Restore Act: Treasury Missed Its Statutory Deadline for Establishing Procedures Governing RESTORE Act Programs and Activities. Audit Report.

摘要

Treasury did not meet a key statutory requirement to establish procedures for Trust Fund administration within 180 days after enactment of the RESTORE Act (by January 2, 2013). In October 2012, Treasury provided our office a draft Notice of Proposed Rulemaking to govern the investment and use of amounts deposited to the Trust Fund. Treasury officials previously told us that they expected to issue the draft regulations for a 30 day public comment period in November 2012 and issue the final regulations by the January 2, 2013, deadline. However, the draft regulations have not been issued for public comment due to delays in concluding the consultative process with Commerce and Interior. Among several outstanding issues to be resolved is the administration of the 35 percent share of Trust Fund receipts that are to be provided to the Gulf Coast States in equal shares for expenditure for ecological and economic restoration (hereinafter referred to as the “Direct Component”). Treasury officials informed us in March 2013 that while Treasury had been working on revisions to the draft regulations, none had been circulated outside of Treasury since the October 2012 draft. Consequently, regulations were not finalized by the mandated deadline. We were also told that certain matters with the administration of the Trust Fund were under review by the Office of Management and Budget (OMB) and the Department of Justice. The need to conclude the consultative process and finalize the RESTORE Act regulations is imperative in light of the Department of Justice’s civil settlement with the Transocean defendants, 5 the first among several defendants. Additionally, there is ongoing litigation with the other defendants that may reach settlements in 2013. Without a finalized regulation, distributing funds for eligible programs and activities authorized under the RESTORE Act may be delayed. As part of our oversight responsibilities for all projects, programs, and activities funded under the RESTORE Act, we are continuing our audit of Treasury’s implementation activities. We plan as our next focus to determine whether Treasury has established the necessary accounts and internal policies, procedures, and assignment of responsibilities so that it can promptly effect allocations from the Trust Fund in accordance with the Act as deposits are received. To the extent that the accounts, policies, procedures, and assignment of responsibilities are not yet in place, we encourage Treasury to establish them with all deliberate speed.