oversight

OIG's Independent Report on the Department's Detailed Accounting of Fiscal Year 2014 Drug Control Funds

Published by the Department of Education, Office of Inspector General on 2015-01-30.

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

                         UNITED STATES DEPARTMENT OF EDUCATION 

                       OFFICE OF PLANNING, EVALUATION AND POLICY DEVELOPMENT 



                                          January 30, 2015

Michael Botticelli
Acting Director
Office of National Drug Control Policy
Executive Office of the President
Washington , D.C. 20500

Dear Mr. Botticelli:

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 2014 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,


                                       ~i?~
                                       Thomas P. Skelly
                                       Director, Budget Service


Enclosure# 1: Department of Education Detailed Accounting of Fiscal Year 2014 Drug Control
Funds, dated January 26, 2015

Enclosure# 2: Authentication letter and report from Patrick J. Howard, Assistant Inspector
General for Audit, dated January 29, 2015

cc: Patrick J. Howard




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





            DETAILED ACCOUNTING OF 

   FISCAL YEAR 2014 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 26, 2015
                                                  DEPARTMENT OF EDUCATION 


             DETAILED ACCOUNTING OF FISCAL YEAR 2014 DRUG CONTROL FUNDS

                                                         TABLE OF CONTENTS


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


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


Program Description ................................................................................................................... 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 


     Reprogrammings or Transfers ............ .. ..... .. .... ................................ .... ........... ............. ... .. .... 3 


     Other Disclosures ..................................... ............................................................................ 3 


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


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


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


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


           Other Estimation Methods ............................................................................................... 4 


           Financial Systems .............................. .. ..... ...... .............................. .. ................................ 4 


     Application of Drug Methodology ............. ... ... ........................................................................ 4 


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


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

                      UNITED STATES DEPARTMENT OF EDUCATION 

                   OFFICE OF PLANNING, EVALUATION AND POLI CY DEVELOPMENT 



                                       JAN 2 6 2015


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 2014 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, 2015, 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




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

TABLE OF PRIOR-YEAR DRUG CONTROL OBLIGATIONS 

                                                                      Fiscal Year 2014 Obligations
                                                                              (in $ millions)

Drug Resources by Function
Prevention                                                                       $51.476
   Total                                                                          51.476

Drug Resources by Decis ion Unit
Safe and Drug-Free Schools and Communities Program
   SDFSC National Programs                                                       $51.476
       Total                                                                      51.476



PROGRAM DESCRIPTION

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 2014. The SDFSC program provides funding for drug prevention programs
and activities that support the National Drug Control Strategy, in add ition to efforts designed to
prevent school violence. Under the SDFSC Act, funds are authorized to be appropriated for
State Grants and for National Prog rams. However, no SDFSC State Grant funds have been
appropriated to, or obl igated by, the Department since fiscal year 2010. Accordingly, the
entirety of this drug control accou nting report for fi scal year 2014 corresponds to SDFSC
National Programs funds .

                                   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. In fisca l year 2014 the Department obligated all SDFSC National
Programs funds under SDFSC Federal Activities, which is 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. Within Federal
Activities, SDFSC National Programs authorizes, in addition to activities that include drug
prevention: (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 (IHEs) in which the learning environment has been disrupted due to a violent or
traumatic crisis); (2) Project Prevent , a new initiative of grants to LEAs begun in FY 2014 to help
schools in communities with pervasive violence break the cycle of violence ; and (3) School
Emergency Management Activities , such as the Readi ness and Emergency Management for
Schools Technical Assistance Center, which supports schools, school districts , and IHEs in the
development of high-quality emergency operations plans and comprehensive emergency
management planning efforts. Although the Department obligated funds for all three of these
activities in fiscal year 2014, as explained in the discussion of drug budget methodology below,
funds for these three components of SDFSC National Programs are not included in the ONDCP
drug budget and, therefore , they are not included in this obligations report.




                                                 2

DISCLOSURES 


                                        Drug Methodology

This accounting submission includes all fiscal year 2014 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; (2) Project Prevent; and
(3) School Emergency Management 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 preventio n - 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 and Performance Summary issued by
ONDCP that accompanies the President's budget and the National Drug Control Strategy.

Obligations by Budget Decision Unit

All obligations of drug control funds in the table on page 2 of th is report are displayed using the
SDFSC program as the budget decision unit - the same decision unit under which the 2014
budgetary resources for the Department of Education are displayed by ONDCP in the FY 2015
Budget and Performance Summary that accompanied the 2015 President's budget in support of
the National Drug Control Strategy.

                                   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 2014 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 budgeta ry resources in the
Department of Education in fiscal year 2014.

                                       Other Disclosures

The Department acknowledges the following limitation in the methodology described above for
deriving the obligations of fiscal year 2014 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, Project Prevent, and School Emergency
Management Activities), not all obligations of funds included in the resource summary of this



                                                 3

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 2014 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2014 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 2014 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 2014 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 2014 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 2014. However, subsequent to ONDCP's approval of the Department's fiscal year
2014 financial plan, the Department reallocated various funds across activities within SDFSC
National Programs. As a result of these reallocations the Department's drug control budgetary
resources increased by $12 million, from $39.5 million (as estimated in the financial plan) to the
final amount of $51 .5 million.



                                                 4

                                    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
                                                OFFICE OF INSPECTOR GENERAL

                                                                                                                     AUDIT SERVICES


January 29, 2015



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

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

SUBJECT:       Office of Inspector General's Independent Report on the U.S. Department of
               Education's Detailed Accounting of Fiscal Year 2014 Drug Control Funds, dated
               January 26, 2015

Attached is ou r authentication of management's assertions contained in the U.S. Department of
Education's Detailed Accounting of Fiscal Year 2014 Drug Control Funds, dated
January 26, 2015, as required by section 705(d) of the Office of National Drug Control Policy
Reauthorization Act of 1998 (21U.S.C.§1704(d)).

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

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




                               400 MAR.Y!J\NO AVliNUli, S.W., WASHINGTON, DC 20202-1510
              Promoting tha fljJICIMcy, 1JjJ1JctlvMass, and l11tflgrl0t of till! Dapartmtmt's programsand opflratlo11s.
                           UNITED STATES DEPARTMENT OF EDUCATION
                                            OFFICE OF INSPECTOR GENERAL

                                                                                                                      AUDIT SERVICES



Office of Inspector General's Independent Report on the U.S. Department of Education's
Detailed Accounting of Fiscal Year 2014 Drug Control Funds, dated January 26, 2015

We have reviewed management's assertions contained in the accompanying Detailed
Accounting of Fiscal Year 2014 Drug Control Funds, dated January 26, 2015 (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 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 Circu lar: Accounting of 

Drug Control Funding and Performance Summary, dated January 18, 2013 . 





Patrick J. Howard /s/ 

Assistant Inspector General for Audit 





                                400 MARYLAND AVllNUli, S.W. WASHINGTON, DC 20202·1510
              Promoting the 11ff1clency, i!/ft1ctlv11ness, and lntt!grlt;y ofthe Departmtmt's programs und opt1l'tltlons.