Valles Caldera: Trust Has Made Some Progress, but Needs to Do
More to Meet Statutory Goals (16-NOV-05, GAO-06-98).
In 2000, Congress authorized the purchase of the Valles Caldera
(the Caldera) in north-central New Mexico. The Valles Caldera
Trust (Trust), a wholly owned government corporation, is to
become financially self-sustaining and to manage the Caldera for
multiple purposes while sustaining the land's valuable natural
resources. GAO was mandated to assess the progress the Trust is
making in meeting its statutory goals.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-98
ACCNO: A41537
TITLE: Valles Caldera: Trust Has Made Some Progress, but Needs
to Do More to Meet Statutory Goals
DATE: 11/16/2005
SUBJECT: Conservation
Federal corporations
Federal property management
Internal controls
Land management
Natural resources
Performance management
Program management
Risk management
Strategic planning
Performance plans
Policies and procedures
Valles Caldera (NM)
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GAO-06-98
* Report to Congressional Committees
* November 2005
* VALLES CALDERA
* Trust Has Made Some Progress, but Needs to Do More to Meet
Statutory Goals
* Highlights
* Contents
* Results in Brief
* Background
* The Trust Is Making Progress toward Preserving and Protecting the
Caldera and Providing Recreation and Sustained Yield Management
* The Board Established the Trust Organization
* Infrastructure Surveyed and Potential Solutions to Problems
Identified
* The Trust Implemented Interim Grazing
* The Trust Has Established Interim Recreation Programs
* The Trust Set Up a Science- Based Adaptive Management
Framework
* The Trust Has Much Work to Do to Meet Its Statutory Goals
* The Trust Has Not Developed Strategic and Performance Plans
with Measurable Goals and Objectives
* The Trust Has Not Addressed Risks Potentially Posed by Fire
and Legal Liabilities
* The Trust Has Not Developed Required Mechanisms for
Monitoring Progress in Meeting Financial and Other Goals
* Turnover of Board Members and Staff Contributed to Delays in
Implementing Components of a More Effective Management
Control Program Needed to Meet Statutory Goals
* Conclusions
* Recommendations for Executive Action
* Trust Comments and Our Evaluation
* Scope and Methodology
* Comments from the Valles Caldera Trust
* Guiding Principles of the Valles Caldera Trust
* GAO Contact and Staff Acknowledgments
Report to Congressional Committees
November 2005
VALLES CALDERA
Trust Has Made Some Progress, but Needs to Do More to Meet Statutory Goals
Contents
Tables
Figures
November 16, 2005 Letter
Congressional Committees
The Valles Caldera Preservation Act (Preservation Act) of 2000 authorized
the federal government's purchase of about 89,000 acres of privately owned
land in north-central New Mexico, known as the Baca Ranch.1 The federal
government acquired this property, referred to as the Valles Caldera
(Caldera) for about $97 million. Scientifically, the Caldera has served as
a model for geological studies of this and other volcanic areas around the
world. Culturally and historically, the Caldera has had religious
significance for Native Americans since prehistoric times because of its
plentiful water resources in an otherwise arid region and because it
provided a major source of black volcanic glass (obsidian), which was
widely used for tools and weapons. Recreationally, the Caldera's landscape
is noted for its opportunities for hiking, cross-country skiing,
backpacking, bicycling, hunting, and fishing. Commercially, it provides
ranchers with forage for livestock. Since the Caldera's acquisition
through fiscal year 2005, the Valles Caldera Trust (Trust), established
under the Preservation Act, has received about $16 million in federal
funding to operate and maintain the Caldera.
As stated in the Preservation Act, the Trust is to be governed by a Board
of Trustees (Board) responsible for managing the Caldera as a national
preserve. Until the Trust could be organized, however, management of the
Caldera was provided by the U.S. Department of Agriculture's Forest
Service. The Secretary of Agriculture was to transfer management
responsibility to the Trust once the Board was able to conduct business
and provide for essential management services. The transfer occurred in
August 2002. The Preservation Act also charged the Trust with managing the
land to achieve a number of goals, including the following:
o protecting and preserving the Caldera's scientific, scenic, historic,
and natural values, including rivers and ecosystems, and archaeological,
geological, and cultural resources for future generations;
o providing opportunities for public recreation;
o providing for sustained yield management of the ranch for timber
production and domesticated livestock grazing insofar as those were
consistent with its other responsibilities; and
o becoming financially self-sustaining within 15 years of the purchase
date-that is, by 2015.
The Preservation Act also established the Trust as a wholly owned
government corporation subject to the Government Corporation Control Act
(Control Act).2 The Trust is also subject to the Government Performance
and Results Act (Results Act).3 Under the Control Act, the Trust must
obtain independent annual financial audits and report annually to
Congress. Under the Results Act, the Trust must prepare a strategic plan
and an annual performance plan with measurable goals and objectives, and
submit annual performance reports to Congress and the President.
The Preservation Act requires GAO to provide two reports to Congress on
the Trust's activities: an interim report 3 years after the Trust assumed
management responsibility and a final report 4 years later. For this
interim report, we examined the (1) Trust's accomplishments since its
inception and (2) work that remains for the Trust in order to meet its
goals under the act, including the goal of becoming financially
self-sustaining.
To address these issues, we analyzed information and interviewed officials
from the Forest Service and the Trust on the programs and activities the
Trust has initiated since assuming management of the Caldera. We also
analyzed documents, financial records, and other information, and visited
the site to observe the actions taken to date toward meeting the Trust's
statutory obligations. In addition, we analyzed the requirements of the
Control Act and the Results Act for government corporations. The financial
statements of the Trust have not been independently audited. We conducted
limited testing of these data and discussed these data with key Trust
officials. We describe issues related to these financial data in the body
of this report. We assessed and determined that the nonfinancial data,
such as participation in recreation activities and levels of livestock
grazing, were sufficiently reliable for the purposes of this report. We
conducted our work from January 2005 through October 2005 in accordance
with generally accepted government auditing standards.
Results in Brief
Since 2000, the Trust has made progress in meeting its goals of preserving
and protecting the Caldera for future generations as well as of providing
for public recreation and sustained yield management. To advance these
goals, the Trust established a basic organization with about 25 staff and
drafted policy and procedures-including guiding management principles and
a management framework; it also contracted with the Department of the
Interior's National Business Center for accounting services. On the
Caldera, the Trust began engineering and construction efforts to address
infrastructure problems-roads, water systems, fences, and buildings-to
make the Caldera more accessible for resource management, recreation, and
commercial uses. In addition, since 2002, the Trust has granted access to
the public through its interim grazing and recreation programs. To
preserve the land and implement environmental protection requirements, the
Trust uses science-based adaptive management-an approach under which
management decisions are based on site-specific scientific data, evaluated
for impact, and adjusted in response to these evaluations.
Despite the progress made, the Trust has much work to do to meet its goals
under the Preservation Act, including achieving a financially
self-sustaining operation. Specifically, the Trust has not yet developed
the following:
o Strategic and performance plans with measurable goals and objectives for
(1) protecting and preserving the scientific, scenic, historic, and
natural values of the Caldera; (2) providing opportunities for public
recreation; (3) providing for sustained yield management of the ranch for
timber production and domesticated livestock grazing; and (4) becoming
financially self-sustaining. Strategic and performance planning processes
can help highlight mission conflicts for decision makers. For example, the
Board must decide on the level of activities (e.g., grazing, hiking, and
hunting) that will be allowed so as to not seriously harm the land's
resources, yet provide sufficient recreational activity and sustained
yield management, and must select additional opportunities for generating
revenues, such as securing private donations.
o Plans to manage program risks, including losses due to fire and legal
liabilities that could undermine the Trust's ability to meet its goals.
For example, the Trust lacks a comprehensive fire plan outlining a
decision-making process for responding to naturally occurring fires. As a
result, the Trust spent about $338,000 in May 2005 to suppress a fire that
could have been left to burn because it did not threaten any key resources
or public infrastructure, in the opinion of the Forest Service Region 3
Fire Manager. The Trust has not obtained liability coverage because it is
uncertain of its legal authority to do so. As a result, the Trust has
restricted the number of visitors to the Caldera.
o Mechanisms for monitoring progress, such as annual financial audits
required by the Control Act and performance reports required by the
Results Act, would help the Trust assess its progress toward meeting its
financial and other goals.
Any one or a combination of these problems could undermine the Trust's
efforts to raise the revenues needed to bring it closer to meeting its
self-sustainability goal or other goals. Also, the Trust has experienced
significant turnover of Board members and key staff, which has contributed
to delays in implementing the goals under the act.
To establish a more effective management control program, we are
recommending that the Board develop a strategic and performance plan with
measurable goals and objectives, a plan for becoming financially
self-sustaining, performance monitoring mechanisms, and a plan for timely
replacement of personnel, prior to devoting additional resources to other
activities. We are also recommending that the Trust obtain an audit of its
2005 financial statements and report the results to Congress.
In commenting on a draft of this report, the Board generally agreed with
the accuracy of the findings, validity of the conclusions, and soundness
of the recommendations. The Board also provided additional information
regarding its efforts to address strategic planning, program risks related
to fire and legal liabilities, Board member and staff turnover, and
financial self-sustainability. With regard to the issue of financial
self-sustainability, the Board disagreed with our statement that financial
self-sustainability was not a priority and noted that this goal is
considered to be of equal priority to other goals it has to achieve. To
avoid ambiguity, we revised the language in the report to state that the
Trust considers the self-sustainability goal as one of many goals of equal
priority. We also added language in the report stating that the Trust can
use its own funds to purchase liability insurance.
Background
About 1.2 million years ago, a volcano erupted and collapsed inward,
forming the crater now known as the Valles Caldera, in north-central New
Mexico. This geologically and ecologically unique area covers about 89,000
acres of meadows, pine forests, hot springs, volcanic domes, and streams
that support elk herds and other wildlife and fishery resources. Figure 1
shows a view of Valle Grande from Redondo Peak, the highest elevation
within the Caldera.
Figure 1: Valle Grande Viewed from Redondo Peak
The Caldera comprises the formerly private lands known as the Baca Ranch
and is almost entirely surrounded by the Santa Fe National Forest and
Bandelier National Monument. Figure 2 shows the location of the Caldera in
relation to the Santa Fe National Forest and Bandelier National Monument.
Figure 2: The Caldera, Santa Fe National Forest, and Bandelier National
Monument
The owners of the Baca Ranch operated it as a working ranch, providing
grazing for their own cattle and, for a fee, for livestock owned by other
parties. According to the Preservation Act, the working ranch arrangement
was to continue after the federal government purchased the ranch. In
managing the Caldera, the Trust is to protect and preserve the land while
attempting to achieve a financially self-sustaining operation.
"Financially self-sustaining," as defined by the act, means that
management and operating expenditures-including trustees' expenses;
salaries and benefits; administrative, maintenance, and operating costs;
and facilities improvements-are equal to or less than proceeds derived
from fees and other receipts (including interest on invested funds) for
resource use and development. Appropriated funds are not to be considered.
To carry out its duties, the Trust has the authority to solicit and accept
donations of funds, property, supplies, or services from any private or
public entity; negotiate and enter into agreements, leases, contracts, and
other arrangements with any individual or federal or private entity; and
consult with Indian tribes and pueblos on matters that may affect them.
The Trust is managed by a nine-member Board. The President appoints seven
members, and the other two members are the Supervisor of the Santa Fe
National Forest and the Superintendent of the Bandelier National Monument.
Of the seven presidential appointees, who are selected in consultation
with the New Mexico congressional delegation, five must be New Mexico
residents. Appointees are to be selected based on their expertise or
experience. Generally, one individual must be appointed with knowledge of
or experience in each of the following: (1) livestock and range
management; (2) recreation management; (3) sustainable management of
forest lands for commodity and noncommodity purposes; (4) financial
management, budget and program analysis, and small business operations;
(5) cultural and natural history of the region; (6) nonprofit conservation
organizations concerned with Forest Service activities; and (7) state or
local government activities in New Mexico, with expertise in the customs
of the local area. Board members are generally appointed to 4-year terms
and can be reappointed; however, no Board member may serve more than 8
consecutive years. The Trustees select a chairman from the Board's
members. An executive director, who is hired by the Board, oversees the
Trust's day-to-day operations. The Board must hold at least three public
meetings a year in New Mexico.
Under the Control Act, the financial statements of a government
corporation must receive an independent financial audit annually in
accordance with generally accepted government auditing standards. In
addition, agencies must submit annual management reports to Congress that
include a statement of financial position, a statement of operations, a
statement of cash flow, a budget report reconciliation, a statement on
management controls, a report on the results of the annual financial
audit, and other necessary information about the operations and financial
condition.
The Results Act requires agencies to develop strategic and performance
plans, measure performance, and report annually to Congress. The Results
Act shifts the focus of an agency's operations from reporting on
activities toward achieving results. It requires a results-oriented
strategic planning process with clearly defined strategic objectives
linked to measurable performance goals and the collection of information
to monitor and evaluate the programs. A strategic plan should contain the
organization's mission statement and strategic goals, a description of the
means and strategies that will be used to achieve the goals, a description
of the relationship between annual performance goals and the
organization's strategic goal framework, the identification of key factors
that could affect achievement of the strategic goals, a description of
program evaluations used in preparing the strategic plan, and a schedule
for future program evaluations. The annual performance plan articulates
measurable goals for the upcoming fiscal year that are aligned with an
organization's long-term strategic goals. The annual performance report
compares an organization's performance with performance goals for the past
year.4 Implementation of the Results Act requirements enables managers to
improve accountability, effectiveness, service delivery, and internal
management, and to provide better information to Congress.
A more effective management control program, as we have defined it for the
purposes of this report, would encompass the requirements of the Control
Act and the Results Act. These requirements include, among other things,
(1) a strategic plan, (2) performance plans with measurable goals and
objectives, (3) the identification and mitigation of program risks, (4)
performance monitoring and reporting, and (5) annual audits.
The Trust Is Making Progress toward Preserving and Protecting the Caldera
and Providing Recreation and Sustained Yield Management
As required under the Preservation Act, the Board has taken steps to
establish and implement management policies to achieve the goals of
preserving and protecting the Caldera and providing for public recreation
and sustained yield management. In particular, the Board (1) established a
basic organization, (2) began to address infrastructure problems, (3)
granted limited access to the public through its interim grazing and
recreation programs, and (4) established an adaptive management framework.
The Board Established the Trust Organization
Between January 2001-the Board's first meeting-and September 2001, the
Board met regularly and held listening sessions with the general public to
obtain views on how the Caldera should be managed. Separately, the Board
met with representatives of local Indian tribes and pueblos. Using the
information from these sessions, in December 2001, the Board issued 10
guiding principles for future decision making. These guiding principles,
which are listed in appendix II, include a commitment to fair and
affordable access for all permitted activities. At the same time, however,
the Board stated that it would emphasize the quality of Caldera
experiences over quantity, which could limit activities and fees.
From January 2001 through August 2002, the Forest Service served as the
interim manager, and the Board and employees from the Forest Service and
other federal agencies conducted the Trust's work. In October 2001, the
Board hired its first employee, an executive director. During that year,
the Trust's office was located at the Santa Fe National Forest offices.
The Trust officially assumed management of the Caldera in August 2002,
after it provided for essential management services, including
establishing staff, beginning business operations, and adopting management
policies and procedures. During 2002, the Board drafted personnel and
procurement policies and procedures as well as policies for environmental
protection. It also drafted a tribal access and use policy to ensure
access to the Caldera for religious and cultural purposes, as authorized
by the Preservation Act. By the end of fiscal year 2002, the Trust had 7
employees, including business and resource managers. At the time of our
review in 2005, the Trust was reorganizing under a new executive director
and employed about 25 permanent and limited-term employees. Figure 3 shows
the Trust's proposed organization, as of September 2005.
Figure 3: Valles Caldera Trust's Proposed Organization, as of September
2005
Note: As of October 2005, the Board had not officially approved this
organizational proposal.
In addition, the Trust published its final management framework in May
2005. This document, entitled The Framework and Strategic Guidance for
Comprehensive Management, describes the history and natural features of
the Caldera, the goals of the Preservation Act, and the Trust's approach
for land stewardship, decision making, and public involvement. It further
describes a range of potential public uses of the Caldera, from hunting
and fishing to hiking and camping.
From its inception through fiscal year 2003, the Trust maintained its
financial accounts on the Forest Service's financial system. However, in
2003, the Board decided to obtain an independent financial system for the
Trust. The Trust contracted for financial services on the Oracle Federal
Financial System managed by the Department of the Interior's National
Business Center-an option the Trust considered to be more cost-effective
than developing a system in-house.5 Beginning with fiscal year 2004, the
Trust maintains its financial information on that system.
Infrastructure Surveyed and Potential Solutions to Problems Identified
Shortly after the federal government assumed ownership of the Caldera, the
Trust learned that the existing infrastructure-roads, buildings, fences,
and water treatment facilities-was seriously degraded and would have to be
rehabilitated before it could provide public access to the Caldera. The
Trust began the rehabilitation work in 2002.
Roads. The Caldera has an estimated 1,200 miles of roads, including 200
miles for the main access roads. Most of these roads had been constructed
with little planning or engineering and had been used to support logging
operations. They could not be readily used to support administration,
ranching, recreation, and other needs. In 2002, 3.5 miles of Road 1, the
main access road, and five key bridges were upgraded to all-weather
commercial gravel standards; work on the this road was completed in 2003.
Road 2-a 10.2-mile access road-was upgraded in 2004 and 2005. Road work
will continue as needs are identified and resources become available.
Figure 4 shows a portion of the main access road to the Caldera after
rehabilitation.
Figure 4: Portion of the Main Access Road to the Caldera after
Rehabilitation
Buildings, fences, and other facilities. From 2002 to 2005, the Trust
conducted minor maintenance on the ranch buildings used to house
employees. In 2002 and 2003, the Trust repaired the Caldera's 54 miles of
boundary fence and installed restricted access signs. In 2004, it assessed
the layout and condition of 64 miles of interior fences. The height of the
fences was shortened in many areas to allow for elk movement. The Trust
also installed scenic vistas and kiosks on New Mexico Highway 4, the main
access road to the Caldera, to allow public viewing of the Caldera. Other
facilities-such as livestock corrals-were also assessed and rehabilitated.
Figure 5 shows a historic building constructed in 1909 and used as a
commissary where ranch hands could purchase supplies on the Caldera.
Figure 5: Historic Commissary on the Caldera
Water treatment facilities. When the federal government acquired the
Caldera, the existing water treatment facility was not functioning and the
Caldera did not have potable water. Rehabilitating the system became a top
priority for the Trust. Repairs to the water collection and filtration
system were completed in 2004, and work was ongoing to repair the water
distribution system in 2005. As currently scheduled, potable water will be
available in the spring of 2006.
The Trust Implemented Interim Grazing
According to the Preservation Act, the Trust is to provide for livestock
grazing consistent with the other purposes of the act. The grazing
program, begun in 2002 as a 5-week drought-relief program, has been
operating under an interim livestock management plan, which is effective
through calendar year 2005. Until it can develop a more comprehensive
strategy, the Trust has established an interim grazing program that allows
grazing for between 1 and 2,000 cattle, depending on the condition of the
forage. This level is lower than the private owners had allowed-up to
6,000 cattle during the spring, summer, and fall grazing seasons. Table 1
shows the level of livestock grazing through 2005 (estimated) by calendar
year.
Table 1: Level of Livestock Grazing on the Caldera, Calendar Years 2002
through 2005
Components of the grazing program 2002 2003 2004 2005 (estimated)
Cow-calf pairs 703 305 a a
Conservation Stewardship Program (number 205 198
of cattle)
Replacement Heifer Program 375 461 402
(number of cattle)
Duration of grazing season (months) 1.25 4 4 4
Animal unit monthsb 879 2,270 2,621 2,354
Source: GAO analysis of Trust data.
aThe Trust replaced the cow-calf pair program in 2004 with the
Conservation Stewardship Program, which requires grazing applicants to
demonstrate that they have conservation initiatives on their own land.
bAn animal unit month (AUM) is the computed amount of forage (vegetation
such as grass and shrubs) that a cow and her calf eat in a month.
Two of these grazing programs-Conservation Stewardship and Replacement
Heifers-are designed, in part, to introduce local ranchers to more prudent
management practices. Under the stewardship program, which replaced the
cow-calf program, applicants have to demonstrate that they will implement
projects on their own lands to improve the condition of the range while
their cattle graze on the Caldera. The largest participant in the program,
the Pueblo of Jemez, implemented major range improvements on its own
lands, such as reseeding and resting rangeland. The Replacement Heifer
Program allows ranchers to graze heifers on the Caldera and have the
heifers bred with the Trust's registered bulls, which are certified to
produce calves with low birth weights. The program is designed to improve
the genetics of local herds and to protect the heifers from dying or
suffering other complications when they give birth.
The Trust Has Established Interim Recreation Programs
The Trust granted limited public access through recreation programs
beginning in 2002. Recreation activities offered have included, for
example, hunting, fishing, hiking, cross-country skiing, snowshoeing,
sleigh rides, wagon rides, and horseback riding. In most cases, the Trust
charged fees for access to the Caldera. Table 2 shows the level of public
participation in the various recreation programs from calendar years 2002
through 2004. Participation in recreation activities is expected to
increase for 2005. As shown in table 2, the Trust offered limited
recreational opportunities in 2002-a total of 1,920 participants. However,
in 2004, participation in recreation activities increased more than
fourfold over the 2002 level. The fishing program hosted the most visitors
over the period, or approximately 26 percent of total visitors. Elk
hunting/antler collection and hiking were also popular, each representing
about 21 percent of visitor participation, followed by wagon/sleigh rides
at about 15 percent.
Table 2: Public Participation in Recreation Programs, Calendar Years 2002
through 2004
Public participation 2002 2003 2004 Total
participants participants participants participants
by activity,
2002 through
2004
Fishing permits and 1,785 2,107 3,892
clinics
Elk hunting and 1,470 1,040 689 3,199
elk-antler collection
Hiking 200 1,296 1,620 3,116
Wagon and sleigh rides 250 447 1,520 2,217
Van and group tours 353 1,306 1,659
Mountain biking 440 440
Horseback riding 215 215
(equestrian program)
Skiing and snowshoeing 64 142 206
Stargazing lectures 71 70 141
Seminars, workshops, 87 87
and overnight photo
excursions
Bird watching 14 14 28
Total participants 1,920 5,070 8,210 15,200
Sources: Valles Caldera Trust staff and annual reports to Congress.
Fishing and fishing clinics. Two streams on the Caldera are suitable for
fishing. In 2003, the Trust granted fishing access to 1,785 participants
on a first-come, first-served basis. With increased demand in 2004, the
Trust used a lottery system to award access to 2,107 participants. In
addition, the Trust hosted youth and adult fishing clinics in both years.
Elk hunting and antler collection. The Trust worked with the New Mexico
Department of Game and Fish to set the numbers of available elk-hunting
licenses and used a lottery and auction to award licenses. Participation
in elk hunts has declined each year because of the New Mexico Department
of Game and Fish decided to decrease the number of hunting licenses
available to sustain a viable elk herd. In addition to the elk hunt, the
Trust has offered area youth groups the opportunity to collect antlers
shed by elk each year. These groups sell the antlers, which are generally
used to make decorative items, such as lamps, and the groups use the
proceeds to support nonprofit programs.
Hiking. Beginning in 2002, the Trust provided guided hiking through a
contractor to enable public access to the Caldera before it developed the
infrastructure needed for general public access. In 2003 and 2004, the
Trust implemented its own hiking program, expanded the activity boundaries
for hiking, and established unguided hikes as an option. In 2005, the
Trust increased the number of trails available for hikers on the Caldera.
In total, the Trust now has 24 miles of trails available for hikers.
Wagon and sleigh rides. The Trust offered horse-drawn wagon and sleigh
rides to visitors. The horse-drawn rides allow greater access to areas in
the Caldera. Wagon rides can occur year-round, while sleigh rides, of
course, need sufficient snowfall. Participation in wagon and sleigh rides
has increased more than sixfold, from 250 in 2002 to 1,520 in 2004. Also
in 2004, the Trust donated wagon rides on the Caldera as a prize for a
charity auction.
Other recreation. In 2003, the Trust added van tours, snowshoeing,
cross-county skiing, bird watching, and stargazing lectures. In 2004, the
Trust implemented an equestrian program, so that riders could transport
their own horses to the Caldera for rides on designated trails. Over 200
riders participated. Also in 2004, the Trust added mountain biking, group
tours and seminars, workshops, and overnight photo- and bird-watching
excursions.
The Trust Set Up a Science-Based Adaptive Management Framework
The Trust is using a science-based adaptive management framework for the
Caldera, which many believe to be a potentially effective approach to
managing the land. Under this approach, the Trust will make land
management decisions on the basis of scientific research and monitoring,
taking into account the public's views and federal environmental
requirements. The foundation of this management approach is inventorying
natural resources, monitoring environmental changes that result from the
Trust's programs, conducting research that will primarily help manage the
Caldera's resources, and complying with federal environmental
requirements.
Inventories. Little information was available about the Caldera's
resources when the federal government acquired the Caldera. As a result,
in 2001, the Trust-using volunteers and employees detailed from other
federal agencies-began to inventory the Caldera's vegetation and forest,
wildlife and fisheries, geology, and other resources. Some of these
baseline inventories have several components. For example, the wildlife
inventory includes components by species, such as mammals, reptiles, and
fish. Some inventory components have been completed, while others are
still ongoing and are scheduled to be completed during 2007. Figure 6
shows the current inventory and monitoring locations on the Caldera.
Figure 6: Inventory and Monitoring Sites on the Caldera
In addition, about 5 percent of the Caldera has been surveyed for cultural
resources. As a result of recent surveys, 25 previously unknown historic
properties have been discovered. For example, scientists have identified
prehistoric sites showing evidence of toolmaking using obsidian. The
cultural inventory is ongoing, and its completion date has not been
established because future construction plans are uncertain. According to
the Caldera's cultural program coordinator, planned surveys can be delayed
because of the need to survey areas slated for construction, such as
roads.
Monitoring. The monitoring program is intended to assess the impact that
grazing, fishing, forest thinning, prescribed fire programs, and other
activities have had on the Caldera. For example, the Trust is monitoring
areas it has fenced along streambeds to prevent elk and cattle grazing in
order to better understand the impacts of grazing on areas that are not
fenced off. Figure 7 shows a fenced riparian area on the Caldera. The
Trust is also monitoring the effects of natural and nonprogrammatic
factors, such as changes in climate and species populations, especially
nonnative populations. For example, as part of this program, the Trust
established five weather stations to monitor rainfall, snowfall, wind, and
temperature as well as five stations to monitor stream water quality.
Figure 7: Fenced Riparian Area on the Caldera
Research. The research program benefits both the management of the Caldera
and public land management. For example, hydrological research funded by
the National Science Foundation through the University of Arizona will
provide information to aid in the day-to-day management of the Caldera and
will also contribute to the understanding of hydrologic systems overall.
This research will enable scientists to understand how much rain the
Caldera's lands absorb and predict the amount of runoff into streams and
rivers. As more data become available, scientists can predict the impact
of rain and drought on water quality and forage availability on the
Caldera and use the information to drive future management decisions for
grazing and recreation.
Environmental compliance and public participation. The Trust must comply
with the National Environmental Policy Act (NEPA), which requires federal
agencies to assess the likely environmental impacts of any major actions
they propose. If the agency determines that a proposed activity will
significantly affect the quality of the human environment, it must prepare
an environmental impact statement (EIS). An EIS specifies, among other
things, the purpose of and need for the proposed action, its environmental
consequences, and the comparison of alternatives to the proposal.
Federal agencies, in addition to complying with the Council on
Environmental Quality's regulations for implementing NEPA, develop
agency-specific procedures. Before the Trust adopted its NEPA procedures
in July 2003, it used the Forest Service's procedures to ensure NEPA
compliance.6 Under the Forest Service procedures, the Trust categorically
excluded interim fishing, hiking, road maintenance, and hazardous-fuel
reductions from the general requirement to develop an environmental
assessment or impact statement because it was determined that the actions
would have no significant impact on the human environment. Under the
Forest Service regulations, the Trust conducted environmental assessments
of the interim grazing, noxious-weed eradication, and prescribed burns and
did not find that these activities significantly affected the Caldera. The
Trust expects to complete an environmental impact statement before
establishing a permanent grazing program in 2007.
The 2003 procedures are intended to efficiently and effectively implement
NEPA and create a collaborative working relationship between the Trust and
tribal governments, citizens, and federal, state, and local authorities.7
To obtain public views and to track and report the Trust's land management
actions, the Trust is developing an Internet-based system-the Stewardship
Action Record System (StARS). Once functional (expected at the end of
2005), StARS will allow public review and comment on all actions taken and
provide the public with opportunities to monitor the results of ongoing
efforts. StARS proposals have been developed for public recreation,
grazing, infrastructure development, research projects, and fire
management. The Trust is also exploring ways to distribute information to
the public and obtain comments without using the Internet.
According to the President's Council on Environmental Quality, the Trust's
NEPA procedures clearly integrate progressive NEPA compliance with
principles of adaptive management and environmental management systems.8
The council also stated that the procedures allow for uncertainty in the
decision-making process because actions are monitored and revised as more
information becomes available.
The Trust Has Much Work to Do to Meet Its Statutory Goals
Despite the progress made, the Trust has much work to do to meet its
mandated goals under the Preservation Act. Specifically, the Trust lacks
(1) strategic and performance plans and programs to ensure that revenue
streams are sufficient to achieve financial self-sustainability, (2) plans
to minimize program risks from fire that could damage resources and legal
liabilities that could result in catastrophic losses and reduced visitor
use, and (3) mechanisms for monitoring progress in meeting its financial
and other obligations, including annual audits and performance reporting.
These shortfalls could be addressed through a more effective management
control program, as envisioned in the Control and Results Acts. Frequent
turnover of Board members and key staff also contributed to delays in
implementing the components of an effective management control program.
Without a more effective management control program, the Trust cannot
adequately plan and implement programs or monitor progress toward meeting
the mandated goals of the Preservation Act.
The Trust Has Not Developed Strategic and Performance Plans with
Measurable Goals and Objectives
The Trust has not developed strategic and performance plans as required
under the Results Act. Specifically, it has not developed a strategic plan
that not only outlines its mission and goals but also describes how it
will achieve and revise its goals and objectives, how performance goals
relate to the organization's strategic goal framework, and how it will
conduct program evaluations. In 2005, the Trust published its Valles
Caldera National Preserve Framework and Strategic Guidance for
Comprehensive Management. This document provides useful information about
the history of the Caldera, background on the Trust, and general goals,
but discusses issues in terms of possibilities and in a broad and
philosophic manner instead of applying a methodical and analytical
approach to strategic planning. Board members stated that they did not
prepare a strategic plan because they believed that the NEPA compliance
process had to be completed before they could publish a plan. However,
agencies are not required to prepare an EIS prior to formulating a
strategic plan.
The Trust has not developed an annual performance plan with measurable
goals for the activities it allows on the Caldera, which would help it
determine whether it is accomplishing the overall strategic goals. For
example, the performance plan could support the overall strategic goal to
provide recreational opportunities by establishing annual measurable goals
for the Trust's recreation activities. An example of a measurable goal
could be to increase public participation in hiking activities by 10
percent per year until the Trust has determined that the allowed level of
hiking will not impair or damage the Caldera and is consistent with the
other goals under the Preservation Act. The performance plan could also
support the strategic goal to protect and preserve the Caldera, which
could contain a measurable goal to restore and expand a specific number of
wetland acres per year. However, the Trust cannot agree on the balance
that should be struck between the activities that should occur on the
Caldera and the impact of these activities on the land in order to achieve
its overall goals of resource protection, recreation, sustained yield
management, and financial self-sustainability.
To become financially self-sustaining by 2015, the Trust needs to generate
enough revenue to pay for its operations and maintenance as well as
infrastructure development costs. The Trust's main revenue-generating
activities are hunting, fishing, special events such as mountain biking,
and grazing. Table 3 shows the revenue generated, by program activity, for
fiscal year 2004.
Table 3: Revenue Collected, by Program Activity, Fiscal Year 2004
Program Revenue
Hunting $245,885
Fishing 62,793
Special events 45,699
Grazing 42,728
Hiking 28,744
Souvenirs, books, maps 13,256
Donations 841
Other a 60,137
Total $500,083
Source: Valles Caldera unaudited data.
Notes: The Trust's financial statements remain unaudited as of the date of
this report.
aOther includes lodging, filming, and other revenues generated by credit
card payments not specifically identified to programs.
To date, however, the Board has not developed sufficient revenue streams
to cover its program costs or developed performance goals for becoming
financially self-sustaining. Specifically, managers estimated that the
grazing program lost about $55,000 in 2004 but have not computed the gain
or loss for other programs. With total revenues of about $500,000 and
total expenditures in excess of $5 million in fiscal year 2004, it is
apparent that programs were operating at a loss. The Board does not plan
to change the operation of revenue-generating programs until the Trust
complies with NEPA.
According to the Valles Caldera National Preserve Framework and Strategic
Guidance for Comprehensive Management, the Trust considers the financial
self-sustainability goal as one of many goals of equal priority.
Furthermore, according to the framework, the Trust cannot set a date for
achieving financial self-sustainability-established as a goal to be
accomplished by 2015 in the Preservation Act-because its federal land
stewardship obligations do not allow it to operate grazing and recreation
activities at a level that puts natural resources at risk. Therefore, the
framework states, it may be reasonable to continue appropriations to cover
environmental stewardship costs, such as those for environmental
assessments and resources inventories, while the balance of the Trust's
programs operate in a self-sustaining manner. While financial self-
sustainability may not be attainable in the long run, we believe it is
premature to assume that appropriations will continue to be needed after
the Trust's 15th year of operation-the time period established to achieve
the goal of self-sustainability. Moreover, the Trust is directed to report
to Congress in its 14th year if the achievement of self-sustainability by
its 15th year is unrealistic. In the meantime, the Trust has an obligation
to continue to develop a strategy and implement a plan to become
financially self-sustaining.
The Preservation Act also requires the Trust to report to Congress on how
and when the Trust will become financially self-sustaining. That is, the
Trust is to provide Congress with a schedule of decreasing appropriations
that demonstrates how it will achieve financially self-sustaining
operations by 2015. Such a schedule should, at a minimum, quantify the
annual appropriations as well as other projected revenue sources needed
through 2015 and demonstrate that these sources of income will meet or
exceed the expected program operations and maintenance costs during that
time frame. However, the Trust has only presented the three-phased
strategy shown in table 4 to achieve that goal. As the table shows, the
Trust's Schedule of Decreasing Appropriations does not include financial
information to show how the appropriations will decrease each year.
Table 4: The Trust's 15-Year Strategy for Achieving a Financially
Self-Sustaining Operation
Phase Goal Task
I. Institution To develop the staff Hire and organize staff,
building (2001-2005) and tools needed to develop science-based
manage the preserve management mechanisms, and
institute real-time accounting
controls
II. Infrastructure To develop the Obtain appropriations and
development infrastructure needed develop infrastructure,
(2005-2010) to support land including roads, trails,
stewardship, public facilities, and permanent
access, and receipts recreation and public access
generation programs
III. Program To cultivate Implement previous phase
refinement alternative sources of business plans, which evaluate
(2010-2015) funds and streamline potential sources of funds
programs to permit such as access and activity
decreasing fees, grants, sustained
appropriations utilization of resources,
private fund-raising, retail
and merchandizing activities,
and special events
Source: GAO analysis of the Board's Schedule of Decreasing Appropriations.
The Preservation Act also authorized the Trust to solicit and accept
donations of funds, property, supplies, and services. The Trust has
received some donations, primarily volunteer labor. Through 2005, cash
donations totaled about $56,000, $50,000 of which was earmarked to pay the
salary of a full-time employee to coordinate volunteer efforts. However,
the Trust has not developed a plan for outreach to philanthropic
organizations. For example, charitable organizations supporting national
parks have been established to solicit donations to help support park
needs. The Trust has discussed this option but has not actively pursued
it.
The Trust Has Not Addressed Risks Potentially Posed by Fire and Legal
Liabilities
The Trust has not addressed program risks, including fire and legal
liabilities that could undermine its ability to meet its financial
obligations.9 The Trust completed a fire management plan in 2004 that
adopts, by reference, the federal National Fire Plan. According to the
National Fire Plan, agencies need a fire management plan to outline a
decision-making process for responding to naturally occurring fires.10
Such a plan lays out the conditions under which fires must be suppressed
or allowed to burn to benefit resources.11 The Caldera's plan, however,
has not addressed fire management to benefit resources, only the
management of prescribed fires. Without a plan to manage fires for
resource benefits, all naturally occurring fires on the Caldera must be
suppressed, and suppression can be costly.12 For example, in May 2005, a
fire on the Caldera burned about 82 acres before being suppressed-at a
cost of about $338,000. In the opinion of the Forest Service Region 3 Fire
Manager, this fire could have been left to burn because it did not
threaten any key resources or public infrastructure. Extended periods of
drought and high fire risk in northern New Mexico could easily deplete the
Caldera's financial resources because suppression costs are high.
The Trust does not have liability coverage to protect against injuries on
the Caldera because it was uncertain whether it could acquire such
insurance using appropriated funds. Moreover, as a government corporation,
the Trust did not believe it could access the federal judgment fund, a
fund in the U.S. Treasury used for the payment of final judgments against
the United States. This lack of liability coverage and uncertainty led the
Trust to take a cautious approach to implementing programs and increasing
public access. According to the Board, in June 2005 the Trust clarified
these issues with its legal counsel, who determined that legislation might
be necessary to access the judgment fund but that it could use its own
funds to purchase liability insurance.
The Trust Has Not Developed Required Mechanisms for Monitoring Progress in
Meeting Financial and Other Goals
The Trust has yet to develop the mechanisms needed to monitor progress in
meeting its financial and other obligations under the Preservation,
Control, and Results Acts. These mechanisms include an annual financial
audit to ensure the credibility of reported financial information and an
annual performance report that describes progress toward achieving its
annual performance goals. Without these mechanisms, the Trust, Congress,
and other stakeholders cannot determine whether the Trust is on a course
to meet all of its goals.
Annual Audits. The Control Act requires annual financial audits for
government corporations' financial statements by an independent, external
auditor selected by the head of the corporation. The results of the audits
are to be reported to the head of the government corporation and to
Congress. The Board has yet to conduct an audit because it has not
produced auditable financial statements.
In 2003, the Trust contracted with an independent accounting firm for
auditing services, including an audit of the (1) statement of financial
position of the Trust and (2) related statement of activities and cash
flows, as of September 30, 2003. However, according to the Trust's former
business manager, the audit firm recommended that the audit be postponed
until 2004 since the Trust's financial records had only recently been
established on the new financial system operated by the National Business
Center. The Trust agreed with this recommendation. As of October 2005, the
Trust had not contracted with an independent firm to audit its annual
financial statements. Also in 2003, the Trust contracted with another firm
to review the payroll process and controls for each of the revenue sources
and to recommend improvements. According to Trust managers, in fiscal year
2005, financial policies and procedures were still not in place and
financial statements had not been produced. The managers told us that they
were in the process of establishing management controls and attempting to
reconstruct prior years' expenditures in preparation for their first
external audit.
Annual Performance Reports. The Control, Results, and Preservation Acts
require the Trust to report annually to Congress on certain aspects of its
operations. Collectively, these acts require a statement of financial
position, a statement of operations, a statement of cash flows,
reconciliation to the budget report, a management controls statement, a
report on a financial statement audit, and reports on annual performance.
The annual reports to Congress the Trust has prepared for fiscal years
2001 through 2004 under the Preservation Act describe the interim programs
the Trust has implemented and summarize the prior years' accomplishments.
The Trust may not have been able to prepare annual reports to Congress
that address requirements of the Control Act partly because the Trust has
not produced a budget report or financial statements. In addition, because
the Trust has not developed annual performance plans with performance
goals, it has not produced a performance report required by the Results
Act.
Turnover of Board Members and Staff Contributed to Delays in Implementing
Components of a More Effective Management Control Program Needed to Meet
Statutory Goals
Effective management of an organization's workforce-its human capital-is
essential to achieving results and an important part of internal control.
Operational success is possible only when the right people for the job are
on board and are provided the right training, tools, structure,
incentives, and responsibilities. Management should ensure that it obtains
a workforce with the required skills that match those necessary for
achieving organizational goals. As part of its human capital planning,
management should also consider how best to retain valuable employees,
plan for their eventual succession, and ensure continuity of needed skills
and abilities. Excessive or unexpected turnover of staff can indicate
problems with an organization's management control program and contribute
to delays in implementing programs needed to achieve established goals.
Throughout its short history, the Trust has experienced significant
turnover among Board members and staff. According to the Preservation Act,
three of the initial Board members are appointed for 2 years, while four
other Board members are initially appointed for 4-year terms. All
subsequent appointments to these positions are for 4 years. At the end of
the first 2-year term, the Board operated for about 5 months before the
President appointed replacements. In January 2005, four more board members
completed their terms, and the Board operated for 4 months before the
President appointed three of the four replacements. As of October 2005,
the President had not appointed anyone for the fourth position, which has
now been vacant for about 10 months.
The Trust has also experienced high turnover among key staff. The Trust's
first executive director served 18 months, resigning as director in March
2004. The position remained vacant for about 7 months while the Trust
searched for a replacement. Although this position was filled in October
2004, the executive director resigned after 10 months of service. Other
key positions became vacant in 2004 and 2005, including the Trust's
controller, business manager, programs director, chief administrative
officer, communications manager, and cultural program coordinator. As of
October 2005, the executive director, programs director, chief
administrative officer, cultural resources coordinator, and geospatial
information systems coordinator positions remained vacant. The business
manager position was abolished. Table 5 shows the turnover of key Trust
staff in 2004 and 2005 and the current status of these positions.
Table 5: Turnover of Key Trust Staff in 2004 and 2005
Key positions Date hired Date vacated Replacement hired
First executive director Oct. 2001 March 2004 Oct. 2004
Second executive director Oct. 2004 Sept. 2005 Vacant
Controller July 2002 Nov. 2004 Sept. 2005
Programs director June 2005 Sept. 2005 Vacant
Cultural resources coordinator Sept. 2003 Aug. 2005 Vacant
Communications manager Jan. 2003 May 2005 Vacant
Business manager June 2002 Apr. 2005 Position abolished
Chief administrative officer Dec. 2004 Sept. 2005 Vacant
Geospatial information systems Aug. 2003 Sept. 2005 Vacant
coordinator
Source: GAO analysis of the Trust's personnel records.
According to some stakeholders we spoke with, the turnover of Board
members and other key staff has contributed to the Trust's inability to
develop a strategic and performance plan with measurable goals and
objectives as well as to delays in implementing programs. For example, the
NEPA environmental assessment related to the grazing program was postponed
when four Board members completed their 4-year terms in January 2005. Some
staff stated that the lack of consistent leadership and the lack of
progress in organizational and program development has contributed greatly
to staff turnover.
Conclusions
To meet the mandated management goals of the Caldera, the Trust faces
multiple challenges-balancing conflicting goals and objectives for
resource development and use with preserving and protecting these
resources for sustained future recreational enjoyment of the Caldera.
While the Trust has made some progress in achieving its mandated goals,
its further progress is in doubt because it has not developed a
well-defined management control program, which is collectively encompassed
in the mandates governing the Caldera's operations. Such a program would
include strategic and performance plans, measurable goals and objectives
and monitoring plans, annual performance reports, and a strategy for
achieving financial self-sustainability. These mechanisms would help
provide greater accountability for achieving results and enhancing
decision making. Furthermore, an effective management control program-to
include human capital initiatives designed to retain needed skills and
provide timely replacement of lost skills-can ease the effects associated
with turnover in the Board and staff.
Achieving financial self-sustainability by 2015 is only one of many goals
and objectives set forth in the Preservation Act, but it is key to the
Trust's success in managing and operating the Caldera without federal
funds. The Trust assumes that it may have to continue to rely on federal
funding after 2015, but this assumption is premature because the Trust has
not focused on the actions it needs to take to become self-sustaining,
such as expanding or establishing new revenue-generating programs or
identifying other nonfederal revenue sources (donations). Furthermore,
without developing programs to minimize risks associated with implemented
programs, the Trust cannot manage the uncertainty surrounding liability
and fire suppression costs, which could undermine its efforts to achieve
financial self-sustainability. Finally, without an independent financial
statement audit, the Trust cannot demonstrate to Congress and other
stakeholders that it is developing a sound financial base and that
reported financial information is credible.
Recommendations for Executive Action
To help ensure that the Trust meets its goals under the Preservation Act
and to improve management oversight, accountability, and transparency
under the Control Act and the Results Act, we are making the following
seven recommendations to the Valles Caldera Board of Trustees.
To establish a more effective management control program, we recommend
that the Board develop
o a strategic and performance plan that identifies measurable goals and
objectives for protecting and preserving the Caldera, providing
recreation, sustaining yield, and becoming financially self-sustaining;
o a plan for becoming financially self-sustaining that includes financial
information detailing how and when the Trust will try to achieve this
goal;
o mechanisms for periodic performance monitoring and reporting, including
annual performance reports that enable Congress and the Trust to track
progress in achieving the Trust's program goals and objectives; and
o a plan for the timely replacement of key personnel.
To increase accountability to Congress and other stakeholders, we also
recommend that the Board
o obtain the annual financial statement audit for 2005,
o provide a status report or the auditor's final opinion on the Trust's
financial condition in its January 2006 annual report to Congress, and
o arrange to conduct future annual financial audits in a timely manner.
Trust Comments and Our Evaluation
We provided the Valles Caldera Board of Trustees with a draft of this
report for review and comment. The Board provided written comments that
are included in appendix I. The Board generally agreed with the accuracy
of the findings, validity of the conclusions, and soundness of the
recommendations. It also provided additional insights into four specific
areas. First, it stated that it has, over the last several years, engaged
in extensive strategic planning sessions to lay the foundation for
developing more detailed operating plans once the highest level strategic
planning work is completed and sufficient experience has been obtained in
conducting interim programs. It also said that it has adopted, in 2005, a
set of strategic goals, the achievement of which is both measurable and
time specific. We acknowledge that in 2005 the Board announced four
broadly stated strategic goals. However, as stated in the report, the
Trust has not developed strategic and performance plans that include all
required elements of the Results Act, which provides a methodical and
analytical approach to strategic planning.
Second, with regard to risks posed by fire and legal liabilities, the
Board said it was in the process of completing a Fire Use Plan that
addresses the use of management-ignited fire as well as the use of fire
originating from natural ignitions and that Congress has adopted
legislation to provide the Board with access to federal fire suppression
funds. These actions will enhance the Board's ability to evaluate natural
ignitions and apply the appropriate management response. We agree that it
is important to complete the Fire Use Plan, which, according to the Board,
will be finalized by May 2006. As mentioned in the report and in the
Board's comments, having a sound fire management plan will provide greater
assurance that proper management actions are taken in the event of a
wildland fire. The Board also said it has pursued clarification of whether
the Board can access the federal government's judgment fund and has
obtained a legal opinion from an independent firm that concludes that
legislation might be necessary to access the judgment fund but that the
Trust could use its own funds to purchase liability insurance. We revised
the report to include this clarification and agree that the Trust should
use its own funds to purchase liability insurance.
Third, the Board agreed that the timely appointment of Board members and
the management of its human resources are essential to achieving positive
results. In this regard, it mentioned that it has revised its bylaws to
effect the orderly transition of Board members, so as to mitigate the
impact of possible delays in the appointment process. It also said it had
adopted a new organizational structure and performance review process for
employees. The change in the Board's bylaws has the effect of allowing the
Board to make important decisions in the absence of a full Board due to
delays in appointments of Board members. We agree this is important given
that the replacement of Board members is out of its control. The Board
also recognized that it has experienced a relatively high level of Trust
employee turnover, which it said has "occurred in a constructive fashion,
void of grievances or formal complaints." Nonetheless, the fact remains
that high turnover, particularly of key employees, can cause disruption to
an organization and affect its ability to accomplish established goals. As
the report states, an effective management control program has a process
in place for the timely replacement of key personnel lost to turnover.
Establishing such a process is within the purview of the Board and
important to effective management of an organization's human capital.
Finally, the Board stated that while the Trust was fully committed to the
goal of financial self-sustainability, the Trust recognizes that to obtain
that goal, it needs to streamline required federal overhead stemming from
compliance with federal laws and statutes and to control administrative
and operating costs. It said it was committed to developing the management
plans required for conversion of financially attractive programs to
regular status and acquiring capital resources. Furthermore, it stated
that the Board takes the goal of financial self-sustainability seriously
and on par with other provisions of the Preservation Act and thus
disagreed with the implication in the report that it did not consider the
financial self-sustainability goal as a priority. Because the Board's
published management framework, entitled Valles Caldera National Preserve
Framework and Strategic Guidance for Comprehensive Management, states
that the Trust considers the financial self-sustainability goal as only
one of many goals, to avoid ambiguity, we revised the report's language to
state that the Trust considers the self-sustainability goal as one of many
goals of equal priority. Regardless, the seriousness of the Board's
actions in addressing this goal would, as mentioned in the report, be
further enhanced by demonstrating a more aggressive approach to
identifying additional revenue sources that would help the Trust come
closer to achieving financial self-sustainability.
Scope and Methodology
We obtained and analyzed information from the Trust on its activities,
relevant laws, regulations, program documents, and related materials, and
met with Trust officials responsible for major activities, such as
recreation, resource inventorying, construction, and financial management.
Since the Caldera was initially under the management of the Forest
Service, we interviewed Forest Service officials and reviewed available
documentation supporting activities undertaken during this time. We also
visited the Caldera to observe the actions taken to date toward meeting
the Trust's statutory goals. The financial statements of the Trust have
not been independently audited. We conducted limited testing of these data
and discussed these data with key Trust officials. We describe issues
related to these financial data in the body of this report. We assessed
and determined that the nonfinancial data, such as participation in
recreation activities and levels of livestock grazing, were sufficiently
reliable for the purposes of this report. We conducted our work from
January 2005 through October 2005 in accordance with generally accepted
government auditing standards.
We are sending copies of this report to interested parties. We will also
make copies available to others upon request. In addition, this report
will be available at no charge on GAO's Web site at http://www.gao.gov .
If you or your staff have any questions about this report, please contact
me at (202) 512-3841 or [email protected] . Contact points for our Offices
of Congressional Relations and Public Affairs may be found on the last
page of this report. GAO staff who made major contributions to this report
are listed in appendix III.
Robin M. Nazzaro Director, Natural Resources and Environment
List of Committees
The Honorable Pete V. Dominici Chairman The Honorable Jeff Bingaman
Ranking Minority Member Committee on Energy and Natural Resources United
States Senate
The Honorable Richard Pombo Chairman The Honorable Nick J. Rahall II
Ranking Minority Member Committee on Resources House of Representatives
Comments from the Valles Caldera Trust Appendix I
Guiding Principles of the Valles Caldera Trust Appendix II
1.Future generations. Administer the Preserve with the long view in mind,
directing efforts toward the benefit of future generations.
2.Protection. Recognizing that the Preserve imparts a rich sense of place
and qualities not to be found anywhere else, commit to the protection of
its ecological, cultural, and aesthetic integrity.
3.Integrity. Strive to achieve a high level of integrity in the
stewardship of the lands, programs, and other assets in the Trust's care.
This includes adopting an ethic of financial thrift and discipline and
exercising good business sense.
4.Science and adaptive management. Exercise restraint in the
implementation of all programs, basing them on sound science and adjusting
them consistent with the principles of adaptive management.
5.Good neighbor. Recognizing the unique heritage of northern New Mexico's
traditional cultures, be a good neighbor to surrounding communities,
striving to avoid negative impacts from Preserve activities and to
generate positive impacts.
6.Religious significance. Recognizing the religious significance of the
Preserve to Native Americans, the Trust bears a special responsibility to
accommodate the religious practices of nearby tribes and pueblos, and to
protect sites of special significance.
7.Open communication. Recognizing the importance of clear and open
communication, commit to maintaining a productive dialogue with those who
would advance the purposes of the Preserve and, where appropriate, to
developing partnerships with them.
8.Part of a larger whole. Recognizing that the Preserve is part of a
larger ecological whole, cooperate with adjacent landowners and managers
to achieve a healthy regional ecosystem.
9.Learning and inspiration. Recognizing the great potential of the
Preserve for learning and inspiration, strive to integrate opportunities
for research, reflection, and education in the programs of the Preserve.
10.Quality of experience. In providing opportunities to the public,
emphasize quality of experience over quantity of experiences. In so doing,
and in reserving the right to limit participation or to maximize revenue
in certain instances, commit to providing fair and affordable access for
all permitted activities.
GAO Contact and Staff Acknowledgments Appendix III
Robin M. Nazzaro, (202) 512-3841 or [email protected]
In addition to the contact named above, Roy Judy, Assistant Director;
Christine Bonham; Doreen Feldman; Lisa Knight; Tom Kingham; Julian
Klazkin; Allen Lomax; Cynthia Norris; Judy Pagano; Dawn Shorey; Carol
Herrnstadt Shulman; and Maria Vargas made key contributions to this
report.
(360525)
www.gao.gov/cgi-bin/getrpt? GAO-06-98 .
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Robin Nazzaro at (202) 512-3841 or
[email protected].
Highlights of GAO-06-98 , a report to congressional committees
November 2005
VALLES CALDERA
Trust Has Made Some Progress, but Needs to Do More to Meet Statutory Goals
In 2000, Congress authorized the purchase of the Valles Caldera (the
Caldera) in north-central New Mexico. The Valles Caldera Trust (Trust), a
wholly owned government corporation, is to become financially
self-sustaining and to manage the Caldera for multiple purposes while
sustaining the land's valuable natural resources. GAO was mandated to
assess the progress the Trust is making in meeting its statutory goals.
What GAO Recommends
To help ensure that the Trust meets its goals and establish a more
effective management control program, GAO recommends that the Trust's
Board of Trustees develop (1) a strategic and performance plan that
identifies measurable goals and objectives for protecting and preserving
the Caldera, providing recreation, sustaining yield, and becoming
financially self-sustaining; (2) a plan for becoming financially
self-sustaining; (3) periodic performance monitoring and reporting that
enable Congress and the Trust to track progress in achieving program
goals; and (4) a plan to fill vacant positions.
GAO also recommends that the Board obtain the required financial audit for
2005 and report on the status of the audit in its 2006 annual report to
Congress.
In commenting on the draft report, the Board generally agreed with GAO's
recommendations.
The Trust has made progress in meeting its goals to preserve and protect
the Caldera for future generations as well as to provide for public
recreation and sustained yield management. Specifically, it has (1)
established a basic organization with about 25 staff; (2) drafted policy
and procedures and contracted with the Department of the Interior's
National Business Center for accounting services; (3) begun engineering
and construction efforts to address infrastructure problems-roads, water
systems, fences, and buildings; (4) established interim grazing and
recreation programs; and (5) implemented an adaptive management approach
that focuses on making management decisions based on scientific data.
The Trust, however, still has much work to do to meet its goals, including
achieving a financially self-sustaining operation. Specifically, the Trust
has not yet developed the following:
o Strategic and performance plans with measurable goals and
objectives. For example, the Trust must decide on the level of
activities (e.g., grazing, hiking, and hunting) that will be
allowed without seriously harming the land's resources, and yet
will still provide sufficient recreational activity and sustained
yield management. The Trust also must select additional
opportunities for generating revenues, such as securing private
donations.
o Plans to manage program risks. The Trust has not addressed
program risks, including fire and legal liabilities. For example,
the Trust lacks a fire plan, which would outline a decision-making
process for responding to fires, and has not obtained liability
coverage. Because it did not have a fire plan, the Trust spent
about $338,000 in May 2005 to suppress a fire, which, in the
opinion of the Forest Service Region 3 Fire Manager, could have
been left to burn because the fire did not threaten any key
resources or public infrastructure. Also, because it has not
obtained liability coverage, the Trust has restricted the number
of Caldera visitors.
o Mechanisms for monitoring progress. Among other things, the
Trust has not had annual financial audits and has not prepared
performance reports that would help it assess its progress toward
meeting its financial and other goals.
The Trust's efforts to raise the revenues needed to bring it closer to
meeting its financial self-sustainability goal could be undermined by one
or more of these issues. Frequent turnover in Board members and key staff
has contributed to the problems experienced to date.
*** End of document. ***