priations of the House of Representatives and the
Senate in support of the President’s budget for a
fiscal year submitted to Congress pursuant to sec-
tion 1105 of title 31, United States Code.
(2) GENERAL
ADMINISTRATION.—The term
‘‘general administration’’ means amounts appro-
priated for general line management, administrative
support, and common services, as identified in the
Forest Service budget request.
(3) INDIRECT EXPENDITURES.—The term ‘‘in-
direct expenditures’’ means indirect support activi-
ties, as defined in the Forest Service Handbook and
other expenditures, including salary, travel, training
and vehicle use, that cannot, in a feasible manner,
be specifically identified with a single project, includ-
ing the following:
(A) Expenditures related to line officers,
including district rangers, forest supervisors, re-
gional foresters, and Washington Office posi-
tions, and their support staff.
(B) Program support expenditures to co-
ordinate, manage, and execute programs, busi-
ness activities, community involvement, and
other similar activities.
(C) Nonpersonnel expenditures associated
with providing space and working environments
for employees, including rentals, utilities, com-
munications, radio, office and computer equip-
ment, mail and postage, and office supplies and
forms.
(4) OFF-BUDGET FUND.—The term ‘‘off-budget
fund’’ means a trust fund or permanent appropria-
tion administered by the Forest Service, including
the following:
(A) The brush disposal fund established
under the twenty-first paragraph under the
heading ‘‘FOREST SERVICE’’ in the Act of
August 11, 1916 (39 Stat. 462; 16 U.S.C.
490).
(B) The cooperative work–other fund es-
tablished under the penultimate paragraph
under the heading ‘‘FOREST SERVICE’’ in
the Act of June 30, 1914 (38 Stat. 430; 16
U.S.C. 498).
(C) Knutson-Vandenberg fund established
under section 3 of the Act of June 9, 1930
(commonly known as the Knutson-Vandenberg
Act; 16 U.S.C. 576b).
(D) The reforestation trust fund estab-
lished under section 303(d) of Public Law 96–
451 (16 U.S.C. 1606a).
(E) The salvage sale fund established
under section 14(h) of the National Forest
Management Act of 1976 (16 U.S.C. 472a(h)).
(F) The roads and trails fund established
under the fourteenth paragraph under the
heading ‘‘FOREST SERVICE’’ of the Act of
March 4, 1913 (37 Stat. 843; 16 U.S.C. 501).
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture, acting through the
Chief of the Forest Service.
SEC. 4. ALL RESOURCES REPORTING SYSTEM.
(a) ACCOUNTING SYSTEM REQUIRED.—
(1) SCHEDULE
FOR
IMPLEMENTATION.—Not
later than 180 days after the date of the enactment
of this Act, the Secretary shall prepare a schedule
for implementation of an accounting system (to be
known as the ‘‘All Resources Reporting System’’) to
account for the costs and revenues associated with
the programs administered by the Forest Service.
The Secretary shall include the schedule in the stra-
tegic plan required under section 7.
(2) IMPLEMENTATION.—The All Resources Re-
porting System shall be fully implemented for all of
the programs identified under subsection (b) begin-
ning no later than the first day of the second full
fiscal year following the date of the enactment of
this Act.
(b) REQUIRED PROGRAMS.—The All Resources Re-
porting System shall include, at a minimum, the following
program areas:
(1) Land management planning, inventorying,
and monitoring.
(2) Recreation use.
(3) Rangeland management.
(4) Commercial timber management.
(5) Forestland vegetation management.
(6) Soil, water, and air management.
(7) Minerals and geology management.
(8) Wildlife and fisheries habitat management.
(9) Land ownership management.
(10) Infrastructure management.
(11) Law enforcement operations.
(12) State and private forestry.
(13) Forest and rangeland research.
(c) COST ALLOCATIONS.—The All Resources Report-
ing System shall allocate certain costs as follows:
(1) The costs of the commercial timber manage-
ment program shall consist of the costs identified
with the timber commodity component of the Fed-
eral timber sale program, as contained in the Forest
Management Program Annual Report.
(2) The costs of the forest land vegetation and
wildlife and fisheries habitat management program
shall include the costs of the forest stewardship and
personal use components of the Federal timber sale
program, as contained in the Forest Management
Program Annual Report. Such costs shall be divided,
as appropriate, between the two programs.
(d) IDENTIFICATION OF INDIRECT EXPENDITURES
AND GENERAL ADMINISTRATION COSTS.—The All Re-
sources Reporting System shall clearly identify the indi-
rect expenditures and general administration costs
charged or allocated annually to each program.
(e) ADMINISTRATIVE UNITS.—The All Resources Re-
porting System shall include a separate report for each
administrative unit of the National Forest System, for
State and private forestry, and for research.
(f) COMPLIANCE WITH GENERALLY ACCEPTED AC-
COUNTING PRINCIPLES.—The Forest Service shall ensure
that the All Resources Reporting System complies with
generally accepted accounting principles.
SEC. 5. LIMITATIONS ON COSTS CHARGED TO OFF-BUDGET
FUNDS.
(a) ANNUAL PERCENTAGE LIMITATION.—Not later
than 90 days after the date of the enactment of this Act,
the Secretary shall cap total annual indirect expenditures
from each of the off-budget funds at 20 percent of the
total expenditures from each fund.
(b) ELIMINATION OF INDIRECT EXPENDITURES.—
Not later than 180 days after the date of the enactment
of this Act, the Secretary shall prepare a schedule for
eliminating indirect expenditures from each off-budget
fund by the end of the second full fiscal year following
the date of the enactment of this Act. To ensure elimi-
nation of such indirect expenditures by the end of such
second full fiscal year, the schedule shall reduce indirect
expenditures to at least 10 percent of total annual expend-
itures from each off-budget fund beginning on the first
day of the second full fiscal year. The Secretary shall in-
clude the schedule in the strategic plan required under sec-
tion 7.
SEC. 6. DISCLOSURE OF INDIRECT EXPENDITURES AND
GENERAL ADMINISTRATION COSTS IN AN-
NUAL BUDGET REQUESTS.
The Secretary shall plainly disclose for each budget
line item, expanded budget line item, or program identified
in each annual budget request the following information:
(1) The total amount of indirect expenditures
and general administration costs that will be
charged or allocated to the line item, expanded line
item, or program during the applicable fiscal year,
expressed both in total dollars and as a percentage
of the total line item, expanded line item, or pro-
gram.
(2) The total amount of indirect expenditures
and general administration costs charged or allo-
cated to the line item, expanded line item, or pro-
gram for each of the preceding three fiscal years, ex-
pressed both in total dollars and a percentage of the
total line item, expanded line item, or program.
SEC. 7. COST REDUCTION STRATEGIC PLAN.
(a) STRATEGIC PLAN REQUIRED.—Not later than
180 days after the date of the enactment of this Act, the
Secretary shall prepare and submit to Congress a five-year
strategic plan to identify and reduce, where appropriate,
indirect expenditures and other costs associated with the
programs identified in section 4(b) while simultaneously
increasing the goods and services provided by such pro-
grams through the National Forest System.
(b) ELEMENTS OF STRATEGIC PLAN.—The strategic
plan shall include, at a minimum, the following elements:
(1) A description and schedule for full imple-
mentation of the All Resources Reporting System.
(2) A schedule for eliminating indirect expendi-
tures from off-budget funds pursuant to section 5.
(3) A method for identifying annually the direct
and indirect expenditures (expressed both in total
dollars and as a percentage of total program expend-
itures) charged or allocated to each program by the
Washington, regional, forest, and ranger district of-
fices.
(4) A framework, including specific instructions
to line officers and other decision makers, for estab-
lishing and achieving a five-year goal for reducing,
as appropriate, the indirect expenditures and total
expenditures charged to each program by the Wash-
ington, regional, forest, and ranger district offices
while maintaining or increasing the goods and serv-
ices provided by such programs through the Na-
tional Forest System.
(5) A plan to improve the cost-effectiveness of
program and project planning and implementation
through increased private-sector contracting.
(6) Annual, output-based incentives for line of-
ficers and other decision-makers to meet the sched-
ules and achieve the objectives established under this
subsection.
(c) CONSULTATION.—The Secretary shall prepare the
strategic plan in consultation with the Comptroller Gen-
eral and the Inspector General of the Department of Agri-
culture.
(d) RESULTS OF IMPLEMENTATION.—The Secretary
shall include an annual review of the results of the imple-
mentation of the strategic plan as an addendum to the
annual budget request. The annual review may also be in-
cluded in the annual performance plan prepared pursuant
to the provisions of the Government Performance and Re-
sults Act of 1993 (Public Law 103–62; 107 Stat. 285).
The addendum shall include a description of the following:
(1) Modifications in the implementation of the
strategic plan that occurred during the course of the
fiscal year and the impact of the modifications.
(2) Changes to the definition of or method of
accounting for direct and indirect expenditures and
general administration costs that occurred during
the previous fiscal year.
(3) Private contracting demonstration projects
commenced under subsection (e) and the results of
any such projects that are completed.
(e) DEMONSTRATION
OF
PRIVATE-SECTOR
CON-
TRACTING.—For purposes of the implementation of the
element of the strategic plan described in subsection
(b)(5), and notwithstanding any other provision of law, the
Secretary may conduct demonstration projects to test the
cost-effectiveness of using private contracting for plan-
ning, programming, project implementation, and other ac-
tivities of the Forest Service that do not constitute deci-
sion-making.
SEC. 8. AUDIT REQUIREMENTS.
(a) ANNUAL EVALUATIONS REQUIRED.—The Comp-
troller General shall submit to Congress an annual evalua-
tion assessing the effectiveness of the implementation of
the strategic plan required under section 7. The evaluation
for a year shall be submitted as soon as practicable after
the submission of the Forest Service budget request for
the next year.
(b) FIVE-YEAR AUDIT REQUIRED.—At the conclu-
sion of the fifth full fiscal year following the date of the
enactment of this Act, the Comptroller General shall con-
duct a comprehensive audit of the implementation of the
strategic plan required under section 7. Such audit shall
include an analysis of the following:
(1) The trends in indirect and total expendi-
tures charged to each program by the Washington,
regional, forest, and ranger district offices.
(2) A description of the effectiveness of the im-
plementation of the strategic plan, or any modifica-
tions thereto, on the management of indirect expend-
itures and total expenditures charged to each pro-
gram by the Washington, regional, forest, and rang-
er district offices.
(3) Recommendations to further improve the
management of indirect and total expenditures
charged to each program by the Washington, re-
gional, forest, and ranger district offices.
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