oversight

U.S. Department of Education's Detailed Accounting of Fiscal Year 2003 Drug Control Funds, dated January 21, 2004.

Published by the Department of Education, Office of Inspector General on 2004-01-27.

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

                        UNITED STATES DEPARTMENT OF EDUCATION

                                           OFFICE OF INSPECTOR GENERAL




                                                January 27, 2004


MEMORANDUM


To:              Thomas P. Skelly
                 Director, Budget Service
                 Office of the Deputy Secretary


From:            Helen Lew          ~&Z- LAJ
                 Assistant Inspector General for Audit

Subject: 	       Office of Inspector General's Independent Report on the Us. Department
                 ofEducation 's Detailed Accounting ofFiscal Year 2003 Drug Control
                 Funds, dated January 21,2004.

Attached is our authentication of 11lanagement' s assertions contained in the u.s.
Department ofEducation 's Detailed Accounting ofFiscal Year 2003 Drug Control
Funds; dated January 21, 2004, as required by 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 April 18,
2003.

If you have any questions or wish to discuss the contents of this authentication, please
contact Teri L. Lewis, Assistant Regional Inspector General for Audit, at (215) 656-6900.


Attachment




                                400 MARYLAND AVE.,      s.w.   WASHINGTON, D.C. 20202-1510

        Our mission is to ensure equal access to education and to promote educational excellence throughout the Nation.
                        UNITED STATES DEPARTMENT OF EDUCATION

                                           OFFICE OF     INSPr~CTOR    GENERAL




Office of Inspector General's Independent Report on the u.s. Department ofEducation 's
Detailed Accounting ofFiscal Year 2003 Drug Control Funds, dated January 21, 2004.

We have reviewed nlanagenlent's assertions contained in the accompanying Accounting,
titled US. Department ofEducation's Detailed Accounting ofFiscal Year 2003 Drug
Control Funds and dated January 21, 2004 (the Accounting). The U.S. Departnlent 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 perfomled 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 April 18, 2003.



                                                 -f{l~ L~
                                                  Helen Lew
                                                  Assistant Inspector General for Audit

                                                  January 27, 2004




                                400 MARYLAND AVE.,      s.w.   WASHINGTON, D.C. 20202-1510

        Our mission is to ensure equal access to education and to promote educational excellence throughout the Nation.
DEPARTMENT OF EDUCATION





      DETAILED ACCOUNTING OF

FISCAL YEAR 2003 DRUG CONTROL FUNDS



         IN SUPPORT OF THE

 NATIONAL DRUG CONTROL STRATEGY



  AS REQUIRED BY SECTION 1704(d) OF

    TITLE 21 UNITED STATES CODE


          JANUARY 21, 2004

                                               DEPARTMENT OF EDUCATION


            DETAILED ACCOUNTING OF FISCAL YEAR 2003 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................................................................................................................. 5


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


           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 TIlE DEPUTY SECRETARY



                                                     JAN 2 I 2004



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 1704(d) of Title 21 United States Code, enclosed please find a detailed
accounting of all fiscal year 2003 Department of Education drug control funds for your
authentication, in accordance with the guidelines in Office of National Drug Control Policy
(ONDCP) Circular Drug Control Accounting, dated April 18, 2003.

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, 2004, if possible. Please do not
hesitate to contact me if you have any questions about the enclosed information.

                                               Sincerely,


                                              ~l~.
                                               Thomas P.            Skell~_ ~.
                                               Director, Budget Service
                                                                                             0




                                 400 MARYLAND AVE., S.W. WASHINGTON, D.C. 20202-0500
                                                          www.ed.gov 


          Our mission is to enswe equal aocess to education   anl   to promote educational excellence throughout the Nation. 

TABLE OF PRIOR YEAR DRUG CONTROL OBLIGATIONS
                                                                                    Fiscal Year 2003 Obligations
                                                                                            (in $ millions)

Drug Resources by Function
Prevention                                                                                      $655.301
   Total                                                                                         655.301

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

SDFSC State Grants                                                                                470.566 1

SDFSC National Programs:
  Federal Activities and Evaluation                                                               143.863
  National Coordinator Program                                                                     16.036
  Alcohol Abuse Reduction                                                                          24.838
     Subtotal, SDFSC National Programs                                                            184.736

         Total, SDFSC Program                                                                     655.301
____________
1
 Includes $0.390 million in fiscal year 2003 obligations that were originally obligated in fiscal year 2002, recovered
(deobligated) in fiscal year 2003, and reobligated in fiscal year 2003; and includes $1.160 million in fiscal year 2001
budget authority, the obligation of which was recorded in the Department’s accounting system in October, 2002.

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 directly 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 received 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



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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 or 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); Evaluation and data collection
activities; a National Coordinator Program, which primarily supports grants to LEAs to enable
them to recruit, hire, and train individuals to serve as drug prevention and school safety
coordinators in schools with significant drug and school safety problems; 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) State grants for community service for expelled or suspended students, (2) mentoring
programs, and (3) 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), all of which made
obligations of funds in fiscal year 2003. However, as explained in the discussion of drug budget
methodology below, funds for these three appropriation line items are not included in the
ONDCP drug budget, and therefore they are not included in this obligations report.

DISCLOSURES

                                       Drug Methodology

Consistent with the May 2002 ONDCP restructuring of the national drug control budget, this
accounting submission includes 100 percent of all fiscal year 2003 obligations of funds under
the Safe and Drug-Free Schools and Communities (SDFSC) Act, with the exception of those
SDFSC National Programs that, by statute, have no clear drug control nexus. Accordingly, the
amounts in the enclosed table of prior year drug control obligations include funding for the
Federal Activities and Evaluation, National Coordinator Program, and Alcohol Abuse Reduction
appropriations line items under SDFSC National Programs; but exclude obligations of funds for
SDFSC Community Service State Grants, Mentoring Programs, and Project SERV (School
Emergency Response to Violence).

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 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


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budgetary resources for the Department of Education are displayed by ONDCP in the
February 2003 National Drug Control Budget Summary that accompanied the 2004 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 2003 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

There were no reprogrammings or transfers of drug-related budgetary resources in the
Department of Education in fiscal year 2003.

                                      Other Disclosures

The Department acknowledges the following limitations in the methodology described above for
deriving the obligations of fiscal year 2003 drug control funds attributable to the SDFSC
program:

  •	 Although the budgetary resources in this report include 100 percent of obligations for
     SDFSC State Grants, 100 percent of obligations for SDFSC Federal Activities and
     Evaluation (exclusive of Project SERV), and 100 percent of obligations for the SDFSC
     National Coordinator Program, 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 $4.6 million of the SDFSC National Programs funds included in the
     resource summary of this report (less than 1 percent of total fiscal year 2003 SDFSC
     reported drug control obligations) supports alcohol and other drug 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 2003 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2003 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 2003 obligations of drug prevention funds
presented in this report is reasonably accurate, to the extent that: (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 2003 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, indeed, the actual methodology
used to generate the fiscal year 2003 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 2003; therefore, the required assertion that the data presented in this report properly
reflect changes in drug control budgetary resources resulting from reprogrammings or transfers
of funds is not applicable.

                                      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.




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