GAO-06-731R Federal Assistance Program Is Making Progress 

United States Government Accountability Office

Washington, DC 20548 

July 5, 2006 

The Honorable Dave Camp 

Chairman 

Subcommittee on Select Revenue Measures 

Committee on Ways and Means 

House of Representatives 

Subject: Fish and Wildlife Service: Federal Assistance Program Is Making 

Progress in Addressing Previously Identified Concerns 

Dear Mr. Chairman: 

The U.S. Fish and Wildlife Service (Service), within the Department of the Interior, 

uses tax receipts from the sale of certain hunting, fishing, and boating equipment to 

fund the Wildlife and Sport Fish Restoration programs, which provide grants to state 

fish and wildlife management agencies to restore, conserve, manage, and enhance 

wildlife and sport fish resources. The Wildlife Restoration Program was established 

in 1938 following the passage of the Federal Aid in Wildlife Restoration Act, now 

referred to as the Pittman-Robertson Wildlife Restoration Act. The Sport Fish 

Restoration Program was established in 1950 by the Dingell-Johnson Sport Fish 

Restoration Act. Since their inception, according to the Service, these programs have 

provided more than $9.5 billion in grants to states and U.S. territories through fiscal 

year 2005. In 1999 and 2000, GAO identified several instances of mismanagement in 

these grant programs. Following GAO’s work, Congress and the Service acted to 

improve the programs. Enclosure I provides our April 2006 briefing to your 

Subcommittee containing relevant details about problems and corrective actions that 

the Service has taken since GAO’s last review in 2000. Enclosure II shows funding 

history for these two programs. 

In 1999 and 2000, GAO testified on the Service’s management and oversight of funds 

used to administer the Wildlife and the Sport Fish Restoration programs. These 

testimonies identified several instances of mismanagement of administrative funds. 

For example, in administering these programs, the Service did not have criteria for 

selecting some grant recipients, failed to provide adequate oversight of grantees, and 

did not maintain adequate grant files. In addition, GAO found that grant transactions 

could not be reconciled between regional and headquarter financial systems, 

resulting in millions of dollars in discrepancies. 

In response to our work and the work of others, Congress enacted the Wildlife and 

Sport Fish Restoration Programs Improvement Act (Improvement Act) in November
Page 2 GAO-06-731R Federal Assistance Program Is Making Progress 

2000. The Improvement Act amended the Pittman-Robertson Wildlife Restoration Act 

and the Dingell-Johnson Sport Fish Restoration Act by specifying, among other 

things, how administrative funds should be used and setting levels for how much the 

Service can spend on administration of the programs. Before the Improvement Act, 

the maximum amount of administrative funds that could be used for implementing 

the Wildlife and Sport Fish Restoration programs was calculated as a percentage of 

the total tax receipts for each program. On the basis of these calculations, in 2000, 

over $16 million was made available for administration of the Wildlife Restoration 

Program and about $15 million was made available for administration of the Sport 

Fish Restoration Program. Since the Improvement Act, funds for administrative costs 

were fixed in 2001 through 2003 and, thereafter, have been determined by a formula 

that limits the annual funds available for administrative activities. In fiscal year 2005, 

the Service spent about $8.6 million per program on administration—about one-half 

of what was previously spent. 

On April 27, 2006, we briefed members of your Subcommittee on the extent to which 

the Service has taken corrective action to address the problems that GAO previously 

identified. In general, as a result of GAO’s prior work and the Improvement Act in 

2000, the Service has made changes that have had lasting impacts on the management 

of these programs. The Service has invested significant effort to make program and 

policy changes to address the concerns that we raised in our previous testimonies 

and to implement the Improvement Act. For example, in response to GAO’s finding 

that the Service mismanaged grant programs, the Service terminated some programs 

and, for subsequent grant activity, has implemented new procedures for managing 

and auditing grants and maintaining grant files. To resolve problems involving 

reconciling grant transactions between regions and headquarters, the Service 

implemented improved financial systems and processes that include procedures for 

reconciling accounts across three national financial systems on a monthly basis. The 

regions no longer utilize separate tracking systems for their grants. 

While we found that the Service has implemented several new management policies 

and procedures aimed at addressing our previous concerns, a more definitive 

statement on the Service’s progress would require additional review. Such reviews 

are routinely required by the Improvement Act, which directs the Department of the 

Interior’s Office of Inspector General (OIG) to contract for biennial audits of the 

funds used to administer these programs. An audit of fiscal years 2001 and 2002 was 

completed and a report issued in 2005; the report did not identify any major 

weaknesses or concerns. Audits of subsequent years have not yet been done. Since 

we delivered our briefing to the Subcommittee, OIG officials stated that the OIG 

expects to solicit contract proposals for the audits of fiscal years 2003 and 2004 and 

fiscal years 2005 and 2006 in the summer of 2006. 

The enclosed briefing document provides relevant details about problems and 

corrective actions that the Service has taken since GAO’s last review in 2000 (see 

enc. I). We conducted our follow-up review in March and April, 2006, in accordance 

with generally accepted government auditing standards. However, we conducted 

only limited file reviews and field-testing to determine the implications of and 

compliance with the Service’s new policies. Additionally, due to the timing and 

nature of our review, we did not conduct a full reliability assessment of the data we 
Page 3 GAO-06-731R Federal Assistance Program Is Making Progress

used as background information. Consequently, the background data we present are 

of undetermined reliability. 

We provided Interior with a draft of this report for review and comment. Interior 

generally agreed with our findings and conclusions and provided editorial and

technical comments, which have been incorporated into this report as appropriate. 

Interior’s letter is contained in enclosure III. 

_________________________________________________________________________ 

As agreed with your office, unless you publicly announce the contents of this report 

earlier, we plan no further distribution until 7 days from the report date. At that time, 

we will make copies of this report available to interested parties upon request. This 

report will also be available on the GAO Web site at http://www.gao.gov. Should you 

or your staff have any questions, please contact me at (202) 512-3841 or 

Nazzaror@gao.gov. Contact points for our Offices of Congressional Relations and 

Public Affairs may be found on the last page of this report. Key contributors to this 

report were Wyatt R. Hundrup, Richard Johnson, Trish McClure, Alison O’Neill, and 

Becky Spithill. 

Sincerely yours, 

Robin M. Nazzaro 

Director, Natural Resources 

 and Environment 

Enclosures – 3 
Enclosure I 

Page 4 GAO-06-731R Federal Assistance Program Is Making Progress

Briefing for the House Committee on Ways and Means 
Enclosure I 

Page 5 GAO-06-731R Federal Assistance Program Is Making Progress
Enclosure I 

Page 6 GAO-06-731R Federal Assistance Program Is Making Progress
Enclosure I 

Page 7 GAO-06-731R Federal Assistance Program Is Making Progress
Enclosure I 

Page 8 GAO-06-731R Federal Assistance Program Is Making Progress

Enclosure I 

Page 8 GAO-06-731R Federal Assistance Program Is Making Progress
Enclosure I 

Page 9 GAO-06-731R Federal Assistance Program Is Making Progress
Enclosure II 

Page 10 GAO-06-731R Federal Assistance Program Is Making Progress 

Funding Distribution and History 

Figures 1 through 4 show the distribution of funding for fiscal year 2005 and the 

10-year distribution of funding for the Wildlife and Sport Fish Restoration programs. 

Tables 1 and 2 show the 6-year funding history by state and territory for each 

program. 

Figure 1: Wildlife Restoration Program Tax Receipts, Deductions, and 

Apportionment to States for Fiscal Year 2005 

Total Excise Tax Receipts 

Available for FY 2005

$238,807,000a

Firearm and Bow Hunter

 Education and Safety Grants

$8,000,000

Administration

$8,611,000 Available for State Apportionment 

$219,196,000

Multi-State Conservation 

Grant Program

$3,000,000

Sources: GAO analysis of Fish and Wildlife Service data and MapArt.

Note: As required by law, deductions from excise tax receipts are for specific programs and funding levels. Data are of 

undetermined reliability.

a

Total excise tax receipts available for fiscal year 2005 were collected in fiscal year 2004. 
Enclosure II 

Page 11 GAO-06-731R Federal Assistance Program Is Making Progress 

Figure 2: Wildlife Restoration Program 10-Year Distribution of Funding 

0

50

100

150

200

250

300

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Dollars in millions

Fiscal year

Source: GAO analysis of Fish and Wildlife Service data.

Other deductions

Administrative expenses

Apportionment to states

Note: As required by law, deductions from excise tax receipts are for specific programs and funding levels. Data are of 

undetermined reliability.
Enclosure II 

Page 12 GAO-06-731R Federal Assistance Program Is Making Progress

Figure 3: Sport Fish Restoration Program Tax Receipts, Deductions, and 

Apportionment to States for Fiscal Year 2005

Total Excise Tax Receipts 

Available for FY 2005

$460,752,000a

Available for State Apportionment

$273,005,978

Boat Safety 

Transfers to Coast Guard

$64,000,000

Army Corps of Engineers

Coastal Wetlands

$58,054,804

FWS Wetlands Grants

$24,880,630

FWS Clean Vessel Grants

$10,000,000

Recreation Vessel 

Access Grants

$8,000,000

FWS Outreach Grants

$10,000,000

Administration 

$8,611,000

Fishery Commissions 

and Boating Council 

$1,200,000

Multi-State Conservation 

Grant Program

 $3,000,000

Sources: GAO analysis of Fish and Wildlife Service data and MapArt.

Note: As required by law, deductions from excise tax receipts are for specific programs and funding levels. Data are of 

undetermined reliability.

a

Total excise tax receipts available for fiscal year 2005 were collected in fiscal year 2004 and include interest income. 
Enclosure II 

Page 13 GAO-06-731R Federal Assistance Program Is Making Progress

Figure 4: Sport Fish Restoration Program 10-Year Distribution of Funding 

0

100

200

300

400

500

Other deductions

Administrative expenses

Apportionment to states

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Fiscal year

Dollars in millions

Source: GAO analysis of Fish and Wildlife Service data.

Note: As required by law, deductions from excise tax receipts are for specific programs and funding levels. Data are of 

undetermined reliability. In commenting on a draft of this report, FWS provided new expenditure data for fiscal years 1996 

through 2000. We did not incorporate these new data because the source of the new information was unclear. The new data 

indicate that an additional $174 million was provided as other deductions during these 5 fiscal years. 
Enclosure II 

Page 14 GAO-06-731R Federal Assistance Program Is Making Progress

Table 1: Wildlife Restoration Grant Apportionments, by State and Territory 

 Apportionment, by fiscal year 

State/Territory 2000 2001 2002 2003 2004 2005 

Alabama $3,439,539 $3,601,969 $3,338,621 $3,775,702 $3,663,087 $4,230,076 

Alaska 8,490,358 8,751,120 7,983,824 9,107,484 8,648,602 9,923,370 

Arizona 4,587,789 4,932,992 4,537,407 5,197,532 4,869,205 5,683,004 

Arkansas 3,378,040 3,913,825 3,508,655 4,010,228 3,918,697 4,445,118 

California 6,610,254 6,861,214 6,381,792 7,238,447 6,910,043 8,006,336 

Colorado 5,165,816 5,207,659 4,825,397 5,531,602 4,877,855 5,984,357 

Connecticut 1,377,963 1,468,648 1,385,216 1,546,663 1,486,607 1,742,114 

Delaware 1,111,848 1,203,184 1,124,412 1,262,950 1,210,263 1,408,838 

Florida 3,232,040 3,646,351 3,444,451 3,746,895 3,668,356 4,237,774 

Georgia 4,120,378 4,373,894 4,054,000 4,581,108 4,464,492 5,165,236 

Hawaii 1,111,848 1,203,184 1,124,412 1,261,676 1,207,123 1,405,099 

Idaho 3,646,285 3,846,148 3,541,687 4,040,511 3,843,730 4,472,883 

Illinois 3,923,826 4,176,153 3,891,429 4,400,997 4,139,926 4,857,279 

Indiana 3,381,836 3,605,023 3,359,147 3,757,147 3,552,883 3,890,090 

Iowa 3,359,777 3,442,710 3,156,428 3,581,704 3,330,454 4,037,099 

Kansas 3,476,842 3,593,167 3,313,795 3,788,859 3,492,399 4,130,946 

Kentucky 3,117,435 3,273,091 3,381,505 3,808,948 3,734,407 4,312,192 

Louisiana 3,269,918 3,568,107 3,364,827 3,707,453 3,516,769 4,108,925 

Maine 2,147,882 2,350,572 2,184,511 2,432,581 2,219,066 2,675,874 

Maryland 1,812,194 1,972,019 1,871,410 2,066,965 1,987,636 2,313,018 

Massachusetts 1,695,875 1,932,233 1,845,915 2,044,342 1,974,680 2,330,650 

Michigan 7,349,739 7,449,040 6,765,477 7,681,412 7,181,520 8,459,634 

Minnesota 5,633,453 6,097,120 5,742,969 6,431,784 6,203,606 7,168,249 

Mississippi 2,953,368 3,080,128 2,881,368 3,249,737 3,106,745 3,559,917 

Missouri 5,277,938 5,492,864 5,096,878 5,771,360 5,819,002 6,739,125 

Montana 5,549,783 5,655,957 5,168,420 5,958,327 5,372,411 6,266,710 

Nebraska 3,246,130 3,345,022 3,082,306 3,518,769 3,284,266 3,829,113 

Nevada 3,466,997 3,544,874 3,268,082 3,743,824 3,559,648 4,097,241 

New Hampshire 1,111,848 1,203,184 1,132,469 1,264,195 1,214,574 1,442,482 

New Jersey 1,695,875 1,932,233 1,845,915 2,044,342 1,974,680 2,330,650 

New Mexico 4,071,712 4,050,224 3,742,975 4,311,943 4,144,775 4,761,855 

New York 5,724,950 6,053,350 5,589,079 6,308,475 6,055,166 6,783,004 

North Carolina 4,153,277 4,624,376 4,370,014 4,829,534 4,920,679 5,642,181 

North Dakota 2,675,781 2,835,946 2,637,355 2,991,063 2,990,057 3,444,052 

Ohio 4,735,241 4,884,420 4,224,146 4,762,854 4,333,368 5,264,165 

Oklahoma 3,822,713 4,017,969 3,747,979 4,260,451 4,314,718 4,909,020 

Oregon 4,652,858 4,821,928 4,420,486 5,018,969 4,686,460 5,481,960 

Pennsylvania 7,602,373 7,872,824 7,047,696 8,020,697 7,837,535 8,980,993 

Rhode Island 1,111,848 1,203,184 1,121,404 1,261,676 1,207,123 1,405,099 

South Carolina 2,548,294 2,941,280 2,718,409 3,065,525 3,174,258 2,283,303 

South Dakota 3,242,050 3,450,120 3,272,354 3,737,508 3,440,127 4,015,800 

Tennessee 5,009,785 5,365,733 5,086,100 5,737,747 5,988,969 7,081,929 

Texas 9,074,385 9,480,169 8,678,260 9,877,416 9,384,766 10,811,538 

Utah 3,468,682 3,608,553 3,223,740 3,641,119 3,383,152 3,919,659 

Vermont 1,111,848 1,203,184 1,134,399 1,264,743 1,207,123 1,405,099 

Virginia 3,597,711 3,823,905 3,556,051 3,999,477 3,845,157 4,458,365 

Washington 3,712,928 4,377,113 3,730,039 4,199,436 3,930,101 4,588,931 

West Virginia 2,360,616 2,466,988 2,275,728 2,569,388 2,537,373 2,831,168 

Wisconsin 6,121,170 6,500,414 6,049,578 6,827,601 6,041,016 7,356,101 

Wyoming 3,519,514 3,618,365 3,355,160 3,860,291 3,577,733 4,193,838 

Puerto Rico 819,834 899,413 819,525 935,564 887,305 1,019,450 

American Samoa 321,947 340,307 313,426 355,336 338,410 391,236 

Guam 321,947 340,307 313,426 355,336 339,456 391,236 

N. Mariana Islands 321,947 340,307 313,426 355,336 338,410 391,236 

U.S. Virgin Islands 321,947 340,307 313,426 355,336 338,410 391,236 

Total $193,168,232 $204,184,371 $188,656,906 $213,456,365 $203,674,379 $235,455,853 

Source: Fish and Wildlife Service. 

Note: Data are of undetermined reliability.
Enclosure II 

Page 15 GAO-06-731R Federal Assistance Program Is Making Progress 

Table 2: Sport Fish Restoration Grant Apportionments, by State and 

Territory

 Apportionment, by fiscal year 

State/Territory 2000 2001 2002 2003 2004 2005

Alabama $3,607,904 $3,578,395 $4,344,357 $3,935,974 $3,977,923 $4,422,820

Alaska 2,046,916 12,042,643 14,639,339 13,262,060 13,026,348 14,734,564 

Arizona 5,089,496 5,104,112 6,168,683 5,588,641 5,080,854 5,922,343 

Arkansas 3,968,596 4,608,841 5,492,558 4,976,294 4,888,967 5,642,674 

California 12,046,916 12,042,643 14,639,339 13,262,060 13,026,348 14,734,564 

Colorado 6,198,128 6,076,753 7,470,694 6,768,365 6,130,350 7,008,028 

Connecticut 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Delaware 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

District of Columbia 803,128 802,843 975,956 884,137 868,423 982,304 

Florida 6,221,202 6,786,688 8,192,210 7,422,277 6,709,079 7,914,307 

Georgia 4,331,459 4,430,864 5,490,619 4,974,514 5,006,056 5,633,286 

Hawaii 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913

Idaho 4,114,980 4,184,546 5,054,689 4,579,437 4,346,375 5,001,608 

Illinois 4,963,612 4,846,195 5,890,316 5,336,662 5,348,978 5,892,633 

Indiana 3,820,091 3,640,742 4,509,106 4,085,311 3,956,407 4,043,934 

Iowa 3,318,153 3,235,203 3,976,820 3,602,952 3,547,516 4,232,551 

Kansas 3,666,601 3,583,933 4,343,909 3,919,441 3,787,002 4,262,230 

Kentucky 3,486,222 3,544,162 4,620,993 4,186,668 3,998,491 4,629,054 

Louisiana 4,103,273 4,161,257 5,216,669 4,726,339 4,095,828 5,200,984 

Maine 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Maryland 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Massachusetts 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Michigan 8,544,705 8,295,510 9,875,162 8,946,956 8,756,422 9,945,909 

Minnesota 8,928,236 9,006,160 11,109,195 10,065,088 9,839,478 11,165,735 

Mississippi 3,100,738 3,107,013 3,802,970 3,445,468 3,255,720 3,650,051 

Missouri 5,962,844 5,790,174 7,026,778 6,366,300 6,119,893 7,134,020 

Montana 5,579,059 5,582,909 6,841,449 6,198,060 6,107,345 7,019,722 

Nebraska 3,014,134 3,000,164 3,690,052 3,343,038 3,213,424 3,630,946 

Nevada 3,698,911 3,727,333 4,517,158 4,092,296 3,895,507 4,414,267 

New Hampshire 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

New Jersey 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

New Mexico 4,372,502 4,253,966 5,256,713 4,762,323 4,654,679 5,132,285 

New York 6,064,107 5,984,692 7,265,735 6,582,873 6,630,580 7,396,138 

North Carolina 3,813,798 4,213,868 5,156,759 4,672,046 5,137,132 5,494,411 

North Dakota 2,517,005 2,570,530 3,184,494 2,885,004 2,934,801 3,278,612 

Ohio 6,254,392 6,236,489 6,510,566 5,898,692 6,014,871 6,878,971 

Oklahoma 4,694,058 4,642,549 5,723,808 5,185,748 5,074,677 5,623,487 

Oregon 5,496,382 5,427,038 6,693,758 6,064,454 6,374,666 7,087,755 

Pennsylvania 6,046,806 5,948,640 7,269,800 6,586,588 6,628,025 7,489,335 

Rhode Island 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

South Carolina 3,097,296 3,023,568 3,584,458 3,247,558 3,513,295 3,702,853 

South Dakota 3,087,681 3,129,186 3,652,826 3,309,311 3,335,006 3,699,812 

Tennessee 5,408,189 5,487,737 6,613,433 5,991,907 5,969,718 7,029,132 

Texas 12,046,916 12,042,643 14,639,339 13,262,060 13,026,348 14,734,564 

Utah 4,352,260 4,252,849 5,171,677 4,685,429 4,463,918 4,899,623 

Vermont 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Virginia 3,928,056 3,853,428 4,764,894 4,317,041 4,325,856 4,731,149 

Washington 4,908,353 4,883,821 6,054,262 5,485,151 5,808,249 6,124,056 

West Virginia 2,409,383 2,408,529 2,927,868 2,652,413 2,605,270 2,946,913 

Wisconsin 8,239,191 7,679,996 9,500,662 8,607,773 8,909,312 10,191,022 

Wyoming 3,870,908 3,929,060 4,816,330 4,363,414 4,006,180 4,687,372 

Puerto Rico 2,409,383 2,408,529 2,927,868 2,652,413 2,605,269 2,946,912 

American Samoa 803,128 802,843 975,956 884,137 868,423 982,304 

Guam 803,128 802,843 975,956 884,137 868,423 982,304 

N. Mariana Islands 803,128 802,843 975,956 884,137 868,423 982,304 

U.S. Virgin Islands 803,128 802,843 975,956 884,137 868,423 982,304 

Total $240,938,312 $240,852,863 $292,786,775 $265,241,214 $260,526,978 $294,691,282 

Source: Fish and Wildlife Service. 

Note: Data are of undetermined reliability.
Enclosure III 

Page 16 GAO-06-731R Federal Assistance Program Is Making Progress 

Comments from the Department of the Interior 

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