Summary: Congress requested that the Forest Service prepare a cost study for its timber program that would analyze how to achieve an annual cost reduction of at least five percent. The Forest Service's April 1993 report on timber cost efficiency discussed such areas as the overall timber program, the program's organization, the Timber Sale Program Information Reporting System, financial management, and attempts to monitor cost efficiency. In the year since the study was issued, the Forest Service has made progress toward completing 21 of 23 action items targeted for completion by October 1993 or October 1994. The results of the regional offices' cost efficiency efforts have been mixed. In addition, the Forest Service has undertaken other, nontimber initiatives, such as reorganizing and downsizing, that could improve the agency's overall efficiency. Overall, from fiscal year 1992 to fiscal year 1993, the Forest Service reduced its timber program expenses nationally by about 7.2 percent. Total annual timber program expenses declined in six of the nine regions during this period. However, six of the nine regions' timber sales programs showed a net loss when annual expenses were deducted from revenues for fiscal year 1993.
