Summary

GAO studied the need to resolve differences in procedures used by the Federal timber management agencies in appraising timber offered for sale. GAO found that certain of the valuation procedures followed by the agencies did not recognize the full value of timber end products. GAO estimates that if, in each such instance, the more appropriate procedures of one agency had been used by the other agencies, the appraised value of timber offered for sale in fiscal year 1963 and part of fiscal year 1964 could have increased by more than $3.1 million. The inaccuracies causing the underappraisals resulted from (1) not considering the value of sawlog chips, a wood by-product; (2) using inappropriate lumber pricing data; and (3) using outdated veneer prices in establishing selling values for peeler logs.