Office of National Drug Control Policy
Agencies View the Budget Process as Useful for Identifying Priorities, but Challenges Exist Gao ID: GAO-11-261R May 2, 2011Illicit drug use endangers public health and safety and depletes financial resources. According to the Office of National Drug Control Policy (ONDCP), each day in this country, an estimated 8,000 Americans illegally consume a drug for the first time and the risks posed by their drug use--like that of the estimated 20 million individuals that already use illicit drugs--will radiate to their families and the communities in which they live. Efforts to combat drug abuse and its consequences also represent a considerable financial investment. ONDCP, which is responsible for overseeing and coordinating the implementation of the national drug policy, reported that, for fiscal year 2010, about $22 billion was allocated for drug control programs and other related drug control activities across 49 federal agencies, departments, components, or programs. ONDCP was established by the Anti-Drug Abuse Act of 1988 to enhance national drug control planning and assist Congress in overseeing that effort. In this role, ONDCP provides advice and governmentwide oversight of drug programs and coordinates the development of the National Drug Control Strategy (Strategy). By statute, the Director of ONDCP is to annually (1) develop a National Drug Control Strategy which sets forth a comprehensive plan, for the year, to reduce illicit drug use and its consequences in the United States by limiting the availability of, and reducing the demand for, illegal drugs; (2) develop a consolidated National Drug Control Program budget proposal designed to implement the Strategy; and (3) coordinate and oversee the implementation by the National Drug Control Program agencies of the policies, goals, objectives, and priorities established for the National Drug Control Program and the fulfillment of the responsibilities of such agencies under the Strategy. Agencies submit to ONDCP the portion of their budget requests dedicated to drug control, which they prepare as part of their overall budget submission for the Office of Management and Budget (OMB), and these requests are to be included in the President's budget request. In February 2011, ONDCP released the Fiscal Year 2012 Funding Highlights for the Drug Control Budget, which reflected a restructuring of the prior year's Drug Control Budget. This restructuring resulted in a total of 39 departments and their components and independent agencies with drug control responsibilities and a total budget request of about $26 billion. (Enclosure I shows the 39 federal components, agencies, and programs in the fiscal year 2012 Drug Control Budget). The Office of National Drug Control Policy Reauthorization Act of 2006 mandates that we annually conduct an audit relating to the programs and operations of ONDCP. Thus, this year, we examined ONDCP's efforts to develop and monitor the Drug Control Budget, particularly in light of potential efforts to consider reauthorization of ONDCP beyond fiscal year 2010. Specifically, we (1) examined ONDCP's process for developing and monitoring the Drug Control Budget and (2) obtained selected drug control agencies' views on the benefits and challenges of developing and implementing the Drug Control Budget. To address these objectives, we analyzed applicable laws; available ONDCP documents such as circulars and guidance; and reports on ONDCP, the National Drug Control Strategies for 2005 to 2010, and the Drug Control Budget for fiscal years 2007 to 2012. To better understand how ONDCP's budget development process operates, we analyzed portions of ONDCP's funding guidance to the Departments of Justice (DOJ) and Health and Human Services (HHS) for fiscal years 2005 through 2010.
National Drug Control Program agencies are required to follow a detailed process in developing their annual budget submissions for inclusion in the Drug Control Budget. ONDCP outlines its process in circulars that it sends to agencies which provide detailed reporting instructions on how to properly prepare their drug budget submissions. By statute, the Director of ONDCP is required to provide, by July 1 of each year, budget recommendations to the heads of departments and agencies with responsibilities under the National Drug Control Program. According to ONDCP, these budget recommendations are intended to specifically delineate what priorities each agency is expected to fund in the coming budget submission. By statute, the head of each department, agency, or program of the federal government with responsibilities under the Strategy is required to transmit to the Director of ONDCP a copy of their proposed drug control budget request at the same time as the budget request is submitted to their superiors (and before submission to OMB). ONDCP refers to this request as the summer budget submission. The ONDCP Director is required to review each summer budget submission and transmit a written summary of its review to each agency stating whether the budget submission is adequate to implement the agency's responsibilities towards the objectives of the Strategy. With regard to the benefits and challenges of the budget process, officials from at least four of the six agencies we contacted reported that ONDCP's process for developing the Drug Control Budget is somewhat or very effective in (1) identifying Drug Control Budget priorities, (2) ensuring sufficiency of resources to implement the Strategy, or (3) providing a record of national drug control expenditures. The most pervasive challenges agencies we contacted identified were related to the timing of ONDCP's annual funding guidance and written reviews of agencies' budget submissions. Some agencies noted that these documents were too late to impact their initial budget formulation efforts, but ONDCP plans to issue funding guidance and written reviews earlier in future fiscal years that should address these concerns. In commenting on a draft of this report, ONDCP noted that the report provides a thoughtful review of ONDCP's process for developing programs and policies in support of the National Drug Control Strategy and highlights the various interactions it has with other federal drug control agencies. ONDCP stated that the feedback provided by the report will help ONDCP build stronger and more communicative relationships with these agencies and enable ONDCP to improve its budgetary process.
GAO-11-261R, Office of National Drug Control Policy: Agencies View the Budget Process as Useful for Identifying Priorities, but Challenges Exist
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GAO-11-261R:
United States Government Accountability Office:
Washington, DC 20548:
May 2, 2011:
Congressional Committees:
Subject: Office of National Drug Control Policy: Agencies View the
Budget Process as Useful for Identifying Priorities, but Challenges
Exist:
Illicit drug use endangers public health and safety and depletes
financial resources. According to the Office of National Drug Control
Policy (ONDCP), each day in this country, an estimated 8,000 Americans
illegally consume a drug for the first time and the risks posed by
their drug use--like that of the estimated 20 million individuals that
already use illicit drugs--will radiate to their families and the
communities in which they live. Efforts to combat drug abuse and its
consequences also represent a considerable financial investment.
ONDCP, which is responsible for overseeing and coordinating the
implementation of the national drug policy, reported that, for fiscal
year 2010, about $22 billion was allocated for drug control programs
and other related drug control activities across 49 federal agencies,
departments, components, or programs.
ONDCP was established by the Anti-Drug Abuse Act of 1988 to enhance
national drug control planning and assist Congress in overseeing that
effort.[Footnote 1] In this role, ONDCP provides advice and
governmentwide oversight of drug programs and coordinates the
development of the National Drug Control Strategy (Strategy). By
statute, the Director of ONDCP is to annually (1) develop a National
Drug Control Strategy which sets forth a comprehensive plan, for the
year, to reduce illicit drug use and its consequences in the United
States by limiting the availability of, and reducing the demand for,
illegal drugs;[Footnote 2] (2) develop a consolidated National Drug
Control Program budget proposal designed to implement the Strategy;
[Footnote 3] and (3) coordinate and oversee the implementation by the
National Drug Control Program agencies of the policies, goals,
objectives, and priorities established for the National Drug Control
Program and the fulfillment of the responsibilities of such agencies
under the Strategy.[Footnote 4] Agencies submit to ONDCP the portion
of their budget requests dedicated to drug control, which they prepare
as part of their overall budget submission for the Office of
Management and Budget (OMB), and these requests are to be included in
the President's budget request. In February 2011, ONDCP released the
Fiscal Year 2012 Funding Highlights for the Drug Control Budget, which
reflected a restructuring of the prior year's Drug Control Budget.
[Footnote 5] This restructuring resulted in a total of 39 departments
and their components and independent agencies with drug control
responsibilities and a total budget request of about $26 billion.
(Enclosure I shows the 39 federal components, agencies, and programs
in the fiscal year 2012 Drug Control Budget). The Office of National
Drug Control Policy Reauthorization Act of 2006 mandates that we
annually conduct an audit relating to the programs and operations of
ONDCP.[Footnote 6] Thus, this year, we examined ONDCP's efforts to
develop and monitor the Drug Control Budget, particularly in light of
potential efforts to consider reauthorization of ONDCP beyond fiscal
year 2010. Specifically, we (1) examined ONDCP's process for
developing and monitoring the Drug Control Budget and (2) obtained
selected drug control agencies' views on the benefits and challenges
of developing and implementing the Drug Control Budget.
To address these objectives, we analyzed applicable laws; available
ONDCP documents such as circulars and guidance; and reports on ONDCP,
the National Drug Control Strategies for 2005 to 2010, and the Drug
Control Budget for fiscal years 2007 to 2012. To better understand how
ONDCP's budget development process operates, we analyzed portions of
ONDCP's funding guidance to the Departments of Justice (DOJ) and
Health and Human Services (HHS) for fiscal years 2005 through 2010.
[Footnote 7] We reviewed funding guidance for DOJ and HHS because
these two agencies represent a large proportion of drug control
funding. For example, in fiscal year 2010, DOJ and HHS programs
comprised 49 percent of the Drug Control Budget. In addition, we
interviewed senior ONDCP officials about how they work with agencies
during the process for developing and executing the Drug Control
Budget and how they address any challenges agencies reported they face.
We also conducted interviews with officials from a nonprobability
sample of 6 of the 49 departments and their component agencies,
independent agencies, or programs with drug control responsibilities
that were included in ONDCP's Drug Control Budget for the most recent
year for which funding was enacted, fiscal year 2010. We selected 4 of
these agencies because they had the largest drug control budgets for
fiscal year 2010 among the 23 agencies and programs listed in the Drug
Control Budget. These agencies--the Department of Defense (DOD), the
Drug Enforcement Administration (DEA), Customs and Border Protection
(CBP), and Substance Abuse and Mental Health Services Administration
(SAMHSA)--collectively represent 57 percent of the Drug Control
Budget. We selected 2 additional agencies--Bureau of Prisons (BOP) and
Administrative Office of the United States Courts (AOUSC)--that have
the largest drug control budgets among the 26 agencies listed in the
Drug Control Budget as Other Related Drug Control agencies for fiscal
year 2010.[Footnote 8] BOP and AOUSC collectively represent about 62
percent of the fiscal year 2010 drug control funding for Other Related
Drug Control agencies. (Enclosure II shows the 23 federal components,
agencies, and programs in the fiscal year 2010 Drug Control Budget and
the 26 federal agencies designated as Other Related Drug Control
Program agencies by ONDCP for fiscal year 2010). We analyzed the
results of our interviews and then used these results to develop a
questionnaire, which we sent to the 6 agencies to obtain a set of more
structured responses on ONDCP's process for developing and monitoring
the execution of the Drug Control Budget. All 6 agencies completed our
questionnaire and we then conducted follow-up interviews with
officials from the agencies regarding their questionnaire responses.
The results of our interviews are not generalizable, but provided
insights into the development of the Drug Control Budget.
We conducted this performance audit from June 2010 to April 2011 in
accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe
that the evidence obtained provides a reasonable basis for findings
and conclusions based on our audit objectives.
Results in Brief:
National Drug Control Program agencies are required to follow a
detailed process in developing their annual budget submissions for
inclusion in the Drug Control Budget. ONDCP outlines its process in
circulars that it sends to agencies which provide detailed reporting
instructions on how to properly prepare their drug budget submissions.
By statute, the Director of ONDCP is required to provide, by July 1 of
each year, budget recommendations to the heads of departments and
agencies with responsibilities under the National Drug Control
Program.[Footnote 9] According to ONDCP, these budget recommendations
are intended to specifically delineate what priorities each agency is
expected to fund in the coming budget submission. By statute, the head
of each department, agency, or program of the federal government with
responsibilities under the Strategy is required to transmit to the
Director of ONDCP a copy of their proposed drug control budget request
at the same time as the budget request is submitted to their superiors
(and before submission to OMB).[Footnote 10] ONDCP refers to this
request as the summer budget submission. The ONDCP Director is
required to review each summer budget submission and transmit a
written summary of its review to each agency stating whether the
budget submission is adequate to implement the agency's
responsibilities towards the objectives of the Strategy.
With regard to the benefits and challenges of the budget process,
officials from at least four of the six agencies we contacted reported
that ONDCP's process for developing the Drug Control Budget is
somewhat or very effective in (1) identifying Drug Control Budget
priorities, (2) ensuring sufficiency of resources to implement the
Strategy, or (3) providing a record of national drug control
expenditures. The most pervasive challenges agencies we contacted
identified were related to the timing of ONDCP's annual funding
guidance and written reviews of agencies' budget submissions. Some
agencies noted that these documents were too late to impact their
initial budget formulation efforts, but ONDCP plans to issue funding
guidance and written reviews earlier in future fiscal years that
should address these concerns.
In commenting on a draft of this report, ONDCP noted that the report
provides a thoughtful review of ONDCP's process for developing
programs and policies in support of the National Drug Control Strategy
and highlights the various interactions it has with other federal drug
control agencies. ONDCP stated that the feedback provided by the
report will help ONDCP build stronger and more communicative
relationships with these agencies and enable ONDCP to improve its
budgetary process.
ONDCP Has an Iterative Process for Developing and Monitoring the Drug
Control Budget:
Pursuant to statute and ONDCP circulars, National Drug Control Program
agencies are required to follow a detailed process in developing their
annual budget submissions for inclusion in the Drug Control Budget,
which provides information on the government's funding requested for
drug control to implement the Strategy. The Director of ONDCP is
responsible for promulgating this Strategy,[Footnote 11] which is to
include, among other things, comprehensive, research-based, long-
range, quantifiable goals for reducing illicit drug use in the United
States, as well as annual quantifiable and measurable objectives and
specific targets to accomplish the goals the Director determines may
be achievable during each year; a review of international, state,
local, and private sector drug control activities to ensure that the
United States pursues coordinated and effective drug control at all
levels of government; and an assessment of current illicit drug use
and availability.[Footnote 12] In 2010, ONDCP changed its approach and
moved from publishing a 1-year Strategy to publishing a 5-year
Strategy, which is to be updated annually.
ONDCP outlines its budget process in circulars that it sends to
agencies which provide detailed reporting instructions on how to
properly prepare their drug budget submissions and discuss topics such
as budget formulation, budget execution, accounting for drug control
expenditures, and policy coordination.[Footnote 13] In addition, by
statute, the Director of ONDCP is required to provide, by July 1 of
each year, budget recommendations--which apply to the next budget year
scheduled for formulation and each of the 4 subsequent fiscal years
and address funding priorities developed in the Strategy--to the heads
of departments and agencies with responsibilities under the National
Drug Control Program.[Footnote 14] ONDCP refers to these budget
recommendations as funding guidance. According to ONDCP, its funding
guidance is intended to specifically delineate what priorities each
agency is expected to fund in the coming budget submission. ONDCP
officials explained that the funding guidance is derived from the
Strategy. For example, the funding guidance to HHS for fiscal year
2009 discussed ONDCP's support for specific HHS initiatives that were
also included in the corresponding Strategy--such as the Access to
Recovery Initiative which is intended to provide vouchers for
community-based services for individuals seeking alcohol or drug
treatment.[Footnote 15] Similarly, ONDCP's funding guidance to DOJ for
fiscal year 2009 provided further detail on initiatives that were
included in the Strategy such as targeting money laundering
operations. According to ONDCP, the funding guidance allows ONDCP to
outline its priorities early in the budget development process, and
ONDCP must rely upon the agencies to include ONDCP's priorities in
their budget submissions to ensure that the Strategy is adequately
resourced.
Pursuant to law, for each fiscal year, the head of each department,
agency, or program in the federal government with responsibilities
under the Strategy is required to transmit to the Director of ONDCP a
copy of their proposed drug control budget request at the same time as
the budget request is submitted to their superiors (and before they
submit it to OMB).[Footnote 16] This proposed drug control budget
request is referred to as the summer drug budget submission by ONDCP.
ONDCP officials said that ONDCP uses the funding guidance and
agencies' progress towards meeting performance measures the agencies
have developed for their drug control programs to assess the adequacy
of the agencies' budget submissions and evaluate how closely the
budget submissions correspond to the priorities in the Strategy. In
addition, the ONDCP Director is required to review each summer budget
submission and transmit a written summary of its review to each agency
stating whether the budget submission is adequate to implement the
agency's responsibilities towards the objectives of the Strategy. When
the ONDCP Director concludes that an agency's summer submission is
adequate to implement the objectives of the Strategy, the Director
submits to the head of the applicable agency a written statement
confirming its adequacy. In contrast, if the Director concludes that a
submission is not adequate, the Director shall submit to the head of
the applicable agency a written description of funding levels and
specific initiatives that would, in the determination of the Director,
make the submission adequate.
Following the summer budget review process, agencies are required to
submit a fall budget submission to ONDCP incorporating the results of
its summer review.[Footnote 17] Agencies are required to submit the
fall budget submission to ONDCP at the same time they submit their
fall budget request to OMB (in preparation for inclusion in the
President's budget request). Similar to the summer drug budget
submission, ONDCP assesses whether it is adequate to implement the
Strategy and addresses enhancements identified in ONDCP's written
results of its review of an agency's summer budget submission. ONDCP
relies primarily on its summer review, agencies' performance, and
funding guidance to assess the adequacy of the agencies' budget
submission. If ONDCP determines that an agency's fall budget
submission is adequate to implement the Strategy, ONDCP issues a
written notice stating that the agency's drug budget is certified. If
ONDCP determines that an agency's fall budget submission is
inadequate, ONDCP issues a written notice stating that the agency's
drug budget is decertified and ONDCP provides a copy of this
decertification to the Senate and the House of Representatives, and
the appropriate congressional committees. After ONDCP's certification
process, ONDCP provides input to various parties, including OMB. For
example, ONDCP may appeal to OMB on behalf of an agency if OMB
suggests revisions to an agency's drug control budget. According to
ONDCP officials, throughout the history of ONDCP, it has decertified
only one agency's budget submission: DOD in fiscal year 1999.[Footnote
18] Nevertheless, ONDCP officials stated that the ability to decertify
is important because it gives ONDCP valuable leverage in its budget
negotiations that is key to accomplishing ONDCP's objectives.
On February 14, 2011, ONDCP announced that it had changed the
structure of the Drug Control Budget in connection with language in
the Office of National Drug Control Policy Reauthorization Act of 2006
that the federal drug control budget should represent the full range
of federal spending, including costs associated with the consequences
of drug use.[Footnote 19] ONDCP officials said ONDCP made this change
based on a review of federal programs with a drug control nexus,
considering whether the program had an acceptable methodology for
estimating its drug control budget based on empirical data. These data
included determining which portion of an agency's funding is for drug-
control programs or activities versus non-drug control programs. In so
doing, ONDCP added 18 agencies or programs to the drug control budget
and eliminated the "Other Related Drug Control Program Agencies"
appendix found in prior drug control budget documents. These agencies'
drug control budgets are now to be subject to increased ONDCP
oversight through requirements such as the budget review and
certification process. ONDCP stated that over the next year, it would
also review a number of programs that it identified as having a drug
control nexus but, according to ONDCP, did not have an acceptable
budget estimation methodology.
ONDCP officials also said that they intend to revise performance
measures in 2011 which they use to review and assess agencies' budget
submissions. Examples of indicators of performance for prevention
programs range from perception of harm from drug use, to attitudes
towards drug use, to actual drug use. ONDCP officials stated that
ONDCP intends to establish a Performance Reporting System (PRS) that
is expected to include updated performance measures, aligned with the
Strategy's measurable goals, to provide timely and accurate feedback
on how agencies' efforts are contributing to the Strategy. By statute,
not later than February 1 of each year, the Director of ONDCP is
required to submit to Congress as part of the Strategy, a description
of a national drug control performance measurement system that, among
other things, evaluates the contribution of demand reduction and
supply reduction activities implemented by each National Drug Control
Program agency in support of the Strategy.[Footnote 20] ONDCP
officials stated that it plans to report on progress towards these
goals in subsequent Strategies and also added that the PRS report
would be released in calendar year 2011.
ONDCP also is responsible for overseeing and monitoring the execution
of drug control programs.[Footnote 21] Specifically, ONDCP's authority
extends to agencies' appropriated funds, whereby ONDCP, among other
things, must approve certain reprogramming or transfer requests
related to drug control activities from National Drug Control Program
agencies.[Footnote 22] By statute, the Director of ONDCP must require
the National Drug Control Program agencies to submit to the Director
no later than February 1 of each year, a detailed accounting of all
funds expended by the agencies for National Drug Control Program
activities during the previous fiscal year, and require such
accounting to be authenticated by the Inspector General (IG) for each
agency prior to submission to the Director.[Footnote 23] ONDCP also
requires a performance summary report which is to include, among other
things, performance measures, prior years' performance targets and
results, and current year performance targets. According to ONDCP's
circular regarding the annual accounting and authentication of drug
control funds and related performance, the detailed accounting
submission and the performance summary report are to be provided to
the agency's IG for the purpose of expressing a conclusion about the
reliability of each assertion made in the report in the form of an IG
authentication.[Footnote 24]
Selected Agencies Generally Report ONDCP's Budget Process Is Effective
in Prioritizing, Allocating, and Documenting Resources; ONDCP Plans to
Accelerate Issuing Guidance in Response to Agencies' Concerns:
Officials from at least four of the six agencies we contacted reported
that ONDCP's process for developing the Drug Control Budget is
somewhat or very effective in (1) identifying Drug Control Budget
priorities; (2) ensuring sufficiency of resources to implement the
Strategy (that is, helping to ensure resources are authorized and
allocated); and (3) providing a record of national drug expenditures
(see table 1). With regard to priorities, officials representing five
of the six agencies generally stated that agencies' budget submissions
aligned with ONDCP's priorities. Moreover, an official at one of the
five agencies stated that ONDCP's cross-cutting agency perspective and
overarching guidance provides a unified national counternarcotics
strategy. Nonetheless, officials from five of the six agencies stated
that ONDCP's funding guidance is not the only factor in determining
the agencies' budget priorities, in most cases because either OMB or
their departments make priority decisions--a factor that can reflect
the inherent tension associated with making decisions about competing
priorities within the context of diminished resources.[Footnote 25]
With regard to ensuring sufficiency of resources to implement the
Strategy, one agency official stated that resources in the drug
control budget were linked to the priorities outlined in the Strategy,
and another stated that resources in the budget were sufficient to
meet the goals outlined in the Strategy. Finally, officials from four
of the six agencies reported that the process for developing the Drug
Control Budget is somewhat or very effective in providing a record of
national drug control expenditures. Specifically, a senior official
from one of these agencies stated that the process provides an
accurate depiction of their drug control expenditures. For information
on the additional benefits agencies identified, although less
frequently, see enclosure III.
Table 1: Most Commonly Reported Benefits Associated with ONDCP's Drug
Control Process Identified by Selected Agencies:
Please indicate how effectively each of the following aspects of the
National Drug Control Budget development process is working for your
agency:
Benefit: Identification of National Drug Control Budget priorities;
Agency responses by category:
Very effective: 2;
Somewhat effective: 3;
Not effective: 1;
Not applicable: 0;
Total: 6.
Benefit: Sufficiency of resources to implement the National Drug
Control Strategy;
Very effective: 2;
Somewhat effective: 3;
Not effective: 0;
Not applicable: 1;
Total: 6.
Benefit: Record of national drug control expenditures;
Agency responses by category:
Very effective: 3;
Somewhat effective: 1;
Not effective: 0;
Not applicable: 2;
Total: 6.
Source: GAO analysis of questionnaire responses.
[End of table]
Despite reporting that the budget process is generally effective in
identifying priorities, among other things, officials at the six
agencies identified a total of 14 different challenges they
encountered while preparing their Drug Control Budget submissions or
authenticating drug control expenditures and their associated
activities; however, none of the challenges were pervasive across all
six agencies and officials' views of the challenges were mixed. Some
of the officials characterized their experiences addressing these
issues as challenging or very challenging, whereas others said that
they did not encounter challenges or the issue was not applicable to
their agency.[Footnote 26] Table 2 reflects the 4 most commonly
reported challenges the six agencies identified with ONDCP's drug
control budget process. For additional details on the challenges cited
less frequently by the agencies we contacted, see enclosure III.
Table 2: Most Commonly Reported Challenges Associated with ONDCP's
Drug Control Process Identified by Selected Agencies:
Please indicate how challenging each of the following aspects of the
National Drug Control Budget development process is for your agency:
Challenge: Timing of ONDCP's annual funding guidance;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 3;
Not challenging: 1;
Not applicable: 1;
Total: 6.
Challenge: Timing of ONDCP's written review of summer budget
submissions;
Agency responses by category:
Very challenging: 2;
Somewhat challenging: 2;
Not challenging: 1;
Not applicable: 1;
Total: 6.
Challenge: ONDCP's December 31st deadline for components to submit
reports to the Inspector General for attestation review;
Agency responses by category:
Very challenging: 0;
Somewhat challenging: 4;
Not challenging: 1;
Not applicable: 1;
Total: 6.
Challenge: Incorporation of budget constraints into Interagency
Working Group recommendations[A];
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 3;
Not challenging: 0;
Not applicable: 2;
Total: 6.
Source: GAO analysis of questionnaire responses.
[A] In April 2009, ONDCP convened a Demand Reduction Interagency
Working Group (IWG), comprised of subject matter experts representing
various drug control agencies, to increase the nation's focus on
preventing and treating substance abuse.
[End of table]
Challenges related to the timing of ONDCP's annual funding guidance
and written reviews of agencies' summer budget submissions were most
pervasive among agencies we contacted. Specifically, four of the six
agencies reported that the timing of ONDCP's funding guidance was
somewhat or very challenging. As previously discussed, ONDCP is
required to issue funding guidance to agencies by July 1 of each year
to identify specific programs and priorities each agency is expected
to fund to support the Strategy. Officials representing three agencies
said that they received ONDCP's funding guidance after their agencies'
internal budget formulation processes were completed. For example, for
3 of the last 5 fiscal years, two of these agencies were required to
submit their initial budget formulations to their departments before
ONDCP issued funding guidance and thus, they could not incorporate
ONDCP's guidance into their departmental submission.
ONDCP officials explained that because the funding guidance provides
more detail than the Strategy, ONDCP does not issue the funding
guidance until after ONDCP releases the Strategy in early February.
Thus, for fiscal year 2012, ONDCP issued the Strategy late, in May
2010--3 months after the deadline established by statute. One month
later, in June 2010, ONDCP issued funding guidance which was viewed as
too late for three of the six agencies. Similarly, during the prior
year, ONDCP issued the fiscal year 2011 funding guidance in June 2009,
which was viewed as too late for two of the six agencies. According to
ONDCP officials, the 2009 guidance was not issued until June 2009
because the new ONDCP Director had not been confirmed until 1 month
earlier, in May 2009 and ONDCP delayed issuance in order to determine
whether the guidance accurately reflected the policy and program
priorities of the new Director. Officials at three of the six agencies
stated that they would prefer that ONDCP issue the funding guidance in
February or March. ONDCP officials stated that they intend to issue
the funding guidance earlier in future fiscal years to address agency
concerns about the timing of the guidance. In addition, four of the
six agencies we contacted reported that the timing of ONDCP's written
review of summer budget submissions can be somewhat or very
challenging. ONDCP officials stated that they would like to give
agencies adequate time for a departmental review of ONDCP funding
guidance before they provide their summer budget submissions to their
Departments and ONDCP. They explained that this is intended to assist
agencies in accommodating the ONDCP funding guidance before their
departmental and ONDCP reviews. ONDCP officials also stated that they
plan to issue written reviews earlier for future fiscal years to
address agency concerns about the timing of the reviews.
As discussed earlier, National Drug Control Program agencies are to
submit to ONDCP, not later than February 1 of each year, a detailed
accounting of all funds expended by the agencies for drug control
program activities during the previous fiscal year, which are to be
authenticated by the IG of the relevant agency via an attestation
report. Officials with four agencies we contacted reported that
ONDCP's December 31st deadline for components to submit reports to the
IG for attestation review could be somewhat challenging. One senior
official explained that agencies can encounter difficulty preparing
the reports at the end of the calendar year, when staff are not always
available because of holidays and annual leave and the components have
the competing task of preparing the budget for the upcoming fiscal
year. ONDCP officials acknowledged that the challenge for agencies may
be related to the statutorily required February 1st deadline for
submission of the attestation reports, but noted that the deadline was
agreed upon by the IGs when ONDCP developed the applicable circular
and the deadline is consistent with the deadline for preparing
financial documents under the Chief Financial Officers (CFO) Act.
[Footnote 27] Given the deadline for submitting these reports,
agencies have a 1-month time frame for completing the data and
completing the reports from the end of the calendar year to February 1.
Finally, officials from four of the six agencies reported that one of
the challenges they encountered was that ONDCP's Demand Reduction
Interagency Working Group (IWG) did not incorporate budget
constraints.[Footnote 28] For example, a senior official from one
agency said that IWG discussions about agencies' drug budgets could be
somewhat challenging because , at the time of these discussions,
funding levels are not yet known and the priorities discussed by the
IWG may potentially affect the funds available for other programs.
Likewise, three of these four agencies said it could be somewhat
challenging to develop the budget because, according to officials at
these agencies, ONDCP priorities may not be accompanied by recommended
budgetary offsets. A senior official from one of these agencies
commented that when the agency is developing a budget with reduction
goals, there should be corresponding budgetary offsets to fund
initiatives. ONDCP officials said the incorporation of budget
constraints is an inherent challenge in any budget process and that
they try to consider budget constraints when formulating priorities.
Moreover, among other things, ONDCP, OMB, and the Domestic Policy
Council's June 2010 memorandum placed responsibility for identifying
and recommending offsetting reductions for proposed drug program
increases on drug control agencies. ONDCP officials said that this
focus on funding offsets was intended to recognize that there are
competing priorities when developing budgets and to clarify how
agencies were to manage such priorities (see enclosure III for further
details on this memorandum). They also said that ONDCP requests that
agencies submit recommended budget offsets with their summer drug
budget submission so that ONDCP can ensure the offsets are consistent
with ONDCP's priorities.
Agency Comments and Our Evaluation:
We requested comments on a draft of this report from the Director of
the Office of National Drug Control Policy. ONDCP provided written
comments on April 27, 2011 which are summarized below and reprinted in
Enclosure IV.
In its comments, ONDCP noted that the report provides a thoughtful
review of ONDCP's process for developing programs and policies in
support of the National Drug Control Strategy. ONDCP stated that the
report demonstrated a comprehensive understanding of ONDCP's role in
the budget process and provided feedback that highlights the various
interactions it has with other federal drug control agencies. ONDCP
further stated that this feedback will help it build stronger and more
communicative relationships with other drug control agencies and
enable ONDCP to improve its budgetary process.
We are sending copies of this report to the Director of the Office of
National Drug Control Policy, the Director of the Office of Management
and Budget, appropriate congressional committees, and other interested
parties. In addition, this report will be available at no charge on
the GAO Web site at [hyperlink, http://www.gao.gov]. If you have any
further questions about this report, please contact me at (202) 512-
8777 or larencee@gao.gov. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last
page of this report. Key contributors to this report are listed in
enclosure V.
Signed by:
Eileen Regan Larence:
Director, Homeland Security & Justice Issues:
Enclosures (5):
List of Committees:
The Honorable Patrick J. Leahy:
Chairman:
Committee on the Judiciary:
United States Senate:
The Honorable Richard Durbin:
Chairman:
The Honorable Jerry Moran:
Ranking Member:
Subcommittee on Financial Services and General Government:
Committee on Appropriations:
United States Senate:
The Honorable Dianne Feinstein:
Chairman:
Caucus on International Narcotics Control:
United States Senate:
The Honorable Charles E. Grassley:
Ranking Member:
Committee on the Judiciary:
Co-Chairman:
Caucus on International Narcotics Control:
United States Senate:
The Honorable Lamar Smith:
Chairman:
The Honorable John Conyers, Jr.
Ranking Member:
Committee on the Judiciary:
House of Representatives:
The Honorable Jo Ann Emerson:
Chairwoman:
The Honorable José E. Serrano:
Ranking Member:
Subcommittee on Financial Services and General Government:
Committee on Appropriations:
House of Representatives:
The Honorable Trey Gowdy:
Chairman:
The Honorable Danny Davis:
Ranking Member:
Subcommittee on Health Care, District of Columbia, Census and the
National Archives:
Committee on Oversight and Government Reform:
House of Representatives:
[End of section]
Enclosure I: Federal Components, Agencies and Programs Included in the
Fiscal Year 2012 Drug Control Budget:
The following is a list of the federal components, agencies and
programs included in the Fiscal Year 2012 Drug Control Budget.
Department of Agriculture:
* U.S. Forest Service:
Court Services and Offender Supervision Agency for the District of
Colombia Department of Defense:
* Drug Interdiction and Counterdrug Activities:
* Counterdrug OPTEMPO[Footnote 29]
Department of Education Federal Judiciary Department of Health and
Human Services:
* Centers for Medicare and Medicaid Services:
* Health Resources and Services Administration:
* Indian Health Service:
* National Institute on Alcohol Abuse and Alcoholism:
* National Institute on Drug Abuse:
* Substance Abuse and Mental Health Services Administration:
Department of Homeland Security:
* Customs and Border Protection:
* Federal Emergency Management Agency:
* Federal Law Enforcement Training Center:
* Immigration and Customs Enforcement:
* United States Coast Guard:
* Office of Counternarcotics Enforcement:
Department of the Interior:
* Bureau of Indian Affairs:
* Bureau of Land Management:
* National Park Service:
Department of Justice:
* Assets Forfeiture Fund:
* Bureau of Prisons:
* Criminal Division:
* Drug Enforcement Administration:
* Organized Crime Drug Enforcement Task Force Program:
* Office of Federal Detention Trustee:
* Office of Justice Programs:
* National Drug Intelligence Center:
* U.S. Attorneys:
* U.S. Marshals Service:
Office of National Drug Control Policy Small Business Administration
Department of State:
* Bureau of International Narcotics and Law Enforcement Affairs:
* United States Agency for International Development:
Department of Transportation:
* Federal Aviation Administration:
* National Highway Traffic Safety Administration:
Department of the Treasury:
* Internal Revenue Service:
Department of Veterans Affairs:
* Veterans Health Administration:
[End of Enclosure I]
Enclosure II: Federal Departments, Components, Agencies, and Programs
Included in the Fiscal Year 2010 Drug Control Budget and Those
Designated as Other Related Drug Control Program Agencies:
The following are the 23 federal components, agencies, and programs
included in the Fiscal Year 2010 Drug Control Budget:
Department of Defense:
Department of Education:
Department of Health and Human Services:
* Centers for Medicare and Medicaid Services:
* National Institute of Health - National Institute on Drug Abuse:
* Substance Abuse and Mental Health Services Administration:
* Indian Health Services:
Department of Homeland Security:
* Customs and Border Protection:
* Immigration and Customs Enforcement:
* United States Coast Guard:
* Office of Counternarcotics Enforcement:
Department of the Interior:
* Bureau of Indian Affairs:
Department of Justice:
* Bureau of Prisons:
* Drug Enforcement Administration:
* Organized Crime Drug Enforcement Task Force Program:
* Office of Justice Programs:
* National Drug Intelligence Center:
Executive Office of the President:
* Office of National Drug Control Policy:
Department of State:
* Bureau of International Narcotics and Law Enforcement Affairs:
* United States Agency for International Development:
Department of Transportation:
* National Highway Traffic Safety Administration:
Department of the Treasury:
* Internal Revenue Service:
Department of Veterans Affairs:
* Veterans Health Administration:
Small Business Administration:
The following are 26 agencies and programs in the Fiscal Year 2010
Drug Control Budget reflected as Other Related Drug Control Program
Agencies.
Department of Agriculture:
* U.S. Forest Service:
* Food and Nutrition Service:
Corporation for National and Community Service DC Court Services and
Offender Supervision Agency Department of Health and Human Services:
* Administration for Children and Families:
* Centers for Disease Control and Prevention:
* National Institute on Alcohol Abuse and Alcoholism:
Department of Homeland Security:
* U.S. Secret Service:
* Federal Law Enforcement Training Center:
Department of the Interior:
* Bureau of Land Management:
* National Park Service:
* Indian Police Academy:
The Federal Judiciary:
* Administrative Office of the United States Courts:
Department of Justice:
* Assets Forfeiture Fund:
* Bureau of Alcohol, Tobacco, Firearms, and Explosives:
* U.S. Attorneys:
* Bureau of Prisons[Footnote 30]
* Community Oriented Policing Services:
* Criminal Division:
* Federal Bureau of Investigation:
* Office of Federal Detention Trustee:
* INTERPOL:
* U.S. Marshals Service:
Department of Labor:
* Internal Drug-Free Workplace:
* Job Corps:
Department of Transportation:
* Federal Aviation Administration:
[End of Enclosure II]
Enclosure III: Summary of Benefits and Challenges Associated with the
Drug Control Budget Development Process That the Six Selected Agencies
Reported on a Less Frequent Basis:
This enclosure describes the additional benefits and challenges
regarding the process for developing the National Drug Control Budget
that were reported less frequently by agency officials at the six
agencies we contacted. Specifically, table 3 lists two benefits less
frequently reported by these six agencies.
Table 3: Benefits Associated with the Office of National Drug Control
Program's (ONDCP) Drug Control Budget Process Identified on a Less
Frequent Basis by Six Selected Agencies:
Please indicate how effectively each of the following aspects of the
National Drug Control Budget development process is working for your
agency:
Benefit: Collaboration, communication, and information sharing among
drug control agencies;
Agency responses by category:
Very effective: 0;
Somewhat effective: 3;
Not effective: 1;
Not applicable: 2;
Total: 6.
Benefit: Agency input into the National Drug Control Strategy and/or
ONDCP priorities through the Interagency Working Group;
Agency responses by category:
Very effective: 1;
Somewhat effective: 1;
Not effective: 1;
Not applicable: 3;
Total: 6.
Source: GAO analysis of questionnaire responses.
[End of table]
Officials representing three of the six agencies said that the ONDCP
process is somewhat effective in increasing collaboration,
communication, and information sharing among drug control agencies.
For instance, a senior official at one of these agencies stated that
an Interagency Working Group initiated by ONDCP to address demand
reduction issues led to greater collaboration and cooperation among
drug control agencies than in previous years. Similarly, of the six
agencies reported that agency input into either or both the Strategy
and ONDCP priorities through the Interagency Working Group was
somewhat or very effective. For example, a senior official at one of
these agencies stated that in prior years, his agency had little or no
input into the Strategy, but, by participating in the Interagency
Working Group, his agency worked with ONDCP to create the 2010
Strategy and corresponding funding guidance. A senior official from
the other agency stated that his agency's review of and comments on
the Strategy are reflected in it as are the agency's drug control
efforts. ONDCP officials stated that the 2010 Strategy reflected much
more agency input than in past years and the Strategy was vetted by
the drug control Cabinet Secretaries and through an interagency
clearance process. Table 4 lists 10 challenges associated with ONDCP's
process for developing and monitoring the Drug Control Budget less
frequently reported by the six agencies in our review.
Table 4: Challenges Associated with ONDCP's Process for Developing and
Monitoring the Drug Control Budget Less Frequently Reported by Six
Selected Agencies:
Please indicate how challenging each of the following aspects of the
National Drug Control Budget development process is for your agency:
Challenge: Different priorities from each of the Executive Offices of
the President;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 1;
Not applicable: 2;
Total: 6.
Challenge: Absence of recommended budget offsets accompanying ONDCP's
priorities;
Agency responses by category:
Very challenging: 0;
Somewhat challenging: 3;
Not challenging: 1;
Not applicable: 2;
Total: 6.
Challenge: ONDCP priorities may not take into account pending requests
in Congress;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 1;
Not applicable: 2;
Total: 6.
Challenge: ONDCP's dual role: policy oversight and program management;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 1;
Not applicable: 2;
Total: 6.
Challenge: Frequency of communication between drug control agencies
and ONDCP;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 3;
Not applicable: 0;
Total: 6.
Challenge: Type of staff involved (i.e., budget, policy, program,
department) in the communication between drug control agencies and
ONDCP;
Agency responses by category:
Very challenging: 0;
Somewhat challenging: 3;
Not challenging: 3;
Not applicable: 0;
Total: 6.
Challenge: Workload of IG attestation reports;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 2;
Not applicable: 1;
Total: 6.
Challenge: ONDCP's recommended changes in budget formulation
methodology;
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 0;
Not applicable: 3;
Total: 6.
Challenge: Different budget formats of ONDCP (single-year) and OMB
(multiyear);
Agency responses by category:
Very challenging: 1;
Somewhat challenging: 2;
Not challenging: 1;
Not applicable: 2;
Total: 6.
Challenge: Timing of ONDCP's fall certification letter;
Agency responses by category:
Very challenging: 0;
Somewhat challenging: 2;
Not challenging: 3;
Not applicable: 1;
Total: 6.
Source: GAO analysis of questionnaire responses.
[End of table]
Incorporation of ONDCP's Priorities. Officials from half of the six
agencies we contacted identified challenges related to competing
priorities and incorporating ONDCP's priorities into their budgets.
Specifically, these agencies cited challenges associated with
developing their drug control-related budgets for ONDCP including (1)
different priorities from the Executive Offices of the President, (2)
the absence of recommended offsets accompanying ONDCP's priorities,
(3) ONDCP priorities not taking into account pending requests made in
a prior fiscal year, and (4) ONDCP's dual policy and program
management role.
Officials from three agencies reported that different priorities from
the Executive Office of the President--such as balancing ONDCP's drug
control advocacy role with OMB's role of promoting spending
constraints--is somewhat or very challenging. For example, whereas
ONDCP may be an advocate for agencies increasing funding for drug
control programs, OMB may be an advocate for agencies finding ways to
leverage scarce resources in an era of budgetary constraint, such as
the Office of Management and Budget's (OMB) efforts in 2010 to freeze
domestic nonsecurity spending. In an effort to demonstrate agreement
among the Executive Office of the President, as previously discussed,
in June 2010, ONDCP, OMB, and the Domestic Policy Council (DPC) issued
a joint memorandum to provide guidance to departments and agencies for
the development of proposals for the fiscal year 2012 budget intended
to advance and support the Strategy.[Footnote 31] Among other things,
the memorandum stated that:
"Agencies are urged to leverage, align, and/or target well performing,
evidence-based programs to attain the goals outlined in the Strategy.
In keeping with the Administration's 3-year freeze on domestic non-
security discretionary spending, agencies are advised to identify and
recommend offsetting reductions for any proposed drug program
increases.
Most agencies receiving this guidance have primary missions not
directly tied to drug control but nonetheless have critical
responsibilities in implementing the Strategy. Therefore, we ask that
all budget decisions be carefully weighed against their impact on
achieving the Administration's drug control goals, as well as other
Administration priorities."
ONDCP officials said that the joint memorandum was intended as a
policy statement of the administration's and ONDCP's priorities while
ONDCP's funding guidance provided greater detail about ONDCP's
priorities than the joint memorandum.
Likewise, officials at three agencies said it could be somewhat
challenging to develop the budget because ONDCP priorities may not be
accompanied by recommended budgetary offsets. A senior official from
one of these agencies commented that when the agency is developing a
budget with reduction goals, there should be corresponding budgetary
offsets to funding initiatives. Additionally, similar to the memo's
directives, a senior official at another of these agencies explained
that offsets should be determined internally by the agency and in
collaboration with ONDCP and OMB. In addition, officials at three of
the agencies said that ONDCP priorities may not take into
consideration funding requests that agencies have already made in
prior year budgets. For example, ONDCP's guidance may direct an agency
to request funding for a program for the next fiscal year while
Congress is considering whether to fund a request for the same program
as part of budget deliberations submitted in the prior fiscal year.
ONDCP officials stated that due to ONDCP's role of integrating and
coordinating federal drug control efforts, at times ONDCP's priorities
may be at odds with those of individual departments, and recognized
the inherent challenges agencies can face in balancing these competing
priorities. ONDCP officials explained that they are an advocate for
drug control policy and are to ensure the priorities of the
administration are funded.
Additionally, three of the agencies we contacted reported that ONDCP's
dual policy oversight and program management role was somewhat or very
challenging.[Footnote 32] A senior official at one of the agencies
explained that ONDCP may not be a neutral advocate for funding the
best drug control programs because ONDCP manages its own drug control
programs. A senior official from another agency noted that ONDCP's
dual policy and oversight roles are limited. ONDCP officials stated
that the drug control programs managed by ONDCP are relatively small
and they believe these programs do not compete for funding with other
federal drug control programs. Thus, they disagreed that there is a
conflict between ONDCP's policy oversight and program management roles.
Frequency of Communication and Type of Staff Participating. Three
agencies also identified challenges related to communication with
ONDCP in the Drug Control Budget development process.[Footnote 33]
These agencies reported that frequency of communication with ONDCP
could be somewhat or very challenging. By contrast, officials from the
three remaining agencies reported that frequency of communication was
not a challenge. Of the three agencies identifying communication
challenges, a senior official stated that communication with ONDCP is
infrequent, as ONDCP primarily contacts the agency when it has
specific questions about the agency's budget submission, such as when
the summer or fall drug budget submissions are due. Additionally,
agency officials commented that the role of the agency staff (e.g.,
staff having budget, policy, or program responsibility) involved in
communication with ONDCP could be somewhat challenging because ONDCP
may not be communicating with knowledgeable staff on a particular
issue. For example, a senior official at another agency stated that
ONDCP frequently has technical clarification questions, which could be
resolved more quickly if ONDCP contacted the officials with knowledge
about these areas rather than senior departmental staff. ONDCP
officials stated that they consistently and frequently communicate
with drug control agencies and that the agency's departmental budget
staff requested that ONDCP coordinate through their staff instead of
dealing directly with the bureaus. ONDCP agreed to this arrangement
with the understanding that information would be provided from the
bureaus without modification and in a timely manner.
Budget Formulation and Format. Officials in the agencies we contacted
also reported additional challenges associated with budget
formulation. For example, three agencies reported challenges related
to ONDCP's budget development requirements, including ONDCP's budget
formulation methodology and the challenge associated with determining
the portion of an agency's costs that can relate to various
activities--such as costs associated with technology or
transportation. Determining the portion of an agency's costs that
relate to various activities include considering those that are
associated with its drug control mission (i.e., costs that are within
ONDCP's jurisdiction) and those that are not (i.e., costs that are not
related to the agency's drug control mission). Thus, according to
officials at one agency, ONDCP might request agencies to include
additional costs such as equipment usage that it deems drug control
related. A senior agency official stated that it can be challenging
when ONDCP changes the methodology because the agency has to rework
its calculations. ONDCP officials responded that the agencies have
different perspectives regarding which costs are specific to drug
control. In 2010, ONDCP explained that it was difficult to fully
determine what activities are drug control related because of the
multifaceted nature of each department and the complex structure of
the federal budget. As discussed earlier, in February 2011, ONDCP
announced that it had restructured the Drug Control Budget to develop
an accurate and reliable accounting of federal resources that are
being spent on the drug control mission. ONDCP said that it plans to
continue to follow this approach. In addition, three agencies reported
that the different budget formats between ONDCP and OMB are somewhat
or very challenging. For example, ONDCP requires agencies to present
budget information by drug control function, such as prevention or
treatment, and OMB requires agencies to present budget information by
budget account. ONDCP staff responded that they are currently
considering implementing a new budget formulation system intended to
lessen the burden on agencies when formatting and submitting data to
ONDCP.
Attestation Workload. Three agencies reported that the workload of
Inspector General (IG) attestation reports could be somewhat or very
challenging. In response, ONDCP officials said that generally, IG
attestation reports are to ensure the accuracy of drug control
agencies' methodology. ONDCP officials explained that it is important
to know that there is a proper accounting of dollars spent on drug
control. They also stated that the IG attestation reports are
important because they have identified numerous deficiencies. For
example, according to ONDCP, one report alerted ONDCP to major
accounting deficiencies within one drug control agency that lacked a
mechanism to properly track and monitor reprogramming and transfer
requests. ONDCP officials stated that the problem was resolved.
Similarly, another attestation report identified weaknesses in a drug
control agency's financial reporting, and the integrity of the
agency's financial data submitted to ONDCP. In another instance, an
attestation report conducted by one IG alerted ONDCP to performance
measures that did not encompass all of the agency's significant drug
control activities. ONDCP officials said they are working with one
agency to resolve issues that were raised in one of the reports. In
addition, officials with the other agency stated that ONDCP had worked
with them toward resolving issues arising out of the other report.
Timing of Fall Certification Letters. Two agencies reported that the
timing of ONDCP's fall certification letter could be somewhat or very
challenging. A senior agency official stated that in regard to ONDCP's
funding guidance, summer review letter, and fall certification letter,
the agency has pivotal internal budget formulation time lines and the
sooner the agency receives the documents from ONDCP, the better. The
official explained that the more lead time the agency has to make its
decisions, the more helpful it is for policymakers to consider ONDCP's
feedback when the agency is finalizing its submissions. As discussed
earlier, ONDCP plans to issue funding guidance and its written reviews
earlier in future fiscal years that should help address these concerns.
[End of Enclosure III]
Enclosure IV: Agency Comments:
Executive Office Of The President:
Office Of National Drug Control Policy:
Washington, D.C. 20503:
April 27, 2011:
Eileen R. Larence:
Director, Homeland Security and Justice:
Government Accountability Office:
441 G Street, NW:
Washington, DC 20548:
Re: Office of National Drug Control Policy: Agencies View the Budget
Process as Useful for Identifying Priorities, But Challenges Exist:
Dear Ms. Larence:
The Government Accountability Office (GAO) provides a thoughtful
review of the Office of National Drug Control Policy's (ONDCP) process
for developing programs and policies in support of the President's
National Drug Control Strategy. ONDCP oversees and coordinates the
Federal drug control efforts and establishes policies and priorities
for National Drug, Control Program agencies to implement the goals and
objectives of the National Drug Control Strategy.
The above-referenced report demonstrates a comprehensive understanding
of ONDCP's important role in the budgetary process. We commend your
staff for highlighting our various interactions with the other Federal
drug control agencies and for providing feedback. The feedback will
help us build even stronger and more communicative relationships.
I appreciate the significant time and effort your staff dedicated to
this important endeavor, and thank you For presenting feedback in a
manner that enables ONDCP to improve its budgetary process.
Sincerely,
Signed by:
R. Gil Kerlikowske:
Director:
[End of Enclosure IV]
Enclosure V: GAO Contact and Staff Acknowledgments:
GAO Contact:
Eileen Larence, (202) 512-6510 or larencee@gao.gov:
Staff Acknowledgments:
In addition to the contact named above, John Mortin, Assistant
Director, and Keira Dembowski, analyst-in-charge, managed this review.
Margaret Childs, James Lawson, Kevin Nicholas, and Neetha Rao made
significant contributions to the work. Willie Commons III, Edda
Emmanuelli-Perez , and Jan Montgomery provided significant legal
support and analysis. David Alexander provided significant assistance
with design and methodology. Lara Miklozek and Linda Miller provided
significant assistance in report preparation.
[End of Enclosure V]
Footnotes:
[1] ONDCP was created and authorized through January 21, 1994, by the
National Narcotics Leadership Act of 1988 (codified at 21 U.S.C. 1501
et seq.), in title 1 of the Anti-Drug Abuse Act of 1988, Pub. L. No.
100-690, 102 Stat. 4181. The National Narcotics Leadership Act
Amendments, in subtitle B of title IX of the Violent Crime Control and
Law Enforcement Act of 1994, Pub. L. No. 103-322, 108 Stat. 1796, 1990-
96, reauthorized ONDCP through fiscal year 1997. These provisions were
repealed as of September 30, 1997. Congress approved ONDCP funding for
fiscal year 1998 in the Treasury and General Government Appropriations
Act, 1998, Pub. L. No. 105-61, 111 Stat. 1272, signed into law on
October 10, 1997. ONDCP was reauthorized by the Office of National
Drug Control Policy Reauthorization Act of 1998, Div. C. of title VII
of Pub. L. No. 105-277, 112 Stat. 2681-670, through September 30,
2003. Under the Office of National Drug Control Policy Reauthorization
Act of 2006, Pub. L. No. 109-469, 120 Stat. 3502, ONDCP was
reauthorized through fiscal year 2010. Pursuant to 21 U.S.C. § 1712,
the provisions relating to ONDCP found at Title 21, chapter 22 (21
U.S.C. §§ 1701-1711), were "repealed" effective September 30, 2010.
However, ONDCP continues to operate pursuant to the Department of
Defense and Full-Year Continuing Appropriations Act, 2011, Pub. L. No.
112-10, 125 Stat. 38, which provides continued funding.
[2] 21 U.S.C. §§ 1703(b)(2) and 1705(a)(1).
[3] 21 U.S.C. § 1703(c)(2)(A). ONDCP prepares a budget proposal it
refers to as the National Drug Control Budget Summary. For purposes of
this report, we refer to this proposal as the Drug Control Budget.
[4] 21 U.S.C. § 1703(b)(3). Also, under 21 U.S.C. § 1701(7), the term
National Drug Control agency means any agency that is responsible for
implementing any aspect of the National Drug Control Strategy,
including any agency that receives federal funds to implement any
aspect of the National Drug Control Strategy, subject to certain
exceptions regarding intelligence agencies.
[5] In 2008, the National Academy of Public Administration's report
entitled Building the Capacity to Address the Nation's Drug Problem
recommended that ONDCP develop a comprehensive budget to ensure that
policymakers and the public have a full understanding of federal drug
control expenditures. In response to this recommendation, ONDCP
undertook a review of the National Drug Control Budget to determine
which agencies and programs should constitute the National Drug
Control Budget. As a result, it decided to restructure the budget.
[6] Pub. L. No. 109-469, § 203(b), 120 Stat. 3502, 3518
(2006)(codified at 21 U.S.C. § 1708a(b)).
[7] By July 1 of each year, the Director of ONDCP is to provide budget
recommendations, including requests for specific initiatives that are
consistent with the priorities of the President under the National
Drug Control Strategy, to the heads of departments and agencies with
responsibilities under the National Drug Control Program. This annual
guidance is intended to ensure that each agency's budget submission is
adequate to implement the objectives of the National Drug Control
Strategy.
[8] Prior to the restructuring of the 2012 Drug Control Budget, Other
Related Drug Control agencies were those that had drug control
responsibilities, but their primary mission did not include drug
control nor did they have readily identifiable drug control line items
in the President's budget. For example, the primary mission of AOUSC
is to serve the federal judiciary in carrying out its mission to
provide equal justice under the law, but AOUSC was considered an Other
Related Drug Control Program agency prior to the restructuring of the
Drug Control Budget because it reported the costs of the federal
judiciary's drug-related court and probation cases.
[9] 21 U.S.C. § 1703(b)(8).
[10] 21 U.S.C. § 1703(c)(1).
[11] 21 U.S.C. § 1703(b)(2).
[12] 21 U.S.C. § 1705(a)(2)(A).
[13] ONDCP issues these circulars to the agencies, which are updated
periodically to reflect changes to the budget process. ONDCP's last
update occurred in 2007.
[14] 21 U.S.C. § 1703(b)(8).
[15] During fiscal year 2010, ONDCP issued funding guidance, as
required by law, but agencies were instructed by OMB to develop their
budgets based on fiscal year 2010 budget levels. According to ONDCP
guidance, this approach was intended to enable the next administration
to develop its fiscal year 2010 budget proposals. Given these
circumstances, we selected fiscal year 2009 to compare the funding
guidance to the National Drug Control Strategy.
[16] 21 U.S.C. § 1703(c)(1).
[17] 21 U.S.C. § 1703(c)(3)(E).
[18] DOD's fall budget was not certified because DOD did not address
ONDCP's recommended program increases. The Emergency Supplemental
Appropriations for fiscal year 1999 provided significant supplemental
funding for the national drug control budget, particularly in areas in
which ONDCP had recommended increases during the budget certification
process. For example, DOD received an additional $42 million in
counterdrug funding. When added to its regular counterdrug
appropriation of $895 million, DOD's total counterdrug funding for
fiscal year 1999 ($937 million) was nearly equal to what ONDCP had
originally recommended ($950 million).
[19] Pub. L. No. 109-469, 120 Stat. 3502 (2006).
[20] 21 U.S.C. § 1705(c)(4).
[21] The Director of ONDCP has the responsibility to make such
recommendations to the President as the Director determines are
appropriate regarding changes in the organization, management, and
budgets of National Drug Control Program agencies, and changes in the
allocation of personnel to and within those departments and agencies,
to implement the policies, goals, priorities, and objectives
established by the President for the National Drug Control Program and
the National Drug Control Strategy.
[22] Agencies finance higher priority needs by moving funds within
appropriations. Transfers occur when agencies move budgetary resources
from one account to another. Reprogrammings occur when budgetary
resources are moved from one activity to another within the same
account.
[23] 21 U.S.C. § 1704(d)(7).
[24] Attestation engagements concern examining, reviewing, or
performing agreed-upon procedures on a subject matter or an assertion
about a subject matter and reporting on the results. An assertion is
any declaration or set of declarations made by management about
whether the subject matter is based on or in conformity with the
criteria selected. Government Auditing Standards: 2007 Revision,
[hyperlink, http://www.gao.gov/products/GAO-07-731G] (July 2007).
[25] For example, whereas ONDCP may be an advocate for agencies
increasing funding for drug control programs, OMB may be an advocate
for agencies finding ways to leverage scarce resources in an era of
budgetary constraint, such as OMB's efforts in 2010 to freeze domestic
non-security spending. In an effort to demonstrate agreement among the
Executive Office of the President, in June 2010, ONDCP, OMB, and the
Domestic Policy Council (DPC) issued a joint memorandum which was
intended to help agencies make budgetary decisions by weighing
competing priorities and diminished resources (for additional details
on this memorandum, see enclosure III). The DPC coordinates the
domestic policymaking process in the White House and, according to
ONDCP officials, the DPC works with ONDCP regarding mutual drug
control interests, such as student drug testing programs.
[26] In only one instance did more than one agency characterize any
particular issue as very challenging.
[27] The CFO Act of 1990, Pub. L. No. 101-576 , 104 Stat. 2858, as
amended by the Government Management Reform Act of 1994, Pub. L. No.
103-356, 108 Stat. 3410, requires the major 24 agencies of the federal
government to prepare and submit audited financial statements.
[28] In April 2009, ONDCP convened the IWG, comprised of subject
matter experts representing various drug control agencies, to increase
the nation's focus on preventing and treating substance abuse with a
particular emphasis on informing the development of the National Drug
Control Strategy and providing input unto the budget guidance process
for demand reduction programs. ONDCP's Office of Demand Reduction
focuses on promoting drug prevention and drug treatment programs, as
well as the focus on programs for individuals in recovery from
addiction.
[29] According to ONDCP, OPTEMPO refers to the costs associated with
the operation of aircraft and ships, based upon the number of flight
hours or steaming days. Counternarcotics OPTEMPO is that portion of
the DOD OPTEMPO costs estimated to be in support of counternarcotics
activities.
[30] For fiscal year 2010, Bureau of Prisons (BOP) funds reflected in
Other Related Drug Control Program Agencies were for the consequences-
related costs of corrections and BOP funds included in the Drug
Control Budget were those funds dedicated to residential substance
abuse treatment for all eligible inmates. As a part of the fiscal year
2012 request, all of these costs were included in the Drug Control
Budget.
[31] The Domestic Policy Council (DPC) coordinates the domestic
policymaking process in the White House and, according to ONDCP
officials, the DPC works with ONDCP regarding mutual drug control
interests, such as student drug testing programs.
[32] In addition to overseeing and coordinating the nation's drug
control efforts, ONDCP is responsible for managing programs such as
the High Intensity Drug Trafficking Areas Program (HIDTA), the
National Youth Anti-Drug Media Campaign, and the Drug-Free Communities
(DFC) Support Program. Specifically, the Director of ONDCP, in
consultation with others, may designate HIDTAs and provide overall
policy guidance and oversight for the award and management of federal
resources to HIDTAs. As part of its Media Campaign, ONDCP is to help
prevent youth drug use through messages to youth and their parents and
mentors. Through DFC, ONDCP provides grants to community antidrug
coalitions to reduce substance abuse among youth.
[33] Three of the six agencies reported that the frequency of
communication and the type of staff involved in communication is not
challenging. For example, an agency official stated that the
communication between his agency and ONDCP occurs on an ad hoc basis,
but is not challenging.
[End of section]
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