PROTECTING THE PUBLIC:

Bureau of Alcohol, Tobacco and Firearms

Could Improve its National Instant Criminal

Background Check System Program

OIG-02-004 November 1, 2001

Office of Inspector General

*******

The Department of the Treasury
Contents

ATF Could Improve its NICS Program Page 1

Audit Report....................................................................................................2

Results in Brief...............................................................................................2

Background ...................................................................................................4

Findings and Recommendations .......................................................................6

ATF Needs to Better Respond to NICS Impact on Field Divisions .....................6

Recommendations....................................................................................12

ATF Could Improve the Referral Process to the Field Divisions.......................14

Recommendations....................................................................................18

ATF Needs to Upgrade N-Force Querying Capabilities...................................20

Recommendation .....................................................................................21

Appendices

Appendix 1: Objectives, Scope, and Methodology .......................................23

Appendix 2: Management Response...........................................................25

Appendix 3: Major Contributors To This Report ...........................................38

Appendix 4: Report Distribution.................................................................39

Abbreviations

ANR ATF’s NICS Referral System

ATF Bureau of Alcohol, Tobacco and Firearms

Brady Act Brady Handgun Violence Prevention Act

Brady Branch ATF’s Brady Operations Branch

FBI Federal Bureau of Investigation

FY Fiscal Year

NICS National Instant Criminal Background Check System

OIG Office of Inspector General

OMB Office of Management and Budget

U.S. United States
OIG Audit

Report

The Department of the Treasury

Office of Inspector General

ATF Could Improve its NICS Program Page 2

November 1, 2001

Bradley A. Buckles

Director

Bureau of Alcohol, Tobacco and Firearms

The Brady Handgun Violence Prevention Act (Brady Act)

established the National Instant Criminal Background Check System

(NICS). As part of the NICS program, the Bureau of Alcohol,

Tobacco and Firearms (ATF) is responsible for recovering firearms

from individuals prohibited from owning them as determined by

background checks conducted under NICS. Prohibited individuals

include those who have been convicted in any court of a

misdemeanor crime of domestic violence, are fugitives from justice,

or were dishonorably discharged from the Armed Forces.

The overall objective of this review was to determine what efforts

ATF has made to enforce the Brady Act. We conducted this audit

because Congress and the Administration continue to emphasize

the effective regulation and control over firearms. We performed

our audit fieldwork from January to August 2001 at ATF

Headquarters in Washington, D.C., three field divisions, and the

Brady Operations Branch (Brady Branch) in Martinsburg, West

Virginia. We interviewed ATF officials and evaluated records and

procedures. The scope of this review covered November 30, 1998

through December 31, 2000. See Appendix 1 for a more detailed

description of the audit objectives, scope, and methodology.

Results in Brief

ATF officials have implemented a NICS program to address their

responsibilities under the Brady Act. For example, they established

the Brady Branch for receiving and processing NICS referrals from
ATF Could Improve its NICS Program Page 3

the Federal Bureau of Investigation (FBI), initially without

permanent staffing. ATF has also developed criteria and guidance

for processing NICS referrals and conducted training on the NICS

program. Field agents conduct investigations and, when needed,

remove firearms from prohibited individuals. ATF has also worked

with the United States (U.S.) Attorneys to establish prosecution

guidelines, so that field agents only fully investigate and develop

cases that are likely to be prosecuted.

During our audit, we reviewed a sample of 275 cases that ATF

completed where agents needed to retrieve a firearm from a

prohibited individual. ATF field agents successfully removed the

firearm in 96 percent of these cases. For the remaining 4 percent,

after conducting their investigation, ATF was unable to locate the

firearm.1

 ATF referred 4 of the 275 cases to the U.S. Attorneys

for prosecution. The remainder did not meet the U.S. Attorney

prosecution guidelines. In most cases, we found that ATF’s NICS

investigations were started promptly.

We noted three areas where ATF could further improve the

program. First, now that the NICS program is well established,

ATF officials can improve it by evaluating and responding to the

program’s impact on field divisions. Second, the Brady Branch's

process for sending referrals to field divisions could be improved.

Lastly, the primary database management system used in the field

needs to be upgraded.

To address these issues, we recommended that ATF: (1) develop

case workload and staffing models to better assess and respond to

field division needs in investigating NICS referrals, (2) issue

guidance clarifying NICS referral priority within field divisions' other

violent crime program activities, (3) develop a NICS program model

for all field divisions to use, (4) streamline the referral process to

include having the Brady Branch perform additional background

work before sending referrals to the field divisions, (5) upgrade the

database systems the Brady Branch and the field divisions use so

 

1 Our sample was not a statistical one, so these results cannot be projected to the entire universe of

ATF’s cases.
ATF Could Improve its NICS Program Page 4

they can communicate electronically, (6) until such time as referrals

can be made electronically, implement an inventory control system

in the Brady Branch for referrals sent to field divisions, and

(7) upgrade N-Force to include query capabilities the field divisions

need.

ATF agreed with the recommendations made in this report. ATF

officials will examine current staffing models for field offices and

make necessary adjustments. They will also issue guidance

clarifying the NICS referral priority within field divisions' other

violent crime program activities and they will develop a NICS

program model.

The Brady Branch has streamlined the referral process. Staff are

now performing some background work of NICS referrals. They

are making the referral package more user friendly. They also now

send the field divisions a list of referrals the Brady Branch has sent

to the field, which the field divisions can then use to verify that all

referrals have been received.

ATF is in the process of developing a system to integrate all

firearms databases and connect them to other appropriate ATF

data files. This integration will allow the Brady Branch to

electronically transmit referrals to field divisions. The next phase

of N-Force will also allow queries to be generated from the field

level.

Background

Under the Brady Act, effective November 30, 1998, no Federal

firearms licensee shall transfer a firearm (handgun or long gun) to

an individual (non-licensee) without a background check. The FBI,

or a designated state agency, uses the NICS computerized system

to conduct background checks. Firearms are not to be transferred

until a background check determines that the transfer will not

violate applicable federal and state laws. However, if the

background check is not completed within 3 business days, the

sale is allowed to proceed. The FBI continues to research the

backgrounds of purchasers, even after 3 days have passed, to
ATF Could Improve its NICS Program Page 5

ensure that they are not prohibited individuals. If the FBI's NICS

Operation Center determines an individual was prohibited from

owning a firearm, the case is referred to ATF for further action.

The FBI makes two types of referrals to ATF: standard and

delayed. “Referrals-Standard” are prohibited individuals who

attempted to purchase a firearm, but were denied within

3 business days, or before the firearm was transferred. “ReferralsDelayed” are prohibited individuals who obtained a firearm after the

3-day period expired, but before the FBI determined the individual

was prohibited.

ATF’s Brady Branch in Martinsburg, West Virginia receives all of

the FBI referrals. The FBI initially faxes all Referrals-Delayed and

later electronically downloads all its referral records, both delayed

and standard, to the Brady Branch’s computer database.

For Referrals-Delayed, the Brady Branch faxes the FBI information

to the appropriate field divisions for immediate action. The Brady

Branch also prepares a package of information that is mailed to the

field divisions. All Referrals-Delayed are forwarded to field

divisions for action.

For Referrals-Standard, Brady Branch staff review each referral and

compare it to a set of criteria, developed in conjunction with U.S.

Attorneys, to determine whether the referral warrants further

investigation. The criteria are designed to limit referrals to the field

divisions that U.S. Attorneys will not prosecute. If the criteria are

met, the Brady Branch staff members will prepare a referral

package and mail it to the responsible field division. If the criteria

are not met, the Brady Branch will close out the referrals with no

further action required.

Once a field division receives a referral from the Brady Branch, it is

generally assigned to a field agent for further review and

investigation. Referrals-Delayed are considered high priority for

action, to ensure that the firearm is removed from the prohibited

individual. Referrals-Standard may receive an initial review to

determine whether the local U.S. Attorney would be interested in
ATF Could Improve its NICS Program Page 6

prosecution. If prosecution is a possibility, the referral is assigned

to a field agent for investigation. If the referral is not a likely

candidate for prosecution, it is generally closed without further

action.

Under the Administration’s Project Safe Neighborhoods, emphasis

is to be placed on aggressive enforcement of Federal firearms laws

against people who are prohibited from possessing firearms,

including Brady Act violators. The Department of Justice plans to

hire 113 new Assistant U.S. Attorneys to work on firearms

violation cases. As this happens, ATF’s practices may also need to

change, as it may be asked to fully investigate and refer more

Brady violators for prosecution.

Findings and Recommendations

Finding 1 ATF Needs to Better Respond to NICS Impact on Field

Divisions

ATF officials have implemented a NICS program to address their

responsibilities under the Brady Act. Now that the NICS program is

well established, ATF officials can improve it by evaluating and

responding to the program’s impact on field divisions. The NICS

program has changed the number of mandatory criminal

investigations field divisions must perform along with their other

investigative responsibilities, but ATF has not changed its

management processes to address this. As a result, ATF

Headquarters may not be able to respond to problems as they

occur in the field divisions. For example, the large numbers of

referrals have overwhelmed some field divisions, which may impact

their ability to carry out other ATF violent crime programs. Also,

the NICS structure and processes vary between field divisions,

without taking advantage of the best practices that exist in some

locations.
ATF Could Improve its NICS Program Page 7

ATF Has Implemented the NICS Program

In implementing the NICS program, ATF Headquarters provided

guidance and collected performance data from field divisions on the

NICS program. For example, ATF developed criteria for processing

NICS information. A policy was also implemented requiring field

investigations of all Referrals-Delayed and some Referrals-Standard.

In addition, ATF Headquarters receives biweekly NICS performance

reports from the field divisions. These reports include information

on Referrals-Delayed received, cases referred for prosecution, the

number of defendants, and the firearms retrieved. While there is

no specific law enforcement performance measure for NICS, it is

included in the calculations for fighting violent crime that ATF uses

to assess the impact of its strategic goals. ATF officials have

visited the field divisions to discuss NICS issues, among other

topics, and have also held a NICS Coordinators’ Conference.

The following table shows ATF NICS activity from the time the

program began in November 1998 through June 5, 2001.

Table 1: ATF NICS Activity

Forwarded to Field:

Referrals

Received

ReferralsDelayedReferralsStandard

Referred for

Prosecution Convictions

Total

Numbers 217,061 11,106 50,545 2,131 294

There are significant differences between the number of referrals

received, forwarded to the field, and referred for prosecution. As

we noted earlier, while the Brady Branch forwards all ReferralsDelayed received to the field, ATF Headquarters has established

criteria in concert with U.S. Attorneys to limit the number of

Referrals-Standard forwarded to the field.

ATF officials attempt to work closely with their respective U.S.

Attorneys to identify prosecutable cases to which ATF can devote

its limited resources. For the field offices we visited, the U.S.
ATF Could Improve its NICS Program Page 8

Attorneys have established either written or verbal prosecution

guidelines, which field agents use to determine if a case should be

referred for prosecution. Each judicial district may have a different

threshold for prosecution, depending upon their local crime

problem. Of the approximately 217,000 who have been denied

firearm purchases since the Brady system was instituted, only 294

(less than 0.1%) have been convicted.

ATF Needs to Monitor and Address Impact of NICS Program

While ATF has administered the NICS program, they could further

improve the program by monitoring and addressing its impact on

field divisions. First, discussions with ATF personnel indicated that

they did not conduct studies of case workloads, staffing, and other

needed resources to ensure the field divisions could effectively and

efficiently implement the NICS program. Field divisions we visited

and those contacted in an ATF study of the NICS program

commented on how NICS referrals have had a negative impact on

their other investigative responsibilities and the amount of staff

they have to devote to the NICS program. A problem with

conducting workload studies is that N-Force, the case management

system used in the field, does not communicate with ATF's

Simplified Time and Attendance System.2

 The needed staffing data

is not easily accessible and this makes it difficult to perform an

analysis of the impact NICS is having on the field divisions.

Second, ATF officials could assist field division directors in making

the best use of their investigative resources by clarifying their

responsibilities for establishing NICS case priority. To date, ATF

has provided conflicting guidance to field divisions on how to

prioritize referrals within the context of all other Violent Crime

investigations. In some instances, ATF Headquarters instructed

field divisions that NICS referrals are to be ranked in priority as the

local crime problem dictates. The guidance states that NICS cases

are not to be worked at the expense of higher priority

investigations; however, priority consideration should be given to

 

2

 This system captures information and statistics on the time field agents worked on investigative

cases.
ATF Could Improve its NICS Program Page 9

Referrals-Delayed, where the firearm has been transferred to a

prohibited individual. In the same, as well as other guidance

documents, ATF Headquarters also directs field divisions to give

priority to immediately investigating Referrals-Delayed and indicates

that investigations must be initiated for each Referral-Delayed.

ATF Headquarters needs to reinforce that division directors should

rank the priority of NICS cases, including Referrals-Delayed, within

the context of their other investigations, so they know how to

proceed if resources are insufficient to meet the demands of all

high priority investigations.

Finally, ATF Headquarters could facilitate an exchange of best

practices through a NICS program model that divisions could use to

help address the problems they face. For example, while ATF

Headquarters officials issued guidance requiring the field divisions

to designate a NICS coordinator, they did not specify where this

person should be situated within the organizational structure. We

found that the divisions placed the NICS coordinator in different

areas and even gave them different types of responsibility. We

also noted that ATF had not issued any timeliness standards for

completion of investigations. Without Headquarters guidance,

some field divisions had developed their own standards, which

varied from 5 days to 21 days. While we recognize that there will

be differences in how the divisions operate, based upon their local

issues, we also believe that the divisions face many similar

problems and could benefit from sharing solutions.

Management is Required to Monitor Programs and Address

Problems

To administer a program and maintain management accountability,

ATF Headquarters management needs to more closely monitor the

NICS program and take any necessary actions to address potential

problems. The Office of Management and Budget (OMB) Circular

A-123, Management Accountability and Control, states that

managers are responsible for the quality and timeliness of program

performance, increasing productivity, and controlling costs and

mitigating adverse aspects of agency operations. To accomplish
ATF Could Improve its NICS Program Page 10

this, Federal managers should take proactive measures to identify

needed improvements and take corresponding corrective action.

Management of the NICS program is divided between two ATF

Headquarters offices, which can lead to confusion over

responsibilities. The Office of Firearms, Explosives and Arson is

responsible for program oversight, while the Office of Field

Operations is responsible for field investigations and resource

management. ATF's draft Strategic Plan for Fiscal Year

(FY) 2000-2005 commented that both ATF Headquarters and field

managers have reported confusion between Directorates (Offices),

and between ATF Headquarters and the field divisions, over

responsibilities and mandates. Since the possibility of confusion

over responsibilities could affect NICS program performance, it is

important for ATF Headquarters to take the necessary actions to

monitor and control the impact of the NICS program.

Current Management Processes Do Not Address Changes NICS

Caused

The NICS program has changed the number of mandatory ATF

firearms criminal investigations, but ATF did not change its

management processes to address this. ATF Headquarters

intended to allow division directors to incorporate the NICS

program into their strategies to address local violent crime

problems. However, by requiring field divisions to investigate all

Referrals-Delayed and certain types of Referrals-Standard, ATF

added a new mandatory workload to the divisions. Such a

mandatory workload removes the division directors’ ability to

control caseloads with regard to the local crime problems.

Furthermore, no additional resources were given to the field

divisions to meet these requirements, contributing to the negative

impact NICS referrals are having on other investigations, as noted

by an ATF study.

ATF Headquarters analyzes NICS output performance statistics,

such as the number of Referrals-Delayed received and the number

of cases submitted for prosecution, to monitor field division

performance. However, these types of data do not reflect any
ATF Could Improve its NICS Program Page 11

impact the volume of NICS cases may have on other types of

investigations. They also do not demonstrate the amount of time

devoted to NICS investigations or other Violent Crime

investigations, nor any changes or trends that may be occurring.

Management May Not Respond to Problems or Promote Best

Practices

Without taking these steps to further improve the NICS program,

ATF Headquarters may not be able to respond to problems as they

occur in the field divisions. The risk exists that without ATF-wide

NICS program management and resource coordination to ensure

the proper placement of staffing and resources, ATF's efforts to

prevent or deter violent crime will be diminished. In an ATF study

of 23 field divisions, many reported that NICS investigative

workload had a negative effect on crime impact objectives within

the division. One field division even reported having to stop all

other investigative activities to work NICS referrals. Also, over half

of the divisions reported that NICS had a negative impact on their

division's operational and administrative effectiveness. ATF must

be able to accurately demonstrate the impact of NICS on its field

divisions to request any needed additional funds from Congress.

Because ATF Headquarters assigns field division staffing using

historical standard numbers of field agents per office, staffing is

not necessarily aligned properly. The ratio of support personnel to

field agents may not be appropriate for addressing field division

workloads. Divisional officials stated that they needed additional

support personnel and field agents to handle NICS cases, along

with other important investigations. Also, in some field divisions

we visited, the Intelligence Units spent a lot of their time on NICS,

which may reduce the amount of support they give to other

criminal investigations.

NICS structure and processes vary between field divisions, without

taking advantage of the best practices that exist in some locations.

Not having a NICS program model could result in 23 different

programs at the field division level, each learning from its own

mistakes, which is an inefficient use of limited resources. For
ATF Could Improve its NICS Program Page 12

example, in one of the field divisions we visited, the NICS

coordinator, until recently, passed on the NICS referrals to the

appropriate field office without doing preliminary reviews. Now,

the NICS coordinator is going to be located within the Intelligence

Unit and will be responsible for preliminary work on NICS referrals

before sending them to field offices. The field division could have

benefited from a model indicating the most advantageous method

to process referrals and where to place the NICS coordinator.

Also, by not having more consistent processes or standards,

including timeliness guidelines, it is difficult for ATF Headquarters

to determine field division performance in relationship to the other

field divisions. These types of comparisons could identify problem

areas that need Headquarters’ attention.

Recommendations

The ATF Director should ensure that Headquarters officials:

1. Develop case workload studies and staffing models to assess

and respond to the NICS program's impact on field division

resources, including an analysis of the time and number of field

agents and support personnel devoted to NICS and to the

performance of other investigative priorities.

Management Comments

ATF concurred with the recommendation. The Office of Field

Operations is currently conducting a reassessment of resources.

Using the experience gained from the NICS referral process and the

resulting case production to date, ATF plans to use the first two

quarters of FY 2002 as a base measurement for any staffing model

or case workload policy changes.

OIG Comment

We consider this recommendation to have a management decision

with a projected final action date of September 30, 2002.
ATF Could Improve its NICS Program Page 13

2. Issue guidance clarifying NICS referral priority within field

divisions' other violent crime program activities.

Management Comments

ATF concurred with the recommendation. ATF officials will clarify

the role of the divisions with respect to the allocation of resources

for NICS and other violent crime programs. The guidance will

clarify the priority of investigating NICS referrals in the context of

ATF’s overall violent crime program.

OIG Comment

We consider this recommendation to have a management decision

with a projected final action date of December 31, 2001.

3. Develop a NICS program model for all the field divisions to use.

This model should include "Best Practices" the field divisions

may choose from, timeliness standards for investigations, and

standards for investigative files.

Management Comments

ATF concurred with the recommendation. ATF has plans to

schedule a NICS Coordinators’ conference with its main objective

being the creation of a NICS program model. Additionally,

appropriate guidance regarding the processing and review of NICS

referrals will be issued.

OIG Comment

We consider this recommendation to have a management decision

with a projected final action date of the June 30, 2002.
ATF Could Improve its NICS Program Page 14

Finding 2 ATF Could Improve the Referral Process to the Field

Divisions

The Brady Branch's process for sending referrals to field divisions

could be improved. First, the referral packages are not as complete

and easy to interpret as they could be. Second, the referrals are

sometimes not timely, or are even lost between the Brady Branch

and the field divisions. Several factors have contributed to the

need for an improved referral process, including that (1) ATF has

not fully utilized the Brady Branch resources, because the NICS

program and Brady Branch are relatively new, (2) the Brady Branch

must mail its referral packages to the field divisions because the

Branch's information system does not communicate with the field's

system, and (3) there are no controls in place to ensure the referral

packages sent to field divisions are actually received. As a result,

ATF has not made the most efficient use of both the field division

and Brady Branch resources. Also, some investigations and firearm

retrievals were delayed. ATF management needs to address these

issues to ensure that pertinent information is identified, captured,

and distributed in a form and time frame that permits people to

perform their duties efficiently.

Brady Branch Could Make Referral Packages More Useful

Field division personnel commented that Brady Branch referral

packages could address additional factors and could be easier to

use. First, Brady Branch staff could perform more background

research related to specific state laws to assist field agents.

Second, the Brady Branch staff could take steps to make the

packages easier to interpret. Currently, the package includes a

cover memo, a summary of information about the purchaser, FBI

database search information, and, in some instances, court

documents the investigative specialist may have obtained. Field

division personnel must review the whole package to identify

pertinent information.

The Brady Branch has had little time available to consider

improvements to the process, because ATF's NICS program and

the Brady Branch staff are relatively new. When the NICS program
ATF Could Improve its NICS Program Page 15

began in November 1998, field agents were detailed on a rotating

basis to the Brady Branch to examine referrals and forward them to

the field divisions. The first permanent staff was not hired until

January 2000. As of January 2001, the Brady Branch had 15

permanently assigned personnel. Also, when the program was

established, ATF was not expecting the volume of referral activity

that has since developed. In the early months of calendar year

2000, there was a backlog of 14,000 referrals, which the

permanent staff eliminated in August 2000.

Under the current referral process, field agents have increased

administrative responsibilities. First, field agents must read the

entire package to determine some key information, since the

packages do not have a consistent format or order of information,

particularly within the FBI search section. For example, field

agents may have to read the entire arrest record to determine what

prohibiting factor the FBI denied on. Second, field division

personnel must perform additional background checks after

receiving the package from the Brady Branch. In some cases, after

doing more research, the field agents determine the referrals are

not prohibited individuals, meaning that an investigation is

unnecessary. For the three field divisions we visited, the

percentage of referrals identified as non-prohibited individuals in

our review of Referrals-Delayed for one quarter were as follows:

Table 2: Percentage of Not Prohibited Individuals

Field Division

Investigation

Determined Not

Prohibited Individual

Number of Not

Prohibited

Individuals Identified

Total Number of

Referrals-Delayed

Received

New Orleans 23% 48 206

Dallas 22% 28 127

Louisville 13% 13 102

An ATF study, which solicited information from the field divisions,

noted similar complaints from other field divisions.
ATF Could Improve its NICS Program Page 16

To help address this issue, the Brady Branch could use a list of

common state laws that re-instate prohibited individuals to reduce

the number of referrals made to the field divisions. For example, in

Louisiana, two unique provisions of State law directly impact NICS.

• In the case of enumerated offenses under Louisiana State

statute, once ten years have passed after a sentence is

completed, the individual regains the right to possess firearms,

and is no longer considered a prohibited individual under State

statute.

• The FBI NICS denial criteria of "fugitive from justice" mean that

the person has fled the state. However, FBI denials are

sometimes individuals with warrants who have not fled the

state, are not federal fugitives, and still live at the address of

record maintained by the court. If the subject has not left the

state, it is not a violation of Federal gun laws and ATF does not

have jurisdiction.

Having the Brady Branch include more commonly known state laws

with its list of criteria when reviewing the referrals it receives,

would reduce the investigative caseloads at the field division level.

ATF Needs to Better Control Referral Packages Sent to Field

Divisions

The referrals are sometimes not timely or are even lost between

the Brady Branch and the field divisions. For example, in the field

divisions we visited, many Referrals-Delayed investigations were

started and some cases completed before the Brady Branch referral

packages were received, so that the packages were not useful to

the field agents. Also, a number of referrals the Brady Branch sent

to the field divisions were never received. In one division, there

were no records of receiving 18 Referrals-Delayed identified in our

sample as having been sent to the field division. We noted similar

situations in the other two field divisions we visited. There was no

way to determine if the divisions had ever received the referrals, or

that they had actually been sent.
ATF Could Improve its NICS Program Page 17

The untimely and lost referrals occurred because of the referral

process that has been established within ATF. First, ATF faxes all

Referrals-Delayed to field divisions and then later mail packages by

private carrier. Because ATF has stressed the importance of the

NICS program, the field divisions are devoting much of their

resources to promptly investigating NICS cases. In many

instances, field agents begin work as soon as the fax is received.

Second, the Brady Branch must wait for the electronic transfer of

information from the FBI before it can compile its referral package

and send it to the field divisions. The packages are mailed,

because ATF's NICS Referral (ANR) System does not communicate

with N-Force, the case management system the field divisions use.

Finally, once the packages are sent to the field divisions, there are

no controls in place to ensure the referral packages sent are

actually received.

As a result of the established process and the untimely referrals,

ATF resources are not used efficiently. The Brady Branch is

wasting its resources putting together packages if the investigation

is already done. Also, some investigations were delayed or not

performed at all. For the lost referrals we identified, the Brady

Branch re-sent the referrals to the field divisions for action on

firearms purchases that were several months old. Given that we

observed lost referrals in all three field divisions, we believe this

situation may be occurring in other field divisions as well. Since

there is no process to ensure that all referrals are received in field

divisions, it is possible that some needed investigations are not

being performed.

The field divisions should receive the referral package in the most

efficient and effective manner possible. The packages should

differentiate between urgent and less urgent referrals, so field

agents can allocate their time working more urgent referrals first.

The packages should contain as much pertinent and easily

identifiable information as possible. Complete information includes

a list of databases searched, courts and Federal firearms licensees

contacted, and the most current addresses for the Federal firearms

licensees and the prohibited individuals. The most efficient way to

get this information to the field divisions is to electronically transfer
ATF Could Improve its NICS Program Page 18

the referral package from the ANR system to the field divisions' NForce system.

Recommendations

We recommend that the ATF Director ensure:

1. The referral process is streamlined by having the Brady Branch

perform more background duties. This includes:

a. Designating Referrals-Delayed as Urgent or Less Urgent as

determined by ATF criteria, with the Urgent going

immediately to the field divisions, while the Less Urgent are

developed further at the Brady Branch.

b. Developing a more user-friendly referral package that

highlights the prohibiting factor and includes the most

current address and any courts or Federal firearms licensees

the Brady Branch contacted.

c. Having Brady Branch personnel examine the ReferralsDelayed for non-prohibiting factors, using criteria the field

divisions develop on common State gun laws and local

prosecutorial practices, to reduce the number of unnecessary

referrals being sent to the field.

Management Comments

ATF concurred with the recommendation to streamline the referral

process. The Brady Branch is now using a limited period of time to

perform certain background work, which has the effect of

identifying the Referrals-Delayed with the highest priority. This

includes contacting the Federal firearms licensee to determine if the

firearm was in fact transferred, making it a higher priority. ATF is

also making the referral package more user friendly by highlighting

specific data on the referral documents. Since April 2001, ATF

has prioritized the Referrals-Standard by using investigative criteria

developed to mirror existing local U.S. Attorney's prosecutorial

guidelines. In March 2001, ATF has streamlined the referral

process for Referrals-Delayed, by eliminating redundancy of effort

and duplication of materials sent to the field.
ATF Could Improve its NICS Program Page 19

OIG Comment

We consider this recommendation to have a management decision

with final action completed. ATF officials have taken steps to

streamline the referral process. We encourage them to continue

seeking other ways to address the high number of non-prohibited

persons that field agents spend time on. Reducing the number of

NICS referrals the field agents must investigate when the person is

not prohibited would improve productivity and allow field agents to

focus on cases where public safety is truly at risk.

2. The ANR and N-Force systems are upgraded so they can

communicate electronically.

Management Comments

ATF concurred with the recommendation. It has contracted with

an outside company to develop a system to integrate all firearms

databases and connect them to other appropriate ATF data files.

The fusion of ANR and N-Force is part of that effort and will allow

for direct electronic transmittal of NICS referrals to field offices.

OIG Comment

We consider this recommendation to have a management decision

with a projected final action date of January 31, 2002.

3. The Brady Branch uses a numbering system or inventory list as

a control to ensure referrals sent to the field divisions are

actually received until referrals can be made electronically.

Management Comments

ATF concurred with the recommendation. The Brady Branch has

created a report that will be forwarded to the ATF NICS

coordinator in each division office on a weekly basis. The list can

be matched to any referrals received by fax or Federal Express.
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OIG Comment

We consider this recommendation to have a management decision

with final action completed.

Finding 3 ATF Needs to Upgrade N-Force Querying Capabilities

N-Force, the designated database management system for NICS,

does not meet the needs of field divisions. As a result, field

divisions have had to establish auxiliary databases for NICS

referrals, which is an inefficient use of resources. The N-Force

design does not meet the search requirements field divisions need

to manage the NICS program, although OMB requires information

systems to fulfill such standards.

N-Force does not meet the querying needs of field divisions. Field

division personnel commented that N-Force can only be searched

by case number and project code. They, however, need to be able

to query the database in other ways, such as by NICS tracking

numbers to determine if they have already received a duplicate

referral or by purchaser name to determine if the individual is

associated with any other referrals already received.

Because N-Force does not meet their needs, the three field

divisions we visited have each implemented a different database

management software package to query NICS referral information.

The separate systems allow searches by any data field, such as

referral type, name, field office, and field agent. The field divisions

are performing dual entry of the same NICS referral information,

first into N-Force, because it is the designated database

management system, and second, into their own unique database

management systems so they can query the referral information.

The dual entry is inefficient, further taxing field agents and support

personnel who, in some instances, are already overwhelmed with a

large number of NICS referrals. However, field division personnel

commented that they would continue the dual entry of information

until N-Force is capable of querying the way it is needed to perform

their investigations.
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Although ATF is required to ensure its information systems fulfill

agency requirements, N-Force was not designed to meet the needs

of field divisions. OMB Circular A-130, Management of Federal

Information Resources, established requirements that all executive

agencies must review information systems to determine how

mission requirements might have changed and whether the

information systems continue to fulfill ongoing and anticipated

mission requirements. The NICS program has impacted field

divisions’ workloads. Receiving a large volume of referrals has

resulted in field divisions needing a new method to manage and

track information. Because N-Force does not provide this method,

field divisions created their own information systems to meet their

needs.

Recommendation

We recommend that the ATF Director ensure:

1. N-Force is upgraded to allow querying capabilities the field

divisions need.

Management Comments

ATF concurred with the recommendation. The Requirement

Analysis for the next phase of N-Force was completed in March

2001. This analysis demonstrated that the current system used to

send referrals could be automated to decrease data entry and

processing time. With ANR/N-Force integration and additional

query capability for the field, many, if not all, data problems will be

reduced or eliminated.

OIG Comment

We consider this recommendation to have a management decision

with a projected final action date of January 31, 2002.
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* * * * * *

We appreciate the cooperation we received from ATF officials

during this audit. If you wish to discuss this report, you may

contact me at (312) 886-6300, ext. 118. Major contributors to

this report are listed in Appendix 2.

“/s/”

Roberta N. Rickey

Regional Inspector General for Audit
Appendix 1

Objectives, Scope, and Methodology

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We conducted this review because Congress and the

Administration continue to express concern over the enforcement

of gun laws.

Our overall objective was to determine what efforts ATF has made

to enforce the Brady Act. Our specific objectives were to

determine whether:

• ATF has developed criteria for processing NICS information and

making timely referrals to the field divisions,

• ATF field divisions have developed criteria for processing Brady

Branch referrals and are conducting timely investigations, and

• ATF monitors field division performance in conducting NICS

referral investigations.

Our review generally covered NICS activities from November 1998

through December 2000. To accomplish our objectives, we

conducted work at ATF's Brady Operations Branch in Martinsburg,

West Virginia and Headquarters in Washington, D.C., where we

interviewed officials and other employees regarding their NICS

functions and duties. We reviewed policies, procedures, and

records related to: (a) criteria used in conducting preliminary

reviews of NICS referrals and (b) information used to measure the

Brady Branch and field division performance.

We also visited ATF field divisions in Dallas, Louisville, and New

Orleans. In selecting these divisions, we considered the number of

NICS investigations initiated, the number of Referrals-Delayed

received in the first quarter of FY 2001, the total number of all

referrals (Delayed and Standard) received in FY 2001, and their

location in States participating or not participating in the NICS

program. We interviewed ATF division directors and group

supervisors to review and evaluate their procedures for processing

NICS referrals. We also reviewed division investigation case files.

We selected two samples of referrals for additional testing. We

sampled 100% of the referrals for the 1st Quarter FY 2001
Appendix 1

Objectives, Scope, and Methodology

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(Referrals-Delayed) and a 5% sample for FY 2000 (ReferralsDelayed and Referrals-Standard). We determined when referrals

were received in the field divisions, when investigations started,

when they were completed, and the results of the investigations.

Finally, we reviewed a sample of transferred or unrecovered

firearms to determine if the firearms were traced to any subsequent

criminal activity.

We conducted our audit between January 2001 and August 2001

in accordance with generally accepted government auditing

standards.
Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 2

Management Response

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Appendix 3

Major Contributors To This Report

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Chicago Regional Office

Roberta N. Rickey, Regional Inspector General for Audit

Janice A. Miller, Audit Manager

Bradley Mosher, Auditor-in-Charge

Claire Schmidt, Auditor
Appendix 4

Report Distribution

ATF Could Improve its NICS Program Page 39

The Department of the Treasury

Office of the Under Secretary of the Treasury for Enforcement

Office of the Assistant Secretary of the Treasury for

Management, Chief Financial Officer

Office of Organization Improvement

Office of Strategic Planning & Evaluations

Office of Budget

Management Control Branch

Bureau of Alcohol, Tobacco and Firearms

Director

Assistant Director, Field Operations

Assistant Director, Firearms, Explosives & Arson

Assistant Director, Management/Chief Financial Officer

Assistant Director, Inspection

Assistant Director, Liaison & Public Information

Assistant Director, Training & Professional Development

Chief, Strategic Planning Office

Office of Management and Budget

Treasury Bureau Chief

OIG Budget Examiner