General Land Office and Veterans' Land Board
A Management Control Audit of the General Land Office and Veterans' Land Board
November 1996
SAO Report No. 97-008
Overall Conclusion
The General Land Office and Veterans Land Board have management control systems which provide reasonable assurance that their goals and objectives are met. A need exists, however, to enhance funds management planning and to improve planning and monitoring for grant and contract administration. The Veterans Land Board needs to formally address long-range planning issues associated with the $990.6 million land loan program and the $964 million housing loan programs. Review of the $3 million Coastal Oil-Spill Simulation System and the $1.3 million Funds Management Information System indicates a need to improve planning and monitoring processes for grant and contract administration.
Key Facts and Findings
The Veterans Land Board (Board) needs to formally address long-range issues pertaining to the future of the land and housing programs. Although the Board has indicated that its goal is to eventually make land loans without issuing bonds, no formal plan outlines how this will be achieved. Possible legal restrictions on the use of funds and alternative uses of the $330 million in assets in the land program need to be evaluated. Plans to address both the anticipated downsizing of the veterans housing programs and the continuing role of the administrator to service outstanding loans would help to ensure continuity for participants in these programs.
Ownership of the Coastal Oil-Spill Simulation System and responsibility for operating costs were not finalized prior to construction start-up. A $1.5 million matching grant for the General Land Office's share of the project was paid in advance of construction, and contractual provisions to monitor expenditures were lacking.
Development of the Funds Management Information System is two years behind schedule. The delay has caused management to rely on less sophisticated tools to plan and manage the Veterans Land Board and Coastal Protection funds.
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