Summary: Pursuant to a congressional request, GAO examined the Minerals Management Service's (MMS): (1) collection and disbursement of royalties and other revenues from mineral leases on federal and Indian lands; (2) mechanisms that help ensure proper collections and disbursements; and (3) initiatives to strengthen its Royalty Management Program.
GAO found that MMS: (1) collected $3.72 billion and made regular disbursements of $3.69 billion in revenues from federal onshore, Indian, and offshore mineral leases in fiscal year (FY) 1987; (2) disbursed $2.85 billion in previously escrowed offshore revenues from land within 3 miles of states' seaward boundaries in FY 1987; (3) improved audit coverage to help ensure that it made proper collections; (4) used various techniques to ensure that supporting documents for collections were accurate, timely, and in accordance with rules and regulations; and (5) initiated several actions to improve its Royalty Management Program, including payer account balance reconciliation, and computer system enhancements.
