oversight

The U.S. Department of Education's Detailed Accounting of Fiscal Year 2004 Drug Control Funds.

Published by the Department of Education, Office of Inspector General on 2005-01-28.

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

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                        UNITED STATES DEPARTMENT OF EDUCATION
                                        OFFICE OF THE INSPECTOR GENERAL




MEMORANDUM


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


From: 	            Helen Lew          f(dlz.. W
                   Assistant Inspector General for Audit Services

Subject: 	         Office of Inspector General's Independent Report on the Us. Department
                   ofEducation's Detailed Accounting ofFiscal Year 2004 Drug Control
                   Funds, dated January 26,2005.

Attached is our authentication of management's assertions contained in the Department
ofEducation Detailed Accounting ofFiscal Year 2004 Drug Control Funds, dated
January 26, 2005, 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 Greg Spencer, Director, Financial Statements Internal Audit Team, at (202) 245­
6015.


Attachment




                                     400 MARYLAND AVE., S.W., WASHINGTON, DC 20202-1510
                                                              www.ed.gov 


             Our mission is to ensure equal access to education and to promote educational excellence throughout the nation. 

                             UNITED STATES DEPARTMENT OF EDUCATION
                                             OFFICE OF THE INSPECTOR GENERAL




                                                        JAN 28 2005


        Office ofInspector General's Independent Report on the Us. Department ofEducation 's
        Detailed Accounting ofFiscal Year 2004 Drug Control Funds, dated January 26, 2005.

        We have reviewed management's assertions contained in the accompanying Accounting,
        titled Department ofEducation Detailed Accounting ofFiscal Year 2004 Drug Control
        Funds, dated January 26,2005 (the 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 April 18, 2003.

                                                            ffe~W
                                                            Helen Lew
                                                            Assistant Inspector General for Audit Services




                                          400 MARYLAND AVE., S.W., WASHINGTON, DC 20202-1510
                                                                   www.ed.gov

                  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 2004 DRUG CONTROL FUNDS 



         IN SUPPORT OF THE 

 NA TIONAL DRUG CONTROL STRA TEGY


  AS REQUIRED BY SECTION 1704(d) OF 

    TITLE 21 UNITED STATES CODE 


          JANUARY 26, 2005 

                                               DEPARTMENT OF EDUCATION 


            DETAILED ACCOUNTING OF FISCAL YEAR 2004 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 ................................................................................................................................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 THE UNDER SECRETARY


                                                                                            JAN 26 2005



      Mr.John P. Higgins, Jr.
      Inspector General
      U.S. Department of Education
      400 Maryland Avenue, S.W.
      Washington, DC 20202-1500

      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 2004 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 1,2005, if possible. Please do not
      hesitate to contact me if you have any questions about the enclosed information.

                                                                                   Sincerely,


                                                                                   ~l~
                                                                                   Thomas P. Skelly
                                                                                   Director, Budget Service




                                                            400 MARYLAND AVE., s.w., WASHINGTON, D.C. 20202
                                                                              www.ed.gov

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~-----~---
TABLE OF PRIOR YEAR DRUG CONTROL OBLIGATIONS
                                                                    Fiscal Year 2004 Obligations
                                                                            (in $ millions)
Drug Resources by Function
Prevention
                                                                              $956.708
   Total
                                                                               956.708
Drug Resources by Decision Unit
Safe and Drug-Free Schools and Communities Program

SDFSC State. Grants
                                                                               773.118
SDFSC National Programs:
  Alcohol Abuse Reduction                                                       29.823
  Other National Programs                                                      153.767
     Subtotal, SDFSC National Programs                                         183.590

             Total, SDFSC Program                                              956.708

NOTE: Detail may not add to total due to rounding.

PROGRAM DESCRIPTIONS

The programs funded under the Safe and Drug-Free Schools and Com'munities (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). Genera"y, 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
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.



                                                     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); 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) 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 2004. 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

Consistent with the May 2002 ONDCP restructuring of the national drug control budget, this
accounting submission includes 100 percent of all fiscal year 2004 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 SDFSC
Alcohol Abuse Reduction and all Other National Programs, with the exclusion of obligations of
funds for SDFSC 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 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
March 2004 National Drug Control Budget Summary that accompanied the 2005 President's
budget in support of the National Drug Control Strategy.




                                                   3
                                 Methodology Modifications

T.he Department does not have any drug control budget methodological modifications to
disclose.
                          Material Weaknesses or Other Findings

Th~ Department does not have any material weaknesses to disclose that affect the presentation
of fiscal year 2004 drug-related obligations in this report. All other known weaknesses that
affect the presentat.io~ of drug-relate~ obligations in this report are explained in the drug
methodology descnptlon above, and In the disclosures below.

                               Reprogrammings or Transfers

There wer~ no reprogrammings or transfers that changed the amount of drug-related budgetary
resources In the Department of Education in fiscal year 2004.

                                      Other Disclosures

The Department acknowledges the following limitations in the methodology described above for
deriving the obligations of fiscal year 2004 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 $5.9 million of the SDFSC National Programs funds included in the
       resource summary of this report (less than 1 percent of total fiscal year 2004 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 2004 obligations of drug control funds shown in this report for the SDFSC drug
budget decision unit are the actual 2004 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 2004 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



                                                4

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 ~orkload or other st~tis!ical information was applied in the methodology used to generate
the fiscal year 2004 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 2004 obligations of drug control funds presented in the table on page 2.

                                Reprogrammings or Transfers

There were no reprogrammings or transfers that changed the amount of Department of
Education drug control funds in fiscal year 2004; 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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