sources issues and shall meet at least quarterly. DoD Components shall participate to carry out this Directive and goals of the DoD natural resources program. The Heads of the Military Services each shall appoint one representative and one alternate to the DNRC. The DNRC shall:

(1) Provide technical support to the ASD(P&L) in natural resources areas. (2) Recommend policy and program improvements.

(3) Assist in conducting the Secretary of Defense Natural Resources Conservation Awards Program.

(4) Coordinate the natural resources management program among DoD Components.

(5) Conduct periodic natural resources conferences or training opportunities for DoD employees.

(6) Identify and coordinate natural resources research activities and needs and present them DUSD(R&AT) each year.

to

§ 265.7 Information requirements.

the

Information requirements of the ASD(P&L) shall be met by the Heads of the Military Services each year by January 15 under Report Control Symbol DD-P&L(A)1485.

APPENDIX-INTEGRATED NATURAL RESOURCES MANAGEMENT

A. Integrated Planning

1. Integrated natural resources management plans shall be maintained for properties under DoD control. These plans shall guide planners and implementors of mission activities as well as natural resources managers.

2. The plans shall be coordinated with appropriate Federal, State, and local officials with interest or jurisdiction in accordance with 32 CFR part 243 and with planners of DoD activities that impact on the natural resources. Conversely, new and continuing mission activities that impact on natural resources shall be coordinated with appropriate natural resources managers.

3. Natural resources management plans shall be continually monitored, reviewed annually, and revised by DoD natural resources management professionals. They shall be approved in accordance with DoD Components' procedures at least every 5

years.

4. The natural resources management planning process shall invite public participation.

5. An integrated natural resources management plan shall meet the following criteria:

a. Natural resources and areas of critical or special concern are adequately addressed from both technical and policy standpoints. b. The natural resources management methodologies shall sustain the capabilities of the natural resources to support military requirements.

c. The plan includes current inventories and conditions of natural resources; goals; management methods; schedules of activi ties and projects; priorities; responsibilties of installation planners and decisionmakers, 4 monitoring systems; protection and enforcement systems; and land use restrictions, limitations, and capabilities.

d. Each plan segment or component (ie., land, forest, fish and wildlife, and outdoor recreation) exhibits compatible methodologies and goals.

e. The plan is compatible with the instal-ra lation's master plan and pest management program under DoD Directive 4150.7.1

6. A determination that the public may not have access to use natural resources under DoD control shall be included and explained in the applicable integrated natural resources management plan.

7. The environmental impact analysis for any proposed activity or project shall include an analysis of the compatibility of the proposal's impacts with affected natural resources management plans and objectives. Only after necessary revisions to manage ment plans are made shall the new activity begin.

8. The planning requirements of DoD Directive 4710.12 may be met within the inte grated natural resources plan.

9. Integrated natural resources manage ment plans shall be a primary consideration during the master planning process and for land use and development decisions.

B. Natural Resources Management Plan The integrated natural resources plan shall implement the following policies and requirements for each applicable program

area:

1. Land Management

a. DoD lands shall be managed to support military activities, improve the quality of land and water resources, protect wetlands

1 Copies may be obtained, if needed, from the U.S. Naval Publications and Forms Center, Attn: Code 1062, 5801 Tabor Avenue, Philadelphia, PA 19120.

2 See footnote 1 to paragraph A.2.

and floodplains and their functions, abate nonpoint sources of water pollution, conserve lands suitable for agriculture, control noxious weeds, and control erosion.

b. Costs for maintaining grounds shall be minimized by providing the least amount of mowed areas and special plantings necessary to accomplish management objectives and by the use of low maintenance species, agricultural outleases, wildlife habitat, and tree plantings.

c. Land management is an important use of appropriated funds. Also, pursuant to 10 U.S.C. 2667(d) revenues from the agriculture and grazing outlease program are available for:

(1) Administrative expenses of agricultural leases.

(2) Initiation, improvement, and perpetuation of agricultural outleases.

(3) Preparation and revisions of natural resources management plans.

(4) Implementation of integrated natural resources management plans.

d. When appropriate, land management plans shall address soils, water resources, soil and water conservation, wetlands and floodplains, grounds maintenance, landscaping, agricultural uses and potential, fire management, rangeland conditions and trends, areas of special interest, and management for multiple use.

e. Soil capabilities, water management, landscaping, erosion control, and conservation of natural resources shall be included in all site feasibility studies and in project planning, design, and construction. Appropriate conservation work and associated costs shall be included in project proposals and construction contracts and specifications. Such studies and work shall be coordinated with appropriate natural resources management professionals and plans.

f. Irrigation shall be limited to areas where it is essential to establish and maintain required vegetation or when an agricultural outlease contract allows it.

g. Appropriate natural resources conservation measures shall be included in outlease provisions.

h. Landscaping shall be functional in nature, simple and informal in design, compatible with adjacent surroundings, and complimentary to the overall natural setting of the area.

i. Land conditions, soil capability, and erosion status shall be monitored for all lands subject to disturbance (e.g., maneuver areas, commercial forest areas, and agricultural outleased areas). The data and analyses obtained shall be used in planning, environmental analyses, and decisionmaking at all levels of command.

2. Forest Management

a. DoD forest lands shall be managed for sustained yield of quality forest products,

watershed protection, wildlife habitat, and other uses that can be made compatible with mission activities.

b. Commercial forestry activities shall be commensurate with potential financial re

turns.

c. Forest products shall not be given away, abandoned, carelessly destroyed, used to offset costs of contracts, or traded for products, supplies, or services. Forest products may be used for military training. Individuals may be allowed to collect noncommercial or edible forest products if that use is addressed in the management plan for the areas involved. Forest products may be harvested to generate electricity or heat only if the Military Department's forestry account is paid fair market value.

d. Planned forest products sales shall continue on land reported as excess until actual disposal or transfer occurs. When forested areas are slated to be public parks or used for outdoor recreation, clearcutting is prohibited. However, thinning, intermediate cuttings, and salvage cuttings shall be accomplished if the management plan calls for such activity within the next 5 years. That portion of the proceeds from sales of land that is attributable to the value of standing timber on the land sold shall be deposited in the Military Department's forestry account.

e. Accounting and reporting for the proceeds and costs of the commercial forestry program are contained in DoD Instruction 7310.5. Costs associated with management of all forested areas (noncommercial and commercial) are valid uses of appropriated funds as well as proceeds from agricultural outleases and forest product sales.

f. When appropriate, natural resources management plans shall include current forest inventories, conditions, trends, and potential uses; analysis of soil data for forest potential; goals; protection and enforcement methods; maintenance of forested areas and access roads; improvement methods; harvesting and reforestation methods and schedules; and management for multiple use.

3. Fish and Wildlife Management

a. Lands and waters suitable for management of fish and wildlife resources shall be managed to conserve wildlife resources for the benefit of the public. Nongame as well as game species shall be considered when planning activities.

b. Endangered and threatened species and their habitats shall be protected and managed according to the Endangered Species Act and implementing U.S. Fish and Wildlife Service (FWS) regulations and agree

3 See footnote 1 to paragraph A.2.

ments. Management plans for installations with endangered species shall include:

(1) Coordinated protection and mitigation measures.

(2) Appropriate affirmative methods and procedures necessary to enhance the population of endangered species.

(3) Procedures and responsibilities for consulting with the FWS prior to funding or conducting any action likely to affect a listed species or its critical habitat.

c. The Sikes Act provides a mechanism whereby the Departments of Defense and the Interior and host States cooperate to plan, maintain, and manage fish and wildlife on military installations. Agreement by all 3 parties regarding the fish and wildlife management plan for an installation makes that plan a cooperative plan pursuant to 16 U.S.C. 670 et seq. A cooperative plan shall be adopted by an installation commander only after ensuring its compatibility with the rest of the integrated natural resources management plan.

d. Hunting, fishing, and trapping may be permitted within the carrying capacity of wildlife habitats. Harvesting of wildlife from DoD installations or facilities shall be done according to the fish and game laws of the State or territory in which it is located and under 10 U.S.C. 2671. Special permits shall be issued, in addition to required State and Federal permits or licenses, for fishing, hunting, or trapping on DoD property.

e. Hunting, fishing, and trapping fees may be collected under the authority of the Sikes Act to recover expenses of implementing a cooperation plan. The same Sikes Act fee shall be charged for a particular use to all users at a particular installation except senior citizens, children, and the physically handicapped. Exceptions to this policy may be granted by the Heads of Military Services. Additional recreation fees may be collected under policies in DoD Directive 1015.6 and DoD Instruction 1015.2.5

f. Criteria and procedures for hunting, fishing, and trapping permits and fees shall be included in management plans. Fees collected under the authority of 16 U.S.C. 670 et seq. shall be used only to defray the costs of the fish and wildlife management program at the installation collecting the fees. Collected fees shall be accounted for and reported according to instructions from the Comptroller, Department of Defense (C, DoD), under a special fund entitled "Wildlife Conservation"-X5095. Unobligated balances shall be accumulated with current fee collections, and the total amount accumulated at an installation shall be available for obligation as apportioned by the Office of Management and Budget (OMB).

See footnote 1 to paragraph A.2. 5 See footnote 1 to paragraph A.2.

g. Whenever hunting, fishing, or trapping is allowed on DoD installations, enforcement of wildlife laws shall be addressed in the fish and wildlife management plan and carried out by trained enforcement officials under the direction of or in coordination with the wildlife manager.

h. The suitability of a military installation for fish and wildlife management shall be determined after consulting with the FWS and host State. Each installation shall be classified as one of the following:

(1) Category I-Installations with land and water resources suitable for fish and wildlife conservation. Each Category I in stallation shall maintain a wildlife manage ment plan according to this part.

(2) Category II-Installations that lack adequate land and water resources for feasi ble fish and wildlife conservation.

i. The number of users of fish and wildlife resources may be limited on a daily or sea sonal basis. Membership in an organization including rod and gun clubs, shall not be prerequisite for or get priority in receiving permits.

j. Habitat management is the basic means of improving wildlife resources. Introduc tion and reintroduction of species shall occur only in coordination with appropriate agencies and in accordance with a coopera tive plan. When predator or animal damage control is a necessary part of natural resources management or mission perform ance, it shall be accomplished according to the cooperative plan, relevant laws and reg ulations, and in coordination with adjoining land managers.

k. Fish and wildlife conservation shall be considered in all site feasibility studies and project planning, design, and construction Appropriate conservation work and associat ed funding shall be included in project proposals and construction contracts and speci fications.

1. Priority shall be given to entering into contracts for services that implement wildlife management or enforce wildlife laws with Federal and State Agencies with responsibility for wildlife conservation.

m. Where appropriate, natural resources management plans shall address habitat management and enhancement, current wildlife and fish inventories and population trends, endangered and other special species management, game and nongame species management, access policy and user program, administration of user fee program. law enforcement, cooperating agencies' responsibilities, and multiple use manage

ment.

4. Outdoor Recreation

a. Whenever practicable, DoD lands with suitable resources shall be managed to conserve and use natural resources for the out

door recreation opportunities of present and future generations. The policies and procedures herein apply to outdoor recreation programs as defined in § 265.3 and supersedes those in DoD Directive 1015.6 and DoD Instruction 1015.2.

b. Conservation of outdoor recreation reources shall be considered in all plans, prorams, site feasibility studies, and project lanning and design.

c. Installations having resources suitable or outdoor recreation other than hunting, ishing, and trapping are encouraged to deelop cooperative agreements or plans with ther Federal Agencies and appropriate tate Agencies to facilitate the development nd management of those programs.

d. Public access to DoD properties for outoor recreation shall be allowed whenever ompatible with public safety and mission ctivities. User fees may be collected to reover expenses of managing natural reources for outdoor recreation, and access uotas may be established to reflect the carying capacity of the areas involved. Public utdoor recreation opportunities shall be quitably distributed by impartial proceures, such as a first-come, first-served basis r by drawing lots. When public access must e withheld, that determination shall be exlained in the natural resources manageient plan.

e. Off-road vehicle use shall be managed > protect natural resources, promote afety, and avoid conflicts with other uses f DoD properties. Use of off-road vehicles hall be monitored and evaluated regularly y natural resources management profesionals. All land and water areas shall be losed to such use unless an environmental npact analysis in accordance with 32 CFR art 214 has been completed and the use is pecifically approved and regulated. Specific reas that shall not be used by recreational ff-road vehicles are those:

(1) Restricted for security or safety pur

joses.

(2) Containing fragile geological and soil conditions, flora or fauna, or other natural characteristics.

(3) With significant archeological, historical, paleontological resources.

(4) Designated as wilderness or scenic

areas.

(5) Where noise would adversely affect other users, wildlife, or adjacent communities. =f. Whenever appropriate, outdoor recreation plans shall address inventories, trends, and management of resources suitable for outdoor recreation; aesthetics; development of opportunities and potential uses; potential user groups and access policy; user fee program; user ethics programs; and multiple use management.

5. Special Areas

Areas on DoD installations that contain natural resources that warrant special conservation efforts shall be identified. After appropriate study and coordination, such areas may be designated as Special Interest Areas. Upon such designation, the integrated natural resources management plan for the installation shall address the special management necessary for the area.

PART 266-AUDITS OF STATE AND LOCAL GOVERNMENTS

Sec.

266.1 Purpose. 266.2 Applicability. 266.3 Definitions.

266.4 Policy.

266.5 Responsibilities. 266.6 Cost of audits. 266.7 Effective date.

AUTHORITY: Single Audit Act of 1984, Pub. L. 98-502, 98 Stat. 2327; 31 U.S.C. 7501 note. SOURCE: 53 FR 24066, June 27, 1988; 53 FR 26246, July 12, 1988, unless otherwise noted.

§ 266.1 Purpose.

This part:

(a) Implements Pub. L. 98-502 and OMB Circular No. A-128 to establish audit requirements for State and local governments that receive Federal financial assistance.

(b) Assigns responsibilities within the Department of Defense for monitoring compliance with those requirements.

§ 266.2 Applicability.

This part applies to the Office of the Secretary of Defense (OSD); the Inspector General, Department of Defense (IG, DOD); the Military Departments; the Defense Agencies; and DOD Field Activities (hereafter referred to collectively as "DOD Components") that provide Federal financial assistance to State and local governments.

§ 266.3 Definitions.

Cognizant Agency. The Federal Agency assigned by OMB to carry out the responsibilities described in OMB Circular No. A-128.

Desk Review. A review of an audit report performed by the cognizant audit organization at its offices to de

termine whether the audit report meets the requirements of Pub. L. 98502 and OMB Circular No. A-128.

Federal Financial Assistance. Assistance provided by a Federal Agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals. Funds paid by the National Guard Bureau to States under facilities' operation and maintenance agreements do not constitute "Federal financial assistance" for purposes of Pub. L. 98-502 and OMB Circular No. A-128.

Local Government. A unit of local government within a State, including a county, borough, municipality, city, town, township, parish, local public authority, special district, school district, intrastate district, council of governments, and any other instrumentality of local government.

Non-Federal Auditor. A State or local government auditor who meets the standards on independence specified in generally accepted Government auditing standards or a public accountant who meets such standards' independence.

Qualtiy Control Review. A review of the audit report and supporting work papers of the non-Federal auditor to assess compliance with OMB Circular No. A-128.

State. Any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Somoa, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, any instrumentality thereof; and any multistate, regional, or interstate entity that has governmental functions, and any Indian tribe.

§ 266.4 Policy.

The DOD Components shall rely upon the use financial and compliance audits by non-Federal auditors under Pub. L. 98-502 and OMB Circular No. A-128 in the oversight of Federal financial assistance provided to State or local governments. The DOD Components, however, may provide for additional audits of such assistance when

required by regulation or to ensure effective use of such assistance. Such additional audits include economy and efficiency audits, program results audits, and program evaluations. Any additional audit effort shall be planned and carried out in such a way as to avoid duplication and shall be separately funded.

§ 266.5 Responsibilities.

(a) The Inspector General, Depart ment of Defense (IG, DOD) shall:

(1) Serve as the DOD senior officia under OMB Circular No. A-128 fo policy guidance, direction, and coordi nation with DOD Components and other Federal Agencies on single-audi matters.

(2) For State and local government for which OMB has assigned DOI cognizance, do the following:

(i) Ensure that audits are made an reports are received in a timely manner and in accordance with the re quirements of OMB Circular No. A 128.

(ii) Provide technical advice and liai son to State and local government and non-Federal auditors.

(iii) Make desk reviews of all report received, and also make quality con trol reviews of selected audits made by non-Federal audit organizations and provide the results, when appropriate, to other interested organizations.

(iv) Inform other affected Federal Agencies and appropriate law enforce ment officials of any reported illegal acts of irregularities.

(v) Advise the recipient of audits that have been found not meeting the requirements of OMB Circular No. A

128.

(vi) Coordinate, to the extent practicable, audits requested by DOD Components, in addition to those required, by OMB Circular No. A-128.

(vii) Oversee the resolution of audit findings and recommendations that affect DOD programs and those findings affecting programs of more than one Federal Agency.

(3) For other State and local governments, receive and distribute copies of single-audit reports to appropriate DOD Components for appropriate