Performance and 

Accountability Report

Fiscal Year 2014
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Vigilance is how we ensure the safety 

of all Americans. We are continuously 

watchful and alert to deter, detect, 

and prevent threats to our Nation. We 

demonstrate courage and valor in the 

protection of our Nation.

Service to country is embodied in 

the work we do. We are dedicated 

to defending and upholding the 

Constitution and the laws of the 

United States. The American people 

have entrusted us to protect the 

homeland and defend liberty.

Integrity is our cornerstone. We are 

guided by the highest ethical and 

moral principles. Our actions bring 

honor to ourselves and our Agency.

Vigilence Service To Country Integrity

Core Values

To safeguard America’s borders thereby protecting the 

public from dangerous people and materials while 

enhancing the Nation’s global economic competitiveness 

by enabling legitimate trade and travel.

Mission Statement:

Performance and Accountability Report
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2014 Performance and Accountability Report • U.S. Customs and Border Protection 2014 Performance and Accountability Report • U.S. Customs and Border Protection 1

About This Report 

The United States (U.S.) Customs and Border Protection (CBP) Fiscal Year (FY) 2014 Performance 

and Accountability Report (PAR) combines CBP’s Annual Performance Report with its audited 

financial statements, assurances on internal control, accountability reporting, and Agency 

assessments. CBP’s PAR provides program, financial, and performance information that enables 

Congress and the public to assess its performance as it relates to the CBP mission. 

The CBP PAR discusses the Agency’s strategic goals and objectives and compares its performance 

targets to actual performance results. The CBP PAR satisfies the reporting requirements of the 

Reports Consolidation Act of 2000 (Pub. L. No. 106-531), Government Performance and Results 

Modernization Act of 2010, Chief Financial Officers Act of 1990 (Public Law No. 101-576), Office 

of Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirements dated 

September 18, 2014, and other financial management statutes and reports.

The CBP PAR summarizes the Agency’s major mission strategies (i.e. programs and initiatives) 

under our strategic goals and objectives, as outlined in CBP’s revised strategic plan – CBP Vision 

and Strategy 2020. Additional information related to specific programs, initiatives, tools, and 

resources to achieve Agency goals and objectives are in the body of the U.S. Department of 

Homeland Security (DHS) Congressional Budget Justification for the President’s Budget, which 

details information by DHS component.

CBP’s FY 2014 PAR and the Summary of Performance and Financial Information will be located on 

www.cbp.gov after publication.

For more information:

U.S. Customs and Border Protection

Office of Administration

1331 Pennsylvania Avenue, NW, Suite 950

Washington, DC 20229-1103

Follow us on:

https://twitter.com/CustomsBorder

https://www.linkedin.com/company/2997?trk=tyah

https://www.youtube.com/user/customsborderprotect

https://www.flickr.com/photos/cbpphotos/

Email updates: 

https://public.govdelivery.com/accounts/USDHSCBP/subscriber/new
2 U.S. Customs and Border Protection • 2014 Performance and Accountability Report U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP At A Glance

Established 2003

Headquarters

Ronald Reagan Building

1300 Pennsylvania Avenue NW, 

Washington, DC 20004

Commissioner R. Gil Kerlikowske

2014 Total Employees Approximately 60,000

2014 Annual Budget $13.9 billion 

Foreword

CBP is part of the DHS. By directives, OMB, which implements the Chief Financial Officers Act of 

1990, requires CBP to prepare financial statements separate from those of DHS. CBP consolidates 

key data and information and provides this to DHS to incorporate into its corresponding reports. 

Although CBP is not required to prepare a separate Annual Financial Report or PAR, the Agency 

can better demonstrate accountability by presenting performance, management, and financial 

information using the same statutory and guidance framework used by DHS. For this reason, CBP 

has produced its own PAR since FY 2003.

CBP’s FY 2014 PAR provides an overview of the Agency’s financial and performance data to help 

Congress, the President, and the public assess its performance and stewardship of resources. CBP 

strives to raise the bar with top performance and financial accountability and help DHS and the 

Federal Government excel in providing high-quality services and products to American taxpayers.

This report and reports from prior years are available on the CBP website at www.cbp.gov. 

Links to previous year’s PARs

FY 2010 PAR FY 2011 PAR FY 2012 PAR FY 2013 PAR

CBP At A Glance 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 2014 Performance and Accountability Report • U.S. Customs and Border Protection 3

Table of Contents 

1

Introduction

1 About This Report

2 CBP At A Glance 

3 Table of Contents 

4 Message from the Commissioner

5

Management’s Discussion 

and Analysis

6 Overview of CBP

8 CBP Statistical Highlights

9 CBP Organization

15 CBP’s Integrated Planning Framework

16 CBP’s Strategic Goals

18 Goal 1 Advance National Security and 

Public Safety

29 Goal 2 Enhance U.S. Economic 

Competitiveness by Enabling Lawful Trade 

and Travel

38 Goal 3 Advance Comprehensive Border 

Security and Management

49 Goal 4 Promote Organizational Integration, 

Innovation, and Agility

56 Looking Ahead

57 Performance Goals and Results

60 FY 2014 Performance by CBP Strategic Goal 

62 Management Assurances

63 Financial Management

67

Performance Section

68 Performance Summary

79

Financial Section

80 Message from the Chief Financial Officer

81 Financial Statements

89 Notes to Financial Statements

117 Required Supplementary Information

123 Auditors’ Report

147

Other Information

162 Office of Inspector General (OIG) Report on 

Major Management Challenges

163 Acronyms

Table of Contents
4 U.S. Customs and Border Protection • 2014 Performance and Accountability Report U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Message from the Commissioner 

I am pleased to present the Fiscal Year (FY) 2014 Performance and 

Accountability Report (PAR) for U.S. Customs and Border Protection 

(CBP). As the guardians of our Nation’s borders, CBP protects the public 

from dangerous people and materials while facilitating legitimate 

international travel and trade that is vital to our Nation’s economy.

CBP’s approximate 60,000 dedicated employees led the way in making 

America a secure and prosperous Nation during FY 2014, overseeing 

more than 6,900 miles of land borders and 95,000 miles of shorelines. 

We made significant progress in border security, including increases in 

illegal narcotics seized and illegal aliens apprehended.

We increased our collaboration with Federal, state, local, tribal, and international partners using a 

“whole of government” approach to combat individuals and criminal organizations who threaten 

communities on both sides of the border.

The FY 2014 PAR discusses our challenges, accomplishments, performance results, and financial 

information, and highlights a few success stories in serving as the premier law enforcement agency.

As an organizational component of the Department of Homeland Security, CBP is not required to 

prepare a separate PAR; however, as the second largest revenue collector in the Federal government, 

we owe the public we serve transparency in our stewardship responsibilities. We increased our total 

revenue by 6.4 percent to $43.5 billion during FY 2014 while facilitating more efficient trade and 

travel through Trusted Traveler and Trusted Trader programs.

Our goals of the past year, discussed further in the PAR, were based on an integrated planning 

framework. Beginning in 2014, and carrying through FY 2015, I have revised the framework to 

focus our efforts to:

 Advance National Security and Public Safety

 Enhance U.S. Economic Competitiveness by Enabling Lawful Trade and Travel 

 Advance Comprehensive Border Security and Management 

 Promote Organizational Integration, Innovation, and Agility

The goal of the PAR remains to provide Congress and the American public with timely, reliable, 

and useful financial information and to illustrate the value and impact of CBP’s contributions 

to U.S. prosperity and security. This same in formation, in the hands of CBP managers, enables 

them to make sound business decisions to improve our processes and increase our efficiency and 

effectiveness as we execute our vital missions.

R. Gil Kerlikowske

Commissioner 

Message from the Commissioner
Management’s Discussion 

and Analysis

This section explains CBP’s mission, organization structure, strategic direction, and summarizes 

program and financial performance.
6 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Overview of CBP 

Following legislation to establish DHS by the Homeland Security Act of 2002, CBP was formed by 

merging the U.S. Customs Service, the U.S. Border Patrol, the U.S. Department of Agriculture’s Animal and 

Plant Health Inspection Service, and major elements of the U.S. Immigration and Naturalization Service, 

including the Immigration Inspection Program. Later, CBP added the Air and Marine Operations Division 

from U.S. Immigration and Customs Enforcement, and most recently, select functions of DHS’ former U.S. 

Visitor and Immigration Status Indicator Technology (US-VISIT). As the resulting federal law enforcement 

agency, CBP provides far greater operational capability than the sum of its parts.

Over the past 12 years, CBP’s greatest strength has come from its diverse workforce with a breadth of 

experiences. CBP plays a crucial role in supporting its interdepartmental partners and the President’s 

National Security Strategy by safeguarding and managing America’s borders, maintaining domain 

awareness to prevent terrorist attacks, intercepting malicious actors and materials, and enforcing U.S. laws 

at our borders. CBP develops partnerships with public and private sectors and the international community 

to enhance its responsiveness and unwavering commitment to safety, security, and prosperity.

CBP’s culture is a reflection of its collective history, which is captured in our proclaimed values of 

vigilance, service to country, and integrity. These core values unify the individual histories and cultures 

across the Agency. They drive a shared purpose by uniting the beliefs and behaviors of all CBP employees. 

CBP uses these core values to promote the health and strength of its culture to ensure unity and mission 

success. 

CBP’s Mission

We are the guardians of our Nation’s borders. We are America’s frontline. We 

safeguard the American homeland at and between our borders. 

We protect the American public against terrorists and the instruments of terror. 

We steadfastly enforce the laws of the United States while fostering our Nation’s 

economic security through lawful international trade and travel. 

We serve the American public with vigilance, integrity, and professionalism.

CBP’s approximate 60,000 employees manage, control, and protect the Nation’s borders at and between 

328 ports of entry. CBP is responsible for protecting more than 5,000 miles of border with Canada, 

1,900 miles of border with Mexico, and 95,000 miles of shoreline. While CBP’s missions are complex 

and diverse, the principal operational requirements can be summarized in three distinct and mutually 

supporting themes:

 Protect the American people; 

 Protect the national economy; and 

 Safeguard and manage the U.S. air, land, and maritime borders. 

The men and women of CBP pursue these mission themes every day as they safeguard America at its 

borders with vigilance, selfless service, and unyielding integrity.

Overview of CBP
2014 Performance and Accountability Report • U.S. Customs and Border Protection 7

CBP’s Vision

To serve as the premier law enforcement agency enhancing the Nation’s safety, security, 

and prosperity through collaboration, innovation, and integration.

CBP aspires to be a global leader in promoting strong security and trade partnerships that foster a safe, 

secure, and prosperous America and global community. Through an unyielding commitment to safeguard 

America’s borders while enhancing global economic competitiveness, CBP’s vision advances the following 

strategic themes:

 Collaboration - CBP’s complex mission requires it to serve as a global leader in providing border 

security and expanding strategic partnerships. Improved collaboration throughout CBP and with 

its stakeholders provides a shared sense of purpose, enhanced understanding of the operating 

environment, increased trust, and complementary engagement.

 Innovation - CBP must remain innovative to continually advance and transform the Agency 

into a more agile and adaptable organization. By understanding the evolving global challenges 

and opportunities in trade, security, and immigration, CBP leverages science, technology, and 

technological innovation to ensure optimal performance.

 Integration – CBP must develop a seamless global network to integrate border enforcement 

capabilities within a constantly evolving landscape. A unified CBP with a shared identity and culture 

promotes a fully-integrated, agile, and adaptable workforce. Integration enables CBP to better leverage 

enforcement resources through national “whole of government” and international “unity of effort” 

approaches.

Overview of CBP
8 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP Statistical Highlights FY 2011 -- 2014

FY 2011 FY 2012 FY 2013 FY 2014

Total employees 59,820 60,668 59,969 59,544

Total revenue1 37.2 billion 39.4 billion 40.9 billion 43.5 billion

Total assets 16.2 billion 15.9 billion 15.5 billion 16.2 billion

Total net position 9.7 billion 9.7 billion 9.4 billion 9.5 billion

Total net cost of operations 12.0 billion 12.3 billion 12.6 billion 12.9 billion

Total budgetary resources 17.0 billion 17.2 billion 16.2 billion 17.3 billion

Ports of entry 329 329 328 328

Preclearance locations 15 15 15 16

Border Patrol sectors 20 20 20 20

Air units 46 46 43 41

Marine units 71 71 71 71

Trade entries processed 29.5 million 30.4 million 30.4 million 31.6 million

Illegal narcotics seized2 3.1 million 

pounds

2.8 million 

pounds

2.8 million 

pounds

2.5 million 

pounds

Illegal alien apprehensions 

between ports of entry 340,252 364,768 420,789 486,651

Inadmissible aliens interdicted at ports of entry 211,483 195,865 204,905 223,712

Pedestrians and passengers 

processed 340 million 351 million 362 million 375 million

Conveyances processed 104 million 107 million 110 million 113 million

Aircraft passengers processed 94 million 98 million 102 million 107 million

Prohibited plant and animal 

materials seized at ports of 

entry 

1,682,881 1,576,343 1,603,944 1,623,294

Agricultural plants and pests 

intercepted at ports of entry 177,299 170,967 161,050 155,247

CBP prevents the illegal movement of people and contraband throughout 

U.S. airspace, approximately 6,900 miles of land border and, in partnership 

with the U.S. Coast Guard, approximately 95,000 miles of shoreline. 

CBP safeguards the Nation’s air, land, and maritime borders and informs CBP operational 

elements of the threats, challenges, opportunities, and capabilities within border regions. 

1 Includes custodial and entity revenue

2 Represents narcotics held by CBP until disposal or destruction

Statistical Highlights
2014 Performance and Accountability Report • U.S. Customs and Border Protection 9

CBP Organization

Executive Director

Office of Policy 

and Planning

Executive Director

Privacy and Diversity 

Office

Assistant 

Commissioner

Office of Field 

Operations

Chief

Office of Border Patrol

Assistant 

Commissioner

Office of Air and Marine

Assistant 

Commissioner

Office of Intelligence 

and Investigative Liaison

Senior Advisor

Office of 

Trade Relations

Director

Office of the 

Executive Secretariat

Office of 

Chief Counsel

Chief of Staff

Deputy Chief 

of Staff

Assistant 

Commissioner

Office of International 

Affairs

Assistant 

Commissioner

Office of International 

Trade

Assistant 

Commissioner

Office of 

Congressional Affairs

Assistant 

Commissioner

Office of Administration

Assistant 

Commissioner

Office of Human 

Resources 

Management

Assistant 

Commissioner

Office of 

Internal Affairs

Assistant 

Commissioner

Office of Public Affairs

Assistant 

Commissioner

Office of Training 

and Development

Assistant Commissioner

Office of Technology 

Innovation and 

Acquisition

Assistant Commissioner

Office of Information and 

Technology

Executive Director

Joint Operations 

Directorate

Principal Executive

Office of 

Strategic Integration

Director

State, Local, and 

Tribal Liaison Office

Principal Executive

Office of Program 

Development

Commissioner

Deputy 

Commissioner

CBP Organization
10 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP Offices

Headquarters

Office of the Commissioner: The Commissioner is responsible for securing, managing, and controlling 

the Nation’s borders by advancing CBP’s mission by preventing terrorists and terrorist weapons from 

entering the U.S. while facilitating legitimate trade and travel. 

Deputy Commissioner: The Deputy Commissioner provides leadership and executive-level direction 

on CBP’s day-to-day operations, including oversight of Agency initiatives that facilitate the international 

movement of legitimate, low-risk goods and travelers, while promoting effective border security. 

Chief of Staff (COS): COS serves as the direct liaison to DHS for all Agency issues. COS assists the Office of 

the Commissioner in formulating and implementing policies through coordination with other CBP office 

components, DHS, and other government agencies. COS provides advice and counsel to the Commissioner 

in defining priorities to accomplish CBP mission and goals. 

Office of Chief Counsel (OCC): OCC serves as the chief legal officer of CBP and reports to the General 

Counsel of DHS. The Chief Counsel serves as the Ethics Officer for the Agency and is the principal legal 

advisor to the CBP Commissioner. OCC provides legal advice to and legal representation of CBP personnel 

in matters relating to CBP activities and functions.

Office of Program Development (OPD): OPD is responsible for transitioning CBP from a budgetcentric process to a planning and programming process that is driven by goals and objectives. OPD was 

established in FY 2011 and is responsible for integrating and executing the planning, programming, 

budgeting, and accountability process within CBP. This includes: establishing repeatable processes and 

structures; establishing priorities and capabilities required to achieve a strategy; making informed, crosscutting operational and resource decisions consistent with DHS and Commissioner priorities and goals; 

increasing transparency through a more detailed, focused budget; and performing and monitoring the 

achievement of goals and spending plans. 

Office of Strategic Integration (OSI): OSI facilitates the development of a mature strategic-integration 

culture across CBP and among all its stakeholders, both internal and external. OSI was established in FY 

2011 and manages the integration of CBP’s portfolio of strategies, maximizing value, balance in approach, 

alignment to business strategy, and balance in resource requirements.

Privacy and Diversity Office (PDO): PDO develops and administers all CBP programs and activities 

necessary to comply with the Privacy Act of 1974, the Freedom of Information Act (FOIA), Prison 

Rape Elimination Act, and with all applicable federal anti-discrimination laws, civil rights and liberties, 

regulations, and policies necessary to facilitate lawful travel and trade across U.S. borders, while ensuring 

national security and economic prosperity. 

Office of State, Local, and Tribal Liaison (SLT): SLT advises the Commissioner, Deputy Commissioner, 

and program offices regarding the impact of CBP policies and initiatives on state and local stakeholders. 

SLT also acts as the primary conduit for information to, and guidance from, the DHS Office of 

Intergovernmental Affairs. SLT informs state and local stakeholders of current and proposed CBP 

CBP Organization
2014 Performance and Accountability Report • U.S. Customs and Border Protection 11

programs, assists these stakeholders in addressing concerns with CBP programs, and assists in building and 

maintaining partnerships between CBP and state and local governments. 

Office of Policy and Planning (OPP): OPP directly supports the Commissioner and his principal staff 

officers through deliberate and rapid planning processes to fully inform and influence CBP policies, 

strategies, integrated planning, and decision support. OPP works closely with the Commissioner, CBP 

leadership, homeland security partners and stakeholders in defining and advancing agency priorities 

through the development, review, and implementation of key policy and planning initiatives. The OPP 

staff facilitates and coordinates the Agency’s 

strategic, operational, and institutional 

planning and integrates processes. OPP 

promotes analytic rigor, strategic foresight, 

and integrated risk management to empower 

CBP leadership to make the best informed 

decisions for safety, security, and prosperity. 

Office of Trade Relations (OTR): OTR 

manages CBP’s outreach and communications 

with the international trade community. OTR 

ensures that the trade community and the 

public understand that trade is an integral 

part of CBP’s mission to make America safer, 

stronger, more prosperous, and economically 

competitive. OTR organizes and presents 

formal CBP outreach including CBP’s annual 

trade symposiums, monthly trade day meetings, trade roundtable meetings, and webinars. OTR manages 

the CBP Advisory Committee on Commercial Operations, a congressionally mandated trade advisory group, 

and serves as the designated regulatory fairness representative for the Agency, promoting compliance with 

the Small Business Regulatory Enforcement Fairness Act. 

Joint Operations Directorate (JOD): JOD serves as the CBP operational information conduit for the 

Commissioner, Deputy Commissioner, and component leadership, and supports leadership’s ability to 

make agency-wide decisions. JOD evolves to meet the needs of CBP by providing incident management 

and reporting, and engaging in interagency collaboration efforts and field coordination. This includes the 

Commissioner’s Situation Room, the centralized CBP entity that collects all significant incident reports from 

all CBP field components. The Situation Room also acts as the focal point for all calls coming into the CBP 

Washington, D.C., headquarters and serves as the focal point for outgoing messaging to CBP’s national and 

international components.

Office of Executive Secretariat (OES): OES ensures appropriate and expeditious action on all requests for 

information, executive correspondence, and official memoranda addressed to the Commissioner and other 

CBP and DHS senior officials. OES provides direct support to the Commissioner and Deputy Commissioner, 

as well as related support to leadership and management across the agency.

The Committee on Commerical Operations of CBP 

meets to discuss trade issues.

CBP Organization
12 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP’s component organizations collaborate and cooperate to achieve the Agency’s mission.

Component Organizations and Field Structure 

CBP is organized into 14 separate offices, each of which report directly to the Commissioner. The mission 

of each office is described briefly below: 

Office of Field Operations (OFO): OFO enforces customs, immigration, and agriculture laws and 

regulations at U.S. borders and has the primary responsibility for preventing terrorists and their weapons 

from entering the U.S. at ports of entry. OFO maintains programs at 20 field operation offices; 328 ports 

of entry; 16 preclearance stations in Canada, the Caribbean, Ireland, and the United Arab Emirates; and 60 

Container Security Initiative (CSI) ports worldwide. OFO oversees the enforcement of laws and regulations 

while ensuring the safe and efficient flow of goods and people through ports of entry.

Office of Border Patrol (OBP): OBP serves as the CBP law enforcement organization with the primary 

responsibility of preventing terrorists, weapons of terrorism, illegal aliens, drugs, and those who smuggle 

them, from entering the U.S. between ports of entry. Some of the major activities include maintaining 

traffic checkpoints along highways leading from border areas, conducting city patrol and transportation 

checks, and anti-smuggling investigations. OBP is organized into 20 sectors along the southwestern, 

northern, and coastal areas of the U.S.

Office of Air and Marine (OAM): OAM protects the American people and critical infrastructure through 

the coordinated use of integrated air and marine forces. OAM is the world’s largest aviation and maritime 

law enforcement organization, with 1,200 federal agents, more than 250 aircraft, and more than 280 

CBP Organization
2014 Performance and Accountability Report • U.S. Customs and Border Protection 13

marine vessels operating from 112 locations throughout the U.S. and Puerto Rico. OAM detects, interdicts, 

and prevents acts of terrorism and the unlawful movement of people, illegal drugs, and other contraband 

toward or across U.S. borders. OAM further supports DHS missions such as the response to and recovery 

from natural disasters and terrorism. 

Office of Intelligence and Investigative Liaison (OIIL): OIIL develops, coordinates, and implements 

intelligence capabilities to support CBP’s mission to secure America’s borders while facilitating legitimate 

trade and travel. OIIL integrates CBP’s diverse intelligence capabilities into a single cohesive intelligence 

enterprise. OIIL supports CBP’s mission through a multi-layered approach, which includes collection and 

analysis of advance traveler and cargo information, use of enhanced law enforcement technical collection 

capabilities, timely analysis of intelligence and information, and establishing intelligence-sharing 

relationships with federal, state, local, and tribal agencies and intelligence agencies.

Office of International Affairs (INA): INA coordinates and supports CBP’s foreign initiatives, 

programs, and activities. This includes establishing partnerships with U.S. government agencies, foreign 

administrations, and international organizations. Through its 32 Attaché and 6 Advisory office locations, 

INA coordinates CBP’s international engagements by implementing programs and initiatives that promote 

global best practices in border enforcement and capacity building.

Office of International Trade (OT): OT provides unified strategic direction for trade policy and program 

development. OT directs national enforcement responses and takes punitive actions against companies 

participating in predatory trade practices, including textile transshipment and intellectual property 

rights infringement. OT directs risk-based investigation, detection, and prevention programs to identify 

contaminated agricultural imports that present health or safety risks, and products requiring protection 

from unfair trade practices. OT issues CBP regulations, binding rulings and decisions, compliance 

publications, and offers training and outreach on trade laws and regulations. 

Office of Congressional Affairs (OCA): OCA coordinates all CBP congressional and legislative activities 

to ensure that the full range of policy, operational, technical, and programmatic aspects are appropriately 

considered. These functions include tasks performed in the congressional arena, relationships with 

Members of Congress and their staffs, and requests for information, briefings, meetings, hearings, tours, 

and other forms of assistance received from Congress. 

Office of Administration (OA) and Chief Financial Officer (CFO): OA and the CFO oversee all financial 

operations, procurement, asset management, facilities management, and budget activities within CBP. 

OA is responsible for administering the $13.9 billion CBP annual budget for law enforcement and trade 

operations, and processing collections of $43.5 billion in annual custodial and entity revenue in FY 2014. 

OA administers all financial management activities delineated under the CFO Act of 1990, including 

accounting, budgeting, procurement, asset management, financial systems, and financial management.

Office of Human Resources Management (HRM): HRM manages a centralized human resources program 

for all CBP employees nationwide and overseas. HRM supervises all matters involving human resources, 

including organizational structure, staffing, compensation administration, benefits, workplace safety, 

personnel actions, labor relations, and employee relations. HRM also assists employees with recruitment 

services, retention support, benefits information, and employee health and wellness programs. 

CBP Organization
14 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Office of Information and Technology (OIT) and Chief Information Officer (CIO): OIT and the 

CIO provide information, services, and technology solutions to secure the border, prevent the entry 

of terrorists or terrorist weapons, and facilitate legitimate trade and travel. OIT operates a worldwide, 

round-the-clock, secure, stable, and high-performance IT infrastructure, while supporting tactical 

communications, scientific solutions, forensic services, and CBP’s IT strategies. OIT personnel manage 

all computers and related resources, including all operational aspects of cybersecurity. OIT establishes 

the technical requirements for system interfaces between CBP, trade groups, and government agencies 

and manages automated import processing and systems development. OIT scientists operate CBP field 

laboratories, satellite laboratories, and technical centers providing state-of-the-art scientific commodity 

analysis, technical advice, forensic analysis (including digital), weapons of mass destruction support, and 

other scientific services.

Office of Internal Affairs (IA): IA serves as the oversight authority for all aspects of CBP operations, 

personnel and facilities. IA is responsible for ensuring compliance with all CBP-wide programs and 

policies relating to corruption, misconduct, or mismanagement and for executing the internal security and 

integrity awareness programs. Through the national headquarters in Washington, D.C., and strategically 

located regional field offices, IA screens potential CBP employees for suitability; conducts polygraph 

examinations for law enforcement applicants; educates employees concerning ethical standards and 

integrity responsibilities; maintains a robust investigative capability to investigate allegations of employee 

corruption; evaluates physical security threats to CBP employees, facilities, and sensitive information; and 

executes the counterintelligence and insider threat programs.

Office of Public Affairs (OPA): OPA communicates to external and internal audiences to build awareness 

of and support for CBP roles, missions and people. Audiences include the American public, foreign 

nationals who conduct business in the U.S., international trade entities, the travel and trade industry, and 

travelers who cross U.S. borders. OPA manages the CBP Information Center, a call center that receives 

web, email and telephone inquiries from travelers and traders. OPA manages media outreach and 

events, public awareness campaigns, video, photography, and social media and publications including 

Frontline, a monthly multimedia online publication. OPA is responsible for the design, layout and content 

management of the Agency’s public facing website CBP.gov; oversees internal communications for the CBP 

workforce; and manages internal communication platforms including CBPin60, CBPostmaster, CBPnet, and 

other internal information channels. 

Office of Technology Innovation and Acquisition (OTIA): OTIA focuses CBP’s applied technology efforts 

on the Agency mission and integrates them across CBP. OTIA strengthens CBP’s expertise and effectiveness 

in acquisition and management of contractor-delivered products and services. The OTIA Assistant 

Commissioner also serves as CBP’s component acquisition executive, overseeing all CBP acquisition 

programs to ensure that they comply with DHS and CBP regulations and policies. OTIA is a center of 

expertise for program management, acquisition, and innovation.

Office of Training and Development (OTD): OTD leads and guides all CBP training programs for the 

entire workforce. OTD ensures that all training supports the CBP mission and strategic goals and prepares 

the Agency’s workforce to meet the challenges of mission-critical operations. OTD establishes CBP training 

standards and policies; develops, delivers, and evaluates training; and procures the necessary tools for these 

trainings. OTD also develops, implements, and oversees the CBP use of force programs and policies.

CBP Organization
2014 Performance and Accountability Report • U.S. Customs and Border Protection 15

CBP’s Integrated Planning Framework

CBP established an integrated planning framework to ensure a more effective and efficient organization. 

This framework increases collaboration, enables mission-driven planning, and better aligns mission goals 

with resource allocation decisions. CBP’s integrated planning framework has redefined the way decision 

makers, planners, and managers approach problems by providing an agency-wide structure within which 

all CBP planning is accomplished.

Summarized in the table below, CBP’s integrated planning framework spans four tiers of planning: 

strategic, functional, operational, and institutional planning. Each tier provides a different view of CBP’s 

functions, capabilities, and resources, to develop sound, collaborative recommendations to decision 

makers.

Planning Tier Purpose Issues Addressed Deliverables Timeframe

Strategic (Riskinformed)

To understand the 

future operating 

environment and set 

clear direction for CBP 

mission execution and 

support. 

Defines CBP’s vision, 

purpose, goals and 

objectives, culture 

and ethos, and value 

proposition to national 

safety, security, and 

prosperity. 

CBP Strategic Plan, 

operational priorities 

and guidance for 

specified strategic 

outcomes and outputs. 

~5-15 

years

Functional 

(Capabilitiesbased)

To identify capability 

needs and prioritize 

resources, investments, 

and acquisition 

requirements across 

shared mission space.

Analysis and 

assessment of capability 

needs to meet strategic 

outcomes using 

logical groupings of 

capabilities. 

Capabilities-based 

portfolio plans to 

promote and align 

programs, activities, 

and investments to 

priorities. 

~2-7 years

Operational 

(Effects-based)

To examine and 

prescribe how the 

CBP strategy will 

be achieved by CBP 

offices and its selected 

partners. 

Mission specific 

workflow, activities, 

and tasks to deliver 

strategic objectives and 

goals. 

Concept Plans, 

Operational Plans, 

Campaign Plans, 

Supporting Plans, etc. 

~3-24 

months

Institutional 

(Enterprisewide)

To promote sound 

management and 

effective business 

processes to ensure 

mission success 

and organizational 

efficiencies. 

CBP governance, 

oversight, business 

processes, and 

performance 

management. 

Organizational 

Structure requirements, 

communications 

strategies, business 

process mapping, and 

resource and asset 

management. 

Any

CBP’s Integrated Planning Framework to align mission goals with resource allocation.

CBP’s Integrated Planning Framework
16 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP’s Strategic Goals

Four strategic goals guide CBP’s actions to achieve its mission. Under each strategic goal are objectives 

which are sub-goals taken to achieve the goal and meet operational priorities. The table below lists CBP’s 

strategic goals and objectives that guided its operations in FY 2014. 

Mission Statement: To safeguard America’s borders, thereby protecting the public from dangerous 

people and materials while enhancing the Nation’s global economic competitiveness by enabling 

legitimate trade and travel.

Goal 1 - Advance National Security and Public Safety

Objective A – Understand the threat environment

Objective B – Enhance procedures and partnerships that will facilitate interagency and international 

border enforcement coordination

Objective C – Strengthen global supply chain security

Goal 2 - Enhance U.S. Economic Competitiveness by Enabling Lawful Trade and Travel 

Objective A – Reduce costs for the U.S. government and the trade and travel communities by 

streamlining processes in collaboration with public and private sector partners

Objective B – Promote harmonization throughout ports of entry and other U.S. Government agencies

Objective C – Expand risk-segmentation through advanced technology to enable low-risk trade and 

travel

Goal 3 - Advance Comprehensive Border Security and Management 

Objective A – Increase situational awareness of the air, land and maritime borders

Objective B – Detect, interdict and disrupt illegal cross-border activities

Objective C – Strengthen comprehensive trade enforcement

Objective D – Strengthen processes to conduct outbound enforcement and interdiction of travelers 

and cargo

Objective E – Advance a comprehensive, predictive targeting strategy to identify threats as early as 

possible

Goal 4 - Promote Organizational Integration, Innovation and Agility 

Objective A – Mature CBP’s strategic resource management framework

Objective B – Optimize CBP’s organizational structure to ensure agile and efficient operations

Objective C – Strengthen CBP’s culture of unwavering integrity and professional growth

Objective D – Advance CBP mission effectiveness through transformative technologies and innovative 

business practices

CBP’s strategic goals and objectives (sub-goals) that drive our Integrated Planning Framework.

CBP uses various mission strategies (i.e. programs and initiatives) within each objective to achieve its 

strategic goals, and ultimately its mission. Strategies include programs, technologies, and partnerships, 

each with specific performance measures to determine how well the Agency is performing in achieving 

its strategic goals and objectives. CBP develops performance measure in response to DHS, GAO, and Office 

of Inspector General (OIG) recommendations, as well as based on internal CBP management. Performance 

measures inform decision makers on where they should place resources to ensure program effectiveness, 

results of which are reported to the OMB and DHS. 

CBP’s Strategic Goals
2014 Performance and Accountability Report • U.S. Customs and Border Protection 17

The Future Years Homeland Security Program (FYHSP) outlines the five-year plan for achieving the 

long-term performance goals for specific DHS programs. Each strategy aligns with a DHS departmentlevel strategic objective, as outlined in the DHS Strategic Plan for FY 2012-2016, and with measures to 

demonstrate the strategy’s progress in meeting that objective. FYHSP captures this information and records 

performance measures, targets, and annual milestones. This FYHSP information is presented to Congress 

each year. 

Major Mission Strategies, Programs, and Initiatives

CBP’s major mission programs and strategies and are linked to CBP’s Vision and Strategy 2020 Strategic 

Goals, DHS Strategic Plan, DHS Quadrennial Homeland Security Review (QHSR), FYHSP, and other 

guidance and resources, illustrated in the figure below.. Linking strategies and priorities to resources for CBP

Annual

Annual

Annual

Annual

Annual

Annual

Annual

By Administration

National

Security

Strategy

Future Year

Homeland

Security Plan

Integrated Planning Guidance

Quadrennial

Homeland

Security

Review

Quadrennial

As required

As required

Periodic

CBP Resource

Allocation Plan

Annual

President of the United States

– National Security Staff (White House)

Secretary of Homeland Security

Commissioner of CBP

Reviewed & approved by ORRB

CBP Office Leadership (AC / XDs)

APPROVAL AUTHORITIES

CBP’s strategies are linked to guidance and other resources.

The following information explains CBP’s strategies organized under the Integrated Planning Framework 

(strategic goals and objectives) as outlined in CBP’s Vision and Strategy 2020.

CBP’s Strategic Goals
18 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 1 - Advance National Security and Public Safety

Support the President’s National Security Strategy and counterterrorism efforts, promote the national 

elements of power (to include: diplomatic, information, economic, financial, intelligence, and law 

enforcement), contribute to a “whole of government” approach to national security, and promote the 

safety of the American people.

Overview: The U.S. faces diverse security challenges in an increasingly borderless environment with 

interconnected and codependent communities, economies, and infrastructures. CBP leverages and 

continues to develop a cohesive global network that inspires integration, cooperation, and comprehensive 

actions to ensure its physical border is the last line of defense, not the first. CBP persistently evolves its 

capabilities to combat terrorism and extremism; stop the spread of weapons of mass destruction; sustain 

U.S. economic growth; define, prioritize, and disrupt transnational criminal organizations (TCOs); and 

prevent the spread of agricultural pests and diseases.

CBP accomplishes these priorities through a risk-based approach that uses actionable information. 

Recognizing that no one nation, agency, or locality can meet global challenges alone, CBP collaborates 

with domestic and international partners to better understand the threat environment and strengthen riskinformed, intelligence-driven law enforcement efforts.

Objectives to Accomplish Goal 1 - Advance National Security and Public Safety 

 Objective A – Understand the threat environment

 Objective B – Enhance procedures and partnerships that will facilitate interagency and international 

border enforcement coordination

 Objective C – Strengthen global supply chain security
2014 Performance and Accountability Report • U.S. Customs and Border Protection 19

Understand the Threat Environment

CBP uses a whole of government approach to enhance its ability to collect, analyze, and appropriately share 

intelligence and information, including timely warnings of potential threats and proactive enforcement 

opportunities to better understand the threat environment. CBP strengthens partnerships with federal, 

state, local, tribal, territorial, and international stakeholders to enhance intelligence and information 

sharing. This is accomplished, in part, by developing common intelligence pictures – a common 

understanding of terrorist and criminal threats including: their tactics, techniques, and procedures; their 

capabilities and vulnerabilities; and indicators of their potential courses of action. 

Central to this objective is the CBP Law Enforcement Intelligence Enterprise, a powerful border security 

partnership that connects law enforcement and intelligence communities for an enhanced intelligence and 

targeting strategy to predict threats and better understand the threat environment. This enterprise detects 

threats beyond our borders, integrates and coordinates intelligence and law enforcement capabilities, and 

establishes stronger border-centric partnerships to respond to the criminal networks.

Strategies to Understand the Threat Environment 

National Targeting Center (NTC): The NTC identifies high-risk people and cargo before they cross 

U.S. borders, and serves as the single point of reference for CBP antiterrorism efforts. NTC’s functions 

are divided into two areas: NTC-Passenger (NTC-P) and NTC-Cargo (NTC-C). NTC analysts, called 

targeters, assess large amounts of data about people, cargo, ports, and flights around the world. Targeters 

work closely with CBP field personnel and on-site staff from the U.S. Coast Guard, the Federal Bureau of 

Investigation (FBI), Transportation Security Administration (TSA), and other agencies. NTC-P targeters 

collaborate with DHS intelligence officers and numerous law enforcement organizations to develop 

passenger targeting algorithms. NTC-C targeters and DHS intelligence staff jointly refine rule sets for rating 

cargo risks. 

Two days after planting a car bomb in New York’s Times Square, the 

terrorist boarded a plane for Dubai at JFK International Airport. The National 

Targeting Center (NTC) discovered him on the no-fly list, and CBP officers 

arrested the terrorist on May 3, 2010, 53 hours after the attempted attack.

National Targeting Center – Passenger (NTC-P): NTC-P, located in Reston, Virginia, identifies 

people who pose potential threats before departure by screening, reviewing and prioritizing passengers 

across international transportation. NTC-P screens inbound and outbound commercial airline passengers, 

cruise ship passengers and crews, and cargo vessel crews to spot potential high-risk individuals. NTC-P 

also screens all visa and the Electronic System for Travel Authorizations (ESTA) applicants. NTC-P provides 

24/7 antiterrorism tactical targeting and analytical research using automated enforcement data processsing 

systems, including the Automated Targeting System-Passenger (ATS-P) and the Targeting Framework. These 

systems screen passenger manifests and related information prior to U.S. arrival. NTC-P adjudicates all 

U.S. Department of Defense (DoD) biometric matches to derogatory information; coordinates with U.S. 

Department of State and U.S. Immigration and Customs Enforcement (ICE) to automate vetting of U.S. 

non-immigrant visa application information prior to the applicant’s interview or visa issuance; supports 

the Immigration Advisory Program (IAP) and Joint Security Program (JSP) through targeting; improves 
20 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

the accuracy and integrity of the Terrorist Watch List in collaboration with the National Counterterrorism 

Center and the Terrorist Screening Center; and vets valid U.S. nonimmigrant and immigrant visas to 

identify changes in a traveler’s visa status in near real-time.

National Targeting Center – Cargo (NTC-C): NTC-C, located in Herndon, Virginia, identifies highrisk cargo that pose potential threats by targeting and coordinating examinations of high-risk shipments 

across all modes of transportation. This includes 

cargo that might conceal ingredients for weapons 

of mass destruction, chemical precursors of illegal 

drugs, or conventional weapons or explosives. 

NTC-C uses automated enforcement data 

processing systems that detect high-risk cargo 

inbound and outbound, including the Automated 

Targeting System, the Automated Export System, 

the Targeting Framework, and Unified Passenger 

(UPAX). NTC-C supports CBP’s ports of entry, 

field offices, and 60 foreign locations. NTC-C 

partners with numerous federal agencies to 

identify and examine cargo shipments that pose 

potential threats. NTC-C supports CBP field 

operations, partner government agencies, and 

international partners with tailored programs 

including: 

NTC targeters identify high risk people and cargo that 

pose a threat to national security.

 Air Cargo Advance Screening (ACAS) – A collaborative effort between CBP, TSA, and air cargo 

carriers to screen inbound air cargo prior to loading onboard aircraft. In FY 2015, CBP plans to 

complete the regulatory requirements to render ACAS mandatory for all cargo destined for the U.S. 

 Container Security Initiative (CSI) Targeting Support – A program to establish security criteria for 

identifying high-risk containers. This includes the use of non-intrusive inspection (NII) and radiation 

detection technology to screen high-risk containers before they are shipped to U.S. ports. NTC-C 

provides cargo targeting support for all 60 overseas CSI locations.

 Outbound Targeting – A strategy to target export shipments, support counter-proliferation efforts, 

and disrupt transnational criminal organizations.

 International Cargo Targeting Fellowship Program – A collaborative effort with international 

partners to identify, prevent, deter, disrupt, and manage risks in the cargo environment through 

dynamic information sharing and by hosting foreign customs officials at the NTC-C. 

 Terrorist Screening Database Unit – This unit uses NTC-P information on Terrorist Screening 

Database and Violent Gang and Terrorist Organization File matches encountered at CBP ports of entry 

to identify cargo shipments and businesses associated to these individuals. 

 Tactical Trade Targeting Unit – This unit ensures coordination among CBP’s tactical trade assets and 

Homeland Security Investigations to increase interdictions domestically and abroad.

 Rail Targeting Unit – A collaborative effort between CBP and representatives of the rail freight 

industry to target and analyze rail shipments at a satellite office location in El Paso, Texas.

CBP now displays the Automatic Identification System (AIS) Globe interface on a wall at the NTC-C, 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 21

providing a “big map” airspace viewer and persons of interest on a map. The AIS Globe interface exploits 

multiple formats including charts, graphs, heat maps, and time series, which help to identify patterns and 

provide graphical information to users in the field. In FY 2014, CBP’s OIT updated several capabilities, 

including the addition of Google Features, which allows the system to show roads, daylight/nighttime, 

and 3D buildings.

Enhance Procedures and Partnerships that will Facilitate Interagency and 

International Border Enforcement Coordination

CBP aggressively champions strategic partnerships that facilitate integrated, risk-informed, intelligencedriven law enforcement operations, using a whole of government and international unity of effort 

approaches. Because no single nation or agency has the authority or resources to unilaterally eradicate 

cross-border violations, CBP strengthens domestic and international partnerships to provide greater 

synergy, reduce unintended redundancies, improve communications, and serve as a force multiplier. A 

critical element of this is integrating intelligence, surveillance, and reconnaissance capabilities into law 

enforcement operations that require interagency and international coordination. This includes ensuring all 

partners have access to the same operational information and that CBP has information on other agencies’ 

activities, initiatives and resources. 

CBP serves in operational and advisory capacities to coordinate resources, and identify and stop threats 

before they reach our borders. This unifies efforts in detecting, interdicting, deterring, and disrupting 

terrorist, TCOs and transnational criminal networks, and cross-border criminal activity. CBP also helps 

international partners develop their own capacity to create a strong and resilient enforcement network.

Strategies to Enhance Procedures and Partnerships that will Facilitate 

Interagency and International Border Enforcement Coordination 

Extended Border Operations: Extended border operations allow CBP to increase the effectiveness of 

interdiction efforts outside U.S. borders. CBP’s OAM P-3 aircraft are an integral part of counternarcotic 

missions in source and transit zones. In FY 2014, OAM expanded Guardian Unmanned Aircraft System 

(UAS) operations in the drug source, transit, and arrival zones in cooperation with U.S. Northern 

Command, U.S. Southern Command, and Joint Interagency Task Force-South. OAM deployed the Guardian 

system to operate from forward operating locations in El Salvador, Honduras, and the Dominican Republic 

and will continue to tactically expand the footprint to Curacao. 

P-3 aircraft and the Guardian UAS are an integral part of CBP’s OAM operations.
22 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Air and Marine Operations Center (AMOC): OAM’s AMOC is a state-of-the-art law enforcement 

Domain Awareness center located at March Air Reserve Base in Riverside, California. AMOC is the 

Nation’s only federal law enforcement center tasked to coordinate interdiction operations in the Western 

Hemisphere. AMOC coordinates interdiction operations and provides detection, monitoring, sorting, 

tracking, and coordination of law enforcement response to suspicious airborne and maritime activity. To 

expand air domain awareness beyond the U.S. physical borders, AMOC’s hemispheric approach integrates 

multiple domestic and foreign radars, which feeds into the Air and Marine Operations Surveillance System 

architecture to fill coverage gaps and increase the OAM’s ability to detect, track and interdict aircraft 

involved in illicit activity. 

In FY 2014, CBP expanded its operational partnerships with Mexico and 

jointly conducted interdictions and other law enforcement operations. AMOC 

hosts liaisons from the Secretaría de la Defensa Nacional, Policia Federal, 

and Procuraduria General de la República. AMOC uses radar feeds from 

the Mexican Airspace Navigation Services, the Mexican equivalent of the Federal Aviation 

Administration, into the Air and Marine Operations Surveillance System. OAM coordinated with 

Mexico on foreign operations group flights to expand operations in the maritime environment, 

specifically along the Pacific coast where there is significant illicit drug trafficking. The concept 

of operations utilizes P-3 and UAS assets, enhances situational awareness in the maritime 

approaches to Mexico’s Pacific coast, and improves information sharing with Mexico regarding 

inbound traffic that could potentially carry precursor chemicals and other illegal contraband.

Border Community Liaison Program: This program enhances CBP interaction with communities 

and promotes Agency understanding of community views, concerns and issues. CBP designates uniformed 

officers to improve collaboration with local border communities to help CBP’s Border Patrol and OFO 

more effectively carry out their missions. This engagement at the local level strengthens relationships and 

provides opportunities for community feedback that CBP shares with DHS and other partners. 

Under the guidance of the Border Community Liaison Program in Laredo, 

Texas, the Rewarding, Education, Attitude, and Leadership mission program 

addresses a community need to mentor at-risk youth. Students attended 

a six-week program, meeting with CBP agents and learning ways to build 

a better future. The program’s mission is to mentor youth on respect, education, leadership 

skills, teamwork, and community service. 

Regional Coordinating Mechanisms (ReCoMs): ReCoMs are collaborative law enforcement groups 

operating in the maritime domain that include Border Patrol, ICE-Homeland Security Investigations, U.S. 

Coast Guard, and other local, state, and federal law enforcement agencies. Regional ReCoMs coordinate 

maritime operations through integrated planning, information sharing, and intelligence integration. In 

FY 2014, CBP’s OAM prioritized ReCoM development to better coordinate maritime operations. OAM 

developed a comprehensive concept of operations to effectively counter the threat from pangas – open 

hulled, low-profile fishing speedboats that are difficult to spot. CBP works with federal, state, and local law 

enforcement officials along the California coast to expand detection beyond the reach of OAM patrol assets. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 23

In February 2014, CBP agents patrolling for the San Diego ReCoM stopped 

a private recreational boat in Oceanside, California with 540.5 pounds of 

methamphetamine hidden in a secret compartment. The drugs had an 

estimated street value of more than $25 million. Smugglers posing as legitimate 

recreational or commercial boaters continue to be difficult to spot especially in 

Southern California and Baja, Mexico, where boating is a way of life.

CBP’s OAM developed a concept of operations to counter the growing 

threat from pangas.

Training and Technical Assistance Programs: In FY 2014, CBP’s INA conducted multiple training 

and technical assistance programs to enhance international border security and law enforcement efforts to 

combat terrorism in Africa from groups such as Boko Haram in Nigeria, Al-Shabaab in Kenya and Somalia, 

and Al-Qaeda in the Islamic Maghreb in the Sahel. Some of these efforts include:

 International Border Interdiction Training: CBP and a delegation from Senegal, Mauritania, and Mali 

traveled to McAllen, Texas to learn about CBP’s inspectional techniques and methodologies.

 Senegal International Visitors Program: A Senegalese delegation visited Washington, D.C. and the 

Southwest border to expose African partners to CBP operations where they learned best practices, 

observed current CBP programs and processes, and engaged with CBP counterparts.

 Cameroon International Visitors Program: A Cameroon delegation visited Washington, D.C. and the 

Southwest border to learn about strategies to counter border security threats posed by Boko Haram.

 Kenya/Tanzania Targeting and Risk Management Training: CBP officials traveled to Mombasa to train 

Kenyan border security and law enforcement officials to identify high-risk goods and people and 

improve targeting capabilities.

International Capacity Building Efforts: CBP’s international capacity building efforts focus on the 

following areas: international narcotics and crime control, non-proliferation, export control and related 

border security, commercial enforcement operations, and private sector partnership programs. Each 

effort includes a border security assessment to determine the type of training and/or equipment needed 

to improve operations within the host foreign country. During FY 2014, CBP conducted 175 capacity 

building sessions for foreign partners including 15 International Law Enforcement Academy courses, and 

provided capacity building support in over 59 countries.

Success 

Story 
24 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

In FY 2014, the South Texas border experienced a surge of unaccompanied 

migrant children and family units. From May-August 2014, CBP leveraged input 

from each CBP component to coordinate the reporting of the unaccompanied 

children and families. This included activating a CBP Headquarters Emergency 

Operations Center, which maintained daily contact with CBP components to 

provide timely and consistent information to CBP executives. 

International Visitors Program: CBP hosts international partner visits to help develop capacity 

building functions and long-term sustainable competencies. CBP establishes relationships with foreign 

partners to improve worldwide border security practices, mitigate the risk of threats entering the U.S., and 

facilitate legitimate trade and travel. This program informs officials from foreign customs, immigration, 

border patrols, coast guards, and other enforcement administrations and levels of government about CBP 

enforcement, trade, and management programs. In FY 2014, CBP hosted 2,276 foreign officials from 94 

International Visitors Program countries/locations for briefings on various CBP programs. 

On June 25, 2014, the U.S. and Australia signed a Customs Strategic 

Partnership, a bilateral agreement to pursue activities to enhance our 

capabilities to disrupt illicit imports, improve compliance with U.S. and 

Australian laws, and ensure efficient services for legitimate travel and trade. 

Success 

Story 

Strengthen Global Supply Chain Security

CBP promotes the efficient flow of legitimate commerce while protecting the global supply chain from 

a diverse range of threats, including counterfeit and unsafe goods, agricultural pests and diseases, and 

fraudulent and criminal trade schemes. CBP layers its security efforts throughout the global supply 

chain to identify high-risk cargo and conveyances while facilitating the swift movement of legitimate 

trade across our borders, leading to a safer, faster, more resilient, and more economically competitive 

international trade process. CBP’s approach is aligned with the President’s National Strategy for Global 

Supply Chain Security, which calls for the protection of a global supply chain system that supports 

innovation and prosperity by securely, timely, and reliably moving goods across our borders and around 

the world. 

By coordinating with our international partners, CBP develops and maintains a more accurate picture of 

the threats and trends across the global supply chain. CBP continually gathers information about the global 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 25

supply chain to manage risk and mitigate systemic vulnerabilities to disruption and exploitation. To better 

identify high-risk shipments, CBP works closely with international and private sector partners to expand 

the advance shipping information available for commercial and national security targeting.

Strategies to Strengthen Global Supply Chain Security

Non-Intrusive Inspection (NII) Technologies: CBP uses NII technologies such as large-scale X-ray 

and gamma ray imaging systems, as well as a variety of portable and handheld technologies to detect 

contraband, e.g., narcotics and weapons, and other materials that pose potential threats. NII technologies 

allow CBP to scan a larger portion of 

inbound traffic for contraband in less time. 

CBP scans cargo containers for radioactive 

materials as they pass through land border 

ports, seaports, airports, and express 

consignment/mail courier facilities. At 

the end of FY 2014, CBP deployed NII 

technologies to air, land, and sea ports of 

entry and to Border Patrol checkpoints 

including 314 large-scale imaging systems, 

1,362 radiation portal monitors, 2,979 

radiation isotope identification devices, and 

30,305 personal radiation detectors. CBP 

used these large-scale systems in more than 

7.2 million examinations, resulting in more 

than 2,093 seizures and the interception of 

more than 249,200 lbs. of narcotics in FY 2014.

Success 

Story 

CBP NII technologies include Vehicle & Cargo Inspection 

System, a truck-mounted gamma-ray imaging system, 

and Buster, handheld device used to scan vehicles for 

hidden contraband.

In December 2013, CBP officers in Baltimore using NII technologies, discovered 

two gym bags holding nearly 128 pounds of cocaine in a shipping container of 

car parts from Colon, Panama. This was the largest cocaine seizure in Baltimore 

since 2007, with an estimated street value of $4 million. 

Approximately 80% of maritime cargo containers destined for the U.S. transit 

through CSI ports. In FY 2014, more than 11 million cargo containers arrived 

on ships and were off-loaded at U.S. seaports, representing nearly half of 

incoming U.S. trade (by value). 
26 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

In FY 2014, the Hashemite Kingdom of Jordan joined CSI, which operates 

at 60 operational ports in Europe, Asia, Africa, the Middle East, North and 

South America. The Port of Aqaba in Jordan will use near real-time remote 

imaging of a container examination process, while incorporating a live video 

transmission/feed to monitor the inspection process. “The success of CBP’s 

risked-based approach to security is dependent on the support of our partners,” said CBP 

Commissioner R. Gil Kerlikowske. “We are pleased to be continuing the success of the 

Container Security Initiative with the Kingdom of Jordan.” 

Success 

Story 

Analytical Framework for Intelligence (AFI): AFI is a system that augments CBP’s ability to gather 

and develop information about persons, events, and cargo of interest by creating an index of relevant data 

in existing operational systems. This framework provides a suite of tools to detect trends, patterns, and 

emerging threats, and identify non-obvious relationships between persons, events, and cargo to generate 

tactical, operational, and strategic law enforcement intelligence products. In FY 2014, CBP’s OIT released 

the AFI system’s latest improvements, which include performance enhancements, usability updates, new 

home-page features, new search capabilities, printing and HTML exports, and IE10 compliance.

Tasking, Operations, and Management Information System (TOMIS): TOMIS is a system that 

allows multiple branches to coordinate on an event (seizure, arrest, or any major interdiction operation) 

and then link all the participating branches’ events to each other. In FY 2014 CBP deployed new TOMIS 

capabilities, making the system available to more than 2,000 OAM personnel nationwide. This system 

allows OAM agents to process seizures and associated conveyance data and seamlessly update the Seized 

Asset and Case Tracking System. TOMIS provides greater operational visibility, situational awareness, data 

integrity, data sharing, and reduces the OAM’s dependence on mainframe applications. 

Intellectual Property Rights (IPR) Enforcement: CBP analyzes trade enforcement samples for IPR 

violations. CBP manages eight U.S. laboratories 

that provide technical advice, forensics, weapons 

of mass destruction support, and other scientific 

services to CBP and other agencies on a wide 

range of imported and exported commodities and 

border security enforcement issues. CBP’s scientific 

evidence and analysis services help protect the U.S. 

and its citizens from illegal or fraudulent products 

and criminal activities. In 2014, CBP analyzed IPR 

samples and found IPR violations in commercial 

products that included integrated circuits, 

networking devices, gaming devices, and cell 

phones of trademarks such as Cisco, Xilinx, Toshiba, 

Free Scale, Lattice, Analog Devices, Nintendo, 

Blackberry, and Apple.

Automated Targeting System (ATS): ATS is a computerized decision support tool that CBP uses to 

compare traveler, cargo, and conveyance information against law enforcement, intelligence, and other 

CBP conducts scientific activities to 

determine the origin of materials.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 27

data using risk-based targeting scenarios and assessments. ATS identifies individuals and cargo that need 

additional review in five general areas: 

1. Export of cargo

2. Import of cargo

3. Land borders

4. Air/sea borders

5. Cross-cutting view of risks across the four previous areas

ATS includes five sub-systems or modules that use slightly different data to conduct risk assessments. In FY 

2014, CBP’s OIT enhanced ATS modules as described below: 

Automated Targeting System –Anti-Terrorism (ATS-AT): This module evaluates export information, 

including information filed electronically 

through the Automated Export System (AES). 

CBP sorts, reviews for compliance, and 

scores export data so that CBP officers can 

identify exports with the greatest safety and 

security risks, such as smuggled currency, 

illegal narcotics, and other contraband. The 

ATS-AT module screens both commodity 

information on export documents and 

individuals identified on those documents. 

Automated Targeting System – Land 

(ATS-L): This module evaluates border 

crossing records as well as internal and 

external data sources for land border 

targeting. ATS-L stores vehicle registration 

and registered owner information for U.S. 

plated vehicles and biographical information 

on vehicle occupants collected during land border entry processing. In FY 2014, OIT deployed the new 

Statistical Analysis System (SAS) predictive model aimed at targeting narcotics smuggled into the country 

via the Southern land border ports of entry. Recent ATS-L seizures resulting from implementation of the 

SAS model amounted to approximately $4 million.

Targeters at NTC use ATS to assess information on 

people and products looking for potential terrorists or 

terrorist weapons.

Since the deployment of the new ATS-L predictive model across the 

Southwest border ports of entry, drug seizures have increased. Results show 

that the new model is more than five times as effective as the previous 

model. This success led CBP to deploy the new model beyond the pilot to all 

ports of entry across the Southwest border. 

Automated Targeting System – Inbound (ATS-N): This module evaluates all inbound cargo to identify 

high-risk cargo for examinations. It uses numerous rule and weight sets to analyze information from 

manifest, importer security filing, and entry data, to prioritize shipments for review and recommend 

targets. The module also screens identified individuals against lookouts and prior violations. In FY 2014, 
28 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

OIT deployed the Cargo Enforcement Reporting and Tracking System to Pharr, Texas, and Miami, Florida. 

This system minimizes manual data entry by CBP agriculture specialists for PPQ280 - the U.S. Department 

of Agriculture form for agricultural items brought into the country - and places shipments on hot lists to 

allow targeters to quickly identify shipments with national security risks.

In November 2014 at the Deconcini port of entry in Nogales, Arizona, a Mexican 

citizen applied for entry into the United 

States. ATS assisted the acting CBP 

Officer to refer the Mexican citizen to 

secondary inspection. Upon search of 

the person’s vehicle, the CBP Officer removed 16 

packages wrapped in silver bags from the vehicle. 

The SAS model provided the critical information based on vehicle information to seize 

22.15 lbs of methamphetamine.” 

Success 

Story 

Automated Targeting System – Passenger (ATS-P): This module identifies potential terrorists, 

transnational criminals, and other persons who pose a high risk of violating U.S. law. ATS-P helps CBP 

officers decide whether a passenger or crew member should receive additional screening. The ATS-P 

hierarchical system allows CBP to focus on potentially high-risk passengers by eliminating labor-intensive 

manual reviews of traveler information or lengthy interviews with every traveler.

Automated Targeting System – Targeting Framework (ATS-TF): This module searches across data 

sources in other ATS modules and allows users to initiate research activities, collaborate among analysts, 

and access past activity logs for intelligence tracking of people and entities of interest. CBP personnel 

can create ad hoc queries, integrate data from multiple sources, and show possible relationships between 

entities and data elements. In FY 2014, updates to the National Counterterrorism Center Nomination Tool 

XML files saved NTC-P users significant time that was previously spent cleaning these files; thus allowing 

them more time to focus on critical vetting of subjects with possible relationships to terrorism.

Visa Pre-Adjudication (PATRIOT): The Visa Pre-Adjudication system, known as PATRIOT, is a hot 

list that enables ICE and NTC analysts to manage visa cases in an integrated manner with other NTC hot 

lists. Hot lists are lists of people and cargo that are prioritized based on their level of risk to more quickly 

identify current and relevant information. The system provides complete vetting of each PATRIOT record 

within the Unified Passenger (UPAX) system and automatically pushes each hit to ICE’s Visa Security 

Program Tracking case management system for final DHS vetting of visa cases and recommendations for 

visa approvals. This streamlined vetting process completes all vetting within one system before making a 

final recommendation to the U.S Department of State for approval/denial of the visa application.

Unified Passenger (UPAX): UPAX merges ATS-P (targeting engine) and ATS-TF (case management 

system) into one user interface that provides better entity resolution, a streamlined vetting process and 

a consolidation of the traveler and applicant hot lists. Through increased efficiencies, automation of the 

Primary Lookout Override function, and system-to-system access to external databases, UPAX reduces the 

average vetting time for a traveler/applicant and allows for expansion of name matching algorithms.

Goal 1 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 29

Goal 2 - Enhance U.S. Economic Competitiveness by

Enabling Lawful Trade and Travel

Advance U.S. economic competitiveness and promote economic prosperity with our public,

private, and international partners.

Overview: Efficiently processing goods and people across our borders is crucial to support the Nation’s 

economy, promote job growth, and help the private sector remain competitive in an evolving global 

economy. Anticipated growth in the volume of trade and travel is accompanied by growing complexity 

in the global supply chain and international travel patterns. CBP will enhance America’s economic 

competitiveness by reducing barriers to the efficient flow of trade and travel, streamlining and unifying 

processes and procedures, and managing the volume of cargo and passengers by separating goods and 

travelers according by the level of risk they pose.

Objectives to Accomplish Goal 2 - Enhance U.S. Economic Competitiveness by 

Enabling Lawful Trade and Travel 

 Objective A – Reduce costs for the U.S. Government and the trade and travel communities by 

streamlining processes in collaboration with public and private sector partners

 Objective B – Promote harmonization throughout ports of entry and other U.S. Government agencies

 Objective C – Expand risk-segmentation through advanced technology to enable low-risk trade and 

travel

Goal 2
30 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Reduce Costs for the U.S. Government and the Trade and Travel Communities 

by Streamlining Processes in Collaboration with Public and Private Sector 

Partners

CBP continuously identifies and eliminates barriers to the flow of lawful cargo and passengers by 

collaborating with the private sector to leverage innovative technology and processes. By automating 

information collection and dissemination, CBP enhances data quality and streamlines risk-informed 

decision-making to expedite the flow of legitimate cargo and passengers. To ensure entry decisions are 

made quickly and accurately, CBP integrates systems and information databases with other U.S. agencies to 

validate visa eligibility and verify passports. 

CBP leads the “One U.S. Government” initiative with a single window for electronic submissions by trade 

and travel communities of all import, export, and transit-related shipment information. In FY 2014, CBP 

responded to Executive Order 13659 and helped establish an expanded Border Interagency Executive 

Council to develop an efficient single window system, the International Trade Data System (ITDS) by 

December 2016. ITDS will streamline the U.S. Government’s cargo import and export processes by 

integrating various reporting requirements of the partner government agencies into CBP’s ACE, freeing 

industry from the burden of submitting data to multiple government agencies. Under the BIEC, CBP and 

the other partner government agencies will also work with the private sector to leverage innovative supply 

chain solutions.

Strategies to Reduce Costs for the U.S. Government and the Trade and Travel 

Communities by Streamlining Processes in Collaboration with Public and 

Private Sector Partners 

Immigration Advisory Program (IAP) and Joint Security Program (JSP): IAP is part of CBP’s 

pre-departure strategy to prevent terrorists and improperly documented travelers from boarding U.S. 

bound commercial flights. JSP is a component of the IAP that partners CBP officers with host country 

law enforcement to disrupt terrorist travel and intercept narcotics, bulk currency, illegal migrants and 

fugitives. While IAP focuses on screening U.S. bound passengers, JSP targets travelers arriving into and 

departing from host countries, both U.S. bound and foreign-to-foreign. In FY 2014, IAP and JSP officers, 

in conjunction with NTC-P, issued 3,696 “no board” recommendations to carriers and host governments, 

which resulted in an estimated $9.2 million cost savings for CBP.

Entry/Exit Transformation (EXT) Program: This program enables CBP to process more travelers 

in less time with a higher degree of security and immigration integrity. It improves CBP and ICE 

immigration enforcement operations and enables DHS to better manage the Visa Waiver Program—a 

program administered by DHS that enables eligible citizens or nationals of designated countries to travel 

to the U.S. for tourism or business for stays of 90 days or less without first obtaining a visa. The EXT 

Program includes a holistic assessment of operational processes; an evaluation of a variety of technologies; 

testing and deploying new biometric technologies while building on existing biographic data collection; 

and implementing NII technology. In FY 2014, the EXT Program assumed ownership of the Arrival 

and Departure Information System database and opened a new facility to test biometric technology in 

partnership with the DHS Science and Technology Directorate. The program began three experimental 

projects that will be fielded in 2015: 1. Facial recognition to assist in imposter detection; 2. Outbound 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 31

pedestrian processing on the Southwest border to test the feasibility of biographic and biometric data 

collection in the land environment; and 3. Handheld wireless devices to capture and query biometrics in 

the air environment. 

Active Lane Management: This program is a CBP traffic management policy that establishes maximum 

wait time targets for inbound vehicle and pedestrian processing at all land border ports, and adjusts 

vehicle/pedestrian lanes as necessary. This includes three categories of lanes: Trusted Traveler lanes with the 

shortest wait times, Ready Lanes, and general lanes. When Trusted Traveler lane wait times are longer than 

expected, CBP re-designates other lanes. If Ready Lane wait times are more than half as long as general 

lanes, then general lanes will be re-designated as Ready Lanes. CBP actively tracks violations of these 

targets. The program’s existing initiatives, such as automated wait time measurement and variable message 

signage help Port Directors optimize resources to reduce wait times and encourage travelers to participate 

in Trusted Traveler and Ready Lanes. In FY 2014, more than 205 million travelers crossed the land border 

via inbound vehicles. Of these, millions crossed in Trusted Travelers lanes, 33.4 million crossed in Ready 

Lanes, and 141.8 million crossed in the general lanes. 

CBP uses active lane management for pedestrians and vehicles to decrease wait times.

Variable Message Signage: Variable message signage enables CBP to better manage traffic flow and 

inform travelers. CBP positions these LED signs above each vehicle lane to inform travelers of processing 

mode (Trusted Traveler, Ready Lane, and general), lane status (open or closed), and processing procedures 

and policies. In FY 2014, CBP deployed variable message signs to six 

ports of entry, raising the total to 38 ports nationwide.

Pedestrian Reengineering: Along the Southwest border, CBP has 

deployed kiosks and transit-style gate systems that query pedestrian 

travel documents and verify biometrics prior to inspection. In 

FY 2014, CBP deployed four kiosks to the El Paso Bridge of the 

Americas, and Ysleta crossings in Texas. At these locations, CBP 

launched pedestrian Ready Lanes for travelers with radio frequency 

ID travel documents. CBP also deployed variable message signage 

that provides travelers with information on proper kiosk use and 

lane designations to facilitate the crossing process.

CBP’s variable message signage 

allows for more efficient active 

lane management.
32 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

In FY 2014, CBP deployed a wireless infrastructure to the Detroit Ambassador 

Bridge port of entry. This included adding automated license plate readers to 

allow CBP to process and report on Michigan’s Enhanced Driver License—a 

federally approved document that allows holders to re-enter the U.S. when 

traveling by land or sea from Canada, Mexico, Bermuda, and the Caribbean, and provides CBP 

officers with more processing speed and accuracy at ports of entry.

Mobile Technology Solutions: These mobile devices capture and query license plate images, enable 

document machine-readable zone swipes, and provide the results to officers or agents. During FY 2014, 

CBP supported mobile handheld technology on outbound and Border Patrol checkpoints. This included 

the Enforcement Link Mobile Operations (ELMO) application that provides real-time tactical targeting data 

to field personnel via a smartphone or tablet device. ELMO is used by all CBP frontline personnel and has 

helped intercept undocumented aliens, narcotics, unreported currency, and weapons. 

In FY 2014, CBP deployed ELMO to the Seattle Field Office for rail operations, 

and based on its success, deployed the technology to support maritime 

operations on the Great Lakes. Also in FY 2014, CBP procured mobile 

technology to deploy in FY 2015 to support multiple operational environments 

including air and marine, agriculture inspections, in-stream boarding, and cargo and inbound 

passenger processing, including rail and cruise ships.

Border Security Deployment Program: This program is an integrated surveillance and intrusiondetection system—consisting of more than 8,400 cameras and microphones—that provide security, 

motion detection, and remote monitoring capabilities across every U.S. land port of entry. The system 

connects via the DHS Wide Area Network to remote monitoring stations called Customs Area Security 

Centers. These centralized command centers house digital video recorders augmented with analytic 

software to alert watch officers of a detected alarm or intrusion within a port facility and archive the event 

as evidence in subsequent investigations and prosecutions. 

CBP deploys remote monitoring capabilities across every U.S. land port of entry. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 33

In FY 2014, CBP installed surveillance capabilities at the Peace Bridge 

border crossing in Buffalo, New York as part of a public-private partnership to 

improve border security, relieve congestion, and reduce border wait times. As 

a part of CBP’s Border Security Deployment Program, CBP collaborates with 

private industry, exploring alternative funding streams for mutually beneficial business and 

mission improvements.

Promote Harmonization throughout Ports of Entry and Other U.S. Government 

Agencies

CBP harmonizes processes across ports of entry to unify enforcement, and enhance the global economy 

with reduced transaction costs and an efficient movement of people. Supporting a whole of government 

approach, CBP unifies federal efforts and develops international common practices. CBP maintains Centers 

of Excellence and Expertise to develop these common practices and expand CBP’s focus on “Trade in the 

21st Century” by aligning the Agency to modern business practices, focusing on industry-specific issues, 

and tailoring support to unique trading environments. 

CBP operations complement private sector practices. This includes Trusted Trader and Traveler programs 

that enhance CBP’s supply chain and information gathering capabilities to better identify low-risk cargo 

and passengers and expedite their cross-border movement. 

Strategies to Promote Harmonization throughout Ports of Entry and Other U.S. 

Government Agencies 

Trusted Traveler Programs: CBP operates four Trusted Traveler programs: Northern Exchange with the 

U.S. (NEXUS), Secure Electronic Network for Travelers Rapid Inspection (SENTRI), Fast and Secure Trade 

(FAST), and Global Entry. These programs expedite the processing of pre-approved, low-risk travelers, 

allowing CBP to focus on higher-risk travelers. Applicants apply online through CBP’s Global Online 

Enrollment System (GOES) and undergo a background check, biometrics collection, and an interview with 

a CBP officer. Participation in these fee-based programs is voluntary, and membership is valid for five years. 

Once an applicant is enrolled in a program, CBP runs law enforcement checks every 24 hours. All Trusted 

Traveler members receive radio frequency identification (RFID) cards for use at land borders.

NEXUS is a cooperative effort between CBP and Canada Border Services Agency (CBSA). U.S. 

citizens and lawful permanent residents, and Canadian citizens and permanent residents are 

eligible for NEXUS. NEXUS members must be interviewed by both CBP and CBSA officers to 

receive expedited entry into the U.S. and Canada by land, air, and sea environments. NEXUS 

Air applicants must have their iris scan collected by CBSA. 

SENTRI provides expedited CBP processing from Mexico through dedicated commuter lanes 

for vehicles and pedestrians. SENTRI has no citizenship requirement and is open to anyone 

who wants to apply. Members use their RFID-enabled card for identification and to validate 

their status upon arrival at a U.S. port of entry. 
34 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

FAST is a commercial clearance program for known low-risk shipments from Canada 

and Mexico that expedites processing for commercial carriers who have completed 

background checks and meet eligibility requirements. FAST vehicle lanes process 

cargo at land border ports of entry. Participation in FAST requires that every link in 

the supply chain, from manufacturer to carrier to driver to importer, be certified 

under the Customs-Trade Partnership Against Terrorism (C-TPAT) program. FAST 

provides dedicated lanes to facilitate efficient transborder shipment processing, reduces 

the number of inspections and border delays, and prioritizes front-of-the-line CBP 

processing.

Global Entry expedites the clearance of pre-approved low-risk air travelers into the 

U.S. Global Entry members use automated kiosks at designated airports to bypass the 

regular passport control queues, and enter the U.S. without routine CBP questioning 

(unless chosen for a selective or random secondary referral). U.S. citizens and lawful 

permanent residents; and citizens of Mexico, the Netherlands, Panama, and South 

Korea may apply for Global Entry. CBP is operating pilot programs with Germany, 

Qatar, and the United Kingdom, allowing limited numbers of their citizens to 

participate. CBP has also signed joint statements with Australia, Israel, New Zealand, 

and Saudi Arabia. All NEXUS program members and U.S. citizens and U.S. lawful 

permanent residents enrolled in SENTRI may also use Global Entry kiosks. In FY 

2014, CBP added Global Entry services to repurposed kiosks at Miami International 

Airport, and kiosks to Montreal Preclearance. CBP also set up a new enrollment center 

in Pittsburgh to service the enrollments of CBP Trusted Travelers and TSA PreCheck 

members. 

Travel and Tourism Initiatives: Supporting 

the President’s Travel and Tourism Strategy, CBP 

examines and improves its business processes 

to facilitate a more welcoming, interactive, and 

secure arrivals process. In partnership with the 

travel and tourism industry, CBP has developed 

airport action plans at 17 gateway airports with 

the top international arrival volume. During 

the summer of 2014, CBP met with travel 

stakeholders to discuss air travel challenges 

and steps to improve the international arrivals 

process. Stakeholders included representatives 

from airlines, airports, hotels, theme parks, 

visitor and convention bureaus; and local 

elected officials, congressional representatives, and representatives from federal agencies such as DHS and 

the U.S. Department of Commerce. CBP used stakeholder input to develop plans to change infrastructure 

and improve the airport environment including: 

 Automated Passport Control Kiosks

 Mobile Passport Control- Pilot initiated in August 2014

Passengers use Global Entry kiosks that allow 

expedited clearance for pre-approved, low-risk 

travelers.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 35

 Growth in Trusted Traveler Programs

 Expanded public-private partnerships 

 Improved signage and multimedia

 Increased use of traveler surveys to measure satisfaction 

Automated Passport Control (APC): APC expedites the entry process for U.S., Canadian, and eligible 

Visa Waiver Program international travelers 

via automated processing through CBP’s 

Primary Inspection area. Travelers use selfservice kiosks to submit their customs 

declaration and biographic information. 

Instead of filling out a paper customs 

declaration form, eligible passengers use 

the APC kiosks for electronic submission. 

Travelers scan their passport, take a 

photograph using the kiosk, and answer a 

series of questions verifying biographic and 

flight information. This reduces wait times 

and congestion and speeds processing. By 

the end of FY 2014, CBP implemented APC 

at various sites and is now processing more 

than 90,000 passengers per day, up from 

9,000 at the beginning of FY 2014.

Airport Wait Time System: This system shows flight processing times for arriving flights at the busiest 

international airports, the number of passengers processed on flights arriving in each hour, and how long 

it took for those passengers to clear passport control. In FY 2014, CBP upgraded the system by accounting 

for varying flight arrival patterns heavily impacted by time-of-year, day-of-week, and time-of-day metrics, 

helping travelers plan their next flight.

Expand Risk-Segmentation through Advanced Technology to Enable Low-Risk 

Trade and Travel

CBP automates the categorization and segmentation of goods and travelers according to the risks they 

pose to expedite legitimate passengers and cargo. This includes analyzing border traffic using accurate risk 

assessments for every traveler and cargo shipment that crosses the U.S. border. CBP automates trade and 

travel processes, increases information sharing and collaboration, and uses advanced data to more quickly 

and easily identify high-risk cargo and passengers.

CBP cultivates information-sharing partnerships to efficiently and accurately identify and validate lowrisk importers and travelers. As CBP refines data collection and more accurately understands the behaviors 

and actions that indicate risk, it uses advanced analytics to detect and predict trends that identify high-risk 

passengers and cargo earlier in the transit process.

Global Entry and APC kiosks are located at international 

airports across the Nation.
36 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Strategies to Expand Risk-Segmentation through Advanced Technology to 

Enable Low-Risk Trade and Travel 

Advance Passenger Information System (APIS): APIS is the most critical system CBP uses to 

identify dangerous individuals entering or departing the U.S. Through APIS, CBP receives biographical and 

travel document information on passengers and crew arriving in and departing from the U.S. by air, sea 

and, in some cases, land (from commercial bus and rail operators). CBP receives APIS data in advance of a 

passengers and crews arrival or departure, allowing CBP to screen them against government watch lists and 

send the screening response to commercial air carriers and private aircraft operators. Screening includes 

automated law enforcement queries that seek matches to multi-agency law enforcement alerts, immigrant 

visas, and historical databases. The APIS process also incorporates Electronic System for Travel Authorization 

(ESTA) screening, to allow carriers to use the existing APIS processes to meet ESTA requirements. In FY 

2014, CBP screened 374,575,055 total passengers and crew through all modes and sent 34,203,353 to 

secondary screening for further investigation. 

Electronic System for Travel Authorization (ESTA): ESTA allows CBP to screen information provided 

by Visa Waiver Program travelers to determine whether an alien presents a security risk and is eligible to 

travel to the U.S. under the program. CBP requires airlines to verify ESTA status before boarding all Visa 

Waiver Program passengers. Travelers who are denied a travel authorization via ESTA can apply for a U.S. 

visa at the nearest U.S. Embassy or Consulate. The ESTA website appears in English and 22 other languages. 

In FY 2014, CBP implemented enhancements to ESTA.

Admissibility Review Office (ARO): This office works with the U.S. Department of State and other 

agencies to determine whether inadmissible aliens can legally travel as non-immigrants with waivers 

under the Immigration and Nationality Act. ARO balances each alien’s reason(s) for travel with the 

seriousness of their ineligibility, weighed against any benefit or potential risk if CBP were to admit the 

alien. ARO processes and adjudicates all inadmissibility waivers that 

the U.S. Department of State consular officers recommend worldwide. 

ARO decides all high profile “seat of government” non-immigrant 

waivers, and processes and adjudicates all waiver applications 

submitted directly to CBP by eligible individual international 

travelers. In FY 2014, ARO worked on 15,558 nonimmigrant waiver 

recommendations. 

Fraudulent Document Analysis Unit (FDAU): FDAU manages 

the CBP Fraud Prevention Program that collects and analyzes 

fraudulent travel documents seized by CBP officers. FDAU also 

manages the Carrier Liaison Program which increases commercial 

carriers’ effectiveness in identifying improperly documented 

passengers through training materials and carrier and vessel 

inspection guides. CBP inputs and verifies travel and identity 

documents using Edison TD, a global database in partnership with 

the Netherlands, Canada, Australia, United Arab Emirates, and the 

International Criminal Police Organization (INTERPOL). In FY 2014, 

the FDAU retrieved 12,024 fraudulent documents. CBP’s FDAU verifies travel 

documents for fraud.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 37

National Agriculture Release Program: A national agricultural cargo release program developed in 

cooperation with the U.S. Department of Agriculture Animal and Plant Health Inspection Service (APHIS), 

Plant Protection and Quarantine (PPQ) division. This program identifies high volume imports of regulated 

agricultural commodities that represent a low risk for exotic plant pest or pathogen introduction. APHISPPQ has determined that these high-volume, low-risk commodities can be inspected at reduced rates and 

would not compromise U.S. agricultural resources. 

Automated Commercial Environment (ACE): ACE is CBP’s new import and 

export processing system that facilitates the movement of legitimate trade through 

more effective trade account management. By the end of 2016, ACE will become 

the primary system through which the trade community will report imports 

and exports, and the Federal Government can determine admissibility. Dubbed 

the “Single Window,” this system will streamline and automate manual processes by eliminating paper 

submissions, allowing the international trade community to more easily and efficiently comply with U.S. 

laws and regulations. CBP continues to develop ACE so it can deliver new capabilities in a secure, paperfree, web-enabled environment. In FY 2014, CBP deployed new ACE capabilities including changes to the 

ACE Cargo Release, Entry Summary, and participating government agency Integration business processes. 

The Executive Order on Streamlining the Export/Import Process for 

America’s Businesses, signed on February 19, 2014, directs federal agencies 

with a role in trade to complete development of an electronic “Single 

Window” by December 31, 2016. 

Automated Export System (AES): A component of ACE, AES is the central point where export 

shipment data is filed electronically, providing an alternative to filing paper electronic export information. 

The system detects errors in export information and allows users to correct them at the time of filing. 

AES is a nationwide system at all ports, for all methods of transportation. It assures compliance with and 

enforcement of export laws, improves trade statistics, reduces duplicate reporting to multiple agencies, 

and improves customer service. In FY 2014, CBP’s OIT re-engineered AES to provide a new Single Window 

user interface for CBP and participating government agencies users.

Global Online Enrollment System (GOES): GOES is a system that allows registered users to apply 

for CBP Trusted Traveler Programs. In FY 2014, CBP’s OIT enhanced GOES in support of the Asia-Pacific 

Economic Cooperation Business Travel Card (ABTC) project. This enhancement allows U.S. citizens to apply 

for the Trusted Traveler Program and ABTC at the same time, allows Panamanian citizens to apply for Global 

Entry, and allows Canadian citizens to apply for the ABTC. 

Inbound Radio Frequency Identification (RFID) Saturation: CBP has issued nearly 29 million 

enabled RFID travel documents since January 2008. Used in CBP Ready Lanes, RFID documents reduce 

processing time through Active Lane Management. In FY 2014, 35.7 million vehicles crossed the border 

using RFID-enabled travel documents, with a 46.3 second average Ready Lane wait time.
38 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 3 - Advance Comprehensive Border Security and Management

Safeguard and manage the Nation’s air, land, and maritime borders through the active administration 

of U.S. immigration and trade laws; and develop risk-informed strategies to target enforcement and 

operational capabilities to meet the highest priority threats in the border environment.

Overview: CBP deploys air, land, and marine assets to patrol and safeguard U.S. border areas, as well as 

sophisticated systems to detect and interdict potential threats beyond its borders. CBP prevents the illegal 

movement of people and contraband crossing U.S. airspace; approximately 6,900 miles of land border; 

and in partnership with the U.S. Coast Guard, approximately 95,000 miles of shoreline. CBP anticipates 

and responds to diverse illegal activities including terrorism, transnational crime, counterfeit and unsafe 

goods, agricultural pests and diseases, narcotics smuggling, human trafficking, the unlawful transport of 

immigrants, and the transfer of prohibited weapons and illicit bulk currency.

In its border management and protection efforts, CBP assesses numerous variables including points of 

origin, modes of transit, arrival at U.S. borders, as well as routes leading away from the physical border. 

While enabling the flow of lawful trade and travel, CBP ensures proper revenue collection and prevents 

the illegal movement of people and contraband through 328 air, land, and maritime ports of entry. 

CBP partners with federal, state, local, tribal, territorial, and international law enforcement agencies to 

strengthen its ability to safeguard and manage the border. 

Objectives to Accomplish Goal 3 - Advance Comprehensive Border Security 

and Management

 Objective A – Reduce costs for the U.S. Government and the trade and travel communities by 

streamlining processes in collaboration with public and private sector partners
2014 Performance and Accountability Report • U.S. Customs and Border Protection 39

 Objective B – Promote harmonization throughout ports of entry and other U.S. Government agencies

 Objective C – Expand risk-segmentation through advanced technology to enable low-risk trade and 

travel

 Objective D – Strengthen processes to conduct outbound enforcement and interdiction of travelers 

and cargo

 Objective E – Advance a comprehensive, predictive targeting strategy to identify threats as early as 

possible

Increase Situational Awareness of the Air, Land and Maritime Borders

CBP maintains and constantly enhances a comprehensive understanding of the threat environment and 

current and projected operating conditions at specific border regions. This begins with information 

collected by CBP’s intelligence, surveillance, and reconnaissance capabilities, combined with a thorough 

analysis of cross-border trends, especially those concerning illicit trafficking and unlawful border 

crossings. CBP leverages a wide range of tactics, skills, and technologies to improve data and information 

collection, formulate actionable intelligence, and enhance situational awareness. 

To increase situational awareness, CBP leads efforts to collaborate and coordinate with domestic law 

enforcement, intelligence, local community, and foreign law enforcement partners. This includes assisting 

international partners in expanding their resources and capacities through coordinated training and 

exercises. CBP uses various tactics to gather information and intelligence including periodic reconnaissance 

patrols, sign-cutting and tracking, UAS patrols, and routine interaction with security partners within 

local communities. CBP leverages advanced technologies such as biometrics, mobile surveillance 

systems, radiation detectors, ground sensors, and imaging systems to better detect, identify, monitor, and 

appropriately respond to threats across U.S. border regions. 

Strategies to Increase Situational Awareness of the Air, Land and Maritime 

Borders 

Alliances to Combat Transnational Threats (ACTTs): ACTTs are collaborative, unified command 

enforcement approaches to target TCOs using the capabilities and resources of federal, state, local, and 

tribal law enforcement and public safety organizations. CBP works with these strategic partners to develop 

coordinated operational plans based on their specific mission, capabilities, and jurisdiction. 

New Mexico/West Texas ACTT: The New Mexico/West Texas ACTT is the unified command that directs 

DHS components and other law enforcement entities in intelligence-driven operations within the New 

Mexico/West Texas corridor. This includes identifying TCO tactics, techniques, and procedures. In FY 

2014, the New Mexico/West Texas ACTT identified Mexican drug trafficking organizations critical 

capability nodes—a capability, element, or position whose disruption immediately degrades the ability to 

conduct operations—resulting in focused targeting and intelligence collection efforts.

Arizona ACTT: The Arizona ACTT is the unified command that deters, denies, degrades, and disrupts 

TCO activities in the Arizona corridor by leveraging the resources of law enforcement agencies operating 

in Arizona and Mexico. This command investigates TCO activities in Tucson and Phoenix and border 

enforcement operations at and between ports of entry.
40 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

In January 2014, Border Patrol agents and federal police from Mexico, 

discovered an incomplete, cross-border tunnel during a bi-national border 

sweep in Nogales, Arizona, west of the DeConcini Port of Entry. After observing 

freshly disturbed dirt within the channel floor of a drainage system, authorities 

discovered a tunnel originating in Mexico and extending into the U.S. Tunnels 

continue to be used by TCOs attempting to operate in the Southern Arizona Corridor. 

The Border Patrol continues to work closely with strategic partners in Mexico to detect 

tunnels being constructed, and to prevent their completion prior to movement of illegal 

contraband or persons across the border.

Southern Border Bi-National Operations: These are joint operations to target the trafficking of 

narcotics, weapons, ammunition, humans, and currency along the U.S. border with Mexico. Southern 

border binational operations improve information gathering and analysis so terrorist and TCO threats 

can be interdicted outside of U.S. borders. Through the Cross Border Coordination Initiative, the Border 

Patrol conducts simultaneous operations with the Mexico Federal Police in mutually agreed-upon zones 

to degrade TCO activity on both sides of the border through the exchange of information, physical officer 

presence coordinated response, and increased officer training. CBP has established International Liaison 

Units (ILUs) to coordinate law enforcement activities between CBP and its Mexican counterparts and serve 

as points of contact when preparing for and/or responding to border violence.

Northern Border Bi-National Operations: These are joint operations between the U.S. and Canada 

to improve border management and lay the foundation for security and economic prosperity, outlined in 

the 2011 Beyond the Border Action Plan. These operations address threats early; facilitate trade, economic 

growth and jobs; enforce laws across the border; and safeguard critical infrastructure and cybersecurity. 

Some bi-national operations include the Cross Border Crime Forum, established in 1997 that facilitates 

cooperative U.S.-Canada investigations of cross-border crime; and Integrated Border Enforcement Teams 

(IBETs) across 15 regions comprised of U.S. and Canadian Federal, state/provincial, tribal and local law 

enforcement personnel. 

CBP Northern Border Bi-national Operations include an Operations Integration Center in Detroit.

In FY 2014, CBP’s OAM executed year two of its Northern Border Realignment 

Plan. This includes the relocation of 13 personnel who were selected during 

the previous year, and the selection of 13 additional personnel to relocate 

from the Northern border region to priority areas.

Success 

Story 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 41

Detect, Interdict and Disrupt Illegal Cross-Border Activities

CBP is vigilant in anticipating and responding to threats to national security and in ensuring the safety of 

the U.S. public. CBP employs risk-informed approaches that incorporate intelligence, shared information, 

and situational awareness protocols to enable rapid response, strengthen integrated operations, and 

discourage future illegal activities. CBP and its law enforcement partners address cross-border threats in an 

integrated and efficient manner. CBP provides unified efforts, such as corridor campaigns that involve joint 

interagency planning, operational design, and execution.

CBP works closely with other federal agencies to support the President’s National Strategy to Combat 

Transnational Organized Crime. CBP expands mobile and rapid interdiction capabilities to further enable 

a quick and appropriate response to changing threats, targeting the highest risk regions on and around 

U.S. borders. When illegal cross-border activity is discovered, CBP administers the most appropriate 

consequences to discourage recidivist behavior, and degrade TCO and terrorist capabilities.

Strategies to Detect, Interdict and Disrupt Illegal Cross-Border Activities 

Replacement of Unattended Ground Sensors (UGS): CBP replaced old UGSs in selected Border 

Patrol Sectors with new UGS technologies. From June 2014 to December 2014, CBP replaced old UGSs, 

processing 992 incoming old UGSs from 17 OBP Sectors; and replaced them with more than 1,000 

new UGSs. These efforts supported Border Patrol’s initiative to dispose of non-Federal Communications 

Commission compliant sensor equipment, and increase operational availability of mission-critical 

surveillance equipment.

In FY 2014, CBP successfully completed the Pedestrian Fence 225 Project, 

part of DHS’ multi-layered strategy, via the Secure Fence Act of 2006 to 

construct the necessary infrastructure to deter and prevent illegal entry along 

the Southwest border.

California Corridor Campaign (C3): C3 is the campaign of the California Corridor Unified Command 

(CCUC) to collectively target shared threats and priorities to disrupt and dismantle TCOs operating 

in and around the California/Mexico border. The CCUC is an integrated command comprised of six 

organizations: CBP Border Patrol, CBP OFO, CBP OAM, ICE Enforcement and Removal Operations 

(ERO), U.S. Department of Justice (DOJ)/U.S. Attorney’s Office, and the U.S. Department of Justice, Drug 

Enforcement Administration (DEA). 

During FY 2014, C3 components conducted numerous joint operations and 

investigations that resulted in the successful apprehensions and seizures of: 

630 pounds of processed marijuana, 1,574 marijuana plants, 51.3 pounds 

of methamphetamine, 57.5 pounds of heroin, and 49.6 pounds of cocaine. In 

addition, C3 operations resulted in the seizure of: 22 firearms, 13,880 rounds of ammunition, 

14 vehicles, U.S. currency in the amount of $9,623, and the arrests of 70 illegal aliens and 48 

U.S. citizens.
42 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

As a result of C3 integrated efforts, in April 2014, Mexican Federal Police 

- working with the San Diego and El Centro Sector Border Patrol arrested 

the leader of the Diablo TCO in Mexico who was wanted by U.S. officials for 

smuggling, kidnapping, and extortion in East San Diego County.

Success 

Story 

South Texas Campaign: This campaign is a unified command where CBP works closely with federal, 

state, and local law enforcement partners in South Texas and Mexican counterparts to collect and assess 

intelligence for enforcement operations along the South Texas Corridor. This includes regular face-to-face 

and virtual meetings with leadership from CBP, ICE, FBI, DEA, and other law enforcement partners to 

synergize efforts to target TCOs. The South Texas Campaign focuses on outcomes, such as apprehensions of 

key corridor targets, prosecutions, and convictions of major smuggling organization members to disrupt 

and degrade the ability of TCOs to operate, rather than outputs such as seizures or apprehensions. 

The South Texas Campaign patrols and monitors the border across land, sea, and air.

The South Texas Campaign uses intelligence driven collection initiatives to 

focus corridor intelligence collection efforts. Initiatives in the Rio Grande 

Valley revealed 98% of targeted or suspected guides were Mexican juveniles. 

In conjunction with the U.S. Department of Health and Human Services Office 

of Refugee Resettlement, the South Texas Campaign developed the Juvenile Referral Program 

pilot initiative to disrupt this trend.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 43

Canine Enforcement Teams: CBP has the largest and most diverse law enforcement canine program in 

the U.S., with more than 1,500 canine teams deployed nationwide. CBP canine officers and Border Patrol 

agents use specially trained canines to combat terrorist threats and interdict concealed persons, currency, 

firearms, agriculture products, narcotics, and other contraband. The Border Patrol Tactical Unit (BORTAC) 

Canine program has teams for tactical high-stress situations. The Border Patrol also has a canine horse 

patrol unit with canines working alongside the handler riding on horseback. In FY 2014, 426 students are 

projected to graduate from CBP canine training academies as canine handlers or canine instructors; and 17 

students for international, state, and local law enforcement agencies. 

CBP has the largest and most diverse law enforcement canine program in the U.S.

Strengthen Comprehensive Trade Enforcement

This objective aims to secure and intercept unlawful cargo and enable the swift movement of legitimate 

trade. CBP enforces U.S. trade laws and international trade agreements to protect the economy, national 

security, and the safety of the American people by protecting against counterfeit and unsafe goods, disease 

and plant pests, and financial schemes that defraud the U.S. government and undermine lawful business. 

CBP’s trade enforcement efforts identify, detect, and interdict high-risk shipments through advanced 

technology, integrated enforcement capabilities, and collaborative partnerships with the private sector.

CBP maximizes the use of trade intelligence, working with the private sector to better use targeting 

capabilities, detect bad actors earlier in the supply chain, respond to risks on a real-time basis, and 

anticipate new threats before they fully emerge. CBP drives innovative solutions to help increase trade 

volumes and identify trade that can harm the American people or economy. Using automated risksegmentation, CBP expedites low-risk trade, focusing enforcement resources on identifying high risk 

shipments that may contain unsafe merchandise. CBP maintains a constant awareness to identify noncompliant importers and exporters who do not adhere to U.S. import and export laws. CBP leads an 

international network of customs authorities and law enforcement agencies to defeat the global networks 

of criminals involved in unlawful international trade practices.

Strategies to Strengthen Comprehensive Trade Enforcement 

Customs-Trade Partnership Against Terrorism (C-TPAT) Program: The C-TPAT program 

safeguards global trade by strengthening supply chain security. Once a company becomes a certified 

C-TPAT member, C-TPAT security specialists validate their supply chain security procedures. Members 
44 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

are incentivized to ensure their supply chains meet or exceed C-TPAT security 

criteria. As of September 2014, C-TPAT had 10,834 program participants. Also 

in FY 2014, CBP worked with TSA to implement a joint air carrier assessment 

program which meets TSA Office of Global Strategies and C-TPAT program 

criteria, reducing redundancies with other agency programs.

In June 2014, C-TPAT signed a mutual recognition arrangement with Israel’s 

Authorized Economic Operator program. This arrangement links these 

industry partnership programs to further secure and facilitate global cargo 

trade, providing C-TPAT and Israel AEO members fewer exams when shipping 

cargo and a faster validation process. In addition to Israel, the U.S. also has mutual recognition 

arrangements with New Zealand, Canada, Japan, Korea, Jordan, the European Union, and 

Taiwan, and is currently in the process of establishing similar arrangements with Mexico, China, 

India, and Brazil. 

Trusted Trader Program: In June 2014, CBP announced plans to begin an 18-month test of the Trusted 

Trader program, a program where importers can establish compliance with laws and regulations for secure 

supply chains and strong internal controls, enforced by CBP, U.S. Consumer Product Safety Commission 

(CPSC), and the U.S. Food and Drug Administration (FDA). This test of the Trusted Trader program aims to 

strengthen collaboration between federal agencies and move toward a whole of government approach to 

supply chain security and trade compliance. CBP encourages importers through incentives) to secure their 

supply chains and strengthen their internal controls.

Trade Transformation Initiatives: These initiatives expedite the flow of legitimate cargo by creating 

efficiencies that drive down costs for business and the U.S. Government while securing the global supply 

chain. Examples of Trade Transformation initiatives include CBP Centers of Excellence and Expertise, 

ACE, ACAS, and Trade Partnerships. The CBP Centers of Excellence and Expertise help maintain a strong 

and competitive U.S. economy through innovative trade management techniques. They align CBP trade 

resources by industry and manage importers by account. By virtually linking trade personnel across 

the country into industry-based, multi-disciplinary teams, CBP facilitates trade and develops a deeper 

understanding of industry practices, risk areas, and enforcement issues. Ten Centers of Excellence and 

Expertise are now open and conducting entry summary activities for participating importers:

 Agriculture & Prepared Products (Miami)

 Apparel, Footwear & Textiles (San Francisco)

 Automotive & Aerospace (Detroit)

 Base Metals (Chicago)

 Consumer Products & Mass Merchandising (Atlanta)

 Electronics (Los Angeles)

 Industrial & Manufacturing Materials (Buffalo)

 Machinery (Laredo)

 Petroleum, Natural Gas & Minerals (Houston)

 Pharmaceuticals, Health & Chemicals (New York)
2014 Performance and Accountability Report • U.S. Customs and Border Protection 45

Strengthen Processes to Conduct Outbound Enforcement and Interdiction of 

Travelers and Cargo

CBP enhances the detection of potential threats and the legitimate flow of people and cargo and effectively 

manages the flow of outbound trade to inhibit the export of illicit currency, weapons, and other illegal 

products. Supporting a whole of government approach, CBP coordinates with the U.S. law enforcement 

and intelligence communities to verify outbound travelers and cargo. CBP strengthens its partnerships to 

share common data and intelligence, deploy innovative and cost-effective solutions, and support unity 

of effort across a global network of enforcement agencies. CBP creates information sharing programs to 

enhance outbound enforcement by allowing the exit information from one country to serve as the entry 

information for the other country, providing a low cost method to validate people and cargo, and alleviate 

the need for costly new infrastructures or processes.

CBP deploys innovative and cost-effective solutions to enhance validation of outbound cargo and 

passengers and better identify illegal or illicit activities, including travelers who overstay their lawful 

admission in the U.S. This includes working with the DHS Science and Technology Directorate to 

implement biometric capture capabilities to confirm the departure of non-U.S. citizens at airports and 

seaports and to more efficiently screen travelers entering the U.S. 

Strategies to Strengthen Processes to Conduct Outbound Enforcement and 

Interdiction of Travelers and Cargo 

Outbound Mission: CBP’s outbound mission is to interdict the illegal export of unreported currency, 

firearms, ammunition, and stolen property; prevent international terrorist groups and rogue nations 

from obtaining sensitive and controlled commodities; arrest fugitives; increase export compliance; and 

ensure that travelers and commerce departing the U.S. comply with U.S. export laws and regulations. CBP 

uses experienced CBP officers, canine teams, human and network intelligence, various inspection tools, 

and cooperation with foreign, federal, state, local and tribal law enforcement agencies. In FY 2014, CBP 

deployed temporary outbound infrastructure elements to priority Southwest border crossings including 

canopies for inclement weather, improved lighting for night operations, and traffic control devices for 

traveler/officer safety. CBP also deployed mobile handheld license plate readers to high risk crossings along 

the Northern border to assess risk to departing travelers and conveyances. 

In FY 2014, CBP’s OIT modified the Advanced Passenger Information 

System (APIS) to query outbound APIS travelers (non-U.S. Citizens) against 

INTERPOL’s Stolen Lost Travel Documents (SLTD), including the alert message 

sent to INTERPOL. APIS improves border security by providing CBP with an 

effective method of sharing information regarding the status of lost/stolen travel documents of 

outbound travelers with other law enforcement organizations.

Operation Stonegarden Grant Program: CBP and the Federal Emergency Management Agency 

(FEMA) worked together to manage and administer this grant program, aimed at enhancing coordination 

among federal, state, and local law enforcement agencies to secure the borders with Mexico, Canada, and 

international waters. Organizations eligible for Operation Stonegarden grant funding include countylevel governments and federally recognized tribal governments in the states bordering Canada, Mexico or 
46 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

those with international water borders. Promoting a multilateral whole community approach, CBP uses 

risk-based prioritization to allocate grant funds from the Homeland Security Appropriations Act of 2010 

(Public Law 110-83). In FY 2014, CBP and FEMA allocated $55 million in grant funds to 21 border states 

and territories under Operation Stonegarden. 

In September 2014, Luna County Sheriff’s Office Deputies in 

New Mexico located several individuals walking in the desert 

using a Forward Looking Infrared Radiometer (FLIR) system 

obtained through Operation Stonegarden. The deputies 

contacted the Deming New Mexico Border Patrol Station and 

in a joint effort, made contact with the individuals, who were found to be illegal aliens and 

were subsequently arrested.

Automation at Outbound and Checkpoints: CBP continues to incorporate new technologies for 

outbound vehicle and Border Patrol checkpoint processing on the southwest border. In FY 2014, CBP 

upgraded outbound locations and Border Patrol checkpoints with fixed license plate readers and mobile 

handheld devices. The new outbound technologies on the southwest border facilitated the seizure of more 

than $15.2 million in currency, 72 firearms, 35,756 rounds of ammunition, and the arrest of nearly 602 

wanted fugitives or violators of export laws. 

Success 

Story 

In October 2014, Zapata County Sheriff’s Office Deputies 

in Texas working Operation Stonegarden-funded patrols 

attempted to stop a vehicle for traffic violations. The driver of 

the vehicle refused to stop and tried to evade the Deputies. 

The driver eventually slowed down and jumped out of the 

vehicle and absconded. The Deputies seized the vehicles that contained several bundles 

of marijuana. 

Success 

Story 

Advance a Comprehensive, Predictive Targeting Strategy to Identify Threats as 

Early as Possible

CBP uses an integrated targeting strategy to identify high-risk passengers and cargo and enable 

international passengers and cargo to move more quickly through the inspection process. CBP uses 

a multilayered approach that includes partnerships, advanced information, technology, forward 

deployments, and examinations at the earliest point possible through the transit process. The Agency 

coordinates with domestic, international, and private sector partners to conduct joint targeting programs 

to identify high-risk passengers and cargo in real time. This includes working with business partners to 

align systems, processes, and procedures to efficiently gather information while minimally impacting 

partners’ operations.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 47

CBP pursues innovative solutions, techniques, and methodologies to enhance the targeting enterprise 

to confront a persistently shifting threat environment. This includes updating automated systems with 

more advanced risk models and algorithms, predictive forms of automation, and adaptive technology 

that reduces the need for human analysis and speeds the identification of new and emerging threats. 

CBP applies advanced data analytics to combine shipment data, biographical and biometric data, past 

importation and travel patterns, and enforcement action information to stay ahead of emerging threats. 

Strategies to Advance a Comprehensive, Predictive Targeting Strategy to 

Identify Threats as Early as Possible

Minotaur Program: The Minotaur program is a shared, multi-domain operating picture that provides 

continuous tracking of surface ships over wide areas in dense surface environments and disseminates data 

from airborne assets to command and control centers. The program addresses CBP’s need for complete, 

persistent, and accurate wide-area surveillance in tactical maritime environments. In FY 2014, CBP’s OAM 

worked with the U.S. Navy to develop and test a prototype system for the Minotaur program. This system 

will improve CBP’s capability to detect and track non-cooperative targets, and collect and fuse friendly 

reporting sources such as AIS information. 

Battlespace Visualization Initiative: This initiative is a management tool that fuses disparate DHS 

systems into a single, comprehensive system of mapping utilities, analysis tools, and visualization. It 

supports real-time situational awareness, track management, terrain analysis, multi-intelligence fusion, 

and other critical geographically based functions. In FY 2014, CBP’s OAM and OIIL worked together to 

evaluate the Battlespace Visualization Initiative’s potential data sharing capability. Used by the U.S. defense 

and intelligence communities to protect the Nation’s security, the Battlespace Visualization Initiative aids 

intelligence collection management by matching diverse information requests with available collection 

resources. The system allows users to view data from several collection disciplines with an integrated 2D 

and 3D display, allowing users to view all collection operations for a given area.

Vehicle and Dismounted Exploitation Radar (VADER): VADER is a strategic intelligence sensor 

used on the Predator B UAS that provides comprehensive situational awareness for an expanded target 

area. Focusing on the Arizona West Desert area, the system allows accurate Ground Moving Target Indicator 

data and Synthetic Aperture Radar (SAR) imagery to be readily available to ground commanders in real 

time. The culmination of a wide area aerial surveillance and operational capability enables CBP to better 

coordinate tactical operations and operational planning, and to better identify and mitigate potential gaps 

in border security. 

Coherent Change Detection (CCD): CCD is a geospatial intelligence technique to collect and compare 

coherent SAR images from the approximate same location collected at different times. CBP’s OAM supports 

CCD during day-to-day operations and during disasters, routinely flying “SAR runs” to collect strategic 

information such as vehicular traffic and patterns of life in remote areas. In FY 2014, the National Air 

Security Operations Center – Corpus Christi conducted four dedicated flights of multiple SAR runs in the 

South Texas Campaign area of operations, specifically near the Laredo and Del Rio Border Patrol Sectors, 

collecting high value intelligence. Along the Northern border, National Air Security Operations Center 

– Grand Forks conducted 100 SAR runs. CBP uses CCD information for planning, situational awareness, 

common operating picture, and to vector interdiction assets based on the combined information flow.
48 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

TECS Portal: TECS is a modified version of the former Treasury Enforcement Communications System, 

and is the principal system used at the border to assist with screening and determining admissibility 

of arriving persons. TECS is an information sharing platform and data repository that supports law 

enforcement lookouts, border screening, and reporting for CBP’s primary and secondary inspection 

processes. CBP officers and Border Patrol agents use TECS to document observations related to an encounter 

with a traveler, a memorable event, or other noteworthy information that may be indicative of intelligence 

gathering or planning related to terrorism, criminal, or other illicit intention. In FY 2014, CBP’s OIT 

accomplished several TECS Modernization projects. This included increased functionality for lookout 

records, travel documents, encounter data available, as well as operating the Consolidated Secondary 

Inspection System from a second data center. OIT improved TECS’ primary screening capability by 

reducing load on the mainframe for ports of entry through modernized query services and modernized 

databases. Ten of 28 participating government agencies are live on the TECS Portal. OIT expanded 

TECS Portal functionality to include lookout, travel document, and person encounter queries and the 

commonly used queries from the National Crime Information Center and National Law Enforcement 

Telecommunications System 

Goal 3 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 49

Goal 4 - Promote Organizational Integration, Innovation, and Agility

Mature and develop CBP’s culture, capabilities, and business processes to remain agile and

adaptable in supporting operational requirements to ensure efficiency and effectiveness.

Overview: Understanding the challenges and requirements of operating within a constantly changing 

environment, CBP must diligently pursue organizational efficiencies, optimized business processes, and 

mature functional capabilities to fully support operational needs and assure overall mission effectiveness. 

CBP’s committed personnel are its most valuable resources and must be cultivated through progressive 

training to maintain a highly skilled and effective workforce.

Objectives to Achieve Goal 4 - Promote Organizational Integration, Innovation, 

and Agility 

 Objective A – Mature CBP’s strategic resource management framework

 Objective B – Optimize CBP’s organizational structure to ensure agile and efficient operations

 Objective C – Strengthen CBP’s culture of unwavering integrity and professional growth

 Objective D – Advance CBP mission effectiveness through transformative technologies and innovative 

business practices

Goal 4
50 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Mature CBP’s Strategic Resource Management Framework

CBP adjusts its programs to meet the shifting domestic and global conditions and enhance performance 

through the planning, programming, budgeting and accountability business structure. CBP’s business 

model is based on the DoD and DHS planning, programming, budgeting and execution systems, 

customized to meet CBP’s specific needs. This strategic resource management framework ensures the 

Commissioner’s vision, goals, and objectives are clearly articulated; programs activities, and resources are 

appropriately aligned; and performance measures are in place to enable the assessment of progress. CBP 

improves its analytic capability to make well-informed decisions regarding strategy and policy, resource 

allocation, beneficial investments for DHS and CBP, and the balancing risk against specified performance 

goals. 

CBP develops an effective performance management process that establishes realistic and achievable 

parameters to systematically achieve its strategic goals. This includes more than simply collecting and 

reporting information—it aligns strategy to implementation and resource allocation, and assesses the 

effects. CBP’s shared mission, capabilities-based portfolios align strategy to performance to better integrate 

all facets of planning, programming, budgeting and accountability throughout the Agency.

Strategies to Mature CBP’s Strategic Resource Management Framework

FY 2014 CBP Business Plan: CBP’s OA developed an integrated plan and monitoring process to assess 

monthly performance. The plan outlines quarterly reports that include cross-functional data sources, 

analytics, and processes for improved procurement and spending plans, allowing CBP leadership to target 

specific types of costs for reduction, rather than order across-the-board cuts. The FY 2014 CBP Business 

Plan ensures consistent information for CBP leaders when dealing with the operational budget, mandates 

to maintain staffing levels, and rising costs. 

CBP’s OA is responsible for decentralized management and oversight of more 

than 783,000 disbursed personal property assets (valued at more than $7 

billion). OA promotes CBP office accountability and stewardship by ensuring 

adequate personal property assets are available to support the CBP mission, 

reducing the likelihood of financial misstatements, and facilitating compliance with federal 

mandates, regulations, and policy.

Facilities Management and Engineering Directorate (FM&E): CBP’s FM&E provides a broad 

range of facilities, infrastructure, and related support services and serves as CBP’s program manager 

for the Agency’s large, complex, and diverse facilities and tactical infrastructure portfolio, which 

includes buildings, structures, and towers across the U.S., as well as more than 650 miles of vehicle and 

primary pedestrian fence on the Southwest border. In support of the Presidential Memo—Disposing of 

Unneeded Federal Real Estate, FM&E identifies and executes space reduction opportunities nationwide by 

implementing a variety of mobile work, technology, and policy solutions. These efforts also lower energy 

and environmental resource usage and reduce CBP’s operating costs. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 51

Resource Optimization Strategy: CBP uses this strategy to optimize business processes, accurately 

identify staffing requirements, and explore alternative funding strategies to increase revenue sources. This 

includes CBP’s Workload Staffing Model, a data-driven tool to identify staffing requirements by accounting 

for the processes, personnel, and time required of CBP officers to accomplish an operation. It estimates 

future staffing requirements for new or enhanced facilities, technology deployments, and growth in trade 

and travel. DHS is pursuing several legislative proposals as alternative funding options for future staffing 

needs such as increasing traveler fees, maintaining authority to be reimbursed by stakeholders for new or 

expanded services, and investing in modernization initiatives such as mobile technology and kiosks for 

travelers at airports and land border ports of entry.

2012-2016 Border Patrol Strategic Plan: The Border Patrol follows its Strategic Plan to focus its 

operations to meet the challenges of securing a 21st century border against a variety of different threats 

and adversaries. The principal theme of the Border Patrol Strategic Plan is to use information, integration, 

and rapid response to meet all threats, placing the greatest capabilities to combat the greatest risks. The 

Border Patrol prevents the entry of terrorists, weapons, illegal immigrants and contraband along 6,900 

miles of land borders with Mexico and Canada, along with 2,000 miles of coast around Florida and 

Puerto Rico. The plan has two main goals: Secure America’s Borders and Strengthen the Border Patrol. In 

implementing its strategic plan, the Border Patrol measures the readiness of resources in performing its 

mission. 

Campaign Planning: The Border Patrol uses sector-level Operational Implementation Plans to 

implement its 2012-2016 Strategic Plan. To facilitate corridor-level campaign planning, the Border Patrol 

broadened the sector focus to group its sectors into corridors. Sectors that were not in a corridor were 

arranged into planning partnerships with fellow sectors. 

Interdiction Effectiveness Rate (IER): CBP uses the IER along the Southwest border to evaluate the 

Border Patrol’s ability to apprehend or turn back would-be illegal entrants with a 77% IER target for FY 

2014. IER is measured by Apprehensions + Turnbacks / Apprehensions + Turnbacks + Gotaways. OBP 

exceeded the FY 2014 target with a 79.28% IER by year-end. 

Consequence Delivery System (CDS): CDS enhances border security by tracking the progress of each 

Border Patrol sector in applying consistent and effective consequences to disrupt the smuggling cycle and 

dissuade illegal re-entry attempts. The recidivism rate is indicative of CBP’s ability to utilize more effective 

and efficient consequences to influence a person’s desire and ability to attempt future illegal entries. 

Recidivism has continued to decrease for the fourth year in a row since the implementation of the CDS 

in January 2011. The consistent and systematic application of consequences to aliens that enter the U.S. 

illegally has contributed to the reduction of recidivism to 14% in FY 2014, significantly lower than 24% in 

FY 2010, the year before implementation. 
52 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Optimize CBP’s Organizational Structure to Ensure Agile and Efficient 

Operations

CBP continues to meet the growing complexities of the future operating environment through agility and 

innovation. The Agency evolves its organizational design with the right combination of differentiation and 

integration of operations in response uncertainty in the external environment. CBP’s organizational design 

is more than an organizational structure or strategic plan - it encompasses all formal and informal systems 

and processes as well as their inherent interactions. By defining and evolving the optimal hierarchical 

arrangement of lines of authority, communications, responsibilities and functions of its offices, CBP 

continuously streamlines command and control over daily operations. 

Strategies to Optimize CBP’s Organizational Structure to Ensure Agile and 

Efficient Operations

Enterprise Agile Project Management: CBP’s OIT continues to implement Agile Project Management 

practices in support of the Federal CIO’s 25-Point Implementation Plan to Reform Federal Information 

Technology Management. These efforts help drive common standards and practices and support 

streamlined process efficiencies in supporting CBP’s IT infrastructure. In an Agile organization, integrated 

product teams actively engage customers to deploy IT functionality in smaller and less risky increments. In 

shifting to Agile, CBP provides improved cost management, and better align IT products to mission needs. 

Workforce Development: CBP’s OTD provides formal training and education programs through two 

training academies and three training centers, delivering instructor-led classroom training and online 

training through CBP’s Virtual Learning Center. OTD develops and implements CBP’s annual training 

plan and provides career development programs, basic and advanced training to all occupations (e.g., 

anti-terrorism training to CBP officers, Border Patrol agents, and other occupations), and management 

and executive development programs. OTD defines and implements evaluation measures, data collection 

processes, and inspection methods for ongoing assessment of all CBP training programs. 

Strengthen CBP’s Culture of Unwavering Integrity and Professional Growth

CBP develops a collaborative culture to ensure continued delivery of its mission to the American people. 

This includes attracting, hiring, continually developing, and retaining a highly qualified workforce with 

an enduring commitment to CBP’s highest ideals, especially integrity. CBP provides training and dynamic 

growth opportunities to strengthen professional skills and capabilities throughout its workforce.

CBP strengthens its culture of unwavering integrity and professional growth by implementing 

comprehensive programs and capabilities to prevent, detect, investigate, and respond to instances 

of corruption and misconduct. This includes improving procedures for conducting background 

investigations, polygraph exams, behavior analysis, investigations, security, covert testing, and inspections 

to ensure integrity and accountability in the workforce. To retain high-caliber employees and ensure the 

effectiveness of programs, CBP continues to build a diverse workforce, develop career path roadmaps, 

promote work-life programs, and maintain a work culture that rewards performance, encourages 

employee engagement, and provide personal, professional, and organizational growth opportunities.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 53

Strategies to Strengthen CBP’s Culture of Unwavering Integrity and 

Professional Growth

Integrity and Personal Accountability Strategy: In FY 2014, CBP issued an integrity and personal 

accountability document to address the integrity standards of the Agency. The overwhelming majority of 

the men and women who constitute the CBP workforce serve with honor and integrity, adhering to the 

high standards demanded of CBP personnel. The comprehensive Integrity and Personal Accountability 

Strategy establishes a unified and multi-layered approach organized around four integrity related mission 

areas: prevention, detection, investigation, and response to corruption and misconduct. 

Workers’ Compensation Program: CBP restructured the Workers’ Compensation Program to establish 

an overall strategic case management process that reduces chargeback costs and expedites the return-towork of CBP employees who are injured while performing their duties. This includes initiating medical 

case management services such as nurses reviewing new worker’s compensation cases, offering pharmacy 

benefit plan services to injured workers, and conducting reviews of long-term disability cases using 

predictive modeling software. 

Human Resources Business Engine (HRBE): HRBE is a web-based workflow engine that supports 

CBP’s complex pre-employment processes in both the Indianapolis and Minneapolis Hiring Centers, for 

professional and entry-level hiring. In FY 2014, CBP’s HRM implemented the HRBE-Personnel Action 

Request Tracking System, a system that transformed business practices by speeding-up the hiring process 

and increasing data integrity. This online system enables offices to submit personnel action requests 

in a more efficient manner. HRM deployed dashboards for labor and employee relations and financial 

disclosure to make more informed decisions.

Advance CBP Mission Effectiveness through Transformative Technologies and 

Innovative Business Practices

CBP promotes organizational excellence and operational agility by leveraging technological advances 

and innovative practices. This includes optimizing resource allocation with the greatest return on 

investment and the delivery of prioritized operational capabilities. CBP anticipates and prepares for future 

organizational requirements by collaborating with partners and promoting an entrepreneurial spirit. CBP 

implements innovations to reduce costs and provide greater return on investment to the American people 

by transforming business practices and processes to be more forward-looking and streamlined. This 

includes implementing Agile Project Management processes and reducing the reliance on burdensome 

bureaucratic protocols. 
54 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Strategies to Advance CBP Mission Effectiveness through Transformative 

Technologies and Innovative Business Practices

National Uniform Contract: 

CBP’s OA awarded department-wide 

strategic uniform sourcing contracts 

to create more efficient procurement 

options and reduce overall program 

costs through increased buying 

power. These contracts provide a 

consolidated acquisition vehicle 

to support the needs of more than 

120,000 uniformed employees 

across nine DHS Law Enforcement 

Components. 

FY 2015 Fuel Sharing 

Management Initiative: CBP’s OA 

developed technical requirements 

and procurement documentation 

for the FY 2015 Fuel Sharing Management Initiative that allows DHS components to share fuel facilities 

for approximately 20,000 vehicles along the Southwest border, Georgia, and Puerto Rico. DHS projects 

that the initiative will result in $4 million in annual cost avoidance through reduced commercial fuel 

purchasing, reduced sales tax charges, improved fuel efficiency, automated collection of vehicle metrics 

and maintenance scheduling, reduced vehicle acquisition costs, and simplified reporting. 

FY 2019 CBP Fleet Strategic Plan: This Strategic Plan establishes the organizational priorities 

for managing and operating the CBP motor vehicle fleet and articulates key programs, objectives, and 

milestones for improving organizational fleet performance. This includes reducing maintenance costs by 

directly integrating automotive parts vendors into CBP garages, improving inventory management, and 

streamlining the parts procurement process. In FY 2014, CBP awarded four contracts for automotive parts 

facilities, realizing an estimated $1 million in annual cost avoidance upon full implementation.

Fleet Right-Sizing Initiative: This initiative is CBP’s methodology for determining an optimal fleet size 

and composition based on the number of CBP personnel, mission requirements, and other operational 

factors, as required by the Presidential Memorandum on Federal Fleet Performance. In FY 2014, OA’s 

Mobile Assets Program Management Office performed a fleet right-sizing analysis and established fleet 

inventory targets that will result in an expected 2,241 reduction of vehicles in FY 2015. The FY 2015 

reductions will avoid $82.3 million in vehicle replacement acquisitions.

Home-to-Work (HtW) Management and Internal Controls and Compliance Plan: This plan 

ensures compliance with the HtW Transportation Program policies and processes, educates CBP employees 

on HtW policies, fosters an ethical environment, and establishes internal mechanisms to prevent, detect, 

and identify program violations and/or other unethical behavior. In FY 2014, CBP improved compliance 

with HtW requirements by implementing an HtW communications plan, implementing a standardized 

HtW web-based training course, and implementing recurring quality assurance processes to query HtW 

data for completeness and correctness.

CBP provides uniforms for more than 120,000 uniformed 

employees.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 55

CBP Overtime Scheduling System (COSS): CBP’s OIT modified the COSS work ticket and billing 

process to better calculate overtime services, track the expenses in the financial systems, and automate 

the billing to external customers. CBP partnered with Dallas-Fort Worth International Airport, City of 

El Paso, South Texas Assets Consortium, Houston Airport System, and Miami-Dade County for overtime 

reimbursement. These enhancements enable CBP to be reimbursed for services via an alternative funding 

source, and provide an innovative way to support growing volumes of travel and trade in a challenging 

budget environment. 

Border Security Fencing Infrastructure and Technology (BSFIT) appropriation: This 

appropriation supports DHS and CBP missions by delivering operationally appropriate, agile, and costeffective detection and surveillance technology systems, and Tactical Infrastructure (TI), and Tactical 

Communications Modernization (TACCOM) to border security fences. BSFIT funds several technologies 

including Integrated Fixed Towers (IFT), Agent Portable Surveillance System (APSS), Mobile Surveillance 

Capability (MSC), Mobile Video Surveillance System (MVSS), Remote Video Surveillance System (RVSS), 

Thermal Imaging Device (TID), Unattended Ground Sensors/Imaging Unattended Ground Sensors 

(UGS/I-UGS), Tethered Aerostat Radar Systems (TARS), and Ultra-Light Aircraft Detection (ULAD). These 

technologies enhance CBP’s ability to survey the border and detect incursions of various types. In FY 2014, 

CBP awarded contracts to deploy IFT systems to several Border Patrol areas in the Tucson sector. CBP also 

delivered an RVSS capability and deployed MSC units to Arizona.

CBP Cloud Computing Environment (C3E): CBP has been “sunsetting” obsolete legacy mainframe 

technology, modernizing CBP’s overall IT infrastructure, and maintaining/improving systems availability, 

with a target completion in FY 2015. Moving towards the target C3E—a cloud-based IT infrastructure, 

CBP’s OIT deletes, retires, or modernizes border enforcement and management system applications. OIT 

is currently modernizing AES to operate on the cloud with AES applications now migrated to C3E. The 

retirement of outdated mainframe applications decreases overall IT technology debt, improves efficiency, 

and increases overall performance of technology. 

Mobility Service Implementation: CBP is transitioning off of BlackBerrys and upgrading equipment 

under the DHS Commercial Wireless Managed Services Blanket Purchase Agreement to support mobility 

operations. CBP mobility requirements and operational decisions are being supported through the 

effective use of Agile Scrum teams, an iterative and incremental software development framework, and 

by leveraging cloud-based project management tools like Atlassian JIRA, a commercial software system to 

capture and organize issues, assign work, and follow team activity.
56 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Looking Ahead

CBP continues to expand and enhance mission effectiveness by its forward-looking approach to secure 

America’s borders and the vitality of the U.S. economy. CBP will continue to integrate state-of-the-art 

technologies and traditional security infrastructures at U.S. ports of entry and along the Nation’s borders 

and to work in collaboration and partnership with the trade community and foreign governments to 

secure the U.S. against terrorists and terrorist weapons while facilitating world commerce.

Countering Terrorism and Transnational Crime: CBP’s law enforcement initiative must anticipate 

and respond to criminal networks that engage in diverse conspiracies that include terrorism, the 

importation of counterfeit or unsafe goods, drug smuggling, human smuggling and trafficking, as well 

as the outbound transfer of prohibited weapons and illicit bulk currency. Since the number of people and 

volume of cargo moving across our borders is so large, and border enforcement resources are finite, we 

must be the Nation’s proactive leader as a well-informed and highly agile law enforcement organization 

that can anticipate, target, detect and disrupt cross-border criminal violators that threaten national security, 

economic prosperity and public safety.

Advancing Comprehensive Border Security: CBP plays the preeminent role in securing and 

managing the air, land, and maritime borders through the active administration of U.S. laws, which 

includes addressing cross-border criminal activity, inspection and enforcement at ports of entry, and 

comprehensive trade enforcement. Protecting the U.S. from the illegal entry of people, weapons, drugs, 

and contraband is vital to homeland security, as well as our economic prosperity. CBP will safeguard and 

manage the U.S. air, land, and maritime borders through integrated, intelligence-driven, risk-informed 

strategies and leverage operational capabilities to enhance anticipatory and agile operations against the 

nodes and paths of adversary networks.

Enabling Trade, Travel, and Exports: Efficient and effective processing of goods and people to and 

through the U.S. is critical to CBP’s mission of supporting the Nation’s economic competitiveness by 

enabling legitimate trade and travel, and to the successful implementation of the National Export Initiative 

and the National Travel and Tourism Strategy. As international trade and travel grow, CBP must create 

efficiencies, drive down cost, and streamline regulatory policies. This will require sustained transformative 

and innovative thinking on how to minimize the costs and optimize efficacy in an increasingly competitive 

and complex global economy.

Promoting Integration and Operational Excellence: In a constantly changing environment, 

CBP must pursue organizational efficiencies, optimized business processes, and continuous capability 

development to support operational priorities and ensure organizational effectiveness. CBP’s people 

and culture are some of its most valuable resources and must be fully supported to ensure a capable, 

competent, integrated and collaborative CBP.

Advancing International Engagement: While each of the requirements detailed in the major sections 

above require consistent and committed international partnerships, CBP will seek deeper systematic 

engagement with global partners through international organizations and broad strategic efforts.

Looking Ahead
2014 Performance and Accountability Report • U.S. Customs and Border Protection 57

Performance Goals and Results 

CBP uses performance measures to monitor, report, and improve its programs. DHS has identified 

several performance measures for release to the public as useful for portraying CBP activities and their 

contributions to defending the homeland. CBP releases its performance results towards nine performance 

measures, listed in the table below. The Performance Results section contains full discussions of CBP’s FY 

2014 performance and results for each of these measures.

CBP Performance Measure 2014 Performance 

Target

FY 2014 Year End 

Result Target Met?

1. Percent of inbound cargo identified 

by CBP as potentially high-risk that is 

assessed or scanned prior to departure 

or at arrival at a U.S. port of entry

100% 99.22%

2. Percent of detected conventional 

aircraft incursions resolved along all 

borders of the United States

100% 98.8%

3. Percent of people apprehended 

multiple times along the Southwest 

border

<=17% 14%

4. Rate of interdiction effectiveness 

along the Southwest Border between 

ports of entry

77% 79.28%

5. Percent of cargo by value imported 

to the U.S. by participants in CBP trade 

partnership programs

59% 53.9%

6. Percent of Import Revenue 

Successfully Collected 100% 99.56%

7. Percent of imports compliant with 

applicable U.S. trade laws 97.50% 97.99%

8. Amount of smuggled outbound 

currency seized at the ports of entry (in 

millions)

$30 $37.7

9. Number of smuggled outbound 

weapons seized at the ports of entry 400 411

CBP’s FY 2014 results towards its nine releasable performance measures.

Performance Goals and Results
58 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CBP performance measures improve the efficiency and effectiveness of CBP programs through improved 

measurement, analysis, and reporting. As an agency within DHS, CBP aligns its performance measures 

to the DHS Strategic Plan and DHS Quadrennial Homeland Security Review (QHSR) missions, and DHS 

Future Year Homeland Security Program (FYHSP) mission areas.

DHS Strategic Plan and QHSR Missions CBP FYHSP Mission Areas

1. Preventing and Protecting Against Terrorism 1. Securing America’s Borders

2. Securing and Managing our Borders 2. Securing and Expediting Trade

3. Enforcing and Administering our Immigration Laws 3. Securing and Expediting Travel

4. Safeguarding and Securing Cyberspace 4. Intelligence and Targeting

5. Ensuring Resilience to Disasters 5. Integrated Operations

The five DHS Strategic Plan and QHSR missions and the five CBP FYHSP mission areas

Derived from the conclusions of the QHSR, the DHS Strategic Plan focuses its efforts towards five key 

missions and other efforts to provide essential support to national and economic security. The FYHSP 

requires CBP offices to report their performance results within CBP’s five core mission areas. DHS 

uses FYHSP performance data to assess how CBP programs performed in meeting its targets and how 

to efficiently use requested resources to meet performance goals for the following year. CBP reports 

performance results within the FYHSP intranet-accessible system that include:

 Performance measures of major programs organized by component or mission

 Targets and actual results for each measure

 Trends of performance data from four previous years, the current year, and established measure 

targets six out years

 Alignment of measures to QHSR mission, goals, and objectives

Measuring performance has many benefits. First, it highlights areas for improvement, which leads to 

more informed decision-making in establishing priorities and ensuring that resources are allocated to 

best support mission execution. Secondly, performance measurements can highlight opportunities to 

increase efficiency and efficacy to improve return on investment for resource allocation decisions. Finally, 

performance measurements provide critical information to external stakeholders, which can lead to 

improved oversight and more accurate assessment of organizational effectiveness. 

The following table describes how CBP aligns it performance measures to the DHS Strategic Plan and 

QHSR five missions, and CBP’s FYHSP five mission areas.

Performance Goals and Results
2014 Performance and Accountability Report • U.S. Customs and Border Protection 59

CBP Performance Measure DHS Strategic Plan and QHSR Mission CBP FYHSP Mission 

Area

1. Percent of inbound 

cargo identified by CBP as 

potentially high-risk that is 

assessed or scanned prior to 

departure or at arrival at a 

U.S. port of entry

Mission 2: Securing and Managing Our Borders

Goal 2.2: Safeguard Lawful Trade and Travel

Objective 2.2.3 Manage the risk of people and 

goods in transit

Mission Area 4: 

Intelligence and 

Targeting

2. Percent of detected 

conventional aircraft 

incursions resolved along all 

borders of the United States

Mission 2: Securing and Managing Our Borders

Goal 2.1: Secure U.S. Air, Land, and Sea Borders

Objective 2.1.1: Prevent Illegal Entry

Mission Area 1: 

Securing America’s 

Borders

3. Percent of people 

apprehended multiple times 

along the Southwest border

Mission 2: Securing and Managing Our Borders

Goal 2.1: Secure U.S. Air, Land, and Sea Borders

Objective 2.1.1: Prevent Illegal Entry

Mission Area 1: 

Securing America’s 

Borders

4. Rate of interdiction 

effectiveness along the 

Southwest Border between 

ports of entry

Mission 2: Securing and Managing Our Borders

Goal 2.1: Secure U.S. Air, Land, and Sea Borders

Objective 2.1.1: Prevent Illegal Entry

Mission Area 1: 

Securing America’s 

Borders

5. Percent of cargo by value 

imported to the U.S. by 

participants in CBP trade 

partnership programs

Mission 2: Securing and Managing Our Borders

Goal 2.2: Safeguard Lawful Trade and Travel

Objective 2.2.3 Manage the risk of people and 

goods in transit

Mission Area 2: 

Securing and 

Expediting Trade

6. Percent of Import Revenue 

Successfully Collected

Providing Essential Support to National and 

Economic Security

Mission Area 2: 

Securing and 

Expediting Trade

7. Percent of imports 

compliant with applicable 

U.S. trade laws

Mission 2: Securing and Managing Our Borders

Goal 2.2: Safeguard Lawful Trade and Travel

Objective 2.2.3 Manage the risk of people and 

goods in transit

Mission Area 2: 

Securing and 

Expediting Trade

8. Amount of smuggled 

outbound currency seized 

at the ports of entry (in 

millions)

Mission 2: Securing and Managing Our Borders

Goal 2.1: Secure U.S. Air, Land, and Sea Borders

Objective 2.1.2: Prevent Illegal Export and Exit

Mission Area 3: 

Securing and 

Expediting Travel

9. Number of smuggled 

outbound weapons seized at 

the ports of entry

Mission 2: Securing and Managing Our Borders 

Goal 2.1: Secure U.S. Air, Land, and Sea Borders

Objective 2.1.2: Prevent Illegal Export and Exit

Mission Area 3: 

Securing and 

Expediting Travel

CBP’s performance measures as aligned to the DHS Strategic Plan and QHSR five missions, 

and CBP’s FYHSP five mission areas.

Performance Goals and Results
60 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

FY 2014 Performance by CBP Strategic Goal 

CBP’s Integrated Planning Framework provides performance management guidelines to improve the 

efficiency and effectiveness of CBP programs through improved measurement, analysis, and reporting. CBP 

links its resources and performance results to accomplish its four strategic goals and associated objectives 

in the context of their risks and costs. The Integrated Planning Framework aligns CBP strategic goals with 

DHS mission goals and resource allocation decisions, as well as satisfies the requirements established by 

the OMB Circular A-11 and the Government Performance and Results Modernization Act of 2010 (P.L 111-

352). 

CBP is dedicated to continuously refining and improving its performance measures. The goal is to ensure 

that the data it reports internally and externally is useful to senior executives who make programming 

and funding decisions. The tables below shows the FY 2014 targets and results of CBPs nine releasable 

performance measures, as aligned under their respective strategic goal and objective. 

Goal 1 - Advance 

National Security 

and Public Safety

Performance Measure FY 2014 

Target

FY 2014 

Result

Target 

Met

Objective A – Understand the threat environment

Performance measures not releasable - - -

Objective B – Enhance procedures and partnerships that will facilitate interagency 

and international border enforcement coordination

Performance measures not releasable - - -

Objective C – Strengthen global supply chain security

6. Percent of Import Revenue Successfully 

Collected 100% 99.56%

Goal 2 - Enhance 

U.S. Economic 

Competitiveness 

by Enabling 

Lawful Trade and 

Travel

Performance Measure FY 2014 

Target

FY 2014 

Result

Target 

Met

Objective A – Reduce costs for the U.S. government and the trade and travel 

communities by streamlining processes in collaboration with public and private 

sector partners

5. Percent of cargo by value imported to the 

U.S. by participants in CBP trade partnership 

programs

59% 53.9%

7. Percent of imports compliant with applicable 

U.S. trade laws 97.5% 97.99%

Objective B – Promote harmonization throughout ports of entry and other U.S. 

government agencies

Performance measures not releasable - - -

Objective C – Expand risk-segmentation through advanced technology to enable 

low-risk trade and travel

Performance measures not releasable - - -

Performance Goals and Results
2014 Performance and Accountability Report • U.S. Customs and Border Protection 61

Goal 3 - Advance 

Comprehensive 

Border Security 

and Management

Performance Measure FY 2014 

Target

FY 2014 

Result

Target 

Met

Objective A – Increase situational awareness of the air, land and maritime borders

Performance measures not releasable - - -

Objective B – Detect, interdict and disrupt illegal cross-border activities

2. Percent of detected conventional aircraft 

incursions resolved along all borders of the 

United States

100% 98.8%

3. Percent of people apprehended multiple 

times along the Southwest border <=17% 14%

4. Rate of interdiction effectiveness along the 

Southwest Border between ports of entry 77% 79.28%

Objective C – Strengthen comprehensive trade enforcement

Performance measures not releasable - - -

Objective D – Strengthen processes to conduct out-bound enforcement and 

interdiction of travelers and cargo

8. Amount of smuggled outbound currency 

seized at the ports of entry (in millions) $30 $37.7

9. Number of smuggled outbound weapons 

seized at the ports of entry 400 411

Objective E – Advance a comprehensive, predictive targeting strategy to identify 

threats as early as possible

1. Percent of inbound cargo identified by CBP 

as potentially high-risk that is assessed or 

scanned prior to departure or at arrival at a U.S. 

port of entry

100% 99.22%

Goal 4 - Promote 

Organizational 

Integration, 

Innovation and 

Agility

Performance Measure FY 2014 

Target

FY 2014 

Result

Target 

Met

Objective A – Mature CBP’s strategic resource management framework

Performance measures not releasable - - -

Objective B – Optimize CBP’s organizational structure to ensure agile and efficient 

operations

Performance measures not releasable - - -

Objective C – Strengthen CBP’s culture of unwavering integrity and professional 

growth

Performance measures not releasable - - -

Objective D – Advance CBP mission effectiveness through transformative 

technologies and innovative business practices

Performance measures not releasable - - -

CBP’s FY 2014 targets and results of its nine releasable performance measures as aligned to 

its strategic goal and objectives.

Performance Goals and Results
62 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Management Assurances 

CBP management is responsible for establishing and maintaining effective internal control to support 

DHS in providing reasonable assurance that the objectives of the Federal Managers’ Financial Integrity Act 

(FMFIA) and the Federal Financial Management Improvement Act (FFMIA) are met. CBP activities also 

support DHS compliance with the Department of Homeland Security Financial Accountability Act. CBP has 

evaluated its management controls, internal controls over financial reporting, and compliance with federal 

financial systems standards. In performing the evaluation, CBP considered results from external audit 

reports, independent reviews, and internal assessments conducted by CBP management. 

Federal Managers’ Financial Integrity Act (FMFIA)

In accordance with FMFIA and the Office of Management and Budget (OMB) Circular A-123, 

Management’s Responsibilities for Internal Control, and in support of DHS’ compliance requirements, 

CBP provides reasonable assurance that the objectives of Section 2 of the FMFIA (Financial Reporting 

and Operations) have been achieved, except for the material weakness noted below. CBP conforms to the 

objectives of Section 4 (Financial Management Systems), except for the non-conformances noted below. 

 Drawback Controls: CBP’s Automated Commercial System (ACS) has inherent limitations in detecting 

and preventing excessive drawback claims. The strengthening of drawback controls is dependent 

upon legislation to simplify the drawback process, to revise documentation retention requirements 

for the trade community, and to enhance systems to implement the legislative changes. Until the 

legislative changes and systems improvements are realized, CBP expects drawback payments to remain 

a material weakness.

 Financial Systems Security: The DHS Office of Inspector General continues to identify information 

technology general and application control non-conformance issues at CBP. A number of issues were 

resolved during FY 2014 but remediation will continue into FY 2015.

 Core Financial Systems: CBP’s ACS does not interface trade-related receivable activity with the 

accounting system general ledger at the transaction level. Historical activity reports of Office of Air 

and Marine (OAM) Inventory cannot be generated from CARMAC. Specifically, data can be pulled at a 

given point in time and retained, but if it is not pulled at that time it is updated and overridden with 

more recent activity.

 Information Technology Infrastructure: A technical assessment to identify issues and analyze 

associated mission risks of CBP’s data center and network technology infrastructure was performed in 

FY 2012. Remediation efforts were initiated in FY 2012 and will continue into FY 2015.

DHS Financial Accountability Act

The Act requires DHS to provide an assertion of internal controls over financial reporting. CBP contributes 

to the Department’s assertion by performing procedures consistent with OMB Circular A-123 and DHS 

guidance. 

Federal Financial Management Improvement Act (FFMIA)

CBP’s financial management systems contribute to the DHS substantial non-compliance with FFMIA due to 

Financial Systems Security and Core Financial Systems issues previously discussed. 

Management Assurances
2014 Performance and Accountability Report • U.S. Customs and Border Protection 63

Financial Management

CBP strives to be a leader in financial management by providing high-quality, cost-efficient services 

through customer involvement and modern, integrated financial systems. CBP is positioning to become a 

shared accounting service provider to other DHS components. CBP’s goal is to continuously develop and 

implement more effective and efficient methods to obtain, manage, and deliver the financial resources, 

capital assets, and financial services required to meet or exceed the needs of customers and stakeholders. 

Because CBP is also a revenue-collection agency, it is imperative that it accurately identify amounts owed to 

CBP and efficiently and effectively collect, report, and account for revenue.

Providing top-quality financial management services includes translating workloads and requirements into 

budget requests for needed resources, allocating and distributing funds after resources are made available, 

acquiring and distributing goods and services used to accomplish the CBP mission, managing and paying 

for those goods and services, and reporting on the costs and use of personnel, goods, and services.

For FY 2014, CBP continues to use SAP as its financial software. SAP is an Enterprise Resource Planning 

(ERP) solution that integrates budget formulation, budget execution, acquisition through the disposal 

of assets, requisition through payment, billing to collection of receivables, and business intelligence. SAP 

integrates business processes and reporting within one system, thereby eliminating unnecessary data entry, 

ensuring data accuracy, and enabling single system reporting and analytical reporting. SAP ensures that CBP 

complies with Federal Government standards and regulations for financial management systems. This single 

integrated solution supports program types eliminating data redundancy and inefficiencies.

Overview of the Financial Statements

The financial statements and footnotes appear in the “Financial Section” of this report. The financial 

statements have been audited by the independent auditor engaged by the DHS OIG, KPMG LLP, who 

determined that the financial statements are fairly presented in accordance with GAAP.

Consolidated Balance Sheet

The Consolidated Balance Sheet presents the property owned by CBP (assets), amounts owed by CBP 

(liabilities), and the amounts of the difference (net position). As of September 30, 2014, total assets were 

$16.2 billion, a 4% increase from FY 2013. As of September 30, 2014, total liabilities were 6.6 billion, an 

increase of 9% over FY 2013.

Financial Management
64 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

FY 2014 Assets

FY 2014 Liabilities

Fund Balance with 

Treasury 

Taxes, Duties, and Trade 

Receivables

General 

Property, Plant 

and Equipment

Other

40%

$6.4 Million

5%

$909 Million

36%

$5.7 Billion

19%

$3 Million

$16.2 

Billion

Total Assets

Due to the 

Treasury General 

Fund

Accrued Payroll and 

Benefits 

Other

Accounts Payable

47%

$3.1 Billion

9%

$596 Million

Refunds Payable

2%

$148 Million

15%

$993 Million

25%

$1.6 Billion

$6.6 

Billion

Total 

Liabilities

Injured Domestic 

Industries 

2%

$128 Million
2014 Performance and Accountability Report • U.S. Customs and Border Protection 65

Consolidated Statement of Net Cost

The Consolidated Statement of Net Cost presents the net cost of the major CBP programs as they relate to 

the goals of the DHS 2012-2016 Strategic Plan. The gross cost less any offsetting revenue for each program 

equals net cost of operations. Net cost of operations was $12.9 billion. 

FY 2014 Net Cost of Operations

Securing and 

Expediting Trade

Securing and 

Expediting 

Travel

Intelligence and 

Reporting 

Securing America's 

Borders

21%

$2.7 Billion

44%

$5.6 Billion

4%

$580 Million

31%

$3.9 Billion

$12.9 

Billion

Net Cost of 

Operations

Consolidated Statement of Changes in Net Position

The Consolidated Statement of Changes in Net Position represents those accounting transactions that 

caused the net position of the balance sheet to change from the beginning to the end of the reporting 

period. CBP’s net cost of operations serves to reduce the net position. Appropriations used totaled $7.8 

billion, representing 62% of CBP’s total financing sources. CBP collected and retained $3.9 billion of nonexchange revenue, amounting to 31% of total financing sources, which was used to fund CBP operations.

Combined Statement of Budgetary Resources

The Combined Statement of Budgetary Resources illustrates how budgetary resources were made available, 

as well as their status at the end of FY 2014. CBP had $17.3 billion in budgetary resources, of which $1.6 

billion were unobligated. CBP incurred obligations of $15.7 billion and recorded $15.2 billion in gross 

outlays by the end of FY 2014.

Consolidated Statement of Custodial Activity

The Consolidated Statement of Custodial Activity presents non-entity (financial activity conducted by CBP 

on behalf of others) revenue and refunds using a modified cash basis. This method reports revenue from 

cash collections separately from receivable accruals, and cash disbursements are reported separately from 

payable accruals. The custodial revenue, using the modified cash basis, for FY 2014 was $39.4 billion.
66 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

FY 2014 Custodial Cash Collections

Limitations of the Financial Statements

The principal financial statements have been prepared to report the financial position and results of the 

operations of CBP, pursuant to the requirements of 31 U.S.C. 3515(b). While the financial statements have 

been prepared from the books and records of CBP in accordance with GAAP for Federal entities and the 

formats prescribed by OMB, the statements are in addition to the financial reports used to monitor and 

control budgetary resources, which are prepared from the same books and records.

The financial statements should be read with the realization that they are a component of the U.S. 

Government, a sovereign entity.

Duties

Excise Taxes

Other

User Fees

87%

$33.9 Billion

4%

$1.5 Billion

1%

$293 Million

8%

$3.2 Billion

$39.3 

Billion

Total 

Custodial 

Revenue
Performance Section

This section provides information on CBP’s progress in achieving performance goals and objectives.
68 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Performance Summary

The performance data presented in this report is in accordance with OMB guidance provided. The data 

integrity discussion in the “Systems and Controls” section describes CBP’s commitment to providing 

quality and timely performance information. CBP managers use this data to demonstrate accountability 

and improve the quality of program results.

In FY 2014, CBP met five of its nine performance measure targets (56%). Of the four targets CBP did not 

meet, its performance results were very close to the targets, in some cases less than 1%. The measures are 

organized by strategic goal and objective. CBP has four overarching strategic goals:

1. Advance National Security and Public Safety

2. Enhance U.S. Economic Competitiveness by Enabling Lawful Trade and Travel

3. Advance Comprehensive Border Security and Management

4. Promote Organizational Integration, Innovation and Agility

The performance measures are established as an integral part of CBP’s Vision and Strategy 2020, the DHS 

Strategic Plan 2012-2016, the Quadrennial Homeland Security Review (QHSR), and the DHS Future Years 

Homeland Security Program (FYHSP). The measurement data is collected through various systems and 

methods and then entered into the FYHSP System for tracking and compiling for management decisionmaking and year-end reporting. 

Individual Performance Measure Results

This section describes the FY 2014 target for each performance measure, a discussion of CBP’s FY 2014 

performance results, and, when available, four years of historical trend data. CBP has prepared line graphs 

for each performance measures to show performance trends. 

Although in some cases CBP achieved a result significantly better than the target, CBP did not set the new 

fiscal year’s target to reflect the prior year’s result. Annual performance is subject to greater variability than 

long-term performance. Over time, short-term trends tend to balance out and provide a more accurate 

picture of CBP’s long-term performance. Some annual targets are baselined using data acquired over a 

multi-year period. Targets are determined to measure the performance toward long-term strategic goals.

Performance Summary 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 69

Goal 1: Advance National Security and

Public Safety

Performance Measure (6): Percent of import revenue successfully collected

This measure estimates the collected duties, taxes, and fees (called net under-collection of revenue) 

expressed as a percent of all collectable revenue due from commercial imports to the United States directed 

by trade laws, regulations, and agreements. The total collectable revenue is total collected revenue plus the 

estimated net under-collected revenue based on trade violations. The estimated revenue gap is a statistical 

calculation of potentially uncollected duties (the difference between estimated under-collection and 

overpayment) based on statistical sampling.

Explanation of FY 2014 Results: CBP does not review 100% of the imports. This reporting is based on 

a statistical sampling. About one half of the revenue gap is estimated to be due to import violations from 

China.

Corrective Action: CBP will continue to apply various enforcement methods such as audits, targeting, 

and statistical random sampling to bridge revenue gap and identify non-compliance with U.S. trade laws, 

regulations and agreements.

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

100% 100% 100% 100%

99.12% 98.88% 98.73% 99.56%

98.6%

98.8%

99.0%

99.2%

99.4%

99.6%

99.8%

100%

Goal 1, Performance Measure 6
70 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 2: Enhance U.S. Economic Competitiveness 

by Enabling Lawful Trade and Travel

Performance Measure (5): Percent of cargo by value imported to the U.S. by 

participants in CBP trade partnership programs

This measure describes the percent of all cargo that is imported from CBP trade partnership programs 

based on the value compared to total value of all imports. Partnership programs include both C-TPAT and 

Importer Self-Assessment (ISA). CBP works with the trade community through these voluntary public 

private partnership programs, wherein some members of the trade community adopt tighter security 

measures throughout their international supply chain and in return are afforded benefits. A variety of trade 

actors are included in these partnership programs, such as importers, carriers, brokers, consolidators/

third-party logistic providers, Marine Port Authority and Terminal Operators, and foreign manufacturers.

Explanation of FY 2014 Results: The percent of cargo by value imported by trusted trade partners 

also remained stagnant, attributed to a policy change associated with Centers of Excellence and Expertise 

entry processing. CBP policy allows any importer who applies and is approved to have their transactions 

processed by the Centers of Excellence and Expertise. As a result, an incentive to become a Trusted Trader 

to participate in the Centers of Excellence and Expertise is diminished and is reflected in the number of 

applications received.

Corrective Action: CBP will continue to increase its outreach efforts independently and in conjunction 

with various trade and supply chain security associations.

Goal 2, Performance Measure 5

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

45.00% 45.00% 57.00% 59.00%

55.07% 54.70% 55.20% 53.90%

46%

44%

48%

50%

52%

54%

56%

58%

60%

62%
2014 Performance and Accountability Report • U.S. Customs and Border Protection 71

Goal 2: Enhance U.S. Economic Competitiveness 

by Enabling Lawful Trade and Travel

Performance Measure (7): Percent of imports compliant with applicable U.S. 

trade laws

This measure reports the percent of imports that are compliant with U.S. trade laws including customs 

revenue laws. Ensuring that all imports are compliant and free of major discrepancies allows for lawful 

trade into the U.S.

Explanation of FY 2014 Results: Through C-TPAT and ISA programs and Centers of Excellence and 

Expertise, CBP closely monitored importers to reduce the non-compliance rates.

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

98.00% 98.00% 97.50% 97.50%

97.67% 96.46% 97.66% 97.99%

96.4%

96.6%

96.8%

97.0%

97.2%

97.4%

97.6%

97.8%

98.0%

Goal 2, Performance Measure 7
72 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (2): Percent of detected conventional aircraft incursions 

resolved along all borders of the United States

The measure represents the percent of conventional aircraft, once detected visually or by radar that are 

suspected of illegal cross border activity and are brought to a successful law enforcement resolution. In 

some cases, CBP’s OAM assets are launched to interdict the aircraft. In most cases, resolution of the aircraft 

identity is made by AMOC working with interagency partners, such as the Federal Aviation Administration 

(FAA). If the incursion is deemed legal, OAM considers the incursion resolved. If AMOC could not identify 

that target in working with our partners, including OAM assets, the incursion is deemed unresolved and is 

thus considered illegal.

Explanation of FY 2014 Results: FY 2014 totals were 244 of 247 border incursions resolved for an 

overall 98.79% success rate. Two of the three unresolved aircraft were visually spotted by Border Patrol/

OFO agents on the Northern and Texas borders and reported to AMOC who did not have radar data to 

identify the targets. AMOC did detect the third track crossing the border into Louisiana but responding law 

enforcement could not locate the target.

Corrective Action: AMOC will continue to increase surveillance capability through integration of FAA 

and DoD radar technology along the border environment to enhance detection and provide timely law 

enforcement response to mitigate the threat of low flying aircraft incursions.

Goal 3, Performance Measure 2

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

100% 100% 100% 100%

95.3% 96.0% 99.3% 98.8%

93%

94%

95%

96%

97%

98%

99%

100%
2014 Performance and Accountability Report • U.S. Customs and Border Protection 73

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (3): Percent of people apprehended multiple times 

along the Southwest border

This measure examines the percent of deportable individuals who have been apprehended multiple times 

by the Border Patrol. This measure calculates the number of people apprehended multiple times divided 

by the total number of apprehensions of people during a fiscal year. Effective and efficient application of 

consequences for illegal border crossers will, over time, reduce overall recidivism.

Explanation of FY 2014 Results: Recidivism decreased for the fourth year in a row since implementation 

of the Consequence Delivery System (CDS), which guides the consistent application of consequences 

to aliens that enter the U.S. illegally. Efforts to reduce recidivism included applying more effective and 

efficient consequences to illegal aliens with a higher probability of making subsequent illegally entries.

Goal 3, Performance Measure 3

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

<=18% <=17%

16% 14%

12%

13%

14%

15%

16%

17%

18%

19%

20%

N/AN /A
74 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (4): Rate of interdiction effectiveness along the 

Southwest Border between ports of entry

This measure reports the percent of detected illegal entrants who were apprehended or turned back after 

illegally entering the U.S. between the ports of entry on the Southwest border. The Border Patrol achieves 

this desired strategic outcome by maximizing the apprehension of detected illegal entrants or confirming 

that illegal entrants return to the country from which they entered; and by minimizing the number of 

persons who evade apprehension and can no longer be pursued.

Explanation of FY 2014 Results: Recidivism decreased for the fourth year in a row since 

implementation of CDS, which guides the consistent application of consequences to aliens that enter the 

U.S. illegally. Efforts to reduce recidivism included applying more effective and efficient consequences to 

illegal aliens with a higher probability of making subsequent illegally entries. 

Goal 3, Performance Measure 4

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

77.00%

79.28%

76.5%

77.0%

77.5%

78.0%

78.5%

79.0%

79.5%

80.0%

80.5%

N/A N/A N/A
2014 Performance and Accountability Report • U.S. Customs and Border Protection 75

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (8): Amount of smuggled outbound currency seized at 

the ports of entry (in millions)

This measure provides the total dollar amount of all currency in millions seized during outbound 

inspection of exiting passengers and vehicles, both privately-owned and commercial. The scope of this 

measure covers both the Southwest and Northern borders and includes all modes of transportation (land, 

air, and sea).

Explanation of FY 2014 Results: This is a cumulative national-level measure with the target specified as 

the amount of currency to be seized by the end of year. CBP conducted risk-based outbound enforcement 

activities on an ongoing basis.

Goal 3, Performance Measure 8

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

$40.0 $35.0 $30.0 $30.0

$47.0 $31.9 $36.9 $37.7

$20.0

$15.5

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

$50.5
76 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (9): Number of smuggled outbound weapons seized at 

the ports of entry

This measure provides the total number of illegal weapons seized during outbound inspection of exiting 

passengers and vehicles, both privately-owned and commercial. Weapons are defined as pistols, rifleshotgun combinations, rifles, revolvers, shotguns, disguised weapons, machine guns, submachine guns, 

or machine pistols. This includes assembled weapons as well as major pieces of weapons. Seizing weapons 

being smuggled for criminal purposes strengthens border security by preventing the movement of assault 

weapons and ammunition.

Explanation of FY 2014 Results: This is a cumulative national-level measure with the target specified 

as the number of weapons to be seized by the end of the year. CBP conducted risk-based outbound 

enforcement activities on an ongoing basis.

Goal 3, Performance Measure 9

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

400

411

350

400

450

500

550

600

650

700

750

400

731

N/A N/A
2014 Performance and Accountability Report • U.S. Customs and Border Protection 77

Goal 3: Advance Comprehensive Border Security 

and Management

Performance Measure (1): Percent of inbound cargo identified by CBP as 

potentially high-risk that is assessed or scanned prior to departure or at arrival 

at a U.S. port of entry

This measure gauges the percent of international cargo coming to the U.S. via air, land, and sea identified 

as potentially high-risk using the Automated Targeting System (ATS) that is assessed or scanned prior to 

lading or at arrival at a U.S. port of entry. Assessing, resolving, and, when necessary, scanning potentially 

high-risk cargo prior to lading or at arrival at the ports of entry ensures the safety of the U.S. public 

and minimizes the impact to the trade, through the effective use of risk-focused targeting.calculation of 

potentially uncollected duties (the difference between estimated under-collection and overpayment) based 

on statistical sampling.

Explanation of FY 2014 Results: This measure gauges the percent of inbound cargo identified as 

potentially high risk by ATS that is examined prior to arrival at a U.S. port of entry. A small percentage of 

cargo is not reviewed due to status changes en route, information processing and data entry errors, or 

logistical and scheduling anomalies.

Corrective Action: CBP’s OFO will continue to work with the Targeting and Analysis Systems Program 

Directorate and shippers and carriers to identify the reasons that shipments are not reviewed, to resolve 

identified issues, and implement permanent process improvements.

Goal 3, Performance Measure 1

Target

Fiscal Year

Target Met?

Result

FY 2011 FY 2012 FY 2013 FY 2014

Rate

100% 100% 100%

98.00% 98.00% 99.22%

N/A

97.0%

96.5%

97.5%

98.0%

98.5%

99.0%

99.5%

100%
78 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Goal 4: Promote Organizational Integration, 

Innovation and Agility

CBP does not have performance measures that are releasable to the public 

that align to this strategic goal.

Goal 4
Financial Section

This section presents CBP’s audited comparative financial statements, related note disclosures,

and Independent Auditors’ Report.
80 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Message from the Chief Financial Officer

U.S. Customs and Border Protection (CBP) is firmly committed to 

financial management excellence. In Fiscal Year (FY) 2014, CBP 

continued to fulfill its mission of securing our Nation’s borders and 

facilitating international trade and travel while enforcing U.S. laws and 

regulations, despite an extremely challenging budget environment. We 

balance this responsibility with an effective management infrastructure 

that fosters the highest standards of integrity, while maximizing our 

partnerships at home and abroad.

The purpose of this report is to provide a comprehensive assessment of 

our Agency’s financial performance and report on our stewardship of 

CBP’s resources through the integration of mission accomplishments.

In FY 2014, CBP received an Unmodified Audit Opinion on its FY 2014 Financial Statements for 

the ninth year in a row. This unmodified opinion on our financial statements reflects positively 

on CBP’s demonstrated discipline and accountability in the execution of our fiscal stewardship 

responsibilities.

CBP can provide reasonable assurance that the Agency has achieved the objectives of Section 

2 (Management Controls) and Section 4 (Financial Management Systems) of the Federal 

Managers’ Financial Integrity Act with certain exceptions as identified in CBP’s Management 

Assurance Statement. CBP is committed to addressing all of our financial management challenges 

by continuing to implement corrective measures designed to improve our oversight and 

accountability. Through our integrated planning framework, we clearly articulate CBP’s vision and 

mission from our leaders and prioritize financial resources to align with our strategic goals. This 

provides an improved internal structure and processes that promote collaboration and integration 

across the Agency.

CBP continues to correct issues identified by the Financial Statement Audit as well as other 

weaknesses identified through Government Accountability Office, Department of Homeland 

Security Office of Inspector General, or internal management evaluations. 

The diligent work of employees across CBP allows us to maintain our high standards of financial 

stewardship. I would like to thank the men and women of this organization for the hard work 

they do every day. Our goals remain to provide timely, reliable, and useful financial management 

information to the U.S. Congress and the American public to enable the managers across CBP to 

make smart business decisions.

Jaye M. Williams

Chief Financial Officer 

Message from the Chief Financial Officer
2014 Performance and Accountability Report • U.S. Customs and Border Protection 81

Financial Statements

The financial statements have been audited by the independent auditor engaged by the DHS OIG, KPMG 

LLP, who determined that the financial statements are fairly presented in accordance with GAAP.

 The Consolidated Balance Sheets present the property owned by CBP (assets), amounts owed by CBP 

(liabilities), and the amounts of the difference (net position).

 The Consolidated Statements of Net Cost present the net cost of the major CBP programs as they relate 

to the goals of the DHS 2012-2016 Strategic Plan.

 The Consolidated Statements of Changes in Net Position represent those accounting transactions that 

caused the net position of the balance sheet to change from the beginning to the end of the reporting 

period. CBP’s net cost of operations serves to reduce the net position.

 The Combined Statements of Budgetary Resources illustrate how and in what amounts budgetary 

resources were made available, as well as their status at the end of FY 2014.

 The Consolidated Statements of Custodial Activity present non-entity (financial activity conducted by 

CBP on behalf of others) revenue and refunds using a modified cash basis.

Financial Statements
82 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Financial Statements

Customs and Border Protection 

Consolidated Balance Sheets 

As of September 30, 2014 and 2013

(in Thousands) 

2014 2013

ASSETS (Note 2) 

 Intra-governmental:

 Fund Balance with Treasury (Note 3) $ 6,428,244 $ 5,922,817

 Accounts Receivable 44,704 26,584

 Advances and Prepayments (Note 11) 263,800 133,918

 Total Intra-governmental $ 6,736,748 $ 6,083,319

 Cash and Other Monetary Assets (Note 4) 3,644 4,966

 Accounts Receivable, Net (Note 5) 394,940 363,444

 Taxes, Duties and Trade Receivables, Net (Note 6) 3,049,390 2,682,007

 Inventory and Related Property, Net (Note 7)

(Note 7)

202,535 198,365

 General Property, Plant and Equipment, Net (Note 9) 5,787,086 6,198,917

 Other Assets (Note 11) 50 429

TOTAL ASSETS $16,174,393

37,375,688

37,375,6 

37,375,688

XX

$15,531,447

37,375,688

37,375,6 

37,375,688

XX

Stewardship Property, Plant and Equipment (Note 10)

LIABILITIES (Note 12)

 Intra-governmental:

 Accounts Payable $ 161,953 $ 201,859

 Other

 Due to the Treasury General Fund 3,120,838 2,758,418

 Accrued Federal Employees’ Compensation Act Liability (Note 12) 167,449 165,071

 Other Employment Liabilities (Note 12) 206 322

 Employee Benefits and Taxes 58,797 131,955

 Advances From Others 1,570 1,519

 Total Intra-governmental $ 3,510,813 $ 3,259,144

 Accounts Payable 435,027 347,919

 Environmental and Disposal Liabilities (Notes 12 and 14) 20,974 17,524

 Other 

 Accrued Payroll and Benefits (Note 13) 1,621,998 1,475,399

 Refunds Payable (Note 15) 148,522 167,524

 Deferred Revenue 63,331 45,124

 Injured Domestic Industries (Note 15) 128,251 105,052

 Liabilities for Deposit Accounts 283,211 250,328

 Legal Contingent Liabilities (Note 17) 397,844 381,572

TOTAL LIABILITIES $ 6,609,971 

,,

$ 6,049,586

,, Commitments and Contingencies (Note 17)

NET POSITION: 

 Unexpended Appropriations – All Other Funds 3,688,692 3,340,275

 Cumulative Results of Operations – Funds from Dedicated 

 Collections (Note 18)

768,034 641,492

 Cumulative Results of Operations – All Other Funds 5,107,696 5,500,094

TOTAL NET POSITION $ 9,564,422 $ 9,481,861

TOTAL LIABILITIES AND NET POSITION $16,174,393 $15,531,447

The accompanying notes are an integral part of these financial statements. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 83

Customs and Border Protection 

Consolidated Statements of Net Cost

For the Years Ended September 30, 2014 and 2013 

(in Thousands) 

2014 2013

Securing America’s Borders

 Gross Cost $ 5,750,055 $ 5,142,124

 Less: Earned Revenue 102,039 9,251

 Net Program Costs $ 5,648,016 $ 5,132,873

Securing and Expediting Trade

 Gross Cost 2,755,931 3,101,084

 Less: Earned Revenue 45,866 137,613

 Net Program Costs $ 2,710,065 $ 2,963,471

Securing and Expediting Travel

 Gross Cost 4,049,378 3,973,194

 Less: Earned Revenue 75,745 90,662

 Net Program Costs $ 3,973,633 $ 3,882,532

Intelligence and Targeting

 Gross Cost 586,334 574,881

 Less: Earned Revenue 6,339 2,656

 Net Program Costs $ 579,995 $ 572,225

Total Gross Cost 13,141,698 12,791,283

Less: Total Earned Revenue 229,989 240,182

Net Cost of Operations (Notes 19 and 20) $12,911,709 $12,551,101

The accompanying notes are an integral part of these financial statements. 
84 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Consolidated Statement of Changes In Net Position 

For the Year Ended September 30, 2014 

(in Thousands) 

FY 2014

Funds from 

Dedicated 

Collections

All Other

Funds

Consolidated 

Total

Cumulative Results of Operations:

 Beginning Balances $ 641,492 $ 5,500,094 $ 6,141,586

Budgetary Financing Sources:

 Other Adjustments -- 16,779 16,779

 Appropriations Used -- 7,783,637 7,783,637

 Non-exchange Revenue (Note 21) 822,288 8,062 830,350

 Transfers In/Out Without Reimbursement (Note 21) (2,381,699) 2,630,045 248,346

Other Financing Sources (Non-exchange):

 Transfers In/Out Without Reimbursement (390) 42,546 42,156

 Imputed Financing -- 685,831 685,831

 Other (Note 21) 3,026,203 12,551 3,038,754

Total Financing Sources $ 1,466,402 $ 11,179,451 $ 12,645,853

Net Cost of Operations (1,339,860) (11,571,849) (12,911,709)

Net Change $ 126,542 $ (392,398) $ (265,856)

Cumulative Results of Operations 768,034 5,107,696 5,875,730

Unexpended Appropriations:

 Beginning Balance $ -- $ 3,340,275 $ 3,340,275

Budgetary Financing Sources:

 Appropriations Received (Note 23) -- 8,315,139 8,315,139

 Appropriations Transferred In/Out -- 5,655 5,655

 Other Adjustments (Note 23) -- (188,740) (188,740)

 Appropriations Used -- (7,783,637) (7,783,637)

Total Budgetary Financing Sources $ -- $ 348,417 $ 348,417

Total Unexpended Appropriations $ -- $ 3,688,692 $ 3,688,692

Net Position $ 768,034 $ 8,796,388 $ 9,564,422

The accompanying notes are an integral part of these financial statements. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 85

Customs and Border Protection 

Consolidated Statement of Changes In Net Position 

For the Year Ended September 30, 2013 

(in Thousands) 

FY 2013

Funds from

Dedicated 

Collections

All Other 

Funds

Consolidated 

Total

Cumulative Results of Operations:

 Beginning Balances $ 434,672 $ 5,541,523 $ 5,976,195

Budgetary Financing Sources:

 Appropriations Used -- 8,015,477 8,015,477

 Non-exchange Revenue (Note 21) 605,005 7,754 612,759

 Transfers In/Out Without Reimbursement (Note 21) (2,284,561) 2,527,939 243,378

Other Financing Sources (Non-exchange):

 Transfers In/Out Without Reimbursement -- 36,425 36,425

 Imputed Financing -- 598,159 598,159

 Other (Note 21) 3,046,620 163,674 3,210,294

Total Financing Sources $ 1,367,064 $ 11,349,428 $ 12,716,492

Net Cost of Operations (1,160,244) (11,390,857) (12,551,101)

Net Change $ 206,820 $ (41,429) $ 165,391

Cumulative Results of Operations $ 641,492 $ 5,500,094 $ 6,141,586

Unexpended Appropriations:

 Beginning Balance $ -- $ 3,809,738 $ 3,809,738

Budgetary Financing Sources:

 Appropriations Received (Note 23) -- 8,200,559 8,200,559

 Appropriations Transferred In/Out -- 28,767 28,767

 Other Adjustments (Note 23) -- (683,312) (683,312)

 Appropriations Used -- (8,015,477) (8,015,477)

) Total Budgetary Financing Sources $ -- $ (469,463) $ (469,463)

Total Unexpended Appropriations $ -- $ 3,340,275 $ 3,340,275

Net Position $ 641,492 $ 8,840,369 $ 9,481,861

The accompanying notes are an integral part of these financial statements. 
86 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Combined Statements of Budgetary Resources 

For the Years Ended September 30, 2014 and 2013 

(in Thousands) 

2014 2013

Budgetary Resources:

Unobligated balance brought forward, October 1 $ 1,292,312 $ 1,310,864

Recoveries of prior year unpaid obligations 344,049 389,321

Other changes in unobligated balance (115,001) (95,947)

Unobligated balance from prior year budget authority, net $ 1,521,360 $ 1,604,238

Appropriations (Note 23) 13,978,189 12,953,010

Spending authority from offsetting collections 1,754,183 1,597,568

Total Budgetary Resources $ 17,253,732 $ 16,154,816

Status of Budgetary Resources:

Obligations incurred (Note 22) $ 15,693,839 $ 14,862,504

Unobligated balance, end of year:

 Apportioned 1,017,432 717,874

 Unapportioned 542,461 574,438

Total unobligated balance, end of year $ 1,559,893 $ 1,292,312

Total Budgetary Resources $ 17,253,732 $ 16,154,816

Change in Obligated Balance:

Unpaid Obligations:

 Unpaid obligations, brought forward, October 1 (gross) $ 3,521,005 $ 4,157,480

 Obligations incurred (Note 22) 15,693,839 14,862,504

 Outlays (gross) (15,219,385) (15,109,658)

 Recoveries of prior year unpaid obligations (344,049) (389,321)

 Unpaid obligations, end of year (gross) 3,651,410 3,521,005

Uncollected Payments:

 Uncollected customer payments from Federal sources, brought 

 forward, October 1 (151,759) (162,620)

 Change in uncollected customer payments from Federal sources 5,553 10,861

 Uncollected customer payments from Federal sources, end of year (146,206) (151,759)

Obligated Balance, Start of Year $ 3,369,246 $ 3,994,860

Obligated Balance, End of Year $ 3,505,204 $ 3,369,246

Budget Authority and Outlays, Net:

Budget authority, gross $ 15,732,372 $ 14,550,578

Actual offsetting collections (1,759,736) (1,608,429)

Change in uncollected customer payments from Federal sources 5,553 10,861

Budget Authority, Net $ 13,978,189 $ 12,953,010

The accompanying notes are an integral part of these financial statements. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 87

Customs and Border Protection 

Combined Statements of Budgetary Resources 

For the Years Ended September 30, 2014 and 2013 

(in Thousands) 

2014 2013

Outlays, gross $15,219,385 $15,109,658 

Actual offsetting collections (1,759,736) (1,608,429)

Outlays, net $13,459,649 $13,501,229

Distributed offsetting receipts (3,919,289) (3,776,910)

Agency Outlays, Net $ 9,540,360 $ 9,724,319

The accompanying notes are an integral part of these financial statements. 
88 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Consolidated Statements of Custodial Activity 

For the Years Ended September 30, 2014 and 2013 

(in Thousands) 

2014 2013

Revenue Activity (Note 27):

 Sources of Cash Collections:

 Duties $33,903,818 $31,709,053

 User Fees 1,556,122 1,567,987

 Excise Taxes 3,272,758 3,162,638

 Fines and Penalties 57,070 61,265

 Interest 59,296 (41,456)

 Miscellaneous 177,064 144,392

 Total Cash Collections $39,026,128 $36,603,879

 Accrual Adjustments (+/-) 328,435 221,931

Total Custodial Revenue $39,354,563 $36,825,810 

Disposition of Collections:

 Transferred to Others:

 Treasury General Fund Accounts $25,293,394 $23,662,443 

 U.S. Department of Agriculture 10,338,504 9,694,052

 U.S. Army Corps of Engineers 1,510,343 1,523,171

 Other Federal Agencies 103,694 97,560

 Government of Puerto Rico -- 6,094

 Non-Federal Other 133,540 72,036

 (Increase)/Decrease in Amounts Yet to be Transferred 439,396 271,543

 Refunds and Drawbacks (Note 27) 1,535,692 1,498,911

Total Disposition of Collections $39,354,563 $36,825,810

Net Custodial Activity $ -- $ --

 

The accompanying notes are an integral part of these financial statements. 

Financial Statements
2014 Performance and Accountability Report • U.S. Customs and Border Protection 89

Notes to Financial Statements

Customs and Border Protection 

Notes to Financial Statements 

1. Significant Accounting Policies 

Reporting Entity 

U.S. Customs and Border Protection (CBP) was created on March 1, 2003, and is a component of the U.S. 

Department of Homeland Security (DHS). CBP is the unified border agency whose priority mission is the prevention 

of terrorists and terrorists’ weapons from entering the U.S. In addition to its priority mission, CBP works to protect 

America and its citizens by carrying out its traditional missions more effectively using innovative approaches. These 

traditional missions include enforcing United States trade, immigration and other laws at the borders. Trade-related 

mission activities include protecting American businesses from theft of their intellectual property and unfair trade 

practices; regulating and facilitating international trade; collecting import duties; enforcing trade laws related to 

admissibility; regulating trade practices to collect the appropriate revenue; and maintaining export controls. Other 

traditional missions include controlling the borders by apprehending individuals attempting to enter the United States 

illegally; stemming the flow of illegal drugs and other contraband; protecting agriculture and economic interests from 

harmful pests and diseases; processing all people, vehicles and cargo entering the United States; and coordinating 

with the Department of Defense and others to protect the National Capital Region. 

Substantially all duty, tax, and fee revenues collected by CBP are remitted to various general fund accounts 

maintained by the U.S. Department of the Treasury (Treasury), U.S. Department of Agriculture, and U.S. Army Corps 

of Engineers. Treasury further distributes these revenues to other Federal agencies in accordance with various laws 

and regulations. CBP transfers the remaining revenue (generally less than one percent of revenues collected) 

directly to other Federal agencies, the Government of Puerto Rico and the U.S. Virgin Islands. Refunds of revenues 

collected from import/export activity are recorded in separate accounts established for this purpose and are funded 

through a permanent, indefinite appropriation. These activities reflect the non-entity or custodial responsibilities that 

CBP, as an agency of the Federal Government, has been authorized by law to enforce. 

Basis of Accounting and Presentation 

These financial statements have been prepared from CBP’s accounting records in conformity with generally 

accepted accounting principles (GAAP). The Federal Accounting Standards Advisory Board (FASAB), which was 

designated the official accounting standard-setting body of the Federal Government by the American Institute of 

Certified Public Accountants, is responsible for identifying the GAAP hierarchy for Federal reporting entities. FASAB 

has identified the hierarchy to be used in Statement of Federal Financial Accounting Standards (SFFAS) 34, “The 

Hierarchy of Generally Accepted Accounting Principles, including the Application of Standards Issued by the 

Financial Accounting Standards Board.” 

The statements consist of the Consolidated Balance Sheets, Consolidated Statements of Net Cost, Consolidated 

Statements of Changes In Net Position, Combined Statements of Budgetary Resources, and Consolidated 

Statements of Custodial Activity. All statements are prepared in accordance with Office of Management and Budget 

(OMB) Circular A-136. 

These financial statements should be read with the understanding that CBP is a component of a sovereign entity; for 

which budgetary resources cannot be liquidated without the enactment of an appropriation, and that payment of 

liabilities other than for contracts can be abrogated by the sovereign entity. 

These financial statements, with respect to the Consolidated Balance Sheets, Consolidated Statements of Net Cost 

and Consolidated Statements of Changes In Net Position, are reported using the accrual basis of accounting. Under 

the accrual basis of accounting, revenues are recognized when earned and expenses are recognized when a liability 

is incurred without regard to receipt or payment of cash. The Combined Statements of Budgetary Resources are 

reported using the budgetary basis of accounting. Budgetary accounting facilitates compliance with legal constraints 

and controls over the use of Federal funds. It generally differs from the accrual basis of accounting in that obligations 

are recognized when new orders are placed, contracts awarded and services received that will require payments 

during the same or a future period. CBP non-entity revenue and refunds are reported on the Consolidated 

Statements of Custodial Activity using a modified cash basis. With this method, revenue from cash collections is 

reported separately from receivable accruals and cash disbursements are reported separately from payable accruals. 

Notes to Financial Statements
90 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

In accordance with OMB Circular A-136, intra-CBP transactions and balances have been eliminated from the 

Consolidated Balance Sheets, Consolidated Statements of Net Cost, and the Consolidated Statements of Changes 

In Net Position. As provided for by OMB Circular A-136, the Combined Statements of Budgetary Resources is 

presented on a combined basis; therefore, intra-CBP transactions and balances have not been eliminated from this 

statement. 

Funds from Dedicated Collections 

SFFAS No. 27, Identifying and Reporting Earmarked Funds as amended by SFFAS No. 43, Funds from Dedicated 

Collections, requires CBP to identify and report separately funds from dedicated collections. See Note 18, Funds 

from Dedicated Collections, for specific required disclosures related to CBP’s funds from dedicated collections. 

CBP has program management responsibility for the following funds from dedicated collections: 

Appropriation Title

70X4363 Enhanced Inspectional Services

70X5087 Customs and Border Protection, Immigration User Fees

70X5089 Land Border Inspection Fees

70X5451 Enforcement Fines Account

70X5543 International Registered Traveler

70X5569 APEC Business Travel Card Fee

70X5595 Electronic Systems for Travel Authorization Fees

70X5694 Small Airports User Fees

70X5695 Customs User Fees Account

70X8870 Harbor Maintenance Fee Collections

Assets and Liabilities 

Intra-governmental assets and liabilities result from activity with other Federal agencies. All other assets and 

liabilities result from activity with parties outside the Federal Government, such as domestic and foreign persons, 

organizations or governments. 

Fund Balance with Treasury

Entity Fund Balance with Treasury represents funds remaining from which CBP is authorized to make expenditures 

and pay liabilities resulting from operational activity, except as restricted by law. Non-entity Fund Balance with 

Treasury represents funds available to pay refunds and drawbacks claims of duties, taxes, fees, and other non-entity 

amounts to be distributed to the Treasury General Fund and other Federal accounts in a future period. 

Advances and Prepayments 

Intra-governmental advances and prepayments consist of amounts paid to Federal agencies prior to CBP’s receipt of 

goods and services. Advances and prepayments to the public consist primarily of travel and salary advances. 

Accounts Receivable 

Intra-governmental accounts receivable represent amounts due from Federal agencies. These receivables are 

expected to be fully collected. Accounts receivable from reimbursable services and user fees represent amounts due 

from non-Federal sources for services performed. By law, collections of these receivables can be credited to the 

appropriation accounts from which the related costs were paid. These receivables are net of amounts deemed 

uncollectible, which are determined by considering the debtor’s current ability to pay, payment record, as well as the 

probable recovery of amounts from secondary sources, such as sureties, and an analysis of aged receivable activity. 

The user fee receivable is based on a calculated estimate using historical user fee collections. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 91

Customs and Border Protection 

Notes to Financial Statements 

Title 19 of the United States Code, chapter 1, section 58c, authorizes CBP, formerly known as the United States 

Customs Service, to collect user fees for services provided in connection with the processing of commercial air and 

commercial vessel passengers, loaded or partially loaded railroad cars carrying passengers or commercial flights 

arriving into the Customs territory as defined in general note 2 of the Harmonized Tariff Schedule of the United 

States (some exceptions apply). 

Title 8 of the United States Code, chapter 12, subchapter II, part IX, section 1356, authorizes CBP to collect 

immigration user fees for inspection or pre-inspection of passengers arriving at a port of entry in the United States 

(as defined in Title 8, chapter 12, subchapter I, section 1101) aboard a commercial aircraft and commercial vessel 

(some exceptions apply). Receivables accrue for commercial airline and commercial vessel user fees on a quarterly 

basis. Payment is due any time within thirty-one days after the quarter in which the fees are collected, except the 

July and August fees collected from airline passengers shall be made ten days before the end of the fiscal year. 

Each quarterly payment shall include any collection made in the preceding quarter that was not remitted with the 

previous payment. Railroad car fees accrue on a monthly basis and the payments are due to CBP after the end of 

the applicable month. 

Taxes, Duties and Trade Receivables

Taxes, Duties and Trade Receivables consist of duties, user fees, fines and penalties, refunds and drawbacks 

overpayments, and interest associated with import/export activity, that have been established as specifically 

identifiable, legally enforceable claims that remain uncollected as of year-end. These receivables are net of amounts 

deemed uncollectible, which were determined by considering the debtor’s payment record and ability to pay, the 

probable recovery of amounts from secondary sources, such as sureties, and an analysis of aged receivable activity. 

CBP’s non-entity receivables are described in more detail in Note 6, Taxes, Duties and Trade Receivables, Net. 

Inventory and Related Property 

Inventory and Related Property consists of aircraft parts, vessel parts, Office of Technology Innovation and 

Acquisition (OTIA) parts, and CBP uniforms classified as operating materials and supplies to be used in CBP’s 

operations. Aircraft and OTIA parts and materials are recorded at average unit cost, and vessel parts and uniforms 

are recorded using the First-In-First-Out valuation method. Both methods approximate actual acquisition costs. CBP 

accounts for inventory using the consumption method and records an operating expense when inventory is ultimately 

used in operations. 

Seized and Forfeited Property 

Prohibited seized and forfeited property results primarily from U.S. Immigrations and Customs Enforcement’s (ICE) 

criminal investigations and from CBP’s seizures during passenger and cargo processing. Seized property is not 

considered an asset of CBP and is not reported as such in CBP’s financial statements; however, CBP has a 

stewardship responsibility until disposition of the seized items is determined. Non-prohibited seized property, 

including monetary instruments, real property and tangible personal property of others in the actual or constructive 

possession of CBP is transferred to the Treasury Forfeiture Fund and is not presented in the accompanying CBP 

Consolidated Balance Sheets or Note 8, Seized and Forfeited Property. 

Forfeited property is property for which title has passed to the U.S. Government. As noted above, non-prohibited 

forfeited property or currency become assets of the Treasury Forfeiture Fund. However, prohibited forfeited items, 

such as narcotics, firearms, and counterfeit goods, are held by CBP until disposed or destroyed. In accordance with 

SFFAS No. 3, Accounting for Inventory and Related Property, an analysis of changes in CBP’s seized and forfeited 

prohibited property is presented in Note 8, Seized and Forfeited Property.
92 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

General Property, Plant and Equipment 

CBP capitalizes property, plant and equipment (PP&E), excluding land, with an acquisition value of $50 thousand or 

greater, and a useful life of two years or greater. CBP capitalizes all land. 

CBP estimates a portion of the Construction in Progress balance to accrue amounts for work completed but not yet 

recorded. The estimate is calculated by applying the percentage of work completed on a construction project to the 

associated undelivered orders. 

Expenditures for normal repairs and maintenance are charged to expense as incurred. When expenditures greater 

than $50 thousand extend an asset’s useful life they are capitalized. 

Depreciation and amortization are computed using the straight line method over the estimated useful lives of the 

assets ranging from 4 to 30 years for equipment and software, 2 to 30 years for leasehold improvements, and 5 to 40 

years for buildings, structures and land improvements. Amortization of capitalized software begins on the date of 

acquisition if purchased or when the module or component has been successfully tested if contractor or internally 

developed. 

Accounts Payable 

A portion of the accounts payable balance related to commercial vendors and travel activities is estimated and 

recorded through an accrual. This estimate is created using a historical ratio of subsequent disbursements to 

undelivered orders. The ratio is then applied to the year-end undelivered order balance to arrive at estimated 

accounts payable. 

Due to the Treasury General Fund 

Due to the Treasury General Fund is the offsetting liability to non-entity collections and non-entity receivables. 

Accrued Annual, Sick and Other Leave and Compensatory Time 

Annual leave, compensatory time and other leave time are accrued when earned. The accrual is presented as a 

component of the payroll and benefits liability in the Consolidated Balance Sheets and is adjusted for changes in 

compensation rates and reduced for annual leave taken. Sick leave is expensed when used. For additional 

information see Note 13, Accrued Payroll and Benefits. 

Pension Costs, Other Retirement Benefits and Other Post-Employment Benefits 

Most CBP employees hired prior to January 1, 1984 participate in the Civil Service Retirement System (CSRS). CBP 

contributes 7 percent of base pay for regular employees, and 7.5 percent for law enforcement agents. Employees 

hired after December 31, 1983 are automatically covered by the Federal Employees’ Retirement System (FERS) and 

Social Security. A primary feature of FERS is that it offers a savings plan to which CBP automatically contributes 1 

percent of base pay and matches any employee contributions up to an additional 4 percent of base pay. For most 

employees hired after December 31, 1983, CBP also contributes the employees’ matching share for Social Security. 

For the FERS basic benefit for employees hired before January 1, 2013, CBP contributes 11.9 percent of base pay 

for regular employees and 26.3 percent for law enforcement agents. For the FERS basic benefit for employees hired 

after December 31, 2012, CBP contributes 9.6 percent of base pay for regular employees and 24 percent for law 

enforcement agents. The pay base for determining CBP contributions to CSRS and FERS for inspectors and canine 

officers includes regular pay and up to a maximum of $17.5 thousand in certain overtime earnings for FY 2014 and 

2013. CBP recognizes the full costs of its employees’ pension benefits including the portion paid by the Office of 

Personnel Management (OPM) as required by law; however, the liability associated with these costs is recognized by 

OPM. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 93

Customs and Border Protection 

Notes to Financial Statements 

Similar to Federal retirement plans, OPM, rather than CBP, reports the liability for future payments to retired 

employees who participate in the Federal Employees Health Benefits Program and the Federal Employees Group 

Life Insurance Program. 

A liability for other post-employment benefits, which includes all types of benefits to former or inactive (but not retired) 

employees, their beneficiaries, and covered dependents, is also recognized. For additional information see Note 13, 

Accrued Payroll and Benefits. 

Workers' Compensation and Unemployment Compensation 

A liability is recorded for actual and estimated future payments to be made for workers’ compensation pursuant to the 

Federal Employees’ Compensation Act (FECA). The FECA program is administered by the U.S. Department of 

Labor (DOL), which initially pays valid claims and subsequently seeks reimbursement from Federal agencies 

employing the claimants. Reimbursement to DOL for payments made usually occurs approximately two fiscal years 

subsequent to the actual disbursement. Budgetary resources for this intra-governmental liability are made available 

to CBP as part of its annual appropriation from Congress in the year in which the reimbursement takes place. The 

liability under which unfunded FECA is recorded is entitled Accrued FECA Liability and actuarial FECA is recorded in 

Accrued Payroll and Benefits in the accompanying Consolidated Balance Sheets. 

Additionally, the actuarial liability due to the public for estimated future payments includes the expected liability for 

death, disability, medical and miscellaneous costs for approved compensation cases. The liability is determined 

using a method that utilizes historical benefit payment patterns related to a specific incurred period to predict the 

ultimate payments related to that period. Based on information provided by DOL, DHS allocates the actuarial liability 

to its components and department offices based on the payment history for the components and department offices. 

The actuarial liability is not covered by budgetary resources and will require future funding. For additional information 

see Note 13, Accrued Payroll and Benefits. 

A liability is also recorded for unemployment compensation owed to DOL for payments made to former CBP 

employees. The Unemployment Compensation for Federal Employees program provides benefits for unemployed 

former Federal employees and is administered by states as agents for the Federal government. DOL reimburses the 

states for benefits paid and then charges Federal agencies for reimbursement for their former employees’ benefits 

payments. The unemployment compensation liability is reported as Intra-governmental Other Employment Liabilities.

Unexpended Appropriations

Unexpended appropriations represent the amount of CBP unexpended appropriated spending authority as of fiscal 

year-end that is unliquidated or is unobligated and has not lapsed, been rescinded or withdrawn. 

Cumulative Results of Operations

Cumulative Results of Operations primarily represent the excess of user fee revenues over related expenses. It also 

represents the net investment in Property, Plant and Equipment, Inventory and Related Property, and transfers in of 

equipment, materials, and supplies from other Federal agencies without reimbursement. Also, included as a 

reduction in Cumulative Results of Operations, are liabilities incurred, which will require funding from future 

appropriations, such as accumulated annual and other leave earned but not taken, accrued workers’ compensation 

and contingent liabilities. The portion of Cumulative Results of Operations attributable to dedicated collections is 

shown separately on both the Consolidated Balance Sheets and the Consolidated Statements of Changes in Net 

Position. For additional information see Note 18, Funds from Dedicated Collections. 

Revenue, Financing Sources and Expense Recognition

CBP entity activities are financed principally through appropriations, exchange revenue and non-exchange revenue. 

Appropriations used are recognized as a financing source when expenses are incurred or assets are purchased. 

Exchange revenues from reimbursable services and intra-governmental reimbursable activity are recognized as 

earned when the goods or services are provided and reflect the full cost of the goods or services provided. Nonexchange revenue from user fees is recognized as earned in accordance with the Consolidated Omnibus Budget 
94 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

Reconciliation Act of 1985, as amended. CBP may retain the user fee revenues and expend them as authorized by 

law for CBP inspector overtime and other activities directly related to the services to which the fees relate. CBP 

records deferred revenue for payments received from duties collected in Puerto Rico for which goods or services 

have not been fully provided to the Government of Puerto Rico. Deferred revenue is reported as a liability on the 

Consolidated Balance Sheets until earned in a future year. An imputed financing source is also recognized to offset 

costs incurred by CBP but funded by another Federal source, generally in the period in which the cost was incurred. 

Expenses are recognized when goods or services are received, when inventory is used, or assets are depreciated or 

amortized. 

The activities reported on the Consolidated Statements of Net Cost contain all resource costs assigned from CBP 

cost centers. An activity-based costing system derives an estimate of the agency’s cost by activity performed. The 

key driver behind CBP’s allocation of cost to activity is labor hours. Each pay period, all CBP personnel log their time 

to one or more of several hundred distinct activities. Time recorded by operational cost center is also used to assign 

mission support and overhead costs to field operational cost center activities. The time and attendance system used 

to record personnel labor hours is COSS (Customs Overtime Scheduling System).

Non-entity Revenue is recognized when the cash CBP is entitled to collect on behalf of the Federal Government is 

earned. Primarily, these revenue collections result from current fiscal year activities. The significant types of 

revenues collected and related disbursements are described below: 

 Duties: amounts collected on imported goods. 

 User fees: amounts collected for certain services as provided by law. 

 Excise taxes: amounts collected on imported distilled spirits, wines and tobacco products, and other 

miscellaneous taxes collected. 

 Fines and penalties: amounts collected for violations of laws and regulations. 

 Refunds: payments made to importers/exporters are primarily identified when the import entries are 

liquidated, a process in which CBP makes final determination of duties, taxes, fees and interest owed on 

each entry and compares it to the estimated amount previously determined and paid by the importer/broker. 

Interest is included in the refund generally for the period of time between when the estimated amounts were 

received from the importer/broker and the time the entry is liquidated. When a refund is identified prior to 

liquidation, the refund from this remittance is funded from the duty, tax or fee collections rather than from the 

Refunds and Drawbacks Account. 

 Drawbacks: remittances, in whole or in part, of duties, taxes or fees. Drawback occurs when the imported 

goods on which duties, taxes or fees have been previously paid are subsequently exported from the United 

States or destroyed prior to entering the commerce of the United States. Depending on the type of claim, the 

claimant has up to six or eight years from the date of importation to file for drawback. 

CBP receives an annual permanent, indefinite appropriation to fund refunds and drawbacks payments. The 

appropriation is recorded as a liability to Treasury General Fund, which is reduced as payments are made. Any 

unobligated balance at year-end is returned to Treasury. 

A transfer to the Treasury General Fund is recognized when the non-entity revenue, collected on behalf of the 

Federal Government, is deposited into various Treasury receipt accounts designated for the particular type of 

revenue collected. 

An accrual adjustment is included to adjust cash collections and refund disbursements with the net increase or 

decrease of accrued Non-entity Accounts Receivable, net of uncollectible amounts and refunds payable.

Use of Estimates

Management has made certain estimates and assumptions in the reporting of assets, liabilities and note disclosures 

in the Consolidated Balance Sheets, Consolidated Statements of Net Cost, Consolidated Statements of Changes in 

Net Position, Combined Statements of Budgetary Resources, Consolidated Statements of Custodial Activity and 

accompanying notes. Actual results could differ from these estimates. Significant estimates include: year-end 

accruals of accounts payable, contingent legal and environmental liabilities, actuarial workers’ compensation, 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 95

Customs and Border Protection 

Notes to Financial Statements 

allowance for doubtful taxes, duties and trade receivables, accruals for construction projects, retirement and postretirement benefits assumptions, and certain non-entity receivables and payables related to custodial activities. 

Taxes

CBP, as a Federal entity, is not subject to Federal, state or local income taxes and accordingly, no provision for 

income taxes has been recorded in the accompanying financial statements. 

2. Non-entity Assets 

Non-entity assets as of September 30, 2014 and 2013, consist of the following (in thousands): 

2014 2013

Intra-governmental:

Fund Balance with Treasury (Note 3) $ 621,854 $ 595,684

Public

Cash and Other Monetary Assets (Note 4) 3,260 4,580

Accounts Receivable, Net 678 588

Taxes, Duties and Trade Receivables, Net (Note 6) 3,049,390 2,682,007

Total Public $ 3,053,328 $ 2,687,175

Total Non-entity Assets 3,675,182 3,282,859

Total Entity Assets 12,499,211 12,248,588

Total Assets $16,174,393 $15,531,447

 

Non-entity Fund Balance with Treasury as of September 30, 2014 and 2013 includes approximately $273.2 million

and $238.6 million (deposit funds) in duties collected by CBP for U.S. Virgin Islands, U.S. Department of Agriculture 

and antidumping/countervailing duties and $199.3 million and $181.4 million (special funds) for Injured Domestic 

Industries as of September 30, 2014 and 2013, respectively. These assets are directly offset with liabilities as of 

September 30, 2014 and 2013. 

Non-entity Fund Balance with Treasury consists of special and deposit funds, permanent appropriations, and 

miscellaneous receipts that are available to pay non-entity liabilities. Taxes, Duties and Trade receivables from the 

public represent amounts due from importers for goods and merchandise imported to the United States. Upon 

collection of these receivables, the funds will be available to pay the accrued intra-governmental liability Due to the 

Treasury General Fund, which equaled $3.1 billion and $2.8 billion as of September 30, 2014 and 2013, respectively. 

3. Fund Balance with Treasury 

Fund Balance with Treasury as of September 30, 2014 and 2013 consists of the following (in thousands): 

2014 Entity Non-entity Total

Trust Funds $ 1,183 $ -- $ 1,183

Special Funds 620,994 199,325 820,319

General Funds 4,163,456 149,333 4,312,789

Other Funds 1,012,197 -- 1,012,197

Deposit Funds 8,560 273,196 281,756

Total $5,806,390 $621,854 $6,428,244
96 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

2013 Entity Non-entity Total

Trust Funds $ 184 $ -- $ 184

Special Funds 475,305 181,398 656,703

General Funds 3,882,869 175,731 4,058,600

Other Funds 958,302 -- 958,302 

Deposit Funds 10,473 238,555 249,028

Total $5,327,133 $595,684 $5,922,817

Trust funds are both receipt accounts and expenditure accounts that are designated by law as trust funds. The entity 

trust fund balances result from CBP’s authority to use the proceeds from general order items sold at auction to offset 

specific costs incurred by CBP relating to their sale, and to use available funds from the Harbor Maintenance Fee 

Trust Fund to offset administrative expenses related to the collection of the Harbor Maintenance Fee. 

Special funds are receipt funds used for specific purposes. Entity amounts comprising the special fund balances 

result from CBP’s authority to assess and collect passenger and conveyance-related user fees, CBP’s authority to 

assess and collect fees associated with services performed at certain small airports or other facilities, and CBP’s

authority to retain amounts needed to offset costs associated with collecting duties, taxes, and fees for the 

Government of Puerto Rico. As of September 30, 2014 and 2013, Customs User Fees Account includes 

approximately $139.3 million and $110.9 million, respectively; Small Airports User Fees account contained 

approximately $15.9 million and $17.3 million, respectively; Refunds, Transfers and Expenses of Operation of Puerto 

Rico account contained approximately $289.9 million and $207.0 million, respectively; and Immigration User Fees 

contained $12.0 million and $8.6 million, respectively. Non-entity fund balance represents amounts collected in 

connection with antidumping and countervailing duties of $198.2 million and $180.6 million as of September 30, 2014 

and 2013, respectively. Of this balance, $128.3 million and $105.1 million are eligible for payment to qualifying 

Injured Domestic Industries as of September 30, 2014 and 2013, respectively. The remaining amount is Due to the 

Treasury General Fund. 

General funds consist of amounts appropriated annually by Congress to fund the operations of CBP. The non-entity 

general fund balance represents permanent, indefinite appropriations to pay refunds and drawbacks claims of duties, 

taxes, or fees. The balance is presented as a non-entity balance because the refund and drawback payments are 

associated with CBP custodial activity of collecting revenue on behalf of the Federal Government. 

The entity deposit fund balance represents amounts received as advances that are not accompanied by orders. 

Once the order is received, the deposit fund balance is decreased. 

Status of Fund Balance with Treasury as of September 30, 2014 and 2013 consists of the following (in thousands): 

2014 Entity Non-entity Total

Unobligated Balance

 Available $1,017,232 $ 16 $1,017,248

 Unavailable 400,211 199,310 599,521

Obligated Balance not yet Disbursed 3,355,871 149,332 3,505,203

Non-budgetary FBWT 1,033,076 273,196 1,306,272

Total $5,806,390 $621,854 $6,428,244
2014 Performance and Accountability Report • U.S. Customs and Border Protection 97

Customs and Border Protection 

Notes to Financial Statements 

2013 Entity Non-entity Total

Unobligated Balance

 Available $ 717,720 $ -- $ 717,720

 Unavailable 426,518 181,398 607,916 

Obligated Balance not yet Disbursed 3,193,516 175,731 3,369,247

Non-budgetary FBWT 989,379 238,555 1,227,934

Total $5,327,133 $595,684 $5,922,817

Portions of the Unobligated Balance Unavailable include amounts appropriated in prior fiscal years that are not 

available to fund new obligations. However, the amounts can be used for upward and downward adjustments for 

existing obligations in future years. 

The Obligated Balance not yet Disbursed represents amounts designated for payment of goods or services ordered, 

but not received, or goods and services received for which payment has not yet been made. 

The Non-budgetary Fund Balance with Treasury at September 30, 2014 and 2013 includes $639.9 million in COBRA 

User Fees that are restricted by law for use until either withdrawn by Treasury from CBP’s account or made available 

to CBP, as provided in Appropriation Acts. The balance resulted from a temporary fee increase and elimination of 

the North American Free Trade Agreement (NAFTA) country exemptions from 1994 to 1997. 

CBP returned to Treasury $64.4 million and $13.8 million for indefinite no-year authority and retained $149.3 million

and $175.7 million in authority for obligations pursuant to public law during the years ending September 30, 2014 and 

2013, respectively. 

In accordance with Public Law 101-510, CBP is required to automatically cancel obligated and unobligated balances 

of appropriated funds five years after a fund expires. Obligations that have not been paid at the time an 

appropriation is canceled may be paid from an unexpired appropriation that is available for the same general 

purpose. As of September 30, 2014, CBP canceled $120.4 million from FY 2009 annual appropriations. As of 

September 30, 2013, CBP canceled $102.8 million from FY 2008 annual appropriations. 

4. Cash and Other Monetary Assets 

Cash and Other Monetary Assets as of September 30, 2014 and 2013, consist of the following (in thousands): 

2014 Entity Non-entity Total

Imprest Funds $ 185 $ -- $ 185

Undeposited Collections 199 3,260 3,459

Total $ 384 $3,260 $3,644

 

2013 Entity Non-entity Total

Imprest Funds $ 154 $ -- $ 154 

Undeposited Collections 232 4,580 4,812 

Total $ 386 $4,580 $4,966

Imprest funds are cash held primarily for change-making and for using as aids in training canines to detect the odor 

of currency. Undeposited collection balances represent timing differences between when cash relating to duties, 

taxes, fees, and other trade related collections are received and the deposit occurs in a future period. Cash can 

either be distributed to the General Fund, other Federal agencies, other governments, or returned to the 

importer/broker. 
98 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

5. Accounts Receivable, Net 

Receivables with the public as of September 30, 2014 and 2013 are as follows (in thousands): 

2014

Receivable Category

Gross 

Receivable

Amounts 

Uncollectible

Total Net 

Receivables

Reimbursable Services $ 9,426 $ -- $ 9,426

Customs User Fees 313,379 (2,570) 310,809

Immigration User Fees 84,471 (9,766) 74,705

Total $407,276 $(12,336) $394,940

2013

Receivable Category

Gross 

Receivable

Amounts 

Uncollectible

Total Net 

Receivables

Reimbursable Services $ 6,542 $ (1,425) $ 5,117

Customs User Fees 294,069 (2,288) 291,781

Immigration User Fees 75,062 (8,516) 66,546

Total $375,673 $(12,229) $363,444

6. Taxes, Duties and Trade Receivables, Net 

Receivables as of September 30, 2014 and 2013 are as follows (in thousands): 

2014

Receivable Category

Gross 

Receivable

Amounts 

Uncollectible

Total Net 

Receivables

Duties $2,750,220 $ (128,119) $2,622,101

Excise Taxes 168,201 (9,547) 158,654

User Fees 71,862 (400) 71,462

Fines/Penalties 509,547 (460,496) 49,051

Interest 668,525 (622,016) 46,509

Antidumping/

 Countervailing Duties 1,406,494 (1,305,036) 101,458

Refunds and Drawbacks 2,374 (2,219) 155

Total $5,577,223 $(2,527,833) $3,049,390

 

2013

Receivable Category

Gross 

Receivable

Amounts 

Uncollectible

Total Net 

Receivables

Duties $2,474,559 $ (130,583) $2,343,976

Excise Taxes 149,281 (8,761) 140,520

User Fees 68,224 (524) 67,700

Fines/Penalties 458,174 (408,786) 49,388

Interest 566,208 (537,546) 28,662

Antidumping/

 Countervailing Duties 1,232,570 (1,181,555) 51,015

Refunds and Drawbacks 3,032 (2,286) 746

Total $4,952,048 $(2,270,041) $2,682,007

CBP assesses duties, taxes and fees on goods and merchandise brought into the United States from foreign 

countries. At the time importers bring merchandise into the United States, they are required to file CBP entry 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 99

Customs and Border Protection 

Notes to Financial Statements 

documents. Generally, within 10 working days after CBP releases the merchandise into the U.S. commerce, the 

importer is to submit an entry document with payment of estimated duties, taxes and fees. CBP allows periodic 

monthly payment that requires payment of estimated duties, taxes and fees on the 15th work day of the month 

following release. A gross receivable (comprised of duties, taxes, and fees) of $2.9 billion was recorded for 

1,188,536 entries and $2.6 billion for 1,090,865 entries for merchandise released into commerce on or before 

September 30, 2014 and 2013, respectively. It is CBP’s policy to track and demand payment of unpaid estimated 

duties, taxes and fees receivable by establishing a liquidated damage case which generally results in a fine and 

penalty type receivable. 

 

A fine or penalty is established when a violation of import/export law is discovered. CBP assesses a liquidated 

damage or penalty for these cases to the maximum extent of the law. After receiving the notice of assessment, the 

importer or surety has 60 days to either file a petition requesting a review of the assessment or make payment of the 

assessed amount. Until this process has been completed, CBP records an allowance on fines and penalties of 

approximately 89.1 percent of the total assessment based on historical experience of fines and penalties mitigation 

and collection. Duties and taxes receivable are non-entity assets for which there is an offsetting liability due to the 

Treasury General Fund. 

7. Inventory and Related Property, Net 

Operating Materials and Supplies

Operating materials and supplies consist of parts and materials to repair and maintain CBP aircraft, vessels, and 

OTIA projects used for enforcement activities. In addition, CBP holds a stock of uniforms to be issued for the CBP 

academies and as needed by officers and agents until a long-term uniform contract is awarded. OTIA operating 

materials and supplies as of September 30, 2014 and 2013 includes $23.5 million and $24.0 million, respectively, for 

steel used to repair Border Patrol tactical infrastructure and $27.7 million and $19.4 million, respectively, in spare 

parts used to repair systems maintained by OTIA. CBP defines operating materials and supplies categorized as 

“Held for Repair” as items that are useable by CBP after repair. CBP defines operating materials and supplies 

categorized as “Excess, Obsolete, and Unserviceable” to consist of items that are no longer useable by CBP. CBP 

estimates the net realizable value of Excess, Obsolete, and Unserviceable operating materials and supplies as zero 

and recorded losses of $1.9 thousand and $16.2 million in FY 2014 and FY 2013, respectively, to adjust the carrying 

value to zero.

 

Operating Materials and Supplies as of September 30, 2014 and 2013 consist of the following (in thousands): 

2014 2013

Aircraft Parts

Items Held for Use $114,012 $107,394 

Items Held for Repair 18,679 23,676 

Total Aircraft Parts $132,691 $131,070 

Vessel Parts

Items Held for Use $ 7,466 $ 7,367 

Items Held for Repair 109 103 

Total Vessel Parts $ 7,575 $ 7,470

OTIA Parts

Items Held for Use $ 43,089 $ 43,041 

Items Held for Repair 8,133 317

Total OTIA Parts $ 51,222 $ 43,358

Uniforms

Items Held for Use $ 11,047 $ 16,467 

Total Uniforms $ 11,047 $ 16,467

Total $202,535 $198,365
100 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

 

8. Seized and Forfeited Property 

This schedule is presented for material categories of prohibited (non-valued) seized and forfeited property only. 

These items are retained and ultimately destroyed by CBP and are not transferred to the Department of the Treasury 

Forfeiture Fund or other Federal agencies. The ending balance for firearms includes only those seized items that 

can actually be used as firearms. Counterfeit goods are presented in number of seized items, and include clothing, 

footwear, jewelry, electronic equipment, movies, music, media, identification documents and other items. Illegal 

drugs are presented in kilograms and a portion of the weight includes packaging, which often cannot be reasonably 

separated from the weight of the drugs since the packaging must be maintained for evidentiary purposes. Firearms 

are presented in number of cases. Khat seizures have increased in recent years and are therefore included in the 

list of illegal drugs seized and forfeited in both FY 2014 and 2013. 

Analysis of Changes in Prohibited (Non-valued) Seized Property, September 30, 2014

Category

Unit of 

Measurement

Balance 

October 1

New 

Seizures Remissions

New 

Forfeitures Adjustments* 

Balance 

September 30

Illegal Drugs

 Cannabis 

 (marijuana) Kilograms 3,104 1,039,151 -- (1,043,877) 4,635 3,013

 Cocaine Kilograms 211 21,975 -- (21,889) 6 303

 Heroin Kilograms 9 2,402 -- (2,383) 21 49

 Ecstasy Kilograms 17 298 -- (298) -- 17

 Khat Kilograms 45 66,902 -- (66,910) (37) --

 Methamphetamine Kilograms 11 11,676 -- (11,633) (21) 33

 Steroids Kilograms 264 689 -- (555) (2) 396

Firearms Number of Cases 3,668 4,589 (361) (1,528) (765) 5,603 

Counterfeit Goods Number of Cases 31,473 55,768 (818) (51,755) (1,348) 33,320

* Adjustments are the result of changes due to inventory counts, changes in legal status or property type, and/or discontinuance of cases. 

Analysis of Changes in Prohibited (Non-valued) Seized Property, September 30, 2013

Category

Unit of 

Measurement

Balance 

October 1

New 

Seizures Remissions

New 

Forfeitures Adjustments* 

Balance 

September 30

Illegal Drugs

 Cannabis 

 (marijuana) Kilograms 2,051 1,224,988 -- (1,231,308) 7,373 3,104 

 Cocaine Kilograms 83 20,528 -- (20,373) (27) 211

 Heroin Kilograms 4 2,396 -- (2,392) 1 9

 Ecstasy Kilograms 18 720 -- (724) 3 17 

 Khat Kilograms 48 82,786 -- (82,741) (48) 45

 Methamphetamine Kilograms 5 11,035 -- (11,054) 25 11

 Steroids Kilograms 147 734 -- (613) (4) 264

Firearms Number of Cases 3,112 4,600 (564) (3,290) (190) 3,668 

Counterfeit Goods Number of Cases 39,248 56,207 (637) (60,127) (3,218) 31,473 

* Adjustments are the result of changes due to inventory counts, changes in legal status or property type, and/or discontinuance of cases.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 101

Customs and Border Protection 

Notes to Financial Statements 

Analysis of Changes in Prohibited (Non-valued) Forfeited Property, September 30, 2013

Category

Unit of 

Measurement

Balance 

October 1

New 

Forfeitures Transfers Destroyed Adjustments* 

Balance 

September 30

Illegal Drugs

 Cannabis 

 (marijuana) Kilograms 141,235 1,231,308 (152) (395,939) (833,133) 143,319 

 Cocaine Kilograms 24,821 20,373 (193) (22,924) (2,227) 19,850

 Heroin Kilograms 2,768 2,392 (38) (1,818) (57) 3,247

 Ecstasy Kilograms 921 724 (40) (496) (32) 1,077

 Khat Kilograms 3,339 82,741 -- (81,401) (1,021) 3,658

 Methamphetamine Kilograms 7,039 11,054 (77) (6,210) (326) 11,480

 Steroids Kilograms 340 613 (1) (596) (21) 335

Firearms Number of Cases 1,025 3,290 (3,285) (3) 133 1,160 

Counterfeit Goods Number of Cases 15,764 60,127 (246) (54,438) 1,698 22,905

* Adjustments are the result of changes due to inventory counts, changes in legal status or property type, and/or discontinuance of cases.

Analysis of Changes in Prohibited (Non-Valued) Forfeited Property, September 30, 2014

Category

Unit of 

Measurement

Balance 

October 1

New 

Forfeitures Transfers Destroyed Adjustments* 

Balance 

September 30

Illegal Drugs

 Cannabis 

 (marijuana) Kilograms 143,319 1,043,877 (270) (353,443) (698,891) 134,592

 Cocaine Kilograms 19,850 21,889 (130) (19,354) (954) 21,301

Heroin Kilograms 3,247 2,383 (20) (1,897) (208) 3,505

Ecstasy Kilograms 1,077 298 (46) (474) (25) 830

Khat Kilograms 3,658 66,910 -- (68,165) (161) 2,242

 Methamphetamine Kilograms 11,480 11,633 (9) (8,094) (1,736) 13,274

Steroids Kilograms 335 555 -- (836) 9 63

Firearms Number of Cases 1,160 1,528 (1,668) -- 390 1,410

Counterfeit Goods Number of Cases 22,905 51,755 (275) (48,323) 521 26,583

* Adjustments are the result of changes due to inventory counts, changes in legal status or property type, and/or discontinuance of cases.
102 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

9. General Property, Plant and Equipment, Net

Property, Plant and Equipment as of September 30, 2014 and 2013 consists of the following (in thousands): 

 2014

Categories

Useful 

Life 

(in years)

Acquisition 

Cost

Accumulated 

Depreciation/

Amortization

Net 

Book Value

Land and Land Rights N/A $ 182,801 $ -- $ 182,801

Improvements to Land 5 - 40 2,217,954 (585,817) 1,632,137

Construction in Progress N/A 383,963 -- 383,963

Buildings, Other Structures

 and Facilities*

 

20 - 40 1,962,811 (378,137) 1,584,674

Equipment:

 ADP Equipment 5 425,492 (353,345) 72,147

 Aircraft 12 - 20 1,543,935 (785,839) 758,096

 Vessels 5 - 30 43,097 (21,837) 21,260

 Vehicles 4 - 8 401,439 (353,061) 48,378

 Other Equipment 5 - 15 1,962,402 (1,370,939) 591,463

Leasehold Improvements 2 – 30 544,301 (255,032) 289,269

Internal Use Software 5 1,179,270 (970,834) 208,436

Internal Use Software-in

 Development N/A 14,462 -- 14,462

Total $10,861,927 $(5,074,841) $5,787,086

 2013

Categories

Useful 

Life 

(in years)

Acquisition 

Cost

Accumulated 

Depreciation/

Amortization

Net 

Book Value

Land and Land Rights N/A $ 176,690 $ -- $ 176,690

Improvements to Land 5 - 40 2,186,940 (471,149) 1,715,791

Construction in Progress N/A 710,029 -- 710,029

Buildings, Other Structures

 and Facilities*

 

20 - 40 1,911,635 (318,340) 1,593,295

Equipment:

 ADP Equipment 5 452,727 (391,518) 61,209

 Aircraft 12 - 20 1,499,276 (770,374) 728,902

 Vessels 5 - 30 43,228 (20,325) 22,903

 Vehicles 4 - 8 406,045 (339,625) 66,420

 Other Equipment 5 - 15 1,848,904 (1,216,555) 632,349

Leasehold Improvements 2 – 30 426,269 (218,428) 207,841

Internal Use Software 5 1,103,744 (872,991) 230,753

Internal Use Software-in

Development N/A 52,735 -- 52,735

Total $10,818,222 $(4,619,305) $6,198,917

 *Includes four multi-use heritage assets located in Puerto Rico with an acquisition value of $534 thousand. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 103

Customs and Border Protection 

Notes to Financial Statements 

10. Stewardship PP&E 

CBP’s Stewardship PP&E is comprised of heritage assets located in Washington D.C. and the Commonwealth of 

Puerto Rico. CBP aggregates its personal property heritage assets as collections of documents and artifacts and 

reflects its multi-use heritage assets as number of physical units. Information related to heritage assets at 

September 30, 2014 and 2013 consists of the following: 

 2014

Categories

Beginning 

Balance Additions Withdrawals Adjustments Total

Collection-type Assets 

 Documents 1 -- -- -- 1

 Artifacts 1 -- -- -- 1

Multi-use Heritage Assets 4 -- -- -- 4

Total Stewardship PP&E 6 -- -- -- 6

 2013

Categories

Beginning 

Balance Additions Withdrawals Adjustments Total

Collection-type Assets 

 Documents 1 -- -- -- 1

 Artifacts 1 -- -- -- 1

Multi-use Heritage Assets 4 -- -- -- 4

Total Stewardship PP&E 6 -- -- -- 6

CBP possesses a wide range of documents and artifacts which are unique due to historical, cultural, artistic, or 

architectural significance. These assets are used to preserve and to provide education on CBP’s history and 

tradition. Documents consist of dated port records, CBP regulations, and ledgers of Collectors of Customs. Artifacts 

include antique scales, dated pictures of Customs Inspectors, aged tools used to sample imported commodities such 

as wood bales and bulk grain, and dated Customs uniforms, badges, and stamps. 

As of September 30, 2014 and 2013, CBP maintained four Customs houses, designated as multi-use heritage 

assets, located in Puerto Rico and valued at $534 thousand, which are fully depreciated. All multi-use heritage 

assets are reflected on the Consolidated Balance Sheets. Deferred maintenance and repairs and condition 

information for heritage assets are presented in the Required Supplementary Information. 

11. Other Assets 

Advances and Prepayments 

 

Intra-governmental advances and prepayments as of September 30, 2014 and 2013, totaling $263.8 million and 

$133.9 million, respectively, consist primarily of advances to the Departments of Transportation and Defense for 

support of border security, and to the Department of Justice, UNICOR, for vehicle purchases. 

Other 

 

Other assets consists of capital assets no longer in service, pending disposal, and employee travel and salary 

advances as of September 30, 2014 and 2013, totaling $50 thousand and $429 thousand, respectively. 
104 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

12. Liabilities Not Covered by Budgetary Resources 

Liabilities Not Covered by Budgetary Resources as of September 30, 2014 and 2013, consist of the following (in 

thousands): 

2014 2013

Intra-governmental:

Accrued FECA Liability $ 167,449 $ 165,071 

Other Employment Liabilities 206 322

Due to the Treasury General Fund 3,120,403 2,757,534

Total Intra-governmental $3,288,058 $2,922,927

Public:

Accrued Payroll and Benefits:

 Accrued Unfunded Leave (Note 13) 433,161 405,063

 Actuarial FECA Liability (Note 13) 1,015,236 1,005,111

 Other Employment Liabilities 3,832 --

Environmental and Disposal Liabilities (Note 14) 20,974 17,524

Legal Contingent Liabilities 397,844 381,572

Total Public $1,871,047 $1,809,270

Total Liabilities Not Covered by Budgetary Resources 5,159,105 4,732,197

Total Liabilities Covered by Budgetary Resources 1,450,866 1,317,389

Total Liabilities $6,609,971 $6,049,586

Liabilities not covered by new budget authority or other budgetary resources represent amounts owed in excess of 

available appropriated or other amounts. Available budgetary resources include new budget authority, unobligated 

balances of budgetary resources at the beginning of the year or net transfers of prior year balances during the year, 

spending authority from offsetting collections, and recoveries of unexpired budget authority through downward 

adjustments of prior year obligations. 

13. Accrued Payroll and Benefits 

The payroll and benefits liability as of September 30, 2014 and 2013 consists of the following (in thousands): 

2014 2013

Accrued Funded Payroll and Benefits $ 169,769 $ 65,225

Accrued Unfunded Leave 433,161 405,063

Accrued Other Employment Liabilities 3,832 --

Actuarial FECA Liability 1,015,236 1,005,111

Total $1,621,998 $1,475,399

 

Future workers’ compensation estimates are generated from an application of actuarial procedures developed by 

DOL. 

14. Environmental and Disposal Liabilities 

CBP is required to remediate contamination in accordance with Federal laws in order to protect human health and 

the environment. These laws include the Comprehensive Environmental Response, Compensation and Liability Act, 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 105

Customs and Border Protection 

Notes to Financial Statements 

the Resource Conservation and Recovery Act, the Oil Pollution Act, the Clean Water Act, the Toxic Substances 

Control Act, and the Clean Air Act. 

Estimated environmental liabilities include expected future cleanup costs and those associated with site 

characterization, sampling, risk assessment, removal of contamination sources, treatment, containment, and 

monitoring. The estimated liabilities include both friable and non-friable asbestos-related costs. Costs are 

recognized and disclosed in accordance with SFFAS No. 5; SFFAS No. 6; Technical Releases No. 2, 10, and 11, 

and DHS policy directives and memoranda. CBP records the estimated cost of environmental liabilities that are 

probable and measurable to the current operating period. For those probable sites where future liability is unknown 

or no reasonable estimate of the cost to clean up a particular site could be made, the cost of studies necessary to 

evaluate response or remediation requirements is reported. 

CBP’s environmental cleanup liability as of September 30, 2014 and 2013 was $21.0 million and $17.5 million, 

respectively. There were no material changes in total estimated cleanup costs due to changes in law or technology. 

Notable changes in estimated liabilities include:

 Estimates of liability are presented in FY 2014 dollars and have been appropriately escalated to account for 

inflation.

 Inventory of liabilities was modified in the Due Care Review process, which includes routine assessments 

and reviews to identify the mediation, presence, and removal of environmental liabilities. 

15. Other Liabilities 

 

CBP considers $92.6 million and $94.1 million of the accrued FECA Liability, $1.0 billion of the actuarial FECA 

Liability, and $375.2 million and $356.5 million of the Legal Contingent Liabilities as non-current as of September 30, 

2014 and 2013, respectively. CBP considers all remaining Other Liabilities as current. 

Refunds Payable 

Refunds Payable consists of amounts owed for refunds of duty and other trade related activity and drawback claims. 

These liabilities, all considered current year liabilities, are principally funded from the Refunds and Drawbacks 

Account. 

CBP accrues a liability for refunds and drawbacks claims approved at year-end, but paid subsequent to year-end. 

Payments made to importers/exporters are primarily identified when the import entry is liquidated, a process in which 

CBP makes a final determination of duties, taxes and fees owed on the entry. Due to non-liquidation of the entries, 

the amount to be refunded is undetermined. Prior to FY 2014, a historical calculated average was used to determine 

a ratio for estimating the payable to be recorded. Effective with FY 2014, CBP adopted a new methodology to 

calculate the accrual based on the current fiscal year actual disbursements and subsequent disbursement testing of 

the prior fiscal year accrual. CBP has estimated $16.8 million as of September 30, 2014 and $64.7 million as of 

September 30, 2013, as a payable. 

The September 30, 2014 and 2013, accrued liability consists of the following (in thousands): 

2014 2013

Refunds $ 88,288 $106,062

Drawback Claims 60,234 61,462

Total $148,522 $167,524

Injured Domestic Industries

The Continued Dumping and Subsidy Offset Act (CDSOA) of 2000 (P.L. 106-387, Title X), enacted in FY 2001, calls 

for CBP to collect and disburse monies received in connection with antidumping and countervailing duty orders and 
106 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

findings to qualifying Injured Domestic Industries (IDI). Antidumping duties are collected when it is determined that a 

class or kind of foreign merchandise is being released into the U.S. economy at less than its fair value to the 

detriment of a U.S. industry. Countervailing duties are collected when it is determined that a foreign government is 

providing a subsidy to its local industries to manufacture, produce, or export a class or kind of merchandise for import 

into the U.S. commerce to the detriment of a U.S. industry. Due to the repeal of the CDSOA in the Deficit Reduction 

Omnibus Reconciliation Act of 2005, only duties on entries filed prior to October 1, 2007 will eventually be distributed 

to affected U.S. companies pursuant to rulings by the U.S. Department of Commerce. As of September 30, 2014 

and 2013, CBP recorded a liability of $128.3 million and $105.1 million, respectively. CBP makes annual payments 

of antidumping/countervailing duties to qualifying Injured Domestic Industries. 

16. Leases

Operating Leases

CBP leases various facilities and equipment under leases accounted for as operating leases. The leased items 

consist of offices, warehouses, vehicles and other equipment. Much of the office space occupied by CBP is either 

owned by the Federal Government or is leased by the General Services Administration (GSA) from commercial 

sources. CBP is not committed to continue to pay rent to GSA beyond the period occupied providing proper advance 

notice is given to GSA unless the rental agreement is non-cancelable. It is expected that CBP will continue to occupy 

and lease office space from GSA in future years. 

The following schedule, by years, shows the future minimum rental payments required under operating leases that 

have initial or remaining non-cancelable lease terms in excess of one year, as of September 30, 2014 (in thousands): 

Fiscal Year

Facilities, 

Vehicles, and 

Equipment

2015 $ 207,239 

2016 187,858 

2017 172,647

2018 150,075

2019 116,324

Beyond 2018 914,941

Total Future Lease Payments $1,749,084

17. Commitments and Contingencies 

Legal Contingent Liabilities 

CBP is party to various administrative proceedings, legal actions, and administrative claims brought against it in the 

normal course of operations that may result in settlements or decisions that are adverse to CBP. The ultimate 

disposition of these claims is unknown, and they are primarily related to personnel matters, Federal Tort Claims Act 

matters, and trade matters involving various customs laws and regulations. Any financially unfavorable 

administrative or court decision will normally be funded from: (1) CBP appropriation for refunds and drawbacks; (2) 

the Judgment Fund maintained by Treasury; or (3) CBP salaries and expenses appropriations. 

The range of estimated contingent liabilities for all probable and estimable litigation related claims as of September 

30, 2014 and 2013 were $397.8 million to $1.0 billion and $381.6 million to $1.0 billion, respectively. Asserted and 

pending legal claims for which loss is reasonably possible range from an estimated $393.4 million to $530.6 million

and $389.7 million to $526.4 million as of September 30, 2014 and 2013, respectively. As of September 30, 2014, 

CBP had three unasserted tort cases considered probable or reasonably possible for which no estimate could be 

made. 

 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 107

Customs and Border Protection 

Notes to Financial Statements 

As disclosed in the Other Liabilities note, $375.2 million and $356.5 million of the Legal Contingent Liabilities is 

considered non-current as of September 30, 2014 and 2013, respectively. 

Duty and Trade Refunds 

There are various other trade issues resolved by other Federal agencies, such as the Department of Commerce, 

which may result in refunds of duties, taxes and fees from the Refunds and Drawbacks Account. Until such time as 

a decision is reached by the other Federal agencies, CBP does not have sufficient information to estimate a 

contingent liability amount. All known refunds as of September 30, 2014 and 2013 have been recorded. 

Loaned Aircraft 

CBP is liable to the Department of Defense for damage or loss to aircraft on loan. CBP had 16 aircraft loaned from 

the Department of Defense with an acquisition value of $94.4 million, as of September 30, 2014 and 2013. 

18. Funds from Dedicated Collections

Funds from dedicated collections are financed by specifically identified revenues, provided to the government by 

non-federal sources, often supplemented by other financing sources, which remain available over time. These 

specifically identified revenues and other financing sources are required by statute to be used for designated 

activities, benefits or purposes and must be accounted for separately from the Federal Government’s General Fund.

Consolidated Omnibus Budget Reconciliation Act (COBRA) 

In April 1986, the President signed the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985, which 

authorized CBP to collect user fees for certain services. The law initially established processing fees for air and sea 

passengers, commercial trucks, rail cars, private vessels and aircraft, commercial vessels, dutiable mail packages, 

and CBP broker permits. An additional fee category, contained in tax reform legislation, for processing barges and 

bulk carriers for Canada and Mexico, was added later that year. The collection of the COBRA fees for CBP services 

began on July 7, 1986. 

In addition to the collection of user fees, other changes in CBP procedures were enacted due to the COBRA statute. 

Most importantly, provisions were included for providing non-reimbursable inspectional overtime services and paying 

for excess pre-clearance costs from the COBRA user fee collections. 

The Customs and Trade Act of 1990 amended the COBRA legislation to provide for the hiring of inspectional 

personnel, the purchasing of equipment, and the covering of related expenses with any surplus monies available 

after overtime and excess pre-clearance costs are satisfied. Expenditures from the surplus can only be used to 

enhance the service provided to those functions for which fees are collected. This legislation took effect on October 

1, 1990.

19 USC Section 58c contains the Fees for certain Customs services. The authority to use these funds is contained 

in the annual Department of Homeland Security Appropriations Act. 

Immigration User Fees (IUF)

Joint Resolution (H.J. Res. 738), making continuing appropriations for FY 1987 (the “1987 Act”) (Public Laws 99-500 

and 99-591), established the Immigration User Fee Account (IUFA) requiring the collection of a $5 fee charged to 

each passenger arriving in the United States from foreign locations aboard commercial aircraft and commercial 

vessels except passengers whose journeys originated in the United States, Canada, Mexico, a territory or 

possession of the United States, or an adjacent island. The 1987 Act directed the Immigration and Naturalization 

Service (INS), beginning in FY 1987, to collect an immigration user fee for each passenger arriving in the United 

States by commercial air or sea conveyance (with limited exceptions). This law was codified in 8 U.S.C. 1103, 1356, 

section 286, the Immigration and Nationality Act (INA). 
108 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

In 1993, Congress amended section 286 of the INA by raising the immigration user fee from the original $5 to $6 with 

the passage of Public Law 103-121. In 2002, in Public Law 107-77, Congress increased the immigration user fee 

from $6 to $7.

Also in Public Law 107-77, Congress amended section 286(e) of the INA to authorize the Attorney General to charge 

and collect a user fee from certain previously exempt commercial vessel passengers. Prior to the enactment of this 

law, commercial vessel passengers whose journeys originated in Canada, Mexico, a State, territory or possession of 

the United States, or an adjacent island, were statutorily exempt from paying the immigration user fee prescribed by 

section 286(d) of the INA. While these vessel passengers were exempt from paying the fee, the INS was still 

required to provide inspection services. 

The IUFA was also established as a repository for fines imposed to prevent unauthorized landing and unlawful 

transport of aliens into the United States, penalties for document fraud, 31 Act overtime, and liquidated damages and 

expenses collected. All deposits into the IUFA are available until expended. 

CBP collects and shares the revenue from the immigration user fees with Immigration and Customs Enforcement 

(ICE). CBP maintains approximately 82.6 percent of the user fee, while the other 17.4 percent is turned over to ICE. 

The following tables present condensed data relating to CBP funds from dedicated collections (disclosed in Note 1) 

as of and for the years ended September 30, 2014 and 2013 (in thousands). 

 2014

Balance Sheet COBRA IUF All Others Total

Assets 

 Fund Balance with Treasury $ 139,336 $ 65,172 $ 180,637 $ 385,145

 Other Assets 311,008 74,705 12,544 398,257

Total Assets $ 450,344 $ 139,877 $ 193,181 $ 783,402

Liabilities and Net Position

Liabilities $ 11,449 $ -- $ 3,919 $ 15,368

Cumulative Results of Operations 438,895 139,877 189,262 768,034

Total Liabilities and Net Position $ 450,344 $ 139,877 $ 193,181 $ 783,402

Statement of Net Cost

Gross Cost $ 609,309 $ 593,398 $ 148,872 $ 1,351,579

-- 4,187 7,532 11,719

Net Cost of Operations $ 609,309 $ 589,211 $ 141,340 $ 1,339,860

Statement of Changes In Net Position

Net Position Beginning of Period $ 380,120 $ 111,361 $ 150,011 $ 641,492

Net Costs of Operations (609,309) (589,211) (141,340) (1,339,860)

Non-exchange Revenue 649,089 -- 173,199 822,288

Net Transfers In/Out (2,256,478) (125,221) (390) (2,382,089)

Other (Note 21) 2,275,473 742,947 7,783 3,026,203

Change in Net Position $ 58,775 $ 28,515 $ 39,252 $ 126,542

Net Position End of Period $ 438,895 $ 139,876 $ 189,263 $ 768,034
2014 Performance and Accountability Report • U.S. Customs and Border Protection 109

Customs and Border Protection 

Notes to Financial Statements 

2013

Balance Sheet COBRA IUF All Others Total

Assets

 Fund Balance with Treasury $ 110,919 $ 44,815 $ 149,150 $ 304,884 

 Other Assets 292,012 66,546 2,552 361,110

Total Assets $ 402,931 $ 111,361 $ 151,702 $ 665,994

Liabilities and Net Position 

Liabilities $ 22,811 $ -- $ 1,691 $ 24,502 

Cumulative Results of Operations 380,120 111,361 150,011 641,492

Total Liabilities and Net Position $ 402,931 $ 111,361 $ 151,702 $ 665,994 

Statement of Net Cost 

Gross Cost $ 406,464 $ 632,041 $ 124,515 $ 1,163,020

Less Earned Revenues -- -- 2,776 2,776

Net Cost of Operations $ 406,464 $ 632,041 $ 121,739 $ 1,160,244 

Statement of Changes In Net Position 

Net Position Beginning of Period $ 181,369 $ 147,217 $ 106,086 $ 434,672 

Net Costs of Operations (406,464) (632,040) (121,740) (1,160,244)

Non-exchange Revenue 448,683 -- 156,322 605,005

Net Transfers In/Out (2,167,719) 

)

(116,842) 

)

--

)

(2,284,561) 

) Other (Note 21) 2,324,251 713,026 9,343 3,046,620

Change in Net Position $ 198,751 $ (35,856) $ 43,925 $ 206,820

Net Position End of Period $ 380,120 $ 111,361 $ 150,011 $ 641,492 

19. Intra-governmental Costs and Exchange Revenue 

Intra-governmental costs represent exchange transactions made between two reporting entities within the Federal 

Government and are presented separately from costs with the public (exchange transactions made between the 

reporting entity and a non-Federal entity). Intra-governmental exchange revenue is disclosed separately from 

exchange revenue with the public. The criteria used for this classification requires that the intra-governmental 

expenses relate to the source of goods and services purchased by the reporting entity and not to the classification of 

related revenue. With intra-governmental costs, the buyer and seller are both Federal entities. If a Federal entity 

purchases goods or services from another Federal entity and sells them to the public, the exchange revenue would 

be classified as “with the public,” but the related costs would be classified as intra-governmental. The purpose of this 

classification is to enable the Federal Government to provide consolidated financial statements, and not to match 

public and intra-governmental revenue with costs that are incurred to produce public and intra-governmental 

revenue. 

The Consolidated Statement of Net Cost reflects intra-governmental and public cost and exchange revenue as 

summarized below for the years ended September 30, 2014 and 2013 (in thousands): 
110 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

For the years ended September 30, 2014 and 2013: 

2014 2013

Securing America’s Borders

 Intra-governmental Costs $ 1,680,830 $ 1,470,571

 Public Costs 4,069,225 3,671,553

 Total Securing America’s Borders Costs $ 5,750,055 $ 5,142,124

 Less: Intra-governmental Earned Revenue 34,591 1,604

 Less: Public Earned Revenue 67,448 7,647

 Total Securing America’s Borders Revenue $ 102,039 $ 9,251

Securing and Expediting Trade

 Intra-governmental Costs 881,132 1,040,394 

 Public Costs 1,874,799 2,060,690 

 Total Securing and Expediting Trade Costs $ 2,755,931 $ 3,101,084

 Less: Intra-governmental Earned Revenue 15,697 65,666

 Less: Public Earned Revenue 30,169 71,947

 Total Securing and Expediting Trade Revenue $ 45,866 $ 137,613

Securing and Expediting Travel

 Intra-governmental Costs 1,362,216 1,282,933 

 Public Costs 2,687,162 2,690,261 

 Total Securing and Expediting Travel Costs $ 4,049,378 $ 3,973,194 

 Less: Intra-governmental Earned Revenue 25,762 35,007

 Less: Public Earned Revenue 49,983 55,655

 Total Securing and Expediting Travel Revenue $ 75,745 $ 90,662

Intelligence and Targeting

 Intra-governmental Costs 163,335 136,107 

 Public Costs 422,999 438,774 

 Total Intelligence and Targeting Costs $ 586,334 $ 574,881

 Less: Intra-governmental Earned Revenue 2,046 24

 Less: Public Earned Revenue 4,293 2,632

 Total Intelligence and Targeting Revenue $ 6,339 $ 2,656 

Net Cost of Operations $12,911,709 $12,551,101
2014 Performance and Accountability Report • U.S. Customs and Border Protection 111

Customs and Border Protection 

Notes to Financial Statements 

20. Sub-organization Program Costs/Program Costs by Strategic Goal

CBP is the unified border agency whose priority mission is the prevention of terrorism and terrorist weapons from 

entering the U.S. CBP meets these responsibilities by: (1) enforcing the laws governing the flow of merchandise or 

commerce across the borders of the U.S.; (2) assessing and collecting duties, taxes and fees on imported and other 

goods and services; and (3) enforcing drug-related and other laws and regulations of the U.S. on behalf of Federal 

agencies and/or in conjunction with various states, local agencies and foreign countries. 

Operating costs are summarized in the Consolidated Statement of Net Cost by mission or major line of activity, as 

applicable to the reporting period. The net cost of operations is the gross (i.e. total) cost incurred by CBP less any 

exchange (i.e. earned) revenue. 

The strategic goals identified in the following tables align with the “DHS Strategic Plan for Fiscal Years (FY) 2012 –

2016.” The DHS Strategic Plan is the result of the DHS Quadrennial Homeland Security Review (QHSR), which 

established a unified, strategic framework for homeland security missions and goals. 

 For the year ended September 30, 2014 (in thousands): 

2014

Schedule of Net Cost by Program 

and Responsibility Segment

Fostering a Safe 

& Secure 

Homeland

Enforcing & 

Administering 

Our Immigration 

Laws

Providing Essential 

Support to National, 

Economic and 

Homeland Security

Intra-Entity 

Eliminations

Consolidated 

Total

Securing America’s Borders

 Gross Costs $ 6,275,106 $ 39,603 -- $ 564,654 $ 5,750,055

 Less: Earned Revenue 160,793 -- -- 58,754 102,039

 Net Program Costs $ 6,114,313 $ 39,603 -- $ 505,900 $ 5,648,016

Securing and Expediting Trade

 Gross Costs $ 2,362,091 -- $753,083 $ 359,243 $ 2,755,931

 Less: Earned Revenue 410,458 -- 137,947 502,539 45,866

 Net Program Costs $ 1,951,633 -- $615,136 $(143,296) $ 2,710,065

Securing and Expediting Travel

 Gross Costs $ 2,623,917 $2,019,157 $ 151 $ 593,847 $ 4,049,378

 Less: Earned Revenue 554,323 502,947 2 981,527 75,745

 Net Program Costs $ 2,069,594 $1,516,210 $ 149 $(387,680) $ 3,973,633

Intelligence and Targeting

 Gross Costs $ 621,276 -- -- $ 34,942 $ 586,334

 Less: Earned Revenue 16,205 -- -- 9,866 6,339

 Net Program Costs $ 605,071 -- -- $ 25,076 $ 579,995

Net Cost of Operations $10,740,611 $1,555,813 $615,285 $ -- $12,911,709
112 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

For the year ended September 30, 2013 (in thousands):

2013

Schedule of Net Cost by Program 

and Responsibility Segment

Fostering a Safe 

& Secure 

Homeland

Enforcing & 

Administering 

Our Immigration 

Laws

Providing Essential 

Support to National, 

Economic and 

Homeland Security

Intra-Entity 

Eliminations

Consolidated 

Total

Securing America’s Borders

 Gross Costs $ 5,138,348 $ 50,825 -- $ 47,049 $ 5,142,124

 Less: Earned Revenue 62,630 - -- 53,379 9,251

 Net Program Costs $ 5,075,718 $ 50,825 -- $ ( 6,330) $ 5,132,873

Securing and Expediting Trade

 Gross Costs $ 2,947,167 -- $ 947,345 $ 793,428 $ 3,101,084

 Less: Earned Revenue 471,742 -- 148,699 482,828 137,613

 Net Program Costs $ 2,475,425 -- $ 798,646 $ 310,600 $ 2,963,471

Securing and Expediting Travel

 Gross Costs $ 2,545,840 $ 1,912,060 $ 221 $ 484,927 $ 3,973,194

 Less: Earned Revenue 541,463 433,872 1 884,674 90,662

 Net Program Costs $ 2,004,377 $ 1,478,188 $ 220 $(399,747) $ 3,882,532

Intelligence and Targeting

 Gross Costs $ 682,215 -- -- $ 107,334 $ 574,881

 Less: Earned Revenue 14,513 -- -- 11,857 2,656

 Net Program Costs $ 667,702 -- -- $ 95,477 $ 572,225

Net Cost of Operations $10,223,222 $ 1,529,013 $ 798,866 $ -- $12,551,101

21. Non-exchange Revenues and Transfers In/Out Without Reimbursement 

Non-exchange Revenue represents amounts collected from user fees that CBP may retain and expend as 

authorized by law, and is identified in Non-exchange Revenue and Other. Transfers In/Out Without Reimbursement 

are amounts of funds collected and transferred from CBP receipt accounts to expenditure accounts within CBP and 

to other Federal agencies. 

Non-exchange Revenue reported under Budgetary Financing Sources includes Land Border Inspection Fees, 

Immigration Enforcement Fees, International Registered Traveler Program Fees, Electronic Systems for Travel 

Authorization Fees, Customs User Fees, and amounts from Abandoned and Seized Goods. These amounts are 

identified as Budgetary Financing Sources because CBP recognizes budget authority related to the 

collections. Non-exchange Revenue reported under Other Financing Sources as Other, includes Immigration User 

Fees, Small Airports User Fees, and Merchandise Processing Fees, which represent revenue reported in receipt 

accounts for which CBP does not have available budgetary authority. Also reported under Other Financing Sources 

as Other, is the accounts receivable related portion of Customs User Fees. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 113

Customs and Border Protection 

Notes to Financial Statements 

22. Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable Obligations

Apportionment categories are determined in accordance with the guidance provided in OMB Circular A-11, 

Preparation, Submission and Execution of the Budget. Category A represents resources apportioned for calendar 

quarters. Category B represents resources apportioned for other time periods, activities, projects, objectives or any 

combination thereof (in thousands). 

2014

Apportionment 

Category A

Apportionment 

Category B

Exempt from 

Apportionment Total

Obligations Incurred – Direct $10,333,519 $2,252,647 $1,399,172 $13,985,338

Obligations Incurred - Reimbursable (4,032) 1,712,533 -- 1,708,501

Total Obligations Incurred $10,329,487 $3,965,180 $1,399,172 $15,693,839

 

2013

Apportionment 

Category A

Apportionment 

Category B

Exempt from 

Apportionment Total

Obligations Incurred – Direct $9,648,928 $2,338,559 $1,300,623 $13,288,110

Obligations Incurred - Reimbursable (1,283) 1,575,677 -- 1,574,394 

Total Obligations Incurred $9,647,645 $3,914,236 $1,300,623 $14,862,504

23. Appropriations

As of September 30, 2014 and 2013, the Combined Statements of Budgetary Resources consist of appropriations 

totaling $14.0 billion and $12.9 billion, respectively. This differs from the Consolidated Statements of Changes in Net 

Position as of September 30, 2014 and 2013, which consist of appropriations received totaling $8.3 billion and $8.2 

billion, respectively. This difference is due to CBP’s non-entity activity, which as of September 30, 2014 and 2013 

consists of $1.5 billion and $1.3 billion, respectively, for Refund and Drawback activity, $3.9 billion and $3.7 billion, 

respectively, for user/inspection fees and subsidy activity, that are not reported on the Consolidated Statements of 

Changes in Net Position, $51.5 million and $597.3 million, respectively, in rescissions, that are reported separately in 

Other Adjustments on the Consolidated Statements of Changes in Net Position, and $340.6 million and $382.9 

million, respectively, in non-expenditure transfers, that are reported separately on the Consolidated Statements of 

Changes in Net Position. 

Permanent, indefinite appropriations refer to the appropriations that result from permanent public laws, which 

authorize CBP to retain certain receipts. The amount appropriated depends upon the amount of the receipts rather 

than on a specific amount. CBP has a permanent, indefinite appropriation, Refunds and Drawbacks, which is used 

to disburse tax and duty refunds and duty drawbacks. Although funded through an appropriation, refund and 

drawback activity is, in most instances, reported as a custodial activity. Refunds are custodial revenue-related 

activity in that refunds are a direct result of importer overpayments of duties, taxes and fees. Federal tax revenue 

received from taxpayers is not available for use in the operation of CBP and is not reported on the Consolidated 

Statements of Net Cost. Likewise, the refunds of overpayments are not available for use by CBP in its operations. 

This appropriation is not subject to budgetary ceilings established by Congress. Refunds and drawbacks payable at 

year-end are not subject to funding restrictions. Refund payment funding is recognized as appropriations are used. 

24. Legal Arrangements Affecting the Use of Unobligated Balances 

Unobligated balances, for which the period of availability has expired, are not available to fund new obligations. 

Expired unobligated balances are available to pay for current period adjustments to obligations incurred prior to 

expiration. For a fixed appropriation account, the balance can be carried forward for five fiscal years after the period 

of availability ends. For a no-year account, the unobligated balance is carried forward indefinitely until (1) specifically 

rescinded by law; or (2) the head of the agency concerned or the President determines that the purposes for 
114 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

which the appropriation was made have been carried out and disbursements have not been made against the 

appropriation for two consecutive years. 

Included in the cumulative results of operations for special funds is $656.9 million at September 30, 2014, that 

represents CBP’s authority to assess and collect user fees relating to merchandise and passenger processing, to 

assess and collect fees associated with the services performed at certain small airports or other facilities, retain 

amounts needed to offset costs associated with collecting duties, and taxes and fees for the government of Puerto 

Rico. These special fund balances are restricted by law and in their use to offset specific costs incurred by CBP. 

The passenger fees in the COBRA User Fee Account, totaling approximately $249.0 million, as of September 30, 

2014 are restricted by law in their use to offset specific costs incurred by CBP. 

The entity trust fund balances result from CBP’s authority to use the proceeds from general order items sold at 

auction to offset specific costs incurred by CBP relating to their sale, to use available funds in the Salaries and 

Expense Fund to offset specific costs for expanding border and port enforcement activities, and to use available 

funds from the Harbor Maintenance Trust Fund to offset administrative expenses related to the collection of the 

Harbor Maintenance Fee. 

25. Explanation of Differences Between the SBR and the Budget of the U.S. Government

The table below documents the material differences between the FY 2013 Combined Statement of Budgetary 

Resources and the actual amounts reported for FY 2013 in the Budget of the United States Government. Since the 

FY 2014 financial statements are reported prior to the Budget of the United States Government, CBP is reporting for 

FY 2013 only. Typically, the Budget of the United States Government with the FY 2014 actual data is published in 

February of the subsequent year. Once published, the FY 2014 actual data will be available at OMB website, 

www.whitehouse.gov/omb. 

Differences between the SBR and the Budget of the US Government (in thousands): 

2013

Budgetary 

Resources

Obligations 

Incurred

Distributed 

Offsetting 

Receipts

Net 

Outlays

Combined Statement of Budgetary Resources $16,154,816 $14,862,504 $(3,776,910) $ 9,724,319

Differences:

 Expired Appropriation not Included in

 President’s Budget (331,030)

 Refunds & Drawbacks not Included in

 President’s Budget (70X0505) (1,298,206) (1,298,206) (1,304,739)

 Injured Domestic Industries not Included in 

 President’s Budget (20X5688) (307,773) (127,140) (127,140)

 Offsetting Receipts not Included in 

 the Treasury Annual Report 3,638 3,776,910

 Miscellaneous (2,001) 1,000 (2,000) (999)

Total Differences (1,939,010) (1,424,346) 1,638 2,344,032

Budget of the US Government $14,215,806 $13,438,158 $(3,775,272) $12,068,351

Expired authority represents funding for which CBP no longer has budget authority. Refund and Drawback and the 

Injured Domestic Industries activity is exempt from apportionment per OMB Circular A-11 and therefore is not 

included in the President’s Budget. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 115

Customs and Border Protection 

Notes to Financial Statements 

26. Undelivered Orders at the End of Period

An undelivered order exists when a valid obligation has occurred and funds have been reserved, but the goods or 

services have not been delivered and have not been prepaid. Undelivered orders for the period ended September 

30, 2014 and 2013 (in thousands): 

2014 2013

Unpaid $3,010,987 $2,954,472 

Upward/Downward Adjustment of Prior Period (330,071) (364,759)

Total Undelivered Orders at the End of Period $2,680,916 $2,589,713 

27. Custodial Revenues 

Custodial Revenue consists of duties, user fees, excise taxes, fines and penalties, refunds and drawbacks 

overpayments and interest associated with import/export activity that have been established as specifically 

identifiable, legally enforceable claims and remain uncollected as of year-end. These receivables are net of amounts 

deemed uncollectible, which were determined by considering the debtor’s payment record and willingness to pay, the 

probable recovery of amounts from secondary sources, such as sureties and an analysis of aged receivable activity. 

Primarily, revenue collections result from current fiscal year activity. 

Disbursements from the Refunds and Drawbacks Account for the fiscal years ended September 30, 2014 and 2013 

(in thousands): 

2014 2013

Refunds $ 586,009 $ 625,790

Drawbacks 949,683 873,121

Total $1,535,692 $1,498,911

Amounts refunded during FY 2014 and 2013 identified by entry year consist of the following (in thousands): 

Entry Year 2014

2014 $ 925,874

2013 320,336

2012 100,585

2011 45,295

Prior Years 143,602

Total $1,535,692

Entry Year 2013

2013 $ 824,708

2012 288,515

2011 95,876

2010 33,975

Prior Years 255,837

Total $1,498,911

The total amount of antidumping and countervailing duties varies from year to year, depending on decisions from the 

Department of Commerce. Antidumping and countervailing duty refunds (included in total refunds presented above) 

and associated interest refunded for the fiscal years ended September 30, 2014 and 2013, consisted of the following 

(in thousands): 

2014 2013

Antidumping and Countervailing Duty Refunds $170,131 $92,976

Interest 6,251 4,551

Total $176,382 $97,527
116 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Notes to Financial Statements 

28. Reconciliation of Net Cost of Operations to Budget

The following table presents CBP’s reconciliation of net cost of operations to budgetary accounts for the years ended 

 September 30, 2014 and 2013 (in thousands). 

2014 2013

Resources Used to Finance Activities:

Budgetary Resources Obligated

 Obligations Incurred $15,693,839 $14,862,504 

 Less: Spending Authority from Offsetting Collections and Recoveries 2,098,232 1,986,889

 Obligations Net of Offsetting Collections and Recoveries $13,595,607 $12,875,615

 Less: Offsetting Receipts 3,919,289 3,776,910

 Net Obligations $ 9,676,318 $ 9,098,705

 Other Resources

 Transfers In/Out Without Reimbursement 42,156 36,425

 Imputed Financing from Costs Absorbed by Others 685,831 598,159

 Other (Note 21) 3,038,754 3,210,294

 Net Other Resources Used to Finance Activities $ 3,766,741 $ 3,844,878

Total Resources Used to Finance Activities $13,443,059 $12,943,583

Resources Used to Finance Items Not Part of the Net Cost of Operations

 Change in Budgetary Resources Obligated for Goods, Services and Benefits 

 Ordered, but not yet Provided $ 236,381 $ (429,869)

 Resources that Fund Expenses Recognized in Prior Periods -- 439

 Budgetary Offsetting Collections and Receipts that do not Affect Net Cost of

 Operations (849,554) (515,626)

 Resources that Finance the Acquisition of Assets or Liquidation of Liabilities 425,205 609,154

 Tax Revenue Refunds and Other Resources or Adjustments to Net Obligated 

 Resources that do not Affect Net Cost of Operations 1,494,076 1,431,626

Total Resources Used to Finance Items Not Part of the Net Cost of Operations $ 1,306,108 $ 1,095,724

Total Resources Used to Finance the Net Cost of Operations $12,136,951 $11,847,859

Components of the Net Cost of Operations that will not Require or

Generate Resources in the Current Period:

 Components Requiring or Generating Resources in Future Periods

 Increase in Annual Leave Liability and Environmental Liability $ 31,548 $ 9,700 

 Change in Actuarial FECA Liability, Legal Contingent Liabilities and Other 32,490 141,633

 Total Components of Net Cost of Operations that will Require or Generate

 Resources in Future Periods $ 64,038 $ 151,333 

 Components Not Requiring or Generating Resources

 Depreciation and Amortization $ 630,985 $ 676,571

 Revaluation of Assets or Liabilities (5,924) (20,552)

 Other Non-budgetary Resources 85,659 (104,110)

 Total Components of Net Cost of Operations that will Not Require

 or Generate Resources

 Resources

$ 710,720 $ 551,909

Total Components of Net Cost of Operations that will Not Require or

Generate Resources in the Current Period $ 774,758 $ 703,242

Net Cost of Operations $12,911,709 $12,551,101

Notes to Financial Statements 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 117

Required Supplementary Information

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

Deferred Maintenance and Repairs 

Deferred maintenance and repairs are maintenance and repairs that were not performed when they should have been 

or were scheduled to be performed, and were delayed until a future period. Maintenance and repairs include 

preventive maintenance, normal repairs, replacement of parts and structural components, and other activities needed 

to preserve the asset so that it will continue to provide acceptable service and achieve its useful life. 

An assessment of “fair” means the facility/equipment condition meets minimum standards but requires additional 

maintenance or repair to prevent further deterioration, increase operating efficiency and to achieve normal life 

expectancy. An assessment of “good” means the facility/equipment condition is above minimum standards, but 

requires preventive maintenance or normal repairs to maintain the design intent of the building or equipment so that it 

continues to provide acceptable service and achieves the expected useful life. An assessment of “poor” means the 

facility/equipment does not meet most maintenance standards and requires frequent repairs to prevent accelerated 

deterioration and to provide a minimal level of operating function. In some cases, this includes condemned or failed 

facilities. Deferred maintenance on property, plant and equipment as measured by condition assessment survey, is 

comprised of (in thousands): 

2014

Condition 

Assessment

Deferred

Maintenance 

and Repairs

Building and Structures Poor to Good $119,300

Vehicles Good --

Equipment Good --

Multi-Use Heritage Assets Poor to Good 31,250

Collections (documents and artifacts) Poor to Good --

Total $150,550

2013

Condition 

Assessment

Deferred

Maintenance 

and Repairs

Building and Structures Poor to Good $181,484

Vehicles Good --

Equipment Good --

Multi-Use Heritage Assets Poor to Good 987

Collections (documents and artifacts) Poor to Good --

Total $182,471

Required Supplementary Information 
118 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

 Statement of Budgetary Resources (SBR) 

The total Budgetary Resources of $17.3 billion for FY 2014 includes new budget authority, unobligated balances at the 

beginning of the year and transferred in/out, spending authority from offsetting collections, recoveries of prior year 

obligations and adjustments.

 

Schedule of Budgetary Resources by Major Budget Accounts (in thousands):

2014

As of September 30, 2014 (in thousands):

Salaries & 

Expense Air & Marine BSFIT Construction Automation Other Total

Budgetary Resources

Unobligated balance brought forward, October 1 $ 245,596 $ 72,667 $420,691 $ 77,831 $ 84,115 $ 391,412 $ 1,292,312

Recoveries of prior year unpaid obligations 116,152 48,814 91,020 34,519 47,628 5,916 344,049

Other changes in unobligated balance (118,618) -- (1,811) -- 5,428 -- (115,001)

Unobligated balance from prior year budget

 authority, net 243,130 121,481 509,900 112,350 137,171 397,328 1,521,360

Appropriations 8,449,512 805,032 283,956 472,778 854,781 3,112,130 13,978,189

Spending authority from offsetting collections 1,695,632 14,536 3 -- 28,647 15,365 1,754,183

Total Budgetary Resources $10,388,274 $941,049 $793,859 $585,128 $1,020,599 $3,524,823 $17,253,732

Status of Budgetary Resources

Obligations incurred (Note 23) $10,016,042 $819,955 $437,097 $476,991 $ 882,587 $3,061,167 $15,693,839

Unobligated balance, end of year:

 Apportioned 212,021 114,807 334,544 49,523 120,087 186,450 1,017,432

 Unapportioned 160,211 6,287 22,218 58,614 17,925 277,206 542,461

Total unobligated balance, end of year 372,232 121,094 356,762 108,137 138,012 463,656 1,559,893

Total Budgetary Resources $10,388,274 $941,049 $793,859 $585,128 $1,020,599 $3,524,823 $17,253,732
2014 Performance and Accountability Report • U.S. Customs and Border Protection 119

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

 

2014

Salaries & 

Expense Air & Marine BSFIT Construction Automation Other Total

Change in Obligated Balance:

Unpaid Obligations:

 Unpaid obligations brought forward, 

 October 1 (gross) $ 1,178,792 $ 559,463 $ 512,721 $ 519,001 $ 342,214 $ 408,814 $ 3,521,005

 Obligations incurred (Note 23) 10,016,042 819,955 437,097 476,991 882,587 3,061,167 15,693,839

 Outlay (gross) (9,834,822) (817,857) (343,641) (455,699) (755,739) (3,011,627) (15,219,385)

 Recoveries of prior year unpaid obligations (116,152) (48,814) (91,020) (34,519) (47,628) (5,916) (344,049)

 Unpaid obligations, end of year (gross) $ 1,243,860 $ 512,747 $ 515,157 $ 505,774 $ 421,434 $ 452,438 $ 3,651,410

Uncollected Payments:

 Uncollected customer payments from Federal

 sources brought forward from October 1 (150,083) (591) -- -- -- (1,085) (151,759)

 Change in uncollected customer payments

 from federal sources 25,612 (3,076) -- -- (16,218) (765) 5,553

 Uncollected customer payments from 

 federal sources, end of year (124,471) (3,667) -- -- (16,218) (1,850) (146,206)

Obligated Balance, Start of Year $ 1,028,709 $ 558,872 $ 512,721 $ 519,001 $ 342,214 $ 407,729 $ 3,369,246

Obligated Balance, End of Year $ 1,119,389 $ 509,080 $ 515,157 $ 505,774 $ 405,216 $ 450,588 $ 3,505,204

Budget Authority and Outlays, Net:

Budget authority, gross 10,145,144 819,568 283,959 472,778 883,428 3,127,495 15,732,372

Actual offsetting collections (1,721,244) (11,460) (3) -- (12,429) (14,600) (1,759,736)

Change in uncollected customer payment from

 Federal sources 25,612 (3,076) -- -- (16,218) (765) 5,553

Budget Authority, Net $ 8,449,512 $ 805,032 $ 283,956 $ 472,778 $ 854,781 $ 3,112,130 $ 13,978,189

Outlays, gross $ 9,834,822 $ 817,857 $ 343,641 $ 455,699 $ 755,739 $ 3,011,627 $ 15,219,385

Actual offsetting collections (1,721,244) (11,460) (3) -- (12,429) (14,600) (1,759,736)

Outlays, net 8,113,578 806,397 343,638 455,699 743,310 2,997,027 13,459,649

Distributed offsetting receipts -- -- -- -- -- (3,919,289) (3,919,289)

Agency Outlays, Net $ 8,113,578 $ 806,397 $ 343,638 $ 455,699 $ 743,310 $ (922,262) $ 9,540,360
120 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

 

Schedule of Budgetary Resources by Major Budget Accounts:

2013

As of September 30, 2013 (in thousands):

Salaries & 

Expense Air & Marine BSFIT Construction Automation Other Total

Budgetary Resources

Unobligated balance brought forward, October 1 $ 268,273 $ 69,777 $407,160 $ 41,502 $ 99,244 $ 424,908 $ 1,310,864

Recoveries of prior year unpaid obligations 137,200 68,493 90,289 60,366 27,051 5,922 389,321

Other changes in unobligated balance (92,421) (1,375) (9,031) -- 6,880 -- (95,947)

Unobligated balance from prior year budget

 authority, net 313,052 136,895 488,418 101,868 133,175 430,830 1,604,238

Appropriations 8,234,379 758,262 234,256 209,527 722,847 2,793,739 12,953,010

Spending authority from offsetting collections 1,569,333 2,734 50 -- -- 25,451 1,597,568

Total Budgetary Resources $10,116,764 $897,891 $722,724 $311,395 $856,022 $3,250,020 $16,154,816

Status of Budgetary Resources

Obligations incurred (Note 23) $ 9,871,168 $825,224 $302,033 $233,564 $771,907 $2,858,608 $14,862,504

Unobligated balance, end of year:

 Apportioned 26,360 66,842 402,412 30,065 75,084 117,111 717,874

 Unapportioned 219,236 5,825 18,279 47,766 9,031 274,301 574,438

Total unobligated balance, end of year 245,596 72,667 420,691 77,831 84,115 391,412 1,292,312

Total Budgetary Resources $10,116,764 $897,891 $722,724 $311,395 $856,022 $3,250,020 $16,154,816
2014 Performance and Accountability Report • U.S. Customs and Border Protection 121

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

 

2013

Salaries & 

Expense Air & Marine BSFIT Construction Automation Other Total

Change in Obligated Balances

Unpaid Obligations:

 Unpaid obligations brought forward, 

 October 1 (gross) $ 1,761,724 $ 604,631 $ 644,865 $ 694,687 $ 177,004 $ 274,569 $ 4,157,480

 Obligations incurred (Note 23) 9,871,168 825,224 302,033 233,564 771,907 2,858,608 14,862,504

 Outlay (gross) (10,316,900) (801,900) (343,888) (348,883) (579,645) (2,718,442) (15,109,658) 

 Recoveries of prior year unpaid obligations (137,200) (68,493) (90,289) (60,366) (27,051) (5,922) (389,321) 

 Unpaid obligations, end of year (gross) 1,178,792 559,462 512,721 519,002 342,215 408,813 3,521,005

Uncollected Payments:

 Uncollected customer payments from Federal

 sources brought forward from October 1 (161,057) (363) (167) -- -- (1,033) (162,620)

 Change in uncollected customer payments

 from federal sources 10,974 (228) 167 -- -- (52) 10,861

 Uncollected customer payments from 

 federal sources, end of year (150,083) (591) -- -- -- (1,085) (151,759)

Obligated Balance, Start of Year $ 1,600,667 $ 604,268 $ 644,698 $ 694,687 $ 177,004 $ 273,536 $ 3,994,860

Obligated Balance, End of Year $ 1,028,709 $ 558,871 $ 512,721 $ 519,002 $ 342,215 $ 407,728 $ 3,369,246

Budget Authority and Outlays, Net:

Budget authority, gross $ 9,803,712 $ 760,996 $ 234,306 $ 209,527 $ 722,847 $ 2,819,190 $ 14,550,578

Actual offsetting collections (1,580,307) (2,506) (217) -- -- (25,399) (1,608,429)

Change in uncollected customer payment from

 Federal sources 10,974 (228) 167 -- -- (52) 10,861

Budget Authority, Net $ 8,234,379 $ 758,262 $ 234,256 $ 209,527 $ 722,847 $ 2,793,739 $ 12,953,010

Outlays, gross $ 10,316,900 $ 801,900 $ 343,888 $ 348,883 $ 579,645 $ 2,718,442 $ 15,109,658

Actual offsetting collections (1,580,307) (2,506) (217) -- -- (25,399) (1,608,429)

Outlays, net 8,736,593 799,394 343,671 348,883 579,645 2,693,043 13,501,229

Distributed offsetting receipts -- -- -- -- -- (3,776,910) (3,776,910)

Agency Outlays, Net $ 8,736,593 $ 799,394 $ 343,671 $ 348,883 $ 579,645 $(1,083,867) $ 9,724,319
122 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection 

Required Supplementary Information

(Unaudited) 

Custodial Activity

Substantially all duty, tax and fee revenues collected by CBP are remitted to various General Fund accounts 

maintained by Treasury and the U.S Department of Agriculture. Treasury further distributes these revenues to other 

Federal agencies in accordance with various laws and regulations. CBP transfers the remaining revenue (less than 

one percent of revenues collected) directly to other Federal agencies, the Governments of Puerto Rico and the U.S. 

Virgin Islands. Refunds of revenues collected from import/export activities are recorded in separate accounts 

established for this purpose and are funded through permanent, indefinite appropriations. These activities reflect the 

non-entity, or custodial, responsibilities that CBP, as an agency of the Federal government, has been authorized by 

law to enforce. 

CBP reviews selected documents to ensure all duties, taxes and fees owed to the Federal government are paid and to 

ensure regulations are followed. If CBP determines that duties, taxes, fees, fines or penalties are due in addition to 

estimated amounts previously paid by the importer/violator, the importer/violator is notified of the additional amount 

due. CBP regulations allow the importer/violator to file a protest on the additional amount due for review by the Port 

Director. A protest allows the importer/violator the opportunity to submit additional documentation supporting their 

claim of a lower amount due or to cancel the additional amount due in its entirety. During the protest period, CBP does 

not have a legal right to importer/violator’s assets, and consequently CBP recognizes accounts receivable only when 

the protest period has expired or an agreement is reached. For FY 2014 and 2013, CBP had the legal right to collect 

$3.1 billion and $2.7 billion of receivables, respectively. In addition, there were $2.8 billion and $2.3 billion 

representing records still in the protest phase for FY 2014 and 2013, respectively. CBP recognized as write-offs $47.4

million and $288 million of assessments that the Department has statutory authority to collect at September 30, 2014 

and 2013, respectively, but has no future collection potential. Most of this amount represents trade receivables. 

Auditors’ Report

The independent audit of CBP’s consolidated financial statements was conducted by KPMG LLP, and 

follows in its entirety.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 123

Independent Auditors' Report 

on U.S. Customs and Border 

Protection's FY 2014 

Financial Statements 

April 21, 2015 

OIG-15-76 

Auditor’s Report
124 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

HIGHLIGHTS

Independent Auditors' Report on

U.S. Customs and Border Protection’s 

FY 2014 Financial Statements

April 21, 2015 

Why We 

Did This 

The Federal Government has a 

fundamental responsibility to 

be an effective steward of 

taxpayers’ dollars. Sound 

financial practices and related 

management operations, 

reliable financial systems, and 

effective internal control are 

essential for reliable, timely 

financial information that 

supports management 

decision- making needed to 

achieve Customs and Border 

Protection’s (CBP) mission. 

What We 

Recommend 

KPMG LLP made 18 

recommendations to help 

improve internal control over 

financial reporting and increase 

the reliability of financial 

systems and operations. These 

recommendations address the 

four significant deficiencies 

identified in the report. 

For Further Information: 

Contact our Office of Public Affairs at 

(202) 254-4100, or email us at 

DHS-OIG.OfficePublicAffairs@oig.dhs.gov 

What We Found 

The independent public accounting firm, 

KPMG LLP, has issued an unmodified (clean) 

opinion on CBP’s fiscal year 2014 

consolidated financial statements. In the 

independent auditors’ opinion, the financial 

statements present fairly, in all material 

respects, the financial position of CBP as of 

September 30, 2014. 

The report identifies four significant 

deficiencies in internal control, one of which 

KPMG LLP considers to be a material 

weakness in the area of drawback duties, 

taxes, and fees. The other three significant 

deficiencies in internal control were 

identified in the areas of property, plant, and 

equipment; entry process (including the inbond program, bonded warehouse and 

foreign trade zones, entry reports, bond 

sufficiency, and classification of custodial 

liabilities); and information technology. 

CBP’s Response 

CBP concurred with the one material 

weakness and the three significant 

deficiencies identified in the report and 

indicated that management will continue to 

work to resolve all identified weaknesses. 

www.oig.dhs.gov OIG-15-76 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 125

OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Washington, DC 20528 / www.oig.dhs.gov 

APR 21 2015

MEMORANDUM FOR: Jaye M. Williams 

Chief Financial Officer 

U.S. Customs and Border Protection 

FROM: Mark Bell 

Assistant Inspector General for Audits 

SUBJECT: Independent Auditors’ Report on U.S. Customs and 

Border Protection’s FY 2014 Financial Statements 

Attached for your action is our final report, Independent Auditors’ Report on 

U.S. Customs and Border Protection’s FY 2014 Financial Statements. We have 

incorporated the formal comments from U.S. Customs and Border 

Protection (CBP) in the final report. 

The report presents the results of CBP’s consolidated financial statements 

audits for fiscal years (FY) 2014 and 2013. We contracted with the 

independent public accounting firm KPMG LLP to perform the audits. KPMG 

LLP concluded that CBP’s consolidated financial statements as of and for 

the years ended September 30, 2014, and September 30, 2013, are 

presented fairly, in all material respects, in conformity with U.S. generally 

accepted accounting principles. 

The independent auditors’ report also contains observations and 18 

recommendations related to internal control weaknesses that are considered 

significant deficiencies and are required to be reported in the financial 

statements audit report. Your office concurred with the four significant 

deficiencies in internal control presented below, the first of which is 

considered to be a material weakness: 
126 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

OFFICE OF INSPECTOR GENERAL

 Department of Homeland Security 

Significant Deficiencies in Internal Control 

A. Drawback of Duties, Taxes, and Fees 

B. Property, Plant, and Equipment 

C. Entry Process 

1. In-Bond Program 

2. Bonded Warehouse and Foreign Trade Zones 

3. Entry Reports 

4. Bond Sufficiency 

5. Classification of Custodial Liabilities 

D. Information Technology 

KPMG LLP (KPMG) is responsible for the attached independent auditors’ 

report dated April 1, 2015, and the conclusions expressed in the report. To 

ensure the quality of the audit work performed, we evaluated KPMG’s 

qualifications and independence, reviewed the approach and planning of the 

audit, monitored the progress of the audit at key points, reviewed and 

accepted KPMG’s audit report, and performed other procedures that we 

deemed necessary. Additionally, we provided oversight of the audit of 

financial statements and certain accounts and activities conducted at CBP. 

Our review disclosed no instances where KPMG did not comply, in all 

material respects, with generally accepted governments auditing standards. 

Consistent with our responsibility under the Inspector General Act, we will 

provide copies of our report to congressional committees with oversight and 

appropriation responsibility over the Department of Homeland Security. We 

will post the report on our website for public dissemination. 

Please call me with any questions, or your staff may contact Paul Wood, 

Acting Deputy Assistant Inspector General for Audits, at (202) 254-4100. 

Attachment 

www.oig.dhs.gov OIG-15-76 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 127

OFFICE OF INSPECTOR GENERAL

 Department of Homeland Security 

Table of Contents 

Independent Auditors’ Report ......................................................................... 1 

Exhibit I – Material Weakness....................................................................... I.1 

Exhibit II – Significant Deficiencies.............................................................. II.1 

Exhibit III – Index of Financial Reporting and Internal Control Criteria...... III.1 

Appendixes 

Appendix A: Management Comments to the Report..................................... 2

Appendix B: Report Distribution.................................................................. 3

www.oig.dhs.gov OIG-15-76 
128 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

KPMG LLP

Suite 12000

1801 K Street, NW 

Washington, DC 20006

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

Independent Auditors’ Report 

Inspector General 

U.S. Department of Homeland Security: 

Commissioner 

U.S. Customs and Border Protection: 

Report on the Financial Statements 

We have audited the accompanying consolidated financial statements of the U.S. Customs and Border 

Protection (CBP), which comprise the consolidated balance sheets as of September 30, 2014 and 2013, and 

the related consolidated statements of net cost, changes in net position, and custodial activity, and combined 

statements of budgetary resources for the years then ended, and the related notes to the consolidated financial 

statements. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these consolidated financial 

statements in accordance with U.S. generally accepted accounting principles; this includes the design, 

implementation, and maintenance of internal control relevant to the preparation and fair presentation of 

consolidated financial statements that are free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards issued by 

the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 

No. 14-02, Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin 

No. 14-02 require that we plan and perform the audit to obtain reasonable assurance about whether the 

consolidated financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the 

assessment of the risks of material misstatement of the consolidated financial statements, whether due to 

fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the consolidated financial statements in order to design audit procedures 

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 

of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating 

the appropriateness of accounting policies used and the reasonableness of significant accounting estimates 

made by management, as well as evaluating the overall presentation of the consolidated financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 129

Opinion on the Financial Statements 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, 

the financial position of CBP as of September 30, 2014 and 2013, and its net costs, changes in net position, 

budgetary resources, and custodial activity for the years then ended in accordance with U.S. generally 

accepted accounting principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles require that the information in the Management’s Discussion 

and Analysis and Required Supplementary Information sections be presented to supplement the basic 

consolidated financial statements. Such information, although not a part of the basic consolidated financial 

statements, is required by the Federal Accounting Standards Advisory Board who considers it to be an 

essential part of financial reporting for placing the basic consolidated financial statements in an appropriate 

operational, economic, or historical context. We have applied certain limited procedures to the required 

supplementary information in accordance with auditing standards generally accepted in the United States of 

America, which consisted of inquiries of management about the methods of preparing the information and 

comparing the information for consistency with management’s responses to our inquiries, the basic 

consolidated financial statements, and other knowledge we obtained during our audits of the basic 

consolidated financial statements. We do not express an opinion or provide any assurance on the information 

because the limited procedures do not provide us with sufficient evidence to express an opinion or provide 

any assurance. 

Other Information 

Our audits were conducted for the purpose of forming an opinion on the basic consolidated financial 

statements as a whole. The Commissioner’s Message, Performance Section, Message from the Chief 

Financial Officer, Other Information, and Acronyms as reflected in CBP’s Fiscal Year 2014 Performance 

and Accountability Report are presented for purposes of additional analysis and are not a required part of the 

basic consolidated financial statements. Such information has not been subjected to the auditing procedures 

applied in the audit of the basic consolidated financial statements, and accordingly, we do not express an 

opinion or provide any assurance on it. 

Other Reporting Required by Government Auditing Standards 

Internal Control Over Financial Reporting 

In planning and performing our audit of the consolidated financial statements as of and for the year ended 

September 30, 2014, we considered CBP’s internal control over financial reporting (internal control) to 

determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the 

effectiveness of CBP’s internal control. Accordingly, we do not express an opinion on the effectiveness of 

CBP’s internal control. We did not test all internal controls relevant to operating objectives as broadly 

defined by the Federal Managers’ Financial Integrity Act of 1982.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and 

was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not 

been identified. However, as described in the accompanying exhibits we identified certain deficiencies in 

internal control that we consider to be a material weakness and significant deficiencies.
130 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

A deficiency in internal control exists when the design or operation of a control does not allow management 

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in 

internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies 

described in Exhibit I to be a material weakness. 

A. Drawback of Duties, Taxes, and Fees 

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe 

than a material weakness, yet important enough to merit attention by those charged with governance. We 

consider the deficiencies described in Exhibit II to be significant deficiencies. 

B. Property, Plant, and Equipment 

C. Entry Process 

D. Information Technology 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether CBP’s consolidated financial statements are free 

from material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, and contracts, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts, and certain provisions of other laws and regulations specified 

in OMB Bulletin No. 14-02. However, providing an opinion on compliance with those provisions was not 

an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests of 

compliance disclosed no instances of noncompliance or other matters that are required to be reported herein 

under Government Auditing Standards or OMB Bulletin No. 14-02. 

CBP’s Responses to Findings 

CBP’s responses to the findings identified in our audit are described in Management’s Response to the 

Independent Auditors’ Report. CBP’s responses were not subjected to the auditing procedures applied in the 

audit of the consolidated financial statements and, accordingly, we express no opinion on the responses. 

Purpose of the Other Reporting Required by Government Auditing Standards 

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

result of that testing, and not to provide an opinion on the effectiveness of CBP’s internal control or 

compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, D.C. 

April 1, 2015 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 131

EXHIBIT I

Material Weakness 

A. Drawback of Duties, Taxes, and Fees 

Background: 

U.S. Customs and Border Protection (CBP) performs an important revenue collection function for the U.S. 

Department of the Treasury. In fiscal year (FY) 2014, CBP collected approximately $39.0 billion in import 

duties, taxes, and fees on merchandise arriving in the U.S. from foreign countries. Receipts of import duties 

and related refunds are presented in the statement of custodial activity in CBP’s consolidated financial 

statements.

Refunds occur when a claimant has paid duties, taxes, fees, and interest in excess of the amount due. As a 

result, a refund check is issued. CBP issues a variety of types of refunds, including baggage declaration 

refunds, refunds of cash deposits in lieu of surety, mail refunds, and administrative refunds of formal entry 

collections. One week prior to the processing of a refund for payment, the refund appears on the B41, 

Preliminary Check Proof Listing Report. A separate individual from the reviewer of the refund request 

reviews and verifies the B41, Preliminary Check Proof Listing Report to verify that the refund payment is 

properly supported. 

Drawback, which is a particular type of refund, is the remittance, in whole or in part, of duties, taxes, or fees 

previously paid by an importer. Drawback typically occurs when the imported goods, on which duties, taxes, 

or fees have been previously paid, are subsequently exported from the United States or destroyed prior to 

entering the commerce of the United States. Depending on the type of drawback claim, the claimant has up 

to eight years from the date of importation to file for drawback. The responsibility for maintaining 

documentation to support drawback claims remains with the brokers and claimants. 

CBP offers accelerated payment privileges to qualifying claimants, and in turn the claimants are required to 

maintain 100 percent bond coverage through either a continuous or single transaction bond. In years past, 

CBP’s system has been incapable of properly accounting for bond sufficiency of claims that involve a 

continuous bond. Therefore, the Drawback Specialists responsible for reviewing the accelerated payment 

claims are required to verify that sufficient bond coverage remains on the bond in order to accelerate the 

claim.

The conditions cited below have existed for several years; however, CBP’s planned remediation for these 

conditions is dependent upon funding for IT systems modernization and new system implementation. In 

FY 2014, CBP continued its efforts to review and reassess the drawback process as a whole. 

Conditions:

We identified the following weaknesses in internal control over refund and drawback of duties, taxes, and 

fees paid by the importer: 

• CBP lacks effective controls to prevent, or detect and correct excessive drawback claims. Currently, 

the drawback module provides information to ensure that the total amount of all drawback claims 

against a given import entry does not exceed 100 percent of the total amount of duties, taxes, and fees 

collected, at the entry summary level. However, the amount paid for drawback claims against a given 

import entry should not exceed 99 percent of the duties, taxes, and fees collected at the individual line 

item level and the entry summary level. In addition, export information is not linked to the drawback 

module and therefore, electronic comparisons of export data cannot be performed. 

• The drawback system does not allow for an automated review of all prior drawback claims against a 

selected import entry to determine whether an excessive amount has been claimed against the 

underlying consumption entry sheets. A manual review of all prior claims against a selected import 

entry is not feasible. Therefore, CBP utilizes a validity control review process to select and trace the 

I. 1
132 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT I

highest dollar invoice item on the highest dollar consumption entry sheet for claims over $50,000.

However, this approach is not statistical. In addition, drawback review policy and procedures allow 

the Drawback Specialist, with supervisor approval, to judgmentally decrease the number of 

consumption entry sheets reviewed for certain claims. This methodology is also not statistical and 

CBP’s Drawback Handbook does not include procedures for statistically projecting errors across the 

population. 

• The length of document retention of a drawback claim, per the Code of Federal Regulations, is three 

years from the date of payment. However, there are several situations that could extend the life of the 

drawback claim beyond three years from the date of payment.

• The system does not properly account for bond sufficiency of claims that involve a continuous bond. 

Specifically, the automated control that prevents a claimant from exceeding the bond amount on file 

does not operate effectively. The control is designed to accumulate all open accelerated payments 

against a continuous bond to ensure that the bond is sufficient. However, the system does not always 

track open accelerated payments against continuous bonds. Additionally, manual procedures are not 

in place to ensure the sufficiency of continuous bonds. In FY 2012, CBP began developing a script 

that indicates the bond number, claimants listed on the bond, anniversary date of the bond, bond value, 

and a list of all drawback payments applied against the bond. However, the script has not been fully 

tested and developed to allow for it to be implemented and released into production within the system. 

• CBP did not maintain sufficient documentation to evidence review of the B41, Preliminary Check 

Proof Listing Report. For example, at one port only the first page was retained. Therefore, it was 

impossible to verify the refund amount to the B41 report. At another port, the first page was not 

retained, therefore proper review of the B41 report could not be determined. 

Cause/Effect: 

The current drawback system does not provide the necessary functionality to prevent overpayment of 

drawback claims. CBP plans to replace the current drawback system with a new system in FY 2015.

However, CBP does not currently have sufficient resources to effectively perform compensating manual 

controls over drawback claims until such implementation of the new automated system occurs. 

There is a high inherent risk of fraudulent claims or claims made in error, which increases the risk for 

erroneous payments. Since all, or a statistically valid sample, of drawback claims are not reviewed against a

selected import entry, the possibility exists that the related drawback claims, in aggregate, could exceed the 

amount of duty and tax collected on the underlying consumption entry sheet at the individual line item level. 

Thus, an import entry could be over-claimed by submitting multiple claims for the same item and the error 

would not be detected. 

The length of the drawback claim lifecycle often extends beyond the statutorily mandated document retention 

period, which can only be changed by Congressional legislation. Therefore, CBP management may not be 

able to obtain sufficient, competent evidence to determine whether the recorded drawback claims exist and 

are complete and accurate. 

Since the current drawback system is scheduled for replacement, CBP has not allocated funding to complete 

development of the bond script within the current system. The use of manual control procedures to track 

bonds is not an efficient and effective means of ensuring the sufficiency of continuous bonds. Therefore, if 

a claimant claims an incorrect amount of drawback via accelerated payment and the claimant is paid without 

sufficient bond coverage on file, CBP may not be able to recollect the overpayment from the surety, as the 

bond will be insufficient. 

I. 2
2014 Performance and Accountability Report • U.S. Customs and Border Protection 133

EXHIBIT I

CBP did not consistently adhere to policies and procedures over the review of the B41, Preliminary Check 

Proof Listing Report. Failure to consistently adhere to the policies and procedures for reviewing the report 

may result in CBP not identifying inaccurate or unsupported refunds, resulting in the potential misstatement 

of the Taxes, Duties, and Trade Receivables, Net balance. 

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Recommendations: 

We recommend that CBP: 

1. Continue with the implementation of drawback functionality in the new system as scheduled. 

2. Dedicate sufficient resources to effectively perform compensating manual controls over drawback 

claims, including implementation of a statistical method for identifying potential revenue loss until 

CBP systems can be updated to implement an automated solution. 

3. Continue to pursue Congressional action in order to have the statutory requirement set by Congress 

changed. 

4. Include requirements to automate bond sufficiency for drawback in the development of drawback 

functionality in the new system. Additionally, until such time as the automated functionality is 

operating in the new system, CBP should develop manual control procedures to track the sufficiency 

of continuous bonds. 

5. Institute a periodic monitoring control to ensure accurate and timely reconciliations are performed,

including the redistribution of relevant directives to personnel that communicate the required steps 

for completing the reconciliations. 

I. 3
134 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT II

Significant Deficiencies 

B. Property, Plant, and Equipment 

Background: 

U.S. Customs and Border Protection (CBP) acquired new equipment, facilities, and other assets through 

purchase and construction in FY 2014. The increase in assets is primarily due to construction of new 

facilities and software. This was offset by the depreciation of assets previously placed-in-service. 

Condition: 

CBP continued to have weaknesses in its processes for tracking and reporting property, plant, and 

equipment (PP&E) balances. Specifically, CBP did not: 

• Adhere to policies and procedures to timely and accurately record certain construction-in-progress 

(CIP) settlement transactions, resulting in misclassification of assets between CIP, completed assets, 

accumulated depreciation, and depreciation expense. 

• Have adequate controls in place to verify that the correct amount was settled from CIP to completed 

assets. 

• Produce an auditable population of CIP projects as of April 30, 2014, and had to conduct further 

analysis of CIP projects in order to provide an auditable population at fiscal year-end. 

• Have adequate controls in place to timely and accurately record the acquisition of new assets to the 

general ledger in accordance with policies and procedures. 

• Have adequate controls in place to detect and correct for errors when certain assets recorded in the 

general ledger no longer existed. 

• Adhere to policies and procedures to timely record certain asset retirements. Additionally, some 

assets were retired prior to receiving proper approval in accordance with policies.

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Cause/Effect: 

Due to the decentralized nature of CBP’s PP&E, CBP’s policies are heavily reliant upon individuals in local 

field offices to submit timely and accurate information. CBP personnel do not consistently adhere to 

policies and procedures to ensure that transactions are recorded in a timely manner and for the correct 

amount. CBP management has not implemented appropriate monitoring controls to ensure compliance with 

stated policies and procedures by CBP personnel. 

However, CBP is at an increased risk of errors and misstatements due to the untimely recording of asset 

retirement transactions and the disposal of assets without proper authorization. In addition, disposal of 

physical assets prior to approval increases the risk of misappropriation of assets. 

CBP’s PP&E and related depreciation balances were misstated during the fiscal year due to untimely or 

inaccurate PP&E entries. At year-end, CBP’s General PP&E, CIP, Accumulated Depreciation, and Prior 

Period Adjustments Due to Corrections of Errors contained uncorrected factual and projected 

misstatements.

II. 1
2014 Performance and Accountability Report • U.S. Customs and Border Protection 135

EXHIBIT II

Recommendations: 

We recommend that CBP: 

1. Distribute and reinforce policies and procedures to local field offices to ensure that completed assets 

are transferred from CIP to general PP&E in a timely manner. 

2. Strengthen monitoring controls to ensure accountability at the project manager level for timely asset 

creation and settlement, as well as compliance with stated policies and procedures. Additionally, 

monitoring controls should include processes to identify projects that are nearing completion or have 

not had recent activity, as these have a higher risk of no longer being valid CIP projects. 

3. Educate field personnel, including project managers and supervisors on the importance of following 

policies and procedures to ensure that asset additions are recorded in a timely manner. 

4. Modify policies and procedures to require formal authorization and documentation of all asset

retirements, emphasize the importance of timely reporting asset retirement transactions, and develop 

and implement monitoring controls to ensure compliance with stated policies and procedures for 

asset retirements.

C. Entry Process 

1. In-Bond Program 

Background: 

An in-bond entry allows for the movement of cargo through the United States without payment of duty or 

appraisement prior to entry into either domestic commerce or exportation to a foreign country. The cargo 

may enter U.S. commerce after it arrives at the destination port and an entry is filed, may be entered into a 

bonded warehouse (BW) for storage, or may be admitted into a Foreign Trade Zone (FTZ).

To assist with in-bond oversight functions, CBP implemented the In-Bond Compliance Module in 

September 2012. CBP conducts audits and examinations to assist in protecting custodial revenues related 

to in-bond entries of goods. CBP performs audits by reviewing entry documents or documents that show 

proof of subsequent export to ensure proper accounting of all merchandise has occurred. Examinations are 

conducted by physical inspection of the merchandise to ensure the commodity matches the entry 

documentation. At the end of each audit or examination, the findings, conclusions, and corrective actions 

recommended or taken are documented. These results assist CBP in assessing the risk of bonded carriers. 

We identified control deficiencies over the in-bond process from FY 2006 through FY 2013. CBP

developed an “NFR Analysis and Remediation Strategy” in response to these prior year findings, with full 

implementation planned for the fourth quarter of FY 2014. We confirmed that a revised policy was 

developed by CBP and implemented on April 1, 2014. Additionally, CBP Management stated that a memo 

was issued on October 2, 2014, which directed ports to implement oversight plans for in-bond, including 

the ports’ procedures and processes when conducting in-bond examinations and audits. These plans were 

due November 19, 2014, and therefore they were not considered during the FY 2014 audit. 

Condition: 

The following weaknesses in internal control over compliance exams and audits were identified: 

• Revised policies and procedures over the in-bond process were not implemented until April 1, 2014. 

Therefore, prior year weaknesses continued to exist through the first half of FY 2014. Additionally, 

port personnel did not have a clear understanding of how to operate the newly implemented 

compliance module, which led to inconsistent implementation across ports. 

II. 2
136 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT II

• Complete and accurate listings of the completed in-bond compliance exams, audits, and the 

underlying individual audit/exam results cannot be reliably generated from the system. 

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Cause/Effect: 

CBP did not effectively communicate the revised policy across the organization and did not provide 

sufficient training to port personnel prior to the implementation of the revised policy. Additionally, system 

functionality issues continue to result in report discrepancies. The system also lacks sufficient document 

retention capability to support the in-bond compliance exam and audit function at the port level. Further, 

port personnel are not required to maintain supporting documentation to evidence performance of required 

in-bond compliance exams and audits outside of the system.

The in-bond monitoring process supports CBP’s efforts to protect custodial revenues. The inability to 

effectively monitor the in-bond process could result in missed opportunities for CBP to assess fines and 

penalties and collect the associated revenues. 

Recommendations: 

We recommend that CBP implement additional training at port locations over in-bond tracking and 

compliance, as well as develop a process to ensure effective oversight of the in-bond process. Additionally, 

we recommend that CBP implement policies and procedures that resolve the insufficient document 

retention capability of the system. 

2. Bonded Warehouse and Foreign Trade Zones 

Background: 

Bonded Warehouses (BWs) are facilities under CBP’s supervision used to store merchandise that has not 

made entry into U.S. commerce. The merchandise stored in such warehouses is secured by the bond on the 

warehouse. Merchandise is entered into the BW by the submission of the CBP Form 7501, Entry Summary 

with Continuation Sheets, and can be stored in the bonded facility for up to five years. 

Foreign Trade Zones (FTZs) are secure areas under CBP supervision that are legally considered to be 

outside the commerce of the United States. Authority for establishing these facilities is granted by the FTZ 

Board under the FTZ Act of 1934, as amended (19 U.S.C. 81a through 81u). Foreign and domestic 

merchandise may be admitted into zones for operations not otherwise prohibited by law, including storage, 

exhibition, assembly, manufacturing, and processing. Merchandise is admitted into an FTZ using CBP 

Form 214, Application for Foreign-Trade Zone Admission and/or Status Designation.

The monitoring of BW and FTZ operations is based on the performance of risk assessments and compliance 

reviews by CBP officers in the field. CBP conducts a quarterly survey of ports that have BWs and FTZs, 

the results of which are submitted to CBP Headquarters for compilation and analysis. Headquarters uses 

the survey results to assist in CBP’s determination on the effectiveness of the BW and FTZ programs. CBP 

developed national databases in order to maintain a centralized repository of profiles of bonded facilities,

including BW and FTZ sites. 

II. 3
2014 Performance and Accountability Report • U.S. Customs and Border Protection 137

EXHIBIT II

Condition: 

The following weaknesses in internal control over the BW and FTZ programs were identified: 

• A reconciliation of the codes assigned within the system to the compliance review schedule 

maintained by each port was not fully implemented during FY 2014.

• CBP was unable to provide documentation to evidence the completion of compliance reviews to 

support the assessed risk level for certain BW and FTZ reviews. 

• CBP improperly recorded the risk level of an FTZ based on the compliance review that was 

conducted. 

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Cause/Effect: 

CBP had not completed its review of system codes to ensure the completeness and accuracy of data 

maintained within the system. Therefore, the results of any reconciliations performed, would not be reliable.

In addition, CBP personnel did not consistently adhere to BW and FTZ policies and procedures in relation 

to the completion of compliance reviews.

These weaknesses in internal control increase the likelihood that CBP is not in compliance with Title 19 of 

the Code of Federal Regulations. Further, improper monitoring of BWs or FTZs creates a risk that imported 

goods awaiting entry into commerce may not be secure, and could result in a loss of revenue or error to the 

Taxes, Duties, and Trade Receivables, Net balance. 

Recommendations: 

We recommend that CBP: 

1. Complete the process of reconciling codes for bonded facilities. 

2. Implement additional training at ports and/or additional oversight controls to ensure risk assessments 

for BWs and FTZs are consistently performed in accordance with required guidelines. 

3. Entry Reports 

Background: 

CBP personnel process and review certain entry edit/exception reports, including the following: 

• The B06, Weekly List of Rejected/Cancelled Entries Report, denotes entries that were either 

cancelled or placed in rejected status. 

• The B07, Weekly List of Unpaid/Rejected Entries, denotes entries in rejected status and entries for 

which duty, taxes, and fees have not been collected, or if collected, not properly posted to the entry. 

• The B08, Weekly Late Report: Entry Releases with No Follow-Up Summaries, is a cumulative listing 

of entry releases with no processing errors or follow-up entry summary on file. 

• The B84, Weekly Budget Clearing Account (BCA) and Suspense Item Report, is a cumulative listing 

of collections that are an intentional posting to a suspense account or collections in an error 

condition. 

II. 4
138 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT II

Condition: 

CBP personnel did not consistently complete and review reports in accordance with the directives 

requirements. Specifically, a lack of segregation of duties was identified over the review process for certain 

reports as the individuals who performed the transactions were also responsible for reviewing the reports 

of those transactions. In addition, some entry exception/edit reports selected did not include evidence that 

the actions taken to resolve the exceptions or to verify the edits were performed timely or at all.

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Cause/Effect: 

CBP port personnel did not consistently adhere to the policies and procedures in place to ensure entry 

edit/exception reports were resolved properly. CBP does not have adequate controls in place to enforce the 

segregation of duties over the processing, review, and verification of entry edit/exception reports at the 

ports. 

Failure to consistently adhere to existing policies and procedures for review and verification of entry 

edit/exception reports may cause CBP not to identify improperly cancelled or deleted entries, unpaid duties, 

late entry summaries, or duties held in suspense accounts, resulting in a potential misstatement to the Taxes, 

Duties, and Trade Receivables, Net balance.

Recommendation: 

We recommend that CBP redistribute to all ports of entry the relevant directives communicating the steps 

for completing report reconciliations. Additionally, we recommend that CBP institute a quarterly 

monitoring control by local port of entry management to ensure the timely completion of reconciliations. 

4. Bond Sufficiency 

Background: 

CBP requires bonds from parties that import merchandise into the United States. These bonds are contracts 

to secure payment of duties, taxes, and fees in the event that an importer fails to fulfill their financial 

obligations. The assessment of liquidated damages against a bond serves to promote compliance with laws 

and regulations. 

The two primary types of customs bonds are continuous bonds and single transaction bonds (STBs). A 

continuous bond is typically obtained by importers that have a large number of entries across several ports 

of entry. The bond has a term of one year and is automatically renewed each year until it is terminated by 

the surety or the principal. An STB serves as collateral for a specific entry or transaction. 

Condition: 

The following weaknesses in internal control over STBs were identified: 

• CBP was unable to provide documentation to support the review of two STBs that were submitted 

electronically. 

• The execution date and transaction date of an STB occurred after the date of entry per the entry 

summary form. Therefore, the STB was invalid. 

II. 5
2014 Performance and Accountability Report • U.S. Customs and Border Protection 139

EXHIBIT II

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit IV.

Cause/Effect: 

CBP did not consistently adhere to policies and procedures for the review of STBs. Failure to adhere to 

existing policies and procedures for the review of STBs may cause CBP not to collect all revenue owed,

resulting in an inability to identify all trade receivables. 

Recommendation: 

We recommend that CBP implement a centralized approach to monitoring STBs. 

5. Classification of Custodial Liabilities 

Background: 

CBP is authorized to collect duties and taxes for Puerto Rico and to recover CBP’s cost of services from 

the collections. CBP recorded the net duties and taxes that are due to Puerto Rico, as well as amounts 

potentially payable to an importer that are under protest, as accounts payable. However, these amounts met 

the definition of custodial liabilities. 

Condition: 

The internal control over the review of manual journal entries recorded for amounts to be paid to Puerto 

Rico was not operating effectively, as the liabilities were improperly recorded as Accounts Payable rather 

than Custodial Liabilities.

Criteria: 

Presented in Index of Financial Reporting and Internal Control Criteria, Exhibit III.

Cause/Effect: 

CBP’s review of the manual journal entries did not ensure appropriate posting logic was used, based on 

applicable guidance per Statement of Federal Financial Accounting Standard (SFFAS) No. 7, Accounting 

for Revenue and Other Financing Sources, and the United States Standard General Ledger (USSGL) with 

respect to accounting for Puerto Rico transactions. The aggregate impact of the three misclassifications is 

an overstatement of Accounts Payable and an understatement of Custodial Liabilities.

Recommendation: 

We recommend that CBP correct the posting logic applied in preparing journal entries related to amounts 

payable to Puerto Rico, such that amounts owed are recorded to SGL 2980, Custodial Liability, rather than 

SGL 2110, Accounts Payable. 

D. Information Technology 

Background: 

Controls over information technology (IT) and related financial systems are essential elements of financial 

reporting integrity. Effective IT controls in an IT financial systems environment can be defined in five key 

general control areas (security management, access control, configuration management, segregation of 

duties, and contingency planning) and four key application control areas (application level general controls, 

business process controls, interface controls, and data management system controls) . In addition to reliable 

general and application controls, financial management system functionality is important to program 

monitoring, increasing accountability of financial and program managers, providing better information for 

II. 6
140 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT II

decision-making, and increasing the efficiency and effectiveness of services provided by the Federal 

government. 

Condition: 

CBP took corrective actions to address prior year IT control deficiencies, and successfully closed 12 of 18 

deficiencies that were followed up on in FY2014. For example, CBP made improvements to password 

parameters, audit log reviews and maintenance of evidence, recertification of user access, provisioning of 

user access, removing separated personnel in a timely manner, enforcing segregation of duties, and 

performing backups. 

However, during FY 2014, new and continuing general IT control weaknesses were identified that could 

potentially impact CBP’s financial and custodial data. The most significant weaknesses related to controls 

over system functionality, access, segregation of duties, and configuration management. Collectively, the 

general IT control weaknesses limit CBP’s ability to support assertions that critical financial and operational 

data confidentiality, integrity, and availability are maintained. CBP’s current system of record for entries 

imported into the U.S. does not fully support CBP’s custodial revenue and drawback processes. 

Due to the sensitive nature of these issues, we will issue a separate, restricted distribution report that 

discusses the general IT control and functionality deficiencies in greater detail. 

Criteria: 

The criteria will be presented in a separate, restricted distribution report that discusses the general IT control 

and functionality deficiencies in greater detail.

Cause/Effect: 

Funding for IT development and implementation, as well as for IT support staff has been reduced in recent 

years. This has prolonged implementation of systems that would replace or enhance current systems, and 

has had an impact on providing IT support resources. In addition, transition to different system development 

methodologies has led to inconsistent IT control practices and documentation. Further, due to the presence 

of IT control and financial system functionality weaknesses, there is additional pressure on the manual, 

mitigating processes and controls. 

Recommendation: 

We recommend that CBP improve the IT general and application controls over its financial systems to 

ensure adequate security, protection, and functionality of the information systems. 

II. 7
2014 Performance and Accountability Report • U.S. Customs and Border Protection 141

EXHIBIT III

Index of Financial Reporting and Internal Control Criteria 

(Listed Alphabetically by Criteria Source) 

Criteria Reference Report Exhibit 

Title 19, Volume 1, Section 18.2 (d), Section 18.6 

(b), and Section 18.8(b) II-C-1 

Title 19, Volume 1, Section 19.4 (a) and Section 

146.3 (a) II-C-2 

Title 19, Volume 1, Section 111.23 (a)(1)-(2) 

I-A 

Title 19, Volume 1, Section 111.25 

Title 19, Volume 1, Section 113.13 (c) 

Title 19, Volume 1, Section 113.65 (a)(3)-(4),(b) 

2014 Code of Federal Regulations (CFR) Title 19, Volume 2, Section 163.4 (a)-(b) 

Title 19, Volume 2, Section 191.15 

Title 19, Volume 2, Part 191.38 (a) 

Title 19, Volume 2, Section 191.51 (b)(1) 

Title 19, Volume 2, Section 191.92 (d) 

Title 19, Volume 1, Section 113.13 (c) 

Title 19, Volume 1, Section 113.15 II-C-4 

Title 19, Volume 1, Section 113.26 

III. 1
142 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

EXHIBIT III

Criteria Reference Report Exhibit 

CBP Directive 3510-005, Bond Sufficiency Section 2; Section 3 II-C-4 

CBP Directive 3710-004B, Refund of 

Miscellaneous Collections Section 2.2; Section 5.7.1 I-A 

CBP Directive 5320-028D, Commitment, 

Obligation, Expenditure, and Payment 

Procedures for Goods and Services 

Section 7.5.1 II-B 

CBP Directive 5610-004B, Resolving 

Certain ACS Exception and Error Reports 

Section 5.1.2; Section 5.4.2; Section 5.5.2; Section 

5.6.2; Section 5.11.2 II-C-3 

CBP Directive 5610-006A, Entry Deletion 

and Entry or Entry Summary Cancellation Section 6.6.1 II-C-3 

CBP FY 2014 Personal Property Inventory 

Instructions Introduction II-B 

CBP Handbook (HB) 3500-09, Compliance 

Review Handbook for Bonded Warehouses Foreword; Chapter 3 II-C-2 

CBP HB 3500-10, Compliance Review 

Handbook for Foreign Trade Zones Chapter 3 II-C-2 

CBP HB 3500-11, Bonded Warehouse 

Manual for Customs and Border Protection 

Officers and Bonded Warehouse Proprietors 

Part 1.1 II-C-2 

CBP HB 3700-01B, Drawback Handbook Chapter 5 I-A 

CBP HB 5200-13B, Personal Property and

Asset Management Handbook Chapter 8 II-B 

Federal Accounting Standards Advisory 

Board (FASAB) Statement of Federal 

Financial Accounting Standards (SFFAS) 

No. 6, Accounting for Property, Plant, and 

Equipment 

Chapter 2, Paragraphs 26, 34, 38, and 39 II-B 

FASAB SFFAS No. 7, Accounting for 

Revenue and Other Financing Sources Appendix B, Paragraphs 245, 289, 290, and 291 II-C-5 

FASAB Federal Financial Accounting 

Technical Release (TR) No. 14 Paragraph 10 II-B 

III. 2
2014 Performance and Accountability Report • U.S. Customs and Border Protection 143

EXHIBIT III

Criteria Reference Report Exhibit 

The Federal Manager’s Financial Integrity 

Act (FMFIA) of 1982 Section 2 (d)(1)(A) I-A, II-B 

Section I I-A, II-C-3, II-C-4 

Office of Management and Budget (OMB) 

Circular No. A-123, Management’s 

Responsibility for Internal Control 

Policy, paragraph 3; Section I, paragraph 2; Section 

IV, paragraph 1 I-A 

Section II. Standards I-A, II-B, II-C-3 

Purpose, paragraph 1 II-C-5 

U.S. Customs Service HB 2100-05A, 

Records Control Handbook Introduction and Background II-C-4 

United States Standard General Ledger 

(USSGL) 

Account Definitions for SGL 2110, Accounts 

Payable, and SGL 2980, Custodial Liability II-C-5 

III. 3
144 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

OFFICE OF INSPECTOR GENERAL

 Department of Homeland Security 

Appendix A 

Management Comments to the Report 

www.oig.dhs.gov 2 OIG-15-76 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 145

OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Appendix B 

Report Distribution 

Department of Homeland Security 

Secretary 

Deputy Secretary 

Chief of Staff 

Deputy Chief of Staff 

General Counsel 

Director, GAO/OIG Liaison Office 

Assistant Secretary for Office of Policy 

Assistant Secretary for Office of Public Affairs 

Assistant Secretary for Office of Legislative Affairs 

Chief Financial Officer 

Chief Information Officer 

Chief Privacy Officer 

U.S. Customs and Border Protection 

Commissioner 

Chief Financial Officer 

Chief Information Officer 

CBP Audit Liaison 

Office of Management and Budget 

Chief, Homeland Security Branch 

DHS OIG Budget Examiner 

Congress 

Congressional Oversight and Appropriations Committees 

www.oig.dhs.gov OIG-15-76 
146 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

ADDITIONAL INFORMATION AND COPIES 

To view this and any of our other reports, please visit our website at: www.oig.dhs.gov. 

For further information or questions, please contact Office of Inspector General Public Affairs 

at: DHS-OIG.OfficePublicAffairs@oig.dhs.gov. Follow us on Twitter at: @dhsoig. 

OIG HOTLINE 

To report fraud, waste, or abuse, visit our website at www.oig.dhs.gov and click on the red 

"Hotline" tab. If you cannot access our website, call our hotline at (800) 323-8603, fax our 

hotline at (202) 254-4297, or write to us at: 

Department of Homeland Security 

Office of Inspector General, Mail Stop 0305 

Attention: Hotline 

245 Murray Drive, SW 

Washington, DC 20528-0305 
Other Information

This section includes CBP’s Schedule of Spending and information on CBP’s Revenue Gap, Revenue 

Collections, Improper Payments Information, and Summary of Financial Statement Audit Management 

Assurances. This section is unaudited.
148 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Other Information

Customs and Border Protection

Other Information

(Unaudited)

 

Schedule of Spending

For the Years Ended September 30, 2014 and 2013 (in thousands)

 2014 2013

What Money is Available to Spend?

Total Resources $17,253,732 $16,154,816

Less: Amount Available but Not Agreed to be Spent 1,017,432 717,874

Less: Amount Not Available to be Spent 542,461 574,438

Total Amounts Agreed to be Spent $15,693,839 $14,862,504

How was the Money Spent/Issued?

Salaries & Expenses

Personnel Compensation and Benefits $ 8,207,551 $ 8,055,942

Contractual Services and Supplies 1,543,403 1,644,432

Acquisition of Assets 262,140 168,050

Refunds 2,343 2,276

Other 605 468

Automation Modernization

Personnel Compensation and Benefits 153,185 167,843

Contractual Services and Supplies 481,494 379,291

Acquisition of Assets 247,908 224,773

Construction

Personnel Compensation and Benefits 43,558 29,921

Contractual Services and Supplies 371,621 160,387

Acquisition of Assets 61,812 43,256

BSFIT

Personnel Compensation and Benefits -- 1,330

Contractual Services and Supplies 327,933 243,467

Acquisition of Assets 109,164 57,236

Air & Marine

Personnel Compensation and Benefits 274,600 269,675

Contractual Services and Supplies 488,308 479,498

Acquisition of Assets 57,044 76,051

Other 3 --

Other

Personnel Compensation and Benefits 1,259,327 1,136,220

Contractual Services and Supplies 293,423 266,297

Acquisition of Assets 46,546 22,242

Refunds 1,461,871 1,433,849

Total Amounts Agreed to be Spent $15,693,839 $14,862,504
2014 Performance and Accountability Report • U.S. Customs and Border Protection 149

Customs and Border Protection

Other Information

(Unaudited)

Who did the Money go to?

Individuals $ 5,136,965 $ 6,247,205

Government 7,988,337 4,935,832

For Profit 2,535,314 3,636,481

Higher Education 30,880 34,616

 Other 2,343 8,370

Total Amounts Agreed to be Spent $15,693,839 $14,862,504

Who did the Money go to?

 Federal $ 5,373,992 $ 4,947,085

 Non-Federal 10,319,847 9,915,419

Total Amounts Agreed to be Spent $15,693,839 $14,862,504

Much of what is reported on this schedule, primarily personnel expenses and payments to other federal agencies, is 

excluded from the USASpending.gov reporting. USASpending.gov reports primarily payments made on commercial 

contracts. CBP’s financial reporting is within five percent of the spending reported on the USASpending.gov website.

Revenue Gap

The Entry Summary of Trade Compliance Measurement (TCM) program collects objective statistical data to estimate

the compliance level of commercial imports with U.S. trade laws, regulations and agreements, and is used to produce 

a dollar amount for Estimated Net Under-collections, and a percent of Revenue Gap. The Revenue Gap is a 

calculated estimate that measures potential loss of revenue owing to noncompliance with trade laws, regulations, and 

trade agreements using a statistically valid sample of the revenue losses and overpayments detected during TCM 

entry summary reviews conducted throughout the year. 

FY 2014 (Preliminary) FY 2013 (Final)

Estimated Revenue Gap $192.5 mil $627.9 mil

Estimated Revenue Gap of all 

collectable revenue for year (%) 0.44% 1.51%

Estimated Over-Collection $24.6 mil $108.8 mil

Estimated Under-Collection $217.2 mil $736.7 mil

Estimated Overall Trade 

Compliance Rate (%) 98.0% 97.1%

The preliminary overall compliance rate for FY 2014 is 98.0 percent. The final overall trade compliance rate and 

estimated revenue gap for FY 2014 will be issued in February 2015.
150 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

Petitioned and Protested Schedule

An analysis of the changes in petitioned and protested assessed amounts during FY 2014 and 2013 is as follows (in 

thousands):

2014

Balance

October 1

Additional

Assessments

Protest in Favor 

of Debtor

Net Reduction 

Administrative 

Process

Additional 

Receivable

Balance

September 30

Duties $ 392,218 $ 70,348 $ (3,825) $ (109,300) $ -- $ 349,441

Taxes 1,367 (307) -- (398) -- 662

Fees 1,366 1,193 (75) (1,547) -- 937

Fines/Penalties 1,342,238 1,057,997 (268,519) (23) (405,269) 1,726,424

Interest 200,275 34,228 (1,024) (21,281) -- 212,198

Antidumping/

Countervailing Duty 313,117 250,642 (3,166) (73,614) -- 486,979

Refunds & Drawbacks 8,728 1,982 (1,255) (3,724) -- 5,731

Total $2,259,309 $1,416,083 $(277,864) $(209,887) $(405,269) $2,782,372

2013

Balance

October 1

Additional

Assessments

Protest in 

Favor of Debtor

Net Reduction 

Administrative 

Process

Additional 

Receivable

Balance

September 30

Duties $ 319,525 $253,822 $ (7,092) $(174,037) $ -- $ 392,218

Taxes 313 1,862 (8) (800) -- 1,367

Fees 8,287 3,339 (71) (10,189) -- 1,366

Fines/Penalties 1,926,647 454,961 (776,023) (122) (263,225) 1,342,238

Interest 172,404 51,436 (3,389) (20,176) -- 200,275

Antidumping/

Countervailing Duty 204,116 173,784 (4,595) (60,188) -- 313,117

Refunds & Drawbacks 4,626 10,692 (1,027) (5,563) -- 8,728

Total $2,635,918 $949,896 $(792,205) $(271,075) $(263,225) $2,259,309
2014 Performance and Accountability Report • U.S. Customs and Border Protection 151

Customs and Border Protection

Other Information

(Unaudited)

CBP reviews selected entry documentation to determine whether importer payment estimates of duties, taxes and fees 

were accurate or whether additional supplemental amounts are owed and should be billed. CBP regulations allow the 

importer 180 days (or 90 days for entries before December 18, 2004) from the bill date to file a protest and application 

with the Port Director challenging the assessment of supplemental duties, taxes and fees and requesting further review 

of the protest by CBP Office of Regulations and Rulings. If the Port Director denies the protest and application for 

further review, the protestor has an additional 60 days from the denial date for a review of the application by the 

Commissioner of CBP. Consequently, CBP recognizes accounts receivables only when the protested period has 

elapsed or when a protest decision has been rendered in CBP’s favor.

Additionally, importers and their sureties also have the option to petition for relief after receipt of CBP’s notice that a 

fine or penalty has been assessed when a violation of law or regulation is discovered. The importer or surety has 60 

days to file a petition for relief or make payment of the assessed amount. If a petition is received and CBP finds there 

are extenuating circumstances such as an incorrect assessment, which warrants mitigation, relief is granted as 

prescribed by CBP’s mitigation guidelines and directives. Consequently, CBP recognizes accounts receivables only 

when the petition period has elapsed or when a petition decision has been rendered.

Accounts Receivable with Public, Net

An aging of Accounts Receivable with the Public as of September 30, 2014 and 2013 is as follows (in thousands):

Aged Period

2014 <=90 days 91 days–1 year 1-2 years 2-3 years 3+ years Total

Reimbursable Services $ 2,849 $4,688 $ 566 $ 405 $ 918 $ 9,426

User Fees 384,090 1,618 1,780 415 9,947 397,850

Gross Receivables $386,939 $6,306 $2,346 $ 820 $ 10,865 $407,276

Less: Uncollectible

 Amounts -- (279) (1,722) (412) (9,923) (12,336)

Net Receivables $386,939 $6,027 $ 624 $ 408 $ 942 $394,940

Aged Period

2013 <=90 days 91 days–1 year 1-2 years 2-3 years 3+ years Total

Reimbursable Services $ 2,639 $1,716 $ 775 $ 399 $ 1,013 $ 6,542

User Fees 355,617 3,144 686 106 9,578 369,131

Gross Receivables $358,256 $4,860 $1,461 $ 505 $ 10,591 $375,673

Less: Uncollectible

 Amounts 1,863 36

 

685

 

104

 

9,541

 

12,229

Net Receivables $356,393 $4,824 $ 776 $ 401 $ 1,050 $363,444
152 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

Taxes, Duties and Trade Receivables, Net

An analysis of the changes in Taxes, Duties, and Trade Receivables during FY 2014 and 2013 is as follows (in thousands):

2014

Receivable Category

Balance 

October 1

Receivables 

Recorded 

During the 

Fiscal Year Collections Write-offs Adjustments

Balance 

September 30

Duties $2,474,559 $29,275,312 $(17,575,331) $ (532) $(11,423,788) $2,750,220

Excise Taxes 149,281 2,762,032 (1,609,096) -- (1,134,016) 168,201

Fees 68,224 3,187,170 (1,923,130) -- (1,260,402) 71,862

Fines/Penalties 458,174 861,885 (52,975) (42,296) (715,241) 509,547

Interest 566,208 130,728 (12,737) (8) (15,666) 668,525

Antidumping/ 

 Countervailing Duty 1,232,570 733,430 (314,985) -- (244,521) 1,406,494

Refunds/Drawbacks 3,032 4,516 (3,021) -- (2,153) 2,374

Total $4,952,048 $36,955,073 $(21,491,275) $(42,836) $(14,795,787) $5,577,223

Less: Uncollectible 

 Amounts 2,270,041 2,527,833

Net Receivables $2,682,007 $3,049,390

2013

Receivable Category

Balance 

October 1

Receivables 

Recorded 

During the 

Fiscal Year Collections Write-offs Adjustments

Balance 

September 30

Duties $2,284,738 $27,522,198 $(16,823,348) $ (20,727) $(10,488,302) $2,474,559 

Excise Taxes 142,685 2,505,738 (764,567) -- (1,734,575) 149,281 

Fees 197,613 2,978,414 (1,850,234) -- (1,257,569) 68,224

Fines/Penalties 445,238 603,051 (57,740) (93,643) (438,732) 458,174 

Interest 541,130 81,298 (10,987) (71,917) 26,684 566,208 

Antidumping/ 

 Countervailing Duty 1,169,953 130,578 (30,989) (101,531) 64,559 1,232,570

Refunds/Drawbacks 1,461 5,705 (868) -- (3,266) 3,032

Total $4,782,818 $33,826,982 $(19,538,733) $(287,818) $(13,831,201) $4,952,048

Less: Uncollectible 

 Amounts 2,082,353 2,270,041

Net Receivables $2,700,465 $2,682,007

The beginning and ending balances for the “Antidumping/Countervailing Duty” Receivable Category represent only 

receivables resulting from Supplemental Duty Bills. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 153

Customs and Border Protection

Other Information

(Unaudited)

An aging of Taxes, Duties, and Trade Receivables as of September 30, 2014 and 2013 is as follows (in thousands):

Aged Period

2014 <=90 days 91 days–1 year 1-2 years 2-3 years 3+ years Total

Duties $2,581,828 $ 12,581 $ 30,769 $ 10,402 $ 114,640 $2,750,220

Excise Taxes 157,957 409 618 233 8,984 168,201

User Fees 71,307 21 27 138 369 71,862

Fines/Penalties 55,351 105,800 97,212 52,009 199,175 509,547

Interest 11 12,094 37,367 43,435 575,618 668,525

Antidumping/ 

 Countervailing Duty 1,178 71,335 206,861 204,647 922,473 1,406,494

Refunds and Drawbacks -- 2 137 -- 2,235 2,374

Gross Receivables $2,867,632 $202,242 $372,991 $310,864 $1,823,494 $5,577,223

Less: Uncollectible 

 Amounts 51,923 176,534 325,846 279,025 1,694,505 2,527,833

Net Receivables $2,815,709 $ 25,708 $ 47,145 $ 31,839 $ 128,989 $3,049,390

Aged Period

2013 <=90 days 91 days–1 year 1-2 years 2-3 years 3+ years Total

Duties $2,317,496 $ 28,703 $ 15,877 $ 6,699 $ 105,784 $2,474,559

Excise Taxes 140,021 234 83 16 8,927 149,281 

User Fees 67,626 17 7 54 520 68,224 

Fines/Penalties 91,022 97,066 81,483 50,834 137,769 458,174 

Interest 134 8,060 41,331 62,899 453,784 566,208 

Antidumping/ 

 Countervailing Duty 110 66,466 231,568 210,231 724,195 1,232,570 

Refunds and Drawbacks 2,161 106 -- 78 687 3,032

Gross Receivables $2,618,570 $200,652 $370,349 $330,811 $1,431,666 $4,952,048 

Less: Uncollectible 

 Amounts 84,857 180,813 348,866 317,595 1,337,910 2,270,041

Net Receivables $2,533,713 $ 19,839 $ 21,483 $ 13,216 $ 93,756 $2,682,007
154 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

CBP Collections by Category

(in thousands)

2010 2011 2012 2013 2014

Duties (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Consumption Entries $25,312,699 $29,522,341 $30,860,080 $32,246,586 $34,267,273

Warehouse Withdrawals 54,214 41,907 38,676 58,065 46,462

Mail Entries 3,354 3,159 2,028 2,721 3,067

Passenger Baggage Entries 3,616 3,652 4,085 4,738 4,938

Crew Baggage Entries 9 6 5 60 11

Military Baggage Entries 2 3 5 2 2

Informal Entries 56,200 63,689 65,543 138,076 216,293

Vessel Repair Entries 21,521 30,381 16,710 11,613 29,123

Other Duties 9,747 8,359 18,868 24,904 32,927

Total Duties $25,461,362 $29,673,497 $31,006,000 $32,486,765 $34,600,096

Miscellaneous

Violations of CBP Law 60,380 61,532 52,451 51,846 47,068

Testing, Inspecting & Grading 58 64 4,157 3,394 1,270

Miscellaneous Taxes 20,382 21,845 21,745 21,752 22,270

USDA Collections 120,637 120,704 131,680 146,016 151,595

Harbor Maintenance Fee 1,221,712 1,469,109 1,539,799 1,523,171 1,510,343

Fees 7,817 5,904 7,392 8,730 8,277

User Fee Account 2,440,275 2,779,483 3,439,523 3,680,658 3,853,530

Unclaimed Funds 188 164 469 240 256

Recoveries -- -- -- 3 1

Interest 13,555 35,577 40,173 1,050 37,891

Other CBP Receipts 15,329 13,838 22,412 22,142 56,275

Total Miscellaneous $ 3,900,333 $ 4,508,220 $ 5,259,801 $ 5,459,002 $5,688,776

Internal Revenue Taxes 2,782,240 2,796,788 2,995,140 3,039,640 3,143,782

Total Collections $32,143,935 $36,978,505 $39,260,941 $40,985,407 $43,432,654

These schedules will not equal amounts reported on the Consolidated Statement of Custodial Activity due to timing

adjustments and entity collections which are not reported on the Consolidated Statement of Custodial Activity but are 

included in this schedule. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 155

Customs and Border Protection

Other Information

(Unaudited)

CBP Collections by Major Processing Port Locations

(in thousands)

2010 2011 2012 2013 2014

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Boston $ 352,710 $ 345,490 $ 363,497 $ 364,986 $ 368,708

Buffalo-Niagara Falls 342,659 294,659 317,012 322,727 329,602

Ogdensburg 132,890 132,567 147,013 143,957 148,037

Portland, Maine 54,993 60,124 62,517 55,223 59,328

Providence 82,532 112,008 126,627 146,914 147,430

St. Albans 46,778 46,145 50,206 51,063 55,956

Baltimore 615,025 629,569 654,950 701,463 797,220

Philadelphia 422,253 448,508 461,559 511,088 529,195

Newark 4,347,759 5,025,814 5,219,277 5,113,482 5,452,541

JFK Airport 961,149 1,017,668 981,040 1,056,601 1,096,558

Charleston 858,098 1,043,719 1,184,188 1,123,350 1,183,438

Miami 600,506 771,770 803,266 836,692 916,642

San Juan 101,368 117,235 125,899 279,092 198,743

St. Thomas 16,720 14,948 12,550 12,110 12,007

Savannah 1,643,027 1,985,424 2,047,913 2,073,771 2,548,813

Tampa 425,038 447,629 492,541 488,510 474,920

Wilmington 294,996 304,612 266,326 280,096 277,479

Norfolk 604,357 704,551 736,196 808,177 913,193

NFC Indianapolis/Washington 1,418,106 1,650,976 1,870,288 2,328,877 2,347,853

Mobile 168,661 180,997 185,049 204,101 184,221

New Orleans 1,011,820 1,232,590 1,303,706 1,351,597 1,536,368

Dallas/Ft Worth 428,898 527,570 574,583 625,293 667,102

El Paso 139,378 144,829 152,491 200,830 217,850

Houston 735,314 919,704 1,116,282 1,121,159 1,312,861

Laredo 424,299 583,472 656,435 674,221 779,703

Port Arthur 28,584 30,079 20,869 17,125 19,053

Nogales 84,353 96,259 94,566 110,129 131,433

Los Angeles 8,565,244 9,715,689 10,268,894 10,858,809 11,039,327

San Diego 216,275 221,490 252,688 268,872 320,284

Anchorage 124,792 134,253 118,389 94,208 80,073

Honolulu 32,816 36,089 37,192 36,037 35,748

Portland 303,922 312,337 365,043 338,674 340,501

San Francisco 1,115,329 1,301,094 1,405,650 1,449,926 1,506,267

Seattle 1,145,325 1,307,307 1,354,234 1,300,806 1,261,971

Chicago 1,602,089 1,916,811 2,009,737 2,013,849 2,169,167

Cleveland 1,490,599 1,710,571 1,810,848 1,938,792 2,150,736

Detroit 528,280 625,148 677,489 696,579 749,017

Milwaukee 24,786 23,183 31,130 23,548 38,893

Minneapolis 187,866 244,880 265,195 262,182 262,412

Pembina 23,483 25,078 31,373 36,254 44,855

St. Louis 304,941 364,369 426,942 486,737 540,986

Great Falls 135,917 171,290 179,291 177,500 186,163

Total Revenues Collected $32,143,935 $36,978,505 $39,260,941 $40,985,407 $43,432,654

These schedules will not equal amounts reported on the Consolidated Statements of Custodial Activity due to timing 

adjustments and entity collections which are not reported on the Consolidated Statements of Custodial Activity but are 

included in these schedules.
156 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

Summary of Financial Statement Audit and Management Assurances

Table 1 and Table 2 below provide a summary of the financial statement audit results and management assurances for 

FY 2014.

Table 1. FY 2014 Summary of the Financial Statement Audit

Audit Opinion UNMODIFIED

Restatement No

Material Weakness Beginning 

Balance New Resolved Consolidated Ending Balance

Drawback Payments 1 0 0 0 1

Total Material Weaknesses 1 0 0 0 1

In FY 2014, the Independent Auditor’s Report continues to identify one long-standing material weakness associated with 

Drawback Payments. Drawback is a remittance, in whole or in part, of duties, taxes, or fees previously paid by an 

importer. Drawback occurs when the imported goods on which duties, taxes, or fees have been previously paid, are 

subsequently exported from the United States or destroyed prior to entering the commerce of the United States. 

Corrective actions to reduce the severity and ultimately resolve the material weakness will require a combination of 

legislative activity, an information technology systems solution, and compensating manual procedures. CBP’s 

remediation strategy includes actions addressing each of these three components. 

Table 2. FY 2014 Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance QUALIFIED

Material Weakness Beginning 

Balance New Resolved Consolidated Ending Balance

Drawback Payments 1 0 0 0 1

Total Material Weakness 1 0 0 0 1

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance UNQUALIFIED

Material Weakness Beginning 

Balance New Resolved Consolidated Ending Balance

None 0 0 0 0 0

Total Material Weakness 0 0 0 0 0

Conformance with Financial Management Systems Requirements (FMFIA § 4)

Statement of Assurance SYSTEMS DO NOT CONFORM WITH FINANCIAL SYSTEMS 

REQUIREMENTS

Non-Conformances Beginning 

Balance New Resolved Consolidated Ending Balance

Core Financial Systems 1 0 0 0 1

IT General Controls 1 0 0 0 1

IT Infrastructure 1 0 0 0 1

Total Non-Conformances 3 0 0 0 3

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA)

CBP Auditor

1.System Requirements Lack of substantial 

compliance noted

Lack of substantial compliance 

noted

2.Accounting Standards No lack of substantial 

compliance noted

No lack of substantial 

compliance noted

3. United States Standard General Ledger 

(USSGL) at Transaction Level

Lack of substantial 

compliance noted

Lack of substantial compliance 

noted
2014 Performance and Accountability Report • U.S. Customs and Border Protection 157

Customs and Border Protection

Other Information

(Unaudited)

The Federal Financial Management Improvement Act (FFMIA) non-compliance conditions consist of the following: 

 System Requirements – the conditions noted predominantly relate to access control and security management 

conditions associated with separating employees. CBP is addressing the conditions by developing a technical 

solution that will provide an efficient and effective process for removing employee system access.

 USSGL at Transaction Level – CBP’s Automated Commercial System (ACS) does not interface trade-related 

receivable activity with the CBP general ledger accounting system, SAP, at the transaction level. The condition 

will be included in the planning and development of an initiative to migrate ACS from its current mainframe 

platform to a web-based platform as part of the Revenue Modernization Program. 

Improper Payments Information Act of 2002 (IPIA)

The Improper Payments Information Act (IPIA) of 2002 was amended by the Improper Payments Elimination and 

Recovery Act (IPERA) of 2010 and the Improper Payments Elimination and Recovery Improvement Act of 2012 (IPERIA).

CBP identified and performed a risk assessment on all ten programs, two of which, Custodial Refund and Drawback and 

Salaries and Expense Payroll-Administrative Uncontrollable Overtime (AUO), were identified as high risk. Federal law 

requires Hurricane Sandy Supplemental spending to be considered high risk as defined by IPERIA. Thus all Hurricane 

Sandy Supplemental funds must be tested. 

Congress requires funds allocated to agencies under the American Recovery and Reinvestment Act (ARRA) of 2009 be 

tested regardless of risk assessment outcome. Per OMB guidance, if an agency, “has documented a minimum of two 

consecutive years of improper payments that are less than” 1.5 percent, “the agency may request relief from the annual 

reporting requirements for this program or activity.” CBP’s total extrapolated error rate was less than 0.1 percent for the 

past two years. The DHS Chief Financial Officer (CFO) signed a memorandum dated April 11, 2013 approving cessation 

of segregated testing for future ARRA disbursements due to the consistent low error rate. 

Border Security Fencing (BSF) was deemed low risk according to the FY 2013 risk assessment. However, CBP received 

stimulus money for BSF projects under ARRA, which requires funds allocated to be tested regardless of the risk 

assessment outcome. Per OMB guidance, if an agency, “has documented a minimum of two consecutive years of 

improper payments that are less than” 1.5 percent, “the agency may request relief from the annual reporting requirements 

for this program or activity” and includes an assertion from the agency’s Office of Inspector General (OIG) that concurs 

with the agency’s request for relief. CBP’s total extrapolated error rate was less than 0.01 percent for the past two years. 

CBP submitted a request in May 2014, which included the DHS Inspector General’s concurrence, to obtain OMB’s 

approval to seek relief from continued annual IPERIA testing for BSF. Relief from testing was granted by OMB on July 23, 

2014. 

The Custodial Refund and Drawback payment testing yielded an estimated improper payment amount of $179 thousand

of the $1.5 billion, or 0.01 percent, disbursed during FY 2013. Salaries and Expense Payroll-AUO payment testing yielded 

no improper payment of the $393 million testing population, or .00 percent, disbursed during FY 2013. One hundred percent

of Hurricane Sandy disbursements for supplies, equipment and other services were required to be tested. CBP did not 

identify any improper payments for FY 2013. 
158 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

Overpayments Recaptured Outside of Payment Recapture Audits

Agency 

Source

Amount 

Identified CY

Amount 

Recovered CY

Amount 

Identified PY

Amount 

Recovered PY

Cumulative Amount 

Identified (CY+PYs)

Cumulative Amount 

Recovered (CY+PYs)

IPIA 

Sampling -- -- -- -- -- --

SelfReporting $ 65,958 $ 65,958 $ 879,802 $ 879,802 $ 945,760 $ 945,760

Public 

Reporting $428,572 $426,834 $1,492,954

 

 $1,492,954 **$1,895,692 **$ 1,893,954

**Over-reported Public Reporting by $25,835 in FY 2011 - adjusted Cumulative Amount Identified and Recovered amount (CY +PYs)

Disposition of Recaptured Funds

Program or 

Activity

Type of 

Payment 

(contract, 

grant, benefit, 

loan other)

Agency 

Expenses to 

Administer 

the Program

Payment 

Recapture 

Auditor Fees

Financial 

Management 

Improvement 

Activities

Original 

Purpose

Office of 

Inspector 

General

Returned to

Treasury

CBP Mission Contract -- $819 -- $2,457 -- --

Payment Recapture Audit Targets

Program or 

Activity

Type of 

Payment 

(contract, 

grant, benefit, 

loan other)

CY Amount 

Identified

CY Amount 

Recovered

CY Recovery 

Rate (Amount 

Recovered / 

Amount 

Identified)

CY + 1 

Recovery 

Rate Target

CY + 2 

Recovery 

Rate Target

CY + 3 

Recovery 

Rate Target

CBP Mission Contract $3,276 $3,276 100% 100% 100% 100%

Aging of Outstanding Overpayments

Program or Activity Type of Payment 

(contract, grant, benefit, 

loan other)

CY Amount Outstanding 

(0 – 6 months)

CY Amount Outstanding 

(6 months to 1 year)

CY Amount Outstanding 

(over 1 year)

CBP Mission Contract $1,738 -- --

CBP also identified amounts for recovery during the Improper Payment Information Act (IPIA) review of FY 2013

disbursements. The IPIA results are as follows (dollars in thousands): 

Amounts Identified as 

Improper Payments

Amounts Identified for 

Recovery

Amounts Recovered

Custodial Refund and 

Drawback (R & D) $.11 -- --

Border Security Fencing

( BSF) Waived -- --

Administrative Uncontrollable 

Overtime (AUO) -- -- --

Hurricane Sandy Disaster 

Relief Funds (HSDR) -- -- --

Total $.01 -- --
2014 Performance and Accountability Report • U.S. Customs and Border Protection 159

Customs and Border Protection

Other Information

(Unaudited)

Recoveries for Custodial Refund and Drawback payments are restricted by regulations governing collections of duty, taxes, and

fees associated with trade-related activity. OMB granted relief from testing BSF on July 23, 2014 due to three years of improper 

payment testing yielding low error rates and proving effectiveness of payment internal controls. 

Improper Payment Reduction Outlook ($ in millions)

Source of Recovery Amount Identified 

(CY) ($000)

Amount 

Recovered (CY) 

($000)

Amount Identified 

(PY) ($000)

Amount 

Recovered (PY) 

($000)

Cumulative 

Amount Identified 

(CY+PYs) ($000)

Cumulative Amount 

Recovered 

(CY+PYs) ($000)

High-Dollar 

Overpayments 

Reporting

$ .5 $ .5 $2.4 $2.4 $2.8 $2.8

IPIA High-Risk 

Program Testing -- -- -- -- -- --

Post Payment

Reviews -- -- $0.3 $0.3 $0.4 $0.4

CBP Totals $ .5 $ .5 $2.7 $2.7 $3.2 $3.2

Payment Recapture Audit Reporting

CBP contracted the audit recovery work for disbursements made during FY 2013. The results of the recovery audit efforts continue to 

identify negligible recovery amounts. The recovery audit results are reported below:

Program

or

Activity

Type of 

Payment 

(contract, 

grant, 

benefit, 

loan, or 

other)

Amount 

Subject to 

Review for

CY Reporting

Actual Amount 

Reviewed

and

Reported

CY

Amounts 

Identified 

for 

Recovery 

CY

Amounts 

Recovered 

CY

% of Amount 

Recovered 

out of 

Amount 

Identified CY

Amount 

Outstanding 

CY

% of 

Amount 

Outstanding 

out of 

Amount 

Identified 

CY

Amount 

Determined 

Not to be 

Collectable 

CY

CBP 

Mission Contract $1,909 $1,909 $3,276 $3,276 100% -- 0% --

Program

or

Activity

Type of 

Payment 

(contract, 

grant, 

benefit, 

loan, or 

other)

% of Amount 

Determined 

Not to be 

Collectable 

out of Amount 

Identified CY

Amounts 

Identified for 

Recovery PY

Amounts 

Recovered 

PY

Cumulative 

Amounts 

Identified 

for 

Recovery 

(CY+PY)

Cumulative 

Amounts 

Recovered 

(CY+PY)

Cumulative 

Amounts 

Outstanding 

(CY+PY)

Cumulative 

Amounts 

Determined 

Not to be 

Collectable 

(CY+PY)

CBP 

Mission Contract 0% $359,018 $359,018 $362,294 $362,294 -- --

 
160 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Customs and Border Protection

Other Information

(Unaudited)

Improper Payment Reduction Outlook

(in millions) 2012 2012 2012 2013 2013 2013 2013 2013 2014

Program PY 

Outlays PY % PY $ CY Outlays CY IP % CY IP $ CY Overpayment $

CY Underpayment $

CY + 1 

est. 

Outlays

Refunds & 

Drawbacks $1,937 .36% $7 $1,473 .01% $.18 -- -- $1,338

Border 

Security 

Fencing

$ 173 <.01% -- Waived 0% -- -- -- $ 157

Administrative 

Uncontrollable 

Overtime 

(AUO)

-- 0% -- $ 393 0% -- -- -- $ 393

Hurricane 

Sandy 

Disaster 

Relief Funds 

(HSDR)

-- 0% -- $ .28 0% -- -- -- N/A

(in millions) 2015 2015 2016 2016 2016 2017 2017 2017

Program CY + 1 

IP %

CY + 1 IP 

$

CY + 2 

est. 

Outlays

CY + 2 

IP %

CY + 2 IP 

$

CY + 3 

est. 

Outlays

CY + 3 IP 

%

CY + 3 IP 

$

Refunds & 

Drawbacks .01% $.12 $1,338 .01% $.12 $1,338 .01% $.12

Border 

Security 

Fencing

0% -- $ 213 0% -- $ 213 0% $0

Administrative 

Uncontrollable 

Overtime 

(AUO)

0% -- $ 393 0% -- $ 393 0% 0%

Hurricane 

Sandy 

Disaster 

Relief Funds 

(HSDR)

0% -- N/A 0% -- N/A 0% 0%

The forecast of activity related to Refunds and Drawbacks depends on indeterminable factors including the volume of trade activity and 

various trade related issues addressed and ruled on by the Department of Commerce. 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 161

Customs and Border Protection

Other Information

(Unaudited)

Freeze the Footprint

In May 2012 OMB issued Memorandum-12-12, Promoting Efficient Spending to Support Agency Operations, in response 

to Executive Order 13589, “Promoting Efficient Spending”. In that Executive Order, signed by the President on November 

9, 2011, the President directed each agency to reduce its combined costs in a variety of administrative categories from FY 

2010 levels. Memorandum-12-12 addressed several of these categories, and included Section 3, Real Property, which 

states that agencies generally shall not increase the size of their domestic real estate inventory. Memorandum No. 2013-

02, Implementation of OMB Memorandum M-12-12 Section 3: Freeze the Footprint, clarified the “Freeze the Footprint” 

policy by stating that an agency’s total square footage for office and warehouse space shall remain at its FY 2012 

baseline level. 

CBP, through its annual capital facilities investment plans and rent requirements control board, has put steps in place to 

reduce its office and warehouse footprint where it is controllable. Mobile Work Phases I and II have been successfully 

implemented in the National Capital Region and Phase III is being kicked off in Indianapolis. Through consolidation, colocation, and mobile work initiatives, CBP will continue to decrease nonoperational type office and warehouse space by 

8.9 percent by FY 2020.

Freeze the Footprint Baseline Comparison

Square Footage 

(SF in millions)

FY 2012 Baseline FY 2013 Actual Decrease

11,762 11,289 (473)

Operation and Maintenance Costs – Owned and Direct Lease Buildings

Operation and 

Maintenance Costs

($ in millions)

FY 2012 Actual Costs FY 2013 Actual Costs Decrease

$3,776 $3,722 $(54)
162 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

Office of Inspector General (OIG) Report on Major

Management Challenges

The DHS OIG’s report on Major Management and Performance Challenges Facing the Department of 

Homeland Security, OIG-15-09, dated November 14, 2014, and the agency’s progress addressing these 

challenges are addressed at the DHS consolidated level and are incorporated into the DHS Fiscal Year 2014 

Agency Financial Report.
2014 Performance and Accountability Report • U.S. Customs and Border Protection 163

Acronyms

Acronym Definition

ACE Automated Commercial Environment

ACS Automated Commercial System

ACTT Alliance to Combat Transnational Threats

ADIS Arrival and Departure Information System

AEO Authorized Economic Operator

AES Automated Export System

AFI Analytical Framework for Intelligence 

ALM Active Lane Management

AIS Automatic Identification System

AMOC Air Marine Operations Center

APC Automated Passport Control

APHIS Animal and Plant Health Inspection Service

APIS Advance Passenger Information System

ARO Admissibility Review Office

ATS Automated Targeting System

ATS-AT Automated Targeting System-Anti-Terrorism

ATS-L Automated Targeting System-Land

ATS-N Automated Targeting System- Inbound

ATS-P Automated Targeting System- Passenger

BORTAC Border Patrol Tactical Unit

BSDP Border Security Deployment Program

BSFIT Border Security Fencing Infrastructure and Technology

C3 California Corridor Campaign

C3E CBP Cloud Computing Environment 

CBP Customs and Border Protection

CBSA Canadian Border Services Agency

CCD Coherent Change Detection

CCUC California Corridor Unified Command 

CDS Consequence Delivery System

CEE Centers of Excellence and Expertise

CFO Chief Financial Officer

CIO Chief Information Officer

CIV Coastal Interceptor Vessels

CMAA Customs Mutual Assistance Agreement

COBRA Consolidated Omnibus Budget Reconciliation

COS Chief of Staff

COSS Customs Overtime Scheduling System

CPSC Consumer Product Safety Commission
164 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

CSA Canada Self-Assessment

CSI Container Security Initiative

CTAC Commercial Targeting and Analysis Center

C-TPAT Customs Trade Partnership Against Terrorism

DEA Drug Enforcement Administration

DHS Department of Homeland Security

DIS Digital Imaging System

DoD Department of Defense

DOJ Department of Justice

ELMO Enforcement Link Mobile Operations

EPA Environmental Protection Agency

ERO Enforcement and Removal Operations 

ERP Enterprise Resource Planning

ESTA Electronic System for Travel Authorization

EXT Entry/Exit Transformation Program

FAA Federal Aviation Administration

FASAB Federal Accounting Standards Advisory Board

FAST Free and Secure Trade

FBI Federal Bureau of Investigation

FDA Food and Drug Administration

FDAU Fraudulent Document Analysis Unit

FEA Federal Electronic Assets

FECA Federal Employees’ Compensation Act

FEMA Federal Emergency Management Agency

FERS Federal Employees’ Retirement System

FFMIA Federal Financial Management Improvement Act

FISMA Federal Information Security Management Act of 2002

FLIR Forward Looking Infrared Radiometer

FM&E Facilities Management and Engineering Directorate 

FMFIA Federal Managers’ Financial Integrity Act

FOUO For Official Use Only

FSIS Food Safety Inspection Service

FSU Field Support Unit

FTZ Foreign Trade Zone

FY Fiscal Year

FYHSP Future Year Homeland Security Program

GAAP Generally Accepted Accounting Principles

GAO Government Accountability Office 

GMTI Ground Moving Target Indicator 
2014 Performance and Accountability Report • U.S. Customs and Border Protection 165

GOES Global Online Enrollment System

GPRA Government Performance and Program Results Act 

GPRMA Government Performance and Results Modernization Act 

GSA General Services Administration

HRBE Human Resources Business Engine

HRM Human Resources Management

HSI Homeland Security Investigations

HtW Home-to-Work

IA Internal Affairs

IAP Immigration Advisory Program

IBET Integrated Border Enforcement Teams

ICE Immigration and Customs Enforcement

ICS International Container Security

IER Interdiction Effectiveness Rate

ILU International Liaison Unit

INA Immigration and Nationality Act

INTERPOL International Criminal Police Organization

IPR Intellectual Property Rights

ISA Importer Self-Assessment

IT Information Technology

ITDS International Trade Data System

IUF Immigration User Fees

IUFA Immigration User Fees Accounts

IWS Interoperability Web Service

JFC Joint Field Command

JOD Office of Joint Operations Directorate

JSP Joint Security Program

LED Light-Emitting Diode

LPO Local Property Officer

LSS Laboratories and Scientific Services

MID Management Inspection Division

NAAP National Audit Plan

NARP National Agriculture Release Program

NEXUS Northern Exchange with United States 

NHTSA National Highway Traffic Safety Administration

NII Non-Intrusive Inspection

NTC-C National Targeting Center-Cargo

NTC-P National Targeting Center-Passenger

OA Office of Administration
166 U.S. Customs and Border Protection • 2014 Performance and Accountability Report

OAM Office of Air and Marine

OBP Office of Border Patrol

OCA Office of Congressional Affairs

OCC Office of Chief Counsel

OES Office of Executive Secretariat

OFO Office of Field Operations

OGA Other Government Agencies

OIG Office of Inspector General

OIIL Office of Intelligence and Investigative Liaison

OIP Operational Implementation Plan

OIT Office of Information and Technology

OMB Office of Management and Budget

OPA Office of Public Affairs

OPD Office of Program Development

OPM Office of Personnel Management

OPP Office of Policy and Planning

OSI Office of Strategic Integration

OT Office of International Trade

OTIA Office of Technology Innovation and Acquisition

OTD Office of Training and Development

OTR Office of Trade Relations

PAR Performance and Accountability Report

PDO Privacy and Diversity Office

PMF Performance Management Framework

POE Port of Entry

PPBA Planning, Programming, Budgeting, and Accounting

PPMOB Personal Property Management Oversight Board

QHSR Quadrennial Homeland Security Review

RA Regulatory Audit

ReCoM Regional Coordinating Mechanism

RFID Radio Frequency Identification

RTU Rail Targeting Unit

SAFE Security and Accountability For Every

SAP Systems, Applications, and Products

SAR Synthetic Aperture Radar

SBREFA Small Business Regulatory Enforcement Fairness Act

SE Simplified Entry

SENTRI Secure Electronic Network for Traveler Rapid Inspection

SFFAS Statement of Federal Financial Accounting Standards
2014 Performance and Accountability Report • U.S. Customs and Border Protection 167

SIP Self-Inspection Program

SLEP Service Life Extension Program

SLT Office of State, Local, and Tribal Liaison

SLTD Stolen Lost Travel Documents 

SOP Standard Operating Procedures

STC South Texas Campaign

T3U Tactical Trade Targeting Unit

TACCOM Tactical Communication Modernization Program

TCO Transnational Criminal Organization

TOMIS Tasking, Operations, and Management Information System

TSA Transportation Security Agency

TTC Tactical/Technical Command

UAS Unmanned Aircraft System

UGS Unattended Ground Sensor

UPAX Unified Passenger

U.S. United States

USCIS United States Citizenship and Immigration Services

US-VISIT U.S. Visitor and Immigration Status Indicator Technology

VADER Vehicle and Dismounted Exploitation Radar

VWP Visa Waiver Program

WSM Workload Staffing Model
Office of Administration

1331 Pennsylvania Avenue

Room 950, National Place

Washington, DC 20229

Please visit the U.S. Customs and Border Protection website at 

www.cbp.gov

To report suspicious activity, call

1-800-BE ALERT