512 110,351 143,722 10,680 5,387 249,217 1,874,643

1996 1,001,829 583,518 130,487 161,600 111,386 8,562 6,276 246,748 2,477,505

1997 1,386,105 1,024,006 95,507 164,713 93,026 141 8,712 344,313 2,171,797

Region 10

Tongass Forest

1995 29,936,634 9,595,351 16,980,017 983,868 2,149,975 108,647 118,776 7,427,303 26,502,587

1996 23,246,320 11,404,755 7,982,729 385,365 2,724,369 638,966 110,136 5,624,305 26,078,793

1997 4,084,188 1,754,407 745,895 732,029 496,209 342,191 13,457 932,135 26,425,518

(continued)

Page 41 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix III 

Timber Sales Receipts and Outlays by

Forest Fiscal Years 1995 Through 1997

Distribution of timber sales receipts

Region/

Forest/

Fiscal year

Total

receipts

National

Forest

Funda

Purchaser

road

creditsb

KnutsonVandenberg

Fundc

Salvage

Sale

Fundd

Interest

and

penaltiese

Associated

charges

Attributable

payments

to statesf

Preparation

and

administration

outlays

Chugach Forest

1995 22,866 (8,206) 0 1,578 21,479 5,283 2,732 3,713 894,595

1996 70,209 (4,981) 0 9,373 57,199 5,116 3,502 15,398 1,815,329

1997 22,993 9,205 0 8,025 4,758 436 569 5,497 947,031

Note: For consistency with our prior report, the figures have not been converted to constant 1997

dollars. Totals may not add due to rounding.

aAccording to the Forest Service’s records, negative figures appear for several reasons including

setting aside funding for land exchanges by forests covered by the spotted owl guarantee and

transferring funds from the National Forest Fund to the Salvage Sale Fund and the

Knutson-Vandenberg Fund in anticipation of excess receipts.

bAccording to the Forest Service’s records, negative figures appear because an adjustment was

made in the timber volume offered and cash paid for timber was returned to the purchaser. The

forests replaced the money from these adjustments with charges to the purchaser road credits

account resulting in a negative balance.

cAccording to the Forest Service’s records, negative figures appear for several reasons including

transferring funds to the National Forest Fund to assure that sufficient funds were available to

make the payments to states.

dAccording to the Forest Service’s records, negative figures appear because reversals of prior

year transfers from the National Forest Fund to the Salvage Sale Fund resulted in a negative

balance.

eAccording to the Forest Service’s records, negative figures appear because charges assessed

in prior years were dismissed in a subsequent year and an adjustment became necessary.

f

Payments to states are calculated on the basis of 25 percent of the total amounts in the National

Forest Fund, purchaser road credits account, Knutson-Vandenberg Fund, and the Salvage Sale

Fund. Certain counties in Regions 5 and 6, however, receive a special payment based on a

legislatively mandated formula to compensate them for lost revenues due to the listing of the

northern spotted owl as a threatened species. The amounts distributed to states are reflective of

only those amounts attributable to the timber receipts portion of the formula.

gThe Ashley, Uinta, and Wasatch-Cache National Forests combined for financial reporting

purposes during this period.

hThis forest is one affected by the listing of the northern spotted owl as a threatened species and

thus, the payments to the state are based on a special formula.

Source: Compilation based on the Forest Service’s records.

Page 42 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix IV 

Objectives, Scope, and Methodology

The Ranking Minority Member of the House Resources Committee asked

us to update the information from our September 1995 report on the

distribution of fiscal years 1992 through 1994 timber sales receipts.

Specifically, we were asked to provide information on the amount of the

Forest Service’s timber sales receipts for fiscal years 1995 through 1997,

the amounts distributed into specific Forest Service funds or accounts, the

outlays for preparing and administering timber sales, and the amounts of

timber sales receipts transferred to the General Fund of the U.S. Treasury

for that same period. We were also asked to provide information on

changes in the receipts distribution process since our last report.

Methodology To respond to these objectives, we gathered Forest Service timber sales

accounting data. These data are on a “cash” basis, which recognizes

receipts when collected and outlays when paid and are, thus, not a

measure of the profitability of timber sales. We chose to use cash

accounting data because they reflect the day-to-day operations of a forest.

Cash accounting data do not reflect all costs associated with operating a

particular forest and, thus, cannot be used as a measure of profitability on

an individual forest basis. The “accrual accounting” method better

matches annual sale-related revenues with annual sale-related costs, costs

that are long-term investments that will benefit future as well as current

sale-related activities are placed in one of three “pools” and are

redistributed back to a particular year based on pre-established formulas.1

The Forest Service’s Forest Management Program Report presents

information compiled by the Timber Sale Program Information Reporting

System (TSPIRS), which is accrual accounting data. According to these

reports, for fiscal years 1995 through 1997, the Forest Service timber

management program had net revenues of $62 million in fiscal year 1995, a

loss of $15 million in fiscal year 1996, and a loss of $89 million in fiscal

year 1997.2

Our information is presented on a national, regional, and forest basis. At

each level, we obtained the outlays for timber sales preparation and

administration associated with that level. At the forest level, for financial

1

The “sale activity pool” includes those costs directly associated with the preparation of timber sales,

the “growth activity pool” includes the cost of growing timber over an entire rotation, and the

“depreciation pool” includes the costs of roads and facilities that are depreciated over their useful

lives.

2

The total reported loss for fiscal year 1997 was $89 million. Of this amount, $52 million is attributable

to an accounting change where the Forest Service, beginning in fiscal year 1997, will recognize the

costs associated with constructing a road’s underlying bed (road prisms) as an annual expense rather

than being permanently capitalized into land values.

Page 43 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix IV 

Objectives, Scope, and Methodology

reporting purposes, the Forest Service groups its 155 national forests into

118 administrative units because many forests are too small to have their

own management structure. We used these 118 units, except for the

Caribbean National Forest which has no timber sales receipts, for our

reporting to be consistent and comparable with the Forest Service’s

reports. Appendixes II and III are tables that show the details regarding

the receipts and outlays at the regional and forest levels, respectively. The

data in these tables are timber sales accounting data on a cash basis,

which recognize receipts when collected and outlays when paid and, are

thus, not a measure of the profitability of timber sales. Therefore, the data

cannot be added to determine profit or loss because profitability would be

measured on an accrual basis, which matches all annual sale-related

revenues with all annual sale-related expenses. Appendix III also shows,

for information purposes, the payments to the states that are attributable

to each forest. The forests do not make payments to the states, rather,

these payments are made by Forest Service headquarters from the

National Forest Fund. National figures are presented in the body of the

report.

As requested, we provided 3 years of regional and forest-level data (fiscal

years 1995 through 1997), which would minimize the effects of

year-to-year anomalies at the forest level. In any 1 year, many factors may

affect the size of an individual forest’s timber program. For example, if a

large fire occurred within a forest, salvage sale amounts in a subsequent

year might be unusually high. Such sales might skew receipt totals for that

year. For the same reasons, however, care should be taken in interpreting

year-to-year differences.

We did not independently verify the reliability of the financial data

provided nor did we trace the data to the systems from which they came.

These systems were, in some cases, subject to audit procedures by the

Department of Agriculture’s Office of the Inspector General in connection

with the agency’s financial statement audits. For fiscal years 1995, 1996,

1997, and previous years, the Office of the Inspector General reported that

because of significant internal control weaknesses in various accounting

subsystems, the Forest Service’s accounting data were not reliable.

Despite these weaknesses, we used the data because they were the only

data available and are the data that the agency uses to manage its

programs.

Page 44 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix IV 

Objectives, Scope, and Methodology

Timber Sales Receipts To derive timber sale receipts, we used the Forest Service’s Statement

ASR-08, Gross Receipts by Class and County Based on National Forest

Acreage. This fiscal year statement, which is part of the cash-based

records that the Forest Service uses to make the 25-percent payment to

the states, shows receipts collected for each forest resource (such as

timber, grazing, or recreation) on a forest and county basis. Because our

work focused on the timber resource, we selected only timber receipts

from this statement. From the Forest Service’s Statement TPIR-01, Source

and Application of Funds Worksheet, we selected associated charges and

interest and penalties since the Forest Service includes these items as

timber receipts.

From the total receipts, we subtracted the receipts distributed for specific

purposes, including the amounts to the purchaser road credits account,

the Knutson-Vandenberg Fund, the Salvage Sale Fund, and the associated

charges account. (See app. I for a discussion of these funds and accounts.)

We also subtracted the payments to the states that, while not spent on the

timber program itself, is a direct result of the timber program. By law,

states are entitled to 25 percent of the gross receipts generated on national

forests located within their boundaries. We included the amount of

payments to the states but limited it to that amount calculated only on

timber-related receipts.

In addition, at the national level, we included receipts distributed to three

additional designated purposes—the Roads and Trails Fund, the Timber

Sales Pipeline Restoration Fund, and the recovery of the Forest Service’s

road-building costs (purchaser-elect roads). The remaining timber receipts

represent the amount of receipts to be deposited into the General Fund of

the U.S. Treasury. Because these three distributions are made at the

national level only, they are not reflected in the regional and forest

breakdowns shown in appendixes II and III.

Timber Sales Preparation

and Administration

Outlays

We obtained information on the Forest Service’s timber-related outlays

from its Statement TPIR-01, Source and Application of Funds Worksheet.

We included only those outlay categories directly related to timber sales.

While it takes about 3 to 8 years to prepare and offer a timber sale and

several years thereafter to complete a sale, we included only those

preparation and administration costs reported by the forests related to

each particular fiscal year. For example, we included the outlays for

preparing environmental documents associated with timber contracts,

Page 45 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix IV 

Objectives, Scope, and Methodology

administering the actual timber sales, and handling appeals. More

specifically, the outlay categories selected include the following:3

• Harvest administration.

• General administration—sales.

• Sale preparation.

• Analysis documentation.

• Appeals/litigation—sales.

• Transportation planning.

• Silvicultural examinations.

• Appeals/litigation—indirect

We excluded outlays related to long-term investment in the timber

program. For example, genetic tree improvement (improving the quality of

trees in the timber program) and timber stand improvement (improving

the quality of reforested areas a number of years later) are not directly

related to the outlays for preparing and administering timber sales. In

addition, we excluded outlays incurred by the Forest Service for such

purposes as brush disposal and cooperative road maintenance, which are

recovered through charges to timber purchasers. We have also excluded

most of the overall timber program indirect costs because the Forest

Service does not allocate indirect costs by specific category. We have

included indirect costs for “Appeals/litigation” because the Forest Service

tracks these costs separately. Because of these exclusions, our outlay

estimates for timber sales preparation and administration may be

conservative.

The one exception to excluding outlays covered by a receipt source

involves salvage sales outlays. Salvage sale preparation and administration

outlays are paid for by the Salvage Sale Fund. For annual reporting

purposes, however, the Forest Service does not report these outlays

separately. To be consistent with Forest Service reports, we have not

excluded salvage sale preparation and administration outlays from the

outlays of timber sales preparation and administration.

Recent Changes in the

Receipt Distribution

Process

To determine what changes have occurred in the timber sales receipt

distribution process since our last report, we interviewed Forest Service

timber program personnel as well as personnel from the fiscal area. We

gathered and analyzed laws and program guidance related to these

3

Our previous report also included outlay categories entitled “Other Resource Support” and “Timber

Planning” that, beginning in fiscal year 1995, were moved to the outlay categories

“Analysis/Documentation” and “Sale Preparation,” respectively.

Page 46 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix IV 

Objectives, Scope, and Methodology

changes. Finally, we discussed the changes with Forest Service officials to

determine how the changes have affected timber operations.

We conducted our work from June through October 1998 in accordance

with generally accepted government auditing standards.

Page 47 GAO/RCED-99-24 Distribution of Timber Sales Receipts
Appendix V 

Major Contributors to This Report

Energy, Resources,

and Science Issues

Jill Berman

June Foster

Linda Harmon

John Kalmar, Jr.

Office of the General

Counsel

Alan R. Kasdan

(141176) Page 48 GAO/RCED-99-24 Distribution of Timber Sales Receipts
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