[Final Report on Follow-up Evaluation of Policies and Procedures Related to the Rural Development Act of 1972]
[From the U.S. Government Printing Office, www.gpo.gov]
Report No. 2003-I-0060
Title: Final Report on Follow-up Evaluation of Policies and Procedures
Related to the Rural Development Act of 1972
Date: August 20, 2003
**********DISCLAIMER**********
This file contains an ASCII representation of an OIG report. No attempt has been made to display
graphic images or illustrations. Some tables may be included, but may not resemble those in the
printed version. A printed copy of this report may be obtained by referring to the PDF file or by
calling the Office of Inspector General, Division of Acquisition and Management Operations at
(202) 219-3841.
******************************
August 20, 2003
Evaluation Report
To: Assistant Secretary, Policy, Management and Budget
From: William J. Dolan, Jr.
Regional Audit Manager, Eastern Region
Subject: Final Report on Follow-up Evaluation of Policies and Procedures Related to
the Rural Development Act of 1972 (No. 2003-I-0060)
Summary of Evaluation
This report presents the results of our follow-up evaluation of the Department of the
Interior�s (DOI) policies and procedures related to the Rural Development Act of 1972
(RDA). Our objective was to determine what policies and procedures DOI had in place
to give first priority to the location of new offices and other facilities in rural areas, as
required by RDA. We performed a similar evaluation in 2002 (Attachment).
We determined that since our 2002 evaluation:
> DOI and the U.S. Geological Survey (USGS) did not revise their existing RDA
policies in keeping with the new definition of �rural� and �rural area� as found in
the �Farm Security and Rural Investment Act of 2002,� Section 6020 (Public Law
107-171). DOI and USGS still did not have procedures to ensure compliance
with the policies.
> The National Park Service (NPS) issued a new policy under Director�s Order 89
in March 2003. The new policy requires a brief justification if new facilities and
offices cannot be located in rural areas, but does not include a citation for the
definition of �rural� and �rural area.�
> The U.S. Fish and Wildlife Service (FWS) and the Bureau of Indian Affairs (BIA)
are developing their policies for RDA. However, the revised versions do not
reflect the new definition of �rural� and �rural area� as stated in the �Farm
Security and Rural Investment Act of 2002,� Section 6020 (Public Law 107-171.)
Both policies do require a justification if the facilities or offices cannot be located
in rural areas.
> The Bureau of Reclamation (BOR), the Bureau of Land Management (BLM), the
Minerals Management Service (MMS), and the Office of Surface Mining (OSM)
do not have policies on procedures and follow the guidance issued by the
Department.
Background
The RDA directed the heads of all executive departments and agencies of the
Government to establish and maintain departmental policies and procedures giving first
priority to the location of new offices and other facilities in rural areas. DOI�s policy on
RDA is found in the Departmental Manual (DM), Part 101, Chapters 3 and 4, which
describe the requirements to obtain approval for making organizational changes to
headquarters and to first- and second-level field offices.
In March 1996, the General Services Administration (GSA) issued Interim Rule D-1,
which defined �rural area� to mean:
Any area that (i) is within a city or town if the city or town has a
population of less than 10,000, or (ii) is not within the outer boundaries of
a city or town if the city or town has a population of 50,000 or more and if
the adjacent urbanized and urbanizing areas have a population density of
more than 100 inhabitants per square mile.
In April 1996, the Federal Agriculture Improvement and Reform Act of 1996 redefined
�rural� and �rural areas� to mean �a city, town, or unincorporated area that has a
population of no more than 10,000 inhabitants.�
In December 2001, DOI updated 101 DM Chapter 3, but incorporated language on RDA
from GSA�s Interim Rule D-1, rather than language from the 1996 Act.
In May 2002, Congress enacted the �Farm Security and Rural Investment Act of 2002�
that clarified the definition of �rural� and �rural area� to mean: �any area other than (i) a
city or town that has a population of greater than 50,000 inhabitants; and (ii) the
urbanized area contiguous and adjacent to such a city or town.� This definition
eliminates the confusion between interpretations of the existing language.
Scope
We surveyed DOI, and 34 of its bureaus and offices, to identify new or revised policies
and procedures for giving first priority to rural locations.
We conducted our evaluation in accordance with the President�s Council on Integrity and
Efficiency Quality Standards for Inspections. Accordingly, we conducted tests or
reviews of records that we considered necessary under the circumstances.
Discussion
Our evaluation revealed the following:
Policy for RDA. DOI and USGS have policies in place relating to the
requirements of the Rural Development Act of 1972. However, neither DOI nor
USGS have updated their policies to reflect the definition of �rural� and �rural
areas� as found in the �Farm Security and Rural Investment Act of 2002,� Section
6020 (Public Law 107-171). After the completion of our evaluation in 2002, we
sent a copy of the legislation to the Office of Planning and Performance
Management to notify them of the changes in the definition. At the time of our
2003 evaluation, however, the DM had not been changed to reflect the new
definition. The DM reflects the definition as found primarily in the GSA Interim
Rule D-1. NPS has established a new policy this year. FWS and BIA are in the
process of developing policies. The NPS, FWS, and BIA policies will require a
brief justification as to why new facilities and offices cannot be located in a rural
location.
> BOR, BLM, MMS, and OSM have no separate policies and follow the guidance
issued by the Department.
> Procedures for RDA. DOI still does not have procedures to ensure that rural
areas are given first priority when locations are selected for new offices and other
facilities. We believe that DOI should either develop procedures for
implementing RDA requirements or direct the bureaus to develop those
procedures. To ensure compliance with RDA, DOI should have a process to
document that first consideration is given to rural areas. The justification for not
selecting rural areas should also be documented.
Recommendation
We recommend that the Assistant Secretary, Policy, Management and Budget (1) update
101 DM Chapters 3 and 4 to reflect the revised definition of �rural� and �rural area� as
found in the Farm Security and Rural Investment Act of 2002 and (2) develop or direct
the bureaus to develop procedures for implementing the policies related to RDA.
In the August 13, 2003, exit conference, the Office of Acquisition and Property
Management concurred with the recommendation.
As required by the Departmental Manual (360 DM 5.3), please provide your written
comments to this report by September 22, 2003. Your response should be addressed to
Mr. Roger La Rouche, Assistant Inspector General for Audits (MS-5341-MIB) and
should state concurrence or non-concurrence with the finding and recommendations,
including specific reasons for any non-concurrence, and provide information on actions
taken or planned, including target dates and titles of officials responsible for
implementation.
This report will be listed in our semiannual report to Congress, as required by Section
5(a) of the Inspector General Act (5 U.S.C. app. 3).
Attachment
May 8, 2002
Advisory Report
To: Assistant Secretary, Policy, Management and Budget
From: Robert Romanyshyn
Regional Audit Manager, Eastern Region
Subject: Final Advisory Report on Evaluation of Policies and Procedures Related to the
Rural Development Act of 1972 (No. 2002-I-0034)
Summary of Evaluation
This report presents the results of our evaluation of the Department of the Interior�s (DOI)
policies and procedures related to the Rural Development Act of 1972 (RDA). Our
objective was to determine what policies and procedures DOI had in place to give first
priority to rural areas when locating new offices and other facilities, as required by RDA.
We determined that:
> DOI and the U.S. Geological Survey (USGS), 1 of 35 bureaus and offices surveyed,
had policies (see the Appendices) regarding RDA. They did not, however, have
procedures to ensure compliance with the policies.
> DOI had established 396 facilities in 270 locations in the last 5 years. Of the 270
locations, 197 (73 percent) were located in rural areas (areas with a population of
50,000 or less). DOI�s decision to place facilities in rural areas was influenced by its
mission, rather than any awareness of the requirements of the RDA.
Background
The RDA directed the heads of all executive departments and agencies of the Government to
establish and maintain departmental policies and procedures giving first priority to rural areas
when determining the location of new offices and other facilities. DOI�s policy on RDA is
found in the Departmental Manual (DM), Part 101, Chapters 3 and 4, which describe the
requirements to obtain approval for making organizational changes to headquarters and to
first- and second-level field offices. The October 1990 DM policy on RDA defined �rural
areas� as:
An area outside the outer boundary of any city having a population of 50,000
or more, and any adjacent urban areas with a population density of more than
100 persons per square mile.
In March 1996, the General Services Administration (GSA) issued Interim Rule D-1, which
defined �rural� and �rural area� to mean:
Any area that (i) is within a city or town if the city or town has a population of
less than 10,000, or (ii) is not within the outer boundaries of a city or town if
the city or town has a population of 50,000 or more and if the adjacent
urbanized and urbanizing areas have a population density of more than 100
inhabitants per square mile.
In April 1996, the Federal Agriculture Improvement and Reform Act of 1996 redefined
�rural� and �rural areas� to mean �a city, town, or unincorporated area that has a population
of no more than 10,000 inhabitants.�
In December 2001, DOI updated 101 DM, but incorporated language on RDA from GSA�s
Interim Rule D-1, rather than language from the 1996 Act.
Scope
We surveyed DOI and 35 bureaus and offices to identify policies and procedures for giving
first priority to rural locations. We also requested information on new offices and other
facilities that were leased or constructed between October 1, 1996 and December 31, 2001.
We defined �facility� to be any unit that had staff assigned full time. We asked whether
consideration was given to RDA in the selection of new locations. We also asked whether
there was any documentation supporting that consideration was given to RDA and any
written justification if rural areas were not selected.
We received responses from eight bureaus and four offices within DOI. We matched the city
and state from the responses to data from the 2000 census to determine the populations of the
areas where new facilities were located. We noted that in some instances, multiple facilities
had been located in the same places, which explained the difference between the number of
facilities and the number of locations.
We conducted our evaluation in accordance with the President�s Council on Integrity and
Efficiency Quality Standards for Inspections. Accordingly, we conducted tests or reviews of
records that we considered necessary under the circumstances.
Discussion
Our evaluation revealed the following:
> Policy for RDA. The current DOI policy is a restatement of RDA requirements and
GSA�s Interim Rule. The DOI policy should declare that DOI will give first
consideration to rural areas when locating all new offices and other facilities and
clearly direct the bureaus to consider RDA when establishing new offices and other
facilities. The USGS policy is outdated. USGS has a 1993 policy similar to the DOI
policy in the DM prior to the December 2001 revision. USGS did not update its
policy when the DM was revised in December because USGS officials were not
aware of the revision.
> Procedures for RDA. DOI and its bureaus do not have procedures to ensure that
rural areas are given first priority when locations are selected for new offices and
other facilities. We believe that DOI should either develop procedures for
implementing RDA requirements or direct the bureaus to develop those procedures.
To ensure compliance with RDA, DOI should have a process to document that first
consideration is given to rural areas. The justification for not selecting rural areas
should also be documented.
> DOI Consideration of RDA. Of the 270 locations selected for new offices or other
facilities within the past 5 years, 197 locations, or 73 percent, had populations of
50,000 or less (the general definition of �rural area� in pending legislation�HR
2646, the Agriculture, Conservation, and Rural Enhancement Act of 2002). The
mission of DOI influenced the placement of the facilities in rural areas rather than the
requirements of RDA.
> Updating RDA Policy. DOI did not update the DM regarding policy on RDA in a
timely manner. In fact, DOI did not have a process for updating the DM to reflect
changes resulting from the 1996 Act. Rather, DOI updated its policy in December
2001as part of revising the DM for the DOI website. When making the December
2001 revision, however, DOI used GSA�s Interim Rule D-1 instead of the provisions
in the 1996 Act. We also determined that the process for revising the DM in
December 2001 was not clearly defined. Two employees in the Office of Planning
and Performance Management (PPP) maintain the DM. Other offices and bureaus,
however, did not notify PPP of all legislative changes affecting the DM. The Office
of Acquisition and Property Management commented on the December 2001 revision
at the request of PPP, although it is not clear which office should have been
responsible for revising the DM in 1996.
> Pending Revisions to RDA. The enactment of proposed legislation and changes to
GSA�s Interim Rule are anticipated within the coming months. Congress has
proposed legislation that will affect the definition of �rural� and ultimately require
revisions to the DM. The Agriculture, Conservation, and Rural Enhancement Act of
2002 (HR 2646) proposes a general definition of �rural and rural area [to] mean a
city, town, or unincorporated area that has a population of 50,000 inhabitants or less.�
This definition eliminates the confusion between interpretations of the existing
language. In addition, GSA has indicated that it plans to revise its definition of
�rural� and �rural area� in the spring of 2002. These two proposed changes should be
monitored and the final versions used to revise the DM to reflect the new definitions.
In the April 25, 2002 exit conference, the Office of Acquisition and Property Management
concurred with the contents of the report. A response to the Office of Inspector General is
not required, since this report does not contain any recommendations.
This advisory report will be listed in our semiannual report to Congress, as required by
Section 5(a) of the Inspector General Act (5 U.S.C. app. 3).
NOTE: The Office of Inspector General has removed the two Appendices from Report
No. 2002-E-0034 included here as an attachment.
P.L. 92-419, as amended
The Consolidated Appropriations Resolution, 2003 (Public Law 108-7, �638) requires the Inspector
General of each department to submit a report to the Committee on Appropriations detailing the
department�s policies and procedures to give first priority to the location of new offices and other facilities
in rural areas.
3 41 CFR Ch 101, Subchapter D, Appendix - Temporary Regulations
4 7 U.S.C. 1926
42 U.S.C. 3122
The Treasury and General Government Appropriations Act of 2002 (P.L. 107-67, � 647, 115.Stat.
514(codified at 5 U.S.C. � 5303 note)) requires the Inspector General of each department to submit a report to
the Committee on Appropriations detailing the department�s policies and procedures to give first priority to
rural areas when locating new offices and other facilities.
3 41 CFR Ch 101, Subchapter D, Appendix - Temporary Regulations
4 7 U.S.C. 1926
4
ATTACHMENT