I
105TH CONGRESS
2D SESSION
H. R. 4149
To reduce overhead and other costs associated with the management of
the National Forest System, to improve the fiscal accountability of the
Forest Service through an improved financial accounting system, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1998
Mr. SMITH of Oregon (for himself, Mr. COMBEST, Mr. HERGER, and Mr. TAY-
LOR of North Carolina) introduced the following bill; which was referred
to the Committee on Agriculture
A BILL
To reduce overhead and other costs associated with the man-
agement of the National Forest System, to improve the
fiscal accountability of the Forest Service through an
improved financial accounting system, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Forest Service Cost Reduction and Fiscal Accountability
Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. All Resources Reporting System.
Sec. 5. Limitations on costs charged to off-budget funds.
Sec. 6. Disclosure of indirect expenditures and general administration costs in
annual budget requests.
Sec. 7. Cost reduction strategic plan.
Sec. 8. Audit requirements.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Over the last several years, indirect expendi-
tures and other overhead costs within the Forest
Service have increased substantially, both in total
dollar amounts and as a percentage of total expendi-
tures. Rising indirect expenditures and other over-
head costs have hindered the ability of the Forest
Service to carry out its core mission of managing the
National Forest System.
(2) According to the Comptroller General, indi-
rect expenditures associated with Forest Service
management of five off-budget funds established by
law to provide funds for site restoration, reforest-
ation, habitat improvement, brush disposal and other
critical management activities has increased by 80
percent and now exceeds 27 percent of the total an-
nual expenditures from these off-budget funds. Con-
siderable debate continues regarding whether such
expenditures exceed spending authority provided by
Congress.
(3) Forest Service data show that annual gen-
eral administration costs associated with the Federal
timber sale program increased by 46 percent be-
tween 1992 and 1996 and now comprise 31 percent
of the total costs of the program. Such data show
that annual general administration costs exceed the
total annual costs of all of the following combined:
(A) Environmental analysis.
(B) Appeals and litigation.
(C) Road design, construction, and mainte-
nance.
(D) Brush disposal.
(E) Reforestation and other site improve-
ments.
(F) Transportation planning.
(G) Silvicultural examinations.
(4) The Forest Service does not presently have
an adequate financial accounting system in place to
identify and manage the indirect and total expendi-
tures associated with the programs it administers.
The lack of such a system, and accompanying safe-
guards to prevent inappropriate use of appropriated
funds and off-budget funds, may be contributing
substantially to declines in the goods and services
the Forest Service is able to provide to the American
public and other users of the National Forest Sys-
tem.
(5) The Forest Service is in need of a com-
prehensive strategy for identifying and reducing,
where appropriate, indirect and total expenditures
associated with management of the National Forest
System. Such a strategy must include clear, tangible
objectives and performance measures that will make
it possible to measure agency performance and iden-
tify results.
(6) Any comprehensive strategy ultimately
adopted by the Forest Service to better manage indi-
rect and total expenditures associated with manage-
ment of the National Forest System must be de-
signed so as to maintain or increase the goods and
services provided to the American public and other
users of the National Forest System as a result of
its implementation.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) BUDGET REQUEST.—The term ‘‘budget re-
quest’’ means the Forest Service budget justification
documents submitted to the Committee on Appro-