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<br />0373 <br /> <br />. <br /> <br />. <br /> <br />Oblective, Scope. and Methodology of this Report <br /> <br />The primary objective of this report is to ascertain how <br />the reco~mendations of the Office of th~ Inspector General and <br />its predecessor regarding the timely recovery of billions of <br />dollars invested in six major water projects were received by <br />the Department of the Interior. To accomplish this, we <br />reviewed each audit report, documented its disposition by the <br />department. and identified the officials responsible for audit <br />fOllow-up. <br /> <br />The scope of the study is almost exclusively based upon the <br />written records of the department. ffi;F submitted 33 Freedom of <br />Information Act requests to obtain the documents necessary to <br />get the complete picture of the disposition of the audit <br />recommendations. In several instances, portions of documents <br />were denied to NWF on the basis of the exemption provisions of <br />FOIA. <br /> <br />Information on environmental impacts of projects is drawn <br />from the Bureau's own environmental impact statements. <br />References to such impacts are not intended to represent the <br />Federation's definitive views on the environmental effects of <br />these projects, but rather simply to illustrate the <br />environmental dimension to Federal investment in the <br />Reclamation program. <br /> <br />Federation staff have attempted to update the IG's original <br />dollar estimates wherever possible and appropriate. This has <br />been done to accommodate changes in costs, construction <br />schedules, or interest rates since the time period covered by <br />each audit. In other instances, most notably the Pick-Sloan <br />audit, we have attempted to develop reasonable dollar estimates <br />where none was included in the original audit report. Where <br />such updates and estimates have been performed by N\~. we have <br />spelled out any necessary assumptions: clearly identified any <br />revised estimates as such; and appended our arithmetic <br />computations. Each of the seven audit reports are reviewed in <br />separate chapters arranged in the order of their release by the <br />Inspector General. <br /> <br />We have summarized our principal findings and resulting <br />recommendations in the next chapter. The most disturbing <br />finding is that the Department of the Interior has failed to <br />follow the recommendations of the Inspector General that would <br />have placed its rate-making and repayment practices on a <br />sounder business-like basis. It appears to us that in many <br />respects the Department's policy continues to minimize cost <br />recovery. <br /> <br />7 <br />