oversight

OIG's Independent Report on the Department's Detailed Accounting of Fiscal Year 2007 Drug Control Funds

Published by the Department of Education, Office of Inspector General on 2008-02-01.

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

                                   UNITED STATES DEPARTMENT OF EDUCATION
                                                        OFFICE OF INSPECTOR GENERAL



                                                         February 1, 2008


MEMORANDUM


To:       	          Thomas P. Skelly
                     Director, Budget Service
                     Office of Planning, Evaluation and Policy Development

From:	               Keith West /s/
                     Assistant Inspector General for Audit Services

Subject: 	           Office of Inspector General’s Independent Report on the U.S. Department of
                     Education’s Detailed Accounting of Fiscal Year 2007 Drug Control Funds, dated
                     January 25, 2008.

Attached is our authentication of management’s assertions contained in the U.S. Department of
Education’s Detailed Accounting of Fiscal Year 2007 Drug Control Funds, dated January 25,
2008, 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)).

Our authentication was conducted in accordance with the guidelines stated in the Office of
National Drug Control Policy Circular: Drug Control Accounting, dated May 1, 2007.

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


Attachment




 The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                   excellence and ensuring equal access.
                                   UNITED STATES DEPARTMENT OF EDUCATION
                                                        OFFICE OF INSPECTOR GENERAL



                                                         February 1, 2008


Office of Inspector General’s Independent Report on the U.S. Department of Education’s
Detailed Accounting of Fiscal Year 2007 Drug Control Funds, dated January 25, 2008.

We have reviewed management’s assertions contained in the accompanying Accounting, titled
Department of Education Detailed Accounting of Fiscal Year 2007 Drug Control Funds, dated
January 25, 2008 (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 attestation standards established by the American
Institute of Certified Public Accountants. A review is substantially less in scope than an
examination, the objective of which 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 of Prior 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 of National Drug Control Policy Circular: Drug Control
Accounting, dated May 1, 2007.




                                                                 Keith West /s/ 

                                                                 Assistant Inspector General for Audit Services 





 The Department of Education's mission is to promote student achievement and preparation for global competitiveness by fostering educational
                                                   excellence and ensuring equal access.
 DEPARTMENT OF EDUCATION 





            DETAILED ACCOUNTING OF 

   FISCAL YEAR 2007 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 25, 2008 

                                                DEPARTMENT OF EDUCATION 


            DETAILED ACCOUNTING OF FISCAL YEAR 2007 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 .................................................................................................................. 2 


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................................................................................................................... 5 


           Data................................................................................................................................... 5 


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


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


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


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


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

Mr. John P. Higgins, Jr.
Inspector General
U.S. Department of Education
400 Maryland Avenue, S.W.
Washington, DC 20202-1510

Dear Mr. Higgins:

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 2007 Department of Education drug control funds for your authentication, in
accordance with the guidelines in ONDCP Circular Drug Control Accounting, dated
May 1, 2007.

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, 2008, if possible. Please do not
hesitate to contact me if you have any questions about the enclosed information.

                                    Sincerely,



                                     Thomas P. Skelly
                                     Director, Budget Service
TABLE OF PRIOR YEAR DRUG CONTROL OBLIGATIONS
                                                                   Fiscal Year 2007 Obligations
                                                                           (in $ millions)

Drug Resources by Function
Prevention                                                                    $492.867
   Total                                                                       492.867

Drug Resources by Decision Unit
Safe and Drug-Free Schools and Communities Program

SDFSC State Grants                                                             344.345
SDFSC National Programs                                                        148.522
   Total                                                                       492.867
____________
NOTE: Detail may not add to total due to rounding.

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. The SDFSC program provides funding for research-based approaches to drug and
violence prevention that support the National Drug Control Strategy. Safe and Drug-Free
Schools and Communities is the Federal Government’s largest drug prevention program and
the only Federal program that provides direct support to schools for efforts designed to prevent
school violence. Under the SDFSC Act, funds are appropriated for State Grants and for
National Programs.

                                            SDFSC State Grants

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). Generally, Governors receive 20 percent, and State
educational agencies (SEAs) 80 percent, of each State's allocation. 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 provide safe, orderly, and drug-free schools and communities through programs and activities
that complement and support activities of LEAs.

                                        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



                                                     2

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); Evaluation and data
collection activities; and an Alcohol Abuse Reduction Program to assist school districts in
implementing innovative and effective programs to reduce alcohol abuse in secondary schools.
SDFSC National Programs also authorizes: (1) Mentoring Programs, and (2) Project SERV
(School Emergency Response to Violence, which is a crisis response program that provides
education-related services to LEAs in which the learning environment has been disrupted due to
a violent or traumatic crisis), both of which made obligations of funds in fiscal year 2007.
However, 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.

DISCLOSURES

                                        Drug Methodology

This accounting submission includes 100 percent of all fiscal year 2007 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 100 percent of
funding for the SDFSC State Grants program, the SDFSC Alcohol Abuse Reduction program,
and all other SDFSC National Programs, with the exclusion of obligations of funds for
(1) SDFSC Mentoring Programs, (2) Project SERV (School Emergency Response to Violence),
and (3) School Emergency Preparedness Initiatives.

Note: In 2007, Congress appropriated $8.594 million under SDFSC National Programs
exclusively for grants to LEAs to address youth violence and related issues in persistently
dangerous schools. Consistent with the above methodology, those funds are included in this
accounting submission because they are supporting drug prevention as well as school safety
activities.

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 table on page 2 of this report are displayed using the
SDFSC program as the budget decision unit — the same decision unit under which the
budgetary resources for the Department of Education are displayed by ONDCP in the
February 2007 National Drug Control Budget Summary that accompanied the 2008 President’s
budget in support of the National Drug Control Strategy.




                                                  3

                                 Methodology Modifications

The 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 2007 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 drug
methodology description above, and in the disclosures below.

                               Reprogrammings or Transfers

In 2007 the Department twice reprogrammed a small amount of funds within the SDFSC
National Programs. These reprogrammings increased the amount of funding for School
Emergency Preparedness Initiatives by a total of $2.4 million and, in doing so, reduced the
amount of Education’s 2007 drug-related obligations by that same amount. There were no
transfers that changed the amount of drug-related budgetary resources in the Department in
fiscal year 2007.

                                      Other Disclosures

The Department acknowledges the following limitations in the methodology described above for
deriving the obligations of fiscal year 2007 drug control funds attributable to the SDFSC
program:

  •	 Although the budgetary resources in this report include 100 percent of obligations for
     SDFSC State Grants, Federal Activities, and Evaluation (exclusive of Project SERV and
     School Emergency Preparedness Initiatives), not all obligations of funds for these
     SDFSC programs support drug prevention activities — some of these funds support
     violence prevention and school safety activities that have no drug control-related nexus.

  •	 Approximately $7.5 million of the SDFSC National Programs funds included in the
     resource summary of this report (1.5 percent of total fiscal year 2007 SDFSC reported
     drug control obligations) supported prevention projects for students enrolled in institutions
     of higher education; for college students served by such programs who are 21 years of
     age or older, alcohol is a legal drug and the alcohol prevention component of the program
     falls outside the scope of the National Drug Control Strategy.

ASSERTIONS

                                Obligations by Decision Unit

The fiscal year 2007 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2007 obligations of funds from the Department’s accounting
system of record for the SDFSC program.




                                               4

                                       Drug Methodology

The methodology used to calculate the fiscal year 2007 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.

Data

No workload or other statistical information was applied in the methodology used to generate
the fiscal year 2007 obligations of drug control funds presented in the table on page 2 of this
report.

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 2007 obligations of drug control funds presented in the table on page 2.

                                Reprogrammings or Transfers

The data presented in this report properly reflect changes in drug control budget resources
resulting from reprogrammings of fiscal year 2007 SDFSC funds. In 2007 the Department twice
reprogrammed a small amount of funds within the SDFSC National Programs: once on
August 31, and again on September 25. The August 31 reprogramming exceeded $1 million
and was approved in advance by ONDCP, as required by law. The September 25
reprogramming was less than $1 million and was not subject to ONDCP approval.

                                     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

                                         February 1, 2008


John P. Walters
Director
Office of National Drug Control Policy
Executive Office of the President
Washington, D.C. 20500

Dear Mr. Walters:

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 2007 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 Drug Control Accounting, dated May 1, 2007.

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

                                     Sincerely,



                                     Thomas P. Skelly
                                     Director, Budget Service


Enclosure # 1: Department of Education Detailed Accounting of Fiscal Year 2007 Drug Control
Funds, dated January 25, 2008

Enclosure # 2: Authentication letter from Keith West, Assistant Inspector General for Audit
Services, dated February 1, 2008

cc: Keith West