Financial Management Division, Office of Natural Resources Revenue

The Office of Natural Resources Revenue (ONRR) collects, verifies, and distributes revenues received from companies that produce minerals from Federal and American Indian leases. We assessed the efficiency of ONRR’s processes to accurately and timely collect and distribute energy- and mineral-related revenue. We focused our audit on ONRR’s Financial Management division, which has the primary revenue collection and disbursement responsibility for the agency.

 

We identified various inefficient practices and procedures that prevent Financial Management from functioning at the highest level. In addition, we found issues regarding ONRR’s information system as well as the management and processing of modifications to the system. Further, we identified potentially serious issues with ONRR’s oil price edits, negative estimates, and policies and procedures. 

 

Our report contains 17 recommendations that, if implemented, should improve ONRR’s operations and increase efficiency. ONRR concurred with all of our recommendations.