1
2
3

Department of the Treasury

Federal Law Enforcement

Training Center

The Federal Law Enforcement Training Center (FLETC) was

established by Treasury Order 217 on July 1, 1970 as a bureau

within the Department of the Treasury. Originally located in

Washington, DC, the FLETC relocated its headquarters and

main training center to Glynco, Georgia in 1975. In 1989, the

FLETC expanded its operations to Artesia, New Mexico with

the purchase of a 2,200-acre site that supports the Bureau of

Indian Affairs and other advanced training needs. In FY 1991,

the U.S. Border Patrol established a temporary training site in

Charleston, South Carolina. The FLETC does not own this facility,

but provides support to the U.S. Border Patrol operation of the temporary

training site. In FY 2001, the FLETC added a 247-acre facility in

Cheltenham, Maryland for firearms and vehicle operation requalification training

for Federal law enforcement officers in the metropolitan DC area. The facility is planned

to be fully operational in FY 2004. The FLETC is an interagency center providing training

to over 70 partner organizations and many more space-available agencies. The FLETC is

currently expanding its facilities to meet the demands for law enforcement training-basic,

advanced, requalification, state/local, and international.

Overall policies and participation of the FLETC are governed by a Memorandum of

Understanding which is signed by the agencies participating in training. An Interagency

Board of Directors, chaired by the Under Secretary of Enforcement for the Treasury, sets

policies on training matters. There are eight members of the Board: five voting and three

non-voting.

The voting members are:

• Department of the Treasury

• Department of Justice

• Department of Interior

• General Services Administration

• Rotating (currently Transportation

 Security Administration)

The non-voting members are:

• Office of Management and Budget

• Office of Personnel Management

• U.S. Capitol Police

The Board of Directors meets

quarterly. Typically, the meetings

alternate between Washington, DC

and Glynco, Georgia.
4

Table

of

Contents

OUR MISSION IS TO SERVE AS

THE FEDERAL GOVERNMENT’S

LEADER FOR AND PROVIDER OF

WORLD-CLASS

LAW ENFORCEMENT TRAINING.
5

Table of Contents

Executive Summary......................................................................5

Message from the Director.............................................................7

Message from the Chief Financial Officer............................................9

FY 2002 Highlights...................................................................................11

Management Discussion and Analysis...............................................19

Federal Managers’ Financial Integrity Act (FMFIA) Summary.............53

Auditor’s Report.........................................................................57

Financial Statements.............................................................................65

Notes to the Financial Statements.....................................................71

Custodial Financial Statements........................................................83

Supplemental Information...............................................................87
6

Executive

Summary
7

Executive Summary

This report marks the seventh

consecutive year that the FLETC has

prepared a Performance and

Accountability Report. FY 2002 is the

third successive year in which the

FLETC received an unqualified

opinion as a result of an independent

financial audit.

The report includes messages from

both the FLETC’s Director and Chief

Financial Officer, FY 2002 Highlights,

Management Discussion and Analysis,

Federal Managers’ Financial Integrity

Act Summary, Auditor’s Report,

Financial Statements, Notes to the

Financial Statements, and

Supplemental Information. The

Management Discussion and Analysis

section addresses the FLETC’s

organizational structure, mission,

vision, performance goals, trends and

future effects, and key financial

highlights.

A copy of the FLETC’s FY 2002

Performance and Accountability

Report is available for public review

and downloading at the FLETC’s Web

Page: http://www.fletc.gov/contents/

htm.
8

Message

from the

Director

Aerial View of the Federal Law Enforcement Training Center (FLETC),

Glynco, Georgia

Welcome Center
9

Message from the Director

Connie L. Patrick

Fiscal Year 2002 has been an exceptionally productive year for the FLETC. We have

responded successfully to the unprecedented demand for federal law enforcement training

from partner and non-governmental organizations. Over 32,000 students were trained in

FY 2002, an all-time high for the FLETC in its 32 years of operation. I am very proud of

the enormous accomplishment made possible by the FLETC staff’s unwavering support,

professionalism and dedication to duty.

Most of the FLETC’s efforts in FY 2002 were focused in accommodating the

post-9/11 training needs of the partner organizations. We have included the

significant accomplishments supporting these efforts in the FY 2002 Highlights

in this report. I commend our partner organizations who have continuously

collaborated with us in establishing new training programs and refining training

curricula. The FLETC values the teamwork and camaraderie with the partner

organizations that are vital in effectively training the new federal law

enforcement officers who are expected to be at the forefront of homeland

security.

The FLETC continues to upgrade its infrastructure in an effort to provide an

ideal training environment. Two new firearms ranges were completed in Artesia,

New Mexico. Numerous renovation projects enabled the FLETC facilities to

be more conducive to the demanding life of law enforcement students. We

significantly improved the logistical support for students. A direct jet service

and affordable, quality hotel-type accommodations are now available at Glynco,

Georgia. We will aggressively seek funding for the FLETC Master Plan

construction and renovation projects to ensure that our facilities are modernized

and equipped with the state-of–the-art training devices. We will be innovative

in order to keep up with the emerging demands for better service at reduced

training costs.

In this era of heightened security and terrorist threats, the FLETC is mindful of the public

expectation that federal law enforcement officers be trained effectively with the most upto-date, relevant knowledge and honed practical skills, ready to take on the challenges of

protecting the U.S. citizenry. I am glad to report that the FLETC continues to provide

leadership and direction in the accreditation process of law enforcement training agencies.

The accreditation will distinctively recognize the excellence in training federal agents and

law enforcement officers, as well as, provide assurance to the public that the federal law

enforcement officers are trained properly.

Finally, in view of the realignment of the FLETC to the new Department of Homeland

Security, the FLETC will continue to provide cost-effective law enforcement training to

our partner organizations and other stakeholders. We look forward to the challenges of

the future.
10

Message

from the

Chief Financial

Officer

Coverdell Building

Steed Building

“The FLETC responded to the critical

post-9/11 training needs of partner and

non-governmental organizations in a

professional and timely manner. The

training of law enforcement officers

accomplished in FY 2002 was truly

remarkable.”

Finance and Budget

Building
11

Message from the

Chief Financial Officer

D. Kenneth Keene

I am very pleased to present the Federal Law Enforcement Training Center’s (FLETC)

Performance and Accountability Report (PAR) for Fiscal Year 2002. The PAR contains

highlights of key accomplishments, management discussion and analysis that includes

the FLETC performance measures, Federal Managers’ Financial Integrity Act summary,

auditor’s report, financial statements with notes and supplementary information.

The FLETC’s commitment to excellence in financial reporting was prevalent

in FY 2002. We consistently met the Department of the Treasury 3-Day close

requirement, which became the pivotal foundation for an orderly financial

closeout at the end of the fiscal year. The FLETC staff overwhelmingly

supported the Department of the Treasury’s objective for an accelerated yearend closing and diligently worked hard to ensure its timely completion. Indeed,

it was a noteworthy accomplishment in financial reporting. I am very proud

for the “can do” attitude and professionalism displayed by the FLETC staff.

For the third consecutive year, the FLETC received an unqualified opinion on

its financial statements, which indicates a sustained competency in managing

the FLETC’s resources. We are assessing the management issues reported by

the independent auditor and expect to aggressively incorporate viable solutions

for those issues to improve our day-to-day business processes. We will continue

to seek innovative ways that will culminate in better support of the FLETC’s

training mission.

The FLETC continued to upgrade its Momentum financial management

software with the conversion to a web-based platform in FY 2002. Also, two

additional modules, the Cost Accounting and Fixed Assets, were implemented to integrate

the direct recording of business transactions and their financial effects in the financial

systems. These financial management software upgrades demonstrate the FLETC’s

continuing efforts to meet the financial management standards of success outlined in the

President’s Management Agenda.

The FLETC responded to the critical post-9/11 training needs of partner and nongovernmental organizations in a professional and timely manner. The training of law

enforcement officers accomplished in FY 2002 was truly remarkable. As we look forward

to the challenges of law enforcement and homeland security training, the FLETC’s Chief

Financial Officer organization remains deeply focused on providing guidance and support

toward sustaining sound resource management for our training mission.
12

Department of

Federal Law Enforcem
13

f the Treasury

ment Training Center

Highlights

Fiscal Year 2002

Department of the Treasury

Federal Law Enforcement

Training Center
14

Highlights

Fiscal Year

2002

FLETC

Trains

America’s

First Line

of

Defense
15

The FLETC has been in operation since 1970 and has evolved through many changes

during its 32 plus years of operation. Two of the most notable events in its history were

the selection of Glynco, Georgia as the headquarters site in 1975 and the opening of the

Artesia, New Mexico facility in 1989. These two permanent locations ensure that the

original intent of the interagency law enforcement training task force that created the

FLETC has been met. Specifically, the FLETC was established to provide consistent,

high quality law enforcement training programs in state-of-the-art facilities.

In FY 2002, the FLETC’s primary objective was to muster its resources and provide the

critical post-9/11 training needs of its partner organizations. The following selected

highlights reflect the most recent accomplishments in support of FLETC’s partner

organizations and in furtherance of FLETC’s training mission:

TRAINING OPERATIONS

• High Intensity Financial Crime Areas (HIFCA). In response to the Department

of the Treasury’s National Money Laundering Strategy, the FLETC has

successfully developed and expeditiously delivered the Advanced Money

Laundering Investigations training module for HIFCA. Law enforcement agents

from Chicago, Los Angeles, New York and San Francisco, and Puerto Rico

were trained in this module in FY 2002.

• Beamhit – Lasershot Technology: An Excellent Choice to Enhance Shooting

Skills. As part of its continuous commitment to reduce environmental hazards,

the FLETC integrated new commercial off-the-shelf technologies, Beamhit

and Lasershot, to enhance the fundamental shooting skills of law enforcement

training students without the use of live ammunitions. The FLETC Firearms

Division modified a separate classroom wherein students can hone their

marksmanship skills using the two merged technologies.

• Train-the-Trainer. The FLETC developed training programs that addressed

various post-9/11 needs of partner organizations. Specifically, the FLETC

assisted the newly formed Transportation Security Administration (TSA) in

developing a 30-hour train-the-trainer program to screen instructors, a 40-

hour training program for Passenger Security Screeners, and a search and seizure

treatise for the TSA Chief Counsel specifically directed at airport searches.

After an initial pilot program at the FLETC in February 2002, the TSA exported

the Passenger Security Screener Training Program throughout the nation.

Additionally, the FLETC Legal Division developed a legal course of instruction

unique to the Federal Air Marshal training program.
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Number of Students Trained and Student Weeks

FY 1998 - FY 2002

The number of students trained and student-weeks of training have grown tremendously

over the past five years. The number of students and student-weeks have increased by

46% and 38% respectively, since FY 1998, with the biggest jump attributed to the post9/11 training requirements for additional federal law enforcement officers in FY 2002.

Highlights

Fiscal Year

2002

NUMBER OF STUDENTS TRAINED

11

9

3

9

12

4

9

11

4

11

12

3

2 0

9

3

0

5

10

15

20

25

30

35

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Basic Advanced Others

THOUSAND

NUMBER OF STUDENT WEEKS

FY 1998 FY 1999

FY 2000

FY 2001

FY 2002

Others

Advanced

Basic

9 0

7 5 7 4

8 6

14 4

2 1

15 18

17

13

6

5

5

4

4

0

30

60

90

120

150

THOUSAND
17

• Driver Pursuit Initiative. The FLETC Office of State and Local Training staff

participated in seven symposia conducted by the National Center. After

thoroughly examining the legal, ethical and moral issues that impact the

individuals, agencies and communities, the panel of subject matter experts

and participants formulated a viable pursuit policy. The symposia assisted in

identifying specific training and technological needs related to the driver pursuit

that will enhance the effectiveness of law enforcement agencies.

• Survival Scores Research Project. The FLETC completed the Survival Scores

Research Project that assessed the performance of law enforcement officers

under stress in a dynamic training environment. The FLETC Behavioral Science

Division measured the student participants’ heart pulse rate, blood pressure

and cortical, as well as psychological measures, and compared the collected

data to their performance to identify predictive indicators of performance under

stress. As a result of the study, the division recommended modifications

designed to improve the FLETC training programs.

FEDERAL LAW ENFORCEMENT TRAINING ACCREDITATION

In an effort to increase the professionalism of federal law enforcement training, the FLETC

was funded in FY 2002 to facilitate the development and implementation of an accreditation

process for federal law enforcement training. The FLETC established and staffed the

Office of Accreditation (OAC) in FY 2002. Working with a task force of federal and state

law enforcement trainers, the OAC coordinated the effort to complete the development of

a set of standards and an independent accreditation process called the Federal Law

Enforcement Training Accreditation (FLETA). The FLETA process provides law

enforcement agencies with an opportunity to voluntarily demonstrate that they meet an

established set of professional standards in order to receive an appropriate recognition.

The effort included gaining support and commitment from Cabinet levels to establish a

FLETA Board, under the provisos of a Memorandum of Understanding between

participating departments, to represent law enforcement agencies throughout the federal

government and their various training academies and programs. The Board was established

and met in August 2002. The Board holds the final authority for FLETA standards, processes

and procedures. The Board confers accreditation status to the training programs and

academies that submit to the assessment process and successfully complete all requirements.

Although the FLETC Director serves as the Executive Secretary of the FLETA Board and

the FLETC provides administrative support for the OAC operations, the FLETC and the

FLETA Board are independent of one another and serve different functions in the broad

mission of federal law enforcement training.

CHELTENHAM, MARYLAND

In FY 2002, there was significant progress in the development of the driver and firearms

requalification training facility in Cheltenham, Maryland. The environmental assessment
18

Highlights

Fiscal Year

2002

Federal Law Enforcement Training Center

Cheltenham, Maryland

and architectural and engineering design for 13 construction projects were completed.

The ground breaking for the indoor firearms range was held in July 2002. The completion

and dedication of the U.S. Capitol Police Academy building highlighted the progress of

the facility. The state-of-the-art building will allow the U.S. Capitol Police to conduct

agency specific, in-service and advanced training, as well as practical exercises, for over

1,200 law enforcement officers in the metropolitan Washington, DC area. The Cheltenham,

Maryland facility expects to be fully operational by 2004.

FLETC REORGANIZATION

In FY 2002, the FLETC became a “flatter” organization primarily to improve its

responsiveness to post-9/11 workload requirements and to closely align its business

practices with the President’s Management Agenda. The previous three Associate Director

positions were replaced by a single Deputy Director position,

who now has Assistant Directors reporting directly to that

position. The streamlined reporting structure promotes

centralized control, eliminates duplication, improves internal

communication and facilitates faster decision-making.

Similarly, the Planning and Workforce Development

Directorate was dissolved with its subordinate Strategic

Planning and Analysis Division realigned under the Chief

Financial Officer as an element of the budget and performance

integration initiative. Also, the Workforce Development

Division was realigned with the Human Resources Division

under the new Chief Human Capital Officer. The most notable

change in the training operation involved the addition of an

Assistant Director, Field Training. The new office oversees

the consolidated non-federal and non-headquarters functions,

including state and local and international law enforcement

training activities, training sites in New Mexico and Maryland,

and support for the temporary Border Patrol training facility

in South Carolina. This change better positions the FLETC to

respond to the homeland security training needs of non-federal

agencies and to address the training needs associated with the

war on terrorism, including terrorist financing and international

money laundering. The FLETC activities related to the

information technology and E-government were consolidated

under the Chief Information Officer, who now oversees the

Information Systems Division and the distributed learning

programs. Also, the new Chief Assets Management Officer

oversees the Facilities Management, Procurement and Property

Management Divisions.
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TRAINING SUPPORT

• TSA Facility. The FLETC entered into a lease agreement for an adjacent offsite facility to accommodate the office space requirements of the TSA training

staff. The lease agreement is a precursor to the ultimate purchase of the 20-

acre site upon the availability of funds.

• Headhunter Referral Program. The FLETC implemented the Headhunter

Referral Program, a recruitment incentive program designed to reward FLETC

staff who successfully referred selected candidates for critical job vacancies.

In FY 2002, 12 positions were filled from the 265 referrals under the program.

• Hotel-type Student Lodging. The FLETC accepted the first of three buildlease hotel-type facilities for students at Glynco, Georgia. The facility provides

quality lodging accommodations at reasonable costs. The close proximity of

the 300-room building to the Center allows the students an easy access to the

classrooms, cafeteria and physical fitness facilities.

• Jet Service to Glynco, Georgia. The FLETC successfully negotiated an upgrade

of the commuting air transportation service to Glynco, Georgia with the Delta

Airlines. The direct jet service to Glynco, Georgia has significantly reduced

the commute time for students and the travel costs incurred by partner

organizations. The FLETC had been transporting the students to and from

airports in Jacksonville, Florida or Savannah, Georgia, approximately an hour

commute one way.

• Construction. Numerous construction projects were completed in FY 2002 to

accommodate the increased training requirements. The notable completions

include two new indoor/outdoor firearms ranges at Artesia, New Mexico; a

new crowd control tear gas range at Glynco, Georgia; and the U.S. Capitol

Police building at Cheltenham, Maryland.

• Information Technology (IT). In support of the IT strategic plan, the FLETC

Information Systems Division developed the Center’s IT modernization

program. Also, the FLETC is participating in a Smart Card and Public Key

Infrastructure Proof of Concept study with the Department of the Treasury.
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Highlights

Fiscal Year

2002

CATEGORY

GLYNCO:

Basic

Advanced

State/Local

International

Subtotal

ARTESIA:

Basic

Advanced

State/Local

International

Subtotal

CHARLESTON:

Basic

Advanced

State/Local

International

Subtotal

EXPORT:

Basic

Advanced

State/Local

Internation al

Subtotal

RECAP:

Basic

Advanced

State/Local

International

GRAND TOTAL:

13,857

7,607

527

167

22,158

5,065

879

8

0

5,952

959

0

0

0

959

0

489

2,531

3

3,023

19,881

8,975

3,066

170

32,092

101,417

10,564

902

318

113,201

17,590

1,594

8

0

19,192

25,116

0

0

0

25,116

0

595

2,569

4

3,168

144,123

12,753

3,479

322

160,677

1,950

203

17

6

2,176

338

31

0

0

369

483

0

0

0

483

0

11

49

0

3,060

2,771

245

66

6

3,088

63.1

6.6

0.6

0.2

70.5

10.9

1.0

0.0

0.0

11.9

15.6

0.0

0.0

0.0

15.6

0.0

0.4

1.6

0.0

2.0

89.7

7.9

2.2

0.2

100.0

*ARSP=Average Resident Student Population

The FLETC used 160,677 student-weeks to train 32,092 students in FY 2002, an increase

of 54,270 student-weeks, from FY 2001 levels. Of the total student-weeks, 90% and 8%

were attributed to the basic and advanced training programs, respectively.

TRAINING CONDUCTED - FY 2002

 STUDENTS STD-WEEKS ARSP* % OF TOTAL

STD-WEEK
21

Department of the Treasury

Federal Law Enforcement

Training Center

Management Discussion

and

Analysis

Fiscal Year 2002
22

Management

Discussion

and

Analysis
23

Management Discussion

and Analysis

INTRODUCTION

The FLETC is an interagency organization that provides law enforcement training to the

majority of Federal law enforcement officers. The FLETC, which began training operations

in 1970, also trains State, local, private sector security, and foreign law enforcement officers.

The number of agencies attending training and the number of students trained and studentweeks delivered have steadily increased over the FLETC’s 30 years history. The FLETC’s

training workload is expected to grow as a result of the September 11, 2001 terrorist

attack.

After beginning operations in Washington, DC, the FLETC was relocated to Glynco,

Georgia in 1975. Located on the southeast Georgia coast, the Glynco training center has

classrooms, dining and residence halls, and state-of-the-art facilities for firearms, physical,

driver, marine, and computer-based training activities. A similar, but smaller training

center is located in Artesia, New Mexico. Artesia, which opened in late 1989, accommodates

training principally for the Bureau of Indian Affairs and other law enforcement personnel

located in the western United States. It also can accommodate basic and advanced training

that cannot be conducted at Glynco because of space limitations. In FY 1991, a temporary

training center was established by the U.S. Border Patrol in Charleston, South Carolina

to accommodate training for the U.S. Border Patrol. In May 2001, the former Naval

Communications Detachment facility in Cheltenham, MD, was transferred to the FLETC

for conversion into a firearms and vehicle requalification training facility for federal law

enforcement officers in the metropolitan Washington, DC area.

Originally only a handful of agencies trained at the FLETC. However, there are now over

70 agencies that hold partner organization status (i.e., that have signed the FLETC

Memorandum of Understanding) and that train at the FLETC. Additionally, other Federal,

State and local organizations, along with foreign law enforcement officials, train at the

FLETC on a space-available basis. The growth in the number of agencies that train at the

FLETC is a testament to the success of the consolidated training concept and to the quality

and cost effectiveness of the training provided.

ORGANIZATION

The FLETC is a bureau of the Treasury Department and is headed by a Director and a

Deputy Director who are both appointed by the Secretary of the Treasury. Organizationally,

the FLETC is divided into five directorates led by Assistant Directors who report to the

FLETC Deputy Director. During FY 2002, the FLETC implemented organizational changes

in a continuing effort to better align personnel and operations with the training mission.

These changes will ensure that the FLETC continues to provide high quality and costeffective training for law enforcement professionals. The following Table of Organization

displays the entire organizational structure of the FLETC.
24

Management

Discussion

and

Analysis

Table of Organization

Department of the Treasury

Federal Law Enforcement Training Center

Federal Law Enforcement

Training Accreditation

(OAC) FLETA

Equal Employment

Opportunity Division

EEO

Legal Counsel

LC

Senior Associate Director (SES)

Washington Operations

WO

Public Affairs Office

PAO

Environmental &

Safety Division

EVS

Inspections Division

ISP

Assistant Director

Office of Compliance

OOC

Special Investigations &

Security Division

SISD

Critical Incident &

Stress Management

Program

CISM

Facilites Management

Division

FMD

Procurement

Division

PRO

Property Management

Division

PMD

Deputy Assistant Director

 Assets Management

Officer

AMO or DADAM

Human Resources

Division

HRD

Workforce

Development

Division WDD

Deputy Assistant Director

Human Capital Officer

HCO or DADHC

Assistant Director (SES)

Administration

ADM

Budget DIvision

BUD

Finance Division

FIN

Strategic Planning

and Analysis Division

SPA

Assistant Director

Chief Financial Officer

CFO

Distributed Learning

DLN

Training

Technology Support

TTS

Information Systems

Division

ISD

Assistant Director

Chief Information Officer

CIO

Behavioral Science

Division

BSD

Driver & Marine

Division

DMD

Enforcement

Operations Division

EOD

Enforcement

Techniques Division

ETD

Financial Fraud

Institute

FFI

Firearms

Division

FAD

FLETC Management

Institute

FMI

Internal

Accreditation

ACC

Legal Division

LGD

Physical Techniques

Division

PTD

Security Specialities

Division

SSD

Training Analysis

& Coordination

Division (TAC)

Training Management

Division

TMD

Deputy Assistant

Director (SES)

Training Operations

OFT or DADTO

Media Support

Division

MSD

Research &

Evaluation Division

RED

Student Services

Division

SSD

Deputy Assistant

Director

Training Support

OTS or DADTS

Assistant Director (SES)

Training

ADT

Artesia, NM

OAO

Charleston, SC

CHS

Cheltenham, MD

(Open 2004)

CHE

International

Programs Division

IPD

ILEA Gaborone,

Botswana

IAFR

ILEA San Jose,

Costa Rica

ISAM

Office of

State and Local

Law Enforcement Training

OSL

Assistant Director (SES)

Field Training

ADF

Deputy Director

(SES)

DD

Director

(SES)

DO
25

The following describes the elements in the Table of Organization:

Office of the Director: The Office of the Director administers the activities of the FLETC

and is responsible for accomplishing its mission. The Director provides overall direction

for the operation of the FLETC’s programs within the objective of ensuring effective,

efficient and economical administration. The Director develops, manages and directs the

FLETC’s programs. Also, the Director serves as the Executive Secretary of the FLETA

Board. Staffs attached to this office include the Senior Associate Director for Washington

Operations, Equal Employment Opportunity, Legal Counsel, Public Affairs, and the Office

of Compliance. These personnel aid the Director in accomplishing the mission of the

FLETC by providing coordination, public affairs, and other activities. The Office of

Compliance provides managerial oversight to the Environmental and Safety and Internal

Inspections Divisions.

• Senior Associate Director for Washington Operations: This Associate Director,

serving as the Director’s surrogate in Washington, DC, provides legislative support,

Treasury and OMB coordination and liaison with our partner organizations and the

FLETA Board.

Office of the Deputy Director: The Deputy Director assists the Director and acts, in his/

her behalf during absence, in administering the activities of the FLETC. The Deputy

Director provides the day-to-day overall direction of the five subordinate directorates for

the operation of the FLETC’s programs. Staffs attached to this office include the Special

Investigations and Security Division.

Assistant Director for Training: Consisting of two major subordinate offices, the Office

of Training Operations and Office of Training Support, this office administers all law

enforcement training activities at the FLETC headquarters.

• Office of Training Operations: This office directs faculty and staff and manages

programs in support of basic, advanced and specialized law enforcement training.

There are ten faculty elements within the Office of Training Operations.

- Behavioral Science Division: This division plans, develops, and presents formal

training courses and practical exercise applications related to the area of

interpersonal relations including interviewing, handling crisis situations,

professional ethics, conduct, sexual harassment, cultural sensitivity, and oral

and written communications.

- Driver and Marine Division: This division plans, develops, and presents formal

training courses and practical exercise applications related to the specialized

nature and use of vehicles and vessels, including search techniques and

operational procedures in a law enforcement environment. This division is also

responsible for the special use equipment and facilities assigned to these specific

training areas.
26

Management

Discussion

and

Analysis

- Enforcement Operations Division: This division plans, develops, and presents

formal training courses and practical exercise applications related to various

law enforcement operational procedures ranging from undercover and

surveillance activities to the execution of search warrants. This division also

provides the overall coordination for practical exercises.

- Enforcement Techniques Division: This division plans, develops, and presents

formal training courses and practical exercise applications related to various

criminalistic skills and knowledge including laboratory and crime scene activities.

- Financial Fraud Institute: This division plans, develops, and presents formal

training courses and practical exercise applications related to the investigation

of white collar crime violations, computer fraud, and microcomputer applications

in law enforcement. This division is also responsible for the special use equipment

and facilities assigned to this specific training area.

- Firearms Division: This division plans, develops, and presents formal training

courses and practical exercise applications related to the specialized and technical

nature of law enforcement armament and weaponry. This division is also

responsible for the special use equipment and facilities assigned, including the

armory, which provides FLETC-wide armament and weaponry security, repair,

and maintenance services.

- FLETC Management Institute: This division plans, develops, and presents

formal training courses and practical exercise applications related to managing

and supervising law enforcement operations.

- Legal Division: This division plans, develops, and presents formal training

courses and practical exercise applications related to the U.S. Constitution,

applicable case law, statutory provisions, criminal law and evidence procedures.

- Physical Techniques Division: This division plans, develops, and presents formal

training courses and practical exercise applications related to trauma management

and cardiopulmonary resuscitation, self defense, arrest techniques, physical

fitness, safety and water survival. This division is also responsible for special

use equipment and facilities assigned to the specific training area.

- Security Specialties Division: This division plans, develops, and presents formal

training courses and practical exercise applications related to anti-terrorism,

counter-terrorism, and physical security.

In addition to the faculty elements, the Training Management, Training Analysis and

Coordination, and Internal Accreditation Divisions are also assigned to the Office of
27

Training Operations. The Training Management Division provides logistical and

administrative assistance to the Office of Training, including coordinating advanced

training activities and support; serving as the repository for lesson plans, syllabi, class

reports, and student performance records; and developing optimal scheduling plans to

meet training requirements. The Training Analysis and Coordination Division develops

both long and short range plans for training operations, including scheduling of training

activities and facilities. The Internal Accreditation coordinates activities related to the

accreditation of FLETC training programs.

h Office of Training Support: This office provides services and materials that most

directly relate to the training mission. It consists of the following three divisions:

- Media Support Division: This division provides a full range of media and

graphic arts services for all basic and advanced training activities including

visual/media production, library services, and printing/reproduction.

- Research and Evaluation Division: This division provides institutional

research, consultation services, student evaluation and testing, and program

validation studies.

- Student Services Division: This division provides physical therapy, student

recreation, and contractual support for health services, lodging, meals, student

records maintenance, and other contractual services.

Assistant Director for Field Training: This office provides oversight of the non-federal

and non-headquarters functions, including state, local and international law enforcement

training activities and management of the FLETC’s training sites in New Mexico and

Maryland, and support for the temporary Border Patrol training facility in South Carolina.

- Office of Artesia Operations: This office administers and ensures the delivery

of law enforcement training programs at our training center in Artesia, New

Mexico. In addition to conducting training, this office manages all logistical

and support activities for Artesia, including various contractual services

providing lodging, food, maintenance and other support services.

- Office of State and Local Training: This office presents specialized program

offerings that enhance networking and cooperation between Federal, State,

and local law enforcement agencies. These programs vary in length from three

days to four weeks and have an average class size of 25 students. Additionally,

technical assistance is provided to State and local law enforcement agencies’

training initiatives.

- International Training Division: This division plans, develops, and presents

formal training courses, and practical exercise applications related to

international law enforcement training.
28

Management

Discussion

and

Analysis

- International Law Enforcement Academy (ILEA) Gaborone, Botswana:

This division provides management direction for the Botswana ILEA.

- International Law Enforcement Academy (ILEA) San Jose, Costa Rica:

This division provides management direction for San Jose, Costa Rica.

- Charleston, South Carolina Facility: This office provides support for the

temporary U. S. Border Patrol training facility.

- Office of Cheltenham, Maryland Operations: This office manages the site

preparation and facility construction and renovation of a firearms and driver

requalification training facility.

Assistant Director for Administration: This office plans, directs and coordinates the

FLETC’s administrative programs and objectives. It formulates policies and courses of

action for programs, which include staffing requirements, administrative services, human

resources, procurement, property management, and facilities management. The Office of

Administration is divided into two major offices, Asset Management and Human Capital.

h Office of Asset Management: This office integrates within a unified command

three divisions in the total asset acquisition, management, and disposal life cycle.

The office will be responsible for the total life impact of costs and risk exposures

associated with the reliability, availability, maintainability, performance, longevity,

and regulatory compliance of the FLETC’s physical assets.

- Facilities Management Division: This division develops and administers the

facilities management program, including maintenance, alterations, emergency

service, repairs and preventive maintenance for all buildings, grounds and

equipment. It also coordinates all in-house, GSA or contract construction/

alteration operations, and provides professional engineering consulting services

and assistance.

- Procurement Division: This division develops and administers the

procurement and contracting program at the FLETC.

- Property Management Division: This division plans and directs the overall

property management program including real property and non-expendable

personal property at the FLETC.

h Office of Human Capital: This office oversees two divisions, Human Resources

and Workforce Development, responsible for carrying out the objectives of the human

capital management strategy, assessing workforce characteristics and future needs

and aligning human resource policies and programs with FLETC’s mission, strategic

goals and performance outcomes.

- Human Resources Division: This Division develops and administers the

 personnel policies and programs at the FLETC.
29

- Workforce Development Division: This Division conducts workforce and

organizational assessments, workforce structuring and planning, studies and

analysis, external marketing and diversity programs and employee development

programs.

Assistant Director, Chief Information Officer: This office supports FLETC’s initiative

for expanding electronic government, coordinates the overall IT planning function,

facilitates better coordination of information technology expenditures and activities, and

ensures the compatibility of information technology equipment and service acquisitions.

- Information Systems Division: This division plans, organizes and coordinates

computer, telecommunication, and electronics information management

systems to better employ technology throughout the FLETC.

Chief Financial Officer: This office plans and directs the activities related to the FLETC’s

budget, financial systems and strategic plans. This office administers the integration of

planning and performance measurement activities with budget formulation and execution.

This office ensures the integrity of financial records and performs periodic reporting of

financial activities. There are three divisions within the Chief Financial Officer.

- Budget Division: This division prepares the FLETC budget submissions for

the Treasury, OMB, and Congressional levels.

- Finance Division: This division directs the financial management/accounting

system including accounts payable, accounts receivable, travel, and managerial/

financial reporting of the FLETC.

- Strategic Planning and Analysis Division: This division develops the FLETC

Strategic Plan, researches, develops, recommends, and documents policies and

procedures and conducts management analysis and measures performance

goals.

MISSION

The mission of the FLETC is to serve as the Federal government’s leader for and provider

of world-class law enforcement training. The FLETC prepares new and experienced law

enforcement professionals to fulfill their responsibilities in a safe manner and at the highest

level of proficiency. The FLETC also ensures that training is provided in the most costeffective manner by taking advantage of economies of scale available only from a

consolidated law enforcement training center.

VISION FOR THE FUTURE

The FLETC is committed to providing strong, collaborative leadership for law enforcement

training. Working as partners with client agencies including State, local and international

organizations, the FLETC will identify ways that research, training, and education can be
30

Management

Discussion

and

Analysis

used to protect our democratic institutions, ensure public safety, and preserve law and

order.

PERFORMANCE GOALS AND RESULTS

In order to be effective, training must be closely linked to law enforcement challenges,

issues, and needs. As law enforcement needs and techniques evolve, training must change

to keep pace. Law enforcement, as an integral part of society, is not immune from the

effects of accelerating and multi-faceted change that has become the hallmark of turn-ofthe-century America. This change involves the nature of crime itself, methods available

to law enforcement, and expectations of society and the political world.

Terrorism became a reality in the United States on September 11, 2001. Law enforcement

today is faced with violent extremists from a variety of foreign and domestic groups ranging

from racial supremacists, to fringe religious zealots, to environmental extremists. Many

of these groups utilize Internet technology to spread their message and recruit members,

as well as to gain access to information that facilitates violent acts. The willingness of a

wide variety of groups to use violence to further their cause has been amply demonstrated

and constitutes a major law enforcement issue. Increasing awareness of and sophisticated

use of computer technology has created an entirely new law enforcement arena. The

dramatic growth of the Internet has spawned a revolution in technology-related crime.

Financial frauds of all descriptions, money laundering, trafficking in pornography and

child molestation are only a few of the types of crimes facilitated by Internet communication.

The globalization of the economy and of information has made it possible to commit

crimes against American interests without ever setting foot in the United States. Federal

law enforcement today must have an awareness and understanding of the issues involved

when dealing with international criminal activity.

The nature of organized crime is also changing. Foreign organized crime has established

operations in major U.S. cities. Other organized groups have also emerged, including

juvenile gangs, motorcycle gangs, white supremacist and anti-government organizations.

These groups present serious law enforcement challenges including language barriers,

difficulty in penetrating their structure, their propensity for violence, and their ability to

coordinate their activities over large geographic areas.

New technology benefits law enforcement as well as presents new challenges. Law

enforcement agencies are able to quickly obtain large amounts of information from public

sources via the Internet and from increasingly sophisticated databases maintained by various

government agencies. Rapid identification of individuals, the ability to conduct discrete

surveillance and the ability to manage large amounts of evidentiary material with computer

assistance are only a few of the aids to law enforcement made possible by modern

technology. Future changes will likely include increased use by law enforcement personnel

of non-lethal weapons, enhanced requirements for collection and analysis of digital

evidence, and improved crisis management techniques. At the same time, these advances

create certain challenges. Law enforcement agencies must integrate these new methods

into their processes, develop appropriate policies for their use, and ensure that staff is

adequately trained.
31

Faced with real problems affecting the very fabric of society, the United States is relying

increasingly on law enforcement solutions. For example, the dramatic increase in the

number of law enforcement officers mandated by Congress, the enhanced funding for the

“war on drugs,” and significantly increased spending for counter-terrorist activities

exemplify the expectation on the part of policy makers that law enforcement officers are

increasingly being called on to act as “problem solvers,” taking on roles quite different

from those associated with traditional enforcement.

While being called on to address a widening array of social problems, law enforcement

agencies are also being held to heightened levels of scrutiny and accountability. In today’s

world an officer must ensure that his or her actions pass not only the test of legality, but

they must also pass the more subjective tests of appropriateness and propriety. The citizenry

expects law enforcement personnel to act professionally and react quickly to complaints

and lawsuits when this expectation is violated.

Given the changes cited above and the central role in ensuring that law enforcement

personnel are trained to address them, the FLETC’s challenge is to develop strategic

priorities that position the Center to adjust operations without disruption or diminishing

effectiveness. To accomplish its mission, the FLETC has identified and will address the

issues discussed below.

Mission Clarity

While the stated mission appears clear and straightforward, there has been some confusion

and disagreement over the FLETC’s exact role in the law enforcement arena as well as the

kind of training organization the Center should aspire to be. It is clear there is a mandate

to provide “Federal basic law enforcement training” and oversee facilities used by partner

organizations to conduct their training.

However, there are considerably different perspectives and opinions regarding the FLETC’s

role in providing advanced Federal, State and local, and international training and

conducting serious, focused, results-oriented law enforcement training research. The

strategic planning process has given the FLETC a forum for discussing these issues and

resulted in a broader and more comprehensive view of the Center’s leadership and training

role across all venues. While the FLETC is fully committed to fulfilling the requirement

to provide basic Federal law enforcement training, the Center must also meet the advanced

training needs of the constituent organizations.

Physical Capacity to Meet Training Demands

Over the last three years, the FLETC has had difficulty meeting demand for basic training,

particularly the U.S. Border Patrol, the largest partner organization in terms of studentweeks trained, which experienced a sudden and dramatic increase in the number of newly

hired recruits who needed to attend basic training. This trend is expected to continue as a

result of the September 11, 2001 terrorist attack. In addition, the need for in-service and

advanced training will continue to grow as well because many basic students who graduate

will return later for advanced training. Clearly, the FLETC will have to seek creative and
32

Management

Discussion

and

Analysis

flexible means to better predict and meet the capacity demands of all the partner

organizations.

Quality of Instruction

Since its inception, the FLETC has been committed to its students and to instructional

quality. The FLETC is fortunate to have a cadre of dedicated instructors who foster

innovation and are willing to go “beyond the call of duty” to provide quality training. In

addition, feedback from students and their supervisors indicates that the partner

organizations are generally very satisfied with the quality of the training. However, as

discussed earlier, the law enforcement arena is faced with a more complex and hostile

environment. The FLETC must be able to anticipate and respond to these needs by adopting

new instructional technologies, improving instructor training, and ensuring that instructors

have sufficient recent field experience.

Partnerships with Law Enforcement Organizations

Establishing cooperative partnerships with the partner organizations and other State, local,

and international law enforcement organizations is a key underlying principle of the strategy

to improve the quality, relevance, and timeliness of the FLETC’s training. Currently, the

FLETC has excellent relationships with the partner organizations, but has recently initiated

efforts to further improve communications with all its customers. Building on this base,

the FLETC will continue to expand efforts to better anticipate, understand and respond to

customer’s needs. The FLETC will need to work with partner organizations to develop

innovative viable solutions to problems as they arise.

The partner organizations identify the training criteria for their respective students in a

jointly sponsored Curriculum Review Conference (CRC). Also, the partner organizations

contribute to the training experience by providing members of their own agency staffs on

a temporary basis to augment the FLETC instructional force. In addition, the partner

organizations collaborate with the FLETC to share resources such as office space. Regularly

scheduled meetings between the partner organizations and the FLETC Director and senior

management provide a discussion forum for many issues of mutual interest. The partner

organizations work closely with the FLETC to highlight opportunities for improvement or

to resolve items of concern on an on-going basis.

Program Evaluation

The FLETC uses an architecture of linked Performance Evaluations. Training is evaluated

during CRC’s and Curriculum Development Conferences (CDC’s) wherein reviews are

conducted course by course and program by program. The continuous review, evaluation,

and validation are accomplished through a professional team within the FLETC Research

and Evaluation Division (RED). The results are published as documents that FLETC

management uses to derive training improvement and formulate training doctrine. Program

evaluations are a basis for decision making and a way of conducting business as a

professional training institution. In conjunction with the cognizant partner organizations,
33

the FLETC continually works to assess, validate, and improve each program, as described

above. Programs are constantly evolving and being refined in response to emerging issues

such as changes in applicable laws, mission emphasis, the partner organizations’

requirements, etc. As needed, formal CRC’s or CDC’s are conducted with the key program

participants, and programs are further updated and/or changed to ensure that they continue

to meet the law enforcement training requirements. For example, during FY 2002, the

“Mixed Basic Police Training Program” was reviewed and revised to include new or

upgraded anti-terrorism modules (i.e., Weapons of Mass Destruction).

Survey Instruments

Given the structure and function of the FLETC, survey instruments are prepared and

developed based upon the Modified Likert Scale, using contemporary survey methodology

with anecdotal comments captured for specificity and clarity. Performance measures,

such as Employee Satisfaction, will be assessed through survey instruments prepared,

developed and evaluated by the RED. The FLETC will work with the partner organizations

to develop a survey that is in concert with key business lines.

Strategic Direction

The FLETC continuously assesses, innovates and more clearly focuses its strategic approach

to the mission. The FLETC is keenly aware of the serious nature of the challenges faced

by law enforcement officers and commits to ensuring that the best training possible is

provided. Key aspects of the strategy will focus on three lines of business:

• Providing Comprehensive Training to Law Enforcement Officers That Fully Supports

the Mission of All Partner Organizations—adopting a more holistic view of training

that goes beyond the development of static skills and requires the student to make

decisions and perform under stress. The FLETC must also provide career-long

training that is responsive to the diverse and evolving needs of the law enforcement

community;

• Advancing Training Effectiveness Through Dramatic Improvements in Training

Development—establishing meaningful partnerships with the partner organizations

in order to anticipate and respond to their training needs and to ensure that course

content is up-to-date and is taught using the most innovative teaching approaches

and delivery methods; and

• Working Closely With All the Partner Organizations to Evaluate and Adjust Training

Scheduling and Availability—ensuring that partner organizations have access to

appropriate training and that their needs are met on a timely basis.

To fulfill its mission, the FLETC has developed a Strategic Plan that includes goals/

objectives. These goals/objectives, along with key trends, accomplishments and results

follow.
34

Management

Discussion

and

Analysis

SUMMARY OF FY 2002 PERFORMANCE MEASURES

FEDERAL LAW ENFORCEMENT TRAINING CENTER (FLETC)

BUDGET SUMMARY

FISCAL YEAR

Budget ($million)

FTE

1998

98

307

1999

110

529

2000

113

568

2001

153

581

2002

171

748

Treasury Objective: Provide High-Quality Training for Law Enforcement

Personnel

Percentage of training classes held within 15 days of requested start date

Percentage of satisfaction on the Student Quality of Training Survey

Percentage of satisfaction on the Partner Organization Survey

Percentage of satisfaction on the Student Quality of Services Survey

Cost of student week of training ($)

Percentage of satisfaction on Employees Satisfaction Survey

Percentage of satisfaction on the Student Quality of Training Survey

Percentage of satisfaction on the Partner Organization Survey

Percentage of satisfaction on the Student Quality of Services Survey

Percentage of satisfaction on the Employees Satisfaction Survey

85.0

90.0

85.0

90.0

927

70.0

95.9

99.3

97.5

99.7

803

82.0

FY 2002

Plan Actual

FY 2002

Plan Actual

FY 2002

Plan Actual

90.0

85.0

90.0

99.3

97.5

99.7

70.0 82.0

Treasury Objective: Improve Customer Satisfaction

Treasury Objective: Improve Employee Satisfaction
35

FLETC Objective: Enhance Basic, Advanced, and In-Service Training Programs

to Meet Changing Needs and Increasing Demands

Key Trends

Since inception, the FLETC experienced the biggest increase in student load in FY 2002.

The increase in the number of students receiving basic training in FY 2002 substantiated

the Administration and Congressional initiatives to counter terrorism and curb crime,

especially in the areas of immigration, border security, drug control and interdiction, and

firearms enforcement. The number of law enforcement officers requiring training is

expected to continue to increase in the future. The projections received from the partner

organizations indicate 53,564 students and 48,769 students for FY 2003 and FY 2004,

respectively.

Treasury Programs

The mission of the FLETC is to serve as the Federal Government’s leader for and provider

of world-class law enforcement training. The FLETC prepares new and experienced law

enforcement professionals to fulfill their responsibilities in a safe manner and at the highest

level of proficiency. The FLETC accomplishes its mission by utilizing law enforcement

and training experts; providing facilities, support services, and technical assistance;

conducting law enforcement research and development; and sharing law enforcement

technology. Continuous review and revision of training programs helps to ensure that law

enforcement officers receive training that keeps pace with the changing criminal and law

enforcement environment. The FLETC also ensures that training is provided in the most

cost-effective manner by taking advantage of economies of scale available only from a

consolidated law enforcement training organization.

To accomplish its mission, the FLETC must balance the competing needs and demands of

its 77 partner organizations. The FLETC must also be flexible enough to respond to

changes resulting from budget decisions, fluctuations in training demands, and variations

in recruitment within the partner organizations.

Number of Students Trained

CATEGORY FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Basic 10,605 9,005 8,635 10,735 19,881

Advanced 11,038 11,708 10,985 11,525 8,975

State/Local 3,494 3,860 3,383 3,151 3,066

International 625 595 323 278 170

Total 25,762 25,168 23,326 25,689 32,092
36

Management

Discussion

and

Analysis

FY 2002 Accomplishments and Results

In FY 2002, the FLETC trained a total of 32,092 students, a 25% increase from FY 2001

levels. This included meeting all basic training for 19,881 law enforcement officers from

partner organizations. Of the total students trained in FY 2002, 8,975 students received

advanced training. Also, 3,066 State and local and 170 international

law enforcement officers were trained.

During FY 2002, the FLETC implemented training initiatives that

addressed the post-9/11 training needs of the partner organizations

and improved the overall effectiveness of training. The Advanced

Money Laundering Investigations training module and Security

Screener train-the-trainer training programs are examples of curricula

that the FLETC had developed and refined in FY 2002. Also, the

FLETC installed a state-of-the-art live-scan Fingerprint System,

which enables instructors to create an Automated Fingerprint

Identification System (AFIS) for the training programs, thus, allowing

the Center to incorporate current identification into its laboratories

and practical exercises. Students are able to print and identify roleplayers/suspects using the same AFIS currently in use at many field

locations throughout the United States and the world.

Following is a report on the performance targets in the Department of the Treasury’s

FY 2002 Performance Plan related to this objective:

Achieve 85% of

Requested Classes Held

Within 15 Days of

Requested Date

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: The percentage of classes requested by the agencies that began

within 15 days of the start date requested by the agency. The scale is 0-100%.

Explanation of Shortfall: (If applicable) N/A

 - - - - 95.9%

Federal Law Enforcement Training Center Performance Goals:

- Achieve 85% of requested classes held within 15 days of requested date

- Achieve 90% on Student Quality of Training Survey

- Achieve 85% on Partner Organization satisfaction survey

- Keep cost per student-week of training to $927
37

Achieve 90% Rating on

StudentQuality of

Training Survey

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: Training program students are surveyed to obtain their views

on the overall quality of training received. The scale is 0-100%.

Explanation of Shortfall: (If applicable) N/A

97.9% 99.7% 98.6% 99.9% 99.3%

Achieve 85% Rating on

Partner Organizations

Satisfaction Survey

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: Partner Organizations responses to two specific qualitative

statements on “A productive, proactive partnership exists between FLETC and my

agency” and “FLETC is a true partner in providing solutions to law enforcement

problems.” The scale is 0-100%.

Explanation of Shortfall: (If applicable) N/A

- - - 97.5% 97.5%

97.9 99.7 98.6 99.9 99.3

0

20

40

60

80

100

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Actual Actual Actual Actual Actual

QUALITY OF TRAINING SURVEY

Percent
38

Management

Discussion

and

Analysis

Keep Cost per

Student -Week of

Training to $927

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: The cost is calculated taking the total net cost of

operation divided by the number of student-weeks of training.

Explanation of Shortfall: (If applicable) N/A

 - - - - $803

FLETC Objective: Develop and Operate State-of-the-Art Facilities and Systems

 Responsive to Interagency Training Needs.

Key Trends

In order to comply with a Congressional mandate to close the Charleston, South Carolina

training site by FY 2004, the FLETC has a Five-year Construction Plan that will provide

the facilities required to increase the student throughput to accommodate this training

workload and the projected workload of the 77 partner organizations. The FLETC is

taking a leadership role in seeking creative solutions to expand access and availability.

New ideas for distributed learning are continuously explored. Construction is continuing

on facilities that will provide a training environment that is compatible with the actual

working environment of law enforcement officers and that are equipped with the latest

technology.

The FLETC is planning a Student Network, which is a predominantly wireless network

that will serve the Glynco and Artesia campuses. It will provide students with network

and Internet access at virtually any location on the campus. The Student Network will

consist of servers, routers,

switches, and other equipment

necessary to support the basic

infrastructure of the network,

while classroom buildings and

dormitories will be outfitted

with Wireless Access Points to

give students the necessary

access. Other servers will

eventually be implemented to

support on-line training

materials, tutorials, distributed

learning, etc., that instructors,

students and agencies deem

necessary to enhance training.

E-mail servers will provide

38
39

another tool for instructor to student and student to student communication access. Internet

access will furnish a necessary research tool for students during non-duty hours, when

library access to the Internet is not available.

Finally, the FLETC continues to provide leadership and direction in the development of

an accreditation process that would lead to the establishment of professional standards for

accrediting Federal law enforcement training organizations.

Treasury Programs

The FLETC began training students in 1970 with the mission of providing high quality

law enforcement training programs in state-of-the-art facilities. In recent years, the FLETC

has become recognized in the law enforcement community as the benchmark of excellence

in law enforcement training. Since 1970, the number of Federal organizations that train at

the FLETC has grown from 18 to 77.

One of the FLETC’s strategic goals is to significantly expand the access to and availability

of quality law enforcement training. One objective toward achieving this goal is to provide

sufficient capacity to meet the training requirements of the partner organizations. In

addition, the FLETC strives to meet the training needs of law enforcement organizations

that would otherwise be unable to use the FLETC because of capacity constraints or cost

considerations and to establish professional standards for accrediting Federal law

enforcement training organizations. Further, the FLETC’s goal is to effectively organize,

develop, and lead its personnel in support of the Center’s mission and to continually work

toward strengthening its partnership among the partner agencies. The FLETC also carries

out research in the various aspects of law enforcement training.

The voluntary affiliation of 77 partner organizations requires that the FLETC continually

balance competing needs and demands among these organizations. The FLETC must

also be flexible enough to

respond to changes resulting

from shifting priorities, budget

decisions, fluctuations in training

demands, and variations in

recruitment within the partner

organizations.

In order to ensure that the FLETC

facilities are state-of-the-art and

meet the needs of its customers,

the FLETC conducts a Student

Quality of Services Survey. This

survey assesses the quality of the

facilities and services that the

FLETC provides the students

39
40

Management

Discussion

and

Analysis

attending training, such as classrooms, dormitories, and dining facilities. It assists the

FLETC in the continuing review of these facilities and services. In addition to surveying

its students, the FLETC continually reviews and revises the Facilities Master Plan to

ensure the plan meets and is responsive to training requirements. The review takes into

consideration the needs of the customers and the FLETC.

FY 2002 Accomplishments and Results

As part of the Master Plan process, the FLETC continued to construct new facilities at

Glynco and Artesia in FY 2002, as well as to renovate and upgrade existing infrastructure.

At Glynco, Georgia, the FLETC entered into ‘build-lease” arrangement for three hoteltype student housing adjacent to the Center to alleviate the shortage of student lodging

accommodations. To meet the increase of students, the FLETC had been housing and

transporting the students off-center at area hotels. The FLETC obtained a commitment

from a national airline to upgrade its air transportation service to Brunswick, Georgia,

which tremendously reduced the travel time and improved the student commute to and

from FLETC. At Artesia, New Mexico, the construction of two new indoor/outdoor

firearms ranges and a new 286-person dormitory were completed in FY 2002. Also,

40
41

numerous expansion and renovation projects were completed to accommodate the increased

demand for training.

At Cheltenham, Maryland the $3.6 million rehabilitation project of the U.S Capitol Police

Academy Building was completed with the re-dedication ceremony witnessed by

Washington, DC area dignitaries on September 30, 2002. The 30,285 square feet state-ofthe-art facility contains five large classrooms, a defensive tactics classroom, seven breakout

rooms, a media center, a gymnasium and 23 offices for instructors. Also, ground breaking

for a 151,605 square feet indoor firing range was held in July 2002. The Cheltenham

training facility is projected to be fully operational in FY 2004.

Finally, the FLETC continues to facilitate the development and implementation of a federal

law enforcement training accreditation model. The accreditation process recognizes the

value of standardized, consistent, and high quality federal law enforcement training. In

March 2002, 53 representatives from 20 different federal law enforcement agencies attended

the fifth Task Force conference for the FLETA process. The FLETA will provide assurance

to the public that all Federal law enforcement officers and agents are properly and effectively

trained.

41
42

Management

Discussion

and

Analysis

Following is a report on the performance targets in Treasury’s FY 2002 Performance

Plan related to this objective:

Federal Law Enforcement Training Center Performance Goal:

- Achieve 90% on Student Quality of Services Survey.

- Achieve 70% Rating on Employee Satisfaction Survey

Achieve 90% Rating on

Student Quality of Services

Survey

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: Students in basic and advanced training programs

complete surveys on the quality of administrative support services. The scale of the

survey is 0-100%.

Note: During FY 1998 this was measured on a scale from 1-5 and a weighted

mean response was used to measure overall quality. In FY 1998, the actual rating

was 4.5.

Explanation of Shortfall: (If applicable) N/A

 - 99.0% 99.5% 99.6% 99.7%

QUALITY OF SERVICE SURVEY

99.0 99.5 99.6 99.7

0

20

40

60

80

100

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Actual Actual Actual Actual Actual

Percent
43

Achieve 70% on Employee

Satisfaction Survey

FY 1998

Actual

FY 1999

Actual

FY 2000

Actual

FY 2002

Actual

FY 2001

Actual

Explanation of Measure: The percentage of employees that agree they are satisfied

with the overall work environment at the FLETC. The scale of the survey is 0-100%.

Explanation of Shortfall: (If applicable) N/A

- - - 78.0% 82.0%

Definition of Performance Measures and Validation of Data

• Performance Measure: Achieve 90% Rating on Student Quality of Training Survey

Definition: This measure deals with the quality of law enforcement training. Basic and

advanced training program students are surveyed to obtain their views as to the overall

quality of training received at the FLETC. The information obtained from this survey

assists the FLETC in the continuing review of program curricula. The scale is 0-100%

and the FLETC goal is to obtain an overall rating of 90%.

Validation: Students in basic and advanced training programs complete surveys on the

quality of training, including instructors, program material, equipment, etc. Individual

programs and cumulative reports are generated. From this data, trends can be identified

and areas that are consistently rated low can be reviewed and corrective action can be

taken.

Data Accuracy: Reasonable.

• Performance Measure: Keep Unit Cost of Basic Student-week of Training to $927

Definition: This measure deals with the cost per student-week of training. Data is captured

through the automated financial system (costs) and the Student Information System

(student-weeks trained).

Validation: The cost per week is calculated by taking the actual total net cost of operation

divided by the number of student-weeks of training.

Data Accuracy: Reasonable.

• Performance Measure: Achieve 90% Rating on Student Quality of Services Survey
44

Management

Discussion

and

Analysis

Definition: This measure assesses the quality of the administrative and support services

that the FLETC provides to the students. The result from this survey assists the FLETC in

the continuing review of its administrative and support services. The scale is 0-100% and

the FLETC goal is to obtain an overall rating of 90%.

Validation: Students in basic and advanced training programs complete surveys on the

quality of administrative support services, including cafeteria, dormitory, janitorial, etc.

Individual programs and cumulative reports are generated. From this data, trends can be

identified and areas that are consistently rated low can be reviewed and corrective actions

taken.

Data Accuracy: Reasonable.

• Performance Measure: Achieve 85% Rating on the Partner Organization Satisfaction

Survey

Definition: This measure deals with the partner organizations continued satisfaction with

the FLETC training curricula that is critical to retaining the consolidated training concept

for federal law enforcement. The participating organizations respond to two specific

qualitative statements dealing with the extent of partnership between the FLETC and

agencies in solving law enforcement training problems.

Validation: The partner organizations complete surveys regarding their satisfaction with

the FLETC training services. The FLETC also conducts verbal follow-up sessions with

partner organizations to confirm and discuss their responses. Other formal and informal

input from the partner organizations are used to validate the survey results.

Data Accuracy: Reasonable

• Performance Measure: Achieve 85% of the Requested Classes Held within 15 Days of

the Requested Start Date.

Definition: This measure assesses the percentage of classes that have been requested by

the agencies that begin within 15 days of the start date requested by the agency. To

calculate this percentage, the number of classes beginning within 15 days of the agency

requested start date is divided by the total number of classes requested. If the agency

requests that the class begin within a window rather than on a specific date, then that class

begins on time by definition and is included in the numerator of this percentage. Classes

not conducted at a FLETC facility are excluded. It is important that the FLETC management

and staff are aware of the level of responsiveness to our customers. The need to reschedule

or cancel a training class because it can not be accommodated within a reasonable window

(i.e., 15 days) of the requested start date has a domino effect that is potentially detrimental

to the requesting agency and to the FLETC. The number of agency students trained may

be reduced and the FLETC capacity may be under-utilized. The FLETC attempts to

schedule all requested classes in a timely manner.
45

Validation: The data are captured as part of the FLETC student information system. The

FLETC verifies the data through periodic manual reviews.

Data Accuracy: Reasonable

• Performance Measure: Achieve 70% Rating on the Employee Satisfaction Survey (ESS)

Definition: The percentage of employees that agree they are satisfied with the overall

work environment at the FLETC. A survey is distributed to all FLETC employees that

consists of 21 questions regarding the quality and quantity of services and programs

provided by the FLETC to employees. The ESS provides a formal means for FLETC

management to gauge the level of satisfaction of its employees with the working

environment and identifies opportunities for improvements as well as highlighting

successful policies and programs.

Validation: The FLETC staffs complete surveys regarding their employment at the FLETC.

The process uses contemporary survey methods similar to those used by the military services

and other major training organizations. Results from other formal and informal sources of

employee input, such as interviews, employee forums, complaints, comments, etc., are

used on an on-going basis to validate the survey results.

Data Accuracy: Reasonable

FUTURE EFFECTS ON EXISTING, CURRENTLY KNOWN DEMANDS,

RISKS, UNCERTAINTIES, EVENTS, CONDITIONS AND TRENDS

In the aftermath of the September 11, 2001 terrorist attacks, the FLETC has visibly

emerged as a focal point for training over 30 thousand law enforcement officers in FY

2002. Upon graduation, these officers and agents are or will be in the forefront of

protecting the United States from similar incidents. The hiring of new law

enforcement officers as part of the 77 partner organizations’ strategy to deal with the

heightened security translated to an unprecedented growth and new challenges for the

FLETC. The following chart summarizes the projections for the next two fiscal years:

 FY 2003 FY 2004

Category Students Student-Weeks Students Student-Weeks

Basic 32,760 229,985 25,629 168,593

Advanced 16,523 28,870 18,038 29,977

State, Local, Int’l & Export 4,281 4,573 5,102 5,090

Total 53,564 263,428 48,769 203,660
46

FINANCIAL RESOURCES AND THEIR USES

Budgetary Resources

Management

Discussion

and

Analysis

The FLETC has diligently planned and pulled resources together to respond to the additional

training requirements. The limiting factors continue to be facility constraints, instructor

staffing and funding for the direct costs of the additional training.

The FLETC continues to execute its rigorous construction and renovation program to

increase facility capacity. There are over 40 pending construction and renovation projects

in progress. The completion of two new firearms ranges, a 286-person dormitory, and the

Physical Techniques Building in Artesia, New Mexico helped accommodate additional

on-site training. Also, the FLETC has entered into ‘build-lease” arrangements in an attempt

to alleviate the student lodging shortage in Glynco, Georgia. To accommodate the newlyformed TSA, the FLETC is purchasing a 20-acre site next to the Center location in Glynco,

Georgia. The site will become the on-site training headquarters for the agency academy

at Glynco, Georgia.

Throughout its history, the FLETC has experienced difficulty recruiting and retaining law

enforcement instructors with extensive Federal Criminal Investigator (GS-1811) experience.

The FLETC requested for and was granted temporary authority from the Department of

the Treasury and the Office of Personnel Management to utilize the Waiver of Dual

Compensation Reduction to hire retired experienced Federal Criminal Investigators to

augment the existing staff. This temporary authority allowed the FLETC to re-employ

instructors for a period of one year. Through legislative language included in the FY 2002

emergency appropriations bill that was enacted in August 2002, the FLETC was granted

a salary offset waiver authority for up to 250 rehired annuitants for a five-year appointing

period. The enactment of this language will greatly improve the FLETC’s hiring flexibility

and significantly enhance the Center’s ability to meet most emergency training demands

from the partner organizations.

Based upon our best assessment of the training needs that are being communicated by

partner organizations, the FLETC has requested additional funding for the direct cost of

the basic training and expanded authority to commensurately increase the number of

approved full-time equivalent positions to accommodate the additional training. The

FLETC expects that funding for the direct cost of basic training required in the future by

the partner organizations will continue to be appropriated even with the realignment of

the FLETC to the Department of Homeland Security. The FLETC will continue to rely on

the commitment, versatility and professionalism of the FLETC staff who stay focused on

the FLETC mission of providing world-class training to law enforcement officers.

The FLETC’s budgetary resources continue to grow. Budgetary resources consist of the

budget authority or annual appropriation, reimbursement for training services, and other
47

98

35

47

110

38

55

113

21

41

153

37

44

171

59

65

0

50

100

150

200

250

300

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Budget Authority Reimbursement Other Resources

resources comprised of mostly carryover funds for multi-year and no-year appropriations.

The 26 percent or $60 million increase in FY 2002 budgetary resources is attributed to the

additional appropriation and proportionate increase in earned reimbursement for training

from partner organizations.

BUDGETARY RESOURCES

117K

98K 97K

161K

106K

26K 25K 23K 26K

32K

$107M

$89M $88M $93M

$129M

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

N o. of S tu de nt-W e e k s N o. of S tuden ts Tr ain ed Net Cost of O peration

The FY 2002 net cost of operation increased by 22 percent or $22 million from last fiscal

year. The FLETC experienced the biggest increase in student load since its inception.

The number of students trained and number of student-weeks increased by 25% or six

thousand students and 52% or 55 thousand student-weeks, respectively, from FY 2001.

The average length of training per student was five weeks at an average cost of $4 thousand

per student.

NET COST OF OPERATION AND NUMBER OF

STUDENTS AND STUDENT-WEEKS

Net Cost of Operations Millions
48

Management

Discussion

and

Analysis

Category of Funds

Of the $295 million total budgetary resources in FY 2002, 36 percent or $106 million was earmarked

for salaries and expenses; 29 percent of $86 million for construction and renovation; 35 percent or

$103 million for training.

FY 2001 TOTAL $237 MILLION

FY 2002 TOTAL $294.7 MILLION

S&E

36%

Training

35%

Construction

29%

S&E

40%

Training

26%

Construction

34%
49

Program Expenses

Of the $184 million gross program expenses in FY 2002, 38 percent or $71 million was spent on

personnel compensation and benefits, an increase of 29 percent from last year primarily for additional

law enforcement instructors. Also, 36 percent or $67 million was spent on services to support the

additional training during FY 2002, an increase of 63 percent from the previous year.

FY 2002 PROGRAM EXPENSES

Personnel

Costs

38%

Miscellaneous

4%

Depreciation

and

Maintenance

8%

Travel

and

Transportation

3%

Equipment

(non-cap)

7%

Supplies and Materials

Personnel 7%

Costs

41%

Miscellaneous

6%

Depreciation

and

Maintenance

9%

Travel

and

Transportation

4%

Equipment

(non-cap)

4%

Supplies and Materials

4%

Services

36%

Services

29%

FY 2001 PROGRAM EXPENSES
50

Management

Discussion

and

Analysis

Assets

As of September 30, 2002, the value of the FLETC’s total assets is $419 million, an

increase of 37 percent or $114 million from FY 2001, attributed to the increase in the

property, plant and equipment.

TOTAL ASSETS

TOTAL ASSETS

184

207

239

305

419

0

150

300

450

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Millions

Fund Balance

28%

Accounts Receivable

2%

Operating Inventory

2%

Property, Plant

and Equipment

68%
51

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

Property, Plant, and Equipment

The value of the FLETC’s property, plant and equipment (PP&E) is $283 million as of

September 30, 2002, an increase of 62 percent or $108 million from FY 2001. The

completion of new buildings and facility renovation and valuation of capital leases comprise

the increase in the PP&E account.

78

96

137

175

283

0

50

100

150

200

250

300

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Millions

Building

59%

Equipment

2%

Structures

5%

Land

1%

Construction

in Progress

24%

Capital Lease

24%
52

Management

Discussion

and

Analysis

EXCHANGE REVENUE

KEY FINANCIAL INDICATORS

Exchange Revenue

Pursuant to the OMB/Treasury/FLETC funding policy that was approved in FY 1987, the

FLETC finances the direct cost of basic training while the partner organizations pay for

the cost of travel, en route per diem and reimburse the FLETC for actual costs of meals

and lodging. The direct cost of basic training includes items such as the following:

• utilities/janitorial services for classrooms

• printed materials

• role players

• support contracts

• ammunition

• materials and supplies

In addition to the travel, meal and lodging costs, the partner organizations reimburse the

FLETC for any variable costs incurred in the advanced training courses. State and local

agencies normally pay for the actual costs of training.

For FY 2002, the total exchange revenue amounted to $55 million of which $54 million

and $1 million were derived from Federal, State and local agencies, respectively.

21

38

10

16

1 1

0

5

10

15

20

25

30

35

40

Millions

Federal Treasury Public

2001 2002
53

Sources of Program Costs

In carrying out its mission of providing world-class law enforcement training programs,

the FLETC incurred costs for materials and services that were available commercially or

from other Federal

agencies. In FY

2002, the program

costs totaled $161

million, of which

$145 million or

90% and $16

million or 10%

were procured from

public entities and

Federal agencies,

respectively.

117

145

18

14 1 2

0

20

40

60

80

100

120

140

160

Millions

Public Federal T reasury

2001 2002

FINANCIAL PERFORMANCE GOALS

The FLETC proactively updates its financial management vision and goals. It established

financial performance measures designed to assess progress in accompanying its

management objectives.

Goal: Earn an unqualified opinion on FLETC

Financial Statements

Measured Results: The FLETC earned an

unqualified opinion on its FY 2002 Financial

Statements. By receiving its third consecutive

unqualified opinion, the FLETC clearly

demonstrated the financial integrity and prudent

stewardship of taxpayers’ money.

Goal: Increase number of Automated Clearing

House (ACH) Vendor Payments

Measured Results: ACH vendor payments have

increased by 8% in FY 2002. ACH is an expeditious, cost-effective payment method that

enhances accuracy and customer service to vendors.

74%

87%

95%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% ACH Vendor Payments

2000 2001 2002

PROGRAM COSTS

ACH VENDOR PAYMENTS
54

Department of

Federal Law Enforcem
55

f the Treasury

ment Training Center

Federal Managers’

Financial Integrity Act

Fiscal Year 2002

Department of the Treasury

Federal Law Enforcement

Training Center
56

Federal Managers’ Financial Integrity Act (FMFIA) Summary

Based upon the results of its annual

assessment process the Federal Law

Enforcement Training Center (FLETC)

can provide reasonable assurance that

its systems of management and

administrative control, taken as a

whole, achieve the objectives of

Section 2 of the Federal Managers’

Financial Integrity Act (FMFIA). The

FLETC can provide reasonable

assurance that its accounting and

financial systems generally conform

with the Comptroller Generals’

principles, standards and related

requirements and achieve the

objectives of Section 4 of the FMFIA.

Connie L. Patrick

Director

Federal Law Enforcement Training Center

ANNUAL ASSURANCE

STATEMENT FOR FY 2002

FMFIA

Section

(2,4A or 4F)

2

Bureau and

Control

Number

ID Number

FLE 911 (#2)

Title of Material

Weakness:

Environmental

Problem

Description of

Material Weakness:

An environmental

problem exists at the

FLETC Glynco,

Georgia outdoor

firearms ranges

Validation Process Used / Results

Achieved

The Department of the Treasury’s OIG and

the CFO have tentatively approved the

Center decision to reclassify the material

weakness to a second-tier issue based on a

documentation package provided by the

FLETC. The package contained a written

reassessment by the FLETC management

and concurrence by the State of Georgia’s

Environmental Protection Division

Date Closed

9/30/02

Section I: Open Material Weaknesses as of 9/30/02 - None Reported

Section II: The List of Material Weaknesses Closed During FY 2002

Federal

Managers’

Financial Integrity

Act

FLETC management controls are

established in accordance with standards

required by Section 2 of the Federal

Managers’ Financial Integrity Act (FMFIA)

and provide reasonable assurance that: (1)

Our programs are achieving their intended

results; (2) resources are used in a manner

that is consistent with our mission; (3) assets

are protected from fraud, abuse, waste, and

mismanagement; (4) laws and regulations

are followed; (5) continuity of operations

planning in critical areas is sufficient to

reduce risk to reasonable levels; (6) controls

are sufficient to minimize any improper or

erroneous payments; and (7) performance

information is reliable. There is reasonable

assurance that FLETC accounting and

financial systems conform with

Government wide financial information

standards as well as financial system

functional standards for FY 2002 in

accordance with section 4 of FMFIA. In

regards to the Federal Financial

Management Improvement Act (FFMIA) of

1996, the auditor reported that the FLETC

did not comply with two Federal financial

management requirements and accounting

standards. Specifically, the FLETC has not

performed risk assessments of its financial

management system as required by GISRA

and OMB Circular A-127. Also, the FLETC

did not perform adequate capital planning

as required by OMB Circular A-11 prior to

consummating three 20-year non-cancelable

leases for the construction and operation of

dormitories. The FLETC disagrees with the

auditor’s conclusion that capital planning

was insufficient. The matter is under review

by OMB.
57

Description of

Reportable

Conditions /

Second Tier

Issues:

An environmental

problem exists at

the four FLETC

Glynco, Georgia

outdoor firearms

dirt berm ranges

The FLETC

Information

Technology

Program (system,

equipment,

staffing) is

outmoded and

increasingly

inadequate to

meet the needs of

a rapidly evolving

residential - style

law enforcement

training facility,

especially in the

area of systems

security. Futher,

the FLETC IT

security program

is not in

compliance with

various laws,

regulations,

standards, and

other IT security

enhancements.

Source:

Risk

Assessment of

the

Environmental

Program at

the FLETC

Inspection of

the ISD by the

FLETC’s

Inspection

Division,

NSA’s

Information

Systems

Security

Assessment

Report, and a

risk

assessment

conducted

under the

FMFIA.

Title of

Reportable

Conditions /

Second Tier

Issues:

Environmental

Problems

Shortcomings

in the

operations of

FLETC’s

Information

Technology

Program,

particularly in

the area of

security over

IT systems

and programs.

General

Actions Being

Taken:

Complete the

environmental

restoration of

the area and

reconstruction

of the outdoor

firearms dirt

berm ranges.

The FLETC is

actively

pursuing a far

reaching IT

modernization

program. The

FLETC is also

currently

involved in

recruiting an

IT Security

Program,

updating

technologies,

and

implementing

new

technologies

and

capabilities

that will

enhance IT

security.

Remarks:

Condition was

reported as a

material

weakness

through Fiscal

Year 2001.

Section III: Open Reportable Conditions Second Tiers as of 9/30/02 - None Reported
58
59

Auditor’s Report

Fiscal Years

2002 and 2001

Department of the Treasury

Federal Law Enforcement

Training Center
60

Auditor’s Report

Fiscal Years 2002

and 2001

Carmichael

Brasher Tuvell

C e r t i f i e d P u b l i c A c c o u n t a n t s & Company

 678-443-9200

Facsimile: 678-443-9001

www.cbtcpa.com

REPORT OF INDEPENDENT AUDITORS

To: Connie Patrick 

 Director of the Federal Law Enforcement Training Center 

We have audited the accompanying balance sheets of the Federal Law Enforcement Training 

Center (FLETC) as of September 30, 2002 and 2001, and the related statements of net cost, 

changes in net position, budgetary resources, financing and custodial activity for the years then 

ended. These financial statements are the responsibility of FLETC’s management. Our 

responsibility is to express an opinion on these 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, as amended, issued by the Comptroller General of the United States, and Office of

Management and Budget (OMB) Bulletin No. 01-02, Audit Requirements for Federal Financial

Statements. Those standards require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. An audit 

includes examining, on a test basis, evidence supporting the amounts and disclosures in the 

financial statements. An audit also includes assessing the accounting principles used and 

significant estimates made by management, as well as evaluating the overall financial statement 

presentation. We believe that our audits provide a reasonable basis for our opinion. 

In our opinion, the financial statements appearing on pages 65 through 85 of this report present 

fairly, in all material respects, the financial position of FLETC as of September 30, 2002 and 

2001, and its net costs of operation, changes in net position, budgetary resources, financing and 

custodial activity for the years then ended in conformity with accounting principles generally 

accepted in the United States of America. 

Our audits were conducted for the purpose of expressing an opinion on the financial statements 

referred to in the first paragraph. The information in the Management’s Discussion and Analysis 

(MD&A) is not a required part of FLETC’s financial statements, but is considered supplementary 

information required by OMB Bulletin No. 01-09, Form and Content of Agency Financial

Statements. Such information has not been subjected to the auditing procedures applied in the 

audits of the financial statements, and accordingly, we express no opinion on it. 

October 24, 2002 

Atlanta, Georgia
61

AUDITORS’ REPORT ON INTERNAL CONTROL

To: Connie Patrick

 Director of the Federal Law Enforcement Training Center

We audited the financial statements of the Federal Law Enforcement Training Center (FLETC)

as of and for the years ended September 30, 2002 and 2001, and have issued our report thereon

dated October 24, 2002. 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, as amended, issued by the Comptroller General of the United

States, and OMB Bulletin No. 01-02, Audit Requirements for Federal Financial Statements.

In planning and performing our audits of FLETC, we considered its internal control over financial

reporting by obtaining an understanding of FLETC’s internal control, determined whether internal

controls had been placed in operation, assessed control risk, and performed tests of controls in

order to determine our auditing procedures for the purposes of expressing an opinion on the

financial statements. We limited our internal control testing to those controls necessary to achieve

the objectives described in OMB Bulletin No. 01-02. We did not test all internal controls relevant

to operating objectives as broadly defined by the Federal Managers’ Financial Integrity Act of

1982, such as those controls relevant to ensuring efficient operations. The objective of our

audits was not to provide an opinion on internal control. Consequently, we do not provide

assurance on internal control.

Our consideration of the internal control over financial reporting would not necessarily disclose

all matters in the internal control over financial reporting that might be reportable conditions.

Under standards issued by the American Institute of Certified Public Accountants, reportable

conditions are matters coming to our attention relating to significant deficiencies in the design

or operation of the internal control that, in our judgment, could adversely affect the agency’s

ability to record, process, summarize, and report financial data consistent with the assertions by

management in the financial statements. Material weaknesses are reportable conditions in which

the design or operation of one or more of the internal control components does not reduce to a

relatively low level the risk that misstatements in amounts that would be material in relation to

the financial statements being audited may occur and not be detected within a timely period by

employees in the normal course of performing their assigned functions.

Carmichael

Brasher Tuvell

 & Company

678-443-9200

Facsimile: 678-443-9001

www.cbtcpa.com

C e r t i f i e d P u b l i c A c c o u n t a n t s

1647 Mount Vernon Road, Dunwoody Exchange, Atlanta, Georgia 30338
62

Auditor’s Report

Fiscal Years 2002

and 2001

Because of inherent limitations in internal controls, misstatements, losses or noncompliance may

nevertheless occur and not be detected. However, we noted certain matters as discussed below

involving the internal control and its operation that we consider to be reportable conditions.

Finally, with respect to internal control over performance measures reported in the “Management

Discussion and Analysis” section on pages 32 through 43, we obtained an understanding of the

design of significant internal controls relating to the existence and completeness assertions, as

required by OMB Bulletin No. 01-02. Our procedures were not designed to provide assurance on

internal control over reported performance measures, and, accordingly, we do not provide an

opinion on such controls.

The following matters, noted during our audit, are considered reportable conditions.

Formalized Policies and Procedures Needed in Key Areas

FLETC lacks formalized policies and procedures in two key areas. First, formalized policies and

procedures are not in place that require the procurement department to verify budget authority

prior to obligating funds. Second, formalized polices and procedures are not in place that require

that class costs be determined consistently.

The normal flow of transactions is the identification of a purchasing need by individuals within

the agency, the reporting of this need to budget, where budget authority is verified before the

purchasing need is transferred to the purchasing department. During fiscal year 2001 and 2002,

the procurement department procured three leases for dormitory buildings. The procurements

were made without adequate consideration as to the treatment of the transactions and the available

budget authority.

As reported in the prior year’s management letter, FLETC lacked a method for consistently

determining class costs. Different divisions are responsible for maintaining and reporting their

class costs to the Budget division. Some divisions update their costs yearly while other divisions

update their costs every three years. Some divisions utilize a per student cost based on a standard

number of students while other divisions attempt to use an actual count of students. Some divisions

include items in their costs while other divisions exclude these same items. This inconsistency in

reporting creates the possibility that FLETC is not seeking reimbursement through the billing

process for costs not otherwise covered by appropriation.

Recommendation

We recommend that FLETC establish and implement entity-wide policies and procedures requiring

budget approval prior to making procurements and the consistent collection and reporting of class

costs.

Risk Assessments have not been Performed on Key Systems

FLETC has not complied with OMB Circular A-127 or GISRA with regard to the risk

assessment of FLETC’s major systems. The assessment of risk is necessary to identify
63

risks within the agency’s systems and to take steps to mitigate the risks. For example, within the

Momentum financial system, the risks associated with “Superusers,” changes to the vendor table,

and the roles and permissions of users have not been formally documented and evaluated for their

potential effect on the security surrounding financial reporting.

Written documentation ensures the continuity and consistency of these important control functions

by assigning responsibility, defining the methodology of the control and establishing the scope

and frequency under which the control is performed.

Recommendation

We recommend that FLETC perform risk assessments of its major systems and otherwise comply

with the provisions of OMB Circular A-127 and GISRA.

Timely Recording of Capitalized Real Property

As reported in the prior year’s management letter, FLETC lacked a method for consistently recording

construction in progress. As such, the fiscal division could not verify that the proper amounts had

been capitalized. FLETC implemented a fixed asset module within Momentum during the 2002

fiscal year; however, significant year-end adjustments were still necessary to properly record

construction in progress. The effectiveness of the Momentum fixed asset module will be evaluated

during the next fiscal year’s audit.

Recommendation

We recommend that the Finance division verify with the Property and Facilities divisions, as well

as the offices in Artesia and Cheltenham, that all fixed assets, including construction in progress,

have been properly recorded in the financial statements.

We also noted certain other matters involving internal control that we have reported to the

management of FLETC in a separate letter.

This report is intended solely for the information and use of the management of FLETC, the

United States Department of Treasury, OMB and Congress, and is not intended to be and should

not be used by anyone other than these specified parties.

October 24, 2002

Atlanta, Georgia
64

Carmichael

Brasher Tuvell

 & Company

678-443-9200

Facsimile: 678-443-9001

www.cbtcpa.com

C e r t i f i e d P u b l i c A c c o u n t a n t s

1647 Mount Vernon Road, Dunwoody Exchange, Atlanta, Georgia 30338

Auditor’s Report

Fiscal Years 2002

and 2001

AUDITORS’ REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS

To: Connie Patrick

 Director of the Federal Law Enforcement Training Center

We audited the financial statements of the Federal Law Enforcement Training Center (FLETC) as

of and for the years ended September 30, 2002 and 2001, and have issued our report thereon dated

October 24, 2002. 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, as amended, issued by the Comptroller General of the United States, and

OMB Bulletin No. 01-02, Audit Requirements for Federal Financial Statements.

The management of FLETC is responsible for complying with laws and regulations applicable to

the agency. As part of obtaining reasonable assurance about whether FLETC’s financial statements

are free of material misstatement, we performed tests of compliance with certain provisions of

laws and regulations, noncompliance with which could have a direct and material effect on the

determination of financial statement amounts, and certain other laws and regulations specified in

OMB Bulletin No. 01-02, including the requirements referred to in the Federal Financial

Management Improvement Act (FFMIA) of 1996. We limited our tests of compliance to these

provisions and we did not test compliance with all laws and regulations applicable to FLETC.

The results of our tests of compliance disclosed no instances of noncompliance with other laws

and regulations discussed in the preceding paragraph exclusive of FFMIA that are required to be

reported under Government Auditing Standards and OMB Bulletin No. 01-02.

Under FFMIA, we are required to report whether FLETC’s financial management systems

substantially comply with the Federal financial management systems requirements, applicable

Federal accounting standards, and the United States Standard General Ledger at the transaction

level. To meet this requirement, we performed tests of compliance with FFMIA section 803(a)

requirements.

The results of our tests disclosed instances, described below, where FLETC’s financial management

systems did not substantially comply with Federal financial management systems requirements

and Federal accounting standards. The results of our tests disclosed no instances in which the

agency’s financial management systems did not substantially comply with the United States Standard

General Ledger at the transaction level.
65

Federal Financial Management System Requirements

FLETC has not performed risk assessments of its financial management systems as required by

the Government Information Security Reform Act (GISRA) and OMB Circular A-127. GISRA

requires each agency to develop and implement an entity-wide risk-based security program for its

information systems which ensures the integrity and security of information inputs and outputs

from computerized systems. Compliance with GISRA and OMB Circular A-127 is required for

compliance with FFMIA.

Recommendation

We recommend that FLETC perform risk assessments of its major systems and otherwise comply

with the provisions of OMB Circular A-127 and GISRA.

Federal Accounting Standards

FLETC entered into 20-year non-cancellable leases for the construction and operation of

dormitories. Management has capitalized the minimum lease obligation in anticipation of an

OMB determination as to how the leases will be scored. FLETC did not perform adequate capital

planning as required by OMB Circular A-11. This Circular requires that capital projects be fully

funded at their inception and that risks should be carefully analyzed and managed.

Recommendation

We recommend that future capital projects be planned and evaluated so that proper funding can

be secured and risks can be managed and reported in accordance with provisions of OMB Circular

A-11.

Providing an opinion on compliance with certain provisions of laws and regulations was not an

objective of our audit and, accordingly, we do not express such an opinion.

This report is intended solely for the information and use of the management of FLETC, the

United States Department of Treasury, OMB and Congress, and is not intended to be and should

not be used by anyone other than these specified parties.

October 24, 2002

Atlanta, Georgia
66
67

Department of the Treasury

Federal Law Enforcement

Training Center

Financial Statements Fiscal

Years

2002 and 2001
68

Financial

Statements

Fiscal Years

2002 and 2001

(Dollars in Thousands)

2002 2001

ASSETS:

Intragovernmental Assets:

Fund Balance (Note 2) 118,508 $ 115,786 $ 

Accounts Receivable - Federal Agencies (Note 3) 8,034 6,530

Advances to Federal Agencies (Note 4) 2,085 1,956

Total Intragovernmental Assets 128,627 $ 124,272 $ 

Accounts Receivable - State, Local & Others (Note 3) 685 722

Inventory and Related Property. Net (Note 5) 6,657 4,525

Property, Plant and Equipment, Net (Note 6) 282,561 175,570

Prepayment & Other Assets 0 0

Total Assets 418,530 $ 305,089 $ 

LIABILITIES:

Intragovernmental Liabilities:

Personnel Liabilities-FECA Liability to be paid 

to DOL (Note 7) 1,312 $ 1,276 $ 

Employer Contribution & Payroll Taxes - - 

Total Intragovernmental Liabilities 1,312 $ 1,276 $ 

Other Liabilities:

Accrued Payroll and Benefits (Note 7) 2,066 $ 3,409 $ 

Accounts Payable 1,862 3,466 

Actuarial FECA Liability (Note 7) 8,130 7,444

Contingencies (Note 8) 68,196 1,048

Unfunded Annual Leave 4,270 3,481

Other Liabilities 939 632

Total Other Liabilities 85,463 $ 19,480 $ 

Total Liabilties 86,775 $ 20,756 $ 

Net position: (Note 9)

Cumulative Results of Operations 210,940 168,972

Unexpended Appropriations 120,815 115,361 

Total Net Position 331,755 $ 284,333 $ 

Total Liabilities and Net Position 418,530 $ 305,089 $ 

The accompanying notes to the Financial Statements are an integral part of these statements.

Department of the Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

BALANCE SHEETS

For the Years Ended September 30, 2002 and September 30, 2001
69

2002 2001

COSTS:

Law Enforcement Program: Safeguard Our

Financial Systems, Protect Our Nation's

Leaders, and Secure a Safe and Drug-Free

America

Intragovernmental Costs

 Plant Operations and Training 22,994 $ 21,572 $ 

Less Earned Revenues (54,706) (30,576)

Intragovernmental Net Cost (31,712) $ (9,004) $ 

With the Public Cost

Plant Operations and Training 161,714 $ 116,950 $ 

 Less Earned Revenue (959) (971)

With the Public Net Cost 160,755 $ 115,979 $ 

Total Law Enforcement Program Net Cost 129,043 $ 106,975 $ 

 NET COST OF TREASURY OPERATIONS 129,043 $ 106,975 $ 

 NET COST OF OPERATIONS (Note 10) $ 106,975 129,043 $ 

Department of the Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

The accompanying notes to the Financial Statements are an integral part of these statements.

STATEMENTS OF NET COST

For the Years Ended September 30, 2002 and September 30, 2001

(Dollars in Thousands)
70

Financial

Statements

Fiscal Years

2002 and 2001

2002 2001

RESULTS OF OPERATION

Beginning Balances - 10/1/2001 168,972 $ 129,193 $ 

Prior Period Adjustments (Note 11) (174) 2,288

Beginning Balances, as Adjusted 168,798 131,481

Budgetary Financing Sources:

Other Adjustments 0 2,672

Appropriations Used 164,322 127,974

Donations 1 122

Other Financing Sources:

Transfers In/Out Without Reimbursement 2,930 8,460

Imputed Financing Sources 3,932 5,239

Total Financing Sources 171,185 $ 144,467 $ 

Net Cost of Operations (129,043) (106,976)

NET POSITION FROM OPERATIONS 210,940 $ 168,972 $ 

UNEXPENDED APPROPRIATION

Beginning Balances - 10/1/2001 115,361 $ 90,844 $ 

Prior Period Adjustments (8) 8,816

Beginning Balances, as Adjusted 115,353 99,660

Budgetary Financing Sources:

Appropriations Received 173,789 154,007

Other Adjustments (3,841) (10,332)

Appropriations Used (164,486) (127,974)

Subtotal - Total Financing Sources 5,462 $ 15,701 $ 

NET POSITION OF UNEXPENDED APPROPRIATIONS 120,815 $ 115,361 $ 

TOTAL NET POSITION 331,755 $ 284,333 $ 

The accompanying notes to the Financial Statements are an integral part of these statements.

Department of the Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

STATEMENTS OF CHANGES IN NET POSITION

For the Years Ended September 30, 2002 and September 30, 2001

(Dollars in Thousands)
71

2002 2001

BUDGETARY RESOURCES (Note 12)

 Budget Authority:

Appropriations Received 171,287 $ 154,011 $ 

Contract Authority 0 (4)

Unobligated Balance

Beginning of Period 51,068 25,271

Spending Authority from Offsetting Collections Earned

 Collected 57,004 33,445

 Received from Federal Sources 1,425 1,880

Change in Unfilled Customer Orders

 Advance Received 77 6

 Without Advance from Federal Sources 371 1,694

Subtotal 58,877 37,025

Recoveries of Prior Year Obligations 15,340 20,677

Permanently Not Available (1,836) (1,710)

TOTAL BUDGETARY RESOURCES 294,736 $ 235,270 $ 

STATUS OF BUDGETARY RESOURCES

Obligations Incurred

 Direct 171,814 $ 145,085 $ 

 Reimbursable 64,530 39,117

Subtotal 236,344 184,202

Unobligated Balance

 Apportioned 52,715 46,802

Unobligated Balance Not Available 5,677 4,266

TOTAL STATUS OF BUDGETARY RESOURCES 294,736 $ 235,270 $ 

RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

Obligated Balance, Net, Beginning of Period 64,591 $ 65,285 $ 

Obligated Balance, Net, End of Period

 Accounts Receivable (8,024) (6,599)

 Unfilled Customer Orders from Federal Sources (7,042) (6,671)

 Undelivered Orders 70,411 70,468

 Accounts Payable 4,623 7,394

Outlays

 Disbursements 223,832 160,645

 Collections (57,081) (33,451)

 Subtotal 166,751 127,194

Less: Offsetting Receipts (40) (14)

NET OUTLAYS 166,711 $ 127,180 $ 

The accompanying notes to the Financial Statements are an integral part of these statements.

(Dollars in Thousands)

Department of the Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

STATEMENTS OF BUDGETARY RESOURCES

For the Years Ended September 30, 2002 and September 30, 2001
72

Financial

Statements

Fiscal Years

2002 and 2001

2002 2001

Budgetary Resources Obligated

Obligations Incurred 236,344 $ 184,201 $ 

 Less: Spending Authority from Offsetting Collections and Recoveries 74,217 57,702 

Obligations Net of Offsetting Collections and Recoveries 162,127 126,499 

 Less: Offsetting Receipts 40 14 

Net Obligations $ 126,485 162,087 $ 

Other Resources

Transfers In/out Without Reimbursement 2,930 $ 8,460 $ 

Imputed Financing from Costs Absorbed by Others 3,932 5,239 

Other (2,082) - 

Net Other Resources Used to Finance Activities 6,862 11,617 

Total Resources Used to Finance Activities 168,949 $ 138,102 $ 

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 276 $ 156 $ 

Resources that Fund Expenses Recognized in Prior Periods 1,583 888 

Other (14) (40) 

Resources that Finance the Acquisition of Assets or Liquidation of Liabilities 112,905 39,978 

Other Resources or Adjustments to Net Obligated Resources that do not Affect

 Net Cost of Operations 174 

Total Resources Used to Finance Items Not Part of the Net Cost of Operations 114,898 41,008 

Total Resources Used to Finance the Net Cost of Operations 54,051 $ 97,094 $ 

Components Requiring or Generating Resources in Future Periods

Increase in Annual Leave Liability (789) $ 

Other 3,428 67,140 

Total Components of Net Cost of Operations that will Require or Generate 

 Resources in Future Periods 66,351 $ 3,428 $ 

Components not Requiring or Generating Resources

Depreciation and Amortization 8,505 $ 6,858 $ 

Revaluation of Assets and Liabilities 127 (409) 

Other 5 9 

Total components of Net Cost of Operations that will not Require or Generate Resources 8,641 $ 6,454 $ 

Total components of Net Cost of Operations that will not Require or Generate Resources

 in the Current Period 74,992 $ 9,882 $ 

Net Cost of Operations 129,043 $ 106,976 $ 

 The accompanying notes to the Financial Statements are an integral part of these statements.

(Dollars in Thousands)

Department of Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

STATEMENT OF FINANCING

For the Years Ended September 30, 2002 and September 30, 2001
73

Department of the Treasury

Federal Law Enforcement

Training Center

Notes to

Financial Statements Fiscal

Year 2002
74

Notes to Financial

Statements

Fiscal Year 2002

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. REPORTING ENTITY

The Federal Law Enforcement Training Center (FLETC), a component of the Department

of the Treasury, serves as an interagency law enforcement training center. The FLETC

provides facilities, equipment, and support services for conducting law enforcement training

for Federal agencies and specialized programs for State and local agencies and foreign

governments. The FLETC was established on July 1,1970, by Treasury Department Order

No. 217, as an organizational entity within the Department of the Treasury, and placed

under the supervision of the Assistant Secretary (Enforcement and Operations). This

oversight position subsequently became the Under Secretary (Enforcement). Training

sites and offices include Glynco, Georgia; Artesia, New Mexico; Washington, D.C.;

Charleston, South Carolina; and Cheltenham, Maryland. Currently, the FLETC conducts

training in four International Law Enforcement Academies (ILEA) located in Budapest,

Hungary; Bangkok, Thailand; Gaborone, Botswanna; and San Jose, Costa Rica. The

programs and operations of the FLETC are funded principally through Congressional

appropriations on an annual, multi-year, and no-year basis. Accordingly, operating costs

incurred and recorded as expenses are offset by an equal amount of appropriated funds

that are recorded as financing sources or an offset by reimbursable revenue or other

financing sources.

B. BASIS OF ACCOUNTING AND PRESENTATION

The FLETC maintains its accounting records and prepares its financial statements on the

accrual basis of accounting. The FLETC has historically prepared its financial statements

in accordance with generally accepted accounting principles, based on accounting standards

issued by the Financial Accounting Standards Board (FASB), the private-sector standardssetting body. In October 1999, the Federal Accounting Standards Advisory Board (FASAB)

was designated by the American Institute of Certified Public Accountants (AICPA) as the

standards-setting body for financial statements of Federal government entities, with respect

to the establishment of generally accepted accounting principles. FASB has indicated,

however, that financial statements prepared based upon accounting standards published

by FASB may also be regarded as in accordance with generally accepted accounting

principles for those Federal entities, such as the FLETC, that have issued financial

statements based upon FASB accounting standards in the past. Therefore, consistent

with historical reporting, the FLETC financial statements are presented in accordance

with accounting standards published by the FASB.

C. ASSETS AND LIABILITIES

Entity intra-governmental assets and liabilities result from activity with other Federal

Agencies. All other entity assets and liabilities result from activity with parties outside
75

the Federal government, such as domestic and foreign persons, organizations, or

governments outside the U.S. Government. Assets represent tangible items that have

probable economic benefits that can be obtained or controlled by the FLETC. Liabilities

represent the amount of monies or other resources that are likely to be paid as a result of a

transaction or event that has already occurred. However, no liability can be paid absent an

appropriation. Liabilities for which an appropriation has not been enacted are, therefore,

classified as Liabilities not covered by Budgetary Resources. Although future

appropriations to fund the liabilities are likely and anticipated, it is not certain that

appropriations will be enacted to fund these liabilities. Also, liabilities arising from other

than contracts can be abrogated by the Government, acting in its sovereign capacity.

D. FUND BALANCES WITH TREASURY

Fund balances with Treasury represent funds available to pay liabilities and finance

authorized expenditures.

E. ACCOUNTS RECEIVABLE AND RELATED ALLOWANCES FOR

 UNCOLLECTABLE AMOUNTS

Outstanding billed reimbursable costs for goods and services provided to other Federal

agencies and State and local governments comprise the majority of accounts receivable.

The FLETC uses the allowance method for recognizing bad debt expense on accounts

receivable.

F. INTRA-TREASURY ADVANCES

The Treasury’s Working Capital Fund (WCF) was established by Section 104 of Public

Law 91-614, December 31, 1970, and amended by Section 442 of Public Law 98-369,

July 1984. Amounts in the fund are available for expenses of operating and maintaining

common administrative services of Treasury that have been determined to be carried out

as centralized services. In accordance with established WCF procedures, funds for these

services are collected from Treasury bureaus in advance. This advance is expended as

services are provided by the WCF.

G. GOVERNMENTAL ADVANCES

The majority of governmental advances consist of advances to the United States Department

of Agriculture (USDA) Graduate School for specialized projects. Advances are expended

when services are provided by USDA.

H. OPERATING MATERIALS AND SUPPLIES

Operating materials and supplies are tangible personal property that takes one of three

forms: held for sale under the reimbursable program; consumed in the process of production
76

Notes to Financial

Statements

Fiscal Year 2002

for reimbursable services; or consumed in the provision of direct program services.

Recognition as a financial resource occurs when title passes to the FLETC, or goods are in

the FLETC’s possession. At the time title passes to the purchaser, or the goods are used in

the provision of a service, the financial resource is removed from the account.

I. PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment purchased individually that costs $50,000 or more are

capitalized. Major alterations and renovations are also capitalized. Depreciation is

calculated on a straight-line basis over the useful life of the asset.

J. 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 liabilities not covered by budgetary resources in

the Balance Sheet and is adjusted for changes in compensation rates and reduced for

annual leave taken. Sick leave is not accrued when earned, but is expensed when taken.

K. PENSION COSTS AND OTHER RETIREMENT BENEFITS

In general, FLETC employees hired prior to January 1, 1984, participate in the Civil

Service Retirement System (CSRS), while employees’ hired after that date participate in

the Federal Employees’ Retirement System (FERS). FLETC and its employees contribute

to the retirement plan a certain percent of base pay as provided by the Office of Personnel

Management (OPM). The costs of providing these benefits by OPM is more than the

amounts contributed by FLETC and its employees. As a result of SFFAS No. 5, FLETC is

required to report the full cost of providing pension benefits, to include the cost financed

by OPM. The additional cost is included as an expense and as an imputed financing

source in the FLETC’s Statement of Change in Net Position.

L. FEDERAL EMPLOYEE BENEFITS PAYABLE – FECA ACTUARIAL

 LIABILITY

The Federal Employees Compensation Act (FECA) program is administered by the U.S.

Department of Labor (DOL) and provides income and medical cost protection to covered

Federal civilian employees who have been injured on the job or have incurred a workrelated occupational disease. Beneficiaries of employees whose death is attributable to a

job-related injury or occupational disease receive compensation. The DOL initially pays

valid FECA claims for all of the Federal government and seeks reimbursement two fiscal

years later from the Federal agencies employing the claimants. Estimated future FECA

costs are determined by the DOL for Treasury, which in turn, allocates to the FLETC the

actuarial liabilities not covered by budgetary resources. This governmental liability is

determined by using the paid loses extrapolation method calculated over the next 37-year
77

 2002 2001

Trust Fund

Appropriated Funds

Other Fund Types

Total

$692

$117,668

$148

$118,508

$2,834

$112,825

$127

$115,786

period. This method utilizes historical benefit payment patterns related to a specific incurred

period to predict the ultimate payments related to that period.

M. LITIGATION CONTINGENCIES AND SETTLEMENTS

Probable and estimable unsettled litigation and claims against the FLETC are recognized

as a liability and expensed for the full amount of the expected loss. Expected litigation

and claim losses include settlements to be paid from the Treasury Judgement Fund on

behalf of the FLETC and settlements to be paid from FLETC appropriations. Settlements

paid from the Judgement Fund for the FLETC are recognized as an expense and imputed

financing.

N. REVENUES AND FINANCING SOURCES

The FLETC receives the majority of its funding through annual, multi-year, no-year, and

trust fund appropriations that may be used within statutory limits for operating and capital

expenditures. Appropriations are recognized as financing sources when the related expenses

are incurred. The FLETC enters into reimbursable agreements with Treasury and other

Federal entities for services or goods provided. Under these arrangements, one entity

provides goods or services to another at an agreed-upon price, and revenue from

reimbursable agreements is recognized when the services are provided. Other minor

financing sources include gifts and transfers from the Department of Justice’s Violent

Crime Reduction Trust Fund.

O. IMPUTED COSTS/FINANCING SOURCES

The FLETC often receives goods and services from other Federal Government entities

without reimbursing the providing entity for all related goods. These are subsidized costs

that are recognized as imputed costs by the FLETC. Conversely, the FLETC often incurs

costs that are partially or totally paid for other entities. These are recorded as imputed

financing sources. The FLETC recognized both imputed costs and financing sources to

the extent directed by the Department of the Treasury and OMB.

NOTE 2: FUND BALANCES WITH TREASURY

Entity fund balances with Treasury as of September 30, 2002 and 2001, are as follows (in

thousands):
78

Notes to Financial

Statements

Fiscal Year 2002

 2002 2001

Unobligated Balance - Available

Unobligated Balance - Unavailable

Obligated Balance - Not Yet Disbursed

Total

Trust fund balances are comprised of gifts and transfers from the Department of Justice’s

Violent Crime Reduction Trust Fund. Other fund balances result from the FLETC’s

authority to use the proceeds from the sale of surplus items and recyclable materials to

purchase like-items.

STATUS OF FUND BALANCE WITH TREASURY

As of September 30, 2002 and September 30, 2001, the status of fund balance with Treasury

consisted of the following.

$692

$117,668

$148

$118,508

$2,834

$112,825

$127

$115,786

NOTE 3: ACCOUNTS RECEIVABLE

ENTITY INTRA-GOVERNMENTAL ACCOUNTS RECEIVABLE

Intra-governmental Accounts Receivable due from other Federal agencies, as of September

30, 2002 and 2001, respectively, total $8.0 and $6.5 million, and are considered fully

collectable.

ENTITY ACCOUNTS RECEIVABLE, NET

Receivables due from the public are recognized for law enforcement training provided to

State, local and foreign governments. As of September 30, 2002 and 2001, receivables

from the public total $685 thousand and $722 thousand, respectively, and are net of

uncollectible amounts totaling $22 thousand and $18 thousand respectively. The allowance

for estimated uncollectible accounts receivable due from the public is determined by using

the Percentage Analysis Method. The Percentage Analysis Method derives an estimated

percentage of uncollectible accounts receivable by account type that is based on the

experience of collecting past due accounts. The Specific Identification Method is used

when actual uncollectible amounts of receivable are known.
79

NOTE 4: ADVANCES AND PREPAYMENTS

Entity advances and prepayments as of September 30, 2002 and 2001, are as follows (in

thousands):

The Working Capital Fund balance is available for expenses of operating and maintaining

common administrative services of Treasury that have been determined as more

advantageous and economical to be carried out as centralized service. Advances to the

USDA Graduate School are for specialized computer based training courses. Expenses

are recognized as services, which are provided by the Working Capital Fund and USDA.

NOTE 5: OPERATING MATERIALS AND SUPPLIES

Operating materials and supplies as of September 30, 2002 and 2001, consist of the

following (in thousands):

The value of operating materials and supplies is determined by the average cost

method.

 2002 2001

Ammunition

Uniforms

Maintenance Materials/Supplies

Training/Office Supplies

Gas/Oil

Auto Materials/Supplies

Total

 2002 2001

Working Capital Fund

USDA Graduate School

Total

$2,085

-

$2,085

$1,856

$100

$1,956

$3,548

$1,846

$125

$936

$17

$185

$6,657

$1,616

$1,794

$163

$751

$13

$188

$4,525
80

 2002 2001

Accrued Payroll/Benefits $2,066 $3,409

FECA Liability $8,130 $7,444

Total $10,196 $10,853

Notes to Financial

Statements

Fiscal Year 2002

Property, Plant

and Equipment

Land

Structure, Facilities

Accumulated Depreciation

Net Book Value

Equipment

Accumulated Depreciation

Net Book Value

Construction in Progress

Capital Leases

Total

Depreciation

Method

-

Straight Line

-

-

Straight Line

-

-

-

-

Service

Life

-

20-30 Years

-

-

 6-10 Years

-

-

-

-

2002

$3,838

$243,344

($62,881)

$180,463

 $8,672

($4,126)

$4,546

$25,683

$68,031

$282,561

2001

$3,838

$195,131

($55,368)

$142,763

$13,010

($8,143)

$4,867

$24,101

-

$175,569

NOTE 6: PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment as of September 30, 2002 and 2001, consist of the following

(in thousands):

Property, plant, and equipment are valued at cost. Property and equipment transferred to

the FLETC from the Department of Defense on the date that FLETC relocated to Glynco

is stated as the transfer value that approximates historical cost. Major construction,

renovation, and equipment acquisitions are capitalized, while maintenance, repair, and

minor equipment costs are charged to expenses as incurred. Property, plant, and equipment

purchased individually that cost $50,000 or more are capitalized. In FY 2002, the FLETC

included capital leases of $68 million, which represent the net present value of the net

lease payments of three student lodging facilities.

NOTE 7: OTHER LIABILITIES NOT COVERED BY BUDGETARY

 RESOURCES

As of September 30, 2002 and 2001, other liabilities not covered by budgetary resources

consists of the following (in thousands)
81

NOTE 8: CONTINGENCIES AND COMMITMENTS

The FLETC is involved in various and administrative proceedings incidental to its

operations. Management vigorously contests all claims and lawsuits. As of September

30, 2002, FLETC recorded contingent liabilities of $68 million. This compared with a

probable liability of $1 million as of September 30, 2001.

Not Covered By Budgetary Resources 2002 2001

Probable Estimate

Probable Minimum

Probable Maximum

$68,196

-

$68,196

$1,048

-

$1,048

In FY 2001 and FY 2002, the FLETC entered into 20-year leases for the construction and

operation of three private, hotel-type facilities to meet an urgent need for additional law

enforcement student housing. Acting under a delegation of procurement authority from

the General Services Administration and applying a performance-based approach, the

FLETC consummated the “build-lease” arrangement as operating leases. The FLETC

used an income analysis method and the prevailing Treasury discount rate during the

review of proposals to compute fair market value and net present value of the total net

lease payments, respectively, to satisfy the 90 percent operational lease test requirement.

Pending a formal determination and resolution as to whether the above “build-lease”

arrangement are either capital or operating leases in accordance with the budget scoring

criteria set forth in OMB Circular A-11, the FLETC has opted to disclose the “buildlease” arrangement and record $68 million, the net present value of the net lease payments

for the three facilities, as contingent liabilities. The FLETC recorded no obligation in FY

2001 and FY 2002.

OPERATING LEASES

FLETC leases various facilities under leases accounted for as operating leases. The leased

items consist of an office located in Washington, DC and Glynco, GA, and two warehouses,

one in Glynco, GA and one in Artesia, NM. These facilities are leased from commercial

sources and the General Services Administration. The lease expense under these

arrangements in future years is as follows:
82

Notes to Financial

Statements

Fiscal Year 2002

OPERATING LEASES

NOTE 9: NET POSITION

Unexpended appropriations represent the amount of spending authorized as of year-end

that is unliquidated or unobligated and had not lapsed, been rescinded, or been withdrawn.

No-year appropriations remain available for obligation until expended. Annual

appropriations remain available for upward or downward adjustment of obligations until

expired. Cumulative results of operations is the net difference between (1) expenses and

losses and (2) financing sources, including appropriated capital used, revenue, and gains,

since the inception of the entity.

NOTE 10: STATEMENT OF NET COST

The program displayed is equivalent to the mission listed in the FLETC FY 2000-2005

Strategic Plan.

Gross costs and earned revenue by budget functional classification for the years ended

September 30, 2002 and 2001, consist of the following (in thousands):

Land and Building

Total Future Payments

Year

1 (2002)

2 (2003)

3 (2004)

4 (2005)

5 (2006)

After 5 Years

Amount

$436,437

$328,239

$328.239

$328,239

$328,239

$978,193

$2,727,193

Gross Cost

Earned Revenue

Net Cost

$184,708

$55,665

$129,043

$138,522

$31,546

$106,976

2002 2001
83

 2002 2001

Personnel Compensation

Personnel Benefits

Travel/Transportation of Persons

Transportation of Things

Rent/Communication/Utilities

Printing/Reproduction

Services

Supplies/Materials

Equipment (Non-Capitalized)

Minor Maintenance

Disposition of Assets

Depreciation/Maintenance

Bad Debts Expenses

Claims/Indemnities

Interest

Total

Program Expense by object code classification for the years ended September 30, 2002

and 2001, consists of the following (in thousands):

NOTE 11: STATEMENT OF NET POSITION-PRIOR PERIOD

ADJUSTMENTS

FLETC adjusted the cumulative results of the operations account balance during FY 2002

and 2001 for corrections relating to prior year activity associated with surplus sales and

Department of Labor. The net effect of the adjustments to FY 2002 and 2001 cumulative

results of operations account balances totaled $174 thousand (credit) and $2.3 million,

respectively.

NOTE 12: STATEMENT OF BUDGETARY RESOURCES

As of September 30, 2002 and 2001, budgetary resources obligated for undelivered orders

total $70.4 and $70.4 million, respectively. The FLETC did not have any borrowing or

contract authority, and did not have any repayment requirements, financing sources for

repayments, or any other terms of borrowing authority used.

$44,561

$25,958

$4,918

$599

$5,472

$1,009

$67,433

$7,319

$12,974

$6,500

$205

$8,514

$9

($763)

0

$184,708

$37,106

$18,059

$4,320

$584

$7,034

$1,072

$41,461

$10,002

$6,737

$5,747

($409)

$6,858

$5

($55)

$1

$138,522
84

Department of the

Federal Law Enforcement T

Adjustments to budgetary resources available at the beginning of FY 2002 and 2001 consist

of the following (in thousands):

Recoveries of Prior Year Obligations

Cancellation of Expired and No-Year Accounts

Enacted Rescissions of Prior Year Balance

Permanently Not Available PL105-61

Net Transfers/Current Year Authority Realized

Total

$15,340

($1,071)

-

($766)

-

$13,503

$20,677

($1,049)

($338)

($323)

($4)

$18,963

2002 2001

84

Notes to Financial

Statements

Fiscal Year 2002
85

e Treasury

Training Center

Custodial Financial

Statements

Fiscal Year 2002 and 2001

Department of the Treasury

Federal Law Enforcement

Training Center
86

2002 2001

SOURCES OF CUSTODIAL REVENUE & COLLECTIONS

REVENUE RECEIVED

Fines, Penalties, Interest & Other Revenue 40 $ 14 $ 

TOTAL REVENUE RECEIVED $ 14 40 $ 

NET REVENUE RECEIVED $ 14 40 $ 

TOTAL REVENUE $ 14 40 $ 

DISPOSITION OF CUSTODIAL REVENUE & COLLECTIONS

Amounts Provided to Fund the Federal Government 40 $ 14 $ 

Total Disposition of Custodial Revenue & Collection $ 14 40 $ 

NET CUSTODIAL REVENUE ACTIVITY $ - - $ 

The accompanying notes to the Financial Statements are an integral part of these statements.

(Dollars in Thousands)

Department of the Treasury

FEDERAL LAW ENFORCEMENT TRAINING CENTER

STATEMENTS OF CUSTODIAL ACTIVITY

For the Years Ended September 30, 2002 and September 30, 2001

Custodial Financial

Statements

Fiscal Years

2002 and 2001
87

NOTES TO THE CUSTODIAL FINANCIAL STATEMENTS

NOTE 1: BASIS OF ACCOUNTING

The Schedule of Custodial Activities reports collections of miscellaneous receipts using

the cash basis of accounting; i.e., when remittance is received. Revenue disposition is

also reported on a cash basis.

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Department of

Federal Law Enforcem
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f the Treasury

ment Training Center

Supplemental Information

Fiscal Year 2002

Department of the Treasury

Federal Law Enforcement

Training Center
90

Supplemental

Information

Fiscal Year 2002

FLETC PARTNER ORGANIZATIONS

3 Branches of Government

31 Member Departments and Independent Agencies

77 Partner Organizations

EXECUTIVE BRANCH:

Agriculture Forest Service

Office of Inspector General

Amtrak Amtrak Police

Central Intelligence Agency Office of Inspector General

Office of Security

Commerce National Institute of Standards and Technology

National Marine Fisheries Service

Office of Export Administration

Office of Inspector General

Office of Security

Defense Air Force Office of Special Investigations

Defense Protective Service

National Security Agency

Naval Criminal Investigative Service

Defense Criminal Investigative Service/Office of Inspector General

Education Office of Inspector General

Energy Office of Inspector General

Environmental Protection Agency Office of Criminal Investigations

Office of Inspector General

Federal Deposit Insurance Office of Inspector General

Corporation

Federal Emergency Security Division

Management Agency Office of Inspector General

General Services Administration Office of Federal Protective Service

Office of Inspector General

Health and Human Services Food and Drug Administration

National Institutes of Health

Office of Inspector General

Housing and Urban Development Office of Inspector General

Interior Bureau of Indian Affairs

Bureau of Land Management

Bureau of Reclamation

National Park Service

U.S. Park Police

Office of Inspector General

Office of Surface Mining, Reclamation and Enforcement

U.S. Fish and Wildlife Service

Justice Bureau of Prisons

Drug Enforcement Administration

Immigration and Naturalization Service

U.S. Border Patrol

Office of Inspector General

U.S. Marshals Service

Labor Office of Inspector General

National Aeronautics and Office of Inspector General

Space Administration
91

Nuclear Regulatory Commission Office of Inspector General

Office of Personnel Management Office of Inspector General

Railroad Retirement Board Office of Inspector General

Small Business Administration Office of Inspector General

Smithsonian National Zoological Park

Office of Protection Services

Social Security Administration Office of Inspector General

State Agency for International Development-Office of Inspector General

Bureau of Diplomatic Security

Office of Inspector General

Tennessee Valley Authority TVA Police

Office of Inspector General

Transportation Transportation Security Administration

Federal Aviation Administration

Office of Inspector General

U.S. Coast Guard

Treasury Alcohol, Tobacco and Firearms

Bureau of Engraving and Printing

Financial Crimes Enforcement Network

Internal Revenue Service

Office of Inspector General

Treasury Inspector General for Tax Administration

U.S. Customs Service

U.S. Mint

U.S. Secret Service

U.S. Postal Service Office of Inspector General

Postal Inspection Service-Postal Police

Veterans Affairs Office of Inspector General

JUDICIAL BRANCH:

Supreme Court Supreme Court Police

LEGISLATIVE BRANCH:

U.S. Congress Government Printing Office - Office of Inspector General

Government Printing Office - Office of Security

Library of Congress Police

U.S. Capitol Police
92

Supplemental

Information

Fiscal Year 2002

For Additional Information Contact:

Public Affairs Office

Federal Law Enforcement Training Center

Glynco, Georgia 31524

(912) 267-2447

Internet Address: http://www.fletc.gov

Director.........................................................................

Senior Associate Director for Washington Operations........

Legal Counsel..........................................................

Deputy Director/CFO.......................................................

Assistant Director for Training ...........................................

Deputy Assistant Director for Training Operations...........

Deputy Assistant Director for Training Support ..............

Assistant Director for Field Training ....................................

Assistant Director for Administration ..................................

Deputy Assistant Director for Assets Management ............

Deputy Assistant Director for Human Capital.................

Assistant Director/Chief Information Officer .........................

Connie L. Patrick

John C. Dooher

Willis C. Hunter

D. Kenneth Keene

Cynthia Atwood (Acting)

Randy Melvin (Acting)

Rob Gray (Acting)

G. Ray Havens

Michael R. Hanneld

Gregory G. Carver

Joseph Caneva

Sandy H. Peavy

PRINCIPLE OFFICIALS OF THE FLETC
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