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| FishTails |
WVDNR Receives Federal Audit Results
For release: January 13, 2001
Contact: Hoy Murphy, Public Information Officer (304) 558-3380
A Federal audit of the West Virginia Division of Natural Resources' use of Federal Aid Grant and hunting and fishing
license money has been completed, according to DNR Director John Rader. The conclusion by the auditor that as much
as $16.8-million in license funds and lost interest money has been diverted to ineligible DNR programs during the
past seven years is being disputed by DNR.
All U.S. state and territorial fish and wildlife agencies are being audited, and West Virginia is one of 30 states
with completed audits contracted by the U. S. Fish and Wildlife Service (USFWS). The purpose of the audits is to
confirm proper use of money received through the Federal Aid in Sport Fish and Wildlife Restoration program, as
well as state hunting and fishing license money. The grant monies come from revenue generated from a federal excise
tax on hunting and fishing equipment and a portion of the federal tax on fuel used in motorboats. Federal law requires
that grant and license money be used only for programs directly related to fish and wildlife management, and any
use other than that is defined as a diversion. The audit, contracted out to the U.S. Department of Defense, Defense
Contract Audit Agency (DCAA), is the first to be conducted of these funds by the federal government in West Virginia.
DNR's Wildlife Resources Section receives approximately $4.5-million dollars of these grant monies annually, including
about $350,000 allocated to the Hunter Education program within the Law Enforcement Section.
Among the auditor's conclusions are that portions of the license money were diverted to Law Enforcement Section
and Administration Section expenses that are unrelated to fish and wildlife management, and that certain internal
accounting systems and asset management were inadequate.
The concerns about the accounting systems and asset management have been addressed and accepted by the auditor,
and no longer are in dispute. DNR is about to enter into negotiations with USFWS to reduce and resolve the remaining
audit findings and work toward a corrective action plan (CAP). Any funding still found to have been diverted will
have to be paid from other sources to the DNR license fund for fish and wildlife management programs in the state.
"These findings are now subject to review by the USFWS, which ultimately decides if they are erroneous or
legitimate and require action by the state of West Virginia," Director Rader said. "It is important to
understand that at this point, all monetary findings quoted in the final DCAA report are subject to reduction or
complete dismissal by USFWS. To believe that this amount will remain final before any negotiations have taken place
would be premature and inappropriate.
"However, this audit confirms our contention that some future source of revenue outside of hunting and fishing-related
fees must be obtained to fund non-fish and wildlife related activities that are still mandated responsibilities
of DNR," Rader said. "The continued success of West Virginia's hunting and fishing programs, which contribute
$707-million annually to the state's economy, relies heavily upon DNR's participation in the Federal Aid process,
and we are in contact with the Division of Federal Aid staff and the state legislative leadership to resolve this
situation."
**DNR** |
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