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Report | Jan. 31, 2023

Independent Auditor’s Report on the FY 2022 DoD Budget Formulation Compliance Reports (DODIG-2023-049)

Audit

The Office of National Drug Control Policy (ONDCP) Circular, “National Drug Control Program Agency Compliance Reviews,” September 9, 2021, requires a budget formulation compliance report be provided to the Director of ONDCP by February 1 of each year. The Circular provides the policies and procedures that National Drug Control Program agencies must use to prepare the budget formulation compliance reports. The agency’s Chief Financial Officer or other accountable senior executive is responsible for preparing the budget formulation compliance reports. Each report includes sections on summer budget formulation information and assertions relating to the budget data.

The ONDCP National Drug Control Budget, “FY 2023 Funding Highlights,” March 2022, identified that the DoD has three agencies that have Federal drug control spending: the Defense Health Program (DHP), Deputy Assistant Secretary of Defense (Counternarcotics and Stabilization Policy) (DASD[CNSP]) Drug Interdiction and Counterdrug Activities, and the Defense Security Cooperation Agency (DSCA).

The Defense Health Agency, on behalf of the DHP, provided the DoD OIG the DHP budget formulation compliance report, dated October 7, 2022, that we reviewed to determine compliance with the Circular. The report contained budget data and addressed the required assertion that funding levels represented bureau level requests. The report did not address the assertion related to the timeliness of the summer budget submission, as the DHP did not submit a summer budget. The DHP annual counterdrug budget submission is aligned with the DoD’s PPBE timeline.

The DASD(CNSP) provided the DoD OIG the Drug Interdiction and Counterdrug Activities budget formulation compliance report, dated September 29, 2022, that we reviewed to determine compliance with the Circular. The report contained budget data and addressed the required assertion that funding levels represented bureau level requests. The report did not address the assertion related to the timeliness of the summer budget submission, as the DASD(CNSP) did not submit a summer budget. The DASD(CNSP) annual counterdrug budget submission is aligned with the DoD’s PPBE timeline.

The DSCA provided the DoD OIG the DSCA budget formulation compliance report, dated October 19, 2022, that we reviewed to determine compliance with the Circular. The report contained budget data and addressed the required assertion that funding levels represented bureau-level requests. The report did not address the assertion related to the timeliness of the summer budget submission, as the DSCA did not submit a summer budget. The DSCA annual counterdrug budget submission is aligned with the DoD’s PPBE timeline.

Based on our review, except for the matters described above, we are not aware of any material modifications that should be made to the DoD budget formulation compliance reports for them to be in accordance with the Circular.