Report | Jan. 31, 2019

Independent Auditor’s Report on the FY 2018 DoD Detailed Accounting Report for the Funds Obligated for National Drug Control Program Activities DODIG-2019-049

Public Law 105-277, title VII, “Office of National Drug Control Policy Reauthorization Act of 1998” (the Act), October 21, 1998, requires National Drug Control Program agencies to submit detailed accounting each year to the Director, Office of National Drug Control Policy (ONDCP). The detailed accounting reports all funds expended by the agencies for National Drug Control Program activities during the previous fiscal year. The Act also requires each agency Inspector General to authenticate the detailed accounting before it is submitted to the ONDCP Director (section 1704[d], title 21, United States Code).

The ONDCP Circular, “Budget Formulation,” May 8, 2018, (the Budget Formulation Circular) identifies the DoD as a National Drug Control Program agency with three entities or bureaus submitting National Drug Control Budgets for four DoD accounts or appropriations. The three DoD bureaus are the Office of the Assistant Secretary of Defense (Health Affairs); the Office of the Deputy Assistant Secretary of Defense for Counternarcotics and Global Threats (DASD [CN&GT]); and the Defense Security Cooperation Agency (DSCA). The Budget Formulation Circular, Attachment B, identifies the Office of the Assistant Secretary of Defense (Health Affairs) and the DSCA as multi-mission bureaus. The ONDCP National Drug Control Budget, “FY 2018 Funding Highlights,” May 2017, identified that the DoD requested $1.2 billion in FY 2018 for DoD drug control spending. The following table shows a summary of the DoD’s National Drug Control Program bureaus and their respective appropriations.

The ONDCP Circular, “Accounting of Drug Control Funding and Performance Summary,” May 8, 2018, (the Accounting Circular) provides the policies and procedures the DoD must use to prepare the detailed accounting and authentication of all funds expended on National Drug Control Program activities. The Accounting Circular specifies, for agencies with bureaus like the DoD, that the detailed accounting submission shall consist of reports from the agency’s bureaus.

The Accounting Circular also states that for multi-mission bureaus, the Office of the Assistant Secretary of Defense (Health Affairs) and DSCA, drug control obligations shall be calculated pursuant to an approved drug methodology. Each detailed accounting report must contain a table of prior-year drug control obligations listed by drug control functional area and must include assertions relating to the obligation data presented in the table. The assertions are:

  • use of actual obligations from accounting systems of record,

  • reasonable and accurate drug methodology to calculate obligations of prior year budgetary resources by functional area,

  • disclosure of actual drug methodology used,

  • association with a financial plan, and

  • compliance with Fund Control Notices issued by the ONDCP Director.

We performed this review-level attestation in accordance with attestation standards established by the American Institute of Certified Public Accountants and in compliance with 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 detailed accounting to ensure compliance with the Circulars. A review‑level attestation is substantially less in scope than an examination done to express an opinion on the subject matter. Accordingly, we do not express an opinion. We believe that our review provided a reasonable basis for our conclusions.

This report is a result of Project No. D2019-D000FT-0037.000.