A Joint Study Report on The Parks and Wildlife Department's Commercial Fishery Programs and The General Land Office's Leases of State-Owned Lands Page: 4 of 108
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Key Points of Report
A Joint Study Report on
The Parks and Wildlife Department's Commercial Fishery Programs
and
The General Land Office's Leases of State-Owned Lands
December 2000
Overall Conclusion
Neither the Parks and Wildlife Department (Department) nor the General Land Office (Office) is recovering
the full cost of administering certain revenue-generating programs related to commercial fisheries and
surface leases of state-owned land. Lack of sound cost allocation for these programs prevents the two
agencies from adequately analyzing their cost and fee structures. In addition, the private oyster-bed
leases administered by the Department do not appear to have basic terms and conditions to protect the
interests of the State. It appears that the value of the Department's oyster-bed leases and the Office's
coastal cabin lease permits exceed the income realized by the State for these leases.
Key Facts and Findings
Parks and Wildlife Department
" The Department did not recover approximately $9.3 million of the costs for administering the
commercial fishery programs in fiscal year 1999.
" The Department estimates that it spent approximately $95,190 in fiscal year 1999 to manage and
enforce the private oyster-bed leases. During the same period, the leases earned $47,404 in
license fees and lease revenue.
" The Department manages approximately 2,327 acres of private oyster-bed leases, recovering $3
per acre per year. The estimated value of such leases is approximately $1,000 per acre, based on
the sales comparison method of appraisal performed by an independent appraiser.
General Land Office
" The Office did not recover the costs of administering four of its seven surface lease types for fiscal
years 1998 and 1999, with one lease type not recovering approximately $1 million of its costs.
However, in total, these seven lease types collect more revenue than it costs to administer them.
" The majority of the revenue collected from the leases goes to the Texas Education Agency's
Available School Fund and Permanent School Fund. The costs to administer the leases are paid
from the Office's General Revenue Fund appropriations.
" The Office issues lease permits for 435 coastal cabins. The cabin structures are built, paid for, and
maintained by the permit holders, but are owned by the State. The Office assesses an annual rent
of $0.60 per habitable square foot. The estimated value of the structures is $18 per square foot,
based on a depreciated replacement cost appraisal performed by an independent appraiser.
Contact
Susan A. Riley, CPA, Audit Manager, (512) 936-9500
C)s Office of the State Auditor
5 Lawrence F. Alwin, CPA
This audit was conducted in accordance with Government Code, Section 321.013(f).
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Texas. Office of the State Auditor. A Joint Study Report on The Parks and Wildlife Department's Commercial Fishery Programs and The General Land Office's Leases of State-Owned Lands, report, December 2000; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518067/m1/4/: accessed August 15, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.