FY 2006 Annual Report on the Cooperative Threat Reduction Program
Gao ID: GAO-05-780R July 1, 2005Under section 1308 of the National Defense Authorization Act for Fiscal Year 2001 (Pub. L. 106-398), the Department of Defense (DOD) is to submit an annual report to Congress on its Cooperative Threat Reduction (CTR) program no later than the first Monday in February of each year. The report should include a 5-year plan that discusses the amount and purpose of funding needed over the term of the plan and a description of efforts conducted by the United States to ensure that CTR assistance is fully accounted for and used for its intended purposes. The act requires the Comptroller General to assess this 5-year plan and the description of efforts to account for CTR assistance within 90 days of the report's submission to Congress. The Department submitted its CTR annual report for fiscal year 2006 to Congress on February 23, 2005, and we provided our findings to Congressional staff on May 23, 2005. We analyzed the 2006 report to determine whether (1) the 5-year plan addresses legislative requirements and presents accurate information, and (2) the accountability section addresses legislative requirements and presents accurate information.
We found that the 5-year plan addressed the legislative requirements by setting forth funding information for the term of the plan and stating the purpose of those funds. We also confirmed with project managers that, for the eight projects we reviewed in detail, the information provided in the report was generally accurate. In addition, we examined the source documents that supported the data in the published report and found that the published data were generally well supported. We found that the accountability section addressed three of the four legislative requirements. It (1) discussed the status of contracts and services and the methods used to ensure that CTR aid is used for the purposes intended, (2) determined whether the assistance provided has been used effectively and efficiently, and (3) described the audits and examinations planned for the next year. We found that the information in these sections of the report was generally accurate and complete and included the concerns raised in project trip reports and audit and examinations. The report did not comply with section 1308(c)(5) of the NDAA for FY 2001 (Pub. L. 106-398) however, because it did not provide a description of the condition and location of CTR-furnished equipment. Instead, the annual report states that this information is now available upon request at the Defense Threat Reduction Agency (DTRA), through a new, centralized database system that tracks CTR equipment. When we asked to review the database, DTRA provided it to us in a timely manner.
GAO-05-780R, FY 2006 Annual Report on the Cooperative Threat Reduction Program
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July 1, 2005:
The Honorable John Warner:
Chairman:
The Honorable Carl Levin:
Ranking Minority Member:
Committee on Armed Services:
United States Senate:
The Honorable Duncan L. Hunter:
Chairman:
The Honorable Ike Skelton:
Ranking Minority Member:
Committee on Armed Services:
House of Representatives:
Subject: FY 2006 Annual Report on the Cooperative Threat Reduction
Program:
Under section 1308 of the National Defense Authorization Act for Fiscal
Year 2001 (Pub. L. 106-398), the Department of Defense (DOD) is to
submit an annual report to Congress on its Cooperative Threat Reduction
(CTR) program no later than the first Monday in February of each year.
The report should include a 5-year plan that discusses the amount and
purpose of funding needed over the term of the plan and a description
of efforts conducted by the United States to ensure that CTR assistance
is fully accounted for and used for its intended purposes. The act
requires the Comptroller General to assess this 5-year plan and the
description of efforts to account for CTR assistance within 90 days of
the report's submission to Congress. The Department submitted its CTR
annual report for fiscal year 2006 to Congress on February 23, 2005,
and we provided our findings to your staff on May 23, 2005.[Footnote 1]
We analyzed the 2006 report to determine whether (1) the 5-year plan
addresses legislative requirements and presents accurate information,
and (2) the accountability section addresses legislative requirements
and presents accurate information. Enclosed is information provided to
your staff presenting our assessment of the CTR annual report submitted
for fiscal year 2006 (see enclosure).
We found that the 5-year plan addressed the legislative requirements by
setting forth funding information for the term of the plan and stating
the purpose of those funds. We also confirmed with project managers
that, for the eight projects we reviewed in detail, the information
provided in the report was generally accurate. In addition, we examined
the source documents that supported the data in the published report
and found that the published data were generally well supported.
We found that the accountability section addressed three of the four
legislative requirements. It (1) discussed the status of contracts and
services and the methods used to ensure that CTR aid is used for the
purposes intended, (2) determined whether the assistance provided has
been used effectively and efficiently, and (3) described the audits and
examinations planned for the next year. We found that the information
in these sections of the report was generally accurate and complete and
included the concerns raised in project trip reports and audit and
examinations.
The report did not comply with section 1308(c)(5) of the NDAA for FY
2001 (Pub. L. 106-398) however, because it did not provide a
description of the condition and location of CTR-furnished equipment.
Instead, the annual report states that this information is now
available upon request at the Defense Threat Reduction Agency (DTRA),
through a new, centralized database system that tracks CTR
equipment.[Footnote 2] When we asked to review the database, DTRA
provided it to us in a timely manner.
In prior years, DOD included the CTR equipment list as an appendix to
the annual report. Since last year's report, DTRA's contractor at the
Threat Reduction Support Center (TRSC)[Footnote 3] has developed a new
database that draws information regarding CTR equipment from a wider
variety of sources in order to address data limitations that were
previously reported in last year's CTR annual report. DOD is loading
all equipment data into this new database to enhance both reporting and
tracking capabilities. However, according to TRSC officials, DOD did
not include the equipment list as an appendix in this year's report
because of its voluminous nature.
We performed our work in Washington, D.C., from April 2005 through May
2005 in accordance with generally accepted government auditing
standards.
We provided a draft of this report to DOD officials. DOD provided
technical comments, which we have incorporated where appropriate.
We are sending copies of this report to the Honorable Donald Rumsfeld,
Secretary of Defense, and to interested congressional committees. We
also will make copies available to others upon request. This report
will also be available at no charge on the GAO Web site at
http://www.gao.gov.
If you or your staff have any questions regarding this report, please
contact me at (202) 512-8979 or christoffj@gao.gov. David Maurer, Josie
Sigl, Hynek Kalkus, and Beth Hoffman León also made key contributions
to this report.
Signed by:
Joseph A. Christoff:
Director, International Affairs and Trade:
Enclosure:
Cooperative Threat Reduction Annual Report for FY 2006:
Briefing to the Staffs of the Armed Services Committees:
May 23, 2005:
Background:
The National Defense and Authorization Act (NDAA) for fiscal year 2001
requires the Department of Defense to submit an annual CTR report that
sets forth:
* the amount and purpose of funding needed over the next 5 years, and:
* a description of the audit and examinations (A&E) and other efforts
conducted by the United States to ensure that CTR assistance is fully
accounted for and used for its intended purposes.
* NDAA requires GAO to assess the 5-year plan and the accountability
section within 90 days of the annual report's submission.
Objectives:
* Determine whether the 5-year plan addresses legislative requirements
and presents accurate information:
* Determine whether the accountability section addresses legislative
requirements and presents accurate information:
Scope & Methodology: Five-year plan:
To determine whether the 5-year plan addresses legislative requirements
and presents accurate information:
* We assessed the plan to determine if it included the amount of funds
and resources proposed to be provided over the term of the plan and a
description of how those resources will be used.
* We selected eight projects accounting for 78% of the future funding
and compared the information presented in the plan with information
from project managers to determine the accuracy of the data.
Scope & Methodology: Accountability section:
To determine whether the accountability section addresses legislative
requirements and presents accurate information:
* We assessed the section to determine if it included a description of
the condition and location of CTR-furnished equipment, a discussion of
the status of contracts and services and the methods used to ensure CTR
aid is used for purposes intended, a description of whether assistance
provided has been used effectively and efficiently, and a description
of the audits and examinations planned for the next year.
* We reviewed all 12 A&Es and 165 project management trip reports for
FY 2004 to determine if the section accurately presents concerns raised
in these reports.
Scope & Methodology: CTR annual report presentation:
We conducted our review from April 2005 to May 2005 in accordance with
generally accepted government auditing standards.
Results in Brief:
* FY 2005 5-year plan:
* All legislative requirements were addressed.
* Information provided in eight sample projects was generally accurate.
Accountability section:
* Three of four legislative requirements were addressed.
* The annual report did not contain information on CTR-furnished
equipment as required by section 1308(c)(5) of the NDAA for FY 2001.
Principal Findings: Five-year plan addressed the legislative
requirements, and the information provided was accurate.
* FY 2005 5-year plan:
* The report provided the amount of funds and resources proposed for
the term of the plan.
* The report stated the purposes for which these proposed funds and
resources will be used.
* The project managers of 8 selected projects confirmed that the
information was accurate.
Principal Findings: Accountability section addressed 3 of 4 legislative
requirements:
Accountability section of the report:
- Discussed the status of contracts and services and the methods used
to ensure CTR aid is used for purposes intended;
- Determined whether assistance provided has been used effectively and
efficiently, and for purposes intended;
- Described the audits and examination planned for next year; but:
- Did not describe the condition and location of CTR-furnished
equipment.
-- CTR Annual Report did not contain information on CTR equipment, its
location, or current condition of equipment as required by Section 1308
(c) (5) of the NDAA for FY 2001.
-- DTRA was able to provide an electronic copy of the list upon
request.
Conclusion:
* The CTR report meets all legislative requirements for the five-year
plan.
* The CTR report meets three of the four requirements for the
accountability section.
[End of slide presentation]
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FOOTNOTES
[1] We refer to the section of the CTR annual report for fiscal year
2006 titled "Cooperative Threat Reduction (CTR) Program Activities and
Assistance" as the 5-year plan and the accountability section. This
section includes both the 5-year plan and the fiscal year 2004
accounting activities. These sections were consolidated in the FY 2005
report at GAO's recommendation.
[2] DOD's CTR Logistics Support (CLS) contractor has developed the
Electronic Information Delivery System (EIDS) to track CTR equipment.
[3] DTRA has contracted with the Science Applications International
Corporation's (SAIC) Threat Reduction Support Center (TRSC). TRSC staff
provide support to CTR program and project managers in the areas of
operations, logistics, engineering, and financial and program
management.
