themselves of this type of training and apply what is learned to application redesign efforts for the future. Question: What is the total amount available for ADP training in FY 1991? Answer: The IRM Division has budgeted $19,500 for ADP training in FY 1991. Question: How much is requested for FY 1992? Answer: The proposed budget for ADP training in FY 1992 is $19,500. Question: Why do you need $50,000 for an additional FTE to support financial audits? Answer: The Chief Financial Officer's (CFO) Act of 1990 requires that the MMS, as a commercial function, have their financial statements audited on an annual basis starting in FY 1992. This will require that MMS consolidate the administrative financial statements with the financial statements of the Royalty Management Program (RMP). The complex nature of the program will require the administrative staff to work with the RMP staff to review and analyze procedures for recording Royalty Management financial data to ensure consolidated financial statements are prepared annually by March 31, 1992, in advance of the audit. The FTE will also support the coordination of the audit engagement with both headquarters and the RMP. In addition, the FTE will work closely with the Department in the consolidation of the MMS's financial statements with the other Interior bureau's statements. Question: Isn't the Inspector General's Office responsible for conducting these audits? Answer: The CFO Act of 1990 calls for the Inspector General (IG) or an independent external auditor, as determined by the IG of the agency, to perform the audit. Our IG will contract with an independent accounting firm to perform the audits of Interior bureaus. As previously mentioned, the requested MMS resources will support the coordination of the audit with the independent auditor, MMS headquarters, and the Royalty Management Program located in the Denver Federal Center. Question: Why can't MMS's support role be accommodated within existing personnel? Answer: The annual auditing of financial statements is a new responsibility that will require a full-time position. The position will require an understanding of the systems and data flow and the necessary audit coordination. The MMS cannot absorb this important additional responsibility within existing personnel. Arts and Artifacts Question: What role will MMS play in control and protection of artwork and artifacts? Answer: As a result of a Secretarial initiative, the MMS, along with the other bureaus in the Department, will be required to develop; implement; and maintain an accountability, control, and protection program for artwork, artifacts, and other museum properties in its possession. The MMS will (1) participate in an inter-bureau task force convened to develop policies and procedures for a Departmentwide program and (2) be carrying out bureauspecific activities. With the requested funding in FY 1992, MMS will be able to: provide staff to participate in the Departmentwide effort led by the National Park Service (NPS) and the Office of Acquisition and Property Management (PAM) to develop Departmentwide procedures; coordinate and direct bureau comprehensive internal assessments concerning the status of bureau collections and the capability of existing resources; initiate an ongoing bureau-wide program to consist of identifying and cataloging museum-type properties, implementing Departmentwide guidance, and establishing bureau-specific guidance, as appropriate; provide support for a central staff capability within NPS to lead the development of Departmentwide policies, procedures and guidance for strengthening management of museum-type properties, including guidance for MMS to evaluate and plan for the ongoing management of our museum-type collections; and conduct bureau-level Property Management Reviews (PMRS) with The scope of the MMS program will include core samples, geologic rock samples, and industry equipment (i.e., drill bits) as well as fine art (i.e., pictures, slides, and models) of significant monetary, cultural, or scientific value in our possession. The development and implementation of this program throughout the Department and in MMS is expected to take place over three fiscal years starting in FY 1991 and concluding in FY 1993. Question: Why do you need $106,000 and 1 FTE to support this program? Personnel compensation and benefits for a GS-12 to oversee program Travel and transportation to provide first hand guidance and training to field personnel and to support inspections of field implementation of the program ($24,000) Printing of information materials to instruct staff in the Support for central staff capability within the National Park Supplies and equipment to setup and operate the program ($14,000) General Support Services Question: Last year the Committee reluctantly agreed to fund $71,000 for the MMS contribution to the "Take Pride in America" initiative. It seems the MMS had been taxed by the Department to pay for this initiative in the past. This year you propose a $19,000 increase for this initiative. What does MMS get for its "contribution"? Answer: All Interior bureaus contribute to the Department's Take Pride in American program. Take Pride in America is a national pubic awareness campaign designed to encourage wise use of the lands and resources shared by all Americans. Many Federal, State, local and private sector organizations are involved in this program. The focus of the campaign is at the grassroots level. The campaign provides a unifying theme for thousands of local and individual activities. Through national public service announcements, publicprivate partnerships, a national awards program and other activities, the campaign seeks to provide a boost for Stewardship action and awareness efforts around the nation. Question: Why is the cost of this initiative increasing by 27 percent? Answer: The Department estimates that MMS's share of the total cost of the FY 1992 national public awareness campaign will be $89,000. This is $19,000 more than the $71,000 that MMS paid in FY 1991. Question: With all of the program shortfalls in MMS, as evidenced by your much higher budget requests to the Department and to OMB, how can you justify increases in this and other initiatives which divert funds from needed program improvements? Answer: The Department has primary responsibility of the stewardship of public lands. The Take Pride in America program is a national public awareness campaign designed to encourage wise use of the lands and resouces shared by all Americans. Any effort to bring public attention to this worthy cause is likely to result in a more successful program. Payments to States Question: This Committee and the authorizing Committee in the House have consistently disagreed with using the Payments to States account to pay for rewards, interest on late payments, and interest on refunds. This year MMS has repackaged the same old proposal by asking to change the Payments to States account to a "Mineral Leasing and Associated Payments" account. How is this year's proposal, substantively, any different from previous proposals? Answer: The purpose of the proposed appropriation title change is not to repackage old requests. Whether or not the Committee acts on the requested proposals, MMS would like to change the old title, Payments to States from Receipts under Mineral Leasing Act. The appropriation includes receipts other than those collected under the Mineral Leasing Act. MMS believes that the change will clarify that receipts collected under the Military Acquired Lands Act, the Geothermal Steam Act of 1970, State Select Lands under the School Land Indemnity Act of 1889, as well as those collected on Forest Service public domain lands, are shared with States through this account. This year's proposal includes an augmentation to the current Federal Oil and Gas Royalty Management Act (FOGRMA). The Department proposes to extend FOGRMA rewards to individuals who provide information resulting in additional collections from oil and gas Indian leases and from non-oil and gas Federal and Indian leases. This addresses the concerns of the Senate Select Committee on Indian Affairs for improved Indian services and more equitable treatment. MMS believes that the deduction of the costs associated with mineral leasing on lands where revenues are shared with the states is now consistent with the new Congressional policy to share only the "net" receipts with the states. MMS has again included proposals to fund interest on late disbursements and interest to companies on successfully appealed bills. MMS believes these to be worthy requests and appropriately requested under this indefinite account because amounts required cannot be accurately forecast in advance. In FY 1990, MMS staff worked very hard to maintain an excellent disbursement record. As a result, only $177,000 in late disbursement interest was paid. This payment represents less than one-tenth of one percent of the total disbursements made to States in FY 1990. Efforts to reduce interest payments further have reached the point of diminishing returns. While supplementals have been approved in prior years to fund the cost of interest payments due to States for late disbursements, these supplements were only available for a single fiscal year. A permanent increase in the Leasing and Royalty Management appropriation for the purpose of interest payments has never been provided. As a result, the Royalty Management Program must, on an annual basis, rearrange its funding needs and priorities, deferring planned activities, to provide for these interest payments. The impact of this approach is magnified due to the difficulty of projecting interest payment requirements in any year. However, failure to make interest payments as soon as they are required would result in the accrual of additional interest costs for the Federal Government. The request to pay companies interest on successfully appealed bills is included under this appropriation because of its indefinite, difficult to estimate nature. As a matter of fairness, companies should be compensated for the time their funds were unavailable for their use. This request is particularly important to smaller companies for which the bonding procedure is impracticable due to the small amounts involved. Again, if requested under the LARM account, only a fixed amount would be available. An insufficiency in the appropriated amount would entail delayed payments at a greater cost to the Government due to accrued interest. Question: What new evidence can you present this year to make this proposal any more acceptable than in the past? Answer: This year's proposal responds to the States' interest in extending the rewards provision of the Federal Oil and Gas Royalty Management Act to non-oil and gas leases. The proposal also responds to the Senate Select Committee on Indian Affairs concerns for improved Indian services. Also, in FY 1990, MMS continued its excellent disbursement rate paying only $177,000 in late disbursement interest. From FY 1985 through 1990, annual interest payments have declined from $1,051,038 to $177,000, less than one tenth of one percent of the total annual States payments. This represents a steady level of interest payments which would be difficult, if not impossible, to reduce further. Question: To what extent do you expect this Committee to act on your proposal absent authorizing legislation? Answer: MMS staff have fully informed both authorizing and appropriation committees as to the nature and need for the requests. MMS hopes the appropriation committee would act on these needed proposals in much the same manner they have acted on MMS's request for refunds on behalf of Indian allottees in FY 1990 and 1991. Refunds to Indian Allottee Leases You request $10,000 to make refunds for overpayment on certain Indian leases where current royalty revenues are too small or nonexistent to provide for timely recoupment. Question: Was the $8,000 provided in the leasing and royalty management account in FY 1991 expended for this purpose? Please provide details on how these funds were distributed. Answer: The entire $8,000 provided by the FY 1991 budget was paid out for these types of Indian allottee lease refunds as follows: |