This request set the scope for our audit. 



Background 



NCHU is the maximum number of clients actually served by an outfitter in any single 

 year. It limits the number of clients an outfitter may service. Once NCHU is designated, 

 an outfitter cannot exceed, exchange, trade, or substitute between categories without 

 MBO approval. The MBO established three general categories in which an outfitter can 

 designate NCHU: 



Category 1 - nonresident, big game, outfitter-sponsored 

 Category 2 - big game, non-outfitter-sponsored 

 Category 3 - non-big game 



Outfitters must document and maintain cUent logs for verifying NCHU. 



Audit Findings 



Based on our review of NCHU activities, we made seven recommendations and two 

 conclusions. The following summarizes our initial audit findings. 



Prior Audit Recommendation #1 



We recommend the MBO implement a system for monitoring and reporting on NCHU 



activity. 



Prior Audit Recommendation #2 



We recommend the MBO verify all NCHU designation forms and document actual base 



chent levels. 



Prior Audit Recommendation #3 



We recommend the MBO comply with statute by establishing a process for adjusting 



NCHU according to the three-year "use-it-or-lose-it" law. 



Prior Audit Recommendation #4 



We recommend the MBO establish a high priority for NCHU responsibilities. 



Prior Audit Recommendation #5 



We recommend the MBO change NCHU forms to tie categories and subcategories to 



FWP license prefixes. 



Prior Audit Recommendation #6 

 We recommend the MBO: 



A. Develop a system for tracking acreage associated with the outfitter industry. 



B. knplement a process, such as a "visual audit sheet" and field testing, to help ensure 

 file information is accurate and up to date. 



