oversight

OIG's Independent Report on the Department's Detailed Accounting of Fiscal Year 2013 Drug Control Funds

Published by the Department of Education, Office of Inspector General on 2014-01-03.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                        UNITE:D STATES DEPARTMENT OF EDUCATION 

                    OFFICE OF PLANNING, EVALUATION AND POLICY DEVELOPMENT 





                                         January 31 , 2014


Gil Kerlikowske
Director
Office of National Drug Control Policy
Executive Office of the President
Washington, D.C. 20500

Dear Mr. Kerlikowske:

In accordance with section 705(d) of the Office of National Drug Control Policy (ONDCP)
Reauthorization Act of 1998 (21 U.S.C. 1704(d)), enclosed please find a detailed accounting of
all fiscal year 2013 Department of Education drug control funds, along with the Department of
Education Assistant Inspector General's authentication of this accounting, consistent with the
instructions in ONDCP Circular Accounting of Drug Control Funding and Performance
Summary, dated January 18, 2013.

Please do not hesitate to contact me if you have any questions about this information.

                                      Sincerely,

                                     ~~~
                                      Thomas P.    Sk~ll :        0
                                      Director, Budget Service


Enclosure # 1: Department of Education Detailed Accounting of Fiscal Year 2013 Drug Control
Funds, dated January 29, 2014

Enclosure# 2: Authentication letter and report from Patrick J. Howard, Assistant Inspector
General for Audit, dated January 31, 2014

cc: Patrick J. Howard




                          400 MARYLAND AVE. S .W., WASHINGTON, DC 20202
                                          www.ed.gov
 DEPARTMENT OF EDUCATION 





            DETAILED ACCOUNTING OF 

   FISCAL YEAR 2013 DRUG CONTROL FUNDS 



                   IN SUPPORT OF THE
          NATIONAL DRUG CONTROL STRATEGY
AS REQUIRED BY SECTION 705(d) OF THE OFFICE OF NATIONAL 

  DRUG CONTROL POLICY REAUTHORIZATION ACT OF 1998 

                    (21   u.s.c. 1704(d)) 



                 JANUARY 29, 2014
                                                 DEPARTMENT OF EDUCATION 


            DETAILED ACCOUNTING OF FISCAL YEAR 2013 DRUG CONTROL FUNDS 


                                                        TABLE OF CONTENTS


Transmittal Letter ............................. ........................... ....................... ............................. ............ 1 


Table of Prior-Year Drug Control Obligations .............................................................................. 2 


Program Descriptions ........................ ........ .......... ................................... ........................ ............ 2 


     State Grants ............. ............................... ............. ........ ......................................................... 2 


     National Programs ................................... ................................. ............................... ............ . 3 


Disclosures ...................... ......................................... .. ............................................ ...... .............. 3 


     Drug Methodology .............. ....................................... ............................................................ 3 


           Obligations by Drug Control Function ............................................................................. .3 


           Obligations by Budget Decision Unit ............................................................................... 3 


     Methodology Modifications ............................ .................... .. ............ ...................... ................ 4 


     Material Weaknesses or Other Findings ......... ................................................... .................... 4 


     Reprogrammings or Transfers ....... .................... .. ....... .................... ................. ..... ................ 4 


     Other Disclosures ........... .... .................................... ........................ ..... .............. .... ............... 4 


Assertions ...................................................................... ... .............................................. ........... 4 


     Obligations by Decision Unit ............................................ ................... .... ............... ............... 4 


     Drug Methodology ......................... .. .... .. .. ................. ...... .. .. ...................... ................. ............ 4 


           Data ............... .................................... .......................... ....................... ................... ... ......4 


           Other Estimation Methods .................. ... .. .. ................. ....... .............................................. 5 


           Financial Systems .............................. ...... .............................. ............... ... .................... ... 5 


     Application of Drug Methodology ..................... ..................... .... ............................................. 5 


     Reprogrammings or Transfers ...................... ............................. ....... ................ ............... ..... 5 


     Fund Control Notices ............................................... ....... ..................... ...... ........................... 5 

                        UNITED STATES DEPARTMENT OF EDUCATION
                      OFFICE OF PLANNING, );<;VALUATION AND POLICY DEVELOPMENT

                                         JAN 2 9 2014


Ms. Kathleen Tighe
Inspector General
U.S. Department of Education
400 Maryland Avenue, S.W.
Washington, DC 20202-1510

Dear Ms. Tighe:

As required by section 705(d) of the Office of National Drug Control Policy (ONDCP)
Reauthorization Act of 1998 (21 U.S.C. 1704(d)), enclosed please find a detailed accounting of
all fiscal year 2013 Department of Education drug control funds for your authentication, in
accordance with the guidelines in ONDCP Circular Accounting of Drug Control Funding and
Performance Summary, dated January 18, 2013.

Consistent with the instructions in the ONDCP Circular, please provide your authentication to
me in writing, and I will transmit it to ONDCP along with the enclosed accounting of funds. As
you know, ONDCP requests these documents by February 1, 2014, if possible. Please do not
hesitate to contact me if you have any questions about the enclosed information.

                                     Sincerely,

                                    ~~-p ,~
                                     Thomas P. Skelly
                                     Director, Budget Service




                         400 MARYLAND AVE. S.W., WASHINGTON, DC 20202
                                          www.ed.gov
                                                  1

TABLE OF PRIOR-YEAR DRUG CONTROL OBLIGATIONS
                                                                    Fiscal Year 2013 Obligations
                                                                            (in $ millions)

Drug Resources by Function
Prevention                                                                      $55.575
   Total                                                                         55.575

Drug Resources by Decision Unit
Safe and Drug-Free Schools and Communities Program
   SDFSC National Programs                                                      $55.575
       Total                                                                     55.575


PROGRAM DESCRIPTIONS

The programs funded under the Safe and Drug-Free Schools and Communities (SDFSC) Act
comprise the only Department of Education programs included in the national drug control
budget in fiscal year 2013. The SDFSC program provides funding for drug prevention programs
and activities that support the National Drug Control Strategy, in addition to efforts designed to
prevent school violence. Under the SDFSC Act, funds are authorized to be appropriated for
State Grants and for National Programs.

                                      SDFSC State Grants

Under the program statute SDFSC State Grant funds are allocated by formula to States and
Territories, half on the basis of school-aged population and half on the basis of each State's
share, for the prior year, of Federal funds for "concentration grants to local educational agencies
(LEAs) for improving the academic achievement of disadvantaged students" under section
1124A of Title I of the Elementary and Secondary Education Act (ESEA). Governors receive
20 percent, and State educational agencies (SEAs) 80 percent, of each State's allocation
(unless a Governor elects to delegate administrative responsibility to the SEA for some or all of
the 20 percent). SEAs are required to subgrant at least 93 percent of their allocations to LEAs;
these subgrants are based 60 percent on LEA shares of prior-year funding under Part A of title I
of the ESEA and 40 percent on enrollment. LEAs may use their SDFSC State Grant funds for a
wide variety of activities to prevent or reduce violence and delinquency and the use,
possession, and distribution of illegal drugs, and thereby foster a safe and drug-free learning
environment that supports academic achievement. Governors may use their funds to award
competitive grants and contracts to LEAs, community-based organizations, and other public and
private organizations for activities to create and maintain safe, orderly, and drug-free schools
and communities through programs and activities that complement and support activities of
LEAs.

Note: Funding for SDFSC State Grant program was last appropriated in fiscal year 2009. The
Department's 2009 appropriations act provided that the 2009 SDFSC State Grant funds may
remain available for obligation at the Federal level through September 30, 2010, and the
Department's last obligation of those funds was in fiscal year 2010. No SDFSC State Grant
funds were obligated by the Department in fiscal year 2013, and no SDFSC State Grant funds
are included in the resource summary table of this report.




                                                2

                                   SDFSC National Programs

SDFSC National Programs authorizes funding for several programs and activities to help
promote safe and drug-free learning environments for students and address the needs of
troubled or at-risk youth, including Federal Activities (a broad discretionary authority that permits
the Secretary to carry out a wide variety of activities designed to prevent the illegal use of drugs
and violence among, and promote safety and discipline for, students), and an Alcohol Abuse
Reduction Program to assist school districts in implementing innovative and effective programs
to reduce alcohol abuse in secondary schools. Within Federal Activities, SDFSC National
Programs also authorizes: (1) Project SERV (School Emergency Response to Violence) , which
is a crisis response program that provides education-related services to LEAs and institutions of
higher education in which the learning environment has been disrupted due to a violent or
traumatic crisis), and (2) School Emergency Preparedness initiatives. Although the Department
obligated funds for both of these activities in fiscal year 2013, as explained in the discussion of
drug budget methodology below, funds for these two components of SDFSC National Programs
are not included in the ONDCP drug budget and, therefore, they are not included in this
obligations report.

Note: Funding for the Alcohol Abuse Reduction program was last appropriated in fiscal year
2011 . Under the Department's 2011 appropriations act the 2011 Alcohol Abuse Reduction
funds were available for obligation at the Federal level through September 30, 2011. No
Alcohol Abuse Reduction funds were obligated by the Department in fiscal year 2013, and no
Alcohol Abuse Reduction funds are included in the resource summary table of this report.

DISCLOSURES

                                       Drug Methodology

This accounting submission includes all fiscal year 2013 obligations of funds under the Safe and
Drug-Free Schools and Communities (SDFSC) Act, with the exception of those SDFSC National
Programs that have no clear drug control nexus. Accordingly, the amounts in the enclosed
table of prior-year drug control obligations include all funding for SDFSC National Programs,
with the exclusion of obligations of funds for (1) Project SERV (School Emergency Response to
Violence) and (2) School Emergency Preparedness Initiatives.

Obligations by Drug Control Function

All obligations of funds for the SDFSC program shown in the table on page 2 of this report fall
under the ONDCP drug control function category of prevention - the same functional category
under which the budgetary resources for the SDFSC program are displayed for the Department
of Education in the annual National Drug Control Budget Summary issued by ONDCP that
accompanies the President's budget and in the National Drug Control Strategy.

Obligations by Budget Decision Unit

All obligations of drug control funds in the tab~e on page 2 of this report are displayed using the
SDFSC program as the budget decision unit- the same decision unit under which the 2013
budgetary resources for the Department of Education are displayed by ONDCP in the FY 2014
Budget Summary that accompanied the 2014 President's budget in support of the National Drug
Control Strategy.




                                                 3

                                  Methodology Modifications

ihe Department does not have any drug control budget methodological modifications to
disclose.

                           Material Weaknesses or Other Findings

The Department does not have any material weaknesses to disclose that affect the presentation
of fiscal year 2013 drug-related obligations in this report. All other known weaknesses that
affect the presentation of drug-related obligations in this report are explained in the disclosures
below.

                                Reprogrammings or Transfers

There were no reprogrammings or transfers of drug-related budgetary resources in the
Department of Education in fiscal year 2013.

                                       Other Disclosures

The Department acknowledges the following limitation in the methodology described above for
deriving the obligations of fiscal year 2013 drug control funds attributable to the SDFSC
program: Although the budgetary resources in this report include 100 percent of obligations for
SDFSC Federal Activities (exclusive of Project SERV and School Emergency Preparedness
Initiatives), not all obligations of funds included in the resource summary of this report support
drug prevention activities - some of these funds support violence prevention and school safety
activities that have no drug control-related nexus.

ASSERTIONS

                                 Obligations by Decision Unit

The fiscal year 2013 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2013 obligations of funds from the Department's accounting
system of record for the SDFSC program.

                                       Drug Methodology

The methodology used to calculate the fiscal year 2013 obligations of drug prevention funds
presented in this report is reasonable and accurate, because: (1) the methodology captures all
of the obligations of funds under the SDFSC program that reasonably have a drug control­
related nexus, and (2) these obligations of funds correspond directly to the display of resources
for the SDFSC program in the Department's budget justifications to Congress that accompany
the President's budget.



No workload or other statistical information was applied in the methodology used to generate
the fiscal year 2013 obligations of drug control funds presented in the table on page 2 of this
report.




                                                4

Other Estimation Methods

Where assumptions based on professional judgment were used as part of the drug
methodology, the association between these assumptions and the drug control obligations
being estimated is thoroughly explained and documented in the drug methodology disclosure on
page 3 and in the other disclosures on page 4 of this accounting report.

Financial Systems

Financial systems supporting the drug methodology yield data that fairly present, in all material
respects, aggregate obligations from which the drug-related obligation estimates are derived.

                              Application of Drug Methodology

The methodology disclosed in the narrative of this report was the actual methodology used to
generate the fiscal year 2013 obligations of drug control funds presented in the table on page 2.

                                Reprogrammings or Transfers

There were no reprogrammings or transfers of Department of Education drug control funds in
fiscal year 2013. However, subsequent to ONDCP's approval of the Department's fiscal year
2013 financial plan, the Department reallocated $98 within SDFSC National Programs from
School Emergency Preparedness initiatives to other activities, thereby increasing the amount of
the Department's drug control budgetary resources (relative to the plan) by $98.

                                     Fund Control Notices

The Director of ONDCP has never issued to the Department of Education any Fund Control
Notices under 21 U.S.C. 1703(f) or the applicable ONDCP Circular, Budget Execution.
Therefore, the required assertion that the data presented in this report accurately reflect
obligations of drug control funds that comply with all such Fund Control Notices is not
applicable.




                                                5

                                      UNITED STATES DEPARTMENT OF EDUCATION
                                               OffECE OF INSPECTOR GENERAL
                                                                                                                      AUDIT SERVICES




                                                          January 31, 2014
Memorandum
TO: 	                Thomas P. Skelly
                     Director, Budget Service
                     Office of Planning, Evaluation and Policy Development


FROM: 	              Patrick J. Howard Is/
                     Assistant Inspector General for Audit

SUBJECT: 	 Office oflnspector General's Independent Report on the U.S. Department of
           Education's Detailed Accounting ofFiscal Year 2013 Drug Control Funds, dated
           January 29, 2014

Attached is our authentication of management's assertions contained in the U.S. Department of
Education's Detailed Accounting ofFiscal Year 2013 Drug Control Funds, dated January 29,
2014, as required by section 70S(d) of the Office ofNational Drug Control Policy
Reauthorization Act of 1998 (21 U.S.C. § 1704(d)).

Our authentication was conducted in accordance with the guidelines stated in the Office of
National Drug Control Policy Circular: Accounting ofDrug Control Funding and Performance
Summary, dated January 18, 2013.

If you have any questions or wish to discuss the contents ofthis authentication, please contact
Michele Weaver-Dugan, Director, Operations Internal Audit Team, at (202) 245-6941.




 TM Department ofEducation's mission is to promote student achievement and preparation for global c.ompctitivcn.:ss by fostering educationill
                                                 cx«llence and ensuring equill access.
                                      UNITED STATES DEPARTMENT OF EDUCATION
                                               OFFICE OF INSPECTOR GENERA'L
                                                                                                                    AUDIT SERVICES




Office oflnspector General's Independent Report on the U.S. Department of Education's
De/ailed Accounling o(Fiscal Year 2013 Drug Control Funds. dated January 29.2014

We have reviewed management's assertions contained in the accompanying Detailed Accounting
ofFiscal Year 2013 Drug Control Funds, dated January 29, 2014 (Accounting). The U.S.
Department of Education's management is responsible for the Accounting and the assertions
contained therein.

Our review was conducted in accordance with generally accepted government auditing standards
for attestation review engagements. A review is substantially less in scope than an examination,
the objective ofwhich is the expression of an opinion on management's assertions. Accordingly,
we do not express such an opinion.

We performed review procedures on the "Table ofPrior Year Drug Control Obligations,"
..Disclosures," and ''Assertions'' contained in the accompanying Accounting. We did not review
the "Program Descriptions" contained in the accompanying Accounting. In general, our review
procedures were limited to inquiries and analytical procedures appropriate for our review
engagement.

Based on our review, nothing came to our attention that caused us to believe that management's
assertions, contained in the accompanying Accounting, are not fairly stated in all material
respects, based upon the Office ofNational Drug Control Policy Circular: Accounling ofDrug
Control Funding and Performance Summary, dated January 18, 2013.



                                                                Patrick J. Howard /s/ 

                                                                Assistant Inspector General for Audit 





 The Depanmcnt ofEducation's mission is to promote student achievtrnent and preparation for &Jobal competitiveness by fostcrlna educational
                                                 cxccllencc and ensuring equal access.