DHS OIG, OIG-08-41, Independent Review of The U.S. Customs and Border Protection's Management Assertions on the 2007 Drug Control Performance Summary (2008)

DEPARTMENT OF HOMELAND SECURITY

Office of Inspector General Independent Review of The U.S. Customs and Border Protection’s Management Assertions on the 2007 Drug Control Performance Summary OIG-08-41 April 2008 Office of Inspector General U.S. Department of Homeland Security Washington, DC 20528 April 18, 2008 Preface The Department of Homeland Security (DHS) Office of Inspector General (OIG) was established by the Homeland Security Act of 2002 (Public Law 107-296) by amendment to the Inspector General Act of 1978. This is one of a series of audit, inspection, and special reports prepared as part of our oversight responsibilities to promote economy, efficiency, and effectiveness within the department. The attached letter represents the results of a review of the assertions made by management during the Performance Summary review of the DHS’ Customs and Border Protection (CBP) for the year ended September 30, 2007, for the Office of National Drug Control Policy (ONDCP). We contracted with the independent accounting firm KPMG LLP to perform the review.

CBP’s management prepared the Performance Summary in accordance with the requirements of the ONDCP Circular, Drug Control Accounting, dated May 1, 2007; however, CBP’s management did not comply with the ONDCP requirements for management’s assertions. As a result the contractors were unable to provide a report on management’s assertions. It is our hope that the information in future reports will result in effective, efficient, and economical operations. We express our appreciation to all of those who contributed to the preparation of this report.

Richard L. Skinner Inspector General u.s. Department of Homeland Security Washington, DC 20229 u.s. Customs and Border Protection January 14,2008 MEMORANDUM FOR: FROM: SUBJECT: RICHARD L. SKINNER INSPECTOR GENERAL DEPARTMENT OF HOMELAND SECURITY 11) ~ Director U-,JL­ Office of Policy and Planning Management's Assertions for U.S. Customs and Border Protection's Drug Seizure Data In compliance with the Drug Control Accounting Circular (the Circular) (May 2007), U.S. Customs and Border Protection (CBP) submits its Performance Summary Report to ONDCP. The report contains the results of CBP performance in support of the National Drug Control Strategy. CBP makes the following assertions: (1) Performance reporting system is appropriate and applied - CBP has a system to capture performance information accurately and the system was properly applied to generate the performance data. The source of the data is a combination of Enterprise Data Warehouse (EDW) and Treasury Enforcement Communications systems.

(2) Explanations for not meeting performance targets are reasonable based on based on the following wording the in guidance, "An Assertion shall be made regarding reasonableness of any explanation... for revising or eliminating performance targets." (3) Adequate performance measures exists for all significant drug control activities - CBP has established at least one acceptable performance measure for each Drug Control Decision Unit identified in reports. Each performance measure considers the intended purpose of the National Drug Control Program Activity. CBP cannot make the following assertion at this time: (1) Methodology to establish performance targets is reasonable and applied. ~~oFmtmetE1a~~~<3£Offiati\iRlkWmraffi~WMM~eMElrng. vve believe that our drug interdiction partners share this view. The performance measures focus on the amounts of cocaine, marijuana, and heroin seized at and between the ports of entry by or with the participation of CBP Officers, Border Patrol Agents, and CBP Air Interdiction Agents.

Performance targets as envisioned by the Circular, however, conflict with the CBP counter drug mission to eliminate the trafficking of drugs. While drug seizures constitute a component of the mission, seizing drugs is not the ultimate goal. In fact, as the strategy is implemented and mission effectiveness increased, the amount of seizures will actually decrease. CBP could then find itself in a situation of making progress toward a goal while its failure to achieve targets leads to the exact opposite conclusion.

Measuring success by agency seizures creates a competitive environment leading to less collaborative partnerships, team work, and sharing of information. Where partnerships do exist, the results can be mutually beneficial. For instance, CBP cocaine seizures increased, in part, because the Drug Enforcement Administration (DEA) shared intelligence from their sensitive sources. In turn, CBP fed DEA the intelligence gained from those seizures that enabled DEA to better target the major drug cartels.

CBP does believe that measuring results, when combined with discussion and assessment, is an important tool in improving operations. But performance targets can offer an incorrect assessment of agency success, particularly if they do not focus on the correct strategic factors. Setting a target gives an importance to achieving a number and implies agency resources should be expended to do so, even if this is not the case. True success is fewer seizures due to weakened drug cartels.

If you have any questions, please have a member of your staff call Ms. Terra Richardson at 202-344-2843. Report Distribution Department of Homeland Security Secretary Deputy Secretary Chief of Staff Deputy Chief of Staff General Counsel Executive Secretary Director, GAO/OIG Audit Liaison Assistant Secretary for Policy Assistant Secretary for Legislative Affairs Assistance Secretary for Public Affairs Under Secretary for Management Chief Financial Officer Office of National Drug and Control Policy Associate Director for Planning and Budget U.S. Customs and Border Protection Commissioner Chief Financial Officer CBP Audit Liaison Office of Management and Budget Chief, Homeland Security Branch DHS OIG Budget Examiner Congress Congressional Oversight and Appropriations Committees, as appropriate Additional Information and Copies To obtain additional copies of this report, call the Office of Inspector General (OIG) at (202) 254-4199, fax your request to (202) 254-4305, or visit the OIG web site at www.dhs.gov/oig. OIG Hotline To report alleged fraud, waste, abuse or mismanagement, or any other kind of criminal or noncriminal misconduct relative to department programs or operations: • Call our Hotline at 1-800-323-8603; • Fax the complaint directly to us at (202) 254-4292; • Email us at [email protected]; or • Write to us at: DHS Office of Inspector General/MAIL STOP 2600, Attention: Office of Investigations - Hotline, 245 Murray Drive, SW, Building 410, Washington, DC 20528. The OIG seeks to protect the identity of each writer and caller.