* United States General Accounting Office Fact Sheet for Congressional &A0 Requesters September 19!I0 DRUG CONTROL ‘. Status of Obligations for Fiscal Year 1990 DOD Counternarcotics Funds -. United States GAO General Accounting Office Washington, D.C. 20648 National Security and International Affairs Division B-241117 September 25,199O The Honorable Alfonse M. D’Amato Co-Chairman, Caucus on International Narcotics Control United States Senate The Honorable John Conyers, Jr. Chairman, Legislation and National Security Subcommittee, Committee on Government Operations House of Representatives This fact sheet responds to your request for information on the status of obligations for the fiscal year 1990 Department of Defense (DOD) coun- ternarcotics appropriation of $460 million. Specifically, we (1) compared the obligation rates for counternarcotics funds accounts to obligation rates for similar defense program accounts and (2) ascertained the rea- sons for any delays in obligating counternarcotics funds. DOD'S most current financial obligation data indicates that, as of July 31, Results in Brief 1990, obligation rates for counternarcotics appropriation accounts were generally lower than those for defense programs as a whole. According to DOD officials, delays in obligating counternarcotics funds are attribu- table to the late receipt of obligation authority, extensive and time- consuming reprogramming actions, DOD policy decisions requiring con- gressional approval, changes in counternarcotics programs required by the final appropriations act, sequestration deliberations, and apportion- ment issues. In comparing obligation rates of funds in the counternarcotics program Counternarcotics accounts with comparable DoD-wide accounts, we found that the obliga- Program Obligation tion rates for counternarcotics programs were lower for Operations and Rates Maintenance (24 percent less); National Guard Military Personnel (13 percent less); Procurement (50 percent less); and Research, Develop- ment, Test and Evaluation (RDT&E) (73 percent less). The coun- ternarcotics program’s Military Construction account had an obligation rate 71 percent higher than the comparable Don-wide accounts. Appendix I provides additional details on the obligation rates for both counternarcotics and nob-wide accounts. Page1 B241117 National Guard support is provided to domestic marijuana eradication. The marijuana growing season is from July through September. National Guard personnel are not involved in the eradication effort until late in the fiscal year, and obligation of their pay and allowances is timed to this effort. DOD officials believe that they will be able to obligate most of the funds appropriated for this account for counternarcotics activities by the end of fiscal year 1990. Procurement Procurement funds are available for obligation for 3 fiscal years fol- lowing appropriation; therefore, first year obligation rates do not neces- sarily predict final obligation performance. The obligation rates for counternarcotics procurement funds appropriated in fiscal year 1990 are low because of extensive reprogramming requirements. Moreover, requested reprogramming and transfer requests submitted in April 1990 were not approved by the pertinent congressional committees until August 1990. Thereafter, an estimated additional 30 to 45 days of normal processing time elapsed before the funding documents were made available to the service or defense agencies by the DOD Comptroller. The contracting process-advertisement for bids, resolution of small business set-aside issues, and screening and selection of vendors-nor- mally requires an additional 4 months or more to complete. Procurement funds are obligated when a contract is awarded. DOD officials are confident that the funds appropriated for coun- ternarcotics procurement will be obligated before the 3-year time limita- tion expires. Research,Development, RDT&E funds are available for obligation for 2 fiscal years following Test and Evaluation appropriation. The obligation rates for counternarcotics funds appropri- ated in fiscal year 1990 for this account are low for the same reasons cited for the procurement appropriation. DOD officials are confident that the funds appropriated for coun- ternarcotics in this account will be obligated before the 2-year time limi- tation expires. Page 3 GAO/NSlAD!M-296PS DOD Counte marcotics Funds Page 6 GAO/NSL4Df3O.296PS DOD C!mmtemarco tic-a Funds Appendix - II Major Contributors to This &port Gary K. Weeter, Assistant Director National Security and Anton G. Blieberger, Evaluator-in-Charge International Affairs Rahul Gupta, Evaluator Division, Washington, D.C. (398145) Page 7 GAO/‘NSlAD.UO.2S6FS DOD Countemarcotics Funds Ordering Information The first five copies of each GAO report are fkee: Add#&enai copies are $2 each. Orders should be sent to ths foU&kg address, accompanied by a check or money order IM&@IM fo the Superintendent of Documents, when necessary. Mrafor 100 or more copies to be mailed to a single addrem-,. “,’ discounted 25 percent. U.S. General Accounting Office P. 0. Box inIb Gaithersborg, Appendix I - Obligation Data for DOD Countern~coti~ Program and DODWide Accounts for Fiscal Year 1990 Dollars in thousands -- DOD Counternarcotics Proqram DOD-Wide Totals Appropriations Appropriations Difference Accounts Available’ Obligated Percent -- Availableb Obligated Percent (Percent1 National Guard $56,369 ___~~~ $38,937 69.08 $4,372,127 $3,597,086 82.27 (13.19) Operattons & Maintenance 96,385 56,217 58.33 101,183,059 83,768,259 82.78 (24.46) __- ~ Procurement 243,108 20,423 8.40 - 83,253,424 48,456,349 58.20 (49.80) RDT&E 10,400 779 7.49 40,921,160 33,081,/X33 80.84 (73.35) Construction 3,700 3,680 99.46 6,555,282 1,865,069 28.45 71 .Ol Note: Obligation data is as of July 31, 1990 aAccordtng to DOD offictals, appropnations avatlable total $4C9,962,99O Congress appropnated $450 mtllron for DOD counternarcottcs acttvtties tn fiscal year 1999 Of that amount $3,263,0oo was sequestered, 52,500.ooO IS betng wtthheld by the Department of the Treasury for a classified program, and $34275.000 was pendtng reprogramming approvals. bTotal awlable budgetary resources, which Include appropnattons. retmbursements, other income, and unobltgated balances canted forward from pnor years. Page 6 GAO,‘TC~IAEL~ZS~FS DOD Cam,, termrcotimFunds EC!41117 In performing our work, we interviewed DOD officials of the Office of the Scopeand Coordinator for Drug Enforcement Policy and reviewed financial data, Methodology reports, and other documents related to DOD counternarcotics financial management. We compared obligation data for DOD counternarcotics pro- grams and other appropriations using the most current DOD data avail- able (July 31, 1990). We conducted our review between September 4 and September 11,199O. Due to the brief time available to complete this assignment, we did not independently verify DOD’S financial data or the accuracy of the expla- nations for delays in obligating counternarcotics funds provided by pro- gram and budget officials. We did not obtain written agency comments. However, we discussed a draft of this fact sheet with DOD officials and incorporated their com- ments, as appropriate. Unless you publicly announce its contents earlier, we plan no further distribution of this fact sheet until 7 days from its issue date. At that time, we will send copies to interested congressional committees, the Secretary of Defense, the Assistant Secretary of Defense for Reserve Affairs, and the Director, Office of Management and Budget. Copies will also be made available to others on request. Please contact me at (202) 2754841 if you or your staff have any questions concerning this fact sheet. Other major contributors are listed in appendix II. (Izzs?c~~ Director, Command, Control, Communications, and Intelligence Issues Page 4 GAO/NSlAMWB6FS DODC~un~rnarcotics Funds B241117 Defense program and budget officials noted that the counternarcotics Reasonsfor Delays in accounts require significant interagency coordination not necessary in Obligating managing most other DOD accounts, making it difficult to draw compari- Counternarcotics sons. They indicated that this extensive coordination lengthens the time required to obligate counternarcotics funds. For example: Funds . Congress directed that all state National Guard plans be reviewed in coordination with the Attorney General of the United States. l Obligation of funds supporting integration of command, control, commu- nications, and intelligence assets into an effective network is predicated on the Drug Enforcement Telecommunications Implementation Plan schedule, for which the Office of National Drug Control Policy is responsible. l The ability to provide training and logistical support to law enforcement agencies is predicated on specific requests from them. . A significant portion of aerostat radar surveillance systems funding is dependent on the U.S. Customs Service, which is the contracting activity for these systems. DOD officials cited the following additional reasons for delays in obli- gating fiscal year 1990 counternarcotics funds in accounts involving operations and maintenance, National Guard military personnel, pro- curement. and RDT&E. Operations and Operations and maintenance funds are available only for obligation Maintenance during the fiscal year for which they are appropriated. Delays in obli- gating the fiscal year 1990 funds resulted from late receipt of obligation authority (the Department of Defense Appropriations Act 1990 was not enacted until November 2 1,1989) and extensive reprogramming actions required primarily by a congressional decision to appropriate coun- ternarcotics funds to a central transfer account. These reprogramming actions required counternarcotics program managers to obtain internal and external approvals before funds could be distributed to the services and defense agencies for their use. These actions required time- consuming intra- and inter-departmental coordination. DOD officials were unable to predict if funds appropriated for operations and maintenance would be fully obligated by the end of fiscal year 1990. National Guard Personnel National Guard personnel funds are available for obligation only during the fiscal year for which they are appropriated. A large percentage of Page 2 GAO/NSLUHlO-296FS DODCounternarcotics~~~,&
Drug Control: Status of Obligations for Fiscal Year 1990 DOD Counternarcotics Funds
Published by the Government Accountability Office on 1990-09-25.
Below is a raw (and likely hideous) rendition of the original report. (PDF)