DHS OIG, OIG-22-19, Review of U.S. Customs and Border Protection's Fiscal Year 2021 Drug Control Budget Formulation Compliance Report (2022)

Review of U.S. Customs and Border Protection's Fiscal Year 2021 Drug Control Budget Formulation Compliance Report (cid:1)(cid:11)(cid:9)(cid:6)(cid:8)(cid:3)(cid:10)(cid:5)(cid:16) (cid:2)(cid:6)(cid:4)(cid:14)(cid:12)(cid:7)(cid:13)(cid:15)(cid:16) January 27, 2022 OIG-22-19 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Washington, DC 20528 / www.oig.dhs.gov January 27, 2022 MEMORANDUM FOR: The Honorable Chris Magnus Commissioner U.S. Customs and Border Protection FROM: SUBJECT: Joseph V. Cuffari, Ph.D. Inspector General JOSEPH V CUFFARI Digitally signed by JOSEPH V CUFFARI Date: 2022.01.26 13:05:55 -05'00' Review of U.S. Customs and Border Protection’s Fiscal Year 2021 Drug Control Budget Formulation Compliance Report Attached for your information is our final report, Review of U.S. Customs and Border Protection’s Fiscal Year 2021 Drug Control Budget Formulation Compliance Report. U.S. Customs and Border Protection’s (CBP) management prepared the Budget Formulation Compliance Report and the related assertions to comply with the requirements of the Office of National Drug Control Policy’s Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. We contracted with the independent public accounting firm Williams, Adley & Company – DC, LLP (Williams Adley) to review CBP’s Drug Control Budget Formulation Compliance Report. Williams Adley is responsible for the attached Independent Accountant’s Report, dated January 19, 2022, and the conclusions expressed in it.

Williams Adley’s report contains no recommendations. Consistent with our responsibility under the Inspector General Act of 1978, as amended, we will provide copies of our report to congressional committees with oversight and appropriation responsibility over the Department of Homeland Security. We will post the report on our website for public dissemination. Please call me with any questions, or your staff may contact Bruce Miller, Deputy Inspector General for Audits, or Maureen Duddy, Assistant Inspector General for Audits, at (202) 981-6000. cc: Chief Accountability Officer, CBP Attachment www.oig.dhs.gov DHS OIG HIGHLIGHTS Review of U.S. Customs and Border Protection’s Fiscal Year 2021 Drug Control Budget Formulation Compliance Report January 27, 2022 What We Found Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Report on the U.S. Customs and Border Protection’s (CBP) FY 2021 Drug Control Budget Formulation Compliance Report.

CBP management prepared the Budget Formulation Compliance Report and the related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that CBP’s FY 2021 Budget Formulation Compliance Report and related assertions are not presented in conformity with the criteria in the ONDCP Circular. Williams Adley did not make any recommendations as a result of its review. Why We Did This Review The Office of National Drug Control Policy (ONDCP) Circular, National Drug Control Program Agency Compliance Reviews, requires National Drug Control Program agencies to submit to the ONDCP Director by February 1 of each year a detailed accounting of all funds expended for National Drug Control Program activities during the previous fiscal year.

At least every 3 years, the Office of Inspector General is required to review the report and provide a conclusion about the reliability of each assertion made in the report. For Further Information: Contact our Office of Public Affairs at (202) 981-6000, or email us at [email protected] www.oig.dhs.gov OIG-22-19 Independent Accountant’s Report Inspector General United States Department of Homeland Security We have reviewed the accompanying Budget Formulation Compliance Report (BFCR) of the U.S. Department of Homeland Security’s (DHS) U.S. Customs and Border Protection (CBP) for the year ended September 30, 2021. CBP management is responsible for the preparation of the BFCR in conformity with the requirements of the Office of National Drug Control Policy Circular: National Drug Control Program Agency Compliance Reviews, dated September 9, 2021 (the Circular). Our responsibility is to express a conclusion about the BFCR based on our review.

Our review was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants and generally accepted government auditing standards. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to the BFCR or related assertions in order for them to be in accordance with the Circular. A review is substantially less in scope than an examination, the objective of which is to obtain reasonable assurance about whether CBP’s BFCR and related assertions are in accordance with the Circular, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion.

We believe that our review provides a reasonable basis for our conclusion. Among other requirements, the Circular requires CBP to submit their summer drug budget directly to ONDCP at the same time their budget requests are provided to their agency heads. Based on our review, we determined CBP did not submit its summer drug budget to ONDCP directly. Rather, CBP submitted its summer drug budget to the DHS Budget Division Formulation Team for subsequent transmission to ONDCP.

Although the process utilized does not align to the Circular requirements, because CBP’s assertion is accurate, our conclusion is not modified. Based on our review, we are not aware of any material modifications that should be made to the BFCR or related assertions for the year ended September 30, 2021, for them to be in conformity with the requirements set forth in the Circular. This report is intended solely for the information and use of DHS Office of Inspector General, CBP, and the Office of National Drug Control Policy, and is not intended to be, and should not be, used by anyone other than the specified parties. Washington, D.C. January 19, 2022 WILLIAMS, ADLEY & COMPANY-DC, LLP Certified Public Accountants/ Management Consultants 1030 15th Street, NW, Suite 350 West • Washington, DC 20005 • (202) 371-1397 • Fax: (202) 371-9161 www.williamsadley.com 1300 Pennsylvania Avenue NW Washington, DC 20229 January 19, 2022 Regina M. LaBelle Acting Director Office of National Drug Control Policy 750 17th Street, NW Washington, DC 20503 Dear Ms. LaBelle: Enclosed is the CBP FY 2021 Budget Formulation Compliance Report (BFCR) on National Drug Control Funding.

In FY 2021, CBP reported direct obligations of approximately $3,084.7 million. If you have any questions or would like additional information, please contact me at (202) 325-4054. Sincerely, Jeffrey Caine Chief Financial Officer U.S. Customs and Border Protection Department of Homeland Security U.S. DEPARTMENT OF HOMELAND SECURITY U.S. CUSTOMS AND BORDER PROTECTION Budget Formulation Compliance Report for Fiscal Year 2021 Drug Control Funds BUDGET FORMULATION COMPLIANCE REPORT (BFCR) A. Summer Budget Formulation Information (1) Summer Drug Budget Transmittal CBP’s Fiscal Year (FY) 2023 Summer Drug Budget Transmittal was provided to the Department of Homeland Security (DHS) Budget Office on July 14, 2021, for further transmission by DHS to ONDCP on July 16, 2021. (2) Summary Table of Fiscal Year 2021 Summer Drug Control Obligations Drug Resources by Function Intelligence Interdiction Budget Authority (in Millions) FY 2021 Enacted FY 2022 President s Budget ’ FY 2023 Summer Budget $494.051 $502.052 $439.095 $2,546.257 $2,581.850 $2,655.152 Total Drug Resources by Function $3,040.308 $3,083.902 $3,094.247 Drug Resources by Decision Unit Operations and Support $2,924.347 $3,017.534 $3,050.802 Border Security Operations $673.164 $717.779 $927.599 Trade and Travel Operations $1,503.692 $1,546.484 $1,369.932 Integrated Operations Mission Support $690.471 $696.213 $696.213 $57.020 $57.058 $57.058 Procurement, Construction, and Improvements $115.961 $66.368 $43.445 Border Security Operations Trade and Travel Operations Integrated Operations $20.700 $8.147 $9.864 --- $24.640 --- $95.261 $33.581 $33.581 Total Drug Resources by Decision Unit $3,040.308 $3,083.902 $3,094.247 Drug Resources Personnel Summary Total FTEs (direct only) 10,782 11,424 11,738 Drug Resources as a Percent of Budget Total Agency Budget (in Billions) Drug Resources Percentage $16.2 18.7% $16.3 $16.3 18.9% 18.9% B. Assertions (1) Timeliness of Summer Budget Submission CBP asserts that the FY 2023 Summer Drug Budget submitted to ONDCP was provided to the Department of Homeland Security (DHS) Budget Office, who then provided it to ONDCP on the same date as identified in the section above.

(2) Funding Levels Represent Bureau-Level Request CBP asserts that the funding request in the FY 2023 Summer Drug Budget submission provided to ONDCP by the DHS Budge Office represents the funding levels in the budget submission made by CBP to DHS, without alteration or adjustment by any official at DHS.

OFFICE OF INSPECTOR GENERAL

Department of Homeland Security Appendix A Report Distribution Department of Homeland Security Secretary Deputy Secretary Chief of Staff Deputy Chiefs of Staff General Counsel Executive Secretary Director, GAO/OIG Liaison Office Under Secretary, Office of Strategy, Policy, and Plans Assistant Secretary for Public Affairs Assistant Secretary for Office of Legislative Affairs U.S. Customs and Border Protection Commissioner Chief Financial Officer Audit Liaison Office of Management and Budget Chief, Homeland Security Branch DHS OIG Budget Examiner Congress Congressional Oversight and Appropriations Committees Office of National Drug Control Policy Associate Director for Management and Administration www.oig.dhs.gov OIG-22-19 Additional Information and Copies To view this and any of our other reports, please visit our website at: www.oig.dhs.gov. For further information or questions, please contact Office of Inspector General Public Affairs at: [email protected]. Follow us on Twitter at: @dhsoig. OIG Hotline To report fraud, waste, or abuse, visit our website at www.oig.dhs.gov and click on the red "Hotline" tab.

If you cannot access our website, call our hotline at (800) 323-8603, fax our hotline at (202) 254-4297, or write to us at: Department of Homeland Security Office of Inspector General, Mail Stop 0305 Attention: Hotline 245 Murray Drive, SW Washington, DC 20528-0305