oversight

OIG's Independent Report on the Department's Detailed Accounting of Fiscal Year 2009 Drug Control Funds

Published by the Department of Education, Office of Inspector General on 2010-01-29.

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

                             UNITED STATES DEPARTMENT OF EDUCATION
                             JrnCE Cf PIA\l1\I\G. E\'ALl"ATO\ A,'ID POUCY DEVELOF\ff\.




                                                                January 29, 2010


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 70S(d) of the Office of National Drug Control Policy (ONDCP)
Reauthorizaticn Act of 1998 (21 U.S.C. 1704(d», enclosed please find a detailed accounting of
all fiscal year 2009 Department of Educatton 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 2009 Drug Control
Funds, dated January 26, 2010

Enclosure # 2: Authentication letter from Keith West, Assistant Inspector General for Audit
Services, dated January 29, 2010

cc: Keith West




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 DEPARTMENT OF EDUCATION 





            DETAILED ACCOUNTING OF 

   FISCAL YEAR 2009 DRUG CONTROL FUNDS 



                   IN SUPPORT OF THE
          NA TlONAL DRUG CONTROL STRA TEGY
AS REQUIRED BY SECTION 70S(d) OF THE OFFICE OF NATIONAL 

  DRUG CONTROL POLICY REAUTHORIZATION ACT OF 1998 

                    (21 U.S.C. 1704(d)) 




                 JANUARY 26,2010
                                                     DEPARTMENT OF EDUCATION 


             DETAILED ACCOU NTIN G OF FISCAL YEAR 2009 DRUG CO NTROL FU NDS 


                                                             TAB LE OF CONTE NTS 



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 ....................... .......... ... ............................. ................................... 3 


      Material Weaknesses or Other Findings... .... .. .. .................. .. .............. .. .... ..................... ..... .. . 3 


      Reprogram mings or Transfers .......................... ....................................................... .... ......... 4 


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


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


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


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


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


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


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


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


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


     Fund Conlrol Notices ................................................................................................. .. .. ...... 5 

                                UNITED STATES DEPARTMENT OF EDUCATION
                                OI"FICl OF PL~'"NrNG. ["AWATO!' A~U POLIO: D[\ UOP~II:XI




                                                                  JAN 26 2010

Ms. Mary Mitchelson
Inspector General (Acting)
U.S. Department of Education
400 Maryland Avenue , S.W .
Washington, DC 20202-15 10

Dear Ms. Mitchelson:

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 2009 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 ONOCP Circular, please provide your authentication to
me in writing, and r will transmit it to ONDCP a long with the enclosed accounting of funds. As
you know, ONDCP requests these documents by February 1, 2010, if possible. Please do not
hesitate to contact me if 'Iou have any questions about the enclosed information.

                                                           Sincerely,



                                                           Thomas P. Skelly
                                                           Director, Budget Service




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TABLE OF PRIOR-YEAR DRUG CO NTROL OBLIGATIONS
                                                                      Fiscal Year 2009 Obligations
                                                                              (in $ millions)

Drug Resources by Function
Prevention                                                                      $427.944
   Total                                                                         427 .944

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

SDFSC State Grants                                                                292.866
SDFSC National Programs                                                           135.078
    Total                                                                         427.944



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 2009. 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 appropriated for State Grants and for
National Programs.

                                       SDFSC State Grants

Under the program statute SDFSC State Grant funds are allocated by formu la 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 Govemor 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 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
1roubled or al-risk you1h, including Federal Activnies (a broad discretionary authOrity that permits
the Secretary to carry out a wide variety of activities designed to prevent the illegal use of drugs



                                                 2

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. SDFSC Nationa l 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 d ue to a violent or traumatic crisis), both of which
made obligations of funds in fiscal year 2009. 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 aUfiscal year 2009 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.

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 deciSlon unit under which the
budgetary resources for the Department of Education are displayed by ONDCP in the May 2009
National Drug Control Budget Summary that accompanied the 2010 President's budget in
support of the National Drug Control Strategy.

                                  Methodology Modifications

The Department does not have any drug contro l budget methodo logical modifications to
d isclose.

                           Material Weaknesses or Other Fi ndi ngs

The Department does not have any material weaknesses to disclose that affect the presentation
of fiscal year 2009 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.



                                                 3

                                 Reprogrammlngs or Transfers

On three occasions in 2009 the Department reprogrammed small amounts of funds within
SDFSC National Programs: in combination these reprogrammings increased the amount of
funding for School Emergency Preparedness Initiatives by $2.2 million and decreased the
amount of funding for the Mentoring program by $1 .6 million Applied against the drug
methodology explained on page 2, these reprogrammings had the net effect of reducing the
amount of Education's 2009 drug-related obligations by $0.6 million. There were no transfers
that changed the amount of drug-related budgetary resources in the Department in fiscal year
2009.

                                       Other Disclosures

The Department acknowledges the following limitations in the methodology described above for
deriving the obligations of fiscal year 2009 drug control funds attributable to the SDFSC
program :

   • 	 Although the budgetary resources in this report include 100 percent of obligations for
       SDFSC State Grants and Federal Activities (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 $9.2 million of the SDFSC National Programs funds included in the
       resource summary of this report (2.2 percent of total fisca l year 2009 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 2009 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2009 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 2009 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.




                                                 4

No workload or other statistical information was applied in the methodology used to generate
the fiscal year 2009 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 2009 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 2009 SDFSC funds. On three occasions in 2009
(May 4, September 9, and September 24) the Department reprogrammed a small amount of
funds within the SDFSC National Programs: The May 4 and September 9 reprogrammings
exceeded $1 million and were approved in advance by ONDCP, as required by law. The other
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

                                     UNITED STATES DEPARTMENT OF EDUCATION
                                                          OFFICF OF r"'lspt-:CTOR GI'M'RAL

                                                                                                                                               Al'DIT SERVIC/S

                                                                        January 29, 2010


Office ofInspector General's Independent Report on the U.S. Department of Education's
De/ailed Accounting ofFiscal Year 2009 Drug Control Fund<i, dated January 26. 2010

We have reviewed management's assertions contained in the accompanying DetailedAccounting
o/Fiscal Year 2009 Drug Control Funds. dated January 26, 2010 (Accounting). 'lhe 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 "Assenions" 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, arc not fairly stated in all material
respects. based upon the Officc of National Drug Control Policy Circular: Drug Con/rol
Ac.:c.:ountinK, dated May 1, 2007.



                                                                                Keith West
                                                                                Assistant Inspector General for Audit




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