DHS OIG, OIG-09-28, ndependent Review of the U.S. Customs and Border Protection's Reporting of FY 2008 Drug Control Obligations (2009)

Department of Homeland Security Office of Inspector General Independent Review of the U.S. Customs and Border Protection's Reporting of FY 2008 Drug Control Obligations OIG-09-28 February 2009 Office of Inspector General U.S. Department of Homeland Security Washington, DC 20528 February 12, 2009 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. This report presents the results of the review of the Table of FY 2008 Drug Control Obligations and related disclosures of the U.S. Customs and Border Protection for the fiscal year ended September 30, 2008, for the Office of National Drug Control Policy. We contracted with the independent public accounting firm KPMG LLP to perform the review.

U.S. Customs and Border Protection’s management prepared the Table of FY 2008 Drug Control Obligations and related disclosures to comply with the requirements of the Office of National Drug Control Policy Circular, Drug Control Accounting, dated May 1, 2007. KPMG LLP is responsible for the attached independent accountants’ report dated February 2, 2009, and the conclusions expressed in the report. U.S. Customs and Border Protection’s management reported that it cannot assert that “the data presented are associated with obligations against a financial plan that, if revised during the fiscal year, properly reflects those changes, including [Office of National Drug Control Policy’s] approval of reprogrammings or transfers affecting drug-related resources in excess of $1 million.” As a result, KPMG LLP was unable to complete its review and report on management’s assertions on the Table of FY 2008 Drug Control Obligations pursuant to the requirements of the Office of National Drug Control Policy Circular. We do not express an opinion on the Table of FY 2008 Drug Control Obligations and related disclosures.

We trust the information in this report will continue to 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 KPMG LLP 2001 M Street, NW Washington, DC 20036 Independent Accountants’ Report Inspector General U.S. Department of Homeland Security We have reviewed the accompanying Table of FY 2008 Drug Control Obligations and related disclosures of the U.S. Department of Homeland Security’s (DHS) Customs and Border Protection (CBP) for the year ended September 30, 2008. We were also engaged to review the accompanying management’s assertions for the year ended September 30, 2008.

CBP’s management is responsible to prepare the Table of FY 2008 Drug Control Obligations and related disclosures and the assertions to comply with the requirements of the Office of National Drug Control Policy (ONDCP) Circular: Drug Control Accounting dated May 1, 2007 (ONDCP Circular). The ONDCP Circular requires management to make certain assertions related to the accuracy and completeness of the Table of FY 2008 Drug Control Obligations and related disclosures. Management reported that they can not assert that the “the data presented are associated with obligations against a financial plan that, if revised during the fiscal year, properly reflects those changes, including ONDCP’s approval of reprogrammings or transfers affecting drug-related resources in excess of $1 million,” as required by the ONDCP Circular. In accordance with applicable professional standards, without a positive assertion provided by management we are unable to complete our review of management’s assertions on the Table of FY 2008 Drug Control Obligations and related disclosures.

Accordingly, our review procedures are limited to the subject matter of the Table of FY 2008 Drug Control Obligations and related disclosures only, and we are unable to report on management’s assertions pursuant to the requirements of the ONDCP Circular. Our review of the subject matter of the Table of FY 2008 Drug Control Obligations and related disclosures was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants, and applicable standards contained in Government Auditing Standards, issued by the Comptroller General of the United States. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on the Table of FY 2008 Drug Control Obligations and related disclosures. Accordingly, we do not express such an opinion.

Based on our review, nothing came to our attention that caused us to believe that the subject matter of the Table of FY 2008 Drug Control Obligations and related disclosures for the year ended September 30, 2008 is not presented, in all material respects, in conformity with ONDCP’s Circular. KPMG LLP, a U.S. limited liability partnership, is the U.S. member firm of KPMG International, a Swiss cooperative. This report is intended solely for the information and use of the management of DHS and CBP, the Inspector General, the ONDCP, and the U.S. Congress, and is not intended to be and should not be used by anyone other than these specified parties. February 2, 2009 Report Distribution Department of Homeland Security Secretary Deputy Secretary Chief of Staff Deputy Chief of Staff General Counsel Executive Secretary Director, GAO/OIG Liaison Office Assistant Secretary for Policy Assistant Secretary for Public Affairs Assistant Secretary for Legislative Affairs Under Secretary, Management Chief Financial Officer Deputy Chief Financial Officer Acting Director Office of Financial Management Chief Information Officer Chief Security Officer Chief Privacy Officer Office of National Drug and Control Policy Associate Director for Planning and Budget Customs and Border Protection Commissioner, Customs and Border Protection Chief Financial Officer Chief Information Officer Office of Management and Budget Chief, Homeland Security Branch DHS OIG Program Examiner Congress Congressional Oversight and Appropriations Committees, as appropriate ADDITIONAL INFORMATION AND COPIES To obtain additional copies of this report, please 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.

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