> ![](media/image1.wmf)**UNITED STATES DEPARTMENT OF EDUCATION**

OFFICE OF INSPECTOR GENERAL

February 1, 2008

**[MEMORANDUM]{.underline}**

**To:** Thomas P. Skelly

Director, Budget Service

Office of Planning, Evaluation and Policy Development

**From:** Keith West /s/

Assistant Inspector General for Audit Services

**Subject:** Office of Inspector General's Independent Report on the
*U.S. Department of Education's Detailed Accounting of Fiscal Year 2007
Drug Control Funds*, dated January 25, 2008.

Attached is our authentication of management's assertions contained in
the *U.S. Department of Education's Detailed Accounting of Fiscal Year
2007 Drug Control Funds*, dated January 25, 2008, as required by section
705(d) of the Office of National Drug Control Policy (ONDCP)
Reauthorization Act of 1998 (21 U.S.C. § 1704(d)).

Our authentication was conducted in accordance with the guidelines
stated in the Office of National Drug Control Policy Circular: *Drug
Control Accounting*, dated May 1, 2007.

## If you have any questions or wish to discuss the contents of this authentication, please contact Michele Weaver-Dugan, Director, Operations Internal Audit Team, at (202) 245-6941. 

### Attachment 

> ![](media/image1.wmf)**UNITED STATES DEPARTMENT OF EDUCATION**

OFFICE OF INSPECTOR GENERAL

February 1, 2008

[*Office of Inspector General's Independent Report on the* U.S.
Department of Education's Detailed Accounting of Fiscal Year 2007 Drug
Control Funds, *dated January 25, 2008.*]{.underline}

We have reviewed management's assertions contained in the accompanying
Accounting, titled *Department of Education Detailed Accounting of
Fiscal Year 2007 Drug Control Funds,* dated January 25, 2008
(Accounting). The U.S. Department of Education's management is
responsible for the Accounting and the assertions contained therein.

Our review was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. A
review is substantially less in scope than an examination, the objective
of which is the expression of an opinion on management's assertions.
Accordingly, we do not express such an opinion.

We performed review procedures on the "Table of Prior Year Drug Control
Obligations," "Disclosures," and "Assertions" contained in the
accompanying Accounting. We did not review the "Program Descriptions"
contained in the accompanying Accounting. In general, our review
procedures were limited to inquiries and analytical procedures
appropriate for our review engagement.

Based on our review, nothing came to our attention that caused us to
believe that management's assertions, contained in the accompanying
Accounting, are not fairly stated in all material respects, based upon
the Office of National Drug Control Policy Circular: *Drug Control
Accounting*, dated May 1, 2007.

Keith West /s/

Assistant Inspector General for Audit Services

DEPARTMENT OF EDUCATION

![](media/image2.png){width="6.499305555555556in"
height="2.1791666666666667in"}

DETAILED ACCOUNTING OF

FISCAL YEAR 2007 DRUG CONTROL FUNDS

IN SUPPORT OF THE

*NATIONAL DRUG CONTROL STRATEGY*

AS REQUIRED BY SECTION 705(d) OF THE OFFICE OF NATIONAL DRUG CONTROL
POLICY REAUTHORIZATION ACT OF 1998

(21 U.S.C. 1704(d))

JANUARY 25, 2008

DEPARTMENT OF EDUCATION

DETAILED ACCOUNTING OF FISCAL YEAR 2007 DRUG CONTROL FUNDS

[TABLE OF CONTENTS]{.underline}

Transmittal Letter 1

Table of Prior Year Drug Control Obligations 2

Program Descriptions 2

State Grants 2

National Programs 2

Disclosures 3

Drug Methodology 3

Obligations by Drug Control Function 3

Obligations by Budget Decision Unit 3

Methodology Modifications 4

Material Weaknesses or Other Findings 4

Reprogrammings or Transfers 4

Other Disclosures 4

Assertions 4

Obligations by Decision Unit 4

Drug Methodology 5

Data 5

Other Estimation Methods 5

Financial Systems 5

Application of Drug Methodology 5

Reprogrammings or Transfers 5

Fund Control Notices 5

Mr. John P. Higgins, Jr.

Inspector General

U.S. Department of Education

400 Maryland Avenue, S.W.

Washington, DC 20202-1510

Dear Mr. Higgins:

As required by section 705(d) of the Office of National Drug Control
Policy (ONDCP) Reauthorization Act of 1998 (21 U.S.C. 1704(d)), enclosed
please find a detailed accounting of all fiscal year 2007 Department of
Education drug control funds for your authentication, in accordance with
the guidelines in ONDCP Circular *Drug Control Accounting*, dated
May 1, 2007.

Consistent with the instructions in the ONDCP Circular, please provide
your authentication to me in writing, and I will transmit it to ONDCP
along with the enclosed accounting of funds. As you know, ONDCP requests
these documents by February 1, 2008, if possible. Please do not hesitate
to contact me if you have any questions about the enclosed information.

Sincerely,

> Thomas P. Skelly
>
> Director, Budget Service

TABLE OF PRIOR YEAR DRUG CONTROL OBLIGATIONS

> Fiscal Year 2007 Obligations
>
> [(in \$ millions)]{.underline}

# Drug Resources by Function

Prevention \$[492.867]{.underline}

Total 492.867

# Drug Resources by Decision Unit

Safe and Drug-Free Schools and Communities Program

SDFSC State Grants 344.345 ^     ^

SDFSC National Programs [148.522]{.underline}

Total 492.867

\_\_\_\_\_\_\_\_\_\_\_\_

NOTE: Detail may not add to total due to rounding.

## PROGRAM DESCRIPTIONS

The programs funded under the [Safe and Drug-Free Schools and
Communities]{.underline} (SDFSC) Act comprise the only Department of
Education programs included in the national drug control budget. The
SDFSC program provides funding for research-based approaches to drug and
violence prevention that support the *National Drug Control Strategy*.
Safe and Drug-Free Schools and Communities is the Federal Government's
largest drug prevention program and the only Federal program that
provides direct support to schools for efforts designed to prevent
school violence. Under the SDFSC Act, funds are appropriated for [State
Grants]{.underline} and for [National Programs]{.underline}.

### SDFSC State Grants

SDFSC State Grant funds are allocated by formula to States and
Territories, half on the basis of school-aged population and half on the
basis of each State's share, for the prior year, of Federal funds for
"concentration grants to local educational agencies (LEAs) for improving
the academic achievement of disadvantaged students" under section 1124A
of Title I of the Elementary and Secondary Education Act (ESEA).
Generally, Governors receive 20 percent, and State educational agencies
(SEAs) 80 percent, of each State\'s allocation. SEAs are required to
subgrant at least 93 percent of their allocations to LEAs; these
subgrants are based 60 percent on LEA shares of prior-year funding under
Part A of title I of the ESEA and 40 percent on enrollment. LEAs may use
their SDFSC State Grant funds for a wide variety of activities to
prevent or reduce violence and delinquency and the use, possession, and
distribution of illegal drugs, and thereby foster a safe and drug-free
learning environment that supports academic achievement. Governors may
use their funds to award competitive grants and contracts to LEAs,
community-based organizations, and other public and private
organizations for activities to provide safe, orderly, and drug-free
schools and communities through programs and activities that complement
and support activities of LEAs.

### SDFSC National Programs

SDFSC National Programs authorizes funding for several programs and
activities to help promote safe and drug-free learning environments for
students and address the needs of troubled or at-risk youth, including
[Federal Activities]{.underline} (a broad discretionary authority that
permits the Secretary to carry out a wide variety of activities designed
to prevent the illegal use of drugs and violence among, and promote
safety and discipline for, students); [Evaluation]{.underline} and data
collection activities; and an [Alcohol Abuse Reduction
Program]{.underline} to assist school districts in implementing
innovative and effective programs to reduce alcohol abuse in secondary
schools. SDFSC National Programs also authorizes: (1) Mentoring
Programs, and (2) Project SERV (School Emergency Response to Violence,
which is a crisis response program that provides education-related
services to LEAs in which the learning environment has been disrupted
due to a violent or traumatic crisis), both of which made obligations of
funds in fiscal year 2007. However, as explained in the discussion of
drug budget methodology below, funds for these two components of SDFSC
National Programs are not included in the ONDCP drug budget and,
therefore, they are not included in this obligations report.

## DISCLOSURES

# **Drug Methodology**

This accounting submission includes 100 percent of all fiscal year 2007
obligations of funds under the Safe and Drug-Free Schools and
Communities (SDFSC) Act, with the exception of those SDFSC National
Programs that have no clear drug control nexus. Accordingly, the amounts
in the enclosed table of prior-year drug control obligations include
100 percent of funding for the SDFSC State Grants program, the SDFSC
Alcohol Abuse Reduction program, and all other SDFSC National Programs,
with the exclusion of obligations of funds for (1) SDFSC Mentoring
Programs, (2) Project SERV (School Emergency Response to Violence), and
(3) School Emergency Preparedness Initiatives.

Note: In 2007, Congress appropriated \$8.594 million under SDFSC
National Programs exclusively for grants to LEAs to address youth
violence and related issues in persistently dangerous schools.
Consistent with the above methodology, those funds are included in this
accounting submission because they are supporting drug prevention as
well as school safety activities.

# Obligations by Drug Control Function

All obligations of funds for the SDFSC program shown in the table on
page 2 of this report fall under the ONDCP drug control function
category of prevention --- the same functional category under which the
budgetary resources for the SDFSC program are displayed for the
Department of Education in the annual *National Drug Control Budget
Summary* issued by ONDCP that accompanies the President's budget and in
the *National Drug Control Strategy*.

# Obligations by Budget Decision Unit

All obligations of drug control funds in the table on page 2 of this
report are displayed using the SDFSC program as the budget decision unit
--- the same decision unit under which the budgetary resources for the
Department of Education are displayed by ONDCP in the February 2007
*National Drug Control Budget Summary* that accompanied the 2008
President's budget in support of the *National Drug Control Strategy*.

# **Methodology Modifications**

The Department does not have any drug control budget methodological
modifications to disclose.

# **Material Weaknesses or Other Findings**

The Department does not have any material weaknesses to disclose that
affect the presentation of fiscal year 2007 drug-related obligations in
this report. All other known weaknesses that affect the presentation of
drug-related obligations in this report are explained in the drug
methodology description above, and in the disclosures below.

# **Reprogrammings or Transfers**

In 2007 the Department twice reprogrammed a small amount of funds within
the SDFSC National Programs. These reprogrammings increased the amount
of funding for School Emergency Preparedness Initiatives by a total of
\$2.4 million and, in doing so, reduced the amount of Education's 2007
drug-related obligations by that same amount. There were no transfers
that changed the amount of drug-related budgetary resources in the
Department in fiscal year 2007.

# **Other Disclosures**

The Department acknowledges the following limitations in the methodology
described above for deriving the obligations of fiscal year 2007 drug
control funds attributable to the SDFSC program:

-   Although the budgetary resources in this report include 100 percent
    of obligations for SDFSC State Grants, Federal Activities, and
    Evaluation (exclusive of Project SERV and School Emergency
    Preparedness Initiatives), not all obligations of funds for these
    SDFSC programs support drug prevention activities --- some of these
    funds support violence prevention and school safety activities that
    have no drug control-related nexus.

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-   Approximately \$7.5 million of the SDFSC National Programs funds
    included in the resource summary of this report (1.5 percent of
    total fiscal year 2007 SDFSC reported drug control obligations)
    supported prevention projects for students enrolled in institutions
    of higher education; for college students served by such programs
    who are 21 years of age or older, alcohol is a legal drug and the
    alcohol prevention component of the program falls outside the scope
    of the *National Drug Control Strategy*.

## ASSERTIONS

### Obligations by Decision Unit

The fiscal year 2007 obligations of drug control funds shown in this
report for the SDFSC drug budget decision unit are the actual 2007
obligations of funds from the Department's accounting system of record
for the SDFSC program.

# **Drug Methodology**

The methodology used to calculate the fiscal year 2007 obligations of
drug prevention funds presented in this report is reasonable and
accurate, because: (1) the methodology captures all of the obligations
of funds under the SDFSC program that reasonably have a drug
control-related nexus, and (2) these obligations of funds correspond
directly to the display of resources for the SDFSC program in the
Department's budget justifications to Congress that accompany the
President's budget.

[Data]{.underline}

No workload or other statistical information was applied in the
methodology used to generate the fiscal year 2007 obligations of drug
control funds presented in the table on page 2 of this report.

# Other Estimation Methods

Where assumptions based on professional judgment were used as part of
the drug methodology, the association between these assumptions and the
drug control obligations being estimated is thoroughly explained and
documented in the drug methodology disclosure on page 3 and in the other
disclosures on page 4 of this accounting report.

# Financial Systems

Financial systems supporting the drug methodology yield data that fairly
present, in all material respects, aggregate obligations from which the
drug-related obligation estimates are derived.

# **Application of Drug Methodology**

The methodology disclosed in the narrative of this report was the actual
methodology used to generate the fiscal year 2007 obligations of drug
control funds presented in the table on page 2.

# **Reprogrammings or Transfers**

The data presented in this report properly reflect changes in drug
control budget resources resulting from reprogrammings of fiscal year
2007 SDFSC funds. In 2007 the Department twice reprogrammed a small
amount of funds within the SDFSC National Programs: once on August 31,
and again on September 25. The August 31 reprogramming
exceeded \$1 million and was approved in advance by ONDCP, as required
by law. The September 25 reprogramming was less than \$1 million and was
not subject to ONDCP approval.

### Fund Control Notices

The Director of ONDCP has never issued to the Department of Education
any Fund Control Notices under 21 U.S.C. 1703(f) or the applicable ONDCP
Circular, *Budget Execution*. Therefore, the required assertion that the
data presented in this report accurately reflect obligations of drug
control funds that comply with all such Fund Control Notices is not
applicable.

February 1, 2008

John P. Walters

Director

Office of National Drug Control Policy

Executive Office of the President

Washington, D.C. 20500

Dear Mr. Walters:

In accordance with section 705(d) of the Office of National Drug Control
Policy (ONDCP) Reauthorization Act of 1998 (21 U.S.C. 1704(d)), enclosed
please find a detailed accounting of all fiscal year 2007 Department of
Education drug control funds, along with the Department of Education
Assistant Inspector General's authentication of this accounting,
consistent with the instructions in ONDCP Circular *Drug Control
Accounting*, dated May 1, 2007.

Please do not hesitate to contact me if you have any questions about
this information.

Sincerely,

> Thomas P. Skelly
>
> Director, Budget Service

Enclosure \# 1: *Department of Education Detailed Accounting of Fiscal
Year 2007 Drug Control Funds*, dated January 25, 2008

Enclosure \# 2: Authentication letter from Keith West, Assistant
Inspector General for Audit Services, dated February 1, 2008

cc: Keith West