National Park Service: Information on Special Account Funds at Selected
Park Units (Letter Report, 05/17/96, GAO/RCED-96-90).
Pursuant to a congressional request, GAO examined the National Park
Service's (NPS) special account funds, focusing on: (1) the sources and
amounts of these funds; and (2) whether the expenditures of these funds
are consistent with intended purposes.
GAO found that: (1) the value of the eight NPS accounts reviewed
totalled $45 million; (2) five of these accounts recovered the costs
associated with in-park activities and the other three provided cash and
noncash benefits; (3) in 1994, cost-recovery accounts totalled $6.5
million and non-cost-recovery accounts totalled $38.5 million; (4)
cost-recovery accounts are funded through living history demonstrations,
reimbursements from mess operations, historical property leases,
payments for park damages, and special-use fees for funding; (5)
non-cost-recovery accounts receive funding from various donations and
cooperating associations that operate bookstores on park premises; (6)
the associations provide a variety of in-park services related to park
themes and construct facilities that support concession services; (7)
significant discrepancies exist between NPS and individual park
financial data on the amount of funds in special accounts established by
concessioners; (8) the actual amount of money in the special fund
accounts is several million dollars higher than reported by NPS; (9) NPS
attributes some of these discrepancies to inaccurate tracking of
concessioners' accounts; and (10) all but one of the expenditures from
the special fund accounts were for authorized purposes.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: RCED-96-90
TITLE: National Park Service: Information on Special Account Funds
at Selected Park Units
DATE: 05/17/96
SUBJECT: Concessions contracts
Funds management
National historic sites
National parks
Special fund accounts
User fees
Reimbursements to government
Accounting procedures
National recreation areas
IDENTIFIER: NPS Special Account Tracking System
Grand Canyon National Park (AZ)
Mesa Verde National Park (CO)
Jefferson National Expansion Memorial (St. Louis, MO)
Yosemite National Park (CA)
Sequoia National Park (CA)
Lowell National Historical Park (MA)
Yellowstone National Park (WY)
Carlsbad National Park (NM)
Kings Canyon National Park (CA)
National Park Service: Information on Special Account Funds at Selected
Park Units (Letter Report, 05/17/96, GAO/RCED-96-90).
Pursuant to a congressional request, GAO examined the National Park
Service's (NPS) special account funds, focusing on: (1) the sources and
amounts of these funds; and (2) whether the expenditures of these funds
are consistent with intended purposes.
GAO found that: (1) the value of the eight NPS accounts reviewed
totalled $45 million; (2) five of these accounts recovered the costs
associated with in-park activities and the other three provided cash and
noncash benefits; (3) in 1994, cost-recovery accounts totalled $6.5
million and non-cost-recovery accounts totalled $38.5 million; (4)
cost-recovery accounts are funded through living history demonstrations,
reimbursements from mess operations, historical property leases,
payments for park damages, and special-use fees for funding; (5)
non-cost-recovery accounts receive funding from various donations and
cooperating associations that operate bookstores on park premises; (6)
the associations provide a variety of in-park services related to park
themes and construct facilities that support concession services; (7)
significant discrepancies exist between NPS and individual park
financial data on the amount of funds in special accounts established by
concessioners; (8) the actual amount of money in the special fund
accounts is several million dollars higher than reported by NPS; (9) NPS
attributes some of these discrepancies to inaccurate tracking of
concessioners' accounts; and (10) all but one of the expenditures from
the special fund accounts were for authorized purposes.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: RCED-96-90
TITLE: National Park Service: Information on Special Account Funds
at Selected Park Units
DATE: 05/17/96
SUBJECT: Concessions contracts
Funds management
National historic sites
National parks
Special fund accounts
User fees
Reimbursements to government
Accounting procedures
National recreation areas
IDENTIFIER: NPS Special Account Tracking System
Grand Canyon National Park (AZ)
Mesa Verde National Park (CO)
Jefferson National Expansion Memorial (St. Louis, MO)
Yosemite National Park (CA)
Sequoia National Park (CA)
Lowell National Historical Park (MA)
Yellowstone National Park (WY)
Carlsbad National Park (NM)
Kings Canyon National Park (CA)
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO report. Delineations within the text indicating chapter **
** titles, headings, and bullets are preserved. Major **
** divisions and subdivisions of the text, such as Chapters, **
** Sections, and Appendixes, are identified by double and **
** single lines. The numbers on the right end of these lines **
** indicate the position of each of the subsections in the **
** document outline. These numbers do NOT correspond with the **
** page numbers of the printed product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
** A printed copy of this report may be obtained from the GAO **
** Document Distribution Center. For further details, please **
** send an e-mail message to: **
** **
** **
** **
** with the message 'info' in the body. **
******************************************************************
Cover
================================================================ COVER
Report to Congressional Requesters
May 1996
NATIONAL PARK SERVICE -
INFORMATION ON SPECIAL ACCOUNT
FUNDS AT SELECTED PARK UNITS
GAO/RCED-96-90
Special Accounts
(140334)
Abbreviations
=============================================================== ABBREV
GAO -
RCED -
Letter
=============================================================== LETTER
B-271362
May 17, 1996
The Honorable James V. Hansen
Chairman, Subcommittee on National Parks,
Forests, and Lands
Committee on Resources
House of Representatives
The Honorable Craig Thomas
United States Senate
The national park system consists of nearly 370 units, including
parks, monuments, and historic sites, and is administered by the
Department of the Interior's National Park Service (Park Service).
Each year, the Park Service receives annual appropriations to operate
the national park system. In addition to these annual
appropriations, the individual park units are permitted to supplement
their appropriations by keeping funds from certain in-park activities
and by accepting certain other benefits from park support groups or
concessioners. The funds going to the park units from these
activities are not always subject to the annual congressional
appropriations process. For the purposes of this report, we are
collectively referring to these funds as special accounts.\1
Concerned about the amount and use of monetary and other benefits
that the park units receive in addition to their annual
appropriations, you requested us to determine (1) the sources and
amounts of special account funds available Park Service-wide and, for
a sample of park units, the amount of special account funds that were
available to each of them and (2) whether the expenditures of funds
in special accounts were consistent with the purposes for which those
accounts were established.
--------------------
\1 Although the Park Service uses the term "special account" to refer
only to accounts established by concessioners, in this report we are
using the term in a more general way to describe funds not always
subject to the annual appropriations process; this usage includes the
benefits from concessioners as well as groups that support park
units.
RESULTS IN BRIEF
------------------------------------------------------------ Letter :1
Park Service headquarters officials identified eight special accounts
and provided us financial data for these accounts. The total value
of these accounts was about $45 million in fiscal year 1994. Of the
eight accounts, five are authorized to recover the costs of
particular in-park activities. The other three accounts are not
designed to recover costs; rather, they provide the parks with cash
and noncash benefits to be used for a variety of purposes within the
parks. In fiscal year 1994, according to data provided by the Park
Service, the cost-recovery accounts totaled $6.5 million; the
noncost-recovery accounts were valued at $38.5 million. The sources
of the funds for the five cost-recovery accounts are living history
demonstrations, reimbursements from mess (i.e., food) operations for
employees, leasing of historic properties, payments for damaged
resources in the parks, and special-use permit fees. The sources of
funds for the three noncost-recovery accounts are donations,
cooperating associations\2 that provide a variety of in-park
services, and accounts established by concessioners to rehabilitate
or construct facilities that directly support the concessioners'
services. Our comparison of the financial data provided to us by
Park Service headquarters with the data provided to us by a sample of
park units showed a number of discrepancies involving the amount of
funds in special accounts established by concessioners. According to
the information we obtained from individual park units, the amount of
money in these special accounts for fiscal year 1994 was several
million dollars higher than that reported by Park Service
headquarters. Park Service officials were able to explain most of
the differences. However, they also acknowledged difficulties in
tracking concessioners' special account funds and are in the process
of implementing a system to track the accounts.
Our review of the available documentation for expenditures from
special accounts at a judgmental sample of six park units\3 showed
that, with one exception, the expenditures were for authorized
purposes.
--------------------
\2 Cooperating associations are nonprofit, tax-exempt organizations
recognized by the Congress to aid the Park Service and other agencies
in their mission of education and service. The associations
generally operate bookstores at parks where visitors can purchase
publications and merchandise related to the theme of the park.
\3 The six park units we included in our sample were Carlsbad Caverns
National Park in New Mexico, Grand Canyon National Park in Arizona,
Mesa Verde National Park in Colorado, Sequoia and Kings Canyon
National Parks in California, Jefferson National Expansion Memorial
in Missouri, and Lowell National Historical Park in Massachusetts.
For administrative purposes, the Park Service considers Sequoia and
Kings Canyon to be one park unit and we did the same for this report.
BACKGROUND
------------------------------------------------------------ Letter :2
Over the years, the Park Service's basic mission of protecting the
national park system for the enjoyment of current and future
generations has not changed. Since the first park unit was created
at Yellowstone over 100 years ago, the system has grown to encompass
369 units covering about 80 million acres and includes parks,
monuments, and historic sites. The value of the infrastructure of
buildings, roads, bridges, utility systems, and other facilities
constructed to provide access to or to make use of natural resources
on Park Service lands has grown to an estimated $35 billion. In
addition, the Park Service's duties and responsibilities have
expanded to include protecting endangered and threatened species,
maintaining or restoring environmental quality, identifying and
assessing the effects of its own activities on the environment and
natural resources, and developing long-range plans.
Recognizing the continuing growth and popularity of the national park
system and the Park Service's increasing responsibilities, the
Congress has increased appropriations to operate and maintain the
Park Service by more than 30 percent (in constant dollars) over the
past 10 fiscal years to about $1.1 billion in fiscal year 1994.
However, despite these funding increases, we and others have shown
that the health of the national park system is deteriorating. As
recently as August 1995, we reported that the scope and quality of
services for visitors within the park system have been declining and
that many park units lack sufficient data to determine the overall
condition or trend of their cultural and natural resources.\4
The Congress and the Department of the Interior have taken measures
to help deal with the parks' deteriorating conditions. Among other
things, additional funding sources have been made available to park
units. Specifically, park units have been permitted to keep some of
the funds that are generated from in-park activities without going
through the annual congressional appropriations process. We are
referring to these funds as special account funds.
--------------------
\4 National Parks: Difficult Choices Need to Be Made About the
Future of the Parks (GAO/RCED-95-238, Aug. 30, 1995).
SOURCES AND AMOUNTS OF SPECIAL
ACCOUNT FUNDS THROUGHOUT THE
PARK SERVICE
------------------------------------------------------------ Letter :3
Park Service headquarters officials identified eight special accounts
and provided us financial data for these accounts. The total value
of these accounts was about $45 million in fiscal year 1994. Of the
eight accounts, five are authorized to recover the costs of
particular in-park activities. The other three accounts are not
designed to recover costs, but provide park units with cash and
noncash benefits to be used for a variety of purposes within the
parks. In fiscal year 1994, according to data provided by the Park
Service, the cost-recovery accounts totaled $6.5 million; the
noncost-recovery accounts were valued at $38.5 million. Following
are descriptions of each of these eight special accounts.
LIVING HISTORY
---------------------------------------------------------- Letter :3.1
The living history account is used by park units that offer special
interpretive programs or sell merchandise that interprets the history
of the park unit. For example, at Lowell National Historical Park,
tours of a restored 19th century cotton mill are provided so that
visitors can experience the actual workings of this historic
industrial facility. Park units charge for these kinds of activities
and use the funds collected to sustain the interpretive program and
the production of merchandise. In fiscal year 1994, 30 park units
used the living history account; the total amount collected was $2.2
million.
SPECIAL-USE PERMITS
---------------------------------------------------------- Letter :3.2
Special-use permits are issued by park unit managers for activities
within a park unit when a service or privilege is provided to a
visitor beyond that received by the general public. When fees are
charged, the parks are to recover and retain the costs of providing
the necessary services associated with the permitted activity. At
the park units we visited, the associated costs were usually
personnel costs of the park unit employees needed to oversee the
permitted activity. Weddings, receptions, television commercials,
and filmmaking are types of activities that required permits and
supervision by park unit personnel, and fees were charged
accordingly. In fiscal year 1994, 98 park units had special-use
fees. In total, $3.8 million in fees was collected in fiscal year
1994.
MESS OPERATIONS
---------------------------------------------------------- Letter :3.3
A park unit uses the mess operations account for collections made for
food provided by the Park Service to Park Service and state employees
in the field. These employees include firefighters and trail
maintenance crews. In fiscal year 1994, three park units used this
special account, and $68,000 was collected.
LEASING HISTORIC PROPERTIES
---------------------------------------------------------- Letter :3.4
The Park Service also leases historic properties within park units to
tenants who pay rent. The rental revenue is then used to maintain
the property. In fiscal year 1994, seven park units used this
special account, and $285,000 was collected.
DAMAGED PARK RESOURCES
---------------------------------------------------------- Letter :3.5
The damaged park resources account is used by park units to recover
from the public the cost of restoring damaged resources. When a
resource is accidentally damaged, the park unit recovers whatever
costs it can from those who damaged the resource and applies those
funds to restoring the resource. In fiscal year 1994, seven park
units used this special account, and the total amount collected was
$128,000.
DONATIONS
---------------------------------------------------------- Letter :3.6
Donations to an individual park unit include cash from the general
public that is put in the donation boxes at visitors' centers as well
as checks that are mailed by individuals, corporations, or other
groups. If a donation is not marked for a specific purpose, the park
unit manager has discretion in how to spend it. In fiscal year 1994,
the donations at 273 park units totaled $8.2 million.
COOPERATING ASSOCIATIONS
---------------------------------------------------------- Letter :3.7
Cooperating associations generally support a park unit by providing
staff at bookstores, volunteers who assist in interpretive programs,
and/or cash. Park unit managers work with cooperating association
staff to determine the types of support to be provided. Nationwide,
there are 65 cooperating associations serving almost every park unit.
In fiscal year 1994, the services and cash these associations
provided were worth $16.4 million.
CONCESSIONERS' SPECIAL
ACCOUNTS
---------------------------------------------------------- Letter :3.8
Over the past few years, the Park Service has been requiring that the
concessioners in park units establish commercial bank accounts into
which the concessioners deposit funds for improving, rehabilitating,
and constructing the facilities that directly support their services.
The use of these accounts has increased over the past few years as
park unit managers look for ways to improve the facilities that serve
visitors beyond what is normally provided through the annual
appropriations. Expenditures from concessioners' special accounts
are to be made only for improvements authorized by park unit
managers. For example, replacing a roof on a lodge could be paid for
from a concessioner's special account.
According to data from the Park Service's headquarters, in fiscal
year 1994, 21 park units had this type of account; headquarters
officials estimated that the deposits totaled $13.9 million.
However, Park Service officials acknowledged that the data were not
complete because the Park Service did not have a system in place for
fiscal year 1994 to routinely or systematically collect information
on concessioners' special accounts. In March 1995, the Park Service
introduced a computerized tracking system for concessioners' special
accounts to address this situation. Although the system is still
being implemented, Park Service officials stated that it should
provide more complete data on the number of concessioners' special
accounts and the amounts in them for fiscal year 1995.
Table 1 provides information about the eight special accounts for
which the Park Service provided us information. It shows the number
of park units that used each account, the total amount in each
account, and the legislative authority for each account.
Table 1
Special Account Information Provided by
the Park Service, Fiscal Year 1994
(Dollars in millions)
Number of
park units
using the Total Authorizing
Type of account account funds legislation
-------------------------------- ---------- -------- --------------
Living history 30 $2.2 16 U.S.C. 1a-
2(g)
Special-use permits 98 3.8 16 U.S.C. 3a
Mess operations 3 0.1 16 U.S.C. 14b
Leasing historic properties 7 0.3 16 U.S.C. 470
h-3
Damaged park resources 7 0.1 16 U.S.C. 19
jj-3
Donations 273 8.2 16 U.S.C. 6
Cooperating associations \a 16.4 16 U.S.C. 6
Concessioners' special accounts 21 13.9 16 U.S.C. 3
&20F
======================================================================
Total $45.0
----------------------------------------------------------------------
\a There are 65 cooperating associations serving almost every park
unit in the system. Many associations serve more than one park unit.
Source: The National Park Service.
INFORMATION ON FUNDS IN
SPECIAL ACCOUNTS AT 27 PARK
UNITS
---------------------------------------------------------- Letter :3.9
To provide a perspective on the amount of special account funds
available at individual park units, we gathered information on a
judgmental sample of 27 park units\5 that included 20 of the largest
parks in the national park system. The details on the amount of
funds in special accounts at these park units are included in
appendix I.
In collecting this information, we found that, except for
concessioners' special accounts, there were no significant
differences between the amount of special account funds reported by
Park Service headquarters and the amounts reported to us by the
parks. While the Park Service's headquarters reported $13.9 million
in concessioners' special accounts nationwide, the 27 park units in
the sample reported to us a total of $19.4 million--a difference of
$5.5 million. Park Service officials explained most of the
discrepancies as primarily due to park unit managers' differing
interpretations of what is to be included in concessioners' special
accounts. Table 2 compares the funds available in concessioners'
special accounts as reported by Park Service headquarters with the
amounts reported by the 14 park units in our sample that had such
accounts.
Table 2
Comparison of Park Service Headquarters'
and GAO's Data on Concessioners' Special
Accounts in 14 Park Units With 1994
Deposits
(Dollars in thousands)
Total reported by
Park Service Total reported
Park Unit headquarters by park unit
------------------------------ ------------------ ------------------
Big Bend National Park, Texas $130 $130
Everglades National Park, 0 75
Florida
Gateway National Recreation 112 112
Area, New York and New Jersey
Glacier National Park, Wyoming 719 459
Glen Canyon National 2,423 3,156
Recreation Area, Arizona
Grand Canyon National Park, 536 895
Arizona
Mesa Verde National Park, 0 44
Colorado
Mount Rainier National Park, 0 180
Washington
Olympic National Park, 116 116
Washington
Sequoia and Kings Canyon 443 426
National Parks, California
Shenandoah National Park, 171 171
Virginia
Statue of Liberty National 0 1,425
Monument, New York
Yellowstone National Park, 4,116 7,909
Wyoming
Yosemite National Park, 4,263 4,273
California
======================================================================
Total $13,029 $19,371
----------------------------------------------------------------------
We discussed the $5.5 million difference between the Park Service
headquarters' total for concessioners' special accounts and the
individual figures we obtained at the 14 park units with concession
officials at Park Service headquarters. On the basis of these
discussions, we found that the discrepancies were due to differing
interpretations among Park Service concessions officials--both at
headquarters and at the individual park units--as to what should be
counted as concessioners' special accounts.
For example, the $7.909 million in concessioners' special accounts
reported to us by a Yellowstone National Park concession official
includes funds for a cyclic maintenance program which had $3.6
million in deposits for fiscal year 1994. According to Park Service
headquarters officials, these deposits should not be considered as a
concessioners' special account because the $3.6 million is money that
is used to fulfill normal contractual maintenance requirements.
However, a Yellowstone National Park concession official told us that
this fund was established so that the concessioner could repair and
maintain the historic structures which had fallen into disrepair due
to neglect by the previous concessioner. According to the
Yellowstone National Park concession official, maintenance provided
by these funds is not routine; it is more extensive than that
required of other concessioners, such as the preservation of historic
log structures, because of the poor condition of the structures. We
have included the $3.6 million in our totals because, as indicated by
a Yellowstone National Park concession official, the expenditures
from this account are over and above normal maintenance and similar
to expenditures made from concessioners' special accounts at the
parks we visited.
According to Park Service headquarters officials, other differences
between what the park units and headquarters reported could be due to
different reporting cutoff dates between the concessioners and the
Park Service so that some deposits appeared in a preceding or
succeeding year. For example, Statue of Liberty National Monument
officials reported to us $1.425 million in concessioners' special
accounts for fiscal year 1994, while Park Service headquarters
included this amount as a fiscal year 1993 deposit.
Park Service management has been aware of the problem with tracking
concessioners' special accounts since at least May 1992. At that
time, we reported on the Park Service's inability to track accounts
set aside by concessioners to improve government-owned facilities
that they used (a forerunner to concessioners' special accounts).\6
In response to our recommendation that the Park Service develop
procedures to track these accounts, the Park Service introduced its
"Special Account Tracking System" in March 1995. Although still in
the process of implementing this system, concession officials at
headquarters thought it would improve the accuracy and consistency of
the data maintained by Park Service headquarters on concessioners'
special accounts for fiscal year 1995. Once this system is fully
implemented, we plan to review whether it is providing more accurate
information.
--------------------
\5 We included the two park units in each of the Park Service's 10
regions that had the largest operations appropriation (20 park
units). In addition, we included seven park units that had
relatively large dollar amounts in a particular special account or
used a number of different special accounts.
\6 National Park Service: Policies and Practices for Determining
Concessioners' Building Use Fees (GAO/T-RCED-92-66, May 21, 1992).
SPECIAL ACCOUNT USE WAS
CONSISTENT WITH AUTHORIZED
PURPOSES
------------------------------------------------------------ Letter :4
To determine whether special accounts were being used for authorized
purposes, we conducted detailed, on-site reviews of expenditures at
six park units. The six park units used six of the eight types of
special accounts. These park units did not receive any income from
leasing historic properties or have any damaged resources that were
subject to reimbursement. Our review showed that the special account
expenditures at the six park units were consistent with the purposes
for which the accounts were established. However, we noted that a
concessioners' special account with deposits of $299,500 had been
improperly established at one park unit. No expenditures had been
made from the account, however, and park unit officials are in the
process of taking action to correct the situation.
COST-RECOVERY
ACCOUNTS--LIVING HISTORY,
SPECIAL-USE PERMITS, AND
MESS OPERATIONS
---------------------------------------------------------- Letter :4.1
The six park units we visited had three special accounts that were
essentially for recouping the costs of specific in-park activities.
These cost-recovery accounts were for living history demonstrations,
special-use permits, and mess operations.
Two of the six park units we visited had living history accounts, and
they used most of the fee revenues to defray the salary expenses of
the park unit employees who provided special tours or educational
experiences. The remaining funds were used to purchase supplies to
support these activities.
At Lowell National Historical Park, staff provided tours of the locks
and floodgates of the canal surrounding the town and provided
interpretation for the Boott Cotton Mills Museum, including the
weaving room and interactive exhibits about the industrial
revolution. In addition, under a cooperative agreement with the
University of Massachusetts, teachers provided educational
experiences to students, including such hands-on activities as
working on an assembly line, weaving, and role-playing as immigrants
and inventors. In fiscal year 1994, the park unit collected $164,000
from the Boott Cotton Mills exhibits and the educational program with
the University of Massachusetts. As authorized, the fees from these
activities were used to pay the salaries of the teachers and the park
unit employees that provided the services and to purchase supplies to
support the activities.
Carlsbad Caverns National Park also used the living history account.
At Carlsbad, visitors are charged a fee to tour portions of the
caverns with fragile or sensitive resources that need protection or
when the number of tour participants must be limited due to physical
conditions or some other reason. For example, because touring the
Hall of the White Giant cavern requires crawling through tight
passageways and some free climbing, knee pads and gloves are
recommended, and the number of participants in each tour group is
limited to eight. In fiscal year 1994, $170,000 was collected by the
park unit in fees from these tours that were deposited into its
living history account. The fees were used to pay the salaries of
the park rangers that provided the tours.
Five of the park units we visited had issued special-use permits
during fiscal year 1994 and were collecting fees for the expenses
incurred by the park unit as a result of the activity for which the
special-use permit was issued. In fiscal year 1994, the Jefferson
National Expansion Memorial collected $76,000; Mesa Verde National
Park collected $1,000; Grand Canyon National Park collected $71,000;
Lowell National Historical Park collected $7,000; and Sequoia and
Kings Canyon National Parks collected $11,000.
The specific types of special-use activities at these park units
varied considerably. For example, the activities at Sequoia and
Kings Canyon National Parks included weddings and cabin rental
management, the activities at Grand Canyon National Park included
commercial filming and whitewater rafting, and the activities at Mesa
Verde National Park included photography workshops.
The five park units that charged for special-use permits generated
about $166,000 for fiscal year 1994 from these activities. In most
instances, the expenses incurred were the salary costs of park unit
staff who provided the special services. Other costs were for
support expenses, such as supplies. The documentation we reviewed
indicated that the expenditures supported only special-use
activities.
Sequoia and Kings Canyon National Parks used the mess operations
account for collections made for meals furnished by the Park Service
to Park Service and state employees--firefighters and trail
maintenance crews--in the field. In fiscal year 1994, Sequoia and
Kings Canyon National Parks collected $39,000 that was used to
provide meals and purchase food preparation equipment.
NONCOST-RECOVERY
ACCOUNTS--DONATIONS,
COOPERATING ASSOCIATIONS,
AND CONCESSIONERS
---------------------------------------------------------- Letter :4.2
In fiscal year 1994, the National Park Service valued the amount of
funds in noncost-recovery accounts at $38.5 million. Funds from
these accounts, which are used to provide benefits for a variety of
purposes, come from three sources--donations, cooperating
associations' donations, and concessioners' special accounts. Table
3 shows the amount of funds available during fiscal year 1994 for the
three noncost-recovery accounts at the six park units we visited.
Table 3
Donations, Cooperating Associations'
Donations, and Concessioners' Special
Accounts at Six Park Units, Fiscal Year
1994
(Dollars in thousands)
Cooperating Concessioner
Donation associations s' special
Park unit, location s ' donations accounts
-------------------------------- -------- ------------ ------------
Carlsbad Caverns National Park, $45 $392 0
New Mexico
Grand Canyon National Park, 50 1,173 $895
Arizona
Jefferson National Expansion 60 985 0
Memorial, Missouri
Lowell National Historical Park, 1 8 0
Massachusetts
Mesa Verde National Park, 8 134 44
Colorado
Sequoia and Kings Canyon 41 87 426
National Parks, California
======================================================================
Total $205 $2,779 $1,365
----------------------------------------------------------------------
Source: National Park Service accounting data and GAO-developed
information.
The Secretary of the Interior can accept donations and use them for
the purposes of the national park system. In fiscal year 1994,
donations at the six park units we visited totaled $205,000 and
included cash from donation boxes in visitors' centers or other
locations as well as donations sent directly to a park unit.
The expenditures of donated funds varied at the six park units we
visited, but all were used to further the purposes of the park
system. For example, at Carlsbad Caverns National Park, donations
were used to pay overtime salaries and purchase photography supplies.
At Grand Canyon National Park, donations were used to purchase a
computer and for search and rescue operations. The Jefferson
National Expansion Memorial used its donated funds to purchase
supplies, pay for training and travel for interpretive staff, and
provide educational displays. At Mesa Verde National Park, a
computer and printer for the park's Interpretative Division was
purchased with donated funds. Sequoia and Kings Canyon National
Parks used donated funds for a trail reconstruction project. Lowell
National Historical Park received donations in fiscal year 1994 but
reported no expenditures, choosing to spend the donations at a later
date when a particular need surfaces. Park units are authorized to
do this.
The park cooperating associations were created to aid the Park
Service in its mission of education and service. They provide
noncash benefits to park units in the form of salaries for the
nonpark personnel working in bookstores in visitors' centers,
compensation for the volunteers who help with interpretive and other
educational programs, and the publication of park unit newspapers.
The cooperating associations may also provide cash donations to the
park units.
In fiscal year 1994, the benefits from the cooperating associations
at the six park units we visited were valued at $2.8 million. With
one exception, the benefits the cooperating associations provided
supported education and service to the park units and their visitors
as authorized. For example, at the Jefferson National Expansion
Memorial, the cooperating association provided the park with 44
full-time and part-time paid cooperative staff to assist visitors in
the Museum of Westward Expansion, the Old Courthouse, the park
library, and at various other exhibits. In addition, the association
paid for travel and training for Park Service employees in the
interpretive branch for a total donation of $985,000 in fiscal year
1994.
At Grand Canyon National Park, donations valued at $1.2 million from
the cooperating association provided a stipend and paid other
expenses, such as uniforms and supplies, to students who worked
part-time in all areas of the park and paid for about seven full-time
association employees who spent about half of their time providing
information to visitors in stores run by the cooperating association.
In addition, the association provided a new trailside exhibit and
renovated the historic Kolb Studio's bookstore and art gallery.
At Sequoia and Kings Canyon National Parks, cooperating association
donations totaled $87,000 in fiscal year 1994. These donations
included salaries of 11 part-time guides and 3 part-time ticket
collectors for the cave tours, several interpretive exhibits, and
free publications, such as the park unit's newspaper. The
cooperating association also provided $3,600 toward the salary of a
seasonal park ranger. When the Park Service headquarters official
responsible for the cooperating association program visited the park,
he told association representatives that this was not an authorized
expenditure. At that time, the cooperating association discontinued
the practice.
At the other park units we visited--Lowell National Historical Park
($8,000), Carlsbad Caverns National Park ($392,000), and Mesa Verde
National Park ($134,000)--the cooperating associations also provided
salaries for bookstore staff and published the park unit's newspaper.
Included in the cooperating association's donation to Mesa Verde
National Park were funds toward the construction of a new
interpretive center near the park entrance.
Concessioners' special accounts are contractual arrangements between
the Park Service and the concessioners. These arrangements occur
when the concessioners and park unit managers agree that the
concessioners will establish commercial bank accounts that are to be
used to rehabilitate and construct the facilities that directly
support the concessioners' services. These commercial bank accounts
are established in addition to, or sometimes in lieu of, franchise
fees, which, in contrast, are deposited in the U. S. Treasury. Any
expenditures from these special accounts must be authorized by park
unit managers.
Concessioners' special accounts were established at three of the six
park units we visited--Mesa Verde National Park, Grand Canyon
National Park, and Sequoia and Kings Canyon National Parks. At these
park units, deposits to the concessioners' special accounts totaled
$1.4 million in fiscal year 1994. We found that the expenditures
from the concessioners' special accounts at these park units were
made for authorized purposes.
Mesa Verde National Park had one concessioner's special account. The
deposits for fiscal year 1994 totaled about $44,000. Expenditures
were made from this account to purchase and install bear-proof trash
cans at a government- owned, concessioner-operated campground.
Grand Canyon National Park had seven separate concessioners' special
accounts. The deposits to these accounts totaled about $895,000 for
fiscal year 1994. Expenditures were made from these accounts for
several projects, such as painting and repairing an historic railway
depot and leasing a van to transport employees' dependents to and
from the concessioner-operated day-care facility. In several
instances, funds had not yet been expended from the concessioners'
special account but were being accumulated to fund more costly
projects. For example, a concessioner's special account with a
fiscal year 1994 balance of about $9,900 was earmarked for the
construction of a backcountry toilet facility estimated to cost about
$40,000.
When we visited Grand Canyon National Park, we identified one
concessioner's special account where the concessioner had made
deposits of about $299,500 for 1994. The funds deposited into this
concessioner's special account had, in previous years, been deposited
into the U.S. Treasury as franchise fees. We noted, however, that
the deposits to the concessioner's special account had occurred
before the effective date of the agreement between the concessioner
and park unit officials to establish the account. Since then, action
has been initiated by park unit officials to remove the 1994 payments
from the concessioner's special account and deposit them into the
U.S. Treasury. In addition, park officials told us that deposits
occurring after the effective date of that agreement were going into
the concessioner's special account.
At Sequoia and Kings Canyon National Parks, the concessioner's
special account was used to replace the Grant Grove food market,
which was destroyed by fire in 1992. This was a government-owned,
concessioner-operated facility and was a major project for the park.
Construction on the building began in July of 1994 and was completed
in the spring of 1995 at a total cost of about $1.2 million.
AGENCY COMMENTS
------------------------------------------------------------ Letter :5
We provided a draft of this report to the Department of the Interior
for its review and comment. We met with officials from the Office of
the Assistant Secretary for Fish, Wildlife, and Parks, including the
Assistant to the Assistant Secretary; the Office of the Solicitor;
and the National Park Service to obtain their comments. Generally,
these officials agreed that the information provided in the report
was accurate. In response to their comments, we incorporated
technical corrections and clarifying information into this report
where appropriate.
---------------------------------------------------------- Letter :5.1
We performed our review between April 1995 and April 1996 in
accordance with generally accepted government auditing standards.
Our scope and methodology are explained in appendix II.
As requested, unless you publicly announce its contents earlier, we
plan no further distribution of this report until 30 days after the
date of this letter. At that time, we will make copies available to
interested congressional committees and Members of Congress; the
Secretary of the Interior; the Director, National Park Service; and
other interested parties. We will also provide copies to others upon
request.
Please call me at (202) 512-3841 if you or your staff have any
questions. Major contributors to the report are listed in appendix
III.
Victor S. Rezendes
Director, Energy, Resources,
and Science Issues
INFORMATION ON SPECIAL ACCOUNTS AT
SAMPLE PARK UNITS
=========================================================== Appendix I
Table I.1
Comparison of Funds in Eight Special
Accounts With Operations Funds at 27
Park Units
(Dollars in thousands)
Cooperatin
g
associatio Damaged
Concessioner ns' Living marine Leasing of Reimbursable Operations
Park unit, s' special contributi Donati farms/ Special-use resources historic mess appropriatio Percent
location accounts ons ons history permits recovered properties operations Total n base of base
-------------- ------------ ---------- ------ -------- ------------ ----------- ---------- ------------ ---------- ------------ ----------
Big Bend $130 $67 $6 \a \a \a \a \a $203 $3,603 5.63
National
Park, Texas
Carlsbad \a 392 45 $170 \a \a \a \a 607 3,616 16.79
Caverns
National
Park, New
Mexico
Chesapeake and \a 2 8 153 $21 \a \a \a 184 5,299 3.47
Ohio Canal
National
Historical
Park, D.C.,
Maryland, and
Virginia
Cuyahoga \a 8 220 \a 29 \a \a \a 257 6,348 4.05
Valley
National
Recreation
Area, Ohio
Denali \a 166 22 \a \a \a \a \a 188 6,643 2.83
National Park
and Preserve,
Alaska
Everglades 75 46 149 \a \a $32 \a \a 302 10,896 2.77
National
Park, Florida
Gateway 112 6 53 \a 107 \a \a \a 278 14,910 1.86
National
Recreation
Area, New
York and New
Jersey
George \a 10 3 \a \a \a \a \a 13 7,560 0.17
Washington
Memorial
Parkway,
Virginia and
Maryland
Glacier 459 100 27 \a 14 \a \a \a 600 7,368 8.14
National
Park, Montana
Glacier Bay \a 28 \a 101 10 \a \a \a 139 2,005 6.93
National Park
and Preserve,
Alaska
Glen Canyon 3,156 69 31 \a 137 \a \a \a 3,393 6,589 51.49
National
Recreation
Area, Arizona
Golden Gate \a 3,608 94 \a 66 \a \a \a 3,768 10,023 37.59
National
Recreation
Area,
California
Grand Canyon 895 1,173 50 \a 71 \a \a \a 2,189 12,111 18.07
National
Park, Arizona
Great Smoky \a 375 139 \a 42 2 \a \a 558 9,767 5.71
Mountains
National
Park,
Tennessee and
North
Carolina
Independence \a 133 9 \a 7 \a $2 \a 151 10,467 1.44
National
Historical
Park,
Pennsylvania
Indiana Dunes \a 13 14 \a 17 \a \a \a 44 4,851 0.91
National
Lakeshore,
Indiana
Jefferson \a 985 60 \a 76 \a \a \a 1,121 3,692 30.36
National
Expansion
Memorial,
Missouri
Lowell \a 8 1 164 7 \a \a \a 180 5,513 3.27
National
Historical
Park,
Massachusetts
Mesa Verde 44 134 8 \a 1 \a \a \a 187 3,122 5.99
National
Park,
Colorado
Mount Rainier 180 74 62 \a 7 \a \a \a 323 6,868 4.70
National
Park,
Washington
Olympic 116 83 6 \a 3 \a \a \a 208 7,283 2.86
National
Park,
Washington
Rock Creek \a \a 11 \a 4 \a \a \a 15 4,491 0.33
Park, D.C.
Sequoia and 426 87 41 \a 11 \a \a $39 604 8,795 6.87
Kings Canyon
National
Parks,
California
Shenandoah 171 53 8 \a 2 \a \a \a 234 8,058 2.90
National
Park,
Virginia
Statue of 1,425 \a 852 \a 139 \a \a \a 2,416 8,809 27.43
Liberty
National
Monument, New
York
Yellowstone 7,909 460 209 \a 480 \a \a \a 9,058 18,006 50.31
National
Park, Wyoming
Yosemite 4,273 329 376 19 80 \a \a 25 5,102 16,696 30.56
National
Park,
California
=====================================================================================================================================================
Total 19,371 8,409 2,504 607 1,331 34 2 64 32,322 213,389 15.14
-----------------------------------------------------------------------------------------------------------------------------------------------------
\a Park unit did not use this account.
Source: Park unit data.
Each year, park units receive operations moneys through the annual
appropriations process. Table I.1 compares the amount of funds in
the eight special accounts, which are not subject to the annual
appropriations process, with the operations funds at the 27 park
units. As table I.1 shows, the funds in the eight special accounts
were about 15 percent of the parks' operations budgets--ranging from
a low of 0.17 percent at George Washington Memorial Parkway to a high
of 51.5 percent at Glen Canyon National Recreation Area. For the 27
park units, the special account for concessioners was the largest
followed by the one for cooperating associations; the special account
for leasing historic properties was the smallest followed by the one
for damaged resources.
As table I.1 also shows, the number of special accounts used by each
of the 27 park units varied. For example, 3 of the park units had
one or two of the accounts, 8 park units had three accounts, 14 park
units had four accounts, and the remaining 2 park units had six or
seven of the accounts. Similarly, the total amount of funds
available to individual park units varied considerably. For example,
Yosemite National Park had six accounts totaling $5.1 million, and
Yellowstone National Park had four accounts totaling $9.2 million.
In contrast, George Washington Memorial Parkway had two accounts
totaling $3,000, and Rock Creek Park had two accounts totaling
$15,000.
OBJECTIVES, SCOPE, AND METHODOLOGY
========================================================== Appendix II
The Chairman, Subcommittee on National Parks, Forests, and Lands,
House Committee on Resources, and Senator Craig Thomas asked us to
review the availability of funds to the National Park Service that
are not subject to the annual appropriations process. Specifically,
we were requested to determine (1) the sources and amounts of special
account funds available Park Service-wide and, for a sample of park
units, the amount of special account funds that were available to
each of them and (2) whether the expenditures of funds in the special
accounts were consistent with the purposes for which those accounts
were established.
To identify the amount of funds available, we discussed the purpose
and use of the special accounts with Park Service officials and asked
them to identify accounts that (1) were maintained at the park units,
(2) were not documented as part of the Park Service's annual
appropriations process, and (3) were not earmarked for use at
particular parks units. Park Service officials identified eight
special accounts. Our work focused on these accounts.
To determine the amount of funds in special accounts throughout the
Park Service, we relied on financial information obtained from the
Office of the Comptroller in Washington, D.C. This information,
which we did not verify, was generated from the Park Service's
financial accounting system. Because the Park Service does not
maintain the special accounts for cooperating associations and
concessioners, we obtained data from sources other than the Park
Service's accounting system.
To determine the number of special accounts at individual park units
and the funds associated with each one, we judgmentally selected a
sample of 27 park units and contacted each one to obtain complete
data. This was necessary because the Park Service does not maintain
systemwide, complete data on concessioners' special accounts. Park
Service concessions management staff provided us with data that had
been forwarded to them from individual park units, but acknowledged
that it was not complete. Complete data on concessioners' special
accounts are available only at the park unit level, and obtaining
this information would entail contacting all park units within the
national park system. These park units were selected by choosing two
park units in each of the 10 regions in the Park Service. We
selected two from each region by identifying the park units with the
largest operations appropriation in fiscal year 1994. To this sample
of 20 park units, we added 7 park units that generated high revenues
in one of the special accounts or that made use of numerous special
accounts during fiscal year 1994. Because this was not a random
sample, the park units selected may not be representative of the
system as a whole.
At the time we contacted the park units, we also obtained data on the
total aid provided by the cooperating associations from the Park
Service official in charge of this program. Sometimes a single
association provided aid to several park units and reported its aid
as a single sum. In these instances, we contacted the association
representative to determine the amount of aid provided to individual
park units.
To provide examples of how the special account funds were expended
and whether the expenditures were consistent with the purpose of the
accounts, we visited 6 of the 27 sample park units--Carlsbad Caverns
National Park, Grand Canyon National Park, Jefferson National
Expansion Memorial, Lowell National Historic Park, Mesa Verde
National Park, and Sequoia and Kings Canyon National Parks. At each
of the six park units, we reviewed the relevant fiscal year 1994
accounting records, including deposit and withdrawal statements,
billing documents, purchase receipts, special-use permit charges and
associated costs, employees' overtime charges and salary costs, and
other documents supporting the expenditures of the various special
account funds.
In addition, we interviewed park unit managers, including
superintendents, budget officers, concession managers, staff and
managers in the Divisions of Interpretation and Maintenance,
administrative officers, and other officials responsible for
approving expenditures. We discussed the (1) account balances and
benefits provided by the cooperating associations and the
concessioners' special accounts, (2) sources of revenue, and (3)
authority for specific expenditures. We also observed operations at
the park units. For example, at one park unit we were told that
visitors are charged for a special museum tour, and we took this
tour.
We also interviewed concession managers, executive directors for the
cooperating associations, and other association staff. We reviewed
contracts, contract amendments, project lists, association
agreements, aid requests, and various annual reports that supported
how funds were spent. We also observed the projects funded through
these sources. For example, we were told that at one park unit, the
cooperating association redesigned the sales area of a bookstore
during 1994. We confirmed these expenditures and visited the area.
In another example, when we were told that the concessioner had
installed bear-proof trash cans in the concession-operated
campgrounds, we reviewed the expenditure receipts, toured the
campgrounds, and viewed the new receptacles.
Finally, we discussed the Park Service's use of special account funds
with officials at the Park Service headquarters in Washington, D.C.,
and at the Rocky Mountain and Western regional offices. We also
reviewed Department of the Interior Solicitor opinions, Office of the
Inspector General reports, Park Service manuals, and Park Service
Operations and Evaluations Reports. Our review was conducted from
April 1995 through April 1996 in accordance with generally accepted
government auditing standards.
MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix III
RESOURCES, COMMUNITY, AND ECONOMIC
DEVELOPMENT DIVISION
Clifton W. Fowler
John S. Kalmar, Jr.
John P. Scott
OFFICE OF GENERAL COUNSEL
Kathleen A. Gilhooly
SAN FRANCISCO REGIONAL OFFICE
D. Patrick Dunphy
Judy K. Hoovler
Jonda R. Van Pelt
*** End of document. ***