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Summary

Pursuant to a requirement in the FY 2003 omnibus appropriations bill, we issued our final audit report on DOT's compliance with policies and procedures for giving first priority to the location of new offices and facilities in rural areas, as directed by the Rural Development Act of 1972. For the 49 facilities DOT acquired from March 1, 2002, through May 31, 2003, DOT met the act’s objective by locating 27 facilities (55 percent) in rural areas. However, for the 22 facilities located in urban areas, DOT documented consideration of rural locations for only three facilities. We recommended that the Assistant Secretary for Administration work with the Operating Administrations to implement a way to ensure compliance with the act when new facilities are not located in rural areas. DOT concurred with our recommendation and agreed to take corrective action by December 31, 2003.