SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION 

2530 Crystal Drive • Arlington, Virginia 22202 

October 27, 2011 

LETTER FOR U.S. SECRETARY OF STATE 

ASSISTANT SECRETARY OF STATE, BUREAU OF INTERNATIONAL 

NARCOTICS AND LAW ENFORCEMENT AFFAIRS 

SUBJECT: Status of International Narcotics Control and Law Enforcement Funds Allocated 

for Iraq Reconstruction (SIGIR 12-003) 

Public Law 108-106, as amended, requires that the Special Inspector General for Iraq 

Reconstruction (SIGIR) report on the oversight and accounting of funds obligated and expended 

for Iraq relief and reconstruction efforts. As a part of this effort, SIGIR has reported on the 

status of appropriated funds, such as the Iraq Relief and Reconstruction Fund 1 and 21, and other 

funds that have been used, such as the Development Fund for Iraq and the Seized and Vested 

Assets Fund.2

This report is on the status of International Narcotics Control and Law Enforcement (INCLE) 

funds allocated to the Department of State’s (DoS) Bureau of International Narcotics and Law 

Enforcement Affairs (INL) for Iraq. Specifically, SIGIR is reporting on INCLE funds allocated 

for Iraq for fiscal years 2006 through 2010 that have been obligated and expended and that have 

expired. SIGIR and the DoS Office of Inspector General previously reported on the status of 

fiscal years 2003 to 2005 INCLE and other funds for Iraq programs allocated to INL.3 

For fiscal years 2006 through 2010, SIGIR found that INCLE funds for Iraq in the DoS Budget 

Summary reports to the Congress matched the amounts reported in the INL Program reviews and 

DoS's Global Financial Management System. For fiscal years 2006 through 2010, funds totaling 

almost $1.1 billion have been allocated for INL programs in Iraq. As of June 30, 2011, 

approximately $845 million of the $1.1 billion had been obligated and $717 million had been 

expended. The majority of the unobligated and unexpended funds were allocated for fiscal year 

2010. There were no expired funds as of June 30, 2011, and $223 million had not been 

obligated. 

 

1

Iraq Relief and Reconstruction Fund 1: Report on Apportionments, Expenditures, and Canceled Funds, SIGIR 11-

007, 1/25/2011; and Iraq Relief and Reconstruction Fund 2: Report on Apportionments, Expenditures, and Status at 

End of Fiscal Year 2010, SIGIR 11-013, 4/22/2011. 2 Development Fund for Iraq: Department of Defense Needs To Improve Financial and Management Controls, 

SIGIR 10-020, 7/7/2010, and Guidance Needed for Use of Residual Iraqi Vested and Seized Asset Funds, SIGIR 11-

002, 10/15/2010. 

3

Survey of the Status of Funding for Iraq Programs Allocated to the Department of State’s Bureau of International 

Narcotics and Law Enforcement Affairs as of December 31, 2005, SIGIR 06-018 and AUD/IQO-06-30, July 2006. 
2 

Background 

INL is responsible for developing policies and managing programs to strengthen law 

enforcement and other rule of law institutional capabilities outside the United States. INCLE 

funds support INL’s foreign policy objectives. In accordance with its responsibilities, INL has 

managed and supported programs since 2003 that assist the Government of Iraq in strengthening 

its criminal justice, law enforcement, and courts/judicial systems. INCLE funds from fiscal year 

2006 through fiscal year 2009 were focused primarily in the criminal justice and corrections 

areas. Fiscal year 2010 funds continued programs in these two areas, but the bulk of the funds 

were focused on the Iraqi police development program. Responsibility for that program 

transferred from the Department of Defense to DoS on October 1, 2011, and fiscal year 2010 

funds were to be used to support the program’s start-up requirements. 

INCLE Funding for Iraq 

For fiscal year 2006 through fiscal year 2010, approximately $1.1 billion of INCLE funds have 

been allocated for INL programs in Iraq. Table 1 shows the public laws and the funds allocated.

Table 1—Laws Appropriating INCLE Funds for Iraq (Fiscal Years 2006–2010) 

Fiscal 

Year 

Public 

Law 

Title Amount Allocated

2006 109-234 Emergency Supplemental Appropriations Act for 

Defense, The Global War on Terror, and Hurricane 

Recovery, 2006 

$91,400,000

2007 110-5 Revised Continuing Appropriations Resolution, 2007 20,048,000

2007 110-28 U.S. Troop Readiness, Veterans’ Care, Katrina 

Recovery, and Iraq Accountability Appropriations Act, 

2007 

150,000,000 

2008 110-252 Supplemental Appropriations Act, 2008 85,000,000 

2009 111-32 Supplemental Appropriations Act, 2009 20,000,000

2010 111-117 Consolidated Appropriations Act, 2010 52,000,000 

2010 111-212 Supplemental Appropriations Act, 2010 650,000,000

Total $1,068,448,000

Source: Public Laws information provided by INL.

Status of INCLE Funds for Iraq 

As of June 30, 2011, the status of the approximately $1.1 billion of INCLE funds allocated to 

INL for its Iraq programs was as follows: $845.1 million had been obligated, and $717.3 million 

had been expended. Table 2 shows the obligations and expenditures for each fiscal year 

allocation. 
3 

Table 2—Status of INCLE Funds for Iraq, as of June 30, 2011 (FYs 2006–2010) 

Fiscal Year Allocated Obligated Expended

2006 $91,400,000 $91,400,000 $88,280,000

2007 170,048,000 166,402,000 150,716,000

2008 85,000,000 84,998,000 57,314,000

2009 20,000,000 20,000,000 10,435,000

2010 702,000,000 482,341,000 410,553,000

Total $1,068,448,000 $845,141,000 $717,298,000

Source: SIGIR compiled from INL data. 

Table 3 shows the status of INCLE funds by program as of June 30, 2011. 

Table 3—Status of Fiscal Years 2006–2010 INCLE Funds for Iraq by Program, as 

of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended

Criminal Justice 

 Justice Integration $6,828 $6,828 $6,074

 Public Integrity 31,657 29,657 23,721

 Rule of Law Advisors 26,016 25,956 17,364

 Courts 109,344 104,486 76,850

 Legal Framework 2,520 2,507 2,507

 Major Crimes Task Force 13,468 13,112 10,413

 Police Advisors 663,060 457,617 405,597

 Subtotal 852,893 640,163 542,526

Corrections

 Advisors 97,255 90,559 71,745

 Construction 83,700 83,700 82,248

 Subtotal 180,955 174,259 153,993

Counternarcotics 1,000 1,000 0

Deobligationsa -3,632 

Other (Program Development & 

Support)b 33,600 33,351 20,779

Total $1,068,448 $845,141 $717,298

Notes: 

a The deobligations amount comprises several items described further in Appendix B. 

b Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation.

Source: SIGIR compiled from INL data. 
4 

As Table 3 shows, the largest program representing 62% of allocated funds is for police advisors. 

The next three largest programs—support for the Iraqi courts, corrections advisors, and 

corrections facilities—accounted for another 27% of the allocated funds. Appendix B shows the 

allocated, obligated, and expended funds by program and fiscal year funds. 

There Are No Expired Funds 

INCLE funds are available for obligation for two years. In addition, Section 511 of the fiscal 

year 2006 Foreign Operations Appropriation Act states, INCLE “funds shall remain available 

[for deobligation and reobligation] for an additional four years from the expiration date of the 

appropriation, as long as the funds were initially obligated before the appropriation expired." 

The "511 authority" on availability of funds has been carried forward to appropriations for fiscal 

years 2007 through 2010 under the following provisions: Section 611 for fiscal years 2007 and 

2008, and Section 7011 for fiscal years 2009 and 2010. 

We verified that INCLE funds allocated for fiscal years 2006, 2007, and 2008 were obligated 

before the expiration dates of the appropriations. Therefore, they are available for obligation for 

a six-year period, and there are no expired funds. 

Concluding Observation 

We found no significant issues related to INCLE obligations and expenditures. INL allocated 

funds to support Iraq programs, and those funds are being obligated within their availability 

timeframes. Moreover, we found that allocated INCLE funds for Iraq in the DoS Budget 

Summary reports to the Congress matched the figures reported in the INL Program reviews and 

DoS’s Global Financial Management System. 

Management Comments 

Because this report did not contain recommendations, DoS was not required to, and did not, 

submit comments. 

- - - - 

 
5 

We appreciate the courtesies extended to the SIGIR staff. For additional information on the 

report, please contact Glenn D. Furbish, Assistant Inspector General for Audits (Washington, 

DC), (703) 604-1388/ glenn.furbish@sigir.mil or Jim Shafer, Principal Deputy Assistant 

Inspector General for Audits (Washington, DC), (703) 604-0894/ james.shafer@sigir.mil. 

Stuart W. Bowen, Jr. 

Inspector General 

 
6 

Appendix A—Scope and Methodology 

Scope and Methodology 

In August 2010, the Special Inspector General for Iraq Reconstruction (SIGIR) announced 

Project 1021 to determine the status of the Department of State’s (DoS) Bureau of International 

Narcotics and Law Enforcement Affairs (INL) International Narcotics Control and Law 

Enforcement (INCLE) funds used for the reconstruction of Iraq. SIGIR’s objective for this 

report was to determine the amount of INCLE funds allocated for Iraq that have been obligated 

and expended and that have expired. 

This audit was performed under the authority of Public Law 108-106, as amended, which also 

incorporates the duties and responsibilities of inspectors general under the Inspector General Act 

of 1978, as amended. SIGIR conducted its review from March through September 2011 in the 

Washington, D.C. area. 

To accomplish our objectives, we held discussions with and analyzed documents provided by 

INL officials. These documents included Program Overview and Budget Summary reports for 

the Congress for fiscal years 2006 through 2010, and INL financial data obtained from the DoS 

Global Financial Management System. 

The INCLE funds for INL’s Iraq program were often mixed with INCLE funds for INL 

programs in other countries and required SIGIR auditors to work with INL officials to determine 

the funds for Iraq. For example, the Supplemental Appropriations Act for fiscal year 2009 

included $20 million for INL for Iraq and Afghanistan. We were told by INL officials that the 

$20 million was for only Iraq, despite being listed for both country programs. 

This audit was conducted in accordance with generally accepted government auditing standards. 

Those standards require that we plan and perform the audit to obtain sufficient, appropriate 

evidence to provide a reasonable basis for our findings and conclusions based on our audit 

objectives. We believe that the evidence obtained provides a reasonable basis for our findings 

and conclusions based on our audit objectives. 

Use of Computer-processed Data 

We relied on computer-processed data contained in DoS’s computerized Global Financial 

Management System; a web-based application, which supports financial accounting, funds 

control, management accounting, and financial reporting processes. According to DoS, this 

system comprises subsystems that include budget execution, travel, accounts payable, accounts 

receivable, planning, automated disbursement, general ledger, annual closing of books, 

acquisition and delivery of goods, and reporting. We did not assess the system’s general 

controls, but cross-referenced the data with supplemental information obtained from the DoS 

Congressional Budget Overview and Summary Reports for fiscal years 2005 through 2011. 

Accordingly, we did not independently verify the detailed computer-generated information, but 

because these are basic accounting systems of the U.S. Government and the involved 
7 

organization, the data were the best available for purposes of our review, and we concluded that 

the data were sufficiently reliable to be used in meeting the audit objectives. 

Internal Controls 

In conducting the review, we discussed the DoS’s internal and management control procedures 

to manage INL funds for Iraq. 

Prior Coverage 

We reviewed the following report prepared jointly by SIGIR and the Department of State Office 

of Inspector General. 

Survey of the Status of Funding for Iraq Programs Allocated to the Department of State’s 

Bureau of International Narcotics and Law Enforcement Affairs as of December 31, 2005, 

SIGIR 06-018, AUD/IQO-06-30, July 2006. 
8 

Appendix B—Status of INCLE Funds for Iraq for 

Fiscal Years 2006–2010 by Appropriation and 

Programs 

Tables 4 through 10 show the status of INCLE funds for Iraq for fiscal years 2006 through 2010 

by allocation and programs, as of June 30, 2011. 

Table 4—Status of INCLE Funds in Emergency Supplemental Appropriations Act 

for Fiscal Year 2006 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Rule of Law Advisors $7,700 $7,700 $6,032 

Corrections 

 Construction 83,700 83,700 82,248 

Total $91,400 $91,400 $88,280 

Source: SIGIR compiled from INL data. 

Table 5—Status of INCLE Funds in Continuing Resolution Act for Fiscal Year 

2007 by Program, as of June 30, 2011 ($ in thousands)

INL Program Allocated Obligated Expended 

Criminal Justice 

 Justice Integration $1,741 $1,741 $1,096 

 Public Integrity 2,447 2,447 2,312 

 Rule of Law Advisors 506 517 517 

 Courts 1,174 1,174 746 

 Legal Framework 520 507 507 

 Major Crimes Task Force 1,168 1,168 1,175 a

Corrections 

 Advisors 8,992 8,992 8,933 

Deobligationsb -3,568 

Other (Program Development & 

Support)c 3,500 3,500 2,815 

Total $20,048 $16,478 $18,101 

Notes: 

a This was an Intra-Governmental Payment and collection charge from the Department of Justice that required reconciliation. INL 

completed this reconciliation and the account will be balanced and reported correctly. b Deobligated due to Travel and Contract Close Outs.

c Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation.

Source: SIGIR compiled from INL data. 
9 

Table 6—Status of INCLE Funds in Iraq Accountability Appropriations Act for 

Fiscal Year 2007 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Justice Integration $5,087 $5,087 $4,978 

 Public Integrity 21,000 21,000 20,444 

 Rule of Law Advisors 5,600 5,600 4,850 

 Courts 52,150 52,150 46,246 

 Legal Framework 2,000 2,000 2,000 

 Major Crimes Task Force 11,000 11,000 9,238 

 Police Advisors 500 500 424 

Corrections 

 Advisors 39,563 39,563 37,118 

Deobligationsa -76 

Other (Program Development & 

Support)b 13,100 13,100 7,317 

Total $150,000 $149,924 $132,615 

Notes: 

a Deobligation is from travel account. 

b Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation. 

Source: SIGIR compiled from INL data. 

Table 7—Status of INCLE Funds in Supplemental Appropriations Act for Fiscal 

Year 2008 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Public Integrity $6,210 $6,210 $965 

 Rule of Law Advisors 5,210 5,233 3,606 

 Courts 35,320 35,320 24,815 

 Police Advisors 560 537 382 

Corrections 

 Advisors 31,700 31,700 22,278 

Deobligationsa -2 

Other (Program Development & 

Support)b 6,000 6,000 5,268 

Total $85,000 $84,998 $57,314 

Notes: 

a Deobligation is from recurring obligations.

b Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation.

Source: SIGIR compiled from INL data. 
10 

Table 8—Status of INCLE Funds in Supplemental Appropriations Act for Fiscal 

Year 2009 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Rule of Law Advisors $3,000 $3,000 $2,359 

 Courts 9,000 9,000 4,232 

 Police Advisors 5,000 5,000 1,012 

Other (Program Development & 

Support)a 3,000 3,000 2,832 

Total $20,000 $20,000 $10,435 

Note: 

a Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation.

Source: SIGIR compiled from INL data. 

Table 9—Status of INCLE Funds in Consolidated Appropriations Act for Fiscal 

Year 2010 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Public Integrity $2,000 $0 $0 

 Rule of Law Advisors 4,000 3,906 0 

 Courts 11,700 6,842 811 

 Major Crimes Task Force 1,300 944 0 

 Police Advisors 7,000 5,995 894 

Corrections 

 Advisors 17,000 10,304 3,416 

Counternarcotics 1,000 1,000 0 

Other (Program Development & 

Support)a 8,000 7,751 2,547 

Total $52,000 $36,742 $7,668 

Note: 

a Program Development and Support Funds pay general and administrative expenses for operating INCLE foreign assistance 

programs. This could include salaries, benefits, allowances, and training of U.S. and locally engaged direct-hire and contract

personnel. Funds could also pay for systems and tools for oversight and control, travel, and other costs for program planning,

design, implementation, and monitoring and evaluation. 

Source: SIGIR compiled from INL data. 
11 

Table 10—Status of INCLE Funds in Supplemental Appropriation Act for Fiscal 

Year 2010 by Program, as of June 30, 2011 ($ in thousands) 

INL Program Allocated Obligated Expended 

Criminal Justice 

 Police Advisors $650,000 $445,585 $402,885 

Deobligationsa 14 

Total $650,000 $445,599 $402,885 

Note: 

a The deobligated funds were added to the INCLE account due to a fee adjustment that lowered the costs of a contract.

Source: SIGIR compiled from INL data. 
12 

Appendix C—Acronyms 

Acronym Description 

DoS Department of State 

INCLE International Narcotics Control and Law Enforcement 

INL Bureau of International Narcotics and Law Enforcement Affairs 

SIGIR Special Inspector General for Iraq Reconstruction 

 
13 

Appendix D—Audit Team Members 

This report was prepared and the audit conducted under the direction of Glenn D. Furbish, 

Assistant Inspector General for Audits, Office of the Special Inspector General for Iraq 

Reconstruction. 

The staff members who conducted the audit and contributed to the report include: 

Robert Pelletier 

James Smith 

William Whitehead 

 
14 

Appendix E—SIGIR Mission and Contact Information 

SIGIR’s Mission Regarding the U.S. reconstruction plans, programs, and 

operations in Iraq, the Special Inspector General for Iraq 

Reconstruction provides independent and objective: 

 oversight and review through comprehensive audits, 

inspections, and investigations 

 advice and recommendations on policies to promote 

economy, efficiency, and effectiveness 

 deterrence of malfeasance through the prevention and 

detection of fraud, waste, and abuse 

 information and analysis to the Secretary of State, the 

Secretary of Defense, the Congress, and the American 

people through Quarterly Reports 

Obtaining Copies of SIGIR 

Reports and Testimonies 

To obtain copies of SIGIR documents at no cost, go to 

SIGIR’s Web site (www.sigir.mil). 

To Report Fraud, Waste, and 

Abuse in Iraq Relief and 

Reconstruction Programs 

Help prevent fraud, waste, and abuse by reporting 

suspicious or illegal activities to the SIGIR Hotline: 

 Web: www.sigir.mil/submit_fraud.html 

 Phone: 703-602-4063 

 Toll Free: 866-301-2003 

Congressional Affairs Hillel Weinberg 

Assistant Inspector General for Congressional 

 Affairs 

Mail: Office of the Special Inspector General 

 for Iraq Reconstruction 

2530 Crystal Drive 

 Arlington, VA 22202-3940

Phone: 703-428-1059 

Email: hillel.weinberg@sigir.mil 

Public Affairs Deborah Horan 

Office of Public Affairs 

Mail: Office of the Special Inspector General 

 for Iraq Reconstruction 

2530 Crystal Drive 

 Arlington, VA 22202-3940

Phone: 703-428-1217 

Fax: 703-428-0817 

Email: PublicAffairs@sigir.mil