GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

July 18, 2003 

The Honorable John Warner 

Chairman 

The Honorable Carl Levin 

Ranking Minority Member 

Committee on Armed Services 

United States Senate 

The Honorable Duncan Hunter 

Chairman 

The Honorable Ike Skelton 

Ranking Minority Member 

Committee on Armed Services 

House of Representatives 

Subject: FY 2004 Annual Report on the Cooperative Threat Reduction Program 

Under section 1308 of the National Defense Authorization Act for Fiscal Year 2001 

(P.L. 106-398), the Department of Defense is to submit an annual report to 

Congress on its Cooperative Threat Reduction (CTR) program no later than the 

first Monday in February of each year. The report should include a five-year plan 

that discusses the amount and purpose of funding needed over the term of the 

plan and a description of efforts conducted by the United States to ensure that 

CTR assistance is fully accounted for and used for its intended purposes. The Act 

requires the Comptroller General to assess this five-year plan and the description 

of efforts to account for CTR assistance within 90 days of the report’s submission 

to Congress. The Department submitted its CTR annual report for fiscal year 2004 

to Congress on April 18, 2003. 1

We analyzed the 2004 report to determine whether (1) the five-year plan 

addressed the legislative requirements and presents accurate information, (2) the 

accountability section addressed legislative requirements and presents accurate 

information, and (3) the presentation and usefulness of the CTR annual report 

could be improved. Attached to this letter are a series of slides provided to your

 

1

The CTR annual report for fiscal year 2004 includes a section titled “cooperative threat reduction 

(CTR) program implementation plan for FY 2004,” which we refer to as the five-year plan, and a 

section titled “accounting for cooperative threat reduction (CTR) program assistance to states of 

the former Soviet Union (FSU) conducted during FY 2002,” which we refer to as the accountability 

section. 

United States General Accounting Office 

Washington, DC 20548 
Page 2 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

staff presenting our assessment of the CTR annual report submitted for fiscal year 

2004 (see encl. I). 

 

We found that the five-year plan addressed the legislative requirements by setting 

forth funding information for the term of the plan and the purpose of those funds. 

We also confirmed with project managers that, for the eight projects we reviewed 

in detail, the information provided in the five-year plan was generally accurate. 

We found that the accountability section addressed all legislative requirements. It 

described the condition and location of CTR-furnished equipment, discussed the 

status of contracts and services and the methods used to ensure that CTR aid is 

used for the purposes intended, determined whether assistance provided has been 

used effectively and efficiently, and described the audits and examinations 

planned for the next year. We found that the information was generally accurate 

and complete and included the concerns raised in project trip reports and audit 

and examinations. However, we noted two issues where the information was not 

accurate and complete. First, there was no discussion of Russia’s plans to store 

weapon-grade plutonium at Mayak. CTR funding for this facility was intended 

only for the storage of weapon-source fissile material to facilitate the 

dismantlement of nuclear weapons.2

 Second, the list of equipment delivered 

under the CTR program was incomplete because CTR officials do not have 

complete records of equipment delivered before fiscal year 1999. 

We found that the report lacked a discussion of key strategic planning elements 

that could help congressional decision makers in their annual CTR budget 

deliberations. Specifically, the report did not include annual performance goals 

linked to long-term goals, information on external factors that could affect the 

achievement of these goals, and plans for revising program goals, all of which are 

already developed by CTR program managers. Furthermore, the report provided 

relevant project information in different locations, making it difficult to 

understand the progress and problems of each project. Therefore, we recommend 

that, in preparing future CTR annual reports to Congress, the Secretary of Defense 

(1) incorporate key federal strategic planning elements and (2) integrate the fiveyear plan and accountability sections of the report to provide Congress with all 

project information in one location. 

We performed our work in Washington, D.C., from April 2003 through July 2003 in 

accordance with generally accepted government auditing standards. 

We provided a draft of this report to Department of Defense (DOD) officials. 

DOD provided written comments on the draft of this report, which are included in 

Enclosure II. DOD concurred with our recommendation that future CTR annual 

reports integrate the five-year plan and accountability sections of the report. DOD 

did not, however, concur with the recommendation that the department 

 

2

See U.S. General Accounting Office, Weapons of Mass Destruction: Effort to Reduce Russian 

Arsenals May Cost More, Achieve Less Than Planned, GAO-NSIAD-99-76 (Washington, D.C.: April

1999). 
Page 3 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

incorporate key federal strategic planning elements in future CTR annual reports. 

DOD stated that the legislation does not require reporting on these elements in the 

annual report to Congress. 

Neither effort proposed by our recommendations is required in the legislation. 

However, incorporating the key federal strategic planning elements and 

integrating the five-year plan and accountability sections of the report will 

improve the presentation and usefulness of future CTR annual reports to 

Congress. Furthermore, key federal strategic planning elements are already 

included in CTR project management planning documents. Incorporating these 

planning elements into the CTR annual report could help congressional decision 

makers in their annual CTR budget deliberations. Incorporating key federal 

strategic planning elements into a report that integrates its five-year plan and 

accountability sections would strengthen the presentation and usefulness of the 

annual CTR report provided to Congress. Therefore, we continue to recommend 

that the Secretary of Defense incorporate key federal strategic planning elements 

and integrate the five-year plan and accountability sections of the report. 

- - - - - 

We are sending copies of this report to the Secretary of Defense and to interested 

congressional committees. This report will also be available at no charge on our 

Web site at http://www.gao.gov. 

If you or your staff have any questions regarding this assessment, please contact 

me at (202) 512-8979. James Shafer, Hynek Kalkus, Monica Brym, Beth Hoffman 

León, David Maurer, Pierre Toureille, Martin de Alteriis, Valerie Nowak, and Lynn 

Cothern also made key contributions to this report. 

Joseph A. Christoff 

Director, International Affairs and Trade 

Enclosures 
Enclosure I 

Page 4 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

1

Cooperative Threat Reduction 

Annual Report for FY 2004

Briefing to the Staffs of the Armed Services 

Committees
Enclosure I 

Page 5 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

2

Overview

• Background

• GAO objectives

• Results in brief

• Five-year plan

• Accountability section

• CTR annual report presentation

• Conclusions

• Recommendations
Enclosure I 

Page 6 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

3

Background

• The National Defense and Authorization Act (NDAA) for fiscal year 2001 

requires the Department of Defense to submit an annual CTR report that 

sets forth

• the amount and purpose of funding needed over the next 5 years, and

• a description of the audit and examinations (A&E) and other efforts 

conducted by the United States to ensure that CTR assistance is fully 

accounted for and used for its intended purposes.

• NDAA requires GAO to assess the five-year plan and the accountability 

section within 90 days of the annual report’s submission.
Enclosure I 

Page 7 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

4

Objectives

• Determine whether the five-year plan addresses legislative 

requirements and presents accurate information

• Determine whether the accountability section addresses legislative 

requirements and presents accurate information

• Identify ways to improve the presentation and usefulness of the 

CTR annual report
Enclosure I 

Page 8 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

5

Scope & Methodology: Five-year plan

• To determine whether the five-year plan addresses legislative 

requirements and presents accurate information:

• We assessed the plan to determine if it included the 

amount of funds and resources proposed to be provided 

over the term of the plan and a description of how those 

resources will be used.

• We selected eight projects and compared the information 

presented in the plan with information from project 

managers to determine the accuracy of the data.
Enclosure I 

Page 9 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

6

Scope & Methodology: Accountability 

section

• To determine whether the accountability section addresses 

legislative requirements and presents accurate information:

• We assessed the section to determine if it included a 

description of the condition and location of CTR-furnished 

equipment, a discussion of the status of contracts and services 

and the methods used to ensure CTR aid is used for purposes 

intended, a description of whether assistance provided has 

been used effectively and efficiently, and a description of the 

audits and examinations planned for the next year.

• We reviewed 14 A&Es and 133 project management trip 

reports for FY 2002 to determine if the section accurately 

presents concerns raised in these reports.
Enclosure I 

Page 10 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

7

Scope & Methodology: CTR annual report 

presentation

To identify ways to improve the presentation and usefulness of the 

CTR annual report:

• We compared the FY 2004 CTR report’s content with key planning 

elements from the Government Performance and Results Act.

• We assessed how the legislative requirements were presented in 

the report.
Enclosure I 

Page 11 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

8

Results in Brief

• FY 2004 five-year plan

• All legislative requirements were addressed

• Information provided in eight sample projects was accurate

• Accountability section

• All legislative requirements were addressed

• Information provided was generally accurate and complete

• CTR annual report presentation

• Key strategic planning elements are not incorporated in the report

• Project information not provided in one comprehensive discussion
Enclosure I 

Page 12 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

9

Principal Findings: Five-year plan addressed 

legislative requirements; the information provided was 

accurate.

• The report provided the amount of funds and resources proposed 

for the term of the plan.

• The report stated the purposes for which these proposed funds and 

resources will be used.

• The project managers of eight selected projects confirmed that the 

project information was accurate as of January 2003.
Enclosure I 

Page 13 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

10

Principal Findings: Accountability section 

addressed all legislative requirements.

• Described the condition and location of CTR-furnished equipment;

• Discussed the status of contracts and services and the methods 

used to ensure CTR aid is used for purposes intended;

• Determined whether assistance provided has been used effectively, 

efficiently, and for the purpose intended; and

• Described the audits and examinations planned for the next year.
Enclosure I 

Page 14 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

11

Principal Findings: Accountability section

information was generally accurate and complete.

• The information provided in the report regarding the accountability 

of CTR-provided assistance was generally accurate and complete, 

except that it

• did not discuss Russia’s plan to store weapons-grade plutonium at Mayak. CTR funding for this facility was intended only for the storage of weapon-source fissile material to facilitate the dismantlement of 

nuclear weapons.

• did not provide a complete list of equipment delivered; CTR program does not have complete records of equipment provided before fiscal year 1999.
Enclosure I 

Page 15 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

12

Principal Findings: CTR annual report did not 

include key strategic planning elements.

• The report does not incorporate key federal strategic planning 

elements that could help congressional decision makers in their 

annual CTR budget deliberation, including

• annual performance goals based on objective measures of results and 

linked to long-term goals, 

• a description of external factors beyond the agency’s control that could 

affect achievement of program goals, and

• plans for revising program goals.

• GAO reports cite these factors as important planning elements.

• The report’s five-year plan does not provide these planning 

elements; however, they are included in CTR project management 

planning documents.
Enclosure I 

Page 16 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

13

Principal Findings: Project information was not 

provided in one comprehensive discussion.

Project information is provided in various locations of the CTR annual 

report for fiscal year 2004:

• Progress in the past year (FY2002), proposed funding (FY2004-2009), and purpose of proposed funds for each project are discussed in the report’s five-year plan (pp. 8-41).

• Location, efforts to account for CTR assistance, and past problems encountered, such as access issues, project delays, and instances of non-cooperation for each project are discussed in the report’s accountability section (pp. 42-99).

For example, the report’s discussion of the SS-24 propellant disposition 

facility project in Ukraine includes

• proposed funding, the purpose of the proposed funds, and a description of activities carried out in FY 2002 (pp. 18-19); 

• the location of the project, efforts to account for the CTR assistance, 

and past problems encountered on the project (p. 64).
Enclosure I 

Page 17 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

14

Conclusion

• The annual CTR report does not include federal strategic planning 

factors and thus does not provide a useful context for 

understanding how project and budget plans might be affected in 

the future.

• Relevant project information is scattered throughout the report 

making it difficult to understand the progress and problems of each 

project. Consolidating this information in one location will provide 

readers with a more accessible presentation of each project.
Enclosure I 

Page 18 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

15

Recommendation

We recommend that, in preparing future CTR annual reports to 

congress, the Secretary of Defense: 

(1) incorporate key federal strategic planning elements, such as a 

description of annual performance goals linked to long-term goals, 

external factors that could affect the achievement of program goals, 

and plans for addressing these external factors, and

(2) combine the five-year plan and accountability sections of the 

report.
Enclosure II 

Page 19 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

Comments from the Under Secretary of Defense 
Enclosure II 

Page 20 GAO-03-1008R Cooperative Threat Reduction Program Annual Report 

(320193) 
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