Executive summary: performance audit, Department of Natural Resources, results-based budgeting and coordination activities of the Historic Preservation Division

EXECUTIVE SUMMARY
Performance Audit
Prepared For the Budgetary Responsibility Oversight Committee
Department of Natural Resources
Results-Based Budgeting and Coordination Activities of the Historic Preservation Division

Russell W. Hinton, State Auditor

May 2002
Performance Audit Operations Division Department of Audits and Accounts

254 Washington St., S.W. Atlanta, GA 30334-8400

Background
The Historic Preservation Division (HPD) of the Department of Natural Resources (DNR) seeks to identify, protect and preserve Georgia's historic and archeological sites by providing historic preservation services and assistance to governmental agencies, private organizations, and individuals. The Commissioner of DNR serves as the federally mandated State Historic Preservation Officer (SHPO) for Georgia, which makes HPD responsible for performing certain historic preservation activities in the state on behalf of the federal government.
HPD is comprised of 36 employees (the HPD Director, the Director's Administrative Assistant, and 34 employees in five units). The five units of HPD are: the Planning and Local Assistance Unit, the Archaeological Services Unit, the Survey and National Register Unit, the Technical Services Unit, and the Management and Information Unit.
The fiscal year 2001 expenditures for HPD were approximately $3.9 million. HPD's funding included $3,092,954 (80%) in state funds and $768,823 (20%) in federal funds. HPD's fiscal year 2002 budget is approximately $3.7 million, which includes $3,021,132 (82%) in state funds and $669,093 (18%) in federal funds. The Division's Federal funds come from the Historic Preservation Fund, which is administered by the National Park Service.
Audit Issues and Findings

Issue: Comment on and evaluate the validity and reliability of the data used in the Historic Preservation Division's Results-Based Budgeting goals.
Validity HPD's Results-Based Budgeting goal and six desired results are valid indicators of its activities. HPD's desired results were recently revised and updated with the assistance of the Office of Planning and Budget. HPD's goal is directly related to HPD's purpose and HPD's current desired results are all related to its goal of identifying, protecting and/or preserving historic and archeological sites in the state. HPD's desired results measures are also very similar to activity data compiled by the National Park Service to monitor state historic preservation efforts. In addition, only three of six southeastern states contacted by the audit team had performance measures for their historic preservation activities and HPD's measures were more comprehensive than the measures reported by the other states.

Historic Preservation Division

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Reliability Actual results reported for fiscal year 2001 on two of HPD's six desired results measures were adequately supported. The actual results reported for HPD's four remaining desired results were not adequately supported; however, the audit team's calculations of actual results for these four desired results only ranged from 8% percent less to 3% more than what had been reported in the Governor's Budget Report. Problems with the numbers reported in the Governor's Budget Report were primarily due to HPD's use of estimates and weak data collection techniques.
HPD agreed to start maintaining better documentation of its calculations of actual results to support the numbers reported in the Governor's Budget Report and to provide guides so the actual results are calculated and reported consistently in future years. HPD also agreed that management would review the supporting data for desired results reported in the Governor's Budget Report to ensure that the reported numbers are properly calculated and that estimates are not used. In addition, HPD agreed to identify the cumulative nature of the three desired results that represent cumulative activity in future Governor's Budget Reports.
Issue: To what extent is there coordination between federal, state, and local government programs? How does Georgia compare to other states?
The audit team's observations, interviews with representatives of entities involved with historic preservation, and a survey of certain HPD customers all indicated that HPD does a good job of coordinating their efforts with the activities of other federal, state, and local government programs involved with historic preservation in Georgia.
HPD ranked in the top 10 states for most of the measures of activity compiled on state historic preservation operations by the National Park Service. In addition, interviews with representatives of entities involved with historic preservation in Georgia and a survey of certain HPD customers indicated that Georgia compares favorably to other state historic preservation programs.
Other Issues
HPD needs to continue efforts to reduce the processing times required for listing properties on the National Register of Historic Places. A review of listings added to the National Register during the 12-month period ending in September 2001, found that it took on average 4.2 years for a property to be listed (with a range of 1.6 years to 8.2 years).
HPD needs to continue efforts to reduce the processing times required for evaluating Environmental Reviews. A review of 46 Environmental Reviews in process at the time of this audit found that nearly 24% took longer than the allowed 30 days. (Environmental Reviews are reports prepared by outside consultants that identify the impact that a proposed construction project may have on any potentially historic resources. HPD staff read these reports to determine the anticipated impact of a project. If a project is anticipated to have an adverse impact on historic resources, HPD negotiates with the project's owner to mitigate the impact.)

For additional information or to request a copy of the Program Evaluation, please contact Paul E. Bernard, Director, Performance Audits Operations Division, at 404-657-5220

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