Interior needs to improve data-sharing capabilities, GAO says

The Interior Department’s oversight of oil and gas development on federal and Tribal lands is suffering from deficient data-sharing processes, according to a Government Accountability Office report published Friday. 

The weak data systems are impacting Interior’s ability to lease land, verify accurate production reporting and review bonds to ensure it can cover cleanup costs. The auditors conducted the review over a three-year period starting in 2023, and the process included interviews with top officials, such as the agency’s CIO and chief data officer. 

GAO found that the agency relies on manual data entry and has an inoperable system that can’t receive and store reports. In some cases, the agency’s bureaus do not adhere to policies requiring documented data-sharing agreements. There are consequences for dependence on manual processes and skipping over documentation, such as an increased chance of typos, data inconsistencies and a heightened chance of security and privacy-related incidents. 

“Interior has also missed opportunities to enhance accountability and data governance, address the challenges of manual processing, and create clear rules to allow for better collaboration and information flow,” GAO said in its report. 

The auditing group recommended the secretary develop an agencywide performance management strategy featuring measurable goals and time frames for improvements and retirement of manual processes. The watchdog said the secretary should ensure that bureau officials formally document data-sharing agreements, too. The agency concurred with the two recommendations, according to the report. 

The focus on data-sharing at Interior comes as the agency doubles down on an ongoing modernization push broadly. 

Recent projects have brought robotic process automation (RPA) tools closer to the core of procurement and contracting processes. The agency has leaned into emerging technologies, like generative and agentic AI, as well. 

But the path to modernized systems and processes hasn’t always been smooth. 

The agency’s inspector general found that Interior had misclassified $40 million worth of IT purchases from fiscal 2022 to 2024, increasing the likelihood of redundant purchases and breach risks. 

Interior has also undergone significant workforce changes. Most recently, the agency has worked to centralize its IT infrastructure and compliance functions, moving IT staff to its headquarters. 

Data modernization has been an underlying challenge as inroads were made in other areas. In 2021, GAO highlighted the impact of Interior’s poor data practices, citing rising costs and inefficiencies. In its most recent report on Interior, the auditors found that the agency spent upwards of $200 million from 2021 to 2025 as part of its work to modernize data systems. 

While some progress has been made, challenges remain, as identified by GAO’s findings. 

“Development of oil and gas resources on federal lands helps supply the U.S. with energy and generates billions of dollars annually in revenues,” the auditors said, illustrating the stakes of improvement.